Middletown May Exceed Property Tax Cap in 2027 Budget
The City of Middletown in Orange County may exceed New York State's 2% property tax cap in 2027 for the first time in 15 years, as rising operating expenses put pressure on the city's budget.
Mayor Joseph DeStefano cited several factors contributing to the proposed increase, including higher fuel costs, health insurance premiums, employee salaries, pension obligations, Medicaid fees and ambulance service expenses. Fringe benefits for current employees and retirees alone are expected to cost $1.3 million.
According to the mayor, the city's Board of Estimate has already identified potential reductions, and further cuts could require eliminating or reducing municipal services and programs.
The proposed budget could increase the city's property tax levy by nearly 5%, exceeding the state's allowable tax cap. DeStefano indicated that approximately $507,000 in additional reductions would be necessary to avoid exceeding the cap.
The Middletown Common Council will now review the proposed budget and determine whether to authorize an increase above the tax cap.
The decision could have implications for property owners and residents as municipalities throughout the Hudson Valley balance rising operating costs with efforts to maintain essential services and limit property tax increases.
Source: Mid Hudson News
