The Courier - May 29, 2008

MIDDLETOWN BUDGET

M'town capital improvement program:
Six years, $36.7 million

By MELISSA L. GAFFNEY
Staff Writer

    The financial specifics of a six-year capital improvement plan were recently revealed in Middletown's proposed 2008 municipal budget.
    The approximately $36.7 million program has yet to be discussed in detail during a public session at township meetings.
    The most recent capital improvement expense was cited as $317,279, funds titled capital outlay, road and bridge improvements, in budget documents.
    The 2008 budget cites that none of that money was paid, charged or reserved.
    As of press time, officials did not return comments regarding the 2007 capital outlay expenses.
    The budget's proposed, six-year capital improvement program breaks down the township's projects into seven categories: road reconstruction, resurfacing and drainage; improvements to parks; Regional Contribution Agreements (RCAs); acquisition of open space; improvements to township property; Americans with Disabilities Act (ADA) transition plan; and construction of truck wash, which is a Department of Environmental Protection mandate.
    According to the 2008 proposal, the estimated total cost for all seven projects is about $36.7 million, which would represent roughly 59 percent of the current budget, were the program to be funded in full this year.
    Funds totaling about $4.2 million are allocated in the 2008 proposal for road reconstruction, resurfacing and drainage, the ADA transition plan and the construction of a truck wash. The allotted funds for the projects are about $3.7 million, $100,000 and $400,000, respectively. These funds represent about 7.8 percent of the proposed budget.
    According to budget documents, of the $3.7 million designated in 2008 for road reconstruction, resurfacing and drainage, $165,000 is appropriated from the budget's capital improvement fund, $175,000 falls under grants-in-aid and other funds, and $3.4 million is in general bonds and notes.
    The $100,000 for the ADA transition plan is appropriated in full under the proposed budget's capital improvement fund.
    The proposed funds for construction of a truck wash include $20,000 from the capital surplus and $380,000 in general bonds and notes.
    While the ADA transition plan is estimated for completion in 2008 and the DEP mandate estimated for completion in 2009, the other five projects have an estimated completion time during the year 2013, according to the proposed budget.
    Monies are allocated in the plan over the course of the next five years for all five projects.
    Over those five years, the five projects' funding is slated for nearly $4.5 million each year, according to the preliminary budget. Funding for the respective projects plateaus across those five years and is stated in the proposed 2008 budget as about $1.7 million per year for road reconstruction, resurfacing and drainage; $339,560 per year for improvements to parks; $1 million per year for RCAs; $1 million per year for acquisition of open space; and $404,561 per year for improvements to township property.
    After 2008, the township would pay about $4.5 million to support this program each year, according to budget documents. However, that would leave a shortfall of $10 million by the end of 2013. The shortfall would most likely come from the RCAs, as only five of the $15 million funds are planned on the 2008 budget spreadsheet.
    As of press time, officials did not return comments regarding the $10 million unaccounted for or why only $5 million was allocated over the course of six years for RCAs.
    Of the $4.2 million allocated during 2008 under the preliminary budget, about $3.8 million would be funded through bonds and notes. Funding sources for the remaining years are not identified on the plan.
    Notably, according to budget documents, Middletown's debt service payment for 2008 is about $8.6 million, roughly 13.9 percent of the 2008 proposed budget.
    During 2007, the debt service was appropriated about $7.5 million. Of that amount, about $7 million was spent and the difference of roughly $529,222 was reserved.
    The budget is expected to be adopted at the Middletown Township Committee June 2 public session at 8 p.m. in the Municipal Court Room.