2026 Proposed Budget
BudgetAI Summary
The 2026 Proposed Budget document for Middletown Township provides an overview of the township's elected officials and administrative leadership. The budget includes biographies of the Board of Supervisors members—Mike Ksiazek (Chairperson), Bernadette Hannah (Vice Chairperson), Dana Kane, and Dawn Quirple (Secretary)—as well as appointed executive officials including the Township Manager, Chief of Police, and various department directors. The document also includes a memorial to Supervisor Anna Payne (1985-2025), acknowledging her service to the community.
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2026 Proposed Budget -- 1 of 206 -- This page intentionally left blank. 2 -- 2 of 206 -- E L E C T E D & A P P O I N T E D O F F I C A L S ELECTED OFFICIALS Board of Supervisors Mike Ksiazek, Chairperson Bernadette Hannah, Vice Chairperson Dawn Quirple, Secretary Dana Kane Tax Collector Ray Chapman Elected Auditors Hannah Stackawitz, Chairperson Matthew Diaz, Vice Chairperson Susan Corcoran, Secretary APPOINTED OFFICALS Executive Officials Eden Ratliff, Township Manager Nick Valla, Assistant Township Manager Joseph Bartorilla, Chief of Police Laura Hucklebridge, Director of Finance Miranda Colon, Executive Assistant Jim Ennis, Director of Building and Zoning Melissa Gargan, Director of Human Resources Eric Gartenmayer, Director of Public Works Paul Kopera, Director of Parks and Recreation Professional Consultants Jim Esposito, Esq., Curtin & Heefner, Township Solicitor Isaac Kessler, P.E., Remington & Vernick, Township Engineer Matthew Johnston, P.E., Pennoni, Township Traffic Engineer 3 -- 3 of 206 -- Mike Ksiazek, Chairperson Elected to the Board of Supervisors in 2017, Mr. Ksiazek has previously served as Chairperson in 2020, 2022, and 2024, and Vice Chairperson in 2018 and 2019. He was re-elected to a second term in 2023. In addition to his community activism, Mr. Ksiazek is an attorney for Stark & Stark in Yardley. He resides in Langhorne with his wife Chrissy and their children Cole, Caylie, and Caden. Mr. Ksiazek's term expires in 2029. Bernadette Hannah, Vice Chairperson Elected to the Board of Supervisors in 2021, Ms. Hannah has served as Vice Chairperson since 2024, and served as Secretary in 2023. She also serves as the Supervisor of Elementary Curriculum for the Bristol Township School District. Prior to her role as a Supervisor, Ms. Hannah was the inaugural chairperson of the Middletown Township Human Relations Commission. She resides with her daughters in Levittown. Ms. Hannah's term expires in 2027. Dana Kane Elected to the Board of Supervisors in 2021, Ms. Kane is the Director of Medical Economics and Value Based Care at Clover Health. In her free time, she volunteers with the Actuaries Club of Philadelphia. She resides with her husband Michael and their children Carlyn, Alexander, and Sean, and black lab Libby in Langhorne. Ms. Kane's term expires in 2027. Elected to the Board of Supervisors in 2019, Ms. Quirple served as Secretary in 2021 & 2022 before being appointed Vice Chairperson in 2023. Ms. Quirple is a Legislative Assistant for Representative Tina Davis (PA-141). She resides in Levittown with her husband Danny and their children, Drew and Brie. Ms. Quirple's term expires in 2025. Dawn Quirple, Secretary B O A R D O F S U P E R V I S O R S 4 -- 4 of 206 -- Remembering Supervisor Anna Payne 1985 - 2025 Middletown Township honors the life, leadership, and legacy of Supervisor Anna Payne, whose courage, compassion, and dedication to public service continues to inspire our community. After being elected Auditor in 2017, Anna was elected to the Board of Supervisors in 2019. Anna was a passionate advocate for inclusivity, equity, and community connection. She championed initiatives that strengthened the Township’s outreach, transparency, and engagement with residents. Among her many accomplishments, Anna was instrumental in establishing the Middletown Township Human Relations Committee, fostering dialogue and understanding across our diverse community. Her work on numerous Township projects—including expanding accessibility in public facilities, supporting first responders, and enhancing recreation and human services—reflects her steadfast belief in building a more compassionate, connected, and accessible community. Anna’s kindness, empathy, and spirit of service touched all who had the privilege of working with her. Though she is no longer with us, her legacy continues through every program, partnership, and policy shaped by her vision for a better Middletown Township. Anna will forever be an inspiration to all of Middletown Township. 5 -- 5 of 206 -- TABLE OF CONTENTS INTRODUCTION Elected and Appointed Officials 3 Board of Supervisors 4 Remembering Supervisor Anna Payne 5 Table of Contents 6 GFOA Distinguished Budget Presentation Award 10 Awards & Accreditations 11 Meet the Management Team 12 Meet the Budget Team 14 Organization Chart 15 Boards and Commissions 16 Budget Purpose & Reader’s Guide 18 Reading the Line-Item Budget 19 EXECUTIVE SUMMARY Township Manager’s Transmittal Letter 21 Budget Overview 25 Critical Budgeting Details, Trends, and Assumptions 28 Revenues and Proposed Tax Increase 31 Comparison of Similar Municipalities 36 Fund Balance 40 Budget Process and Calendar 42 Conclusion 44 6 -- 6 of 206 -- BUDGET Budget Summary 45 General Fund 46 Street Lighting Fund 57 Fire Protection Fund 60 Parks and Recreation Fund 64 Ambulance and Rescue Fund 69 Road Machinery Fund 72 Fire Hydrant Fund 76 Fire Apparatus Fund 80 Sanitation Fund 84 Middletown Country Club 87 Farm Fund 90 Stormwater Fund 94 Debt Service Fund 98 Capital Fund 102 Investment Fund 107 Highway Aid Fund 110 Projections 114 REVENUES Revenues 117 Real Estate Taxes 118 Tax Levy Summary 121 Real Estate Tax Revenue by Fund 122 Bucks County Real Estate Tax Comparison 123 Greater Philadelphia Real Estate Tax Comparison 125 Impact of Taxes 127 7 -- 7 of 206 -- Act 511 Taxes 128 Amusement Tax 129 Earned Income Tax 130 Local Services Tax 133 Mechanical Device Tax 134 Mercantile Tax 135 Parking Transaction Fee 137 Per Capita Tax 138 Real Estate Transfer Tax 139 Cable Television Franchise Fee 140 Building Inspections & Permits 141 Fire Inspections 142 Reimbursement of Police Services 143 Police Fines 144 Recreation Program Fees 145 Solid Waste/Recycling Fees 146 Stormwater Impact Fee 148 Interest Income 149 State Allocations 150 EXPENDITURES Expenditures 151 Salaries & Wages 152 Medical Insurance 155 Workers’ Compensation Insurance 157 Property & Liability Insurance 158 Contracted Services 159 Legal Services 160 Engineering Services 161 Utilities 162 8 -- 8 of 206 -- DEBT Debt Service & Limitations 163 Debt Service Summary 164 General Obligation Bonds 164 Series of 2020 165 Series of 2021 166 LED Street Lighting (Series of 2017) 167 CAPITAL IMPROVEMENT PLAN Introduction 169 Purpose 170 Planned Projects by Asset Type 171 Funding Overview 172 2026 Capital Improvement Projects 174 Five-Year Capital Improvement Plan 176 Impact on Operating Expenses 178 Building & Grounds 179 Building & Zoning 181 Fire & Emergency Services 182 Information Technology 183 Parks & Recreation 185 Police 187 Public Works 189 Storm Sewer & Drains 192 Transportation & Signals 194 APPENDIX & GLOSSARY Glossary of Terms 197 9 -- 9 of 206 -- PRESENTED TO Township of Middletown Pennsylvania For the Fiscal Year Beginning January 01, 2025 Executive Director GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award 10 -- 10 of 206 -- Aaa Bond Rating Distinguished Budget AwardP R E S E N T A T I O N Certificate Achievement Financial Reporting F O R E X C E L L E N C E I N of The Government Finance Officers Association (GFOA) establishes nationally- recognized standards for governmental budgeting. Middletown Township received this award for the seventh time in 2025. Middletown Township is among fewer than 1% of governmental bodies in Pennsylvania to earn this achievement. GFOA Certificate of Achievement for Excellence in Financial Reporting (2023) First awarded in 1996, Middletown Township is an twenty-one time recipient of the GFOA Certificate of Achievement for Excellence in Financial Reporting. The Township has earned this award for the last ten consecutive years. This award recognizes governmental bodies for preparing their annual audited financial report in accordance with nationally-recognized standards for financial reporting. The award status is pending for the 2024 submission. GFOA Distinguished Budget Presentation Award (2025) In 2021, Middletown Township earned its second consecutive triple-A credit rating by Moody's, the highest possible credit rating issued by the agency. Moody's reaffirmed Middletown's credit rating in 2023 and cited the Township's financial outlook as stable. Moody's issued the Township a triple-A credit rating for its strong management, financial health, and vibrant local economy. Aaa Bond Rating by Moody's (2023) The Middletown Township Police Department became the 43rd law enforcement agency to earn accreditation by the Pennsylvania Chiefs of Police Association, and the second in Bucks County in 2008. Reaccredited for the fifth time in 2023, the Middletown Township Police Department is one of 194 law enforcement agencies in Pennsylvania and one of 25 in Bucks County to earn and maintain this achievement. This accreditation adds authority and legitimacy to the Middletown Township Police Department when working with other local, state, and federal law enforcement authorities. Pennsylvania Police Chief's Association Accredited Law Enforcement Agency (2023) Middletown Township became the tenth Certified Platinum Sustainable Community through the Sustainable Pennsylvania Community Certification program in 2022, the highest possible honor. This program indicates the Township deploys sustainable practices within its organization and throughout the community. Middletown Township is proud to be one of only two municipalities in Southeastern Pennsylvania to earn this achievement. Certified Platinum Sustainable Community (2022) A W A R D S A N D A C C R E D I T A T I O N S 11 -- 11 of 206 -- Appointed in 2025, Mr. Ratliff brings more than a decade of municipal management experience to Middletown Township. He has served as Township Manager in three Pennsylvania communities, leading efforts to strengthen financial controls, advance infrastructure investment, and enhance public transparency. During his tenure in Kennett Township, he implemented organizational reforms that restored community trust and modernized township operations. Prior to his appointment in Middletown Township, he served as Deputy City Manager for Administration in Charlottesville, Virginia. Mr. Ratliff remains dedicated to fostering transparent, efficient, and community-focused government. Ms. Hucklebridge was appointed in 2024 and joins Middletown Township as the Director of Finance. She has 22 years of experience as an auditor and accountant with public, private and governmental organizations. She is a responsible steward of the Township’s financial resources. She most recently served as the Director of Finance at the Warminster Municipal Authority. Ms. Hucklebridge has a Bachelor’s degree in accounting from Lehigh University and holds a CPA license in the Commonwealth of Pennsylvania. Eden Ratliff, Township Manager Chief Bartorilla was appointed Chief of the Middletown Township Police Department in 2014. Prior to Middletown, he worked in the Philadelphia Police Department and Philadelphia Housing Police Department for a combined 23 years. Chief Bartorilla has his Bachelor’s and Master’s degrees from Fairleigh-Dickinson University, and is a graduate of the FBI National Academy, Northwestern SPSC, and PERF’s Senior Management Institute. Chief Bartorilla currently serves on the Bucks County Police Chiefs Association executive board as the second vice president. Joseph Bartorilla, Chief of Police Laura Hucklebridge, Director of Finance Mr. Valla was appointed as the Assistant Township Manager in January 2021 after beginning with the Township in June 2018 as a Management Intern and as the Management Analyst. Originally from Central California, Mr. Valla earned his Bachelor's degree in Political Science from Fresno Pacific University and his Master of Public Administration from Villanova University. In his spare time, Mr. Valla serves as the Treasurer of the Middletown Community Foundation, Second Vice President of the Bucks County Consortium, Chairperson of the Membership Committee of the Association for Pennsylvania Municipal Management (APMM) and a member of the Assistant Chief Administrative Officer (ACAO) Committee for the International City/County Management Association (ICMA). Nick Valla, Assistant Township Manager M E E T O U R M A N A G E M E N T T E A M 12 -- 12 of 206 -- Jim Ennis, Director of Building & Zoning Jim Ennis joined Middletown Township in 2022 as the Director of Building & Zoning after working in similar roles for several years in Upper Dublin Township and New Hope Borough. Prior to his tenure in municipal government, Mr. Ennis worked for the Montgomery County Planning Commission and a third-party inspection agency. He has a Master in Community and Regional Planning from Temple University and a Bachelor's degree in geography from Kutztown University. Mr. Ennis also holds a certification from the American Institute of Certified Planners (AICP). Eric Gartenmayer, Director of Public WorksEric Gartenmayer began working for the Middletown Township Department of Public Works as an equipment operator in 2006. Prior to Middletown Township, he worked for the Upper Southampton Municipal Authority and the Neshaminy School District for a combined 20 years. Since being appointed Director in 2024, Mr. Gartenmayer has been instrumental in working with other departments on various infrastructure projects. In addition to his professional achievements, Eric is a lifetime member and former Chief of the Lower Southampton Fire Company, where he has demonstrated his commitment to community service and leadership. Paul Kopera, Director of Parks & Recreation Paul Kopera has been the Director of Parks & Recreation for Middletown Township since March 2018. Mr. Kopera started in the Department of Parks & Recreation in 2006 and is a 37-year resident of Middletown Township. Paul’s two children were very active in the community, familiarizing him with the township’s parks and other amenities. Being active with his children fueled his desire to become a parks & recreation professional. In the last few years, he has doubled the department’s program revenue and has overseen several major capital improvement projects. Mr. Kopera earned his bachelor’s degree in economics from Fordham University in 1982. Melissa Gargan, Director of Human Resources Melissa Gargan was appointed as Middletown Township’s first Human Resources Director in 2025. Prior to joining Middletown, she served the Abington Township Police Department for 17 years, advancing through several leadership positions including Director of Youth Programs, Manager of Administrative Services, and Human Resources Manager. Melissa holds a Bachelor of Science in Business Administration from Kutztown University and is a graduate of Abington High School. She brings extensive experience in public sector administration, employee relations, and organizational development, and looks forward to building a strong, people- centered HR Department that supports the Township’s dedicated workforce. 13 -- 13 of 206 -- M E E T T H E B U D G E T T E A M Budget Team Eden Ratliff, Township Manager Nick Valla, Assistant Township Manager Laura Hucklebridge, Director of Finance Miranda Colon, Executive Assistant Jim Ennis, Director of Building and Zoning Mary Hendershot, Accountant Liz Martin, Public Information Officer (PIO) Nicole Tener, Program Coordinator/Acting PIO The Middletown Township Budget Team is dedicated to maintaining transparency, fiscal responsibility, and excellence in public service. Formed for the development of the 2026 Annual Budget, this cross- departmental group collaborated to produce a comprehensive and balanced plan that aligns Township resources with community priorities. The Budget Team works year-round to monitor financial trends, evaluate department needs, and ensure that every dollar is spent responsibly. Their collective expertise supports long-term stability, operational efficiency, and strategic investments in Middletown Township’s future. Committed to fiscal transparency, accountability, and service excellence. 14 -- 14 of 206 -- Elected Auditors Residents of Middletown Township Board of SupervisorsElected Tax Collector Solicitor & Engineer Director of Public Works Chief of Fire & Em. Services Chief of Police IT Manager Director of HR Director of Parks & Recreation Director of Finance Director of Building & Zoning Assistant Township Manager Township Manager Executive Assistant Advisory Boards & Commissions ELECTS APPOINTS MANAGES Public Information Officer O R G A N I Z A T I O N C H A R T 15 -- 15 of 206 -- Boards and Commissions In addition to the Board of Supervisors, Middletown Township has ten standing boards and commissions with membership appointed by the Board of Supervisors. Each board and commission serves a unique role advising the Board of Supervisors on key issues and interest areas. A staff member typically acts as a liaison between the board and the administration. Some boards convene consistently while others convene as topics arise. Please check the Township website for meeting dates. Board of Code Appeals The Board of Code Appeals exists to adjudicate appeals to the Township’s adopted building code and meets on as-needed basis. The Board consists of five members. Citizens Traffic Commission The Citizens Traffic Commission advises the Board of Supervisors on transportation, pedestrian connectivity, and other traffic issues on Township roads. The Citizens’ Traffic Commission consists of five resident members and several Township staff, led by the Assistant Township Manager. The Commission works with the Township Traffic Engineer and Police Department to prioritize resident concerns and recommend solutions to the Board of Supervisors. Environmental Advisory Council The Environmental Advisory Council advises the Board of Supervisors on matters concerning the conservation and preservation of natural resources (i.e. wetlands, flood plain areas) located in the Township. The Environmental Advisory Council consists of seven members, led by the Director of Parks and Recreation. Financial Advisory Committee The Financial Advisory Committee makes recommendations to the Board of Supervisors on the management of the Township's Investment Fund. The Financial Advisory Committee consists of seven members, led by the Director of Finance. Historic Preservation Commission The Historic Preservation Commission identifies and encourages preservation of historically significant structures in the Township, meeting on an as-needed basis. Requests can be made to have a property designated as historically significant by the Township. The Historic Preservation Commission consists of nine members, led by the Township Manager. 16 -- 16 of 206 -- Human Relations Commission Formerly known as the Disabled Persons Advisory Board and established in 2020, the Human Relations Commission acts as a local subsidiary of the Pennsylvania Human Relations Commission and is charged with reviewing and mediating allegations of discrimination in housing, employment, public accommodation, and access to education within the Township. The Human Relations Commission consists of seven members, led by the Township Manager’s Office. Parks & Recreation Board The Park and Recreation Board is responsible for advising the equipping, supervision, and maintenance of the Townships' parks, establishing and conducting a variety of recreation activities, and planning for recreation opportunities in the Township. The Parks and Recreation Board consists of seven members, led by the Director of Parks and Recreation. Planning Commission The Planning Commission reviews subdivision and land development applications that have been submitted to the Township. The Commission acts as an advisory body to the Board of Supervisors regarding all planning and zoning issues. The Planning Commission consists of seven members, led by the Director of Building and Zoning. Stormwater Advisory Committee Established in 2025, the Stormwater Advisory Committee provides oversight of the Township’s Stormwater Fund, where proceeds from the Stormwater Impact Fee are managed. The Committee also advises on planned improvement projects, adjudicating appeals of the Stormwater Impact Fee from property owners, and making recommendations on changes to the Fee. The Stormwater Advisory Committee consists of five members and is led by the Assistant Township Manager. Youth Aid Panel The Youth Aid Panel provides an alternative to the juvenile court system in dealing with first time summary and misdemeanor offenders, working to prevent juvenile offenders from becoming more involved in delinquent activities. The Youth Aid Panel consists of seven members and is led by a civilian coordinator and liaison from the Police Department. Zoning Hearing Board The Zoning Hearing Board serves as an appellate board for those seeking relief from decisions of the Zoning Officer and is empowered by state law to grant variances and special exceptions from requirements of the zoning ordinance. The Zoning Hearing Board consists of five members, guided by the Director of Building & Zoning and the Zoning Hearing Board Solicitor. 17 -- 17 of 206 -- Budget Purpose & Reader’s Guide Budget Purpose The purpose of Middletown Township’s budget is for the Board of Supervisors, the Township’s governing body, to establish its priorities for the disbursement of funds to accomplish its goals. It is also the legal authorization for a Township government to spend money during a fiscal year for specific purposes. The budget is a financial, operations, communications, and policy guide which reflects the allocation of limited resources among competing uses and community needs. Additionally, it serves as an ongoing guide to staff about how funds are to be expended in accordance with the public’s needs. To the public, the budget describes and details how the Township accumulates and dispenses its resources. Reader’s Guide This reader’s guide outlines the Township’s budget process, clarifies format and content, and helps navigate this document. Middletown Township prepares its budget and associated contextual information in accordance with Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award standards, empowering all stakeholders—the Board of Supervisors, Township staff, taxpayers, business owners, patrons, and neighbors—to be more informed and make more informed decisions. Readers are encouraged to take advantage of this document to find additional information related to the Middletown Township annual budget. First-time readers should review the Executive Summary, which includes a high-level overview of the Township’s finances, services, and the various factors impacting both. It also identifies how the Township’s finances are allocated to support the Board of Supervisors’ goals. The line-item budget contains past, present, and planned revenues and expenditures across all areas of the Township, organized by fund. Here, individual expenses are organized into common categories, making it easier for decision-makers to monitor changes from year to year. This is commonly used to anticipate future trends and concerns so that decision-makers can plan accordingly to mitigate or plan for these changes. Following the line-item budget is an analysis of revenues and expenditures, organized by type. Each section dissects individual revenue sources and expenditures, showing trends over time and the underlying factors driving those trends. In some cases, a comparative analysis to similar or nearby communities is included. Following this section is an overview of the Township’s debts. The next section includes a comprehensive five-year Capital Improvement Plan, with detailed descriptions for 2026 projects. The budget document concludes with a glossary of terms. 18 -- 18 of 206 -- Reading the Line-Item Budget 1. Fund name. Each of the Township’s funds has its own line-item budget. 2. Section of budget. This label will read either “revenues,” “expenditures,” or “summary.” 3. Account number. These numbers allow Township funds to be categorized in the correct fund and fund category. 4. Prior years’ numbers. These numbers show money actually collected/spent in the given year. Providing actual numbers from prior years helps show growth and decline within individual accounts over time after adjustments are made. 5. Budgeted Funds. This is the amount of money budgeted by Township staff to be collected/spent for each fiscal year. 6. 2025 Projection. This is the amount of money Township staff estimates will actually be collected/spent by the end of 2025. 7. Variance. This figure, expressed in dollars and percentages, depicts the change from the current budget to the proposed budget. 8. Fund department. Within each fund, there are several categories of revenues and expenditures. These departments summarize related line items. 9. Account description. Each account number has an associated account description which describes the activity of the associated account number. 10. Fund number. The first two digits of the account number correspond to each fund. Because this fund above is considered Fund 01, the first two numbers are “01.” 11. Fund department number. The middle three numbers correspond to the fund department, each of which aligns with the Commonwealth’s Chart of Accounts. Generally, department numbers beginning with a “3” refer to revenue items, and department numbers beginning with a “4” refer to expenditure items. 12. Fund category number. The final three digits correspond to each line item. Matching line items in different fund categories will have the same final three digits. This number indicates where transactions occur. For more information, review the Pennsylvania Chart of Accounts. 19 -- 19 of 206 -- This page intentionally left blank. 20 -- 20 of 206 -- November 17, 2025 In accordance with Chapter 62-105 B.(3) of the Middletown Township Code of Ordinances, I hereby present a balanced budget to the Board of Supervisors and residents of Middletown Township for the year 2026. As required by code, the proposed budget represents an accounting of expected and needed revenues, as well as expenditures, for the budget year and incorporates feedback provided from the Board of Supervisors, community, and Township Department Heads. The proposed budget is a policy document designed to allocate resources needed to support local government operations and services, address unmet needs of the community, and make substantial progress in achieving the policy priorities of the Board of Supervisors. The proposed 2026 Budget contemplates a tax increase to fund the government that has been balancing its operations by spending down its fund balance for the past several budget years. The 2025 Budget was adopted with a $2.8 million structural deficit in the General Fund which historically grows by $1 million per year. Additionally, the Township has steadily reduced investment in infrastructure as a means to lessen the impact of the structural deficit, creating a backlog of maintenance issues that need to be addressed. The proposed 2026 Budget contemplates an increase to the Earned Income Tax (EIT) from the current 0.5% to 1.0% as well as a Real Estate Tax increase of 6.08 mills to support the rising costs of public safety, fire protection, infrastructure maintenance, and our parks and open spaces. Without a tax increase, significant reductions in service—nearly 20% of all staff—will be necessary to balance the budget. In hearing the feedback from the community and the Board of Supervisors, it is clear that residents demand a high level of service from their municipal government. This budget contemplates a funding plan to fulfill that expectation. Additional revenue proposed for the 2026 Budget will represent significant investments into the Township’s aging infrastructure including roads, curb ramps, and stormwater drainage, volunteer and career fire services, internal efficiency gains, and Board of Supervisor policy priorities. This proposed budget and supplemental budget book will be submitted for the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for the 8 th consecutive time, an award only provided to organizations who go above and beyond to provide detailed supplemental data to support the proposed budget. Middletown Township has received this award each of the last seven years demonstrating its commitment to strong financial planning and transparency. For those who want to understand the municipal budget, how the government is funded, why costs are changing, and the justification for a tax increase, I recommend you read this budget book in full. Transparency in government operations is a cornerstone priority for the Board of Supervisors and leadership team of Middletown Township. The Township is obligated to provide certain services to its residents, maintain our vast infrastructure, enhance the existing quality of life, and be responsive to the community. The 2026 budget process was built on these principles with four public budget workshops designed to provide information and education about the budget to the community and 21 -- 21 of 206 -- elected body and receive real time feedback in return. The workshops focused on capital planning, operations, revenues, and modeling of different scenarios so participants could weigh in on various options including reducing or eliminating existing services, providing additional funding to the Township, and hybrid combinations. All meetings were recorded and are available for viewing on the Township website. Local government funding is a challenge, especially when it comes to increasing taxes, and I am proud of the exhaustive efforts of our team to identify and secure grant funding from many different sources to keep the costs of Middletown Township government low. Grants have funded many recreational facilities, vehicles, equipment, curb ramps compliant with the Americans with Disabilities Act (ADA), stormwater infrastructure, and more. The 2026 Budget contemplates earned and potential grant awards of more than $10 million from a variety of different sources. These grants help the Board of Supervisors advance their priorities while keeping the costs to the taxpayers as low as possible. I commend our Township staff for the work they put in to aggressively pursue grant funding. The Township’s fund balance policy requires the General Fund to maintain a balance of at least 25% of annual operating costs in reserves. The Township has far exceeded this percentage in the past and had used that fund balance to supplement infrastructure improvements in the past, and more recently to offset the operating deficit over the past couple of years. At the end of 2025, the fund balance of the General Fund is at the minimum balance permitted by this policy. Continuing the practice of using General Fund reserves to offset the structural deficit in 2026 will violate the fund balance policy, and more crucially, jeopardize the Township’s Aaa bond rating. The current budget proposes to balance the budget through strategic efficiency gains and increased tax revenue to end this practice. The Township is also holding $40 million in the Investment Fund that is the result of selling the water and wastewater systems to Bucks County Water & Sewer Authority in 2002. The investment returns from this fund have been rightly used to fund capital projects in the past. Long-term, the Investment Fund creates an unparalleled ability for the Township to finance future capital investments and rebuild the principal over time for future strategic priorities. I do not recommend that the Township use this one-time money to offset the costs of general operations because once the one-time money is gone, the budget would be structurally out of balance and headed toward a major fiscal cliff. It is a priority for each operating and enterprise fund to be structurally balanced, which can be achieved with the tax strategy laid out in this proposed budget. The story of the 2026 proposed budget is told throughout the remainder of the budget book and is one of investment into local government services. For example, the Township will be paving roads at four time the current rate with nine (9) miles planned for 2026. ADA curb ramps will be replaced at three and a half times the current rate, putting the Township on a replacement schedule mirroring the life cycle of this infrastructure. Additionally, there will be three times more stormwater inlets replaced allowing for proactive maintenance which our aged drainage network sorely needs. 22 -- 22 of 206 -- Additional investments into the Township include: • Strategic transparency focused on educating the public about the budget, funding, capital projects, and investments into the community and government services; • Investment into volunteer firefighter retention and the existing career fire program to ensure Township residents consistently receive professional emergency services; • Achieving structural balance in the General Fund, other operating funds, and enterprise funds, ensuring revenues match or exceed expenditures; • Strengthening our investments into Township infrastructure including road paving, ADA curb ramps, stormwater drainage, parks, and Township-owned facilities; and • Enhancing our financial strength by maintaining our minimally-required fund balance in the General Fund, achieving structural operating balances, and preserving invested funds. Local government is the form of government that is closest to the people that it serves and has the obligation to engage and educate its residents about its government, the services it provides, and the impact it has on the community. The budget workshops and this budget book are created for the community with those obligations in mind. The creation of a municipal budget is a monumental task that involves too many people to mention and thank. The proposed budget was developed by a dedicated budget team that consisted of myself and: • Laura Hucklebridge, Director of Finance • Nick Valla, Assistant Township Manager • Jim Ennis, Director of Building and Zoning • Mary Hendershot, Accountant • Nicole Tener, Acting Public Information Officer • Miranda Colon, Executive Assistant to the Township Manager • Elizabeth Martin, Public Information Officer The budget team had the responsibility of hearing every budget proposal and making recommendations regarding its inclusion as well as developing the strategy for both building and funding the budget as well as how to facilitate public discussions during its development and now after its proposal. Cumulatively they spent over a thousand hours hearing proposals, attending meetings, evaluating options, researching comparables, exploring alternatives to budget cuts and additions, and developing the strategy for the development and production process. Their dedication is unmatched and something I cannot be more appreciative for. The product is stronger because of their diverse perspectives and input as well as their commitment to providing first-class services to the community. To the budget team, thank you for getting us through this process as I know it was anything but easy. 23 -- 23 of 206 -- To the Board of Supervisors, thank you for the honor to lead a team in developing the proposed budget aimed at achieving your policy priorities. Your engagement and leadership at this point have served as a strong guide in compiling this policy priority document. We look forward to your review process in the coming weeks. To the community, we encourage you to thoughtfully engage the contents of this proposed budget book and interact with the Township in the review period. The Township strives to be transparent and responsive and seeks your informed feedback about what is being proposed. Thank you. Eden Ratliff Township Manager 24 -- 24 of 206 -- Budget Overview The overall 2026 Budget includes $52,839,700 in operational expenditures across the Township’s 15 operating and enterprise funds as well as $5,132,100 in capital expenditures: FUND 2026 EXPENDITURES General $ 30,515,300 Street Lighting Tax 545,100 Fire Protection Tax 2,530,500 Parks and Recreation 2,640,200 Ambulance and Rescue 386,600 Road Machinery Tax 927,500 Fire Hydrant Tax 67,200 Fire Apparatus - Sanitation 5,652,500 Middletown Country Club 145,000 Farm 99,500 Stormwater 2,830,900 Debt Service 2,820,700 Investment 1,390,000 Highway Aid 2,568,000 TOTAL $ 53,119,000 Capital $ 5,132,100 Most of the Township’s funds have restrictions on how revenues can be spent. For example, the Street Lighting Tax Fund can only incur expenses related to providing street lighting services to the Township. Unlike the other limited-purpose funds, the General Fund can be utilized for any operational expenses of the Township. More than 57% of all budgeted operating expenses in 2026 will be incurred in the General Fund, which supports all operations of the Township with the exception of firefighting and parks and recreation. 2026 General Fund Expenditures by Category Legislative & Admin 3.9% Finance 2.0% Tax Collection 1.0% Legal & Engineering 3.1% IT & Software 3.4% Building Maintenance 1.7% Police 50.2% Police Pension 10.8% Police Post-Retirement Medical 1.4% Fire Code/ Emergency Mgmt. 1.1% Building & Zoning 5.0% Public Works 8.5% Non-Uniform Pension 1.3% Insurance 3.4% Capital Fund Transfer 3.3% 25 -- 25 of 206 -- Half of all expenditures in the General Fund are to support the cost of the daily operations of the Middletown Township Police Department. In addition, another 12.2% of all General Fund expenditures support the cost of police pensions and the post-retirement medical insurance benefit. Overall, 62.4% of every dollar in the General Fund is spent on police services. The remaining 37.6% of the General Fund budget goes to support nearly all other services provided by Middletown Township. This includes Administration, Finance, Tax Collection, Legal, Engineering, Information Technology, Building Maintenance, Fire Code/Emergency Management, Building & Zoning, Public Works, Non-Uniform Pension, Insurance, and a transfer of $1 million to the Capital Fund in 2026. Within the General Fund, the overwhelming majority of expenses are related to the personnel providing services to the community. Salaries and wages, employee benefits, and pensions comprise more than 81% of all budgeted expenditures in the General Fund. Across all service areas, the vast majority of expenses in the General Fund are attributable to salaries and wages to compensate personnel. The below chart outlines that 81.03% of all General Fund expenditures are attributed to personnel. EXPENDITURES BUDGET % OF TOTAL Salaries & Wages $15,601,600 51.13% PERSONNEL Medical Cost 4,012,000 13.15% COSTS Other Benefits 1,408,000 4.61% $24,725,900 Pension 3,704,300 12.14% 81.03% Building Maintenance 100,000 0.33% Communications 121,200 0.40% Contracted Services 1,143,100 3.75% Engineering 145,000 0.48% Equipment 171,800 0.56% Fleet Maintenance 374,100 1.23% Legal 660,000 2.16% Memberships and Training 312,400 1.02% Operating Supplies 306,800 1.01% Property and Liability 475,000 1.56% Software 450,000 1.47% Tax Collection Fees 176,000 0.58% Utilities 280,000 0.92% Other Expenses 74,000 0.24% Capital Fund Transfer 1,000,000 3.28% TOTAL $30,515,300 100.00% 26 -- 26 of 206 -- Extensive efforts are made on a routine basis to control costs. Examples include requesting proposals for professional services periodically to assure market alignment and finding service providers to offer comparable or better services for less cost. Additionally, opportunities for efficiency gains are also routinely investigated and implemented where practical. Modern software systems that streamline workflows are one of the most common examples. The Board of Supervisors and staff must continuously monitor spending on a monthly, quarterly, and annual basis. A continued commitment to improving service efficiency and controlling costs is crucial to maintaining the stability of the General Fund. The General Fund does not have sufficient revenue to continue supporting the cost of Middletown Township’s services to the community. A structural deficit—a persistent imbalance where expenses consistently exceed revenues, even when the economy is performing well—is clearly present in the General Fund. The cost of providing services generally grows by $1 million per year in the General Fund just to maintain the existing level of service. Adequate investments in infrastructure have been sacrificed in recent years in an effort to focus resources on providing core services. 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 General Fund Revenues vs. Expenses by Year Revenues Expenditures Surplus Deficit 27 -- 27 of 206 -- Critical Budgeting Details, Trends, and Assumptions Many variables and assumptions are relevant in developing any budget. The 2026 Middletown Budget accounts for dozens of key factors, including the following: Investing in Infrastructure • The 2026 Budget proposes a significantly higher investment in road repaving. A total of $2 million, which is four times the 2025 budgeted amount, is planned in the Highway Aid Fund for 2026. This will allow the Township to pave nine (9) miles of Township- owned roadways. Paving efforts will be focused in several neighborhoods within the Levittown section of the Township. This effort will be supported by three and a half times more ADA curb ramp installations in an ongoing effort to make Middletown more accessible to residents of all abilities. • The Stormwater Fund, funded by proceeds from the Stormwater Impact Fee, will be playing a vital role in bolstering expanded stormwater management efforts in 2026. Three times as many stormwater inlets are planned in 2026 than were completed in 2025. Enhanced stormwater maintenance plays a critical role in minimizing the impact of large rain events. • The 2026 Capital Improvement Plan details priority capital maintenance and capital improvements to the community in the coming five years, $59.3 million in investments planned through 2030, with more than $10.4 million in projects contemplated for 2026 across all funds. • The Township’s vehicle and equipment replacement needs have been consistently supported by the Bucks County Redevelopment Authority (RDA) Grant Program with supplemental funding from the Capital Fund and the Road Machinery Fund. Vehicle replacement has been streamlined through strategic oversight and implementation of departmental vehicle replacement plans, reflected in the Capital Improvement Plan. Township Staff • In recent years, the Township has made minimal expansions to staff. Most changes since the COVID-19 pandemic have been in the Police Department and Department of Fire & Emergency Services. As staff have retired, departments have been reorganized and restructured to prioritize efficiency in an effort to control costs. 28 -- 28 of 206 -- • Township employees are represented by four separate collective bargaining units. Contractual wage increases in 2026 will be 4% for the Police Benevolent Association (PBA), Independent Association of the Department of Public Works (DPW), Teamsters Local 107, and Crossing Guard Association. • The 2026 Budget proposes the following staff changes: o Addition of five equipment operators in the Department of Public Works to focus on stormwater maintenance operations. o Addition of one fire lieutenant to provide structure to the Department of Fire & Emergency Services. o Addition of one professional engineer to reduce the cost to develop and implement infrastructure maintenance and improvement projects. o Reclassification of a part-time Information Technology to full-time to prioritize cybersecurity. • All vacant positions across the organization are contemplated to be filled in 2026. Fire Services • Middletown Township is served by four volunteer fire companies. Dedicated volunteers from each of the four fire companies provide fire suppression services to township properties with daytime support from the Department of Fire and Emergency Services. Maintaining the viability of the four volunteer fire companies is critical to avoiding the potential cost of a fully paid department. The Township is actively collaborating with the fire companies to evaluate the level of response each company provides to assure taxpayers receive the fire protection services they expect. • In an effort to retain existing volunteers and recruit new volunteers, an increase to both the volunteer stipend and tax credit programs are proposed. This budget contemplates a stipend increase from $250 to $599 per volunteer per year. The tax credit program is also being expanded from a maximum $500 tax credit to a 100% credit from both Real Estate and Earned Income Taxes for active firefighters. • Staff and fire company leaders are also collaborating to evaluate how much fire apparatus is needed to serve the Township and where it is to be deployed from, with the goal of maximizing response efficiency and reducing costly redundancy. A fire protection study to investigate this matter further is budgeted in the Fire Protection Fund in 2026. 29 -- 29 of 206 -- Insurance Coverages • Middletown Township participates in two separate municipal insurance pools, the Delaware Valley Health Insurance Trust (DVHT) and Delaware Valley Workers’ Compensation Trust (DVWCT). Municipal insurance pooling has been critical to stabilizing insurance costs in these two categories. • The 2026 renewal from DVHT for health insurance is 6.6%, a fraction of the typical renewal rates experienced by the Township in the commercial market. The DVWCT 2026 renewal of 13.3% is impacted by an increased frequency in Workers’ Compensation claims over the past year as well as the reclassification of fire inspectors to firefighters. • Property and Liability Insurance is currently out to market. Premiums are expected to be stable due to a low claim volume. Pension • The Minimum Municipal Obligation (MMO) for 2026 was certified to the Board of Supervisors in September at $3,306,700 for the Police Pension Plan and $397,600 for the Non-Uniformed Pension Plan. The following chart details historical payments on the Township’s pension obligation over the past fifteen years. • New plan valuations are due soon and will guide future contribution requirements. Currently. The Police Pension Plan is 86.2% funded and the Non-Uniform Pension Plan is 94.6% funded. Though the Township has a long practice of only contributing the MMO to the pension plans, additional contributions may be required to curtail potential funding status declines. • In 2026, it is recommended that a proposal process be administered for pension investment management services. With more than $70 million in combined assets, the Township currently pays approximately $500,000 to manage these plans, which is a key driver to the cost of the pension plans. 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 Minimum Municipal Obligation (MMO) by Year Uniform Pension Plan Non-Uniform Pension Plan 30 -- 30 of 206 -- Focusing on the Future • Middletown Township has a tremendous amount of opportunity for revolutionizing the level of service residents receive in the coming years. While significant enhancements are programmed for 2026, there are several long-term opportunities the Board of Supervisors plans to investigate for the future. One such example is the Middletown Country Club, a Township-owned golf course with a lease agreement set to expire in December 2028. A feasibility study is planned in the Country Club Fund in 2026 to evaluate all possible options for the property once the lease expires. • Significant planning efforts for future projects are underway. By the end of the decade, more than $9 million in stormwater improvements are planned. Much of 2026 will be spent building out the details of those plans for eventual implementation. With the addition of an engineer, extra attention will be focused on designing improvements that maximize resources. • At the Public Works Facility in Levittown, a significant overhaul of the rear garage building is planned in the coming years, with extensive design work planned in 2026. Several grant applications have been submitted to multiple sources to secure funding for construction, expected to start in 2027. Revenues and Proposed Tax Increase Increases to the two primary sources of revenue for the Township—the Earned Income Tax (EIT) and Real Estate Tax—are proposed in 2026. Expenditures in the General Fund outpace any revenue growth. When allowed to persist long enough, a structural deficit emerges. -3,000,000 -2,000,000 -1,000,000 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 General Fund Income/Loss by Year 31 -- 31 of 206 -- Earned Income Tax The EIT, currently at a rate of 0.5%, is among the lowest of all municipalities in Bucks County. An increase to the EIT to 1.0% is contemplated in the 2026 Budget. Additional legislation will be required to effectuate this change. Of all 31 townships in the County, Middletown Township was tied at 29 th with Bristol Township for the second-lowest total EIT rate in Bucks County paid by residents. Middletown Township residents who work in another municipality with a higher EIT rate pay the difference to the municipality in which they work. For residents working in most other municipalities, they are typically paying a 1.0% and will not experience a tax increase, but rather will now see their tax dollars invested in their own community. RANK TOWNSHIP TWP EIT* SCHOOL DISTRICT SD EIT* TOTAL EIT 1 Milford 0.75% Quakertown 1.00% 1.75% 1 East Rockhill 0.75% Pennridge 1.00% 1.75% 1 Bedminster 0.75% Pennridge 1.00% 1.75% 1 West Rockhill 0.75% Pennridge 1.00% 1.75% 5 Richland 0.60% Quakertown 1.00% 1.60% 6 Haycock 0.50% Quakertown 1.00% 1.50% 6 Hilltown 0.50% Pennridge 1.00% 1.50% 8 Springfield 0.75% Palisades 0.50% 1.25% 8 Tinicum 0.75% Palisades 0.50% 1.25% 8 Nockamixon 0.75% Palisades 0.50% 1.25% 11 New Britain 0.63% Central Bucks 0.50% 1.13% 12 Falls 1.00% Pennsbury 0.00% 1.00% 12 Bensalem 1.00% Bensalem 0.00% 1.00% 12 Lower Southampton 1.00% Neshaminy 0.00% 1.00% 15 Upper Southampton 0.50% Centennial 0.50% 1.00% 15 Warminster 0.50% Centennial 0.50% 1.00% 15 Northampton 0.50% Council Rock 0.50% 1.00% 15 Warrington 0.50% Central Bucks 0.50% 1.00% 15 Doylestown 0.50% Central Bucks 0.50% 1.00% 15 Warwick 0.50% Central Bucks 0.50% 1.00% 15 Plumstead 0.50% Central Bucks 0.50% 1.00% 15 Wrightstown 0.50% Council Rock 0.50% 1.00% 15 Newtown 0.50% Council Rock 0.50% 1.00% 15 Upper Makefield 0.50% Council Rock 0.50% 1.00% 15 Buckingham 0.50% Central Bucks 0.50% 1.00% 15 Solebury 0.50% NH/Solebury 0.50% 1.00% 15 Durham 0.50% Palisades 0.50% 1.00% 15 Bridgeton 0.50% Palisades 0.50% 1.00% 29 Bristol 0.50% Bristol Twp 0.00% 0.50% 29 Middletown 0.50% Neshaminy 0.00% 0.50% 31 Lower Makefield 0.00% Pennsbury 0.00% 0.00% MUNICIPALITY MUNI EIT* SCHOOL DISTRICT SD EIT* TOTAL EIT Langhorne Borough 1.00% Neshaminy 0.00% 1.00% Penndel Borough 1.00% Neshaminy 0.00% 1.00% Hulmeville Borough 1.00% Neshaminy 0.00% 1.00% Lower Southampton Township 1.00% Neshaminy 0.00% 1.00% Middletown Township 0.50% Neshaminy 0.00% 1.00% Langhorne Manor Borough 0.00% Neshaminy 0.00% 0.00% *Denotes current rates as of November 2025. 32 -- 32 of 206 -- While some school districts in Bucks County have an EIT, Neshaminy School District, along with most other school districts in lower Bucks County, do not have an EIT. Conversely, it is typical for municipalities in the area to have a 1.0% EIT. Of the eight municipalities in Bucks County with a 1.0% municipal EIT, six of them border Middletown Township: Bensalem Township, Falls Township, Lower Southampton Township, Langhorne Borough, Penndel Borough, and Hulmeville Borough. The other two, Morrisville Borough and Tullytown Borough, are also communities in lower Bucks County. In 2026, an increase to the EIT would generate an additional $6.2 million for a total of $16 million in revenue. By 2027, the EIT will effectively double to approximately $19 million in total revenue. The additional EIT revenue is necessary to correct the existing structural deficit in the General Fund and support the Township’s need to invest in improving aging infrastructure. Additionally, unlike any other tax levied by the Township, the EIT is the only tax that trends closely to the cost of living. An increase to the EIT is minimally impactful to retirees as forms of retirement income are generally not subject to the EIT. Additionally, the Township presently has and will maintain a policy that exempts those earning less than $12,000 per year (the maximum allowed by state law) from paying the EIT at all. Additional information about historical EIT income is detailed in the “Revenues” section of the budget document. Real Estate Tax The Real Estate Tax rate has only been increased once since 2010. In 2024, a small increase was made to the Fire Protection Fund to support the cost of providing daytime fire protection services with Township-employed firefighters. Aside from this, only small shifts in millage (the unit of measure for the Real Estate Tax) have been made between funds from time to time without a net tax increase. The 2026 Budget proposes a net increase of 6.08 mills across all funds, for a combined tax rate of 25.105 mills. The following tax rate changes are proposed: Fund Millage Rate Change 2026 Rate Additional Revenue (Loss) Fire Protection 3.080 5.000 $ 1,601,600 Fire Apparatus 1.420 2.500 738,400 Ambulance & Rescue 0.300 0.740 156,000 Parks & Recreation 1.580 3.500 821,600 General Fund (0.300) 7.025 (156,000) These additional tax levies are expected to generate an additional $3.16 million in 2026 entirely to support public safety and park maintenance. All proposed Real Estate Tax increases will support specific service areas of critical importance to the Township with existing or anticipated structural deficits. Three-quarters of the proposed Real Estate Tax increase will specifically support fire protection services, which has been the single 33 -- 33 of 206 -- fastest-growing service area in the Township as career firefighters are hired to offset the decline in volunteerism. Prior to 2024, Middletown Township levied the maximum possible 3.00 mill rate for fire protection services (the combined total of the Fire Protection Fund and Fire Apparatus Fund) as allowed by the Second Class Township Code. A change in state law (Act 54 of 2024) allows select municipalities, including Middletown, to raise their tax rates for fire protection (currently limited at 3.00 mills) and for ambulance and rescue services (currently limited at 0.5 mills) beyond these limits to new maximums of 10.00 mills and 5.00 mills, respectively. Additional legislation will be required to effectuate this change for the 2026 Budget. The Parks & Recreation Fund has operated in a structural deficit nearly every year since 2020, driven largely to the rising cost of maintaining parks and open spaces, including mowing more than 800 acres of grass at dozens of locations around the Township. Additionally, this fund does not have adequate resources to invest true capital maintenance projects beyond basic landscaping. An increase in revenue is necessary to provide adequate resources for parks and open spaces to be properly maintained into the future. As a result, all planned capital maintenance projects will be expended from the Parks & Recreation Fund in 2026. Recreation programming is also managed from this fund but is generally self-sustaining. A small amount of Real Estate Tax millage is proposed to be shifted from the General Fund to the Ambulance & Rescue Fund in 2026 to support the cost of providing emergency medical services to the community. Currently, the Penndel-Middletown Emergency Squad (PMES) is the only service provider in the area and is among a shrinking number of volunteer-supported providers in the region. This change will direct an additional $150,000 annually to PMES to support their operations. Bucks County has not reassessed properties since 1972. As a result, assessed values (taxable values) of properties have not changed during this time. Properties built or improved since this time have to have their assessed values artificially deflated by 17 times to align with the rest of the County. Bucks County’s failure to reassess properties induces both artificially high tax rates and a higher frequency of tax increases. Because the tax base does not change, taxpayers are susceptible to significant tax rate increases. Despite a steady pipeline of land development in recent years, the total combined assessed value of all properties in Middletown Township has decreased by 0.7% since 2007. While new development and redevelopment causes this number to increase, appeals by large properties petitioning for a lower tax liability has consistently offset any increases. For example, during this period of time, the combined parcels 34 -- 34 of 206 -- that comprise the Oxford Valley Mall have reduced in taxable value from $18,210,060 (2009) to $4,110,340 (2025), a 78% reduction, resulting in more than $500,000 in lost Real Estate Tax revenue during this period to Middletown Township, $200,000 to Bucks County, and more than $1,300,000 to Neshaminy School District. The below chart depicts the relatively unchanged total combined assessed value of all properties in the Township. In 2025, Middletown Township Real Estate Tax levy of 19.025 mills was the eleventh-highest among the 31 townships in Bucks County behind Northampton Township (32.50), Upper Southampton Township (27.66), Solebury Township (25.91), Warrington Township (25.79), Bristol (24.98), Lower Makefield (24.95), Warminster (24.06), Bensalem (23.00), and Doylestown (21.85). The proposed increase to 25.105 mills would place Middletown Township as having the fifth-highest Real Estate Tax levy in the County, assuming no other municipalities increased tax rates. A chart depicting the tax levies of all townships in Bucks County can be found in the “Revenues” section of the budget document. Reflecting the proposed tax changes, the General Fund is expected to generate $30.9 million in total revenue in 2026. 51.8% of this revenue would be derived from the Earned Income Tax ($16,000,000). The second largest source of General Fund revenue would be the Real Estate Tax at 11.9% ($3,680,000). The third largest source of revenue in the General Fund is the Public Safety category, representative of fees derived from permits and inspections, as well as reimbursements for police services. Public Safety comprises 8.8% ($2,722,200) of revenues in the General Fund. An update to the fee schedule driving revenues in this category is also proposed for 2026. 500,000,000 505,000,000 510,000,000 515,000,000 520,000,000 525,000,000 530,000,000 535,000,000 540,000,000 545,000,000 550,000,000 Combined Township Assessed Value by Year 35 -- 35 of 206 -- 2026 General Fund Revenues by Category Comparison of Similar Municipalities Comparing Middletown Township against similar communities provides valuable perspective when considering potential significant budgetary or operational changes. While every community has a unique tax base or level of service, comparing statistics on a per-resident basis demonstrates a true comparison across municipal boundaries. Several townships across Bucks and Montgomery Counties were identified as comparable communities based upon their population, proximity, level of service, and economic diversity as compared to Middletown Township. In Bucks County, Northampton, Bensalem, Warrington, Lower Makefield, Warminster, Bristol, and Falls Townships were identified in this comparison. In Montgomery County, Abington, Montgomery, Plymouth, Upper Merion, and Upper Moreland Townships were identified as comparable communities. The average household in Middletown Township has an assessed value of $29,410. At the current 19.025 mill Real Estate Tax levy, the average household pays $560 per year to Middletown Township. An increase to a 25.105 mill levy would increase a resident’s tax burden to $738, an increase of approximately $179 per year. The average Middletown Township resident pays approximately $323 per year in EIT at the current 0.5% rate. An increase to a 1.0% rate would effectively double tax liability to $646 per year per working taxpayer, an increase of approximately $323 per taxpayer per year. Real Estate… Per Capita Tax 0.4% Real Estate Transfer Tax 5.0% Earned Income Tax 51.8% Mercantile Tax 3.7% Local Services Tax 3.2% Amusement Tax 3.4% Cable Franchise Fees 2.5% Intergov't. Revenue 4.0% Public Safety 8.8% Parking Transaction 1.0% Fines & Miscellaneous 4.2% 36 -- 36 of 206 -- When combining both, residents would be looking at their combined Real Estate Tax and EIT bill increasing from $882 per year to $1,384 per year—an increase of $502 per year or 57%. As a comparison to other municipalities, neighboring Northampton Township pays significantly more per year at a combined tax bill of $1,711 per year. At the proposed rates, Middletown Township taxpayers would have a comparable tax liability to Warrington Township ($1,418), Upper Moreland Township ($1,327), Plymouth Township ($1,302), and Abington Township ($1,232). County Township Average Real Estate Tax Paid Average EIT Paid Total Real Estate + EIT Paid Bucks Middletown - PROPOSED $ 738 $ 646 $1,384 Bucks Middletown - CURRENT $ 560 $ 323 $ 882 Bucks Northampton $ 1,300 $ 411 $1,711 Bucks Bensalem $ 548 $ 573 $1,121 Bucks Warrington $ 985 $ 433 $1,418 Bucks Lower Makefield $ 1,033 $ 0 $1,033 Bucks Warminster $ 556 $ 293 $ 849 Bucks Bristol $ 500 $ 272 $ 772 Bucks Falls $ 198 $ 570 $ 768 Montgomery Abington $ 922 $ 310 $1,232 Montgomery Montgomery $ 491 $ 442 $ 933 Montgomery Plymouth $ 530 $ 772 $1,302 Montgomery Upper Merion $ 925 $ 0 $ 925 Montgomery Upper Moreland $ 1,014 $ 313 $1,327 Important to note, nearly every single one of these communities has a higher (adjusted) average real estate tax assessment than Middletown Township. Put more simply, each of these communities has a stronger overall tax base than Middletown Township. This becomes clearer when looking at the total (adjusted) assessed value per resident. This statistic captures the taxable value of residential and commercial properties as it compares to the population of the community. Despite having a robust and diverse local economy, Middletown’s tax base on a resident-by-resident basis slightly below average among these comparable communities. When translated into revenue, most municipalities generate more from their total Real Estate Tax levies as compared to Middletown. 37 -- 37 of 206 -- County Township Adjusted Avg. Residential Assessed Value* Total Adjusted Assessed Value Per Resident* Tax Rate Effective Tax Rate* Value of 1 Mill Total RE Tax Revenue Bucks Middletown - PROPOSED $501,735 $195,914 19.025 1.115 $ 528,714 $ 13,273,363 Bucks Middletown - CURRENT 501,735 195,914 25.105 1.472 528,714 10,058,782 Bucks Northampton 682,554 255,692 32.500 1.905 598,237 19,442,712 Bucks Bensalem 406,284 177,148 23.000 1.348 651,139 14,976,197 Bucks Warrington 651,436 253,095 25.790 1.512 380,414 9,810,872 Bucks Lower Makefield 706,386 284,598 24.950 1.462 553,514 13,810,173 Bucks Warminster 394,238 176,790 24.060 1.410 348,223 8,378,253 Bucks Bristol 341,200 135,903 24.980 1.464 432,493 10,803,674 Bucks Falls 375,781 167,251 8.970 0.526 340,346 3,052,901 Montgomery Abington 505,762 189,827 5.922 1.822 3,417,005 20,235,505 Montgomery Montgomery 542,692 273,598 2.940 0.905 2,177,165 6,400,866 Montgomery Plymouth 585,000 297,735 2.945 0.906 1,672,444 4,925,347 Montgomery Upper Merion 674,242 400,339 4.461 1.373 4,140,495 18,470,748 Montgomery Upper Moreland 450,746 191,116 7.309 1.000 1,535,753 11,224,816 *To compare Real Estate Taxes across counties, the Common Level Ratio is used to create an “apples-to-apples” comparison. More information about the Common Level Ratio and how it is utilized can be found in the “Revenues” section of the budget document. Because there is less variety among EIT rates, the amount of revenue is heavily influenced by the tax rate of the municipality. As shown, the municipalities with a 1.0% EIT rate generate more overall revenue as compared to municipalities with a 0.5% rate. County Township Municipal EIT Rate Total EIT Revenue Bucks Middletown - PROPOSED 1.0% 16,000,000 Bucks Middletown - CURRENT 0.5% 9,661,463 Bucks Northampton 0.5% 9,835,978 Bucks Bensalem 1.0% 21,559,170 Bucks Warrington 0.5% 6,659,782 Bucks Lower Makefield 0.0% - Bucks Warminster 0.5% 5,909,613 Bucks Bristol 0.5% 8,874,507 Bucks Falls 1.0% 11,877,935 Montgomery Abington 0.5% 10,879,421 Montgomery Montgomery 0.5% 6,863,379 Montgomery Plymouth 0.6% 8,454,855 Montgomery Upper Merion 0.0% - Montgomery Upper Moreland 0.5% 4,908,953 38 -- 38 of 206 -- In addition to comparing tax revenues between communities, levels of services were also compared. Without additional tax revenue, Middletown Township would be forced to reduce its overall workforce by nearly 20% to put forth a balanced budget. While this would effect the entire organization, public safety services such as Police, Fire, and Public Works would be most directly impacted as these areas are the most expensive to provide. County Township Population Total Employees Per 1,000 Residents* Police Per 1,000 Residents Public Works Per 1,000 Residents* Hour Per Week of Career Firefighting Services Township Road Miles Square Miles Bucks Middletown PROPOSED 46,040 2.80 1.32 0.59 60 138.6 19.3 Bucks Middletown W/O INCREASE 46,040 2.13 1.11 0.37 40 138.6 19.3 Bucks Northampton 39,915 3.48 1.08 0.75 168 162.9 26.0 Bucks Bensalem 62,707 3.05 1.71 0.33 50 142.7 21.0 Bucks Warrington 25,642 2.81 1.52 0.47 50 85.5 13.8 Bucks Lower Makefield 33,180 2.50 1.27 0.60 0 134.0 17.9 Bucks Warminster 33,603 2.50 1.34 0.27 40 110.8 10.2 Bucks Bristol 54,291 2.17 1.12 0.35 50 172.2 17.1 Bucks Falls 34,716 2.59 1.33 0.46 0 85.9 28.0 Montgomery Abington 58,502 3.54 1.61 0.75 0 173.4 15.5 Montgomery Montgomery 25,862 3.63 1.47 0.81 50 74.2 10.0 Montgomery Plymouth 18,256 4.88 2.74 0.99 0 49.1 8.5 Montgomery Upper Merion 33,613 4.25 2.20 0.45 168 83.8 17.0 Montgomery Upper Moreland 26,116 3.37 1.57 0.84 168 65.5 7.5 *In an effort to show truly comparable data, employees associated with service areas not provided directly by Middletown Township employees (i.e. trash service, sewer) were excluded from this comparison. In comparing staff sizes, Middletown Township currently has an average-sized staff on a per- resident basis as compared to most other communities. The reduction in force necessary to balance the budget would make Middletown Township the most undersized staff among comparable communities in nearly every category. Residents would also notice a significant downgrade in the level of service they receive. Not only would there be less investment in infrastructure, but there would be few Police patrolling streets, fewer Public Works staff plowing snow and maintaining roads, and fewer hours of coverage by Township-employed firefighters. Importantly, the amount of infrastructure cannot be reduced in the same way as staff can. There will still be 138.6 miles of roads, hundreds of miles of stormwater pipes, hundreds of ADA curb ramps, and thousands of inlets to maintain. 39 -- 39 of 206 -- Fund Balance Fund Balance is a net accumulation of revenues and expenses within a given fund. In the General Fund, this is commonly referred to as a “rainy day fund” as it can be utilized during unexpected times of revenue shortfalls, such as during an economic recession, or when expenses temporarily surge, like during a prolonged emergency. The Township’s fund balance policy calls for the fund balance of the General Fund to be approximately 25%, or three months’ worth, of annual expenses—50% higher than the Government Finance Officers Association (GFOA) recommendation of two months’ worth of annual expenses. Since implementing the Earned Income Tax (EIT) in 2014, the fund balance of the General Fund was rebuilt over the following several years, even with significant transfers to support the Capital Fund. As the cost of providing government services has increased, the Township no longer had the ability to invest in the Capital Fund and grow reserves as it once did. In recent years, the fund balance of the General Fund has been utilized to sustain operational expenses and offset the structural deficit. As of the end of 2025, the Township will have officially reached the minimum fund balance for the General Fund. The Township plans to invest additional tax revenue in infrastructure to begin to counteract the backlog in investment in recent years. As a result, General Fund expenses are budgeted to increase, as will the target/minimum fund balance for the General Fund. As additional EIT revenue stabilizes in future years, the Township will be positioned to begin rebuilding the fund balance toward targeted levels. $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 General Fund - Fund Balance by Year Fund Balance (FB) Target Minimum FB (3 mos. of Expenses) GFOA Minimum FB (2 mos. of Expenses) 40 -- 40 of 206 -- As of 2026, Middletown Township holds more than $57.4 million in fund balances across all accounts. While some of these funds are earmarked for specific purposes or carry restrictions based on their designated use, others are designed to accumulate over time to support larger initiatives or respond to needs as they arise. In 2026, surpluses in several funds will be used to support expanded infrastructure investment. Most notably, the fund balance of the Highway Aid Fund will be used to support additional road repaving operations. The table on the following page outlines each fund’s projected beginning and ending balances, along with the dollar and percentage changes. Further details on the budgetary impacts for each fund are provided in the individual budget sections later in this document. Fund Beginning Balance Ending Balance $ Change % Change General $ 6,931,482 $ 7,313,382 $ 381,900 5.5% Street Lighting 580,395 462,795 (117,600) -20.3% Fire Protection 601,936 1,052,436 450,500 74.8% Parks & Recreation 104,793 78,593 (26,200) -25.0% Ambulance & Rescue 1,010 2,410 1,400 138.6% Road Machinery 577,150 (181,550) (758,700) -131.5% Fire Hydrant 28,433 34,033 5,600 19.7% Fire Apparatus 861,443 3,171,043 2,309,600 268.1% Sanitation 846,052 1,065,152 219,100 25.9% Middletown Country Club 396,743 329,543 (67,200) -16.9% Farm Fund 396,856 412,456 15,600 3.9% Stormwater 639,000 306,100 (332,900) -52.1% Debt Service 533,763 560,063 26,300 4.9% Capital Reserve 1,986,224 624 (1,985,600) -99.9% Investment 40,976,306 40,561,306 (415,000) -1.0% Highway Aid 1,491,550 187,450 (1,304,100) -87.4% 41 -- 41 of 206 -- Budget Process and Calendar The budget process is an ongoing effort throughout the year, involving the Board of Supervisors, Budget Team, and Department Directors who closely monitor revenues and expenditures on a monthly basis in comparison to the budget. The formal development of the 2026 Proposed Budget commenced in July with the establishment of the Budget Team and departmental budget requests being submitted to the Township Manager, Assistant Township Manager, and Finance Director. A discussion about capital maintenance and improvement projects was held with the Board of Supervisors at a public workshop meeting in August. After a comprehensive assessment and substantial revisions in September and October, a draft budget was formulated and presented to the Board of Supervisors during three public Budget Workshops held on October 6th, 13th, and 20th. These meetings encompassed a review of the proposed budget and deliberations on long- term objectives and capital improvement planning. Extra efforts were made to engage the public in the budget process, including interactive engagement questions asked during each meeting for the public and Board of Supervisors to provide real-time feedback. Public participation in the budget process is not only welcomed but encouraged. The Second-Class Township Code mandates the Board of Supervisors to approve the annual budget by December 31st each year. Opportunities for providing input and engaging in discussions regarding the 2026 Budget are available during the Board of Supervisors meetings scheduled for November 17th and December 15th. An additional workshop meeting will also be held on Thursday, December 4th, for residents to engage in greater detail. Copies of the budget are available for inspection at the Municipal Center and through the Township website: www.middletownbucks.org/2026Budget. 42 -- 42 of 206 -- The proposed preparation and adoption schedule for the 2025 Budget is as follows: 43 -- 43 of 206 -- Conclusion The preparation of the proposed 2026 Budget reflects a remarkable team effort, made possible by the collaboration of many dedicated individuals from the Board of Supervisors, residents, and staff. The annual budget is not only a financial document but a significant policy statement that reflects the Board’s priorities and vision for Middletown Township. This document plays a vital role in driving daily decisions about the delivery of services to residents, workers, and visitors. The proposed 2026 budget addresses years of structural deficits across multiple funds and contemplates the most significant investment in public safety and infrastructure in the history of Middletown Township. It represents a commitment to achieving structural balance across all operating funds and position the Township to remain in strong financial position for years to come. Without the increased investment made possible by proposed increases to the EIT and Real Estate Tax, the Township will be forced to reduce its workforce and level of services by nearly 20% just to deliver a balanced budget in 2026. Township residents, employees, and the Board of Supervisors are all encouraged to read the remainder of the proposed 2026 Budget document in its entirety, as it contains a significant amount of history, context, assumptions, and plans that outlines where Middletown Township has been, and where Middletown Township plans to go in 2026. We are proud of the extensive and transparent process that created this document, including four public budget workshops that welcomed community and Board feedback. Residents are encouraged to participate in the remaining steps of the budget approval process on November 17, December 4, and December 15 as the Board of Supervisors takes the final steps in reviewing and adopting the 2026 Budget. Please reach out and engage with us about your questions and feedback about this document at any time: Eden Ratliff, Township Manager – eratliff@middletownbucks.org Nick Valla, Assistant Township Manager – nvalla@middletownbucks.org Laura Hucklebridge, Finance Director – lhucklebridge@middletownbucks.org 44 -- 44 of 206 -- 2026 BUDGET FUND OVERVIEW FUND 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years General 25,004,314 $ 25,113,801 $ 24,836,275 $ 24,654,199 $ 30,897,200 $ 6,060,925 24.4% Street Lighting 442,280 438,292 430,600 430,484 427,500 (3,100) -0.7% Fire Protection 858,974 1,948,459 1,878,600 1,685,992 2,981,000 1,102,400 58.7% Parks and Recreation 1,625,380 1,733,745 1,774,000 1,756,931 2,614,000 840,000 47.4% Ambulance and Rescue 230,915 231,736 233,300 231,808 388,000 154,700 66.3% Road Machinery 182,318 177,419 173,700 172,124 168,800 (4,900) -2.8% Fire Hydrant 72,208 71,295 72,550 72,731 72,800 250 0.3% Fire Apparatus 339,256 586,078 577,900 590,366 2,309,600 1,731,700 299.7% Sanitation 5,042,141 5,017,699 5,858,000 5,877,100 5,871,600 13,600 0.2% Middletown Country Club 50,565 54,354 51,000 55,710 52,800 1,800 3.5% Farm 120,039 122,269 87,200 91,200 99,600 12,400 14.2% Stormwater - - 2,539,427 1,605,000 2,498,000 (41,427) -1.6% Debt Service 2,850,658 2,871,956 2,845,500 2,841,970 2,847,000 1,500 0.1% Investment 1,966,981 1,740,440 701,000 921,338 975,000 274,000 39.1% Highway Aid 1,354,530 1,344,930 1,283,924 1,308,748 1,263,900 (20,024) -1.6% 40,140,559 $ 41,452,473 $ 43,342,976 $ 42,295,701 $ 53,466,800 $ 10,123,824 23.4% Capital Fund 8,917,090 $ 4,010,324 $ 1,655,813 $ 589,475 $ 3,146,500 $ 1,490,687 90.0% FUND 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years General 26,265,906 $ 26,229,929 $ 27,649,435 $ 27,037,961 $ 30,515,300 $ 2,865,865 10.4% Street Lighting 467,762 472,502 540,000 479,760 545,100 5,100 0.9% Fire Protection 968,211 1,786,514 2,015,550 1,836,871 2,530,500 514,950 25.5% Parks and Recreation 1,761,443 1,702,650 1,842,350 1,957,451 2,640,200 797,850 43.3% Ambulance and Rescue 232,270 247,737 233,000 228,600 386,600 153,600 65.9% Road Machinery 420,055 33,449 113,000 100,000 927,500 814,500 720.8% Fire Hydrant 62,250 61,997 64,000 65,000 67,200 3,200 5.0% Fire Apparatus - - - 654,257 - - 0.0% Sanitation 5,198,440 5,280,616 5,328,250 5,261,210 5,652,500 324,250 6.1% Middletown Country Club 32,917 32,917 35,000 33,000 145,000 110,000 314.3% Farm 15,763 23,198 52,968 16,040 99,500 46,532 87.8% Stormwater - - 2,530,000 966,000 2,830,900 300,900 11.9% Debt Service 2,824,067 2,821,318 2,819,600 2,818,360 2,820,700 1,100 0.0% Investment 2,045,218 2,441,253 47,500 43,140 1,390,000 1,342,500 2826.3% Highway Aid 699,611 1,606,595 1,907,300 1,310,599 2,568,000 660,700 34.6% 40,993,913 $ 42,740,675 $ 45,177,953 $ 42,808,249 $ 53,119,000 $ 7,941,047 17.6% Capital Fund 7,567,421 $ 5,323,199 $ 3,509,000 $ 2,521,155 $ 5,132,100 $ 1,623,100 46.3% Income/(Loss) from Operations (853,354) $ (1,288,202) $ (1,834,977) $ (512,548) $ 347,800 $ 2,182,777 -119.0% (Excluding Capital) REVENUE EXPENDITURES Fund Overview 45 -- 45 of 206 -- General Fund Fund Overview The General Fund, an appropriated governmental fund, is the largest Township fund. In nearly all governments, the General Fund is a flexible account where non-restricted revenues can be spent on general government expenditures. The General Fund covers nearly all aspects and needs of the Township that do not have their own fund or need supplementary funds. Most personnel costs and day-to-day operating expenditures are accounted for in the General Fund. 62.4% of the General Fund is spent on Police. The primary revenues of Middletown Township’s General Fund come from taxes, permits, charges for service and intergovernmental revenue. The Earned Income Tax (EIT) is the largest source of revenue in the General Fund. The EIT has grown as a result of increasing taxpayer wages. With a proposed rate increase to the EIT to 1.0% in 2026, the EIT will make up more than half of the General Fund’s revenues in a given year. In recent years, the General Fund has carried a structural deficit due to expenditures rising faster than revenues, resulting in an operating loss in excess of $1 million each year since 2023. Fortunately, a healthy fund balance has held off the need for increased revenues during this period. An increase to the EIT rate in 2026 is expected to significantly improve the long-term health of the General Fund. 46 -- 46 of 206 -- Revenue and Expenses Real Estate Transfer Tax revenues have declined because of a slow commercial real estate market, a stark contrast from record income received in 2021 and 2022. Sustained higher interest rates have resulted in a remarkable interest income again in 2025. Amusement Tax revenue has continued to trend downward since 2023. Permit and inspection revenues in 2025 were again carried largely by another strong year for residential permitting. Additional analysis and discussion of General Fund revenues is in the “Revenues” section of this document. The largest expense categories in the General Fund are Police (salaries, equipment, etc.), Employer-Paid Benefits (pension contributions and insurances), and Public Works (salaries, equipment, supplies). Administrative costs are also charged to the General Fund. Additional analysis and discussion of General Fund expenditures is in the “Expenditures” section of this document. New in 2026, Public Works salaries will be carried primarily by the General Fund as opposed to the Highway Aid Fund, increasing the Township’s capacity to support road paving operations. A transfer of $1,000,000 to the Capital Fund from the General Fund will be made in 2026 to support planned projects. Including transfers, the 2026 General Fund budget is $30,515,300. 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 General Fund Revenue vs. Expenses 2016 to Present Revenue Expenses 47 -- 47 of 206 -- Revenue Changes for 2026: • Real Estate Tax Millage Decrease 0.30 mills ($155,000) • Earned Income Tax increase to 1.0% $6,200,000 Operating Expense Changes for 2026: • Increase to the Volunteer Firefighter Tax Credit $35,000 • 0Software Training and Implementation $130,000 • Staffing – In-house Engineer and Technology support $282,000 o Includes wages and fringe benefits • Subdivision & Land Development (SALDO) & Zoning Code updates $150,000 Fund Balance Fund balance refers to the money remaining in a given fund that is carried forward from year to year. The Township’s fund balance policy calls for the fund balance of the General Fund to be approximately 25%, three months’ worth, of annual expenses. For Middletown Township, this would equate to about $7 million at 2026 budgeted expense levels. After being depleted some to support the operating budget in 2025, the General Fund has a 2026 beginning fund balance of $6,931,482. The ending 2026 fund balance is projected to be $7,313,382. Of the nearly $2.8 million that was budgeted to balance the 2025 budget, only about $2.4 million was needed, thanks in large part to conservative budgeting. $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 General Fund - Fund Balance by Year Fund Balance (FB) Target Minimum FB (3 mos. of Expenses) GFOA Minimum FB (2 mos. of Expenses) 48 -- 48 of 206 -- 2026 BUDGET GENERAL FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Real Property Taxes 3,868,993 $ 3,891,995 $ 3,930,000 $ 3,830,389 $ 3,680,000 $ (250,000) -6.4% Local Enabling Act Taxes 14,534,631 14,804,059 14,577,000 14,734,019 20,935,000 6,358,000 43.6% Business Licenses and Permits 995,275 948,949 920,000 901,290 870,700 (49,300) -5.4% Fines 101,519 116,466 104,000 102,565 107,000 3,000 2.9% Interest Earnings 1,003,960 863,264 606,000 703,800 654,000 48,000 7.9% Rents and Royalties 105,063 123,540 170,000 145,642 148,000 (22,000) -12.9% Federal Entitlements to Governmental Units - - - - - - 0.0% State Operating & Capital Grant 252,512 160,779 162,000 163,000 164,000 2,000 1.2% State Shared Revenue and Entitlements 814,327 929,064 932,975 1,035,216 1,086,000 153,025 16.4% Charges for Services 153,354 213,295 162,800 150,671 167,300 4,500 2.8% Public Safety 3,082,958 2,997,160 3,070,500 2,837,607 3,065,200 (5,300) -0.2% Contributions from Private Sources 35,000 40,000 1,000 50,000 20,000 19,000 1900.0% Other 56,722 25,230 - - - - 0.0% Total Operational Revenue 25,004,314 $ 25,113,801 $ 24,636,275 $ 24,654,199 $ 30,897,200 $ 6,260,925 25.4% Interfund Transfers - $ 40,116 $ 200,000 $ - $ - $ (200,000) -100.0% Total Revenue 25,004,314 $ 25,153,917 $ 24,836,275 $ 24,654,199 $ 30,897,200 $ 6,060,925 24.4% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Legislative Body 39,549 $ 39,859 $ 52,100 $ 49,960 $ 191,100 $ 139,000 266.8% Executive 667,052 848,946 865,850 1,001,012 985,200 119,350 13.8% Financial Administration 599,376 512,279 574,800 537,246 621,300 46,500 8.1% Tax Collection 242,661 238,425 252,000 607,401 291,900 39,900 15.8% Legal Services 198,534 271,166 260,000 395,000 660,000 400,000 153.8% Information Technology 569,552 650,006 674,850 622,360 1,025,000 350,150 51.9% Engineering 104,614 191,770 150,000 199,600 295,800 145,800 97.2% Building and Grounds 288,005 331,556 348,000 495,372 532,000 184,000 52.9% Police Services 12,616,919 13,694,180 14,380,000 13,770,512 15,022,000 642,000 4.5% Fire Protection Services 977,723 304,262 335,900 400,730 313,800 (22,100) -6.6% Emergency Management 310 - 1,000 168 7,000 6,000 600.0% Building and Zoning 926,898 1,167,388 1,241,300 1,163,233 1,376,400 135,100 10.9% Planning Commission - - 1,500 - 13,000 11,500 766.7% Zoning Hearing Board 112,279 111,662 115,255 121,050 129,800 14,545 12.6% School Grossing Guards 197,426 199,180 182,500 185,700 189,500 7,000 3.8% Public Works 1,667,399 1,660,210 1,811,100 1,496,440 1,992,300 181,200 10.0% Fleet Maintenance Services 493,554 476,278 550,160 461,420 604,200 54,040 9.8% Civil Celebrations - - - 400 - - 0.0% Other Miscellaneous 21,833 - - - - - 0.0% Employer Paid Benefits 4,158,080 4,553,392 4,926,120 4,730,357 4,790,000 (136,120) -2.8% Insurance 381,830 419,370 425,000 500,000 475,000 50,000 11.8% Total Operating Expenditures 24,263,594 $ 25,669,929 $ 27,147,435 $ 26,737,961 $ 29,515,300 $ 2,367,865 8.7% Interfund Transfers 2,000,000 $ 560,000 $ 500,000 $ 300,000 $ 1,000,000 $ 500,000 100.0% Bad Debt 2,312 - 2,000 - - (2,000) -100.0% Total Expenditures 26,265,906 $ 26,229,929 $ 27,649,435 $ 27,037,961 $ 30,515,300 $ 2,865,865 10.4% Income/(Loss) from Operations (1,261,592) $ (1,076,012) $ (2,813,160) $ (2,383,762) $ 381,900 $ 3,195,060 -113.6% Fund Balance - Beginning 11,652,848 $ 10,391,256 $ 9,315,244 $ 6,931,482 $ Fund Balance - Ending 10,391,256 $ 9,315,244 $ 6,931,482 $ 7,313,382 $ REVENUE EXPENDITURES Fund 01 - General Fund 49 -- 49 of 206 -- 2026 BUDGET GENERAL FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 01-301-100 Real Estate Taxes - Current YR 3,834,261 $ 3,842,423 $ 3,880,000 $ 3,792,489 $ 3,640,000 $ (240,000) -6.2% 01-301-300 Real Estate Taxes - Delinquent 34,732 49,572 50,000 37,900 40,000 (10,000) -20.0% 3,868,993 $ 3,891,995 $ 3,930,000 $ 3,830,389 $ 3,680,000 $ (250,000) -6.4% 01-310-001 Per Capita Taxes - Current YR 118,928 $ 120,278 $ 122,000 $ 119,792 $ 120,000 $ (2,000) -1.6% 01-310-003 Per Capita Taxes - Delinquent 18,955 18,125 15,000 18,000 18,000 3,000 20.0% 01-310-100 Real Estate Transfer Tax 1,180,500 1,658,436 1,400,000 1,300,151 1,550,000 150,000 10.7% 01-310-210 Earned Income Taxes 9,836,136 9,843,603 9,600,000 9,958,590 16,000,000 6,400,000 66.7% 01-310-310 Mercantile Taxes 1,128,287 992,682 1,175,000 1,215,900 1,150,000 (25,000) -2.1% 01-310-500 Local Services Tax 1,043,579 986,325 1,020,000 1,067,305 1,000,000 (20,000) -2.0% 01-310-600 Amusement Tax 1,165,981 1,137,710 1,200,000 1,002,961 1,050,000 (150,000) -12.5% 01-310-710 Mechanical Device Tax 42,265 46,900 45,000 51,320 47,000 2,000 4.4% 14,534,631 $ 14,804,059 $ 14,577,000 $ 14,734,019 $ 20,935,000 $ 6,358,000 43.6% 01-319-100 Penalties and Interest - R.E. Taxes 5,841 $ 11,698 $ 6,000 $ 3,800 $ 4,000 $ (2,000) -33.3% 5,841 $ 11,698 $ 6,000 $ 3,800 $ 4,000 $ (2,000) -33.3% 01-321-340 Towing Licenses 3,120 $ 3,210 $ 4,000 $ 3,200 $ 3,400 $ (600) -15.0% 01-321-400 Beverage License Revenue - 5,000 5,000 - - (5,000) -100.0% 01-321-600 Contractors License 40,860 45,240 40,000 44,000 52,500 12,500 31.3% 01-321-610 Solicitor Permits 4,000 6,900 5,000 4,500 4,800 (200) -4.0% 01-321-800 Cable Television Franchise Fee 901,087 845,724 820,000 809,590 766,000 (54,000) -6.6% 01-321-900 Sign Registration 33,920 34,865 34,000 34,000 34,000 - 0.0% 01-322-820 Road Encroachment Permits 12,288 8,010 12,000 6,000 10,000 (2,000) -16.7% 995,275 $ 948,949 $ 920,000 $ 901,290 $ 870,700 $ (49,300) -5.4% 01-331-110 Vehicle Code Violations 60,077 $ 59,934 $ 60,000 $ 59,219 $ 59,000 $ (1,000) -1.7% 01-331-130 State Police Fines 39,864 42,250 43,000 37,890 40,000 (3,000) -7.0% 01-331-140 Parking Violation Fines 165 4,410 500 4,160 4,000 3,500 700.0% 01-331-300 Other Fines 1,413 9,872 500 1,296 4,000 3,500 700.0% 101,519 $ 116,466 $ 104,000 $ 102,565 $ 107,000 $ 3,000 2.9% 01-341-100 Interest Income 998,119 $ 851,566 $ 600,000 $ 700,000 $ 650,000 $ 50,000 8.3% 998,119 $ 851,566 $ 600,000 $ 700,000 $ 650,000 $ 50,000 8.3% 01-342-200 Rent 105,063 $ 123,540 $ 170,000 $ 145,642 $ 148,000 $ (22,000) -12.9% 105,063 $ 123,540 $ 170,000 $ 145,642 $ 148,000 $ (22,000) -12.9% 01-352-053 Federal Ent. to Governmental Units - $ - $ - $ - $ - $ - 0.0% - $ - $ - $ - $ - $ - 0.0% 01-354-010 General Government 95,072 $ - $ - $ - $ - $ - 0.0% 01-354-150 Recycling/Act101 157,440 160,779 162,000 163,000 164,000 2,000 1.2% 252,512 $ 160,779 $ 162,000 $ 163,000 $ 164,000 $ 2,000 1.2% 01-355-005 Pension System State Aid 786,765 $ 899,692 $ 902,975 $ 1,006,516 $ 1,057,000 $ 154,025 17.1% 01-355-010 Public Utility Realty Taxes 19,762 20,372 22,000 20,600 21,000 (1,000) -4.5% 01-355-040 Beverage License 7,800 9,000 8,000 8,100 8,000 - 0.0% 814,327 $ 929,064 $ 932,975 $ 1,035,216 $ 1,086,000 $ 153,025 16.4% REAL PROPERTY TAXES LOCAL TAX ENABLING ACT 511 TAXES PENALTIES AND INTEREST REVENUE BUSINESS LICENSES & PERMITS STATE SHARED REVENUE AND ENTITLEMENTS FINES INTEREST EARNINGS RENTS AND ROYALTIES FEDERAL SHARED REVENUE STATE CAPITAL AND OPERATING GRANTS Fund 01 - General Fund 50 -- 50 of 206 -- 2026 BUDGET GENERAL FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 01-361-310 Land Development Fees 19,900 $ 42,400 $ 20,000 $ 33,630 $ 20,000 $ - 0.0% 01-361-340 Zoning Hearing Board Fees 29,700 33,950 30,000 36,710 50,000 20,000 66.7% 01-361-400 Plan Review Fees 60,438 82,578 60,000 46,889 50,400 (9,600) -16.0% 01-361-600 Electric Vehicle Charging Station Fee - 24,670 30,000 18,132 40,000 10,000 33.3% 01-361-800 Other Services 43,316 29,697 22,800 15,310 6,900 (15,900) -69.7% 153,354 $ 213,295 $ 162,800 $ 150,671 $ 167,300 $ 4,500 2.8% 01-362-100 Special Police Services 372,152 $ 556,231 $ 500,000 $ 430,000 $ 500,000 $ - 0.0% 01-362-120 Livescan Reimbursement 34,316 48,211 63,000 75,326 41,000 (22,000) -34.9% 01-362-130 Police Reports 10,605 10,527 11,000 7,020 10,600 (400) -3.6% 01-362-140 Crossing Guard Reimbursement 123,878 103,231 100,000 105,000 100,000 - 0.0% 01-362-200 Fire Protection Permits 193,447 144,843 160,000 233,412 208,000 48,000 30.0% 01-362-210 Fire Protection Inspections 362,529 366,868 400,000 397,756 400,000 - 0.0% 01-362-220 Fire Reports 300 1,175 500 675 600 100 20.0% 01-362-400 Application Permits - - - 49,070 50,000 50,000 0.0% 01-362-410 Building Permits 1,102,943 889,788 1,000,000 532,631 750,000 (250,000) -25.0% 01-362-420 Electrical Permits 229,508 210,838 215,000 285,966 284,500 69,500 32.3% 01-362-430 Plumbing Permits 118,005 103,395 110,000 183,470 150,000 40,000 36.4% 01-362-470 Zoning Permits 55,530 39,290 40,000 48,101 45,000 5,000 12.5% 01-362-480 Other Services 13,939 11,274 10,000 16,120 12,200 2,200 22.0% 01-362-490 Inspection of Rental Unit 172,975 172,325 180,000 180,930 175,000 (5,000) -2.8% 01-363-200 Parking Transaction Fee 292,534 317,592 280,000 275,018 300,000 20,000 7.1% 01-380-100 Miscellaneous Revenue 297 21,572 1,000 17,112 38,300 37,300 3730.0% 3,082,958 $ 2,997,160 $ 3,070,500 $ 2,837,607 $ 3,065,200 $ (5,300) -0.2% 01-387-100 Contributions and Donations 35,000 $ 40,000 $ 1,000 $ 50,000 $ 20,000 $ 19,000 1900.0% 35,000 $ 40,000 $ 1,000 $ 50,000 $ 20,000 $ 19,000 1900.0% 01-391-100 Sales of General Fixed Assets - $ 905 $ - $ - $ - $ - 0.0% 01-395-000 Refund of Prior Year Expenditures 56,722 24,325 - - - - 0.0% 56,722 $ 25,230 $ - $ - $ - $ - 0.0% 25,004,314 $ 25,113,801 $ 24,642,275 $ 24,654,199 $ 30,901,200 $ 6,258,925 25.4% 01-392-012 Transfer from Stormwater Fund - $ - $ 200,000 $ - $ - $ (200,000) -100.0% 01-392-029 Transfer from Police Forefeiture Fund - 40,116 - - - - 0.0% - $ 40,116 $ 200,000 $ - $ - $ (200,000) -100.0% 25,004,314 $ 25,153,917 $ 24,842,275 $ 24,654,199 $ 30,901,200 $ 6,058,925 24.4% INTERFUND TRANSFERS TOTAL REVENUE WITH TRANSFERS TOTAL OPERATIONAL REVENUE CHARGES FOR SERVICES REVENUE PUBLIC SAFETY CONTRIBUTIONS FROM PRIVATE SOURCES OTHER Fund 01 - General Fund 51 -- 51 of 206 -- 2026 BUDGET GENERAL FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 01-400-105 Salaries and Wages 20,000 $ 20,238 $ 20,000 $ 18,000 $ 20,000 $ - 0.0% 01-400-192 FICA/Medicare 1,530 1,530 2,000 1,400 1,500 (500) -25.0% 01-400-210 Office Supplies - 60 100 600 - (100) -100.0% 01-400-310 Professional Services - - - - 140,000 140,000 0.0% 01-400-340 Advertising & Printing 5,565 7,220 12,000 14,495 10,000 (2,000) -16.7% 01-400-420 Subscriptions & Memberships 5,716 10 3,000 3,000 3,000 - 0.0% 01-400-450 Contracted Services 4,813 9,435 12,000 10,095 5,100 (6,900) -57.5% 01-400-460 Meetings 1,925 1,366 3,000 2,370 2,500 (500) -16.7% 01-400-461 Conferences & Trainings - - - - 9,000 9,000 0.0% 39,549 $ 39,859 $ 52,100 $ 49,960 $ 191,100 $ 139,000 266.8% 01-401-112 Salaries and Wages 462,122 $ 584,884 $ 585,000 $ 690,000 $ 709,000 $ 124,000 21.2% 01-401-180 Overtime Salaries 177 1,660 5,000 3,000 8,000 3,000 60.0% 01-401-192 FICA/Medicare 30,775 39,762 46,000 53,015 54,900 8,900 19.3% 01-401-196 Medical Insurance 106,985 154,939 149,000 160,000 125,000 (24,000) -16.1% 01-401-198 Disability Insurance 2,013 2,336 3,000 3,265 3,000 - 0.0% 01-401-199 Group Life Insurance 548 775 1,000 810 1,000 - 0.0% 01-401-210 Office Supplies 5,314 4,816 5,000 5,000 5,000 - 0.0% 01-401-215 Postage 12,261 4,091 11,000 10,175 11,000 - 0.0% 01-401-220 Operating Supplies 1,614 1,072 4,000 1,375 4,000 - 0.0% 01-401-320 Communications 4,263 6,733 5,000 6,240 6,900 1,900 38.0% 01-401-340 Advertising and Printing 2,404 5,596 5,000 1,500 2,000 (3,000) -60.0% 01-401-374 Equipment Maintenance 4,181 4,558 7,500 4,615 5,000 (2,500) -33.3% 01-401-384 Equipment Leasing 8,847 8,847 8,850 8,625 8,900 50 0.6% 01-401-420 Subscriptions and Memberships 15,645 7,246 16,000 15,770 9,000 (7,000) -43.8% 01-401-450 Contracted Services 185 9,669 5,000 27,155 5,000 - 0.0% 01-401-460 Meetings 9,718 11,962 9,500 10,467 6,500 (3,000) -31.6% 01-401-461 Conferences & Trainings - - - - 21,000 21,000 0.0% 667,052 $ 848,946 $ 865,850 $ 1,001,012 $ 985,200 $ 119,350 13.8% 01-402-112 Salaries and Wages 408,243 $ 346,383 $ 373,000 $ 357,520 $ 399,000 $ 26,000 7.0% 01-402-180 Overtime Salaries 1,575 902 5,000 - - (5,000) -100.0% 01-402-192 FICA/Medicare 33,743 27,563 29,000 27,580 30,500 1,500 5.2% 01-402-196 Medical Insurance 95,192 79,430 100,000 96,070 112,000 12,000 12.0% 01-402-198 Disability Insurance 2,415 1,754 2,000 2,060 2,100 100 5.0% 01-402-199 Group Life Insurance 871 648 1,000 450 1,000 - 0.0% 01-402-210 Office Supplies 2,245 1,926 1,500 2,490 2,300 800 53.3% 01-402-220 Operating Supplies 287 284 500 - - (500) -100.0% 01-402-310 Professional Services 35,975 32,775 40,000 32,375 35,000 (5,000) -12.5% 01-402-320 Communications 2,400 1,700 2,500 1,800 2,400 (100) -4.0% 01-402-390 Bank Service Charges/Fees 9,296 9,721 10,000 9,661 25,000 15,000 150.0% 01-402-420 Subscriptions and Memberships 1,395 1,177 3,000 770 4,000 1,000 33.3% 01-402-450 Contracted Services - 225 500 - - (500) -100.0% 01-402-460 Trainings and Meetings 5,739 7,791 6,800 6,470 8,000 1,200 17.6% 599,376 $ 512,279 $ 574,800 $ 537,246 $ 621,300 $ 46,500 8.1% 01-403-105 Salaries and Wages 56,250 $ 56,559 $ 57,000 $ 57,000 $ 57,000 $ - 0.0% 01-403-160 Commission 166,791 162,607 168,000 159,000 168,000 - 0.0% 01-403-192 FICA/Medicare 4,469 4,303 5,000 5,000 4,400 (600) -12.0% 01-403-220 Operating Supplies 7,133 7,149 14,000 7,120 7,500 (6,500) -46.4% 01-403-490 Refund on Taxes 8,018 7,807 8,000 367,000 8,000 - 0.0% 01-403-491 Volunteer Tax Credits - - - 12,281 47,000 47,000 0.0% 242,661 $ 238,425 $ 252,000 $ 607,401 $ 291,900 $ 39,900 15.8% 01-404-301 General Legal Services 176,302 $ 158,010 $ 160,000 $ 95,000 $ 160,000 $ - 0.0% 01-404-314 Special Legal Services 22,232 113,156 100,000 300,000 500,000 400,000 400.0% 198,534 $ 271,166 $ 260,000 $ 395,000 $ 660,000 $ 400,000 153.8% EXPENDITURES LEGISLATIVE BODY EXECUTIVE FINANCIAL ADMINISTRATION TAX COLLECTION LEGAL SERVICES Fund 01 - General Fund 52 -- 52 of 206 -- 2026 BUDGET GENERAL FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 01-407-112 Salaries and Wages 103,812 $ 154,400 $ 160,000 $ 160,000 $ 274,000 $ 114,000 71.3% 01-407-180 Overtime Salaries 28,934 - - - - - 0.0% 01-407-192 FICA/Medicare 10,382 11,569 13,000 13,000 21,000 8,000 61.5% 01-407-196 Medical Insurance 27,686 24,471 27,500 23,350 44,000 16,500 60.0% 01-407-198 Disability Insurance 563 508 1,000 410 400 (600) -60.0% 01-407-199 Group Life Insurance 174 167 500 110 100 (400) -80.0% 01-407-210 Office Supplies 1,328 192 400 130 500 100 25.0% 01-407-260 Minor Equipment 42,941 39,687 30,000 23,360 25,000 (5,000) -16.7% 01-407-318 Software License Fees 239,419 332,297 334,450 310,000 450,000 115,550 34.5% 01-407-320 Communications 25,656 27,393 35,000 35,000 30,000 (5,000) -14.3% 01-407-374 Equipment Maintenance 68 - - - 30,000 30,000 0.0% 01-407-450 Contracted Services 86,757 57,250 70,000 55,000 68,000 (2,000) -2.9% 01-407-460 Trainings and Meetings 1,832 2,072 3,000 2,000 82,000 79,000 2633.3% 569,552 $ 650,006 $ 674,850 $ 622,360 $ 1,025,000 $ 350,150 51.9% 01-408-112 Salaries and Wages - $ - $ - $ - $ 110,000 $ 110,000 0.0% 01-408-192 FICA/Medicare - - - - 8,000 8,000 0.0% 01-408-196 Medical Insurance - - - - 32,000 32,000 0.0% 01-408-198 Disability Insurance - - - - 400 400 0.0% 01-408-199 Group Life Insurance - - - - 400 400 0.0% 01-408-313 General Engineering 73,627 $ 141,641 $ 100,000 $ 113,500 $ 100,000 $ - 0.0% 01-408-317 Traffic Engineering 30,987 50,129 50,000 86,100 45,000 (5,000) -10.0% 104,614 $ 191,770 $ 150,000 $ 199,600 $ 295,800 $ 145,800 97.2% 01-409-220 Operating Supplies 23,996 $ 19,443 $ 18,000 $ 40,000 $ 25,000 $ 7,000 38.9% 01-409-236 Building Supplies 4,379 3,867 5,000 9,000 7,000 2,000 40.0% 01-409-260 Minor Equipment - - - - - - 0.0% 01-409-320 Communications - - - - - - 0.0% 01-409-360 Utilities 121,121 190,646 210,000 255,000 280,000 70,000 33.3% 01-409-370 Repairs and Maintenance - - - - 100,000 100,000 0.0% 01-409-450 Contracted Services 138,509 117,600 115,000 191,372 120,000 5,000 4.3% 288,005 $ 331,556 $ 348,000 $ 495,372 $ 532,000 $ 184,000 52.9% 01-410-112 Salaries and Wages 7,810,260 $ 8,347,327 $ 9,112,000 $ 8,301,707 $ 9,414,000 $ 302,000 3.3% 01-410-149 Holiday Pay 403,184 429,445 461,000 447,000 487,000 26,000 5.6% 01-410-180 Overtime Salaries 1,358,183 1,805,692 1,475,000 1,871,000 1,700,000 225,000 15.3% 01-410-181 Court Overtime Pay 145,035 8,853 - - - - 0.0% 01-410-182 Shift Differential 95,017 113,469 114,000 111,170 114,000 - 0.0% 01-410-186 Clothing Allowance 45,319 42,330 50,000 45,000 52,500 2,500 5.0% 01-410-192 FICA/Medicare 177,784 189,759 204,000 154,075 198,000 (6,000) -2.9% 01-410-196 Medical Insurance 1,987,984 2,149,522 2,429,000 2,219,420 2,369,000 (60,000) -2.5% 01-410-198 Disability Insurance 22,716 17,179 17,000 20,620 21,700 4,700 27.6% 01-410-199 Group Life Insurance 10,366 9,654 13,000 6,240 11,000 (2,000) -15.4% 01-410-210 Office Supplies 9,523 7,771 10,000 8,030 8,000 (2,000) -20.0% 01-410-215 Postage 3,283 2,179 4,000 2,860 3,000 (1,000) -25.0% 01-410-220 Operating Supplies 62,122 68,742 62,000 60,000 63,000 1,000 1.6% 01-410-221 K9 29,853 10,254 27,500 20,460 25,000 (2,500) -9.1% 01-410-238 Clothing and Uniforms 89,806 60,765 68,000 75,000 70,000 2,000 2.9% 01-410-260 Minor Equipment 63,844 55,021 50,000 37,000 70,500 20,500 41.0% 01-410-310 Professional Services 19,350 12,948 20,000 15,770 20,000 - 0.0% 01-410-320 Communications 53,817 68,579 54,000 52,000 54,000 - 0.0% 01-410-340 Advertising and Printing 1,195 4,385 5,500 2,000 5,500 - 0.0% 01-410-374 Equipment Maintenance 2,491 3,300 5,000 3,500 3,300 (1,700) -34.0% 01-410-384 Equipment Leasing 3,974 3,974 4,000 3,970 4,000 - 0.0% 01-410-420 Subscriptions and Memberships 12,913 11,473 15,000 12,230 15,000 - 0.0% 01-410-450 Contracted Services 139,067 100,165 100,000 91,460 90,000 (10,000) -10.0% 01-410-451 Co-Responder - 61,229 5,000 85,000 105,000 100,000 2000.0% 01-410-460 Trainings and Meetings 69,833 110,165 75,000 125,000 118,500 43,500 58.0% 12,616,919 $ 13,694,180 $ 14,380,000 $ 13,770,512 $ 15,022,000 $ 642,000 4.5% EXPENDITURES POLICE SERVICES INFORMATION TECHNOLOGY ENGINEERING BUILDINGS AND GROUNDS Fund 01 - General Fund 53 -- 53 of 206 -- 2026 BUDGET GENERAL FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 01-411-112 Salaries and Wages 607,237 $ 167,383 $ 210,000 $ 248,660 $ 182,000 $ (28,000) -13.3% 01-411-149 Holiday Pay - - 8,000 6,000 6,000 (2,000) -25.0% 01-411-180 Overtime Salaries 79,533 39,200 20,000 25,600 25,000 5,000 25.0% 01-411-192 FICA/Medicare 56,248 15,716 20,000 20,950 16,300 (3,700) -18.5% 01-411-196 Medical Insurance 180,586 63,213 55,000 75,000 62,000 7,000 12.7% 01-411-198 Disability Insurance 3,953 1,413 1,000 3,340 1,500 500 50.0% 01-411-199 Group Life Insurance 4,020 1,681 2,000 3,020 2,000 - 0.0% 01-411-210 Office Supplies 673 886 1,250 1,280 1,000 (250) -20.0% 01-411-220 Operating Supplies 3,459 542 2,250 1,310 2,500 250 11.1% 01-411-238 Clothing and Uniforms 5,500 2,169 5,000 4,240 800 (4,200) -84.0% 01-411-260 Minor Equipment 8,150 123 1,250 50 500 (750) -60.0% 01-411-320 Communications 9,263 2,178 2,000 1,830 1,500 (500) -25.0% 01-411-340 Advertising and Printing 655 1,607 250 900 1,000 750 300.0% 01-411-374 Equipment Maintenance 3,726 1,492 2,750 - 3,300 550 20.0% 01-411-420 Subscriptions and Memberships 946 774 650 1,020 900 250 38.5% 01-411-450 Contracted Services 11,555 2,156 2,000 1,340 1,000 (1,000) -50.0% 01-411-460 Training and Meetings 2,219 3,729 2,500 6,190 6,500 4,000 160.0% 977,723 $ 304,262 $ 335,900 $ 400,730 $ 313,800 $ (22,100) -6.6% 01-412-210 Office Supplies - $ - $ - $ - $ - $ - 0.0% 01-412-220 Operating Supplies - - - - 6,000 6,000 0.0% 01-412-420 Subscriptions and Memberships 75 - - 168 - - 0.0% 01-412-450 Contracted Services - - - - - - 0.0% 01-412-460 Trainings and Meetings 235 - 1,000 - 1,000 - 0.0% 310 $ - $ 1,000 $ 168 $ 7,000 $ 6,000 600.0% 01-413-112 Salaries and Wages 435,254 $ 585,033 $ 658,000 $ 600,000 $ 690,000 $ 32,000 4.9% 01-413-180 Overtime Salaries 1,550 240 5,000 1,120 8,000 3,000 60.0% 01-413-192 FICA/Medicare 35,984 47,434 50,000 45,993 53,400 3,400 6.8% 01-413-196 Medical Insurance 189,254 198,680 252,000 204,370 194,000 (58,000) -23.0% 01-413-198 Disability Insurance 3,455 3,242 4,000 3,470 3,700 (300) -7.5% 01-413-199 Group Life Insurance 1,434 1,404 2,000 900 1,000 (1,000) -50.0% 01-413-210 Office Supplies 3,538 2,813 4,000 2,230 3,000 (1,000) -25.0% 01-413-238 Clothing and Uniforms 297 - 600 1,440 1,800 1,200 200.0% 01-413-260 Minor Equipment - 674 700 - - (700) -100.0% 01-413-320 Communications 3,887 4,470 5,500 4,030 5,400 (100) -1.8% 01-413-340 Advertising and Printing 1,603 2,632 2,000 1,700 2,000 - 0.0% 01-413-374 Equipment Maintenance 1,836 2,239 2,000 2,850 2,000 - 0.0% 01-413-384 Equipment Leasing 3,069 3,069 3,500 3,070 3,100 (400) -11.4% 01-413-420 Subscriptions and Memberships 991 1,014 2,000 1,440 2,000 - 0.0% 01-413-450 Contracted Services 240,344 255,356 240,000 285,000 400,000 160,000 66.7% 01-413-460 Training and Meetings 4,402 5,809 5,000 4,050 5,000 - 0.0% 01-413-490 Code Enforcement Expenses - 53,279 5,000 1,570 2,000 (3,000) -60.0% 926,898 $ 1,167,388 $ 1,241,300 $ 1,163,233 $ 1,376,400 $ 135,100 10.9% 01-414-112 Salaries and Wages - $ - $ 1,000 $ - $ 1,000 $ - 0.0% 01-414-192 FICA/Medicare - - 500 - - (500) -100.0% 01-414-450 Contracted Services - - - - 12,000 12,000 0.0% - $ - $ 1,500 $ - $ 13,000 $ 11,500 766.7% EXPENDITURES FIRE PROTECTION SERVICES EMERGENCY MANAGEMENT BUILDING & ZONING PLANNING COMMISSION Fund 01 - General Fund 54 -- 54 of 206 -- 2026 BUDGET GENERAL FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 01-417-112 Salaries and Wages 6,000 $ 6,986 $ 7,200 $ 7,200 $ 7,200 $ - 0.0% 01-417-192 FICA/Medicare 459 528 555 550 600 45 8.1% 01-417-215 Postage - - - - 3,000 3,000 0.0% 01-417-310 Professional Services 68,401 73,091 70,000 75,000 75,000 5,000 7.1% 01-417-340 Advertising and Printing 24,098 20,345 25,000 28,000 30,000 5,000 20.0% 01-417-450 Contracted Services 13,321 10,712 12,500 10,300 14,000 1,500 12.0% 112,279 $ 111,662 $ 115,255 $ 121,050 $ 129,800 $ 14,545 12.6% 01-418-112 Salaries and Wages 182,744 $ 184,506 $ 168,000 $ 172,100 $ 175,000 $ 7,000 4.2% 01-418-192 FICA/Medicare 14,329 14,038 13,000 13,170 13,400 400 3.1% 01-418-199 Group Life Insurance 87 144 500 100 100 (400) -80.0% 01-418-220 Operating Supplies 176 (92) 500 330 500 - 0.0% 01-418-238 Clothing and Uniforms 90 584 500 - 500 - 0.0% 197,426 $ 199,180 $ 182,500 $ 185,700 $ 189,500 $ 7,000 3.8% 01-430-112 Salaries and Wages 847,498 $ 851,626 $ 967,000 $ 712,330 $ 975,000 $ 8,000 0.8% 01-430-180 Overtime Salaries 72,365 40,135 30,000 34,180 88,000 58,000 193.3% 01-430-186 Clothing Allowance - - - - 16,800 16,800 0.0% 01-430-192 FICA/Medicare 76,396 69,959 94,000 58,220 81,300 (12,700) -13.5% 01-430-196 Medical Insurance 554,588 579,405 582,000 580,000 632,000 50,000 8.6% 01-430-198 Disability Insurance 11,929 10,824 11,000 12,350 13,000 2,000 18.2% 01-430-199 Group Life Insurance 3,869 3,564 5,000 2,380 2,500 (2,500) -50.0% 01-430-210 Office Supplies 911 1,569 1,000 680 1,000 - 0.0% 01-430-220 Operating Supplies 22,827 18,332 30,000 16,340 78,000 48,000 160.0% 01-430-238 Clothing and Uniforms 12,142 12,093 16,800 16,000 - (16,800) -100.0% 01-430-260 Minor Equipment 7,223 7,705 9,000 3,000 6,200 (2,800) -31.1% 01-430-320 Communications 22,237 24,498 20,000 20,000 21,000 1,000 5.0% 01-430-340 Advertising and Printing 144 71 300 - - (300) -100.0% 01-430-374 Equipment Maintenance 2,277 2,286 7,500 4,670 6,000 (1,500) -20.0% 01-430-420 Subscriptions and Memberships 1,855 2,182 2,500 3,290 3,500 1,000 40.0% 01-430-450 Contracted Services 29,639 34,646 30,000 32,000 53,000 23,000 76.7% 01-430-460 Trainings and Meetings 1,499 1,315 5,000 1,000 15,000 10,000 200.0% 1,667,399 $ 1,660,210 $ 1,811,100 $ 1,496,440 $ 1,992,300 $ 181,200 10.0% 01-437-112 Salaries and Wages 92,276 $ 92,938 $ 98,000 $ 89,190 $ 205,000 $ 107,000 109.2% 01-437-180 Overtime Salaries - - - - 5,000 5,000 0.0% 01-437-192 FICA/Medicare 7,534 7,318 8,000 7,160 16,100 8,100 101.3% 01-437-220 Operating Supplies 4,804 5,098 6,000 2,920 5,000 (1,000) -16.7% 01-437-231 Gasoline 163,390 188,686 185,000 150,000 180,000 (5,000) -2.7% 01-437-232 Diesel 43,940 37,752 75,000 40,000 40,000 (35,000) -46.7% 01-437-233 Electric Vehicle Charging - 53 100 50 100 - 0.0% 01-437-235 Oils and Lubricants 3,421 - 4,000 4,500 5,000 1,000 25.0% 01-437-251 Vehicle Parts (50) - 5,000 5,000 - (5,000) -100.0% 01-437-254 Police Services 82,983 56,079 60,000 83,670 75,000 15,000 25.0% 01-437-255 Fire Marshal 36,261 44,934 45,000 27,420 15,000 (30,000) -66.7% 01-437-256 Building and Zoning 610 935 2,000 1,120 2,000 - 0.0% 01-437-257 Public Works 8,310 10,301 7,000 14,100 12,000 5,000 71.4% 01-437-260 Minor Equipment 3,158 3,823 5,000 1,730 4,000 (1,000) -20.0% 01-437-450 Contracted Services 46,917 28,361 50,060 34,560 40,000 (10,060) -20.1% 493,554 $ 476,278 $ 550,160 $ 461,420 $ 604,200 $ 54,040 9.8% 01-457-490 Township Sponsored Events - $ - $ - $ 400 $ - $ - 0.0% - $ - $ - $ 400 $ - $ - 0.0% 01-471-000 Debt Principal 17,849 $ - $ - $ - $ - $ - 0.0% 01-472-000 Debt Interest 960 - - - - - 0.0% 01-482-907 Other Expenditures 3,024 - - - - - 0.0% 21,833 $ - $ - $ - $ - $ - 0.0% EXPENDITURES OTHER MISCELLANEOUS CIVIL CELEBRATIONS ZONING HEARING BOARD SCHOOL CROSSING GUARDS PUBLIC WORKS FLEET MAINTENANCE SERVICES Fund 01 - General Fund 55 -- 55 of 206 -- 2026 BUDGET GENERAL FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 01-483-191 Police - Post Retirement Medical 249,358 $ 282,559 $ 400,000 $ 394,000 $ 442,000 $ 42,000 10.5% 01-483-192 Police - Retirement Costs 47,866 139,495 128,700 - 50,000 (78,700) -61.1% 01-483-194 Unemployment Compensation - - 1,000 - - (1,000) -100.0% 01-483-195 Workers' Compensation 371,595 450,769 532,000 495,000 548,700 16,700 3.1% 01-483-197 Police Pension Plan 2,996,190 3,188,076 3,370,716 3,372,653 3,306,700 (64,016) -1.9% 01-483-198 Non-Uniformed Pension Plan 463,917 485,998 428,704 428,704 397,600 (31,104) -7.3% 01-483-199 Educational Incentive Benefits 36,332 41,368 60,000 40,000 45,000 (15,000) -25.0% 01-483-460 Training and Meetings (7,178) (34,873) 5,000 - - (5,000) -100.0% 4,158,080 $ 4,553,392 $ 4,926,120 $ 4,730,357 $ 4,790,000 $ (136,120) -2.8% 01-486-350 Property and Liability 381,830 $ 419,370 $ 425,000 $ 500,000 $ 475,000 $ 50,000 11.8% 381,830 $ 419,370 $ 425,000 $ 500,000 $ 475,000 $ 50,000 11.8% $ 24,263,594 $ 25,669,929 27,147,435 $ 26,737,961 $ 29,515,300 $ 2,367,865 8.7% 01-492-003 Transfer to Fire Protection Fund - $ 560,000 $ 500,000 $ 300,000 $ - $ (500,000) -100.0% 01-492-952 Transfer to Capital Fund 2,000,000 - - - 1,000,000 1,000,000 0.0% 01-492-961 Transfer to Parks and Recreation Fund - - - - - - 0.0% 2,000,000 $ 560,000 $ 500,000 $ 300,000 $ 1,000,000 $ 500,000 100.0% 01-493-915 Bad Debt Expense 2,312 $ - $ 2,000 $ - $ - $ (2,000) -100.0% 2,312 $ - $ 2,000 $ - $ - $ (2,000) -100.0% $ 26,265,906 $ 26,229,929 $ 27,649,435 $ 27,037,961 $ 30,515,300 2,865,865 10.4% Income/(Loss) from Operations (1,261,592) $ (1,076,012) $ (3,007,160) $ (2,383,762) $ 385,900 $ EXPENDITURES TOTAL EXPENDITURES WITH TRANSFERS EMPLOYER PAID BENEFITS INSURANCE TOTAL OPERATIONAL EXPENDITURES INTERFUND TRANSFERS BAD DEBT EXPENSE Fund 01 - General Fund 56 -- 56 of 206 -- Street Lighting Fund Fund Overview The Street Lighting Fund is funded by a 0.788 mill (.0788%) Real Estate Tax. This is an appropriated special revenue governmental fund used to maintain and repair streetlights on Township-owned roads throughout the Township. Since converting thousands of Township-owned streetlights to LEDs in 2017, maintenance and utility costs have significantly decreased—approximately $150,000 per year—which enabled a 0.20 mill Real Estate Tax decrease in this fund in 2021, which was diverted to the General Fund. Expenses peaked in 2021 in the Street Lighting Fund as some funds were used to pay for an LED field lighting project at Twin Oaks Park. This fund may also supplement future LED field lighting projects at other parks. Transfers from the Street Lighting Fund to the Debt Service Fund are made annually for the repayment of the Municipal Note used to finance the LED Street Lighting Program. This debt is scheduled to be paid off in 2028. Including transfers, the Street Lighting Fund budget is $545,100 for 2026. Fund Balance The Street Lighting Fund has a healthy fund balance, with a 2026 beginning balance of $580,395 and a 2026 ending balance of $462,795. 0 500,000 1,000,000 1,500,000 2,000,000 Street Lighting Tax Fund Revenue vs. Expenses 2016 to Present Revenue Expenses 57 -- 57 of 206 -- 2026 BUDGET STREET LIGHTING FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Real Property Taxes 409,127 $ 407,975 $ 415,000 $ 412,084 $ 412,100 $ (2,900) -0.7% Interest Earnings 32,793 30,317 15,600 18,400 15,400 (200) -1.3% Miscellaneous Revenue 360 - - - - - 0.0% Total Revenue 442,280 $ 438,292 $ 430,600 $ 430,484 $ 427,500 $ (3,100) -0.7% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Engineering - $ - $ 2,000 $ - $ - $ (2,000) -100.0% Street Lighting 330,368 333,335 392,000 348,550 415,600 23,600 6.0% Fleet Maintenance Services 481 935 5,500 1,710 - (5,500) -100.0% Employer Paid Benefits 7,413 8,732 11,000 - - (11,000) -100.0% Total Operating Expenditures 338,262 $ 343,002 $ 410,500 $ 350,260 $ 415,600 $ 5,100 1.2% Interfund Transfers 129,500 $ 129,500 $ 129,500 $ 129,500 $ 129,500 $ - 0.0% Bad Debt - - - - - - 0.0% Total Expenditures 467,762 $ 472,502 $ 540,000 $ 479,760 $ 545,100 $ 5,100 0.9% Income/(Loss) from Operations (25,482) $ (34,210) $ (109,400) $ (49,276) $ (117,600) $ (8,200) 7.5% Fund Balance - Beginning 689,363 $ 663,881 $ 629,671 $ 580,395 $ Fund Balance - Ending 663,881 $ 629,671 $ 580,395 $ 462,795 $ REVENUE EXPENDITURES Fund 02 - Street Lighting Fund 58 -- 58 of 206 -- 2026 BUDGET STREET LIGHTING FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 02-301-100 Real Estate Taxes - Current YR 405,394 $ 402,696 $ 410,000 $ 407,984 $ 408,000 $ (2,000) -0.5% 02-301-300 Real Estate Taxes - Delinquent 3,733 5,279 5,000 4,100 4,100 (900) -18.0% 409,127 $ 407,975 $ 415,000 $ 412,084 $ 412,100 $ (2,900) -0.7% 02-319-100 Penalties and Interest - R.E. Tax 485 $ 1,230 $ 600 $ 400 $ 400 $ (200) -33.3% 485 $ 1,230 $ 600 $ 400 $ 400 $ (200) -33.3% 02-341-100 Interest Income 32,308 $ 29,087 $ 15,000 $ 18,000 $ 15,000 $ - 0.0% 32,308 $ 29,087 $ 15,000 $ 18,000 $ 15,000 $ - 0.0% 02-389-100 Miscellaneous 360 $ - $ - $ - $ - $ - 0.0% 360 $ - $ - $ - $ - $ - 0.0% 442,280 $ 438,292 $ 430,600 $ 430,484 $ 427,500 $ (3,100) -0.7% ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 02-408-319 Street Lighting Engineering - $ - $ 2,000 $ - $ - $ (2,000) -100.0% - $ - $ 2,000 $ - $ - $ (2,000) -100.0% 02-434-112 Salaries and Wages 29,873 $ 18,112 $ 25,000 $ 37,910 $ 26,000 $ 1,000 4.0% 02-434-180 Overtime Salaries 178 - 1,000 1,610 2,000 1,000 100.0% 02-434-192 FICA/Medicare 2,604 1,485 2,000 3,200 2,100 100 5.0% 02-434-210 Office Supplies - - 500 - - (500) -100.0% 02-434-220 Operating Supplies 31,839 35,968 22,000 25,200 30,000 8,000 36.4% 02-434-260 Minor Equipment 818 968 1,000 320 500 (500) -50.0% 02-434-320 Communications - - 500 - - (500) -100.0% 02-434-360 Utilities 263,556 255,077 300,000 280,310 325,000 25,000 8.3% 02-434-450 Contracted Services 1,500 - 10,000 - - (10,000) -100.0% 02-434-700 Capital Purchases - 21,725 30,000 - 30,000 - 0.0% 330,368 $ 333,335 $ 392,000 $ 348,550 $ 415,600 $ 23,600 6.0% 02-437-220 Operating Supplies 443 $ 935 $ 1,250 $ 350 $ - $ (1,250) -100.0% 02-437-235 Oils and Lubricants 38 - 1,250 60 - (1,250) -100.0% 02-437-450 Contracted Services - - 3,000 1,300 - (3,000) -100.0% 481 $ 935 $ 5,500 $ 1,710 $ - $ (5,500) -100.0% 02-483-194 Unemployment Compensation - $ - $ - $ - $ - $ - 0.0% 02-483-195 Workers' Compensation 7,413 8,732 11,000 - - (11,000) -100.0% 7,413 $ 8,732 $ 11,000 $ - $ - $ (11,000) -100.0% $ 338,262 $ 343,002 $ 410,500 $ 350,260 $ 415,600 5,100 1.2% 02-492-023 Transfer to Debt Fund 129,500 $ 129,500 $ 129,500 $ 129,500 $ 129,500 $ - 0.0% 02-492-030 Transfer to Capital Fund - - - - - - 0.0% 129,500 $ 129,500 $ 129,500 $ 129,500 $ 129,500 $ - 0.0% $ 467,762 $ 472,502 $ 540,000 $ 479,760 $ 545,100 5,100 0.9% Income/(Loss) from Operations (25,482) $ (34,210) $ (109,400) $ (49,276) $ (117,600) $ REVENUE EXPENDITURES TOTAL OPERATIONAL REVENUE REAL PROPERTY TAXES PENALTIES AND INTEREST INTEREST EARNINGS OTHER REVENUE INTERFUND TRANSFERS TOTAL EXPENDITURES WITH TRANSFERS ENGINEERING STREET LIGHTING FLEET MAINTENANCE SERVICES EMPLOYER PAID BENEFITS TOTAL OPERATIONAL EXPENDITURES Fund 02 - Street Lighting Fund 59 -- 59 of 206 -- Fire Protection Fund Fund Overview The Fire Protection Fund is an appropriated special revenue governmental fund which supports the delivery of fire protection services to the community. This fund is primarily funded by a dedicated Real Estate Tax. An increase to 5.00 mills (0.50%), up from 1.920 mills, is proposed for 2026. This fund also receives the proceeds from a state-implemented tax levied on fire insurance policies, known as the Foreign Fire Insurance Premium Tax. This fund provides revenue to the four volunteer fire companies that serve Middletown Township: Langhorne-Middletown Fire Company, Parkland Fire Company, Penndel Fire Company, and William Penn Fire Company. Additionally, indirect support to the fire companies, or expenses incurred to bolster fire company operations or the well-being of volunteers, is also carried in this fund. Examples of this include paying for a portion of workers’ compensation insurance premiums, physicals for firefighters, and stipends for qualified volunteers. This budget also contemplates a proposed increase to the volunteer stipend from $250 to $599 per year. Revenue and Expenses A Real Estate Tax increase is proposed due to the structural deficit in this fund, driven by the cost of providing daytime fire protection services, which has been bolstered by transfers from the General Fund. The tax increase will continue to support the volunteer fire companies and position the Township to continue to provide fire protection services directly and more easily consider future expansions of service if needed. The Foreign Fire Insurance Premium Tax received is transferred to the relief association of each of the four fire companies and the relief association of the Penndel-Middletown Emergency Squad. As of the most recent audits performed by the Pennsylvania Auditor General, the five relief associations supporting emergency response agencies in Middletown Township collectively possess more than $9 million in cash and investments. Audit reports can be located on the Pennsylvania Auditor General’s website. This fund also supports the firefighting operations of the Department of Fire & Emergency Services, which provides daytime emergency response to the community twelve (12) 60 -- 60 of 206 -- hours each weekday. Previously carried by the General Fund alone, the cost of paid firefighters from the Department of Fire & Emergency Services is now carried in this fund to clearly show the cost of providing fire protection services to the community. In 2024, the Township began to account for revenue and expenses specific to fire apparatus—the vehicles necessary for firefighting—in a separate Fire Apparatus Fund for added transparency. The 2026 Fire Protection Fund budget is $2,530,500. Revenue Changes for 2026: • Real Estate Tax Millage Increase 3.080 mills $1,596,000 • Discontinue Transfer from General Fund ($500,000) Operating Expense Changes for 2026: • Staffing – Fire Lieutenant (includes wages and fringe benefits) $158,000 • Fire Protection Study $50,000 • Increase to Volunteer Firefighter Stipend $40,000 Fund Balance The 2026 beginning balance is projected to be $601,936. The 2026 ending fund balance is projected to be $1,052,436. The fund balance is expected to increase in the short-term while revenues are expected to exceed expenditures. 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 Fire Protection Fund Revenue vs. Expenses 2016 to Present Revenue Expenses 61 -- 61 of 206 -- 2026 BUDGET FIRE PROTECTION FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Real Property Taxes 478,007 $ 1,005,013 $ 1,008,000 $ 1,003,972 $ 2,601,000 $ 1,593,000 158.0% Interest Earnings 26,123 25,353 15,600 21,000 16,000 400 2.6% State Shared Revenue and Entitlements 354,844 358,093 355,000 361,020 364,000 9,000 2.5% Total Operational Revenue 858,974 $ 1,388,459 $ 1,378,600 $ 1,385,992 $ 2,981,000 $ 1,602,400 116.2% Interfund Transfers - 560,000 500,000 300,000 - (500,000) -100.0% Total Revenue 858,974 $ 1,948,459 $ 1,878,600 $ 1,685,992 $ 2,981,000 $ 1,102,400 58.7% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Fire Protection Services - $ 817,532 $ 1,034,550 $ 792,050 $ 1,328,600 $ 294,050 28.4% Volunteer Fire Companies Allocation 864,774 869,343 867,000 864,021 918,900 51,900 6.0% Buildings and Facility Maintenance 11,200 - 2,000 - - (2,000) -100.0% Fleet Maintenance Services - - - - 88,000 88,000 0.0% Employer Paid Benefits 92,237 99,639 112,000 180,800 195,000 83,000 74.1% Total Operating Expenditures 968,211 $ 1,786,514 $ 2,015,550 $ 1,836,871 $ 2,530,500 $ 514,950 25.5% Income/(Loss) from Operations (109,237) $ 161,945 $ (136,950) $ (150,879) $ 450,500 $ 587,450 -429.0% Fund Balance - Beginning 700,107 $ 590,870 $ 752,815 $ 601,936 $ Fund Balance - Ending 590,870 $ 752,815 $ 601,936 $ 1,052,436 $ REVENUES EXPENDITURES Fund 03 - Fire Protection Fund 62 -- 62 of 206 -- 2026 BUDGET FIRE PROTECTION FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 03-301-100 Real Estate Taxes - Current YR 473,647 $ 992,008 $ 1,000,000 $ 994,072 $ 2,591,000 $ 1,591,000 159.1% 03-301-300 Real Estate Taxes - Delinquent 4,360 13,005 8,000 9,900 10,000 2,000 25.0% 478,007 $ 1,005,013 $ 1,008,000 $ 1,003,972 $ 2,601,000 $ 1,593,000 158.0% 03-319-100 Penalties and Interest - R.E. Taxes 567 $ 3,029 $ 600 $ 1,000 $ 1,000 $ 400 66.7% 567 $ 3,029 $ 600 $ 1,000 $ 1,000 $ 400 66.7% 03-341-100 Interest Income 25,556 $ 22,324 $ 15,000 $ 20,000 $ 15,000 $ - 0.0% 25,556 $ 22,324 $ 15,000 $ 20,000 $ 15,000 $ - 0.0% 03-355-007 Foreign Fire Insurance Premium Tax 354,844 $ 358,093 $ 355,000 $ 361,020 $ 364,000 $ 9,000 2.5% 354,844 $ 358,093 $ 355,000 $ 361,020 $ 364,000 $ 9,000 2.5% 858,974 $ 1,388,459 $ 1,378,600 $ 1,385,992 $ 2,981,000 $ 1,602,400 116.2% 03-392-001 Transfer from General Fund - $ 560,000 $ 500,000 $ 300,000 $ - $ (500,000) -100.0% 03-392-003 Transfer from Investment Fund - - - - - - 0.0% - $ 560,000 $ 500,000 $ 300,000 $ - $ (500,000) -100.0% 858,974 $ 1,948,459 $ 1,878,600 $ 1,685,992 $ 2,981,000 $ 1,102,400 58.7% ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 03-411-112 Salaries and Wages - $ 496,343 $ 594,000 $ 471,100 $ 759,000 $ 165,000 27.8% 03-411-149 Holiday Pay - - 48,000 44,000 50,000 2,000 4.2% 03-411-180 Overtime Salaries - 115,947 75,000 78,000 95,000 20,000 26.7% 03-411-192 FICA/Medicare - 46,517 57,000 45,370 69,000 12,000 21.1% 03-411-196 Medical Insurance - 131,167 192,000 138,000 258,000 66,000 34.4% 03-411-198 Disability Insurance - 2,355 3,000 4,000 7,000 4,000 133.3% 03-411-199 Group Life Insurance - 2,774 4,000 760 8,000 4,000 100.0% 03-411-210 Office Supplies - - 3,750 550 800 (2,950) -78.7% 03-411-220 Operating Supplies - 3,762 6,750 4,800 8,500 1,750 25.9% 03-411-238 Clothing and Uniforms - 4,653 15,000 - 5,000 (10,000) -66.7% 03-411-260 Minor Equipment - 834 3,750 970 1,500 (2,250) -60.0% 03-411-320 Communications - 7,374 6,000 3,490 5,500 (500) -8.3% 03-411-340 Advertising and Printing - 498 750 - - (750) -100.0% 03-411-374 Equipment Maintenance - 3,310 8,175 1,010 5,000 (3,175) -38.8% 03-411-420 Subscriptions and Memberships - 988 1,875 - 300 (1,575) -84.0% 03-411-450 Contracted Services - - 8,000 - 50,000 42,000 525.0% 03-411-460 Training and Meetings - 1,010 7,500 - 6,000 (1,500) -20.0% $ - $ 817,532 1,034,550 $ $ 792,050 1,328,600 $ 294,050 28.4% 03-411-540 Contribution To Fire Company 480,180 $ 483,000 $ 482,000 $ 475,000 $ 485,000 $ 3,000 0.6% 03-411-545 Foreign Fire Insurance Premium Tax 354,844 358,093 355,000 361,021 363,900 8,900 2.5% 03-411-550 Incentive Contribution 29,750 28,250 30,000 28,000 70,000 40,000 133.3% 864,774 $ 869,343 $ 867,000 $ 864,021 $ 918,900 $ 51,900 6.0% 03-411-373 Repairs and Maintenance 11,200 $ - $ 2,000 $ - $ - $ (2,000) -100.0% 11,200 $ - $ 2,000 $ - $ - $ (2,000) -100.0% 03-437-231 Gasoline - $ - $ - $ - $ 9,000 $ 9,000 0.0% 03-437-232 Diesel - - - - 9,000 9,000 0.0% 03-437-251 Vehicle Parts - - - - 60,000 60,000 0.0% 03-437-450 Contracted Services - - - - 10,000 10,000 0.0% - $ - $ - $ - $ 88,000 $ 88,000 0.0% 03-483-195 Workers' Compensation 92,237 99,639 112,000 180,800 195,000 83,000 74.1% 92,237 $ 99,639 $ 112,000 $ 180,800 $ 195,000 $ 83,000 74.1% 968,211 $ 1,786,514 $ 2,015,550 $ 1,836,871 $ 2,530,500 $ Income/(Loss) from Operations (109,237) $ 161,945 $ (136,950) $ (150,879) $ 450,500 $ REVENUE TOTAL OPERATIONAL REVENUE REAL PROPERTY TAXES PENALTIES AND INTEREST INTEREST EARNINGS STATE SHARED REVENUE AND ENTITLEMENTS TOTAL OPERATIONAL EXPENDITURES INTERFUND TRANSFERS TOTAL REVENUE WITH TRANSFERS FIRE PROTECTION SERVICES EMPLOYER PAID BENEFITS EXPENDITURES BUILDINGS AND FACILITY MAINTENANCE VOLUNTEER FIRE COMPANIES FLEET MAINTENANCE SERVICES Fund 03 - Fire Protection Fund 63 -- 63 of 206 -- Parks and Recreation Fund Fund Overview The Parks and Recreation Fund is an appropriated special revenue governmental fund used to maintain the Township’s 19 parks and provide recreation programming. This fund is primarily funded by a dedicated Real Estate Tax and fees paid by program participants for the Township’s various recreation programs. An increase to 3.50 mills (0.350%), up from 1.920 mills, is proposed for 2026. Recreation program revenue has rebounded since the pandemic, achieving another all- time high in 2025. This is expected to continue as fees are gradually increased and more programs are offered. Efforts are continually made to ensure that program costs are adequately covered by the revenue they generate. The Parks and Recreation Fund also carries a portion of the salaries for the Department of Public Works to reflect the maintenance performed at Township parks and open spaces throughout the year. This work includes cutting more than 800 acres of grass at dozens of locations around the Township. Revenue and Expenses A Real Estate Tax increase is proposed to address the growing structural deficit that has emerged in recent years due to the rising cost to maintain facilities. The tax rate in this fund has not changed in more than ten years. The tax increase will enable this fund to appropriately support the cost of maintaining parks and open spaces, including the cost of capital maintenance projects. In 2026, several park maintenance projects are planned from this fund, which include resurfacing and re-fencing the tennis courts at Lance Corporal Harry J. Simmons Jr. Park, replacing safety netting at Twin Oaks Park, and replacing the playground at Detective Christopher Jones Memorial Park. The 2026 Parks and Recreation Fund budget is $2,640,200. 64 -- 64 of 206 -- Revenue Changes for 2026: • Real Estate Tax Millage Increase 1.580 mills $818,000 Operating and Capital Expense Changes for 2026: • Community Center – ADA Restroom Improvements $50,000 • Twin Oaks Park – Safety Netting Replacements $53,000 • Det. Chris Jones Memorial Park – Playground Replacement $100,000 • Simmons Park – Tennis Court Resurfacing and Fencing $350,000 • All Parks – Facility and Security Improvements $80,000 Fund Balance The Parks and Recreation Fund beginning fund balance is projected to be $104,793 in 2026. The ending balance is expected to be $78,593. The increased tax revenue will allow operating surpluses to be accumulated in the fund balance long-term for larger park and facility maintenance projects in the future. 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 Parks and Recreation Fund Revenues vs. Expenses 2016 to Present Revenue Expenses 65 -- 65 of 206 -- 2026 BUDGET PARKS AND RECREATION FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Real Property Taxes 998,084 $ 1,005,013 $ 1,010,000 $ 1,003,972 $ 1,823,000 $ 813,000 80.5% Interest Earnings 34,485 33,783 19,000 21,000 19,000 - 0.0% Rents and Royalties 11,402 11,602 14,500 11,400 12,000 (2,500) -17.2% Charges for Services 573,139 668,880 704,500 703,972 740,000 35,500 5.0% Contributions and Donations 8,270 14,467 26,000 16,587 20,000 (6,000) -23.1% Total Operational Revenue 1,625,380 $ 1,733,745 $ 1,774,000 $ 1,756,931 $ 2,614,000 $ 840,000 47.4% Interfund Transfers - - - - - - 0.0% Total Revenue 1,625,380 $ 1,733,745 $ 1,774,000 $ 1,756,931 $ 2,614,000 $ 840,000 47.4% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Legal Services - $ - $ 500 $ - $ - $ (500) -100.0% Fleet Maintenance Services 13,609 18,463 17,000 9,550 16,000 (1,000) -5.9% Recreation Administration 218,764 242,193 235,150 223,845 335,900 100,750 42.8% Participant Recreation 573,751 590,811 620,100 740,736 648,000 27,900 4.5% Building and Facility Maintenance 918,254 774,571 892,200 951,340 1,597,500 705,300 79.1% Civil Celebrations - 32,952 26,000 16,780 26,000 - 0.0% Employer Paid Benefits 37,065 43,660 51,400 15,200 16,800 (34,600) -67.3% Total Expenditures 1,761,443 $ 1,702,650 $ 1,842,350 $ 1,957,451 $ 2,640,200 $ 797,850 43.3% Income/(Loss) from Operations (136,063) $ 31,095 $ (68,350) $ (200,520) $ (26,200) $ 42,150 -61.7% Fund Balance - Beginning 410,281 $ 274,218 $ 305,313 $ 104,793 $ Fund Balance - Ending 274,218 $ 305,313 $ 104,793 $ 78,593 $ REVENUE EXPENDITURES Fund 04 - Parks and Recreation Fund 66 -- 66 of 206 -- 2026 BUDGET PARKS AND RECREATION FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 04-301-100 Real Estate Taxes - Current YR 988,982 $ 992,008 $ 1,000,000 $ 994,072 $ 1,813,000 $ 813,000 81.3% 04-301-300 Real Estate Taxes - Delinquent 9,102 13,005 10,000 9,900 10,000 - 0.0% 998,084 $ 1,005,013 $ 1,010,000 $ 1,003,972 $ 1,823,000 $ 813,000 80.5% 04-319-100 Penalties and Interest - R.E. Taxes 1,183 $ 3,029 $ 1,000 $ 1,000 $ 1,000 $ - 0.0% 1,183 $ 3,029 $ 1,000 $ 1,000 $ 1,000 $ - 0.0% 04-341-100 Interest Income 33,302 $ 30,754 $ 18,000 $ 20,000 $ 18,000 $ - 0.0% 33,302 $ 30,754 $ 18,000 $ 20,000 $ 18,000 $ - 0.0% 04-342-200 Rent of Buildings 11,402 $ 11,602 $ 14,500 $ 11,400 $ 12,000 $ (2,500) -17.2% 11,402 $ 11,602 $ 14,500 $ 11,400 $ 12,000 $ (2,500) -17.2% 04-367-140 Facility Rental 57,628 $ 68,425 $ 70,000 $ 67,972 $ 75,000 $ 5,000 7.1% 04-367-200 Recreation Program Fees 508,691 590,255 625,000 630,000 657,000 32,000 5.1% 04-367-270 Discount Ticket Sales 340 - - - - - 0.0% 04-367-280 Advertising Revenue 6,480 10,200 9,500 6,000 8,000 (1,500) -15.8% 573,139 $ 668,880 $ 704,500 $ 703,972 $ 740,000 $ 35,500 5.0% 04-387-100 Contributions and Donations 8,270 $ 14,467 $ 26,000 $ 16,587 $ 20,000 $ (6,000) -23.1% 8,270 $ 14,467 $ 26,000 $ 16,587 $ 20,000 $ (6,000) -23.1% $ 1,625,380 $ 1,733,745 $ 1,774,000 $ 1,756,931 $ 2,614,000 840,000 47.4% REAL PROPERTY TAXES PENALTIES AND INTEREST INTEREST EARNINGS RENTS AND ROYALTIES CHARGES FOR SERVICES CONTRIBUTIONS AND DONATIONS FROM PRIVATE TOTAL OPERATIONAL REVENUE REVENUE Fund 04 - Parks and Recreation Fund 67 -- 67 of 206 -- 2026 BUDGET PARKS AND RECREATION FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 04-404-301 General Legal Services - $ - $ 500 $ - $ - $ (500) -100.0% - $ - $ 500 $ - $ - $ (500) -100.0% 04-437-231 Gasoline 7,970 $ 10,044 $ 9,000 $ 5,120 $ 10,000 $ 1,000 11.1% 04-437-232 Diesel 3,421 5,289 3,500 3,840 5,000 1,500 42.9% 04-437-235 Oils and Lubricants 113 - 500 250 500 - 0.0% 04-437-257 Parks and Recreation Department 290 - 1,000 340 500 (500) -50.0% 04-437-450 Contracted Services 1,815 3,130 3,000 - - (3,000) -100.0% 13,609 $ 18,463 $ 17,000 $ 9,550 $ 16,000 $ (1,000) -5.9% 04-451-112 Salaries and Wages 130,412 $ 130,518 $ 126,000 $ 99,670 $ 170,000 $ 44,000 34.9% 04-451-180 Overtime Salaries - - 1,000 - - (1,000) -100.0% 04-451-192 FICA/Medicare 11,550 11,091 8,000 8,600 12,900 4,900 61.3% 04-451-196 Medical Insurance 63,073 85,843 80,000 104,090 119,500 39,500 49.4% 04-451-198 Disability Insurance 1,853 1,843 3,000 1,310 3,000 - 0.0% 04-451-199 Group Life Insurance 610 695 1,500 490 1,500 - 0.0% 04-451-210 Office Supplies 1,092 252 1,200 140 1,000 (200) -16.7% 04-451-215 Postage 155 160 500 175 500 - 0.0% 04-451-220 Operating Supplies 81 571 1,500 280 1,000 (500) -33.3% 04-451-340 Advertising and Printing 1,435 932 700 30 2,000 1,300 185.7% 04-451-420 Subscriptions and Memberships 2,671 2,852 1,500 2,500 3,000 1,500 100.0% 04-451-450 Contracted Services 200 - 1,000 460 3,000 2,000 200.0% 04-451-460 Trainings and Meetings 5,632 7,436 9,250 6,100 18,500 9,250 100.0% 218,764 $ 242,193 $ 235,150 $ 223,845 $ 335,900 $ 100,750 42.8% 04-452-112 Salaries and Wages 301,656 $ 336,675 $ 364,000 $ 431,350 $ 385,000 $ 21,000 5.8% 04-452-180 Overtime Salaries 12,371 14,862 17,000 16,510 17,000 - 0.0% 04-452-192 FICA/Medicare 25,205 27,349 29,000 34,160 29,000 - 0.0% 04-452-215 Postage 11,707 12,329 13,000 12,896 13,500 500 3.8% 04-452-220 Operating Supplies 20,915 13,581 18,000 19,350 19,000 1,000 5.6% 04-452-260 Minor Equipment - 300 1,500 590 - (1,500) -100.0% 04-452-320 Communication 2,641 3,121 3,600 3,840 2,000 (1,600) -44.4% 04-452-340 Advertising & Printing 11,862 15,238 16,500 21,140 17,500 1,000 6.1% 04-452-390 Bank Service Charges/Fees 11,896 10,568 12,500 23,200 15,000 2,500 20.0% 04-452-450 Contracted Services 175,498 156,788 145,000 177,700 150,000 5,000 3.4% 573,751 $ 590,811 $ 620,100 $ 740,736 $ 648,000 $ 27,900 4.5% 04-454-112 Salaries and Wages 537,928 $ 447,167 $ 533,000 $ 581,290 $ 565,000 $ 32,000 6.0% 04-454-180 Overtime Salaries 19,647 8,424 25,000 11,780 14,000 (11,000) -44.0% 04-454-192 FICA/Medicare 43,054 35,808 44,200 45,680 44,300 100 0.2% 04-454-220 Operating Supplies 45,360 30,982 32,000 40,000 37,000 5,000 15.6% 04-454-235 Oils and Lubricants 188 - 500 200 - (500) -100.0% 04-454-260 Minor Equipment 3,411 1,460 4,000 220 200 (3,800) -95.0% 04-454-320 Communications 6,741 7,411 11,500 5,070 6,000 (5,500) -47.8% 04-454-360 Utilities 114,044 125,546 120,000 130,340 138,000 18,000 15.0% 04-454-370 Repairs and Maintenance 29,194 28,227 20,000 40,920 60,000 40,000 200.0% 04-454-374 Equipment Maintenance - 450 2,000 420 - (2,000) -100.0% 04-454-450 Contracted Services 118,687 89,096 100,000 95,420 100,000 - 0.0% 04-454-720 Capital Maintenance - - - - 633,000 633,000 0.0% 918,254 $ 774,571 $ 892,200 $ 951,340 $ 1,597,500 $ 705,300 79.1% 04-457-490 Township Sponsored Events - $ 32,952 $ 26,000 $ 16,780 $ 26,000 $ - 0.0% - $ 32,952 $ 26,000 $ 16,780 $ 26,000 $ - 0.0% (34,600) 04-483-195 Workers' Compensation 37,065 $ 43,660 $ 51,400 $ 15,200 $ 16,800 $ -67.3% 37,065 $ 43,660 $ 51,400 $ 15,200 $ 16,800 $ (34,600) -67.3% $ 1,761,443 $ 1,702,650 $ 1,842,350 $ 1,957,451 $ 2,640,200 797,850 43.3% Income/(Loss) from Operations (136,063) $ 31,095 $ (68,350) $ (200,520) $ (26,200) $ 42,150 -61.7% LEGAL SERVICES TOTAL OPERATIONAL EXPENDITURES FLEET MAINTENANCE SERVICES RECREATION ADMINISTRATION PARTICIPANT RECREATION BUILDINGS AND FACILITY MAINTENANCE CIVIL CELEBRATIONS EMPLOYER PAID BENEFITS EXPENDITURES Fund 04 - Parks and Recreation Fund 68 -- 68 of 206 -- Ambulance and Rescue Fund Fund Overview As of 2025, Middletown Township levied a 0.44 mill (0.044%) Real Estate Tax that is dedicated to emergency medical services. This is an appropriated special revenue governmental fund. Revenues from this fund are transferred to the Penndel-Middletown Emergency Squad (PMES). PMES is the only volunteer-supported service provider that serves Middletown Township, the four surrounding boroughs, and provides mutual aid to other parts of lower Bucks County. A small amount of tax revenue is withheld to cover the cost of workers’ compensation insurance on PMES’ behalf. An increase to 0.740 mills (0.074%), up from 0.440 mills, is proposed for 2026. For 2026, the Ambulance and Rescue Fund budget is $386,600. Revenue and Operating Changes for 2026: • Real Estate Tax Millage Increase 0.30 mills $155,000 • Increased Contribution to PMES $155,000 Fund Balance The Ambulance and Rescue Fund serves as a pass-through account as funds received are transferred almost entirely to PMES. A low fund balance is typical for the Ambulance and Rescue Fund. The projected 2026 beginning balance of the Ambulance and Rescue Fund is $1,010 and is not expected to change significantly. 0 100,000 200,000 300,000 400,000 500,000 Ambulance and Rescue Fund Revenues vs. Expenses 2016 to Present Revenue Expenses 69 -- 69 of 206 -- 2026 BUDGET AMBULANCE AND RESCUE FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Real Property Taxes 228,296 $ 228,864 $ 232,000 $ 230,108 $ 386,800 $ 154,800 66.7% Interest Earnings 2,619 2,872 1,300 1,700 1,200 (100) -7.7% Total Revenue 230,915 $ 231,736 $ 233,300 $ 231,808 $ 388,000 $ 154,700 66.3% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Ambulance and Rescue 232,270 $ 247,737 $ 233,000 $ 228,600 $ 386,600 $ 153,600 65.9% Total Expenditures 232,270 $ 247,737 $ 233,000 $ 228,600 $ 386,600 $ 153,600 65.9% Income/(Loss) from Operations (1,355) $ (16,001) $ 300 $ 3,208 $ 1,400 $ 1,100 366.7% Fund Balance - Beginning 15,158 $ 13,803 $ (2,198) $ 1,010 $ Fund Balance - Ending 13,803 $ (2,198) $ 1,010 $ 2,410 $ REVENUE EXPENDITURES Fund 05 - Ambulance and Rescue Fund 70 -- 70 of 206 -- 2026 BUDGET AMBULANCE AND RESCUE FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 05-301-100 Real Estate Taxes - Current YR 226,214 $ 225,903 $ 230,000 $ 227,808 $ 383,000 $ 153,000 66.5% 05-301-300 Real Estate Taxes - Delinquent 2,082 2,961 2,000 2,300 3,800 1,800 90.0% 228,296 $ 228,864 $ 232,000 $ 230,108 $ 386,800 $ 154,800 66.7% 05-319-100 Penalties and Interest - R.E. Taxes 271 $ 690 $ 300 $ 200 $ 200 $ (100) -33.3% 271 $ 690 $ 300 $ 200 $ 200 $ (100) -33.3% 05-341-100 Interest Income 2,348 $ 2,182 $ 1,000 $ 1,500 $ 1,000 $ - 0.0% 2,348 $ 2,182 $ 1,000 $ 1,500 $ 1,000 $ - 0.0% $ 230,915 $ 231,736 $ 233,300 $ 231,808 $ 388,000 154,700 66.3% ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 05-412-540 Contribution To Ambulance 229,947 $ 245,000 $ 230,000 $ 228,000 $ 386,000 $ 156,000 67.8% 05-483-195 Workers' Compensation 2,323 2,737 3,000 600 600 (2,400) -80.0% 232,270 $ 247,737 $ 233,000 $ 228,600 $ 386,600 $ 153,600 65.9% $ 232,270 $ 247,737 $ 233,000 $ 228,600 $ 386,600 153,600 65.9% Income/(Loss) from Operations (1,355) $ (16,001) $ 300 $ 3,208 $ 1,400 $ REVENUE EXPENDITURES AMBULANCE AND RESCUE TOTAL OPERATIONAL EXPENDITURES REAL PROPERTY TAXES PENALTIES AND INTEREST INTEREST EARNINGS TOTAL OPERATIONAL REVENUE Fund 05 - Ambulance and Rescue Fund 71 -- 71 of 206 -- Road Machinery Fund Fund Overview The Road Machinery Fund is an appropriated special revenue governmental fund designed to provide a consistent pool of funding to replace vehicles in the Department of Public Works. The Road Machinery Fund is funded by a 0.30 mill (0.03%) Real Estate Tax. These vehicles transport staff and equipment needed to repair and maintain Township property and often serve as snowplows during the winter. When necessary, other major Public Works equipment, such as tractors and mowers, may be charged to this fund. This fund is generally used for purchases when no other funding source is available. For 2026, the Road Machinery Fund budget is $927,500. 0 200,000 400,000 600,000 800,000 1,000,000 Road Machinery Fund Revenue vs. Expenses 2016 to Present Revenue Expenses 72 -- 72 of 206 -- Operating and Capital Expense Changes for 2026: • Minor Equipment - Trailer, Crack Seal Machine, Zero Turn Mowers (2) $66,500 • Pickup Truck $95,000 • Street Sweeper $335,000 • Dump Trucks (2) $431,000 Fund Balance Expenditures to the Road Machinery Fund fluctuated based upon road machinery needs and earned grants. It is normal for accumulated fund balance to be used every few years to support a purchase, as was done in 2023. The Road Machinery Fund is projected to have a 2026 beginning balance of $577,150. The 2026 ending fund balance is expected to be a deficit of $181,550, as potential grant funding is not reflected in the budgeted revenue. 73 -- 73 of 206 -- 2026 BUDGET ROAD MACHINERY FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Real Property Taxes 156,146 $ 159,210 $ 161,500 $ 156,924 $ 156,600 $ (4,900) -3.0% Interest Earnings 26,172 18,209 12,200 15,200 12,200 - 0.0% Total Revenue 182,318 $ 177,419 $ 173,700 $ 172,124 $ 168,800 $ (4,900) -2.8% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Public Works 420,055 $ 33,449 $ 113,000 $ 100,000 $ 927,500 $ 814,500 720.8% Total Expenditures 420,055 $ 33,449 $ 113,000 $ 100,000 $ 927,500 $ 814,500 720.8% Income/(Loss) from Operations (237,737) $ 143,970 $ 60,700 $ 72,124 $ (758,700) $ (819,400) -1349.9% Fund Balance - Beginning 598,793 $ 361,056 $ 505,026 $ 577,150 $ Fund Balance - Ending 361,056 $ 505,026 $ 577,150 $ (181,550) $ REVENUE EXPENDITURES Fund 06 - Road Machinery Fund 74 -- 74 of 206 -- 2026 BUDGET ROAD MACHINERY FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 06-301-100 Real Estate Taxes - Current YR 154,722 $ 157,150 $ 160,000 $ 155,324 $ 155,000 $ (5,000) -3.1% 06-301-300 Real Estate Taxes - Delinquent 1,424 2,060 1,500 1,600 1,600 100 6.7% 156,146 $ 159,210 $ 161,500 $ 156,924 $ 156,600 $ (4,900) -3.0% 06-319-100 Penalties and Interest - R.E. Taxes 185 $ 480 $ 200 $ 200 $ 200 $ - 0.0% 185 $ 480 $ 200 $ 200 $ 200 $ - 0.0% 06-341-100 Interest Income 25,987 $ 17,729 $ 12,000 $ 15,000 $ 12,000 $ - 0.0% 25,987 $ 17,729 $ 12,000 $ 15,000 $ 12,000 $ - 0.0% $ 182,318 $ 177,419 $ 173,700 $ 172,124 $ 168,800 (4,900) -2.8% ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 06-430-260 Minor Equipment 5,351 $ - $ 10,000 $ - $ - $ (10,000) -100.0% 06-430-700 Capital Purchases 414,704 33,449 103,000 100,000 335,000 232,000 225.2% 06-430-720 Capital Maintenance - - - - 592,500 592,500 0.0% 420,055 $ 33,449 $ 113,000 $ 100,000 $ 927,500 $ 814,500 720.8% $ 420,055 $ 33,449 $ 113,000 $ 100,000 $ 927,500 814,500 720.8% Income/(Loss) from Operations (237,737) $ 143,970 $ 60,700 $ 72,124 $ (758,700) $ REVENUE EXPENDITURES PUBLIC WORKS TOTAL OPERATIONAL EXPENDITURES REAL PROPERTY TAXES PENALTIES AND INTEREST INTEREST EARNINGS TOTAL OPERATIONAL REVENUE Fund 06 - Road Machinery Fund 75 -- 75 of 206 -- Fire Hydrant Fund Fund Overview The Fire Hydrant Fund is an appropriated special revenue governmental fund used to finance fire hydrant service throughout the Township. The Fire Hydrant Fund is funded by a 0.137 mill (0.0137%) Real Estate Tax. The shift in millage made in 2023 to address increased fire hydrant service costs proved successful, as a slow, steady fund balance is being built year over year. For 2026, the Fire Hydrant Fund budget is $67,200. Fund Balance Since adjusting the Real Estate Tax in 2023, Fire Hydrant Fund revenues now cover expenditures, and remaining revenue is set aside to fund balance each year. This increase in revenue will slowly rebuild the fund balance that was diminished in prior years. The projected 2026 beginning balance will be $28,433 and is expected to increase to $34,033. 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 Fire Hydrant Tax Fund Revenues vs. Expenses 2016 to Present Revenue Expenses 76 -- 76 of 206 -- 2026 BUDGET FIRE HYDRANT FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Real Property Taxes 71,220 $ 69,654 $ 71,500 $ 71,631 $ 71,700 $ 200 0.3% Interest Earnings 988 1,641 1,050 1,100 1,100 50 4.8% Total Revenue 72,208 $ 71,295 $ 72,550 $ 72,731 $ 72,800 $ 250 0.3% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Fire Protection Services 62,250 $ 61,997 $ 64,000 $ 65,000 $ 67,200 $ 3,200 5.0% Total Expenditures 62,250 $ 61,997 $ 64,000 $ 65,000 $ 67,200 $ 3,200 5.0% Income/(Loss) from Operations 9,958 $ 9,298 $ 8,550 $ 7,731 $ 5,600 $ (2,950) -34.5% Fund Balance - Beginning 1,446 $ 11,404 $ 20,702 $ 28,433 $ Fund Balance - Ending 11,404 $ 20,702 $ 28,433 $ 34,033 $ REVENUE EXPENDITURES Fund 07 - Fire Hydrant Fund 77 -- 77 of 206 -- 2026 BUDGET FIRE HYDRANT FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 07-301-100 Real Estate Taxes - Current YR 70,569 $ 68,753 $ 71,000 $ 70,931 $ 71,000 $ - 0.0% 07-301-300 Real Estate Taxes - Delinquent 651 901 500 700 700 200 40.0% 71,220 $ 69,654 $ 71,500 $ 71,631 $ 71,700 $ 200 0.3% 07-319-100 Penalties and Interest - R.E. Taxes 69 $ 210 $ 50 $ 100 $ 100 $ 50 100.0% 69 $ 210 $ 50 $ 100 $ 100 $ 50 100.0% 07-341-100 Interest Income 919 $ 1,431 $ 1,000 $ 1,000 $ 1,000 $ - 0.0% 919 $ 1,431 $ 1,000 $ 1,000 $ 1,000 $ - 0.0% $ 72,208 $ 71,295 $ 72,550 $ 72,731 $ 72,800 250 0.3% ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 07-411-363 Hydrant Service 62,250 $ 61,997 $ 64,000 $ 65,000 $ 67,200 $ 3,200 5.0% 62,250 $ 61,997 $ 64,000 $ 65,000 $ 67,200 $ 3,200 5.0% $ 62,250 $ 61,997 $ 64,000 $ 65,000 $ 67,200 3,200 5.0% Income/(Loss) from Operations 9,958 $ 9,298 $ 8,550 $ 7,731 $ 5,600 $ REVENUE FIRE PROTECTION SERVICES TOTAL OPERATIONAL EXPENDITURES REAL PROPERTY TAXES PENALTIES AND INTEREST INTEREST EARNINGS TOTAL OPERATIONAL REVENUE EXPENDITURES Fund 07 - Fire Hydrant Fund 78 -- 78 of 206 -- This page intentionally left blank. 79 -- 79 of 206 -- Fire Apparatus Fund Fund Overview The Fire Apparatus Fund was introduced as a standalone fund in the 2024 budget. It is an appropriated special revenue fund used to finance the purchase of firefighting apparatus, such as fire engines, for the Township’s first responders, and is funded solely by a dedicated Real Estate Tax. An increase to 2.50 mills (0.250%), up from 1.08 mills, is proposed for 2026. Prior to 2024, taxes earmarked for fire apparatus were accounted for in the Fire Protection Fund and were transferred to the four volunteer fire companies serving Middletown Township. In 2023, as an effort to more proactively manage fire services, the Township began retaining the tax proceeds with the intent of purchasing and maintaining future fire apparatus directly. The Township and the volunteer fire companies have been progressively working toward establishing an apparatus replacement plan and a standard fire engine specification. In October 2023, the Board of Supervisors authorized the purchase of three fire engines, totaling $3.72 million. Delivery of these engines is expected in early 2027. In 2025, the Township paid down a loan on Tower 8, operated by Penndel Fire Company. No expenditures are planned in the Fire Apparatus Fund in 2026, allowing the fund to accumulate until payment is due for the new engines in 2027. Fire Apparatus tax dollars currently held by the volunteer fire companies are also expected to be received into this fund in 2026. 80 -- 80 of 206 -- Revenue Changes for 2026: • Real Estate Tax Millage Increase 1.420 mills $735,000 • Return of Fire Apparatus funds from Fire Companies $1,000,000 Fund Balance The beginning balance of the Fire Apparatus Fund in 2026 is $861,443 which reflects the amount of Real Estate Taxes collected since 2023, less the 2025 payoff of Tower 8. The 2026 ending fund balance is expected to be $3,171,043. The 2026 Budget assumes a transfer of pre-2023 unspent fire apparatus tax revenue currently held by the volunteer fire companies to be transferred back to the Township into the Fire Apparatus Fund. 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2022 2023 2024 2025 Projected 2026 Budgeted Fire Apparatus Fund Revenues vs. Expenses 2022 to Present Revenue Expenses 81 -- 81 of 206 -- 2026 BUDGET FIRE APPARATUS FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Real Property Taxes 325,078 $ 568,894 $ 569,900 $ 565,366 $ 1,301,600 $ 731,700 128.4% Interest Earnings 14,178 17,184 8,000 25,000 8,000 - 0.0% Total Operational Revenue 339,256 $ 586,078 $ 577,900 $ 590,366 $ 1,309,600 $ 731,700 126.6% Transfers from External Sources - $ - $ - $ - $ 1,000,000 $ Total Revenue 339,256 $ 586,078 $ 577,900 $ 590,366 $ 2,309,600 $ 1,731,700 299.7% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Apparatus Expenses - $ - $ - $ 654,257 $ - $ - 0.0% Total Operating Expenditures - $ - $ - $ 654,257 $ - $ - 0.0% Income/(Loss) from Operations 339,256 $ 586,078 $ 577,900 $ (63,891) $ 2,309,600 $ 1,731,700 299.7% Fund Balance - Beginning - $ 339,256 $ 925,334 $ 861,443 $ Fund Balance - Ending 339,256 $ 925,334 $ 861,443 $ 3,171,043 $ REVENUE EXPENDITURES Fund 08 - Fire Apparatus Fund 82 -- 82 of 206 -- 2026 BUDGET FIRE APPARATUS FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 08-301-100 Real Estate Taxes - Current YR 321,731 $ 559,846 $ 565,000 $ 559,166 $ 1,295,000 $ 730,000 129.2% 08-301-300 Real Estate Taxes - Delinquent 2,962 7,339 4,500 5,600 6,000 1,500 33.3% 324,693 $ 567,185 $ 569,500 $ 564,766 $ 1,301,000 $ 731,500 128.4% 08-319-100 Penalties and Interest - R.E. Taxes 385 $ 1,709 $ 400 $ 600 $ 600 $ 200 50.0% 385 $ 1,709 $ 400 $ 600 $ 600 $ 200 50.0% 08-341-100 Interest Income 14,178 $ 17,184 $ 8,000 $ 25,000 $ 8,000 $ - 0.0% 14,178 $ 17,184 $ 8,000 $ 25,000 $ 8,000 $ - 0.0% $ 339,256 $ 586,078 577,900 $ $ 590,366 1,309,600 $ 731,700 126.6% 08-392-005 Transfer from Fire Company - $ - $ - $ - $ 1,000,000 $ 1,000,000 0.0% - $ - $ - $ - $ 1,000,000 $ 1,000,000 0.0% $ 339,256 $ 586,078 $ 577,900 $ 590,366 $ 2,309,600 1,731,700 299.7% ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 08-411-373 Repairs and Maintenance - $ - $ - $ - $ - $ 08-430-700 Capital Purchases - - - 654,257 - - 0.0% - $ - $ - $ 654,257 $ - $ - 0.0% $ - $ - $ - $ 654,257 $ - - 0.0% Income/(Loss) from Operations 339,256 $ 586,078 $ 577,900 $ (63,891) $ 2,309,600 $ APPARATUS EXPENSES TOTAL OPERATIONAL EXPENDITURES TRANSFERS FROM EXTERNAL SOURCES TOTAL REVENUE WITH TRANSFERS REVENUE REAL PROPERTY TAXES PENALTIES AND INTEREST INTEREST EARNINGS TOTAL OPERATIONAL REVENUE EXPENDITURES Fund 08 - Fire Apparatus Fund 83 -- 83 of 206 -- Sanitation Fund Fund Overview Revenues in the Sanitation Fund are made up of fees charged to residents for solid waste and recycling services. This is an appropriated general governmental fund. The Sanitation Fund carries a portion of Township management costs associated with administration of the contract. For 2026, the Sanitation Fund budget is $5,652,500. In 2026, Middletown Township will begin the second year of a five-year single-hauler contract with Waste Management, Inc. The cost of trash collection services from Waste Management increases each year of the contract, but residents are charged a flat amount during the contract period to provide financial predictability. Residents will continue to pay the Solid Waste and Recycling Fee from 2025 of $476 per year. In the Township’s annual audited financial statements, the Sanitation Fund is combined with the General Fund and does not appear as a standalone fund. Fund Balance Since residents are charged an averaged amount for solid waste and recycling services over the life of the contract between the Township and the collector, revenue generally remains flat while the service cost of the contract increases each year. This means in the latter years of a contract (as seen in 2019 & 2024), expenditures outpace revenues as the fund balance is used. The projected 2026 beginning balance is expected to be $846,052. This fund balance will increase to $1,065,152 by the end of 2026. 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 Sanitation Fund Revenues vs. Expenses 2016 to Present Revenue Expenses 84 -- 84 of 206 -- 2026 BUDGET SANITATION FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Interest Earnings 92,129 $ 80,566 $ 50,000 $ 55,000 $ 50,000 $ - 0.0% Sanitation 4,950,012 4,937,133 5,808,000 5,822,100 5,821,600 13,600 0.2% Total Revenue 5,042,141 $ 5,017,699 $ 5,858,000 $ 5,877,100 $ 5,871,600 $ 13,600 0.2% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Executive - $ - $ - $ - $ 46,500 $ 46,500 0.0% Legal Services 168 (447) 500 3,500 5,000 4,500 900.0% Sanitation 5,197,742 5,280,439 5,327,000 5,257,710 5,601,000 274,000 5.1% Employer Paid Benefits 530 624 750 - - (750) -100.0% Total Expenditures 5,198,440 $ 5,280,616 $ 5,328,250 $ 5,261,210 $ 5,652,500 $ 324,250 6.1% Income/(Loss) from Operations (156,299) $ (262,917) $ 529,750 $ 615,890 $ 219,100 $ (310,650) -58.6% Fund Balance - Beginning 649,378 $ 493,079 $ 230,162 $ 846,052 $ Fund Balance - Ending 493,079 $ 230,162 $ 846,052 $ 1,065,152 $ REVENUE EXPENDITURES Fund 09 - Sanitation Fund 85 -- 85 of 206 -- 2026 BUDGET SANITATION FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 09-341-100 Interest Income 92,129 $ 80,566 $ 50,000 $ 55,000 $ 50,000 $ - 0.0% 92,129 $ 80,566 $ 50,000 $ 55,000 $ 50,000 $ - 0.0% 09-364-300 Solid Waste Collection Charges 4,932,229 $ 4,920,193 $ 5,800,000 $ 5,809,000 $ 5,808,000 $ 8,000 0.1% 09-364-310 Penalties and Interest 13,764 13,238 6,000 11,600 11,600 5,600 93.3% 09-364-510 Recycling Revenue 4,019 3,702 2,000 1,500 2,000 - 0.0% 4,950,012 $ 4,937,133 $ 5,808,000 $ 5,822,100 $ 5,821,600 $ 13,600 0.2% $ 5,042,141 $ 5,017,699 $ 5,858,000 $ 5,877,100 $ 5,871,600 13,600 0.2% ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 09-401-112 Salaries and Wages - $ - $ - $ - $ 38,000 $ 38,000 0.0% 09-401-192 FICA/Medicare - - - - 3,000 3,000 0.0% 09-401-196 Medical Insurance - - - - 5,500 5,500 0.0% - $ - $ - $ - $ 46,500 $ 46,500 0.0% 09-404-301 General Legal Services 168 $ (447) $ 500 $ 3,500 $ 5,000 $ 4,500 900.0% 168 $ (447) $ 500 $ 3,500 $ 5,000 $ 4,500 900.0% 09-427-112 Salaries and Wages 56,529 $ 59,172 $ 59,000 $ 42,470 $ 38,000 $ (21,000) -35.6% 09-427-180 Overtime Salaries 22,370 817 - - - - 0.0% 09-427-192 FICA/Medicare 4,594 4,637 4,000 3,770 3,000 (1,000) -25.0% 09-427-196 Medical Insurance 3,788 19,519 8,000 14,640 16,000 8,000 100.0% 09-427-198 Disability Insurance 65 247 500 - - (500) -100.0% 09-427-199 Group Life Insurance 122 83 500 - - (500) -100.0% 09-427-340 Advertising and Printing 80,829 7,706 5,000 - - (5,000) -100.0% 09-427-367 Garbage - Refuse Removal 5,029,445 5,185,707 5,250,000 5,196,000 5,515,000 265,000 5.0% 09-427-450 Contracted Services - 2,551 - 830 29,000 29,000 0.0% 5,197,742 $ 5,280,439 $ 5,327,000 $ 5,257,710 $ 5,601,000 $ 274,000 5.1% 09-483-195 Workers' Compensation 530 $ 624 $ 750 $ - $ - $ (750) -100.0% 530 $ 624 $ 750 $ - $ - $ (750) -100.0% $ 5,198,440 $ 5,280,616 $ 5,328,250 $ 5,261,210 $ 5,652,500 324,250 6.1% Income/(Loss) from Operations (156,299) $ (262,917) $ 529,750 $ 615,890 $ 219,100 $ TOTAL OPERATIONAL EXPENDITURES INTEREST EARNINGS SANITATION TOTAL OPERATIONAL REVENUE EXECUTIVE REVENUE EXPENDITURES LEGAL SERVICES SANITATION EMPLOYER PAID BENEFITS Fund 09 - Sanitation Fund 86 -- 86 of 206 -- Middletown Country Club Fund Fund Overview The Middletown Country Club Fund is an appropriated enterprise fund with revenues generated from the contract between Middletown Township and lessee Agro Golf. Built in 1941, the Country Club was purchased by the Township in 1986 to preserve the property as a recreational asset to the community. While the Township owns the Country Club, the daily operation and management of the facility is handled by Agro Golf. The current lease agreement with Agro Golf expires in December 2028. In 2020, the Township spent $140,000 to restore two greens on the golf course. For 2026, the Middletown Country Club budget will be $145,000, which includes depreciation expense. As an enterprise fund, capital investments are depreciated over many years instead of being incurred in full in the year of the investment. Though not shown in this document, the annual depreciation expense is lowering the liability carried on the balance sheet of this fund. Additionally, a feasibility study to assess the future of the Country Club is also planned in 2026. More information can be found in the Township’s annual audited financial statements. Fund Balance The projected 2026 beginning balance is expected to be $396,743. As there are additional expenses budgeted in 2026 the fund balance will decrease slightly to $329,543. Because depreciation is a non-cash expense, enterprise funds add it back to the fund balance to reflect actual funds available for use. Therefore, the change in the fund balance from year to year differs from the annual income/loss from operations by the amount of depreciation. 0 50,000 100,000 150,000 200,000 Middletown Country Club Revenues vs. Expenses 2016 to Present Revenue Expenses 87 -- 87 of 206 -- 2026 BUDGET COUNTRY CLUB FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Interest Earnings 9,857 $ 10,915 $ 4,000 $ 8,000 $ 4,000 $ - 0.0% Rents and Royalties 40,708 43,439 47,000 47,710 48,800 1,800 3.8% Total Revenue 50,565 $ 54,354 $ 51,000 $ 55,710 $ 52,800 $ 1,800 3.5% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Executive - $ - $ - $ 120,000 $ 120,000 0.0% Depreciation 32,917 32,917 35,000 33,000 25,000 (10,000) -28.6% Total Expenditures 32,917 $ 32,917 $ 35,000 $ 33,000 $ 145,000 $ 110,000 314.3% Income/(Loss) from Operations 17,648 $ 21,437 $ 16,000 $ 22,710 $ (92,200) $ (108,200) -676.3% Cash Balance - Beginning 236,114 $ 286,679 $ 341,033 $ 396,743 $ Cash Balance - Ending 286,679 $ 341,033 $ 396,743 $ 329,543 $ REVENUE EXPENDITURES Fund 10 - Middletown Country Club Fund 88 -- 88 of 206 -- 2026 BUDGET COUNTRY CLUB FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 10-341-100 Interest Income 9,857 $ 10,915 $ 4,000 $ 8,000 $ 4,000 $ - 0.0% 9,857 $ 10,915 $ 4,000 $ 8,000 $ 4,000 $ - 0.0% 10-342-510 Rent - Other 40,708 $ 43,439 $ 47,000 $ 47,710 $ 48,800 $ 1,800 3.8% 40,708 $ 43,439 $ 47,000 $ 47,710 $ 48,800 $ 1,800 3.8% $ 50,565 $ 54,354 $ 51,000 $ 55,710 $ 52,800 1,800 3.5% ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 10-401-450 Contracted Services - $ - $ - $ - $ 120,000 $ 120,000 0.0% - $ - $ - $ 120,000 $ 120,000 0.0% 10-493-800 Depreciation Expense 32,917 $ 32,917 $ 35,000 $ 33,000 $ 25,000 $ (10,000) -28.6% 32,917 $ 32,917 $ $ 35,000 $ 33,000 $ 25,000 (10,000) -28.6% $ 32,917 $ 32,917 $ 35,000 $ 33,000 $ 145,000 Income/(Loss) from Operations 17,648 $ 21,437 $ 16,000 $ 22,710 $ (92,200) $ TOTAL OPERATIONAL EXPENDITURES INTEREST EARNINGS RENTS AND ROYALTIES TOTAL OPERATIONAL REVENUE EXECUTIVE REVENUE EXPENDITURES DEPRECIATION EXPENSE Fund 10 - Middletown Country Club Fund 89 -- 89 of 206 -- Farm Fund Fund Overview The Farm Fund is an appropriated enterprise fund dealing with the operation of the Township-owned Styer Orchard and Styer Farm Market on the property. The orchard and market were purchased from the Styer family in 1997 to preserve the property as an agricultural and cultural asset to the community. The Township leased operations of the orchard and farm market to two separate private parties from the early 2000s to 2020. The market was renovated and reopened in late 2021. Since then, revenues have nearly tripled from this property. The Farm Fund carries a portion of Township management costs to reflect the time associated with overseeing the property. Farm Fund revenue, comprised primarily of rent from both elements of the property, was lower in 2021 due to the temporary vacancy of the farm market. Similarly, expenditures were higher due to necessary improvements made to the farm market, which was in an extreme state of disrepair. An old debt was cleared from the balance sheet in 2022, resulting in negative expenses. Rent payments are structured to increase in future years under the new lease agreements. Fund Balance The Farm Fund continues to grow a steady fund balance year-over-year. The projected 2026 beginning fund balance is expected to be $396,856 and will not change significantly. Because depreciation is a non-cash expense, enterprise funds add it back to the fund balance to reflect actual funds available for use. Therefore, the change in the fund balance from year to year differs from the annual income/loss from operations by the amount of depreciation. -150,000 -100,000 -50,000 0 50,000 100,000 150,000 200,000 Farm Fund Revenues vs. Expenses 2016 to Present Revenue Expenses 90 -- 90 of 206 -- 2026 BUDGET FARM FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Interest Earnings 55,518 $ 57,748 $ 1,000 $ 5,000 $ 1,000 $ - 0.0% Rents and Royalties 64,521 64,521 86,200 86,200 98,600 12,400 14.4% Total Revenue 120,039 $ 122,269 $ 87,200 $ 91,200 $ 99,600 $ 12,400 14.2% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Executive - $ - $ 41,000 $ - $ 46,500 $ 5,500 13.4% Legal Services - - 1,000 - 1,000 - 0.0% Recreation Administration - - - - 34,500 Buildings and Facilities Maintenance 424 7,859 2,000 540 2,000 - 0.0% Depreciation Expense 15,339 15,339 8,968 15,500 15,500 6,532 72.8% Bad Debt Expense - - - - - - 0.0% Total Expenditures 15,763 $ 23,198 $ 52,968 $ 16,040 $ 99,500 $ 46,532 87.8% Income/(Loss) from Operations 104,276 $ 99,071 $ 34,232 $ 75,160 $ 100 $ (34,132) -99.7% Cash Balance - Beginning 72,171 $ 191,786 $ 306,196 $ 396,856 $ Cash Balance - Ending 191,786 $ 306,196 $ 396,856 $ 412,456 $ REVENUE EXPENDITURES Fund 11 - Farm Fund 91 -- 91 of 206 -- 2026 BUDGET FARM FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 11-341-100 Interest Income 55,518 $ 57,748 $ 1,000 $ 5,000 $ 1,000 $ - 0.0% 55,518 $ 57,748 $ 1,000 $ 5,000 $ 1,000 $ - 0.0% 11-342-500 Rent 8,400 $ 8,400 $ 8,400 $ 8,400 $ 8,400 $ - 0.0% 11-342-510 Rent 56,121 56,121 77,800 77,800 90,200 12,400 15.9% 64,521 $ 64,521 $ 86,200 $ 86,200 $ 98,600 $ 12,400 14.4% $ 120,039 $ 122,269 $ 87,200 $ 91,200 $ 99,600 12,400 14.2% ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 11-401-112 Salaries and Wages - $ - $ 41,000 $ - $ 38,000 $ (3,000) -7.3% 11-401-192 FICA/Medicare - - - - 3,000 3,000 0.0% 11-401-196 Medical Insurance - - - - 5,500 5,500 0.0% 11-401-198 Disability Insurance - - - - - - 0.0% 11-401-199 Group Life Insurance - - - - - - 0.0% - $ - $ 41,000 $ - $ 46,500 $ 5,500 13.4% 11-404-301 General Legal Services - $ - $ 1,000 $ - $ 1,000 $ - 0.0% - $ - $ 1,000 $ - $ 1,000 $ - 0.0% 11-451-112 Salaries and Wages - $ - $ - $ - $ 25,000 $ 25,000 0.0% 11-451-192 FICA/Medicare - - - - 2,000 2,000 0.0% 11-451-196 Medical Insurance - - - - 7,500 7,500 0.0% 11-451-198 Disability Insurance - - - - - - 0.0% 11-451-199 Group Life Insurance - - - - - - 0.0% - $ - $ - $ - $ 34,500 $ 34,500 0.0% 11-454-220 Operating Supplies - $ - $ - $ - $ - $ - 0.0% 11-454-360 Utilities - - - - - - 0.0% 11-454-370 Repair and Maintenance 124 7,484 1,000 - 1,000 - 0.0% 11-454-450 Contracted Services 300 375 1,000 540 1,000 - 0.0% 424 $ 7,859 $ 2,000 $ 540 $ 2,000 $ - 0.0% 11-493-800 Depreciation Expense 15,339 $ 15,339 $ 8,968 $ 15,500 $ 15,500 $ 6,532 72.8% 15,339 $ 15,339 $ 8,968 $ 15,500 $ 15,500 $ 6,532 72.8% 11-493-915 Bad Debt Expense - $ - $ - $ - $ - $ - 0.0% - $ - $ - $ - $ - $ - 0.0% $ 15,763 $ 23,198 $ 52,968 $ 16,040 $ 99,500 46,532 87.8% Income/(Loss) from Operations 104,276 $ 99,071 $ 34,232 $ 75,160 $ 100 $ TOTAL OPERATIONAL EXPENDITURES INTEREST EARNINGS RENTS AND ROYALTIES TOTAL OPERATIONAL REVENUE LEGAL SERVICES EXECUTIVE REVENUE EXPENDITURES BUILDINGS AND FACILITY MAINTENANCE DEPRECIATION EXPENSE BAD DEBT EXPENSE RECREATION ADMINISTRATION Fund 11 - Farm Fund 92 -- 92 of 206 -- This page intentionally left blank. 93 -- 93 of 206 -- Stormwater Fund Fund Overview Started in 2025, the Stormwater Fund is an appropriated special revenue governmental fund which houses proceeds from the Township’s Stormwater Impact Fee. The Stormwater Impact Fee is assessed annually to all developed properties in the Township. The Fee is a flat $60 per household per year for single- family residential properties. All other developed properties pay a fee based upon the impervious surface area (IA), up to $6,000 per parcel per year. In 2025, the Board of Supervisors established the Stormwater Advisory Committee to provide long-term oversight of the Stormwater Fund and planned improvement projects. When paid by 100% of property owners, the Stormwater Impact Fee would generate nearly $1.8 million annually in revenue. Budgeted revenues for 2026 reflect anticipated actual collections. Unpaid Stormwater Impact Fees become a lien against the property and must be paid by the seller at the time of sale. This Fund also includes earned grant revenue for stormwater projects. Expenses of the Stormwater Fund include stormwater maintenance activities, such as replacing stormwater inlets and pipes, as well as large construction projects such as neighborhoods where new infrastructure is being installed and even projects that reduce pollutants from stormwater runoff. In 2026, planned projects include completion of a major underground stormwater infrastructure project in Langhorne Gables (currently underway at the time of this budget), as well as replacement of a culvert along Reetz Avenue and an improvement project near Hillside Avenue. The design of additional projects for future years is also planned in 2026. In addition, the Stormwater Impact Fee is funding the replacement of 50 inlets in 2026, which is three times the number replaced in a typical year before the Fee. The Stormwater Fund carries a portion of Township management costs to reflect the time required to administer the program. Actual hours of work performed by Public Works employees on stormwater maintenance and improvement operations will be carried by this fund. 94 -- 94 of 206 -- Operating Expense Changes for 2026: • Staffing – Five (5) Public Works Employees primarily for Stormwater $712,000 o Includes wages and fringe benefits • Increase Repairs and Preventative Maintenance $250,000 • Completion of Langhorne Gables, Reetz, and Hillside Aves. Projects $1,404,100 • Increase Inlet Replacements $160,000 Fund Balance As a new fund, the Stormwater Fund began 2025 with a fund balance of $0. The projected beginning balance for 2026 is expected to be $639,000; the projected ending balance is expected to be $306,100. It is expected that the fund balance will gradually increase over the course of several years and will be utilized as projects are designed and constructed. 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 2024 2025 Projected 2026 Budgeted Stormwater Fund Revenues vs. Expenses 2024 to Present Revenue Expenses 95 -- 95 of 206 -- 2026 BUDGET STORMWATER FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Interest Earnings - $ - $ 5,000 $ 5,000 $ 5,000 $ - 0.0% State Operating and Capital Grants - - 744,000 - 744,000 - 0.0% Stormwater Management Fee - - 1,790,427 1,600,000 1,749,000 (41,427) -2.3% Total Revenue - $ - $ 2,539,427 $ 1,605,000 $ 2,498,000 $ (41,427) -1.6% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Executive - $ - $ - $ - $ 46,500 $ Fee Collection - - 50,000 - 50,700 700 1.4% Legal Services - - - - 10,000 10,000 0.0% Stormwater Management - - 2,280,000 966,000 2,723,700 443,700 19.5% Total Operating Expenditures - $ - $ 2,330,000 $ 966,000 $ 2,830,900 $ 500,900 21.5% Interfund Transfers - $ - $ 200,000 $ - $ - $ (200,000) -100.0% Total Expenditures - $ - $ 2,530,000 $ 966,000 $ 2,830,900 $ 300,900 11.9% Income/(Loss) from Operations - $ - $ 9,427 $ 639,000 $ (332,900) $ (342,327) -3631.3% Fund Balance - Beginning - $ - $ - $ 639,000 $ Fund Balance - Ending - $ - $ 639,000 $ 306,100 $ REVENUE EXPENDITURES Fund 12 - Stormwater Fund 96 -- 96 of 206 -- 2026 BUDGET STORMWATER FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 12-341-100 Interest Income - $ - $ 5,000 $ 5,000 $ 5,000 $ - 0.0% - $ - $ 5,000 $ 5,000 $ 5,000 $ - 0.0% 12-354-010 General Government - $ - $ 744,000 $ - $ 744,000 $ - 0.0% - $ - $ 744,000 $ - $ 744,000 $ - 0.0% 12-360-100 Stormwater Fee - $ - $ 1,790,427 $ 1,600,000 $ 1,666,000 $ (124,427) -6.9% 12-360-400 Delinquent Stormwater Fee - - - - 83,000 83,000 0.0% - $ - $ $ 1,790,427 $ 1,600,000 $ 1,749,000 (41,427) -2.3% $ - $ - $ 2,539,427 $ 1,605,000 $ 2,498,000 (41,427) -1.6% ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 12-401-112 Salaries and Wages - $ - $ - $ - $ 38,000 $ 38,000 0.0% 12-401-192 FICA/Medicare - - - - 3,000 3,000 0.0% 12-401-196 Medical Insurance - - - - 5,500 5,500 0.0% - $ - $ - $ - $ 46,500 $ 46,500 0.0% 12-403-160 Commission - $ - $ 50,000 $ 50,000 $ 50,700 $ 700 1.4% - $ - $ 50,000 $ 50,000 $ 50,700 $ 700 1.4% 12-404-301 General Legal Services - $ - $ - $ - $ 10,000 $ 10,000 0.0% - $ - $ - $ - $ 10,000 $ 10,000 0.0% 12-446-112 Salaries and Wages - $ - $ - $ - $ 642,000 $ 642,000 0.0% 12-446-180 Overtime Salaries - - - - 19,000 19,000 0.0% 12-446-192 FICA/Medicare - - - - 50,600 50,600 0.0% 12-446-370 Repairs and Maintenance - - - - 250,000 250,000 0.0% 12-446-450 Contracted Services - - - - 198,000 198,000 0.0% 12-446-700 Capital Purchases - - 2,280,000 966,000 1,404,100 (875,900) -38.4% 12-446-720 Capital Maintenance - - - - 160,000 160,000 0.0% - $ - $ 2,280,000 $ 966,000 $ 2,723,700 $ 443,700 19.5% - $ - $ 2,330,000 $ 1,016,000 $ 2,830,900 $ 500,900 21.5% 12-492-950 Transfer to General Fund - $ - $ 200,000 $ - $ - $ (200,000) -100.0% - $ - $ 200,000 $ - $ - $ (200,000) -100.0% - $ - $ $ 2,530,000 $ 1,016,000 $ 2,830,900 300,900 11.9% Income/(Loss) from Operations - $ - $ 9,427 $ 589,000 $ (332,900) $ STORMWATER MANAGEMENT INTERFUND TRANSFERS TOTAL EXPENDITURES WITH TRANSFERS TOTAL OPERATIONAL EXPENDITURES STATE OPERATING & CAPITAL GRANTS LEGAL SERVICES EXECUTIVE EXPENDITURES INTEREST EARNINGS STORMWATER MANAGEMENT FEE TOTAL OPERATIONAL REVENUE REVENUE FEE COLLECTION Fund 12 - Stormwater Fund 97 -- 97 of 206 -- Debt Service Fund Fund Overview The Debt Service Fund pays off the Township’s debt, including principal (the original amount of the loan) plus interest, funded by a 5.115 mill (0.5115%) Real Estate Tax. This is an appropriated major special revenue governmental fund. Debt is incurred whenever the Township needs additional funding to offset major capital projects (such as infrastructure projects), or to refinance existing debts, as was done in 2021. The most common form of debt is through the issuance of bonds. The Series of 2020 General Obligation Bond was issued in the amount of $13,895,000, refunded $10 million of debt and issued additional debt for infrastructure improvements. The Township issued the Series of 2021 General Obligation Bond in the amount of $6,260,000 to refinance a Series of 2016 bond. Municipal notes are also paid from the Debt Service Fund. Payments on the LED Street Light Note are offset by an ongoing transfer from the Street Lighting Fund. Detailed debt service schedules are available under the “Debt” section of this document. While no additional debt is planned to be incurred in 2026, the Township may need to rely upon borrowed funds to support infrastructure improvements and capital purchases beyond 2026. Existing debts are scheduled to be retired in the coming years. Fund Balance The projected 2026 beginning balance is expected to be $533,763 and is not expected to change significantly. 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 Debt Service Fund Revenue vs Expenses 2016 to Present Revenue Expenses 98 -- 98 of 206 -- 2026 BUDGET DEBT SERVICE FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Real Property Taxes 2,658,303 $ 2,676,716 $ 2,675,000 $ 2,674,770 $ 2,676,500 $ 1,500 0.1% Interest Earnings 62,855 65,740 41,000 37,700 41,000 - 0.0% Total Operational Revenue 2,721,158 $ 2,742,456 $ 2,716,000 $ 2,712,470 $ 2,717,500 $ 1,500 0.1% Interfund Transfers 129,500 $ 129,500 $ 129,500 $ 129,500 $ 129,500 $ - 0.0% Total Revenue 2,850,658 $ 2,871,956 $ 2,845,500 $ 2,841,970 $ 2,847,000 $ 1,500 0.1% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Debt Principal 2,166,594 $ 2,269,955 $ 2,378,000 $ 2,378,000 $ 2,496,900 $ 118,900 5.0% Debt Interest 655,913 549,803 439,100 438,800 322,200 (116,900) -26.6% Fiscal Agent Fees 1,560 1,560 2,500 1,560 1,600 (900) -36.0% Total Expenditures 2,824,067 $ 2,821,318 $ 2,819,600 $ 2,818,360 $ 2,820,700 $ 1,100 0.0% Income/(Loss) from Operations 26,591 $ 50,638 $ 25,900 $ 23,610 $ 26,300 $ 400 1.5% Fund Balance - Beginning 432,924 $ 459,515 $ 510,153 $ 533,763 $ Fund Balance - Ending 459,515 $ 510,153 $ 533,763 $ 560,063 $ REVENUE EXPENDITURES Fund 23 - Debt Service Fund 99 -- 99 of 206 -- 2026 BUDGET DEBT SERVICE FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 23-301-100 Real Estate Taxes - Current YR 2,634,058 $ 2,642,080 $ 2,650,000 $ 2,648,270 $ 2,650,000 $ - 0.0% 23-301-300 Real Estate Taxes - Delinquent 24,245 34,636 25,000 26,500 26,500 1,500 6.0% 2,658,303 $ 2,676,716 $ 2,675,000 $ 2,674,770 $ 2,676,500 $ 1,500 0.1% 23-319-100 Penalties and Interest - R.E. Taxes 3,167 $ 8,067 $ 3,000 $ 2,700 $ 3,000 $ - 0.0% 3,167 $ 8,067 $ 3,000 $ 2,700 $ 3,000 $ - 0.0% 23-341-100 Interest Income 59,688 $ 57,673 $ 38,000 $ 35,000 $ 38,000 $ - 0.0% 59,688 $ 57,673 $ 38,000 $ 35,000 $ 38,000 $ - 0.0% TOTAL OPERATIONAL REVENUE 2,721,158 $ 2,742,456 $ 2,716,000 $ 2,712,470 $ 2,717,500 $ 1,500 0.1% 23-392-002 Transfer from Street Lighting Fund 129,500 $ 129,500 $ 129,500 $ 129,500 $ 129,500 $ - 0.0% 129,500 $ 129,500 $ 129,500 $ 129,500 $ 129,500 $ - 0.0% $ 2,850,658 $ 2,871,956 $ 2,845,500 $ 2,841,970 $ 2,847,000 1,500 0.1% ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 23-471-100 General Obligation Bond 2,055,000 $ 2,155,000 $ 2,260,000 $ 2,260,000 $ 2,375,000 $ 115,000 5.1% 23-471-400 General Obligation Notes 111,594 114,955 118,000 118,000 121,900 3,900 3.3% 2,166,594 $ 2,269,955 $ 2,378,000 $ 2,378,000 $ 2,496,900 $ 118,900 5.0% 23-472-100 General Obligation Bond 638,100 $ 535,350 $ 427,600 $ 427,600 $ 314,600 $ (113,000) -26.4% 23-472-400 General Obligation Notes 17,813 14,453 11,500 11,200 7,600 (3,900) -33.9% 655,913 $ 549,803 $ 439,100 $ 438,800 $ 322,200 $ (116,900) -26.6% 23-475-000 Fiscal Agent Fees 1,560 $ 1,560 $ 2,500 $ 1,560 $ 1,600 $ (900) -36.0% 1,560 $ 1,560 $ 2,500 $ 1,560 $ 1,600 $ (900) -36.0% $ 2,824,067 $ 2,821,318 $ 2,819,600 $ 2,818,360 $ 2,820,700 1,100 0.0% Income/(Loss) from Operations 26,591 $ 50,638 $ 25,900 $ 23,610 $ 26,300 $ REVENUE DEBT PRINCIPLE DEBT INTEREST FISCAL AGENT FEES TOTAL OPERATIONAL EXPENDITURES EXPENDITURES TOTAL REVENUE WITH TRANSFERS REAL PROPERTY TAXES PENALTIES AND INTEREST INTEREST EARNINGS INTERFUND TRANSFERS Fund 23 - Debt Service Fund 100 -- 100 of 206 -- This page intentionally left blank. 101 -- 101 of 206 -- Capital Fund Fund Overview The Capital Fund is an appropriated major special revenue governmental fund. Planned maintenance and improvement projects that do not have dedicated funding from another fund are expended from the Capital Fund. A schedule of specific projects proposed with detailed descriptions can be found in the “Capital Improvement Plan” section of this document. Projects that have previously been authorized and funds allocated to the Capital Fund are not expressly defined in the Capital Improvement Plan, but expenditures will occur in 2026. These projects include: (1) electric vehicle purchase for Building & Zoning Department; (2) guiderail installation; (3) School Zone Improvement Project; (4) Maple Avenue/N. Flowers Mill Road Signal Improvement Project; (5) Pedestrian Signal Equipment Upgrades; and (6) Langhorne- Yardley Road/Maple Point Pedestrian Crossing. No additional funds are being transferred for these projects. The Capital Fund does not have a dedicated revenue source and is funded year-to-year by interfund transfers, debt, and grant revenues. As of November 2025, more than $735,000 has been earned to offset 2026 capital projects. An additional $1.6 million in grant applications have been submitted and are awaiting response. Grants are not added to the budget until they are awarded. Transfers of $1,000,000 from the General Fund and $1,342,000 from the Investment Fund in 2026 are to support planned capital maintenance and capital improvement projects. The need for consistent funding the Capital Fund remains one of the top issues as it pertains to the Township’s overall financial position. Increased revenue from increasing the EIT will allow for increased transfers from the General Fund to the Capital Fund long- term. 102 -- 102 of 206 -- Fund Balance The fund balance of the Capital Fund fluctuates significantly based upon interfund transfers and earned grant revenue. The projected 2026 beginning fund balance is expected to be $1,986,224. The projected ending fund balance is $624. Grants that have not yet been earned but may support 2026 capital purchases will lessen the projected utilization of fund balance. 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 Capital Fund Revenues vs. Expenses 2016 to Present Revenue Expenses 103 -- 103 of 206 -- 2026 BUDGET CAPITAL FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Local Enabling Act Taxes - $ - $ - $ - - $ - 0.0% Interest Earnings 153,057 165,758 68,000 100,000 68,000 - 0.0% State Operating and Capital Grants 2,637,836 651,394 1,511,283 - 200,000 (1,311,283) -86.8% Local Operating and Capital Grants 1,098,778 674,185 - 489,475 536,500 536,500 0.0% Contributions from Private Sources 1,015,319 44,510 - - - - 0.0% All Other 12,100 74,477 76,530 - - (76,530) -100.0% Total Operating Revenue 4,917,090 $ 1,610,324 $ 1,655,813 $ 589,475 $ 804,500 $ (851,313) -51.4% Interfund Transfers 4,000,000 $ 2,400,000 $ - $ - $ 2,342,000 $ 2,342,000 0.0% Other Financing Sources - - - - - - 0.0% Total Revenue 8,917,090 $ 4,010,324 $ 1,655,813 $ 589,475 $ 3,146,500 $ 1,490,687 90.0% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Executive 42,000 $ 43,200 $ 42,000 $ 42,000 $ 43,000 $ 1,000 2.4% Information Technology 40,403 20,334 40,000 37,475 270,500 230,500 576.3% Buildings and Grounds 604,831 560,829 395,000 - 1,578,800 1,183,800 299.7% Police Services 509,414 501,869 657,000 658,000 510,000 (147,000) -22.4% Fire Protection Services 150,280 - 25,000 133,680 70,000 45,000 180.0% Building and Zoning 27,700 - - - 45,000 45,000 0.0% Public Works 5,514,275 3,454,505 1,080,000 750,000 410,800 (669,200) -62.0% Traffic Control Devices - - - - 1,225,000 1,225,000 0.0% Sidewalks and Crosswalks - - - - 979,000 979,000 0.0% Recreation Administration 678,518 742,462 1,270,000 900,000 - (1,270,000) -100.0% Total Expenditures 7,567,421 $ 5,323,199 $ 3,509,000 $ 2,521,155 $ 5,132,100 $ 1,623,100 46.3% Income/(Loss) from Operations 1,349,669 $ (1,312,875) $ (1,853,187) $ (1,931,680) $ (1,985,600) $ Fund Balance - Beginning 3,881,110 $ 5,230,779 $ 3,917,904 $ 1,986,224 $ Fund Balance - Ending 5,230,779 $ 3,917,904 $ 1,986,224 $ 624 $ REVENUE EXPENDITURES Fund 30 - Capital Fund 104 -- 104 of 206 -- 2026 BUDGET CAPITAL FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 30-310-800 Non-Res Bldg Permit Tax - $ - $ - $ - $ - $ - 0.0% - $ - $ - $ - $ - $ - 0.0% 30-341-100 Interest Income 153,057 $ 165,758 $ 68,000 $ 100,000 $ 68,000 $ - 0.0% 153,057 $ 165,758 $ 68,000 $ 100,000 $ 68,000 $ - 0.0% 30-354-010 General Government 2,637,836 $ 651,394 $ 1,511,283 $ - $ 200,000 $ (1,311,283) -86.8% 2,637,836 $ 651,394 $ 1,511,283 $ - $ 200,000 $ (1,311,283) -86.8% 30-357-010 General Government 220,960 $ 405,000 $ - $ 158,000 $ 7,500 $ 7,500 0.0% 30-357-020 Public Safety 246,510 185,305 - 17,000 - - - 30-357-030 Highway and Streets 541,678 68,090 - 314,475 529,000 529,000 - 30-357-040 Fire Protection Services 89,630 15,790 - - - - 0.0% 1,098,778 $ 674,185 $ - $ 489,475 $ 536,500 $ 30-387-100 Contributions and Donations 1,015,319 $ 44,510 $ - $ - $ - $ - 0.0% 1,015,319 $ 44,510 $ - $ - $ - $ - 0.0% 30-361-100 General Government - $ - $ 76,530 $ - $ - $ (76,530) -100.0% 30-383-200 Fee in Lieu of 12,100 60,000 - - - - - 30-389-100 Miscellaneous - - - - - - - 30-391-100 Sales of General Fixed Assets - 14,477 - - - - 0.0% 12,100 $ 74,477 $ 76,530 $ - $ - $ (76,530) -100.0% 4,917,090 $ 1,610,324 $ 1,655,813 $ 589,475 $ 804,500 $ (851,313) -51.4% 30-392-001 Transfer from General Fund 2,000,000 $ - $ - $ - $ 1,000,000 $ 1,000,000 0.0% 30-392-002 Transfer from Street Lighting Fund - - - - - - - 30-392-030 Transfer from Investment Fund 2,000,000 2,400,000 - - 1,342,000 1,342,000 0.0% 4,000,000 $ 2,400,000 $ - $ - $ 2,342,000 $ 2,342,000 0.0% 30-393-100 G.O. Bond and Note Proceeds - $ - $ - $ - $ - $ - 0.0% - $ - $ - $ - $ - $ - 0.0% $ 8,917,090 $ 4,010,324 $ 1,655,813 $ 589,475 $ 3,146,500 1,490,687 90.0% REVENUE ALL OTHER TOTAL OPERATIONAL REVENUE INTERFUND TRANSFERS OTHER FINANCING SOURCES TOTAL REVENUE WITH TRANSFERS LOCAL TAX ENABLING ACT 511 TAXES INTEREST EARNINGS STATE OPERATING & CAPITAL GRANTS LOCAL GOVERNMENT CAPITAL AND OPERATING CONTRIBUTIONS FROM PRIVATE SOURCES Fund 30 - Capital Fund 105 -- 105 of 206 -- 2026 BUDGET CAPITAL FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years . 30-401-450 Contracted Services 42,000 $ 43,200 $ 42,000 $ 42,000 $ 43,000 $ 1,000 2.4% 30-401-700 Capital Purchases - - - - - - 0.0% 42,000 $ 43,200 $ 42,000 $ 42,000 $ 43,000 $ 1,000 2.4% 30-407-700 Capital Purchases 40,403 $ 20,334 $ 40,000 $ 37,475 $ 150,000 $ 110,000 275.0% 30-407-720 Capital Maintenance - - - - 120,500 120,500 0.0% 40,403 $ 20,334 $ 40,000 $ 37,475 $ 270,500 $ 230,500 576.3% 30-409-700 Capital Purchases 604,831 $ 560,829 $ 395,000 $ - $ 50,000 $ (345,000) -87.3% 30-409-720 Capital Maintenance - - - - 1,528,800 1,528,800 0.0% 604,831 $ 560,829 $ 395,000 $ - $ 1,578,800 $ 1,183,800 299.7% 30-410-700 Capital Purchases 509,414 $ 501,869 $ 657,000 $ 658,000 $ - $ (657,000) -100.0% 30-410-720 Capital Maintenance - - - - 510,000 510,000 0.0% 509,414 $ 501,869 $ 657,000 $ 658,000 $ 510,000 $ (147,000) -22.4% 30-411-700 Capital Purchases 150,280 $ - $ 25,000 $ 133,680 $ - $ (25,000) -100.0% 30-411-720 Capital Maintenance - - - - 70,000 70,000 0.0% 150,280 $ - $ 25,000 $ 133,680 $ 70,000 $ 45,000 180.0% 30-413-700 Capital Purchases 27,700 $ - $ - $ - $ - $ - 0.0% 30-413-720 Capital Maintenance - - - - 45,000 45,000 0.0% 27,700 $ - $ - $ - $ 45,000 $ 45,000 0.0% 30-430-112 Salaries and Wages - $ - $ - $ - $ 154,000 $ 154,000 0.0% 30-430-192 FICA/Medicare - - - - 11,800 11,800 0.0% 30-430-700 Capital Purchases 5,367,894 3,069,316 1,080,000 400,000 150,000 (930,000) -86.1% 30-430-720 Capital Maintenance - - - - 95,000 95,000 0.0% 5,367,894 $ 3,069,316 $ 1,080,000 $ 400,000 $ 410,800 $ (669,200) -62.0% 30-433-700 Capital Purchases - $ - $ - $ - $ 1,075,000 $ 1,075,000 0.0% 30-433-720 Capital Maintenance - - - - 150,000 150,000 0.0% - $ - $ - $ - $ 1,225,000 $ 1,225,000 0.0% 30-435-700 Capital Purchases - $ - $ - $ - $ 979,000 $ 979,000 0.0% 30-435-720 Capital Maintenance - - - - - - 0.0% - $ - $ - $ - $ 979,000 $ 979,000 0.0% 30-436-700 Capital Purchases 146,381 $ 385,189 $ - $ 350,000 $ - $ - 0.0% 146,381 $ 385,189 $ - $ 350,000 $ - $ - 0.0% 30-451-700 Capital Purchases 678,518 $ 742,462 $ 1,270,000 $ 900,000 $ - $ (1,270,000) -100.0% 678,518 $ 742,462 $ 1,270,000 $ 900,000 $ - $ (1,270,000) -100.0% 30-471-000 Debt Principal - $ - $ - $ - $ - $ - 0.0% 30-472-000 Debt Interest - - - - - - - 30-475-901 Bond Issuance Cost - - - - - - 0.0% - $ - $ $ - $ - $ - - 0.0% $ 7,567,421 $ 5,323,199 $ 3,509,000 $ 2,521,155 $ 5,132,100 1,623,100 46.3% Income/(Loss) from Operations 1,349,669 $ (1,312,875) $ (1,853,187) $ (1,931,680) $ (1,985,600) $ TOTAL OPERATIONAL EXPENDITURES EXECUTIVE INFORMATION TECHNOLOGY BUILDINGS AND GROUNDS POLICE SERVICES FIRE PROTECTION SERVICES BUILDING AND ZONING PUBLIC WORKS STORM SEWERS AND DRAINS RECREATION ADMINISTRATION TRAFFIC CONTROL DEVICES SIDEWALKS AND CROSSWALKS EXPENDITURES ALL OTHER Fund 30 - Capital Fund 106 -- 106 of 206 -- Investment Fund Fund Overview In 2002, the Township sold its water and sewer facilities to the Bucks County Water and Sewer Authority for $40 million. This $40 million principal is now held in the Investment Fund, an appropriated major special revenue governmental fund. This principal balance is restricted by Township resolution which provides that only excess revenue over $40 million may be used. Investment income typically comes from certificates of deposit and fixed income securities, primarily US Treasury Bills. The Financial Advisory Committee is responsible for monitoring the performance of the Investment Fund. Investment and interest income from the Investment Fund may be transferred to other funds as needed. Market volatility resulted in investment losses in 2021 and 2022, but strong interest income and rebounding investments have yielded positive revenue since 2023. In 2026, anticipated gains from interest earnings and investments are driving revenue expectations, though interest income is expected to decline as rates are adjusted downward. A conservative revenue projection is programmed in the Investment Fund. Gains/(Losses) on investments are always budgeted at $0. Interfund transfers are the primary source of expenditures in the Investment Fund. A $2.4 million transfer to the Capital Fund was made in 2024 to support planned capital projects in 2025. A transfer of $1.3 million to the Capital Fund is budgeted in 2026. Fund Balance The fund balance of the Investment Fund reflects the $40 million principal, and earned interest and investment income. The projected 2026 beginning fund balance will be $40,976,306 and is expected to decrease minimally to $40,561,306 by the end of 2026. -1,500,000 -500,000 500,000 1,500,000 2,500,000 3,500,000 Investment Fund Revenue vs. Expenses 2016 to Present Revenue Expenses 107 -- 107 of 206 -- 2026 BUDGET INVESTMENT FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Interest Earnings 1,966,981 $ 1,740,440 $ 701,000 $ 921,338 $ 975,000 $ 274,000 39.1% Total Operational Revenue 1,966,981 $ 1,740,440 $ 701,000 $ 921,338 $ 975,000 $ 274,000 39.1% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Fiscal Agent Fees 45,218 $ 41,253 $ 47,500 $ 43,140 $ 48,000 $ 500 1.1% Total Operating Expenditures 45,218 $ 41,253 $ 47,500 $ 43,140 $ 48,000 $ 500 1.1% Interfund Transfers 2,000,000 $ 2,400,000 $ - $ - $ 1,342,000 $ 1,342,000 0.0% Total Expenditures 2,045,218 $ 2,441,253 $ 47,500 $ 43,140 $ 1,390,000 $ 1,342,500 2826.3% Income/(Loss) from Operations (78,237) $ (700,813) $ 653,500 $ 878,198 $ (415,000) $ (1,068,500) -163.5% Fund Balance - Beginning 40,877,158 $ 40,798,921 $ 40,098,108 $ 40,976,306 $ Fund Balance - Ending 40,798,921 $ 40,098,108 $ 40,976,306 $ 40,561,306 $ REVENUE EXPENDITURES Fund 32 - Investment Fund 108 -- 108 of 206 -- 2026 BUDGET INVESTMENT FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 32-341-100 Interest Income 973,258 $ 1,229,893 $ 700,000 $ 921,338 $ 975,000 $ 275,000 39.3% 32-341-400 Penalties and Interest - - 1,000 - - (1,000) (1) 32-341-500 Gain (Loss) On Investments 993,723 510,547 - - - - 0.0% 1,966,981 $ 1,740,440 $ $ 701,000 $ 921,338 $ 975,000 274,000 39.1% $ 1,966,981 $ 1,740,440 $ 701,000 $ 921,338 $ 975,000 ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 32-475-317 Administration Fees 45,218 $ 41,477 $ 47,500 $ 43,270 $ 48,000 $ 500 1.1% 45,218 $ 41,477 $ 47,500 $ 43,270 $ 48,000 $ 500 1.1% $ 45,218 $ 41,477 47,500 $ 43,270 $ 48,000 $ 500 1.1% 32-492-952 Transfer to Fire Protection - $ - $ - $ - $ - $ - 0.0% 32-492-958 Transfer to Capital Fund 2,000,000 2,400,000 - - 1,342,000 1,342,000 0.0% 2,000,000 $ 2,400,000 $ - $ - $ 1,342,000 $ 1,342,000 0.0% 32-404-301 General Legal - $ (224) $ - $ (130) $ - $ - 0.0% - $ (224) $ - $ (130) $ - $ - 0.0% $ 2,045,218 $ 2,441,253 $ 47,500 $ 43,140 $ 1,390,000 Income/(Loss) from Operations (78,237) $ (700,813) $ 653,500 $ 878,198 $ (415,000) $ TOTAL EXPENDITURES WITH TRANSFERS INTEREST EARNINGS TOTAL OPERATIONAL REVENUE FISCAL AGENT FEES REVENUE EXPENDITURES TOTAL OPERATIONAL EXPENDITURES INTERFUND TRANSFERS ALL OTHER Fund 32 - Investment Fund 109 -- 109 of 206 -- Highway Aid Fund Fund Overview The Highway Aid Fund is an appropriated special revenue governmental fund funded by the State Motor Vehicle Fuel Tax. The Township’s allocation of this tax revenue is based on population and road mileage. Allocations are gradually declining as vehicles consume less fuel through fuel efficiency or electrification. Expenses in this fund are limited to road and highway related projects and road machinery. Prior to 2026, the most consistent expense in the Highway Aid Fund was for the staff time spent by Public Works employees performing maintenance and repairs on roads and bridges. Periodically, contracted road repaving would be paid for from this fund, as was done in 2025. Beginning in 2026, this fund will no longer carry the cost of staff time and instead will be primarily used for contracted road repaving. In 2026, a total of $2,000,000 in road repaving is planned, expected to improve more than nine (9) miles of Township-owned roads in the Levittown section of Middletown Township. The total 2026 Highway Aid Fund budget is $2,568,000 Fund Balance The Highway Aid Fund has a healthy fund balance due to several years of spending less than was brought in. The Road Improvement Program is expected to utilize most of the accumulated fund balance. The projected 2026 beginning fund balance of the Highway Aid Fund is expected to be $1,491,550 and is expected to be reduced to $187,450 by the end of 2026. 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 Highway Aid Fund Revenues vs. Expenses 2016 to Present Revenue Expenses 110 -- 110 of 206 -- 2026 BUDGET HIGHWAY AID FUND SUMMARY DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Interest Earnings 75,114 $ 74,628 $ 38,000 $ 36,000 $ 38,000 $ - 0.0% Intergovernmental Revenue 1,279,416 1,270,302 1,245,924 1,272,748 1,225,900 (20,024) -1.6% Total Operational Revenue 1,354,530 $ 1,344,930 $ 1,283,924 $ 1,308,748 $ 1,263,900 $ (20,024) -1.6% DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years Public Works 494,981 $ 755,473 $ 1,124,300 $ 954,151 $ 515,000 $ (609,300) -54.2% Fleet Maintenance Services 204,630 227,664 231,000 322,888 53,000 (178,000) -77.1% Highway Construction - 623,458 552,000 33,560 2,000,000 1,448,000 262.3% Total Operational Expenditures 699,611 $ 1,606,595 $ 1,907,300 $ 1,310,599 $ 2,568,000 $ 660,700 34.6% Income/(Loss) from Operations 654,919 $ (261,665) $ (623,376) $ (1,851) $ (1,304,100) $ (680,724) 109.2% Fund Balance - Beginning 1,100,147 $ 1,755,066 $ 1,493,401 $ 1,491,550 $ Fund Balance - Ending 1,755,066 $ 1,493,401 $ 1,491,550 $ 187,450 $ REVENUE EXPENDITURES Fund 35 - Highway Aid Fund 111 -- 111 of 206 -- 2026 BUDGET HIGHWAY AID FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 35-341-100 Interest Income 75,114 $ 74,628 $ 38,000 $ 36,000 $ 38,000 $ - 0.0% 75,114 $ 74,628 $ 38,000 $ 36,000 $ 38,000 $ - 0.0% 35-351-050 Motor Vehicle Fuel Taxes 1,277,416 $ 1,268,302 $ 1,243,924 $ 1,270,748 $ 1,223,900 $ (20,024) -1.6% 35-351-055 State Road Turnback Payments 2,000 2,000 2,000 2,000 2,000 - 0.0% 1,279,416 $ 1,270,302 $ $ 1,245,924 $ 1,272,748 $ 1,225,900 (20,024) -1.6% $ 1,354,530 $ 1,344,930 $ 1,283,924 $ 1,308,748 $ 1,263,900 (20,024) -1.6% REVENUE INTEREST EARNINGS INTERGOVERNMENTAL REVENUE TOTAL OPERATIONAL REVENUE Fund 35 - Highway Aid Fund 112 -- 112 of 206 -- 2026 BUDGET HIGHWAY AID FUND ACCOUNT NUMBER DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 BUDGET 2025 PROJECTION 2026 BUDGET $ Change Budget Years % Change Budget Years 35-430-260 Minor Equipment - $ - $ - $ - $ 20,000 $ 20,000 0.0% 35-430-700 Major Equipment - - - - 135,000 135,000 0.0% - $ - $ - $ - $ 155,000 $ 155,000 0.0% 35-431-112 Salaries and Wages 656 $ 1,148 $ 1,000 $ 29,240 $ - $ (1,000) -100.0% 35-431-192 FICA/Medicare 50 84 500 1,440 - (500) -100.0% 706 $ 1,232 $ 1,500 $ 30,680 $ - $ (1,500) -100.0% 35-432-112 Salaries and Wages 605 $ 32,497 $ 44,000 $ 38,455 $ - $ (44,000) -100.0% 35-432-180 Overtime Salaries 540 48,012 71,000 76,695 - (71,000) -100.0% 35-432-192 FICA/Medicare 443 5,868 4,000 10,400 - (4,000) -100.0% 35-432-220 Operating Supplies (136) 66,233 160,000 200,000 200,000 40,000 25.0% 35-432-450 Contracted Services - - 5,000 - - (5,000) -100.0% 1,452 $ 152,610 $ 284,000 $ 325,550 $ 200,000 $ (84,000) -29.6% 35-433-112 Salaries and Wages 99,706 $ 91,137 $ 111,000 $ 98,810 $ - $ (111,000) -100.0% 35-433-180 Overtime Salaries 475 499 1,000 560 - (1,000) -100.0% 35-433-192 FICA/Medicare 7,726 6,854 9,000 7,490 - (9,000) -100.0% 35-433-220 Operating Supplies 11,545 11,839 25,000 12,570 14,000 (11,000) -44.0% 35-433-360 Utilities 1,906 734 800 590 1,000 200 25.0% 35-433-450 Contracted Services 43,981 88,567 120,000 60,000 100,000 (20,000) -16.7% 165,339 $ 199,630 $ 266,800 $ 180,020 $ 115,000 $ (151,800) -56.9% 35-436-112 Salaries and Wages 98,432 $ 158,345 $ 141,000 $ 109,320 $ - $ (141,000) -100.0% 35-436-180 Overtime Salaries 1,338 1,650 3,000 550 - (3,000) -100.0% 35-436-192 FICA/Medicare 8,222 12,146 14,000 8,260 - (14,000) -100.0% 35-436-220 Operating Supplies 3,873 13,342 20,000 46,020 - (20,000) -100.0% 35-436-450 Contracted Services - 810 100,000 280 - (100,000) -100.0% 111,865 $ 186,293 $ 278,000 $ 164,430 $ - $ (278,000) -100.0% 35-437-112 Salaries and Wages 114,946 $ 142,364 $ 130,000 $ 225,712 $ - $ (130,000) -100.0% 35-437-180 Overtime Salaries 15,384 17,031 15,000 18,790 - (15,000) -100.0% 35-437-192 FICA/Medicare 11,413 12,214 11,000 20,470 - (11,000) -100.0% 35-437-220 Operating Supplies 46,495 45,073 55,000 46,176 43,000 (12,000) -21.8% 35-437-450 Contracted Services 16,392 10,982 20,000 11,740 10,000 (10,000) -50.0% 204,630 $ 227,664 $ 231,000 $ 322,888 $ 53,000 $ (178,000) -77.1% 35-438-112 Salaries and Wages 172,522 $ 172,522 $ 198,000 $ 164,280 $ - $ (198,000) -100.0% 35-438-180 Overtime Salaries 10,118 24,114 39,000 37,620 - (39,000) -100.0% 35-438-192 FICA/Medicare 14,629 14,729 17,000 15,980 - (17,000) -100.0% 35-438-220 Operating Supplies 17,825 4,343 20,000 11,586 10,000 (10,000) -50.0% 35-438-450 Contracted Services 525 - 20,000 24,005 35,000 15,000 75.0% 215,619 $ 215,708 $ 294,000 $ 253,471 $ 45,000 $ (249,000) -84.7% 35-439-220 Operating Supplies - $ - $ 2,000 $ - $ - $ (2,000) -100.0% 35-439-450 Contracted Services - 623,458 550,000 33,560 2,000,000 1,450,000 263.6% - $ 623,458 $ $ 552,000 $ 33,560 $ 2,000,000 1,448,000 262.3% $ 699,611 $ 1,606,595 $ 1,907,300 $ 1,310,599 $ 2,568,000 660,700 34.6% Income/(Loss) from Operations 654,919 $ (261,665) $ (623,376) $ (1,851) $ (1,304,100) $ TOTAL OPERATIONAL EXPENDITURES SNOW AND ICE REMOVAL TRAFFIC CONTROL DEVICES STORM SEWERS AND DRAINS FLEET MAINTENANCE SERVICES ROAD AND BRIDGE MAINTENANCE HIGHWAY CONSTRUCTION AND REBUILDING EQUIPMENT EXPENDITURES CLEANING OF STREETS AND GUTTERS Fund 35 - Highway Aid Fund 113 -- 113 of 206 -- Projections Making estimates of revenues and expenditures is a critical task and goal of budgeting. Some budget projections can be made through simple calculations while others require more analysis and interpretation. In preparing this budget, many typical methods used to project revenues and expenditures were supplemented by other means due to unique influencing factors such as recovery from the pandemic, rampant inflation, rising interest rates, strong tax revenue, and community development. Many of the Township’s key revenue sources ended up outperforming expectations while others fell in line with past performance. Real estate tax revenue can be projected largely through mathematics, as it is levied in millage (1 mill = 0.1% of a home’s assessed value). Each type of real estate tax has its own millage. To calculate the real estate tax income per fund, one would use the following calculation: Total Township Assessed Value x Millage = Total possible tax collected - 2% to 5% of uncollectable taxes = Total projected tax collected Because taxes are not automatically collected, there is always a small percentage of residents who do not pay their taxes. While these individuals’ taxes become delinquent, the Township cannot use uncollectable taxes in projecting revenues. This percentage, typically about 2%, allows Township administrators to realistically predict revenues. Collections fluctuate as changes in total Township assessed value and millage occur. Development is expecting to marginally increase the Township’s total assessed value. Other types of taxes, such as the Earned Income Tax (EIT) are predicted through trend analysis while reviewing economic conditions such as unemployment. The Township’s prior trends and other communities’ trends are considered in these analyses. With a proposed rate increase taking effect in early 2026, Keystone Collections, the EIT administrator for Bucks County municipalities, is projecting partial-year collections, with a full year of collections at the new rate assumed beginning in 2027. The strong commercial real estate and housing markets drove the near record revenues in 2021 and 2022 from the Real Estate Transfer Tax. The housing market stabilized due to high interest rates, though values remain at all-time highs. A small increase to Real Estate Transfer Tax revenue is expected in future years as newly-constructed residential 114 -- 114 of 206 -- dwellings are finished and sold to homebuyers. Commercial real estate transfers have stabilized in recent years. Changes in interest rates may impact this revenue source. Non-tax forms of revenue such as permit fees and program fees are based off trend analyses and planned adjustments to fees. These revenue sources can and often do fluctuate in direct correlation to the economy. Construction on the apartment development at the Oxford Valley Mall has driven past revenues. This trend is expected to continue in 2026 with several planned townhome developments. A high number of permits for existing residential properties is expected to continue in 2026. Projecting expenditures is somewhat more complex than projecting revenues. Expenditures are projected more heavily on past trends, with planned changes in services and staffing incorporated. Rather than simply adding a set percentage to all line items of the budget, Middletown Township works with staff and department directors to determine likely costs for the coming year with prior years’ numbers and any significant anticipated differences. Allocating changes in expenditures this way allows for changes in service to be determined more carefully. The Township places a strong emphasis on tracking expenses in their true categories so projections in subsequent years are based upon accurate data. Staff salaries and wages are calculated individually for each employee classification. Raises are applied as directed by the applicable collective bargaining agreement (CBA) for each union, or as directed by the Board of Supervisors for non-union employees. In 2025, the Township negotiated new collective bargaining agreements with the Crossing Guards Association taking effect in 2026. Collective bargaining agreements for the other three unions, the Police Benevolent Association (PBA), Teamsters Local 107, and Public Works Association, have CBAs expiring in 2027. Other personnel-related costs like insurances and the minimum municipal obligation (MMO) are based upon renewals from insurance providers and calculations from the Township actuary. Retirements, resignations, and additions are all considered in projecting expenditures for the upcoming year. The Township periodically releases requests for proposals for contracted services to ensure quality service and that fees paid are reflective of the market. In early 2026, the Township will be seeking proposals to identify a pension investment manager that is focused on maximizing returns with competitive fees. Grants are not recorded into the budget until they are earned or awarded. Grants that have been applied for, but not yet received, are accounted for in the Capital Improvement Plan section of the budget. For smaller, high-priority projects, the Township tries to budget for them in case grant funding is not awarded. 115 -- 115 of 206 -- This page intentionally left blank. 116 -- 116 of 206 -- Revenues Middletown Township’s revenues are generally derived from one of two sources: taxes and fees for services. As a second-class township, Middletown Township has the legal authority to tax for the purposes of financing municipal services. Residents and businesses in Middletown Township are subject to three different, independent local taxing authorities: Middletown Township, Bucks County, and Neshaminy School District. The Township, County, and School District have the ability to tax a variety of assets and transactions, usually regulated with limitations by the Commonwealth of Pennsylvania. Municipalities and school districts are also empowered by Act 511 of 1965 to levy additional taxes. The elected Middletown Township Tax Collector collects all Real Estate Taxes and the Per Capita Tax. The Bucks County Recorder of Deeds processes all transfers of commercial and residential real estate in Bucks County. Additionally, the Township contracts with two firms to perform collections of its Act 511 taxes. Keystone Collections Group collects the Earned Income Tax (EIT) for Middletown Township and all other municipalities in Bucks County. Berkheimer collects the Local Services Tax (LST), Mercantile Tax, Amusement Tax, and Parking Transaction Fee. Berkheimer also collects the Stormwater Impact Fee on behalf of the Township. Fees are collected by the firms at different rates for each tax in accordance with the chart below. Fees-for-services are mandatory and/or based upon utilization. For example, the solid waste and recycling fee and fire inspection fees are charged consistently to all applicable residents and businesses, while recreation program fees and building inspection and permit fees are only charged when those services are utilized. Mandatory fees are to ensure a clean, safe quality of life to all members of the community. Assessing fees based on utilization allows for the specialized services provided to the community by the Township to be financed by the people and businesses that utilize them. Additionally, charging fees for certain services allows for revenue from taxpayers to be focused on essential services, such as policing, fire protection, and road maintenance. Most fees- for-service are collected directly by Middletown Township. Collection Firm Tax/Fee Type Commission Collected Berkheimer Local Services Tax 1.75% Berkheimer Mercantile Tax 2.25% Berkheimer Amusement Tax 0.00% Berkheimer Parking Transaction Fee 0.00% Berkheimer Stormwater Impact Fee $1.50/bill Keystone Collections Group Earned Income Tax 1.34% Bucks County Recorder of Deeds Real Estate Transfer Tax 2.00% 117 -- 117 of 206 -- Real Estate Taxes Middletown Township residents pay real estate taxes to three different local government authorities: Middletown Township, Neshaminy School District, and Bucks County. Real estate taxes are calculated by multiplying assessed value by a millage rate. One mill equals 0.1% of the assessed value of a property and its improvements. The 2026 budget proposes a net increase of 6.08 mills across all funds, for a combined tax rate of 25.105 mills. The following tax rate changes are proposed: • Fire Protection Fund – 3.080 mill increase (2026 total: 5.000 mills) • Fire Apparatus Fund – 1.420 mill increase (2026 total: 2.500 mills) • Ambulance & Rescue Fund – 0.300 mill increase (2026 total: 0.740 mills) • Parks & Recreation Fund – 1.580 mill increase (2026 total: 3.500 mills) • General Fund – 0.300 mill decrease (2026 total: 7.025 mills) The Township last raised the Real Estate Tax by 1.455 mills across the Fire Protection Fund and Fire Apparatus Fund in 2024. Prior to this, Middletown Township had not raised Real Estate Taxes since 2010. The allocation of the Township’s real estate taxes among funds has shifted incrementally in previous years without increasing the overall rate. Of the Township’s three taxing authorities, Middletown Township collects the least from what residents pay in Real Estate Taxes. At the proposed 2026 rate, residents of Middletown Township only pay 10.3% of their real estate taxes to the Township. The remaining 89.7% is split between Bucks County (11.3%) and Neshaminy School District (78.4%). Neshaminy School District currently levies 190.214 mills and Bucks County levies 27.45 mills. Both entities increased real estate taxes at least once since 2024. The numbers in the table below reflect rates as of November 2024. Bucks County and Neshaminy School District numbers are subject to change as they are not determined by Middletown Township. In 2026, residents will pay a combined real estate tax rate of 242.769 mills. Neshaminy School District (78.4%) Bucks County (11.3%) Middletown Township (10.3%) 118 -- 118 of 206 -- Year Combined Township Assessed Value Middletown Township Neshaminy School District Bucks County Total Real Estate Millage 2026 $ 528,713,910 25.105 190.214 27.45000 242.76900 2025 530,042,900 19.025 190.214 27.45000 236.68900 2024 529,564,690 19.025 181.675 27.45000 228.15000 2023 528,209,050 17.570 171.230 25.45000 214.25000 2022 527,924,290 17.570 171.230 25.45000 214.25000 2021 527,682,210 17.570 165.600 25.45000 208.62000 2020 527,288,950 17.570 163.100 24.45000 205.12000 2019 530,697,360 17.570 163.100 24.45000 205.12000 2018 531,237,950 17.570 159.500 24.45000 201.52000 2017 531,487,260 17.570 155.800 23.20000 196.57000 2016 530,541,620 17.570 152.000 23.20000 192.77000 2015 530,073,610 17.570 152.000 23.20000 192.77000 2014 527,666,530 17.570 152.000 23.20000 192.77000 2013 528,103,540 17.570 152.000 23.20000 192.77000 2012 529,526,770 17.570 152.000 23.20000 192.77000 2011 529,169,685 17.570 152.000 21.94211 191.51211 2010 529,215,470 17.570 152.000 21.94211 191.51211 2009 530,222,610 15.840 148.600 21.94211 186.38211 2008 529,440,660 14.840 148.600 21.94211 185.38211 2007 532,427,760 13.340 142.300 21.94211 177.58211 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00 200.00 Real Estate Tax Millage - Trend Over Time Middletown Township Neshaminy School District Bucks County 119 -- 119 of 206 -- The combined assessed values of all properties in Middletown Township for 2026 will be $528,713,910. This figure represents the tax base for real estate taxes. Since 2007, the total combined assessed value of all properties in Middletown Township has decreased by 0.7%. While new development and redevelopment causes this number to increase, appeals by large properties petitioning for a lower tax liability has consistently offset any increases. For example, during this period of time, the combined parcels that comprise the Oxford Valley Mall have reduced in taxable value from $18,210,060 (2009) to $4,110,340 (2025), a 78% reduction. The market value and assessed value of a property are very different in Bucks County. The market value of a property reflects what a typical buyer would pay for a property. The assessed value of a property is determined by the Bucks County Board of Assessment and is the value that determines the amount paid in real estate taxes. Bucks County assesses all Township properties to determine an assessed property value based on the value of the land and any of its structures. Total real estate taxes paid are calculated as millage, multiplied by assessed property value. Because Bucks County has not reassessed properties since 1972, the assessed value of a property is significantly less than the market value of their property. In an effort to narrow this gap in 2004, the State Tax Equalization Board adjusted the Common Level Ratio (CLR) in Bucks County to account for the relatively unchanged assessed value of homes. As a result, the assessed value of homes went up while tax rates declined, resulting in residents paying the same amount as before. Adjustments to the CLR allow for current economic conditions to be fairly reflected for taxing purposes. The CLR bridges the gap between a property’s market value and its assessed value. It is especially important for new construction as it allows a newer structure to have a comparable assessed value to existing structures. The CLR is also very useful when comparing tax rates to jurisdictions in other counties. 500,000,000 510,000,000 520,000,000 530,000,000 540,000,000 550,000,000 Combined Township Assessed Value by Year 120 -- 120 of 206 -- Tax Levy Summary Of the 25.105 mills to be levied on real estate by the Township in 2026, most of the revenue is earmarked for specific purposes. Approximately 28% of real estate tax revenue is for the General Fund, meaning it can be spent on general operating expenses, such as public safety. 20% is used for repaying debt. 52% is utilized for special revenue funds, or funds that serve a specific governmental purpose. Enabled by the Second-Class Township Code, Middletown Township levies taxes for seven special revenue funds: street lighting, fire protection, parks & recreation, ambulance & rescue, road machinery, fire hydrants, and fire apparatus. All proposed Real Estate Tax increases in 2026 are for special revenue funds. The chart below shows how Middletown Township will allocate real estate taxes in 2026. Changes are proposed to the General, Fire Protection, Parks & Recreation, Ambulance & Rescue, and Fire Apparatus Funds. GENERAL STREET LIGHT FIRE PROT. PARKS & REC AMBUL. & RESCUE ROAD MACH. FIRE HYDRANT FIRE APP. DEBT SERVICE YEAR FUND FUND FUND FUND FUND FUND FUND FUND FUND TOTAL 2026 7.025 0.788 5.000 3.500 0.740 0.300 0.137 2.500 5.115 25.105 2025 7.325 0.788 1.920 1.920 0.440 0.300 0.137 1.080 5.115 19.025 2024 7.325 0.788 1.920 1.920 0.440 0.300 0.137 1.080 5.115 19.025 2023 7.325 0.788 0.920 1.920 0.440 0.300 0.137 0.625 5.115 17.570 2022 7.325 0.788 0.920 1.920 0.440 0.300 0.107 0.625 5.145 17.570 2021 7.325 0.788 0.920 1.920 0.440 0.300 0.107 0.625 5.145 17.570 2020 7.125 0.988 0.920 1.920 0.440 0.300 0.107 0.625 5.145 17.570 2019 7.125 0.988 0.920 1.920 0.440 0.300 0.107 0.625 5.145 17.570 2018 7.125 0.988 0.920 1.920 0.440 0.300 0.107 0.625 5.145 17.570 2017 7.125 0.988 0.920 1.920 0.440 0.300 0.107 0.625 5.145 17.570 2016 7.340 0.988 0.750 1.920 0.395 0.300 0.107 0.625 5.145 17.570 2015 7.340 0.988 0.750 1.920 0.395 0.300 0.107 0.625 5.145 17.570 2014 7.340 0.988 0.750 1.620 0.395 0.300 0.107 0.625 5.445 17.570 2013 7.340 0.988 0.750 1.620 0.395 0.300 0.107 0.625 5.445 17.570 2012 7.340 0.988 0.750 1.620 0.395 0.300 0.107 0.625 5.445 17.570 2011 7.485 0.988 0.750 1.620 0.395 0.300 0.107 0.625 5.300 17.570 2010 7.000 0.800 0.750 1.620 0.395 0.300 0.080 0.625 6.000 17.570 2009 7.000 0.700 0.750 1.620 0.395 0.300 0.070 0.625 4.380 15.840 121 -- 121 of 206 -- Real Estate Tax Revenue by Fund The value of a mill is based upon the total assessed value of all properties in the Township. In 2026, the value of one mill is calculated to be approximately $520,783. The revenue for each fund is calculated based upon this number, less a small amount for anticipated uncollectable taxes. In total, $13,006,000 is expected in real estate tax revenue for 2026, approximately $4.1 million more in revenue across all funds than was received in 2025, due to the total proposed 6.08 mill increase. Real Estate Tax revenue per mill has decreased slightly since 2025 due to recent assessment appeals. Over the last 20 years, the average amount of real estate tax revenue generated per mill has remained relatively unchanged. Fund Estimated 2026 Assessed Value (Less Appeals, Adjustments, and Uncollectable) 2026 Tax Levy Estimated Tax Revenue General Fund 528,713,910 7.0250 3,640,000 Street Lighting Fund 528,713,910 0.7880 408,000 Fire Protection Fund 528,713,910 5.0000 2,591,000 Parks & Rec Fund 528,713,910 3.5000 1,813,000 Ambulance & Rescue Fund 528,713,910 0.7400 383,000 Road Machinery Fund 528,713,910 0.3000 155,000 Fire Hydrant Fund 528,713,910 0.1370 71,000 Fire Apparatus Fund 528,713,910 2.5000 1,295,000 Debt Service Fund 528,713,910 5.1150 2,650,000 TOTAL - ALL FUNDS 528,713,910 25.1050 13,006,000 $500,000 $510,000 $520,000 $530,000 $540,000 $550,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Value of 1 Mill - Over Time 122 -- 122 of 206 -- Bucks County Real Estate Tax Comparison Residents of Middletown Township will pay a combined total of 242.77 mills in Real Estate Taxes to Neshaminy School District, Bucks County, and Middletown Township in 2026. Due primarily to school district taxes, Middletown Township will have the 3 rd highest combined millage rate of townships in Bucks County (behind Bristol Township and Lower Makefield Township), as noted in the chart. As for Township-only Real Estate Taxes, Middletown Township ranks 5 th in Bucks County. Rank Township Twp Millage* School District SD Millage** County Millage** Total Millage 1 Bristol 24.98 Bristol Twp 226.74 27.45 279.17 2 Lower Makefield 24.95 Pennsbury 204.00 27.45 256.40 3 Middletown 25.11 Neshaminy 190.21 27.45 242.77 4 Falls 8.97 Pennsbury 204.00 27.45 240.42 5 Lower Southampton 16.33 Neshaminy 190.21 27.45 233.99 6 Bensalem 23.00 Bensalem 181.33 27.45 231.78 7 Upper Southampton 27.66 Centennial 172.66 27.45 227.77 8 Warminster 24.06 Centennial 172.66 27.45 224.17 9 Richland 13.55 Quakertown 175.65 27.45 216.65 10 Haycock 6.00 Quakertown 175.65 27.45 209.10 11 Milford 2.00 Quakertown 175.65 27.45 205.10 12 Northampton 32.50 Council Rock 144.90 27.45 204.85 13 Warrington 25.79 Central Bucks 146.55 27.45 199.79 14 Doylestown 21.85 Central Bucks 146.55 27.45 195.85 15 New Britain 16.00 Central Bucks 146.55 27.45 190.00 16 Warwick 15.25 Central Bucks 146.55 27.45 189.25 17 Plumstead 14.94 Central Bucks 146.55 27.45 188.94 18 Wrightstown 13.50 Council Rock 144.90 27.45 185.85 19 Newtown 13.12 Council Rock 144.90 27.45 185.46 20 East Rockhill 12.24 Pennridge 140.19 27.45 179.87 21 Upper Makefield 6.45 Council Rock 144.90 27.45 178.80 22 Buckingham 4.75 Central Bucks 146.55 27.45 178.75 23 Hilltown 8.75 Pennridge 140.19 27.45 176.39 24 Bedminster 7.50 Pennridge 140.19 27.45 175.14 25 West Rockhill 7.25 Pennridge 140.19 27.45 174.89 26 Solebury 25.91 NH/Solebury 120.51 27.45 173.87 27 Springfield 17.00 Palisades 120.40 27.45 164.85 28 Tinicum 8.50 Palisades 120.40 27.45 156.35 29 Durham 8.00 Palisades 120.40 27.45 155.85 30 Nockamixon 7.00 Palisades 120.40 27.45 154.85 31 Bridgeton 6.00 Palisades 120.40 27.45 153.85 *Except for Middletown Township, millage rates are as of 2025 and do not reflect potential increases for 2026. **Neshaminy School District and Bucks County millage rates are subject to change and may change by the coming budget year. 123 -- 123 of 206 -- Of the four townships levying higher real estate taxes than Middletown Township, Northampton Township (32.50 mills) is the only direct neighbor to Middletown Township. Upper Southampton Township (27.66 mills), Solebury Township (25.91 mills), and Warrington Township (25.79 mills) are a few miles to the west and north of Middletown Township. Several of the municipalities with the highest real estate tax rates in Bucks County have increased real estate taxes in recent years to pay for changes or expansions in fire protection services. 32.50 27.66 25.91 25.79 25.11 24.98 24.95 24.06 23.00 21.85 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 Township RE Millage Rates in Bucks Co. (Top 10, 2026) 124 -- 124 of 206 -- Greater Philadelphia Real Estate Tax Comparison Because of Middletown’s size, demographic composition, and economic vibrancy, there are few municipalities in Bucks County that are comparable for tax purposes. Home to a large mall, hospital, and amusement park, a community like Middletown has a greater draw on public services, and tax rates often reflect this reality. Looking at other similar municipalities in neighboring Montgomery and Delaware Counties, several others are comparable on a tax basis. County Boards of Assessment are responsible for determining assessed (taxable) values of properties since they are not tied to inflation or the economy like market values are. Because counties reassess (or do not reassess) at different times, the Common Level Ratio (CLR) is used in Pennsylvania to compare tax rates and true values across jurisdictions. CLR factors are determined annually in July by the Pennsylvania Department of Revenue. Rank Township County Township Millage School District Millage County Millage Total Millage Common Level Ratio Factor Effective Twp. Millage Effective Total Millage 1 Cheltenham Montgomery 9.9552 54.7700 5.6420 70.3672 3.25 3.0631 21.6514 2 Haverford Delaware 4.5450 19.6509 3.8730 28.0689 1.74 2.6121 16.1316 3 Upper Moreland Montgomery 7.3090 39.5138 5.6420 52.4648 3.25 2.2489 16.1430 4 Northampton Bucks 32.5000 144.8978 27.4500 204.8478 17.06 1.9050 12.0075 5 Abington Montgomery 5.9220 38.5500 5.6420 50.1140 3.25 1.8222 15.4197 6 Marple Delaware 2.6380 12.4741 3.8730 11.6089 1.74 1.5161 6.6718 7 Warrington Bucks 25.7900 146.5500 27.4500 199.7900 17.06 1.5117 11.7110 8 Middletown Bucks 25.1050 190.2137 27.4500 242.7687 17.06 1.4716 14.2303 9 Warminster Bucks 24.0600 172.6563 27.4500 224.1663 17.06 1.4103 13.1399 10 Upper Merion Montgomery 4.4610 24.0100 5.6420 34.1130 3.25 1.3726 10.4963 11 Bensalem Bucks 23.0000 181.3315 27.4500 231.7815 17.06 1.3482 13.5863 12 Montgomery Montgomery 2.9400 32.2040 5.6420 40.7860 3.25 0.9046 12.5495 13 Horsham Montgomery 2.2300 34.9700 5.6420 42.8420 3.25 0.6862 13.1822 Bucks County has the one of the highest CLR factors in the state at 17.06, indicative of a significant period without reassessing properties. The CLR factor works similarly to the Consumer Price Index (CPI) factor, in that it creates a consistent basis to compare real estate taxes. Like the CPI, the CLR factor changes incrementally each year based on a variety of factors. Without using the CLR factor to compare property taxes across counties, it would appear that tax rates are far higher than other municipalities, while assessed property values are far lower. The CLR factor equalizes millage rates by accounting for differences in assessed values. Montgomery County’s CLR factor is 3.25 for 2025-2026. Delaware County reassessed properties in 2021, resulting in a lower CLR factor of 1.74. 125 -- 125 of 206 -- Effective millage rates are calculated by applying the CLR factor to a community’s township and total millage rates, using the following calculation: 25.105 (Township Millage) ÷ 17.06 (CLR Factor) 1.47 (Effective Township Millage) As shown in the graphs below, when looking at comparable communities in the Philadelphia metropolitan area, Middletown Township’s real estate taxes are comparable to other similar communities. When the CLR factor is considered, an effective millage rate is generated, making it comparable across multiple jurisdictions. Generally, Middletown Township and other similar Bucks County municipalities levy a lower amount of real estate taxes than similar communities in Montgomery and Delaware Counties. 0.69 0.90 1.35 1.37 1.41 1.47 1.51 1.52 1.82 1.91 2.25 2.61 3.06 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Effective Township Millage - 2026 Effective Millage 5.21% 7.21% 9.92% 10.34%10.73%11.82%12.91%13.08%13.93%14.15%15.87%16.19% 22.72% 0% 5% 10% 15% 20% 25% Township RE Millages as a Percentage of Tax Bill 126 -- 126 of 206 -- Impact of Taxes Residents of Middletown Township pay, on average, $738 in Real Estate Taxes to the Township. The proposed tax increase equates to approximately an additional $180 per household per year. The average assessment of a Township home is $29,410. Middletown Township levies Real Estate Taxes totaling 25.105 mills, or 2.5105%, depending on the value determined by the Bucks County Board of Assessment of an individual’s home. Since Bucks County has not comprehensively reassessed properties since the 1970s, the average home assessment remains far below market value. The amount paid in Real Estate Taxes is calculated in the following way: $29,410 (Average Assessed Real Estate Property Value) X 0.025105 (Township Millage rate- 1 mill = 0.001%) $738.34 (Average Total Township Real Estate Taxes) Comparison of Real Estate Taxes in Selected Township Neighborhoods Avg. Assessment Neshaminy Total of Sample Middletown School Bucks Real Estate Properties Township District * County * Tax Bill 2025/2026 Millage Rates 25.105 190.214 27.450 242.769 Average Residential Assessment $29,410 $738.34 $5,594.18 $807.30 $7,139.83 Selected Township Developments: Snowball Gate $30,960 $777.25 $5,889.02 $849.85 $ 7,516.12 Highland Park $24,088 604.73 4,581.87 661.22 5,847.81 Maple Point $41,504 1,041.96 7,894.63 1,139.28 10,075.87 Hollybrooke $21,128 530.42 4,018.84 579.96 5,129.22 Parkland $24,060 604.03 4,576.54 660.45 5,841.01 Villages of Shadybrook $38,302 961.57 7,285.57 1,051.39 9,298.53 Villages of Flowers Mill $35,314 886.56 6,717.21 969.37 8,573.13 *Neshaminy School District and Bucks County are independent taxing authorities. The rates shown reflect rates as of November 2025 and are not to be considered binding for the purposes of this document. 127 -- 127 of 206 -- Act 511 Taxes Pennsylvania Act 511 of 1965 specifies the types of taxes and limits municipalities may levy in their jurisdictions. The table below represents all Act 511 taxes Middletown Township levies, and the corresponding rates. Each type of tax can vary from percentages, a flat dollar amount, to millage. An increase to the Earned Income Tax rate from 0.5% to 1.0% is proposed for 2026. No other rate adjustments are proposed. Additional tax detail is provided on the following pages. The elected Middletown Township Tax Collector collects the Per Capita Tax. The Township also works with two tax collection agencies, Berkheimer and Keystone Collections, to collect the other Act 511 Taxes. The following tables show collections on a cash accounting basis as they are reported by the tax collectors. The Township accounts for these revenues on a modified accrual basis. Additionally, some tables reflect gross tax collections, or the total amount of money collected, and some tables reflect tax collections net of fees. Amusement 4.9% Earned Income 75.3% Local Services 4.7% Mercantile 5.4% Parking 1.4% Per Capita 0.6% Real Estate Transfer 7.3% Act 511 Taxes - 2026 Projected Revenues Schedule of Act 511 Taxes - Middletown Township Tax 2026 2025 2024 2023 2022 2021 2020 Amusement 5% 5% 5% 5% 5% 5% 5% Earned Income 1.00% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Local Services $47.00 $47.00 $47.00 $47.00 $47.00 $47.00 $47.00 Mech. Device - Vending $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 Mech. Device - Amusement $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 Mercantile - Wholesale 0.5 mill 0.5 mill 0.5 mill 0.5 mill 0.5 mill 0.5 mill 0.5 mill Mercantile - Retail 0.75 mill 0.75 mill 0.75 mill 0.75 mill 0.75 mill 0.75 mill 0.75 mill Parking Transaction Fee 10% 10% 10% 10% 10% 10% 10% Per Capita $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 Real Estate Transfer 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 128 -- 128 of 206 -- Amusement Tax Middletown Township and the Neshaminy School District levy an Amusement Tax at a combined rate of 10%, which is shared equally by both. The tax is levied on any business that offers entertainment within the Township/School District. Taxable entities include but are not limited to: amusement parks, golf courses, shows, sporting events, musical performances, circuses and/or any event with an admission charge or where entertainment is offered. Returns for this tax are due monthly on the prior month’s gross ticket sales. Sesame Place theme park is the largest contributor to this tax category. Revenue has leveled off in recent years and is projected conservatively in 2026. Amusement Taxes are collected by Berkheimer Tax Administrator at no cost to the Township. The table below outlines the amount of each tax collected over the last several years, expected revenue by the end of the year, as well as budgeted projections for the upcoming year. SUMMARY OF AMUSEMENT TAX RATES AND COLLECTIONS Middletown Township Neshaminy School District Total Rate 5% 5% 10% YEAR AMUSEMENT TAX COLLECTIONS BY YEAR (MIDDLETOWN PORTION) 2026 - Budgeted 1,050,000 2025 – Projected 1,026,078 2024 1,137,710 2023 1,165,981 2022 1,329,079 2021 1,509,645 2020 282,161 2019 1,460,447 2018 1,364,243 0 500,000 1,000,000 1,500,000 2,000,000 Amusement Tax Revenue Yearly Trend 129 -- 129 of 206 -- Earned Income Tax First instituted in 2014 at a rate of 0.5%, the 2026 proposed budget contemplates an increase to the Earned Income Tax (EIT) to a rate of 1.0% to provide additional, consistent revenue to the Township to support the cost of providing government services. In Pennsylvania, EIT is remitted to an individual’s municipality of residence. This tax is levied on all residents of Middletown Township, regardless of where they work. Forms of retirement income are generally not subject to the EIT. This is depicted as “Resident Collections” in this section. Additionally, individuals working in Middletown Township who live in another municipality that does not collect EIT pay the EIT to Middletown Township, depicted as “Non-Resident Collections” in this section. All individuals who work in the City of Philadelphia but live elsewhere are subject to the City Wage Tax for non-residents, which is 3.43% as of November 2025, among the highest local income taxes in the United States. Municipalities with residents working in the City of Philadelphia cannot collect EIT for these individuals. As required by state law, collection of EIT is governed by the Bucks County Tax Collection Committee (TCC), which selects the county-wide EIT collector, Keystone Collections. Rising wages in the last two years have resulted in strong returns for the EIT—approximately $8.7 million in 2025. At a rate of 1.0%, the amount of resident collections will eventually double. However, due to the institution of the new tax rate shortly before the new tax year, only a partial year of collections is contemplated in 2026, approximately $14.3 million. By 2027, resident collections are expected to exceed $17 million. It is estimated that residents are paying more than 20% of this additional revenue to another municipality with a higher EIT rate and will not experience a net impact. Nearby Falls Township, Langhorne Borough, and Morrisville Borough have all enacted the EIT in recent years. Since 2022, there has been a nearly 40% reduction in Middletown Township’s non-resident collections. Non-resident collections will trend similar to resident collections at the new tax rate, expected to exceed $1.8 million in 2026. Non-resident collections may decline if other municipalities whose residents work in Middletown Township (i.e. Lower Makefield Township) institute their own EIT. 0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 Earned Income Tax - Non-Resident 0 3,000,000 6,000,000 9,000,000 12,000,000 15,000,000 18,000,000 Earned Income Tax - Resident 130 -- 130 of 206 -- EARNED INCOME TAX COLLECTIONS BY YEAR Year Resident Non-Resident Total Collections % Change 2026 14,363,400 1,851,000 16,214,400 63.88% 2025 8,753,193 1,140,831 9,894,025 0.99% 2024 8,700,378 1,096,816 9,797,193 1.54% 2023 8,626,230 1,022,388 9,648,618 0.94% 2022 8,002,519 1,556,336 9,558,856 6.10% 2021 7,511,995 1,497,443 9,009,439 9.77% 2020 6,773,623 1,433,646 8,207,270 -0.49% 2019 6,823,383 1,424,605 8,247,988 4.59% 2018 6,504,615 1,381,546 7,886,161 -6.30% 2017 6,937,377 1,479,182 8,416,559 16.34% 2016 5,831,028 1,403,405 7,234,433 6.65% 2015 5,320,954 1,462,393 6,783,347 66.23% *2014 3,153,750 926,994 4,080,744 *Tax was levied for the first time in 2014 and represents partial-year collections. EARNED INCOME TAX COLLECTIONS BY MONTH Resident Collections Month 2019 2020 2021 2022 2023 2024 2025 January 271,104 375,333 314,729 373,308 480,612 448,766 444,169 February 1,008,644 15,671 1,020,386 1,085,694 1,142,295 1,171,494 1,226,150 March 347,210 325,759 429,076 506,306 418,633 448,126 416,309 April 586,459 295,935 487,467 511,366 664,303 735,444 691,952 May 1,360,139 1,183,608 1,322,925 1,450,648 1,593,270 1,562,313 1,648,004 June 360,445 465,687 433,103 537,561 527,893 430,200 446,263 July 351,050 606,283 335,871 389,256 412,744 443,236 451,261 August 870,590 930,684 1,045,494 1,035,276 1,189,129 1,067,651 1,127,554 September 254,026 269,725 361,926 371,105 376,919 394,452 347,182 October 284,729 201,875 316,430 426,673 389,909 501,852 514,350 November 883,292 933,193 1,125,043 1,089,781 1,103,600 1,141,133 1,090,000 est December 245,695 269,872 319,545 225,546 326,924 355,710 350,000 est Total 6,823,383 6,773,623 7,511,995 8,002,519 8,626,230 8,700,378 8,753,193 Non-Resident Collections Month 2019 2020 2021 2022 2023 2024 2025 January 41,532 101,030 71,341 85,628 52,716 51,392 45,412 February 305,629 265,243 326,003 317,195 322,657 230,403 239,635 March 13,263 11,592 8,486 30,720 8,241 2,146 6,037 April 62,489 57,191 68,603 50,075 59,075 58,002 42,605 May 272,590 310,646 272,471 294,384 227,244 204,058 230,884 June 13,784 10,035 8,367 11,124 9,625 7,840 7,107 July 86,211 100,364 52,220 62,646 56,651 37,870 71,914 August 265,276 227,078 306,731 315,806 228,113 227,779 214,315 September 8,409 12,415 9,886 8,795 5,230 4,449 3,429 October 62,989 18,593 72,158 41,332 48,532 52,991 64,492 November 278,840 312,977 291,172 327,887 536 214,472 210,000 est December 13,593 6,483 10,005 10,745 3,770 5,412 5,000 est Total 1,424,605 1,433,646 1,497,443 1,556,336 1,022,388 1,096,816 1,140,831 All Collections Total: $8,247,988 $8,207,270 $9,009,439 $9,558,856 $9,648,618 $9,797,193 $9,894,025 est *Figures denote gross collections and are not net of accruals and fees. 131 -- 131 of 206 -- By instituting a 1.0% EIT rate, Middletown Township would join Falls Township, Bensalem Township, Lower Southampton Township, Langhorne Borough, Penndel Borough, and Hulmeville Borough who also have a 1.0% EIT, a common characteristic for municipalities in lower Bucks County. Notably, none of the school districts in lower Bucks County have an EIT. The below chart shows all townships in Bucks County as well as all municipalities in the Neshaminy School District and their accompanying tax rates for those jurisdictions. Rank Township Twp EIT* School District SD EIT* Total EIT 1 Milford 0.75% Quakertown 1.00% 1.75% 1 East Rockhill 0.75% Pennridge 1.00% 1.75% 1 Bedminster 0.75% Pennridge 1.00% 1.75% 1 West Rockhill 0.75% Pennridge 1.00% 1.75% 5 Richland 0.60% Quakertown 1.00% 1.60% 6 Haycock 0.50% Quakertown 1.00% 1.50% 6 Hilltown 0.50% Pennridge 1.00% 1.50% 8 Springfield 0.75% Palisades 0.50% 1.25% 8 Tinicum 0.75% Palisades 0.50% 1.25% 8 Nockamixon 0.75% Palisades 0.50% 1.25% 11 New Britain 0.63% Central Bucks 0.50% 1.13% 12 Falls 1.00% Pennsbury 0.00% 1.00% 12 Bensalem 1.00% Bensalem 0.00% 1.00% 12 Lower Southampton 1.00% Neshaminy 0.00% 1.00% 12 Middletown 1.00% Neshaminy 0.00% 1.00% 16 Upper Southampton 0.50% Centennial 0.50% 1.00% 16 Warminster 0.50% Centennial 0.50% 1.00% 16 Northampton 0.50% Council Rock 0.50% 1.00% 16 Warrington 0.50% Central Bucks 0.50% 1.00% 16 Doylestown 0.50% Central Bucks 0.50% 1.00% 16 Warwick 0.50% Central Bucks 0.50% 1.00% 16 Plumstead 0.50% Central Bucks 0.50% 1.00% 16 Wrightstown 0.50% Council Rock 0.50% 1.00% 16 Newtown 0.50% Council Rock 0.50% 1.00% 16 Upper Makefield 0.50% Council Rock 0.50% 1.00% 16 Buckingham 0.50% Central Bucks 0.50% 1.00% 16 Solebury 0.50% NH/Solebury 0.50% 1.00% 16 Durham 0.50% Palisades 0.50% 1.00% 16 Bridgeton 0.50% Palisades 0.50% 1.00% 30 Bristol 0.50% Bristol Twp 0.00% 0.50% 31 Lower Makefield 0.00% Pennsbury 0.00% 0.00% Municipality Muni EIT* School District SD EIT* Total EIT Langhorne Borough 1.00% Neshaminy 0.00% 1.00% Penndel Borough 1.00% Neshaminy 0.00% 1.00% Hulmeville Borough 1.00% Neshaminy 0.00% 1.00% Lower Southampton Township 1.00% Neshaminy 0.00% 1.00% Middletown Township 1.00% Neshaminy 0.00% 1.00% Langhorne Manor Borough 0.00% Neshaminy 0.00% 0.00% *Denotes current rates as of November 2025 except proposed 2026 Middletown Township rate. 132 -- 132 of 206 -- Local Services Tax The Local Services Tax is imposed upon each individual engaged in any occupation in Middletown Township. It is the responsibility of the employer to deduct the tax of $52 per year at a rate of $1 per week employed from their employees’ pay. The tax is shared with Neshaminy School District with $47 going to Middletown Township, and $5 going to the School District. Employers are required to remit the tax collected on a quarterly basis to Berkheimer, the tax administrator assigned to collect this tax. Individuals who are self-employed and whose business or practice is in Middletown Township are also required to pay the $52 Local Services Tax. The total Local Services Tax paid by an individual in a calendar year is limited to $52, regardless of the number of employers an individual works for during the year or the number of taxing districts in which an individual may work. The Local Services Tax is projected to stay on target with prior years’ collections. LOCAL SERVICES TAX COLLECTIONS BY YEAR Year Total Collections % Change 2026 - Budgeted 1,000,000 -6.31% 2025 - Projected 1,067,305 8.21% 2024 1,020,000 -5.49% 2023 1,043,579 0.56% 2022 1,037,724 1.75% 2021 1,019,829 -1.63% 2020 1,036,728 -2.15% 2019 1,059,490 -4.65% 2018 1,111,139 1.82% 2017 1,091,284 -3.37% 2016 1,129,355 14.74% 2015 984,249 -13.17% 2014 1,133,549 11.68% 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Local Services Tax Revenue Yearly Trend 133 -- 133 of 206 -- Mechanical Device Tax The Mechanical Device Tax is levied on businesses in the Township with vending and amusement machines. Vending machines are subject to a $20.00 tax per year per machine, while amusement machines are subject to a $100.00 tax per year per machine. Vending machines include any automated machine offering the sale of food, drinks, or goods. Amusement machines refer to arcade games and any automated machine used for recreation purposes. These devices are registered with the Township and the tax is billed to the businesses each year by the Finance Department. The Finance Department collaborates with the Department of Fire & Emergency Services to maintain an updated list of devices subject to the Mechanical Device Tax. Stronger efforts to send additional notices have improved mechanical devices revenue. As this is a flat tax not based on revenues generated by the machines, tax revenue is expected to be consistent with prior years. The chart below shows the combined revenue generated by vending and amusement machines. $34,360 $32,860 $31,780 $49,480 $52,535 $45,990 $44,020 $42,265 $46,900 $51,320 $47,000 0 10,000 20,000 30,000 40,000 50,000 60,000 Mechanical Device Tax Revenue Yearly Trend 134 -- 134 of 206 -- Mercantile Tax Mercantile Tax is levied on the gross receipts of retail trade, wholesale trade, and food/refreshment trade businesses in Middletown Township. The breakdown of the Mercantile Tax is 0.75 mill for retail sales, 0.50 mill for wholesale sales, and $2 each for a retail or wholesale license. Neshaminy School District also collects Mercantile Taxes on the same areas as Middletown Township. Below is a breakdown of tax rates for Middletown Township, Neshaminy School District, and the combined rate by category. The largest revenue driver in the Mercantile Tax is automotive sales from the Township’s car dealerships, followed by grocery stores and big-box retailers. Like the Amusement Tax, the Mercantile Tax is collected by Berkheimer Tax Administrator. The table below outlines the amount of each tax collected in prior years, as well as budgeted projections for the upcoming year. Category Middletown Township Neshaminy School District Total Retail Sales .75 mill .75 mill 1.5 mills Wholesale Sales .50 mill .50 mill 1.0 mill Retail or Wholesale License $2 each $2 each $4 each YEAR MERCANTILE TAX COLLECTIONS BY YEAR 2026 - Budgeted 1,150,000 2025 - Projected 1,215,900 2024 992,682 2023 1,128,287 2022 1,184,286 2021 1,265,203 2020 861,211 2019 1,154,769 2018 1,158,235 2017 1,177,552 2016 1,046,011 2015 1,116,110 2014 1,024,321 2013 1,032,229 2012 1,045,066 2011 1,114,116 135 -- 135 of 206 -- Mercantile Tax revenues have recovered strongly since being impacted by the pandemic. Aside from the business composition of the community, the national economy is the most reliable indicator for Mercantile Tax performance—evident in the 17% revenue drop in 2008 and 26% drop in 2020. Fortunately, the Mercantile Tax has performed consistently in recent years, experiencing a peak in 2021 due to payment of delinquent taxes from 2020. The 2026 Budget anticipates Mercantile Tax revenue to remain consistent with recent post-pandemic levels. The chart below depicts the various sectors contributing to the Mercantile Tax. This analysis of 2024 Mercantile Tax income shows the automotive industry, heavily driven by the Township’s numerous auto dealers, as a heavy contributor to the tax, followed by grocery stores and large retailers. These three categories yield a combined 73% of Mercantile Tax revenue. 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 Mercantile Tax Revenue Yearly Trend AUTOMOTIVE 43% GROCERY 14% LARGE RETAIL 16% SMALL RETAIL 6% RESTAURANT 8% INDUSTRIAL 3% ENTERTAINMENT 4% SERVICE/PROFESSION AL PHARMACY 3% OTHER 1% Mercantile Tax by Industry - 2024 136 -- 136 of 206 -- Parking Transaction Fee The parking transaction fee is charged to all businesses that charge patrons for parking. Businesses with free parking are not required to pay this fee. The parking transaction fee is 10% of gross parking revenue. The primary contributor to this fee is Sesame Place theme park. This fee is an important revenue stream to the Township because the Township does not have any metered parking to generate revenue. A dramatic dip was experienced in 2020, consistent with that of the Amusement Tax, due to Sesame Place’s limited operations in 2020. Revenue reached a record high in 2022, but has dropped slightly since, consistent with the performance of the Amusement Tax. PARKING TRANSACTION FEE COLLECTIONS Year Total Collections % Change 2026 - Budgeted 300,000 9.08% 2025 - Projected 275,018 -13.41% 2024 317,592 8.57% 2023 292,534 -15.23% 2022 345,092 24.11% 2021 278,048 402.41% 2020 55,343 -82.76% 2019 320,961 -1.89% 2018 327,151 44.00% 2017 227,193 -27.22% 2016 312,160 19.61% 2015 260,992 15.44% 2014 226,091 5.56% 2013 214,177 -10.07% 2012 238,155 5.83% 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 Parking Transaction Fee Revenue Yearly Trend 137 -- 137 of 206 -- Per Capita Tax The Per Capita Tax is a flat rate tax levied upon individuals, eighteen years of age or older, residing within Middletown Township who earn more than $5,000 per year. Only residents of the Township are subject to the tax. The Per Capita Tax rate for Middletown Township is $5 per individual, while the Per Capita Tax for Neshaminy School District is $10 per individual. A combined Per Capital Tax is billed by the elected Township Tax Collector on July 1st of each year. If paid in July or August of a given year, residents receive a 2% discount. If paid after October 31 st , residents are required to pay an additional 5% for delinquency. Residents earning less than $5,000 per year are eligible for exoneration from the Per Capita Tax. PER CAPITA TAX COLLECTIONS BY YEAR Year Collections % Change 2026 - Budgeted 138,000 0.15% 2025 - Projected 137,792 -0.44% 2024 138,403 0.38% 2023 137,883 -2.46% 2022 141,360 -5.29% 2021 149,262 5.25% 2020 141,816 -3.82% 2019 147,446 12.12% 2018 131,509 -5.09% 2017 138,561 -5.17% 2016 146,119 4.65% 2015 139,627 7.58% 2014 129,790 0.59% 2013 129,031 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Per Capita Tax Collections Revenue Yearly Trend 138 -- 138 of 206 -- Real Estate Transfer Tax The Pennsylvania Real Estate Transfer Tax is imposed at a rate of one percent on the value of real estate transferred by deed, instrument, long-term lease or other writing. This one percent is split equally between Middletown Township and Neshaminy School District. Both the grantor and grantee are liable for payment of the tax. Below lists the 0.5% income to Middletown Township. Collections from the Real Estate Transfer Tax are affected by the number of properties transferred in a given period of time, as well as their sale value. Housing market conditions and the transfer of commercial properties create fluctuations from year to year. In 2021 and 2022, the transfer of several large commercial properties, compounded by record-low interest rates, shattered revenues from the last two decades. Rising interest rates and a calm commercial real estate market resulted in a decline in revenue in 2023. Since 2023, residential transfers are the primary and most consistent source of Real Estate Transfer Tax revenue. REAL ESTATE TRANSFER TAX COLLECTIONS BY MONTH 2022 2023 2024 2025 Month Transfers Revenue Transfers Revenue Transfers Revenue Transfers Revenue January 42 $297,122 30 $69,139 37 $112,087 31 $156,193 February 33 63,266 21 42,347 28 54,772 15 34,081 March 44 95,450 29 55,925 30 318,511 21 38,583 April 42 84,997 29 66,430 34 76,671 35 82,941 May 51 275,142 38 95,141 44 106,752 38 85,790 June 55 440,756 40 213,789 38 96,465 39 104,854 July 45 131,465 53 125,157 59 167,985 61 176,115 August 72 245,226 56 129,570 48 116,775 52 157,172 September 54 209,187 37 119,558 41 119,371 36 125,422 October 43 100,115 34 121,150 41 95,737 42 129,183 November 36 93,586 39 90,187 39 105,710 36 96,000 est December 34 71,962 24 57,007 42 287,599 38 113,817 est Totals 551 $2,108,274 434 $1,180,500 481 $1,658,436 444 $1,300,151 Average 46 $175,689 36 $ 98,375 36 $ 138,203 36 $ 108,346 Mkt. Value $421,654,716 $236,100,014 $331,687,144 $260,030,252 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Real Estate Transfer Tax Revenue Yearly Trend 139 -- 139 of 206 -- Cable Television Franchise Fee Enabled by the Cable Communications Act of 1984, the Cable Television Franchise Fee is an annual fee charged by local governments to private cable television companies as compensation for using the Township’s right-of-way. The two cable television companies subject to this fee are Comcast and Verizon. The Township’s right-of-way is its legal ability to use and/or enter private property without owning or possessing it. The Township recently signed new cable franchise agreements with Comcast and Verizon Fios for ten-year and five-year terms, respectively. These new agreements maintain the existing Cable Television Franchise Fee rates as before. Although the fee is paid to the Township by Comcast and Verizon, the amount paid is based upon the revenue generated by Middletown Township residents utilizing their services. As digital entertainment options become more prevalent, more people are “cutting the cord” and cancelling traditional cable television plans. As a result, there is a steady decline in revenue from the Cable Television Franchise Fee. This decline is expected to continue moving forward. Despite the fact that cable providers provide internet services to customers over the same infrastructure used to provide cable service, franchise fees do not apply to internet services. As part of the renegotiation process, audits of recent fee collections were performed on both Comcast and Verizon in 2023 and 2024. Both companies showed full compliance. 0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 Cable Television Franchise Fee by Year 140 -- 140 of 206 -- Building Inspections & Permits Like all municipal governments in Pennsylvania, Middletown Township is responsible for administering the Pennsylvania Uniform Construction Code (UCC), which establishes standards and requirements for building construction to ensure structures are built safely. Most construction on residential and commercial property requires permits issued by the Township, either building, electrical, plumbing, or zoning. These permits are administered by the Township’s Department of Building and Zoning. In addition to construction-related permits, revenue is generated from other areas, including fees associated with land development and zoning projects, licensing, and inspections. Together, all of these services generate a significant amount of revenue for the Township. These revenues can be positively impacted by large commercial developments, and negatively impacted by a poor economy. The costs of permits and inspections are governed by the Township’s fee schedule. A comprehensive update to the Township’s fee schedule is planned to take effect in 2026. Increased revenue in 2026 is anticipated from adjusted fees. The volume of permits driving the fee revenue is expected to remain consistent with 2025. Additionally, adjustments to fees will be made to be sure revenues more appropriately cover actual costs incurred by the Township to administer permit programs and review processes. After experiencing significant swings between 2020 and 2022, revenues have stabilized significantly. The current level of revenue is driven by residents making more improvements to their homes, and the ongoing redevelopment of commercial real estate. The Atlee Square Apartments at the Oxford Valley Mall bolstered permit revenue in recent years. Three approved townhome developments on Woodbourne Road will bolster permit revenue in 2026. 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 Building Inspections & Permits Revenue Yearly Trend 141 -- 141 of 206 -- Fire Inspections Middletown Township is responsible for administering fire safety inspections (FSIs) and fire permits for businesses. Businesses are inspected every year to enforce compliance with the Township’s Fire Code. If any violations are found, guidance is given to businesses so they may make the necessary modifications to come into compliance upon reinspection. FSIs are carried out by the Department of Fire & Emergency Services each year. A fee is collected from businesses for the inspection each year. The fee is based on the size of the structure being inspected. Businesses that require a reinspection are only charged if more than one reinspection is needed to enforce fire code compliance. The FSI program was paused in 2020 due to the pandemic. In recent years, revenues have fully restored to pre-pandemic levels. The fee schedule will be adjusted in 2026 for the FSI program, but a conservative estimate based on historical trends is projected. FSIs can only be performed at commercial buildings that are occupied—vacant buildings are generally not inspected. Excessive vacancies in commercial buildings can negatively impact revenue from FSIs, though this issue is not anticipated. 0 100,000 200,000 300,000 400,000 500,000 Fire Inspection Revenue Yearly Trend 142 -- 142 of 206 -- Reimbursement of Police Services Middletown Township provides police services to the community every hour of every day. Some organizations in the Township require additional police services to provide added security due to the increased potential for crime. The Township has agreements with the Oxford Valley Mall, Sesame Place theme park, and Neshaminy School District to provide additional police services at their facilities for an additional cost. These agreements allow for police officers to be dedicated to protecting their facilities without impacting police services to the community at large. In 2020, the pandemic impacted all three organizations that are provided supplemental police services. As a result, a 50% decline in revenue occurred in 2020 compared to prior years. Revenues since the pandemic have stabilized. In 2023, an agreement was signed with the Neshaminy School District to add one additional School Resource Officer, for a total of three, which resulted in an increase in revenue. Discussions with Sesame Place and the Oxford Valley Mall about their policing needs are expected to occur in 2026 as well which may impact future revenue in this category. 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Reimbursement of Police Services Revenue Yearly Trend 143 -- 143 of 206 -- Police Fines The Middletown Township Police Department is charged with enforcing the Pennsylvania Motor Vehicle Code within the Township. This code identifies the proper utilization of a motor vehicle, as well as registration requirements. Additionally, the Police Department is in charge of enforcing the Township’s ordinances. Some violations, such as parking and vehicle code violations, carry fines with them that must be paid by the offender. The Township receives modest revenue each year from the fines generated by the issuance of these violations. Additionally, the Pennsylvania State Police is responsible for enforcing the law on state roads and highways. Middletown Township is entitled to a portion of the fines generated from tickets issued with the Township by State Police. The chart below shows a combination of revenue from Middletown Township Police and State Police fines. Important to note, Pennsylvania is the only state where local police officers do not have the ability to enforce speed using radar, the most common method in practice nationwide. Compared to communities in other states, Pennsylvania local governments derive very little revenue from speeding tickets. However, Pennsylvania State Police are permitted to use radar. The Board of Supervisors enacted an ordinance to increase parking fines and add a violation for commercial vehicle parking in 2023. In cases like parking, police officers are trained to work with residents in violation when possible to resolve the matter before issuing a citation. 138,430 144,157 131,869 118,540 117,897 109,993 92,639 101,519 116,466 102,565 107,000 0 50,000 100,000 150,000 200,000 Police Fines Revenue Yearly Trend 144 -- 144 of 206 -- Recreation Program Fees The Department Parks & Recreation hosts a variety of classes and programs throughout the year aimed at providing educational and fun activities to the community. Many programs offered have a fee associated with them. The fee for most programs is typically based on the costs associated with administering the program, as well as interest and demand from participants. The largest revenue driver in this category is summer camp, which serves more than 500 children each year. Second to summer camp, basketball leagues held for various age groups typically serve 280 people each year. The pandemic significantly impacted program fee revenue in 2020. Normal recreation programming returned in 2021 and new programs have been consistently added since. Fee revenue has rebounded and has continued to reach all-time records. Normal registration volumes, more class offerings, and increased programming fees are all expected to contribute to continued strong recreation program fee revenue in 2026. In 2024, Township staff collaborated to evaluate both revenues and expenditures from recreation programs to ensure programs are financially self- sustaining. Additionally, a comparative analysis was performed against programs offered by other nearby municipalities as Middletown Township’s programs are available to non-residents at a higher fee. As a result, fees for certain programs were adjusted. This effort continues to make sure costs are covered by fees paid by participants. 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Recreation Program Fees by Year 145 -- 145 of 206 -- Solid Waste/Recycling Fees Middletown Township provides solid waste and recycling services through a single-hauler contract. The Township solicits bids from solid waste and recycling haulers to provide this service several years at a time. A new contract took effect in 2025 with service modifications in an effort to control costs. 2026 marks the second year of the five-year contract with Waste Management. Residents living in multi-family complexes or in neighborhoods with homeowners’ associations typically contract their trash separately and are not served by the Township’s contract. Select townhome neighborhoods served by the Township’s contract remain with manual collection. Residents pay $476 for solid waste and recycling services each year. Although the contract requires different amounts to be paid to Waste Management each year, the Township smooths the cost of collections over the life of the contract to assist residents’ financial planning efforts. This fee- for-service is included on most residents’ Real Estate Tax bill, though some properties are directly billed by the Township. The fees collected are put into the Sanitation Fund and are paid out to Waste Management as their contract requires. Generally, 2% to 5% of fees paid are assumed to be delinquent or uncollectable. Several factors influence the cost of solid waste and recycling services. The contract that began in 2025 is impacted significantly by rising wages for sanitation workers, compounded by rampant inflation increasing the price of equipment. Recycled materials also no longer possess the value they once did. Middletown Township residents are unfortunately not alone in facing the rising cost of waste collection. Rates from some neighboring communities were significantly higher than Middletown prior to the contract taking effect in 2025. Solid Waste & Recycling Rate History Year Rate % Change Year Rate % Change Year Rate % Change 2026 476 0.00% 2018 340 0.00% 2010 364 0.00% 2025 476 18.70% 2017 340 0.00% 2009 364 19.74% 2024 401 0.00% 2016 340 0.00% 2008 304 3.05% 2023 401 0.00% 2015 340 -14.14% 2007 295 3.15% 2022 401 0.00% 2014 396 0.00% 2006 286 2.88% 2021 401 0.00% 2013 396 8.79% 2005 278 2020 401 17.94% 2012 364 0.00% 2019 340 0.00% 2011 364 0.00% 146 -- 146 of 206 -- SOLID WASTE COLLECTION AND RECYCLING COSTS Waste Collection Fee Revenue Year # of Units Cost Per Household Annual Revenue Net of Uncollectible/ Delinquent 2026 12,412 476 5,908,112 5,789,950 2025 *12,412 476 5,908,112 5,789,950 2024 12,227 401 4,903,027 4,657,876 2023 12,224 401 4,901,824 4,656,733 2022 12,222 401 4,901,022 4,655,971 2021 12,213 401 4,907,438 4,662,066 2020 12,211 401 4,907,438 4,662,066 2019 12,186 340 4,143,240 4,138,000 2018 12,145 340 4,129,300 4,179,601 2017 12,142 340 4,128,280 4,119,987 2016 12,142 340 4,128,280 4,094,587 2015 12,142 340 4,128,280 4,045,714 2014 12,141 396 4,807,836 4,711,679 2013 12,129 396 4,803,084 4,707,022 2012 12,129 364 4,414,956 4,326,657 *Denotes updated house count. 0 50 100 150 200 250 300 350 400 450 500 Solid Waste & Recycling Fee by Year 147 -- 147 of 206 -- Stormwater Impact Fee Taking effect in 2025, the Middletown Township Board of Supervisors implemented a Stormwater Impact Fee to support the Township’s cost to provide and maintain stormwater management infrastructure and to ensure the quality of stormwater runoff. Prior to the Stormwater Impact Fee, the Township did not have a reliable or sufficient source of revenue to support this cost. Proceeds of the Stormwater Impact Fee are managed in the Stormwater Fund. Fees are assessed annually to all developed properties in the Township. Single-family residential properties are assessed a flat fee of $5 per month ($60 per year), applicable to freestanding (single- family) homes, townhomes, duplexes, and condominiums. Non-single family residential properties are assessed a tiered fee based upon the amount of impervious surface area, or the amount of area that cannot absorb stormwater, present at the property. Fees for non-single family residential range from $12 per month ($144 per year) to $500 per month ($6,000 per year) per parcel. If unpaid, property owners are subject to a lien at which point the fee becomes paid at the penalty rate when the property is sold. Non-Single Family Residential Property Stormwater Impact Fee Tier Impervious Area (IA) Range (sq.ft.) Annual Fee Tier 0 < 400 sq. ft. None Tier 1 400 – 4,000 sq. ft. $144.00 Tier 2 4,001 – 6,000 sq. ft. $216.00 Tier 3 6,001 – 8,000 sq. ft. $288.00 Tier 4 > 8,000 sq. ft. $144.00 per 4,000 sq.ft. IA** **Maximum annual fee of $6,000 per parcel per year. The Stormwater Advisory Committee was established in 2025 to provide long-term oversight of Stormwater Impact Fee proceeds. No increase to the Stormwater Impact Fee is proposed for 2026. Berkheimer is the appointed collector of the Stormwater Impact Fee and receives a commission of $1.50 per bill. As a new fee administered through a new service, collections below typical rates of collection. A rate of collection of 85% to 88% is anticipated for 2025 and 2026 while property owners become accustomed to paying the fee. In 2026, $1,611,000 in revenue is anticipated to be received. Without adjusting the fee itself, revenue will increase as the rate of collection increases. Non-single family residential property owners are eligible to apply for a credit (reduction) to their Stormwater Impact Fee if they have stormwater best management practices (BMPs) present at the property. Credits vary depending on the type(s) of BMPs present. Residential property owners are also eligible to obtain credit by participating in an eligible community event or learning how to properly install a rain barrel. 148 -- 148 of 206 -- Interest Income The US Federal Reserve adjusts interest rates which ultimately determines how much money lenders can earn from lending out money to borrowers. Interest rates are commonly adjusted in an attempt to influence the economy toward slow, stable growth. Attributable to US Federal Reserve’s efforts to combat rampant inflation, interest rates reached 15-year highs in 2024. Heading into 2026, interest rates are continuing the slow decline they began in 2025. Interest rates are expected to continue a slow decline into 2026. Any funds held in cash by the Township are in accounts that yield strong income from interest rates. In the chart below, the Township’s two largest funds—the General Fund and the Investment Fund— are depicted individually as they are historically the largest generators of interest income. A third line depicts the collective interest income earned from all other funds. Interest income in the General Fund has declined faster as the fund balance has been depleted in recent years. The Investment Fund is actively managed in an investment portfolio to earn more revenue since the original $40 million balance is restricted from spending. Revenues from investment activities are separate from interest income and are not charted below. The Township has calculated anticipated interest income in 2026 with the assumption that interest rates will continue to gradually decline. 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 Interest Income Revenue Yearly Trend Investment Fund General Fund All Other Funds 149 -- 149 of 206 -- State Allocations Each year, municipalities receive allocations from the Commonwealth of Pennsylvania. These allocations are taxes collected statewide and distributed to municipalities to defray costs of providing essential services. The primary categories of state allocations received each year are the Pension System State Aid, the Foreign Fire Insurance Premium Tax, and the Motor Vehicle Fuel Tax. Since the 1980s, the Commonwealth of Pennsylvania has provided direct contributions to offset the cost of providing pensions to public employees, both uniformed (police) and non-uniformed. Revenue for Pension System State Aid is generated by a 2% tax on foreign (out-of-state) insurance companies on premiums for casualty insurance sold to Pennsylvanians. Allocations are based on each municipality’s pension plan and plan enrollees. Similar to Pension System State Aid, the Foreign Fire Insurance Premium Tax is a 2% tax levied by the Commonwealth of Pennsylvania on foreign (out-of-state) insurance companies on premiums for fire insurance sold to Pennsylvanians. Proceeds are distributed through the Township to the relief associations for the five volunteer emergency response agencies serving the Township. This funding can be used in a variety of ways to support the work of volunteer fire companies. This revenue is accounted for in the Fire Protection Fund. The Motor Vehicle Fuel Tax is an excise tax charge to motorists purchasing gasoline. In 2025, the state set the tax rate at $0.5870 per gallon. Drivers of alternative fuel vehicles are also subject to a tax based upon the type of fuel—$0.0172/kWh for electric vehicles in 2025. Proceeds from this tax are allocated to municipalities based on eligible road mileage and population and must be used on maintaining and improving roads. 20% of the allocation may be used on major equipment. This money resides in the Highway Aid Fund. The Commonwealth of Pennsylvania has strict guidelines on how these funds can be spent and routinely audits to ensure compliance. 0 500,000 1,000,000 1,500,000 State Allocations by Year Pension System State Aid Foreign Fire Insurance Premium Tax 150 -- 150 of 206 -- Expenditures Middletown Township works hard throughout the year to ensure resources are allocated so that it can provide the high-quality services the community expects and deserves. The majority of what the Township spends in the General Fund is related to staffing, including salaries and wages, insurance costs, and pension benefits. These expenditures allow the Township to recruit and retain talented employees who are trained to provide essential services critical to quality of life. Expenditures generally increase year-over-year because of inflation or contractual obligations. Overall, total expenditures are expected to trend normally into 2026, however, this budget proposes increases in equipment and staff so the Township can complete more projects to benefit the community. In the General Fund, expenditures have historically outpaced revenue, leading to structural deficits in prior years. The proposed 2026 budget is a structurally balanced budget and revenues are greater than expenses. The focus of this section will be to identify and explain the major expenditure areas that enable the Township to provide its services. Most costs discussed are expended from the General Fund, though expenditures from several funds are consolidated into each category presented. Additionally, some expenditures are broken into sub-categories within the same fund, such as salaries and wages. The goal of this discussion and analysis of expenditures is to examine costs without the boundaries of funds and budget departments to provide a transparent picture of how the Township allocates its resources. 151 -- 151 of 206 -- Salaries & Wages The salaries and wages category refers to the direct compensation of salaried and hourly employees for their time worked. Nearly all employees belong to a labor union or bargaining unit, the leadership of which negotiates with management for compensation and benefits every few years. The rate of compensation is determined by the written agreements between the Township and the labor unions, known as the collective bargaining agreement (CBA). CBAs are particularly valuable in identifying future costs as they apply to several years at a time. Wage increases in 2026 are 4.0% for nearly all employees. CBAs with the Teamsters Local 107, Public Works Association and the Police all expire in 2027. Wage-related benefits such as holiday pay and shift differential are included in this category, while overtime and employer-paid payroll taxes are excluded. Salaries and wages have increased across all departments primarily due to contractually obligated cost of living adjustments. The 2026 budget reflects salary and wages at full staffing levels and includes the addition of new employees in key departments. The two largest categories in salaries & wages are Police (60%) and Public Works (16%). These two departments have the largest number of employees and compensation levels are some of the highest across all departments. Administrative personnel for each department are included above. Executive 7% Fire Services 6% Park & Rec 4% Building and Zoning 4% Finance 2% Crossing Guards 1% Police 60% Public Works 16% Salaries and Wages by Department - 2026 Budget Executive Fire Services Park & Rec Building and Zoning Finance Crossing Guards Police Public Works 152 -- 152 of 206 -- Police The 2026 budget proposes full staffing levels for the Police Department. The Oxford Valley Mall, Sesame Place, and Neshaminy School District reimburse the Township for additional policing services provided by the Police Department. School Crossing Guard wages are managed by the Police Department and are split equally with Neshaminy School District. The reimbursements are recognized as revenue and the full cost of staff time is recognized as an expenditure. Public Works Salaries and wages for the Department of Public Works are paid from several account numbers across multiple funds. Activities for specialized purposes are paid from the respective funds, such as Street Light Repairs, Parks Maintenance, Stormwater Improvements and Capital Projects. Any other staff costs that are not allocated to a specific fund are carried by the General Fund. In previous years, costs were also allocated to activities covered by the Highway Aid Fund, which has strict monitoring and reporting requirements. In 2026, the wages were reallocated to the General Fund so the Highway Aid contributions could be used for increased road paving. The Township maintains a breakdown of staff time across specific categories throughout the year for comparison and analysis purposes. The specific categories include snow and ice removal, traffic control devices, storm sewers & drains, fleet maintenance services, and road and bridge maintenance. 153 -- 153 of 206 -- Other Departments In 2026, a portion of Executive wages will be allocated to the Sanitation, Farm and Stormwater Funds. In addition, a portion of Park and Recreation administration wages will be allocated to the Sanitation and Farm Funds. Parks and Recreation staff are otherwise accounted for in the Parks and Recreation Fund. Salaries and wages for all other employees are accounted for in the General Fund. The 2026 budget proposes the following staff increases: • Five (5) Equipment Operators in Public Works to focus on stormwater maintenance operations. • Fire Lieutenant to provide structure to the Department of Fire and Emergency Services. • Professional Engineer to reduce the cost to develop and implement infrastructure maintenance and improvement projects. • Reclassification of a part-time Information Technology position to full-time to prioritize cybersecurity. The Township has also submitted a FEMA SAFER grant application to hire additional fire fighters in the near future. 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 Departmental Salaries & Wages by Year Police Public Works All Other Departments 154 -- 154 of 206 -- Medical Insurance All full-time Township employees are entitled to medical insurance benefits as required by the Affordable Care Act (ACA). Retired police officers are also entitled to post-retirement medical insurance benefits as required by their CBA. In 2020, the Township transitioned its medical insurance plan to the Delaware Valley Health Trust, a municipal insurance pool aimed at stabilizing costs and emphasizing employee health and wellness. Prior to 2020, the Township’s medical insurance was with Independence Blue Cross. Employees have the option of insuring themselves, as well as their spouse and/or children. Employees may opt out by providing proof of insurance and receive an incentive payment from the Township in lieu of benefits. Medical insurance consists of three primary components: premiums, deductibles, and co-pays. Premiums are the monthly cost to have insurance, and the rates increase annually when the insurance plan is renewed. Deductibles are a pre-determined amount that must be paid by the user before the plan covers all additional medical expenses. Co-pays are a cost-sharing mechanism between the user and the insurance provider and do not affect Township costs. The Township also provides vision and dental insurance to all employees. For budgeting purposes, the cost of the vision and dental insurance is incorporated into the medical insurance line item in all departments. The largest increase is medical insurance year-over-year is an increase in the number of employees that increase coverage to include dependents, as premiums are higher for that level of coverage. There is also a continued increase in retired police officer coverage as retirees are covered by insurance for longer periods of time. 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 Medical Insurance Expenses by Year 155 -- 155 of 206 -- Premiums Premiums are paid by the Township for all Uniform Police employees, including retirees. In addition, the Township pays the premiums for any Non-Uniform employees that are covered as individuals. All other Non-Uniform employees that are covered with dependents (Couple, Parent and Child, and Family) contribute up to 12% of the monthly premium for their insurance coverage, based on the employee’s compensation. Premiums are the costliest component of medical insurance. Medical insurance can be one of the most volatile costs for any employer. Premium renewals have stabilized significantly since transitioning to the Delaware Valley Health Trust in 2020. The chart below depicts the annual premium rate for a family (employee plus spouse and children) by year. The cost of insurance is expected to increase at a slower, more consistent pace than in prior years. In 2026, medical insurance is increasing by approximately 6.6%. Deductibles The Township provides a high-deductible health plan (HDHP), meaning deductibles are higher, but the monthly premiums are lower. The deductible for individuals is $3,000 and it increases to $6,000 for employees with dependents. For Uniform Police employees and retirees, the Township contributes 100% of the deductible annually. For Non-Uniform employees, the Township contributes the first 80% ($2,400 or $4,800) of the deductible, the employee is responsible for 20%. The Uniform Police employees are in a Health Reimbursement Arrangement (HRA) funding arrangement. The Township funds the deductibles as they are used by employees. The Non- Uniform employees transitioned from a Health Reimbursement Arrangement (HRA) to a Health Savings Account (HSA) funding arrangement in 2025. Employees will now have a tax-advantaged mechanism to save toward their post-retirement medical expenses. $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 Projected 2026 Budgeted Medical Insurance Premium Change by Year Annual Premium (Family) 156 -- 156 of 206 -- Workers’ Compensation Insurance Employees are entitled by law to conduct their work in a safe environment. When an employee is injured at work and unable to perform their regular duties, they are eligible to receive workers’ compensation, which allows the injured employee to be paid their regular rate of pay without depleting their earned leave time. Employees sustaining injuries that are not related to their work are not eligible for workers’ compensation. Because Middletown Township, like many municipal governments, has a high number of employees performing emergency response or manual labor, the potential for workplace injuries is higher than workplaces comprised primarily of office workers. As a result, the cost of workers’ compensation insurance reflects the increased potential for workplace injuries. Like medical insurance, Middletown Township belongs to the Delaware Valley Workers’ Compensation Trust, a municipal pool that allows the Township’s risk to be spread across all participants in the Trust. Workers’ compensation insurance costs are primarily determined by the total payroll of the Township’s employees for a given year. Additionally, the volume of claims year-over-year contributes to annual increases to workers’ compensation insurance costs. Rising premium costs since 2024 attributable to the reclassification of Fire Inspectors to Firefighters and a high experience modification due to the volume of claims. Volunteer Fire Companies In 2022, Middletown Township began assuming the cost of its share of workers’ compensation insurance premiums for the four volunteer fire companies that serve our community. Beginning in 2025, this contribution was included in total Workers Compensation expense shown above. 0 250,000 500,000 750,000 1,000,000 Workers' Compensation Insurance by Year 157 -- 157 of 206 -- Property & Liability Insurance Middletown Township, like many municipal governments, owns considerable assets ranging from real estate and roads, to traffic signals, buildings, and vehicles. Utilized by thousands of residents and many more visiting or passing through each year, the Township’s property and assets bring with them a certain level of risk to the Township. For example, roads and traffic signal equipment increase the Township’s exposure to damage by motorists in the event of an accident. Property and liability insurance allows the Township to be compensated for damages to its property and assets. Additionally, in the event a lawsuit is filed against the Township related to a property or some activities of the Township, the firm insuring the Township will provide legal assistance. The Township appoints a broker who markets and requests proposals from insurance firms each fall to provide insurance services for the upcoming year. The cost of this insurance is typically related to the Township’s assets, past claims, and potential risk determined by the insurance firm. Middletown Township has enjoyed stable property and liability insurance premiums for several years. The Township continues to take measures to mitigate potential risk at public facilities in an effort to curtail rising costs. Cybersecurity is a contributing factor to rising property and liability insurance costs due to the Township’s increased exposure to ransomware and cyber-attacks. 0 100,000 200,000 300,000 400,000 500,000 600,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Projected 2026 Budgeted Property & Liability Expenditures 158 -- 158 of 206 -- Contracted Services The contracted services category in the budget refers to any services provided by an agency other than Middletown Township and its employees. Most departments utilize one or more contracted service providers to support or supplement their departments. These tasks range from janitorial services to road paving. Contracted services allow the Township to obtain specialized services in smaller quantities in lieu of adding additional staff or specialized training, which increases costs and long-term obligations such as medical insurance and pension benefits. Construction services are carried by the Capital and Highway Aid Funds and include the annual road paving, curb ramp and other major projects. The General Fund also incurs significant services costs related to Building and Zoning inspections and Police support services. For 2026, increases in contracted services are for the expanded road paving and ADA curb ramp programs, as well as updates to the Subdivision & Land Development Ordinance (SALDO) and Zoning Ordinance and a feasibility study to prepare for the future of the Middletown Country Club. 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Projected 2026 Budgeted Contracted Services by Year (All Funds) 159 -- 159 of 206 -- Legal Services The Middletown Township Board of Supervisors appoints the Township Solicitor, charged with representing the Township in all legal matters. The Township’s current solicitor, Jim Esposito, Esq., from the law firm Curtin & Heefner, was appointed in 2018. In addition to advising the Board of Supervisors during their public meetings, the Township Solicitor handles all legal matters. As a consultant, the Township Solicitor bills the Township for services provided each month. In addition to the Township Solicitor who provides general legal services, the Board of Supervisors is advised by special legal counsel for matters pertaining to personnel and labor. The Township’s labor council is provided by Hill Wallack LLP. Expenditures for legal services are directly associated with the number of active lawsuits and legal appeals involving the Township each year, as well as other formal matters such as contract negotiations. The chart below represents the Township’s combined expenditures on general and special legal services. Expenses for legal services were elevated in 2024 due to multiple personnel matters and a complex zoning matter. The increases in 2025 and 2026 are primarily for special legal counsel related to personnel and labor issues. 0 200,000 400,000 600,000 800,000 Legal Services by Year 160 -- 160 of 206 -- Engineering Services The Middletown Township Board of Supervisors appoints a Township Engineer who represents the Township for matters requiring the official review of a professional engineer. The Township Engineer’s services are utilized during all subdivision and land development projects in the Township to ensure compliance with applicable laws and Township ordinances, as well as on infrastructure. The Township Engineer, Isaac Kessler, P.E, from the firm Remington & Vernick Engineers, was appointed in 2018. In addition to the Township Engineer, the Middletown Township Board of Supervisors has also appointed Pennoni to advise on matters pertaining to roadways and traffic. The Township Engineer also reviews permit applications for pools and other minor projects reviewed by the Township. Most of those projects are accounted for in escrow accounts or have fees associated with them to avoid any direct cost to the Township and are therefore excluded from the chart below. The chart below represents those costs incurred directly by the Township for general engineering in the General Fund that are not reimbursed or offset by another source. Costs spent for engineering capital improvement projects are in accounts associated with the projects and are not reflected in the graph below. Engineering services costs were higher in 2024 and 2025 as the Township prepared the Stormwater Impact Fee studies. A proposal to add a staff engineer is expected to primarily reduce the costs incurred in the Capital Fund. 0 50,000 100,000 150,000 200,000 250,000 Engineering Services by Year 161 -- 161 of 206 -- Utilities Electric utilities are provided to all residents in suburban Philadelphia by the Pennsylvania Electric Company (PECO). Middletown Township pays for electricity within its facilities as well as for streetlights throughout neighborhoods in the Township. Electricity supplied to streetlights is paid from the Street Lighting Fund, dedicated for this specific purpose. Electricity at the Middletown Township Municipal Center and other indoor facilities is paid from the General Fund. Since 2017, Middletown Township has been replacing streetlights and interior lights with LED lights that are more energy-efficient than traditional light bulbs, saving several hundred thousand dollars. The Township has continued to replace field lights with LEDs to further reduce energy usage. The conversion of field lights at Middletown Community Park to LEDs was completed in 2025. Important to note for budget purposes, the Township periodically locks in supply rates from energy providers for electric and natural gas utilities for a specified term. While energy consumption may be declining through the use of efficient lighting and appliances, this may not be as clearly depicted in dollars if the cost of the utility increases. The Township’s current energy supply contract expires in spring of 2026. The Township is actively monitoring the market for a new supply contract. Rates are considerably higher than the current contract and are driving expense assumptions for 2026. Just like homeowners, the Township is also subject to rate increases in the delivery charge from PECO on utility bills. This drives incremental increases between energy supply contract periods. The Township proudly utilizes 100% renewable energy for the Township’s operations, achieving a key goal of the Climate Action Plan. 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Projected 2026 Budgeted Utility Costs by Year General Fund Street Lighting Parks and Recreation 162 -- 162 of 206 -- Debt Service and Limitations Debt Service Incurring debt to finance major projects is a normal, common practice in municipal government. This practice allows the Township to build or complete projects quickly and to pay for them in following years. This allows normal programs or services to resume uninterrupted, similar to the way a person takes out a loan to make a large purchase. The Township does not plan to issue any new debt in 2026. Taking advantage of then-record-low interest rates, Middletown Township refinanced General Obligation Bonds Series of 2012, Series of 2014, and Series of 2016 by issuing the Series of 2020 in the amount of $13,895,000 and Series of 2021 in the amount of $6,260,000. The Series of 2020 General Obligation Bond was used to pay off the balances of the Series of 2012 and Series 2014 bonds and issued an additional $3 million of debt to utilize on infrastructure improvements. Each time debt is issued, the Township must receive an official credit rating to assess the Township’s position to borrow money. A strong credit rating typically results in more favorable interest rates. Middletown Township was given a credit rating of Aaa in both 2020 and 2021 by Moody’s—the highest possible credit rating—as a result of strong fund balances, careful financial management, and a robust local economy. In 2023, Moody’s affirmed Middletown Township’s credit rating, and cited the Township’s financial outlook as “stable.” The Township is also paying off a municipal note for the LED Streetlight Conversion Project from 2017. This is a type of loan used commonly for capital projects involving multiple municipalities with a lower interest rate and shorter window of time than a general obligation bond. Debt Limitations Municipalities in Pennsylvania are regulated by the Local Government Unit Debt Act (Act 177) of 1996, which establishes legal limitations for incurring debt. The statute establishes a Township’s borrowing base as a three-year average of revenues. As of November 2025, the Township’s borrowing base is $39,909,190 The Township is legally allowed to borrow 250% (2.5 times) its borrowing base for non-electoral debt. When including non-electoral debt and lease rental debt, this limit increases to 350% (3.5 times) the borrowing base. For 2026, the Township’s non-electoral debt limit is $99,772,970. The Township’s total debt limit including lease rental debt is $139,682,160. The Township will have $6,239,652 in debt principal at the end of 2026, which is 6.30% of the non-electoral debt limit. Additionally, this regulation limits a municipality from borrowing more than 85% of the taxes and revenues received in that fiscal year at any one time. 163 -- 163 of 206 -- 2026 Debt Service Summary 2026 DEBT SERVICE SCHEDULE GENERAL OBLIGATION BONDS FUND YEAR DUE DATE PRINCIPAL INTEREST TOTAL 12/31/26 BALANCE Debt Service 2020 4/15/26 $ - $ 81,300 $ 81,300 10/15/26 550,000 81,300 631,300 $ 550,000 $ 162,600 $ 712,600 $4,835,000 Debt Service 2021 2/15/26 $ - 76,000 $ 76,000 8/15/26 1,825,000 76,000 1,901,000 $1,825,000 $ 152,000 $ 1,977,000 $ 1,215,000 Total General Obligation Bonds $2,375,000 $314,600 $2,689,600 $6,050,000 MUNICIPAL NOTES FUND YEAR DUE DATE PRINCIPAL INTEREST TOTAL 12/31/26 BALANCE LED Street Light Note 2017 Monthly 121,857 7,551 129,408 $189,652 Total Notes $ 121,857 $ 7,551 $ 129,408 $ 189,652 ALL DEBT PRINCIPAL INTEREST TOTAL 12/31/26 BALANCE Total 2026 Debt Service $2,496,857 $322,151 $2,819,008 $6,239,652 General Obligation Bonds The Series of 2020 and Series of 2021 General Obligation Bonds refinanced older bonds and allowed the Township to take on a variety of capital improvement projects related to transportation and accessibility. Some funding was used to improve stormwater management efforts, while other funding was used to finance road repairs. The following tables show the principal and interest payments on each bond for each year and the remaining principal on each bond. 164 -- 164 of 206 -- Series of 2020 2026 DEBT SERVICE SCHEDULE - SERIES OF 2020 GENERAL OBLIGATION BOND ($13,895,000 - 10 Years) Purpose: (1) To refund the Township's General Obligation Bonds, Series of 2012 current outstanding in the aggregate principal amount of $6,350,000 (the "2012 Bonds"), (2) the refunding of the Township's General Obligation Bonds, Series of 2014 currently outstanding in the aggregate principal amount of $6,005,000 (the "2014 Bonds"), (3) capital projects of the Township related to certain improvements and upgrades to the Townships infrastructure and (4) paying the costs and expenses related to the issuance of the Bonds. Interest Principal Interest Interest Total Principal Year Rate (Due Oct 15) (Due April 15) (Due Oct 15) Interest Balance 2020 5.000% $1,525,000 $192,766 $192,766 $ 385,532 $12,370,000 2021 5.000% 1,440,000 255,925 255,925 511,850 10,930,000 2022 5.000% 1,510,000 219,925 219,925 439,850 9,420,000 2023 5.000% 1,580,000 182,175 182,175 364,350 7,840,000 2024 5.000% 1,660,000 142,675 142,675 285,350 6,180,000 2025 5.000% 795,000 101,175 101,175 202,350 5,385,000 2026 5.000% 550,000 81,300 81,300 162,600 4,835,000 2027 5.000% 1,280,000 67,550 67,550 135,100 3,555,000 2028 2.000% 2,615,000 35,550 35,550 71,100 940,000 2029 2.000% 940,000 9,400 9,400 18,800 0 TOTALS $13,895,000 $ 1,288,441 $ 1,288,441 $2,576,882 The Series of 2020 general obligation bond refunded bonds from 2012 and 2014 and provided approximately $3,000,000 of additional funds to be used for infrastructure improvements. The following infrastructure projects were financed using proceeds from the Series of 2020 general obligation bond: • Langhorne-Yardley Road Traffic Improvement Project Engineering, • 2021 Road Improvement Program, • 2022 Road Improvement Program, • Replacement of a footbridge connecting pedestrian traffic over Mill Creek in Levittown, • Site improvements at the Department of Public Works, • Paving of a lot for pickleball courts at the Raymond Mongillo Community Center, and • Paving of parking lots at Twin Oaks Park. 165 -- 165 of 206 -- Series of 2021 2026 DEBT SERVICE SCHEDULE - SERIES OF 2021 GENERAL OBLIGATION BOND ($6,260,000 - 7 Years) Purpose: (1) The advance refunding of the Township's General Obligation Bonds, Series of 2016 currently outstanding in the aggregate principal amount of $6,260,000, (2) the review, planning, design, engineering, construction, reconstruction, furnishing, equipping, repair, alteration, renovation, acquisition, replacement, and improvement of Township streets, roads, highways, intersections, rights-of-way, curbs, sidewalks, bridges, traffic monitoring, and/or control devices, storm-water management facilities, and all related facilities, and (3) paying the costs and expenses relating to the issuance of the Bonds Interest Principal Interest Interest Total Principal Year Rate (Due Aug 15) (Due Feb 15) (Due Aug 15) Interest Balance 2021 5.000% 340,000 - 45,211 45,211 5,920,000 2022 5.000% 445,000 148,000 148,000 296,000 5,475,000 2023 5.000% 475,000 136,875 136,875 273,750 5,000,000 2024 5.000% 495,000 125,000 125,000 250,000 4,505,000 2025 5.000% 1,465,000 112,625 112,625 225,250 3,040,000 2026 5.000% 1,825,000 76,000 76,000 152,000 1,215,000 2027 5.000% 1,215,000 30,375 30,375 60,750 0 TOTALS $ 6,260,000 $ 628,875 $ 674,086 $ 1,302,961 *Amortization schedule updated to show actual payments made. The Series of 2021 general obligation bond refunded a bond from 2016. Since the Township was able to achieve a favorable interest rate, this bond refunding resulted in a savings of approximately $294,000. No additional funds were borrowed under the Series of 2021 general obligation bond. 166 -- 166 of 206 -- LED Street Lighting (Series of 2017) In 2017, the Township participated in the Regional Streetlight Procurement Program supported by the Delaware Valley Regional Planning Commission (DVRPC). The program encouraged municipalities to switch to light-emitting diodes (LEDs), which have a longer lifespan, smaller carbon footprint, and cost less to keep on. The municipal note allowed the Township to replace approximately 3,000 fixtures at one time with LED lights. LED lights not only emit brighter, wider light than traditional bulbs, but the lower operating cost will allow the Township to address lighting in parks which feature older-style lights. LED streetlights bring approximately $150,000 per year of utility and maintenance savings. The Township routinely transfers funds from the Street Lighting Fund to the Debt Service Fund to offset the cost of the repayment of the note. Early payments were made in 2019 which resulted in the timetable for this debt to be paid off being shortened by one year. The amortization table below is updated to reflect the actual payments made to date and the new loan amortization for the remaining principal and interest due. 2026 DEBT SERVICE SCHEDULE - SERIES OF 2017 MUNICIPAL NOTE ($1,306,448 - 12 Years) Purpose: To finance the purchase of LED street lights and other outdoor lighting improvement measures. Interest Principal Year Rate Principal Interest Balance 2017 2.950% $ 76,565 $ 31,274 $ 1,229,883 2018 2.950% 125,794 35,012 1,104,089 2019 2.950% 134,105 31,020 969,984 2020 2.950% 102,112 24,990 867,872 2021 2.950% 105,165 24,243 762,707 2022 2.950% 108,310 19,219 654,397 2023 2.950% 102,589 17,859 551,808 2024 2.950% 114,422 14,986 437,386 2025 2.950% 117,936 11,472 319,450 2026 2.950% 121,512 7,896 197,938 2027 2.950% 125,197 4,211 72,741 2028 2.950% 71,058 714 - TOTALS $ 1,306,448 $ 222,895 *Amortization schedule updated to show actual payments made. 167 -- 167 of 206 -- This page intentionally left blank. 168 -- 168 of 206 -- Capital Improvement Plan The Middletown Township Capital Improvement Plan (CIP) represents a schedule of major and needed improvements to the Township’s physical property and infrastructure, as well as equipment and vehicles necessary to perform the core functions of municipal operations. Projects planned for 2026 are described individually. Additionally, expected changes to operating costs, if any, are listed for each 2026 project. The 2026 CIP proposes a total of $10,435,890 in projects. An additional $48.9 million in projects are proposed between 2027 and 2030. Projects that have been previously budgeted but not yet completed are noted in the plan but will not be described in detail. For 2026, projects have been separated between “Capital Improvement Projects” and “Capital Maintenance Projects” with the goal of differentiating the cost of maintaining existing facilities and infrastructure as compared to new projects. Capital Improvement Projects are defined as new assets or upgrades to existing assets to increase functionality or to adapt them for new uses. Capital Maintenance Projects are those that preserve the current function and value of assets the Township already owns by replacing or restoring them as needed. All projects are categorized based upon their purpose and asset type. These categories largely parallel the Township’s departments, as well as categories where the Township invests significant funds into capital improvements. The CIP is comprised of projects in the following ten categories: ● Building & Grounds ● Building & Zoning ● Fire & Emergency Services ● Information Technology ● Parks & Recreation ● Police ● Public Works ● Storm Sewer & Drains ● *Sustainability ● Transportation No projects are planned in 2026 in the Sustainability category. Each category will list separate the Capital Improvement Projects and Capital Maintenance Projects planned for 2026. 169 -- 169 of 206 -- Purpose Middletown Township’s CIP proactively plans for future capital needs and offers six primary benefits to the Township: • Provides effective project and financial management to minimize budget variability. • Allows for prioritizing of capital needs to ensure the most important projects are funded. • Allows for consideration of current expenditures’ financial effects on future projects. • Saves Township funds through replacing, repairing, or upgrading infrastructure before maintenance or emergency repair costs escalate. • Protects resident safety by ensuring emergency vehicle reliability and removing safety hazards from Township infrastructure. • Positions the Township to earn grant funding to minimize the direct cost of projects. The Township is able to anticipate its upcoming capital needs and prioritize completion based on available funds. A key feature to having a detailed long-term plan is the ability to view projects across all departments together to determine how they align with the Township’s long-term goals. It also helps stakeholders understand the impact each project has on the plan as a whole. Proactively addressing capital needs also can save the Township money over the duration of the plan. Replacing vehicles, for example, prevents sudden increases in vehicle maintenance and can prevent lost productivity if a vehicle were to break down while in use. Building and Grounds 15.4% Building and Zoning 0.4% Fire/Emergency Services 0.7% Information Technology 2.6% Parks & Recreation 6.2% Police 5.0% Public Works 35.3% Storm Sewer & Drains 17.2% Transportation 17.2% 2026 Capital Projects by Category 170 -- 170 of 206 -- In addition to financial benefits, capital planning also improves quality of service and safety for residents. Replacing aging patrol vehicles can ensure a rapid police response time. Repairing walking paths in parks increases the safety of the residents who use those facilities. It also gives residents an assurance of when to expect major infrastructure changes to occur. Projects included in the CIP generally have a long-life expectancy and high cost. Generally, capital projects in this plan cost at least $10,000 and last for five or more years. Some projects involve one-time purchases, such as vehicle replacement, while others involve multi-year construction plans. Additionally, some projects are replacements or upgrades to existing equipment and facilities, while others bring new assets to the Township. The Township takes consideration of how best to allocate resources as funding is required to complete projects and ensure their long-term maintenance and operation. Each department has a specific mission, as well as objectives for the upcoming years. Departments propose projects to the Board of Supervisors that they believe will best meet the needs of the community. Planned Projects by Asset Type Capital improvement projects are organized into one of five asset types: • Building Improvements o Building improvements consist of any modifications to an existing structure. • Equipment o Equipment consists of tools (other than vehicles) used to perform work. Equipment includes physical tools used to perform manual labor and technological and virtual tools such as computers and software systems. • Land Improvements o Land improvements consist of permanent modifications to land, such as construction of buildings and structures, drainage infrastructure, road improvements, and major equipment used for recreation purposes. The term “infrastructure improvements” may also be used to describe this category. The below chart separates Stormwater Improvements into its own category to show a further breakdown. • Professional Services o Professional services consist of consultants performing studies or assisting with grant writing. • Software o Software systems consist of the digital platforms designed to house and process information and facilitate services delivered to the community. • Vehicles o Cars, trucks, and utility vehicles used across all departments. 171 -- 171 of 206 -- Tracking capital improvement projects by asset category is important because each asset type carries a different requirement for financial reporting and accounting for depreciation. It is also a valuable tool in long-term planning since some asset types need to be replaced sooner than others. For example, a vehicle typically has a depreciable life of up to ten years, while stormwater and drainage improvements typically have a depreciable life of fifty years. Funding Overview Middletown Township does not levy a tax specifically for funding capital improvement projects. Because there is no dedicated source of funding for capital improvement projects, the Township has historically used a few strategies to ensure necessary projects are completed. Capital projects are typically funded through transfers from other funds, grants, and debt issuances. In recent years, capital improvement projects have been funded by transfers to the Capital Fund from the General Fund and the Investment Fund. Specific tax funds can also support related capital projects, such as using the Street Lighting Fund to replace street light poles and using the Highway Aid Fund to repave Building Improvement 11% Equipment 10% Land Improvement 51% Professional Services 2% Software 1% Stormwater Improvements 15% Vehicles 10% 2025 Capital Projects by Asset Type Building Improvement Equipment Land Improvement Professional Services Software Stormwater Improvements Vehicles 172 -- 172 of 206 -- roadways. This can be accomplished either through an interfund transfer or by expending the project within the tax fund directly. In 2025, the Board of Supervisors instituted a Stormwater Impact Fee, which is used for maintaining and expanding stormwater management infrastructure and completing projects that improve the quality of stormwater runoff. Additional information about the Stormwater Impact Fee is provided elsewhere in the budget document. Grants are awarded to the Township by a variety of local, state, federal, and private agencies, and serve as a vital funding source for capital improvement projects. The Township routinely pursues grants ranging from a few thousand dollars to several million dollars. The Township is awarded on average $1,000,000 in grants per year, with most grants supporting the purchase of emergency vehicles and transportation improvements. More than $1.4 million of grant revenue has been earned for capital projects planned in 2026. Another $2.5 million has been requested in additional grants for capital projects from various granting agencies that are pending review as of November 2025 for projects planned in 2026. Only grant funds awarded to the Township at the time of budget preparation are calculated as revenues in the 2026 Budget. The Township periodically issues debt by way of a General Obligation Bond or a Municipal Note to support infrastructure improvements. Most recently in January 2020, the Township issued a General Obligation Bond to refund past bonds and issued an additional $3 million of debt to spend on infrastructure improvements. The Township completed spending these funds in 2022. Debt service payments are financed by a portion of the Real Estate Tax. No new debt issuances are contemplated in 2026. 173 -- 173 of 206 -- 2026 Capital Projects 2026 CAPITAL MAINTENANCE & IMPROVEMENT PROJECTS BY CATEGORY Category // Project Total Capital Total Capital Earned Potential Due From Capital Fund Building & Grounds Maintenance Improvements Grant Funding Grant Funding Other Funds Cost North Station Updates $ 128,750 $ 128,750 Municipal Center Roof Repair $ 1,100,000 $1,000,000 $ 100,000 Concrete Replacement $ 300,000 $ 200,000 $ 100,000 *Lobby Security Project $ 50,000 $ 50,000 TOTAL $ 1,528,750 $ 50,000 $ 0 $1,328,750 $ 0 $ 250,000 Building & Zoning *Electric Vehicle $ 45,000 $ 7,500 $ 37,500 TOTAL $ 45,000 $ 0 $ 7,500 $ 0 $ 0 $ 37,500 Fire & Emergency Services Fire Command Vehicle $ 70,000 $ 70,000 TOTAL $ 0 $ 70,000 $ 0 $ 0 $ 0 $ 70,000 Information Technology Desktop Computer Replacement $ 68,500 $ 68,500 Mobile Data Terminals (MDTs) $ 37,000 $ 37,000 Network Maintenance $ 15,000 $ 15,000 Broadcast System Upgrades $ 150,000 $ 150,000 TOTAL $ 120,500 $ 150,000 $ 0 $ 0 $ 0 $ 270,500 Parks & Recreation Community Center Updates $ 50,000 $ 50,000 Middletown Community Park $ 30,000 $ 30,000 Simmons Park $ 350,000 $ 60,000 $ 290,000 Det. Christopher Jones Park $ 100,000 $ 100,000 Twin Oaks Park $ 53,000 $ 53,000 Facility Improvements $ 50,000 $ 50,000 TOTAL $ 633,000 $ 0 $ 0 $ 60,000 $ 573,000 $ 0 Police Vehicles & Equipment $ 330,000 $ 270,952 $ 59,048 Body & In-Car Cameras $ 110,000 $ 110,000 Weapons & Gear $ 45,000 $ 45,000 Indoor Firearm Range $ 25,000 $ 25,000 TOTAL $ 510,000 $ 0 $ 0 $ 270,952 $ 0 $ 239,048 174 -- 174 of 206 -- *Denotes funds already appropriated and carried forward from prior year. 2026 CAPITAL MAINTENANCE & IMPROVEMENT PROJECTS BY CATEGORY (CONT.) Category // Project Total Capital Total Capital Earned Potential Due From Capital Fund Public Works Maintenance Improvements Grant Funding Grant Funding Other Funds Cost Road Program $ 2,000,000 $2,000,000 Public Works Building Improvements $ 150,000 $ 150,000 Vehicles $ 546,000 $ 335,000 $ 820,808 $ 60,192 Heavy Equipment $ 36,500 $ 135,000 $ 171,500 Light Equipment $ 30,000 $ 30,000 *Guiderail Work $ 55,000 $ 55,000 Roadway Striping $ 35,000 $ 35,000 Footbridge Repair $ 40,000 $ 40,000 TOTAL $ 2,742,500 $ 620,000 $ 0 $ 820,808 $2,296,692 $ 245,000 Storm Sewer & Drains Inlet Tops & Collars $ 160,000 $ 160,000 *Langhorne Gables $ 644,140 $ 644,140 *Reetz Avenue Culvert $ 450,000 $ 450,000 Hillside Avenue $ 310,000 $ 310,000 Engineer Future Projects $ 198,000 $ 198,000 TOTAL $ 160,000 $ 1,602,140 $ 644,140 $ 0 $ 1,118,000 $ 0 Transportation ADA Curb Ramp Program $ 750,000 $ 750,000 *Langhorne-Yardley/ Maple Point Crossing $ 200,000 $ 146,283 $ 53,717 *School Zone Improvements $ 500,000 $ 300,000 $ 200,000 *Maple Ave/N. Flowers Mill Signal Improvements $ 175,000 $ 138,888 $ 36,112 *Pedestrian Signal Equipment Upgrades $ 229,000 $ 229,000 Traffic Signal Mast Arm Replacement $ 150,000 $ 150,000 S. Flowers Mill Bridge Clearance $ 200,000 $ 65,000 TOTAL $ 150,000 $ 2,054,000 $ 814,171 $ 0 $ 0 $1,254,829 Total Capital Total Capital Earned Potential Due From Capital Fund Maintenance Improvements Grant Funding Grant Funding Other Funds Cost TOTAL COSTS $ 5,889,750 $ 4,456,140 $ 1,465,811 $ 2,480,510 $3,987,692 $2,501,877 175 -- 175 of 206 -- Category // Project 2026-2030 CAPITAL PROJECT PLAN Building & Grounds 2026 2027 2028 2029 2030 Five-Year Total North Station Updates $ 128,750 $ 128,750 Muni. Center Improvements $1,150,000 $ 525,000 $ 40,000 $ 50,000 $ 50,000 $ 1,815,000 Concrete Replacement $ 300,000 $ 300,000 Langhorne Spring Water Co. $ 340,000 $ 60,000 $ 400,000 TOTAL $1,578,750 $ 865,000 $ 100,000 $ 50,000 $ 50,000 $ 2,643,750 Building & Zoning 2026 2027 2028 2029 2030 Five-Year Total Electric Vehicle $ 45,000 $ 45,000 $ 90,000 TOTAL $ 45,000 $ 45,000 $ 0 $ 0 $ 0 $ 90,000 Fire & Emergency Services 2026 2027 2028 2029 2030 Five-Year Total Vehicles $ 70,000 $ 70,000 $ 140,000 Fire Apparatus & Equipment $3,860,000 $1,450,000 $ 5,310,000 TOTAL $ 70,000 $3,930,000 $ 0 $1,450,000 $ 0 $ 5,450,000 Information Technology 2026 2027 2028 2029 2030 Five-Year Total Desktop Computer Replacement $ 68,500 $ 11,000 $ 44,500 $ 68,500 $ 10,000 $ 202,500 Mobile Data Terminals (MDTs) $ 37,000 $ 25,000 $ 35,000 $ 30,000 $ 35,000 $ 162,000 Network Maintenance $ 15,000 $ 30,000 $ 48,000 $ 93,000 Broadcast System Upgrades $ 150,000 $ 150,000 Website Redesign $ 75,000 $ 75,000 Software Systems $ 550,000 $ 250,000 $ 800,000 Wireless Updates $ 180,000 $ 180,000 Security System Replacement $ 252,000 $ 252,000 TOTAL $ 270,500 $ 691,000 $ 377,500 $ 278,500 $ 297,000 $ 1,914,500 Parks & Recreation 2026 2027 2028 2029 2030 Five-Year Total Community Center Updates $ 50,000 $ 200,000 $ 300,000 $ 550,000 Middletown Community Park $ 30,000 $ 100,000 $1,000,000 $ 350,000 $ 1,480,000 Simmons Park $ 350,000 $ 200,000 $ 200,000 $ 750,000 Det. Christopher Jones Park $ 100,000 $ 100,000 Twin Oaks Park $ 53,000 $ 53,000 Facility Improvements $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Firefighters' Park $ 155,000 $ 500,000 $ 655,000 Deep Dale East Park $ 100,000 $ 100,000 Upper Orchard Park $ 125,000 $ 125,000 Forsythia Crossing Park $ 250,000 $ 250,000 TOTAL $ 633,000 $805,000 $1,350,000 $ 625,000 $ 900,000 $ 4,313,000 Police 2026 2027 2028 2029 2030 Five-Year Total Vehicles & Equipment $ 330,000 $ 427,500 $ 385,000 $ 437,500 $ 445,000 $ 2,025,000 Body & In-Car Cameras $ 110,000 $ 110,000 $ 110,000 $ 110,000 $ 440,000 Weapons & Gear $ 45,000 $ 15,000 $ 60,000 Indoor Firearm Range $ 25,000 $ 25,000 TOTAL $ 510,000 $ 552,500 $ 495,000 $ 547,500 $ 445,000 $ 2,550,000 Five-Year Capital Project Plan 176 -- 176 of 206 -- Category // Project 2026-2030 CAPITAL PROJECT PLAN (CONT.) Public Works 2026 2027 2028 2029 2030 Five-Year Total Road Program $ 2,000,000 $ 2,000,000 $ 2,000,000 $2,000,000 $2,000,000 $10,000,000 Public Works Building Improvement $ 150,000 $ 3,000,000 $ 2,000,000 $5,150,000 Vehicles $ 881,000 $ 500,000 $ 570,000 $28,000 $590,000 $2,569,000 Heavy Equipment $ 171,500 $ 273,500 $65,000 $510,000 Light Equipment $ 30,000 $ 10,000 $ 32,000 $12,000 $34,000 $118,000 Guiderail ork $ 55,000 $ 25,000 $ - $80,000 Roadway Striping $ 35,000 $ 75,000 $ 75,000 $ 75,000 $75,000 $335,000 Footbridge Repair/Replace. $ 40,000 $ 50,000 $ 625,000 $250,000 $965,000 TOTAL $ 3,362,500 $ 5,933,500 $5,302,000 $2,365,000 $2,764,000 $19,727,000 Storm Sewer & Drains 2026 2027 2028 2029 2030 Five-Year Total Inlet Tops & Collars $ 160,000 $ 150,000 $ 175,000 $ 150,000 $ 200,000 $ 835,000 Langhorne Gables Phase II $ 644,140 $ 644,140 Reetz Avenue Culvert $ 450,000 $ 450,000 Hillside Avenue $ 310,000 $ 310,000 Engineer Future Projects $ 198,000 $ 75,000 $ 260,000 $ 11,000 $ 544,000 Streambank Restorations $ 1,570,000 $ 1,890,000 $ 500,000 $ 750,000 $ 4,710,000 Richardson Avenue $ 150,000 $ 150,000 Playwicki Street Culvert $ 330,000 $ 330,000 Wheeler Way $ 350,000 $ 350,000 Sediment Removal $ 1,000,000 $ 1,000,000 Silver Lake Road $ 110,000 $ 110,000 TOTAL $ 1,762,140 $ 2,275,000 $ 2,325,000 $ 2,011,000 $ 1,060,000 $9,433,140 Sustainability 2026 2027 2028 2029 2030 Five-Year Total Solar Projects $ 200,000 $ 350,000 $ 550,000 $ 1,100,000 Park Recycling Containers $ 50,000 $ 50,000 EV Charging Stations $ 60,000 $ 80,000 $ 550,000 $ 690,000 Weatherization $ 150,000 $ 150,000 TOTAL $ 0 $ 250,000 $ 560,000 $ 80,000 $ 1,100,000 $ 1,990,000 Transportation 2026 2027 2028 2029 2030 Five-Year Total ADA Curb Ramp Program $ 750,000 $ 750,000 $ 750,000 $ 750,000 $ 750,000 $ 3,750,000 L-Y Rd./Maple Pt. Xing $ 200,000 $ 200,000 School Zone Improvements $ 500,000 $ 500,000 Maple/N. Flow. Mill Signals $ 175,000 $ 175,000 Pedestrian Signal Equipment $ 229,000 $ 229,000 Traffic Signal Mast Arms $ 150,000 $ 100,000 $ 25,000 $ 150,000 $ 150,000 $ 675,000 S. Flowers Mill Bridge Clearance $ 200,000 $ 200,000 Bike Lane and Sharrows $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 2,000,000 Illuminated Signal Signs $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 80,000 Sidewalk Construction $ 200,000 $ 600,000 $ 1,500,000 $ 2,300,000 Turn Lane Addition $ 50,000 $ 50,000 Adaptive Signal System Expansion $ 300,000 $ 300,000 $ 500,000 $ 1,100,000 TOTAL $ 2,204,000 $ 1,620,000 $ 2,295,000 $ 3,220,000 $1,920,000 $11,259,000 ALL CATEGORIES 2026 2027 2028 2029 2030 Five-Year Total TOTAL COSTS $10,435,890 $16,967,000 $12,804,500 $10,627,000 $8,536,000 $59,370,390 177 -- 177 of 206 -- Impact on Operating Expenses Several projects in the Capital Improvement Plan will have an ongoing impact to the Township’s operating budget, meaning select projects will reflect an additional expense or savings to the Township beyond this fiscal year, which are considered during the authorization process by the Board of Supervisors. Projects with no or indefinite future impacts to operating costs are excluded from the table below. Savings are listed as positive numbers; expenses are listed as negative numbers (in parentheses). In 2026, the Township expects to save a net total of approximately $12,750 from its capital improvement projects. Building & Ground Savings (Expense) Source of Savings Municipal Center Roof Repair $ 35,000 Energy efficiency; reduced maintenance costs. Building & Zoning Savings (Expense) Source of Savings Electric Vehicle $ 4,500 Fuel efficiency; reduced maintenance costs Parks & Recreation Savings (Expense) Source of Savings Facility Improvements $ 2,500 Reduced energy consumption from new systems. Police Savings (Expense) Source of Savings Vehicles (Police) $ 10,000 Fuel efficiency; reduced maintenance costs. Public Works Savings (Expense) Source of Savings Road Improvement $ 10,000 Staff efficiency of 200 hours for less road maintenance; savings on road repair materials. Vehicles (DPW) $ 15,000 Fuel efficiency; reduced maintenance costs. Heavy Equipment (DPW) $ 5,000 Fuel efficiency; reduced maintenance costs; additional piece of equipment (added maintenance). Stormwater Savings (Expense) Source of Savings Inlet Tops & Collars $ (100,000) Staff time of 1,500 hours to install infrastructure. Reetz Avenue Culvert $ 5,000 Estimated reduction in staff time for maintenance. Transportation Savings (Expense) Source of Savings Langhorne-Yardley Road Maple Point Crossing $ 250) Increased energy utilization for new amenity. School Zone Improvements $ 1,000 Reduced energy consumption. Maple Avenue/N. Flowers Mill Signal Improvements $ 5,000 Reduced contracted services. S. Flowers Mill $ 20,000 Reduced staff time responding to emergencies. TOTAL NET SAVINGS $ 12,750 178 -- 178 of 206 -- Building & Grounds The Building and Grounds category includes any physical improvements to Township facilities that are not otherwise assigned to a different category. Most expenditures in this category are maintenance items for the Middletown Township Municipal Center, but may include other Township- owned facilities. Some expenditures are ongoing grounds improvements, while others are significant, individual upgrades such as security enhancements. At 25 years of age, the routine maintenance costs for the Middletown Township Municipal Center are beginning to increase. These projects are typically funded by the Capital Fund. Building & Grounds 2026 2027 2028 2029 2030 Five-Year Total North Station Updates $ 128,750 $ 128,750 Municipal Center Improvements $ 1,150,000 $ 525,000 $ 40,000 $ 50,000 $ 50,000 $ 1,815,000 Concrete Replacement $ 300,000 $ 300,000 Langhorne Spring Water Company $ 340,000 $ 60,000 $ 400,000 TOTAL $ 1,578,750 $ 865,000 $ 100,000 $ 50,000 $ 50,000 $ 2,643,750 North Station Updates - $128,750 Built in 2008, the North Station houses satellite stations for both the Langhorne- Middletown Fire Co. and Penndel- Middletown Emergency Squad. Unlike most other stations in the Township, this facility is owned by Middletown Township and leased to the emergency response agencies. The agencies are responsible to maintain the day-to-day needs of the station. However, large repairs may necessitate Township involvement. Much of the building and its finishes are original. Flooring in the vehicle bays was replaced in 2025. The exterior stucco is beginning to deteriorate, due in part to an issue with the roof. A grant application has been submitted to the Bucks County Redevelopment Authority (RDA) Municipal Grants Program for funding. If external funding is not secured, these repairs will be carried by the Capital Fund. As the only fire station owned by the Township and one of the only locally with bunking quarters, this station will continue to play a central role in the delivery of fire services to the community. 179 -- 179 of 206 -- Municipal Center Improvements - $1,150,000 The Middletown Township Municipal Center welcomes thousands of residents, business owners, contractors, and others seeking to access Township services each year. Since the building was constructed in 2001, the perimeter of the roof has begun to leak during heavy storms. As this issue has persisted, damage to the facility continues to worsen. While a full replacement of the metal roof is not anticipated, significant repairs will be needed to make sure water does not enter the interior of the building. While this work is underway, the downspouts on the building will also be addressed to be sure stormwater runoff from the roof is being managed and discharged appropriately. Additionally, a small issue with the roof overhang near the secure Police parking lot will also be addressed. A grant application has been submitted to support the cost of the roof repair. In addition to the roof, a security enhancement to the interior of the building will also be completed, for which funds were allocated in 2025 and are being carried forward. Concrete Replacement - $300,000 In addition to the roof, the concrete in front of the Municipal Center is also beginning to show its age. Pavers in the building’s courtyard area are uneven and can create a tripping hazard. Elsewhere, there are sections of concrete that have deteriorated due to weather and use. A grant application will be submitted to assist with the cost of this project. Staff from the Public Works department may be able to assist with elements of this project in an effort to control costs. 180 -- 180 of 206 -- Building & Zoning The Department of Building & Zoning oversees all permitting, land development, zoning, code enforcement, and inspections for the Township. Their efforts ensure structures are safe for residents and business patrons to inhabit and preserve a comfortable quality of life for the community. The Department of Building & Zoning typically has few capital expenses, with the primary need being for vehicles for certain inspectors and officers in the field. These purchases are typically made from the Capital Fund, unless grants or other funds are available. Electric Vehicle- $45,000 One electric inspector vehicle is proposed in 2026. Funds for this purchase were allocated in and are being carried forward from 2025. A $7,500 grant from the Pennsylvania Department of Environmental Protection (DEP) has been earned to offset the vehicle cost. An electric vehicle also has a lower maintenance and operating cost than a typical gasoline-powered vehicle. The balance of the purchase will be expended from the Capital Fund. Building & Zoning 2026 2027 2028 2029 2030 Five-Year Total *Electric Vehicle $ 45,000 $ 45,000 $ 90,000 TOTAL $ 45,000 $ 45,000 $ 0 $ 0 $ 0 $ 90,000 181 -- 181 of 206 -- Fire & Emergency Services The Department of Fire & Emergency Services is responsible for fire inspections, fire prevention, and daytime emergency response. The Township is served by four volunteer fire companies supplemented by paid firefighters from the Department of Fire & Emergency Services. All fire services are under the direction of the career Fire Chief. Many of the Department’s needs are funded through the Capital Fund, but grant funding is available in some cases as well. Vehicles and equipment are periodically purchased to support these efforts. Larger firefighting apparatus is funded through a special Real Estate Tax levy held in the Fire Apparatus Fund. Authorized in October 2023, a fire engine for use by career firefighters is planned for purchase in early 2027. Two additional engines were authorized for the volunteer fire companies, all of which will be expended from the newly-created Fire Apparatus Fund. Fire & Emergency Services 2026 2027 2028 2029 2030 Five-Year Total Vehicles $ 70,000 $ 70,000 $ 140,000 Fire Apparatus & Equipment $3,860,000 $1,450,000 $ 5,310,000 TOTAL $ 70,000 $3,930,000 $ 0 $1,450,000 $ 0 $ 5,450,000 Fire Command Vehicle - $70,000 In addition to large apparatus used to respond to emergencies, smaller utility-body trucks are also incorporated into the fleet to minimize wear on apparatus and to facilitate command of fireground operations. With a new Chief of Fire & Emergency Services planned to be hired in 2026, a vehicle that is conducive to command operations on the scene of an emergency is planned for purchase in 2026. A vehicle currently assign to this role will be repurposed in the Public Works department. This purchase will be made from the Capital Fund. 182 -- 182 of 206 -- Information Technology Information Technology (IT) expenditures typically involve significant upgrades or changes to the Township’s software, hardware, and network capabilities. Most IT equipment purchases, such as new servers or annual computer upgrades, are considered capital projects. IT projects are typically funded through the Capital Fund. Even though some projects are specific to single departments, all technology capital expenses are incurred here. Information Technology 2026 2027 2028 2029 2030 Five-Year Total Desktop Computer Replacement $ 68,500 $ 11,000 $ 44,500 $ 68,500 $ 10,000 $ 202,500 Mobile Data Terminals (MDTs) $ 37,000 $ 25,000 $ 35,000 $ 30,000 $ 35,000 $ 162,000 Network Maintenance $ 15,000 $ 30,000 $ 48,000 $ 93,000 Broadcast System Upgrades $ 150,000 $ 150,000 Website Redesign $ 75,000 $ 75,000 Software Systems $ 550,000 $ 250,000 $ 800,000 Wireless Updates $ 180,000 $ 180,000 Security System Replacement $ 252,000 $ 252,000 TOTAL $ 270,000 $ 691,000 $ 377,500 $ 278,500 $297,000 $ 1,914,500 Desktop Computer Replacement - $68,500 Most Township employees require the use of a computer for their day-to-day tasks. As computers age, they become obsolete and are more likely to impact efficiency. The Township has developed a schedule to regularly replace all of its computers. Replacing computers is essential to ensuring that employees can work efficiently. The first year of the computer replacement plan was implemented in 2020. Computers are replaced, on average, every five to six years. Many computers are being replaced with laptops to allow employees the ability to perform work away from their work station. Prices for new computers are expected to increase steadily in future years. New computers will require less maintenance and be more secure than the machines they will replace. The purchases will be made through the Capital Fund. 183 -- 183 of 206 -- Mobile Data Terminals (MDTs) - $37,000 Each Police Department and Fire & Emergency Services Department vehicle has an on-board computer that allows reporting and data access for officers on patrol or in the field. They are especially valuable when interacting with members of the public or suspects as they can access records necessary for law enforcement and emergency response purposes. Future project costs are expected to increase due to rising technology prices and anticipated equipment failure. The MDTs will be purchased using funds from the Capital Fund. Network Maintenance - $15,000 The Township’s network—the backbone of all digital services—is one of the most vital pieces of infrastructure in the Township’s possession. Maintaining the devices and systems that comprise the Township’s network is vital to the delivery of nearly every service provided by the Township. Network switches are planned to be replaced in 2026. Long-term network maintenance costs are expected to decrease as more systems are migrated from an on-site to a cloud-based network. This purchase will be made from the Capital Fund. Broadcast System Upgrades - $150,000 The Township’s Public Hall is equipped with a broadcast system utilized to record and transmit public meetings for residents to view from home. The system for the Public Hall routinely needs investment to ensure the viewers receive the best possible experience. New microphones were purchased in 2025 for use in this space. In 2026, system improvements are planned in an effort to modernize the system and make it more conducive to automation. Currently, one to three people are needed to facilitate recordings. An automated system has the potential to reduce the need for staffing some recordings. Also in 2026, the Township will begin to record and televise meetings of the Planning Commission. Upgrades to the system will be vital if additional advisory boards move to televised meetings in the future. This purchase will be made from the Capital Fund. 184 -- 184 of 206 -- Parks & Recreation Capital investments in the Parks & Recreation Department primarily include improving and maintaining facilities, constructing new amenities, making changes for safety, and replacing equipment. Specific projects range from routine maintenance at buildings to replacing amenities at parks. While maintenance services and minor equipment replacement are funded through operating expenditures, this plan focuses on larger improvements and upgrades that have a higher cost and longer lifespan than minor improvements. With an increase to the Parks & Recreation Real Estate Tax in 2026, the Parks & Recreation Fund will be better suited to supporting capital maintenance projects long-term, relying less upon the Capital Fund. State grants from the PA Department of Conservation and Natural Resources (DCNR) and PA Department of Community and Economic Development (DCED) also support the cost of planned Parks & Recreation capital projects. Parks & Recreation 2026 2027 2028 2029 2030 Five-Year Total Community Center Updates $ 50,000 $ 200,000 $ 300,000 $ 550,000 Middletown Community Park $ 30,000 $ 100,000 $1,000,000 $ 350,000 $ 1,480,000 Simmons Park $ 350,000 $ 200,000 $ 200,000 $ 750,000 Det. Christopher Jones Park $ 100,000 $ 100,000 Twin Oaks Park $ 53,000 $ 53,000 Facility Improvements $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Firefighters' Park $ 155,000 $ 500,000 $ 655,000 Deep Dale East Park $ 100,000 $ 100,000 Upper Orchard Park $ 125,000 $ 125,000 Forsythia Crossing Park $ 250,000 $ 250,000 TOTAL $ 633,000 $ 805,000 $1,350,000 $ 625,000 $ 900,000 $ 4,313,000 Community Center Updates - $50,000 The Raymond P. Mongillo Community Center, located on Trenton Road in Levittown, houses the activities and services of the Middletown Senior Citizen Association. Originally operated as a school, this facility served as the Municipal Center for several decades until the current Municipal Center was opened in 2001. While many updates have been made to the Community Center over the years, aspects of the facility still show its age. One such example is the restroom facilities. While an accessible restroom is available, the most centrally-located restroom at the building is not conducive to serving an older clientele. A restroom renovation compliant with the Americans with Disability Act (ADA) is planned for 2026. The Public Works department will assist with aspects of the project in an effort to control costs. 185 -- 185 of 206 -- Middletown Community Park - $30,000 One of the largest parks in the Township, Middletown Community Park houses several baseball and soccer fields, as well as a skatepark and barn facility used for recreation programming. With so much activity, security for both the facilities and visitors is a growing priority. Security enhancements were made to the barn facility in recent years. In 2026, security cameras are planned for the remainder of the park. Similar security enhancements may be implemented at other parks in future years. This project will be expended from the Parks & Recreation Fund. Simmons Park - $350,000 Originally known as Veterans Park, Lance Corporal Harry J. Simmons, Jr. Park was renamed to honor the Langhorne-native who gave his life serving in the United States Marine Corps in the Vietnam War. Tennis courts at the park are showing signs of age and need to be updated. Repaving and painting of the courts as well as new fencing are planned in 2026. This project will be expended from the Parks & Recreation Fund. Detective Christopher Jones Park - $100,000 Named for the late Middletown Township Police Department Detective Christopher Jones who tragically lost his life in the line of duty in 2009, the park named in his honor is located on Maple Avenue near Langhorne Borough. The park features a playground that is at the end of its useful life and is due to be replaced in 2026. This project will be expended from the Parks & Recreation Fund. Twin Oaks Park - $53,000 Home to the Middletown Athletic Association (MAA), Twin Oaks Park is a large facility featuring several baseball and softball fields. Adjacent to both Trenton Road and Woodbourne Road, safety netting is located along the roads in certain areas to prevent balls from leaving the park. The netting is beginning to show signs of age and is in need of replacement. This project will be expended from the Parks & Recreation Fund. Facility Improvements - $50,000 Several buildings associated with the Township’s park facilities require various kinds of routine maintenance and system replacement to keep them in proper working order. These include updating systems like heating and air conditioning units and well as restroom fixtures. Some systems are replaced proactively to ensure continuity of operations and reduce maintenance costs while others are replaced upon failure or damage to an existing system. This project will be expended from the Parks & Recreation Fund. 186 -- 186 of 206 -- Police The Police Department requires capital improvements to maintain and enhance their ability to provide public safety. The key driver of capital costs for the Police Department is the vehicle replacement plan, as several vehicles must be replaced each year. The Department will also see several technical upgrades during the scope of this CIP that will increase officer and resident safety, update data systems, and bring down Township operating costs. Police 2026 2027 2028 2029 2030 Five-Year Total Vehicles & Equipment $ 330,000 $ 427,500 $ 385,000 $ 437,500 $ 445,000 $ 2,025,000 Body & In-Car Cameras $ 110,000 $ 110,000 $ 110,000 $ 110,000 $ 440,000 Weapons & Gear $ 45,000 $ 15,000 $ 60,000 Indoor Firearm Range $ 25,000 $ 25,000 TOTAL $ 510,000 $ 552,500 $ 495,000 $ 547,500 $ 445,000 $ 2,550,000 Vehicles & Equipment - $330,000 Police vehicles experience more wear and abuse than other Township vehicles, and they often must be replaced more frequently. This number includes marked vehicles for patrol officers and unmarked vehicles for detectives and lieutenants. Typically, four or five marked and unmarked vehicles are replaced each year. Vehicles are often shuffled through various assignments within the Police Department to maximize their useful life. In 2026, the Police Department will purchase and outfit four (4) marked patrol cars and one (1) unmarked car. Patrol cars are used for everyday patrolling and emergency response and are the backbone of the Police Department’s ability to provide service. Vehicle replacement is an ongoing cost. New vehicles require less maintenance investment and suffer less downtime for repairs. The Bucks County Redevelopment Authority (RDA) has become a steady funding source for Police vehicles over the last ten years. The Township again applied for grants from the RDA to fund the purchase of these vehicles. Any remaining costs beyond grant funds will be paid from the Capital Fund. 187 -- 187 of 206 -- Body & In-Car Cameras - $110,000 Body cameras are a critical component to policing in the United States. The use of body cameras has increased nationwide over the last ten years, and the footage they capture has become pivotal in solving many crimes where direct interaction between officers and criminals occur. The footage can also be used to provide ongoing training opportunities to other officers. In 2024, body cameras were implemented for all officers in Middletown Township. Additionally, the aging in-car camera system was also replaced in 2024. The purchase was made with a five- year payment plan, with 2026 representing year three of five. This payment will be made from the Capital Fund. Weapons and Gear - $45,000 All police officers are equipped with a variety of lethal and non-lethal weapons for use when facing violent or uncontrollable suspects that need to be subdued. In 2026, tasers and rifles are planned to be replaced as they are at the end of their useful life. Tasers have a limited lifespan set by the manufacturer that requires replacement every few years. This project will be paid for from the Capital Fund. Indoor Firearm Range - $25,000 The Middletown Township Police Department is fortunate to have an indoor firearm range for training on-site. While using weapons during an emergency response is fortunately rare, officers are required to perform regular training to ensure their skills, especially when under pressure, remain sharp. The range is also used periodically by other police departments from around the County for training. The planned improvements will continue to keep the facility in proper working order. This project will be paid for by the Capital Fund. 188 -- 188 of 206 -- Public Works The Department of Public Works is responsible for a wide variety of road and safety projects, and their capital needs reflect the diversity of their responsibilities. Some projects, such as road , are ongoing and have an average budgeted amount each year. Other projects are specific purchases of equipment. Each of the Department’s capital projects are geared toward fixing roads, upgrading equipment, traffic safety, and employee safety. General infrastructure improvements are often categorized here as well. Projects are funded through the Capital Fund, Highway Aid Fund, Road Machinery Fund, RDA grants, and bonds. Public Works 2026 2027 2028 2029 2030 Five-Year Total Road Program $ 2,000,000 $ 2,000,000 $2,000,000 $2,000,000 $2,000,000 $10,000,000 Public Works Building Improvement $ 150,000 $ 3,000,000 $2,000,000 $ 5,150,000 Vehicles $ 881,000 $ 500,000 $ 570,000 $ 28,000 $ 590,000 $ ,569,000 Heavy Equipment $ 171,500 $ 273,500 $ 65,000 $ 510,000 Light Equipment $ 30,000 $ 10,000 $ 32,000 $ 12,000 $ 34,000 $ 118,000 *Guiderail Work $ 55,000 $ 25,000 $ 80,000 Roadway Striping $ 35,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 335,000 Footbridge Repair $ 40,000 $ 50,000 $ 625,000 $ 250,000 $ 965,000 TOTAL $ 3,362,500 $ 5,933,500 $5,302,000 $2,365,000 $2,764,000 $19,727,000 Road Improvement Program - $2,000,000 The Road Improvement Program repaves roads on a schedule as pavement wears with use over time. While some repair work is completed with Department of Public Works staff, larger repaving projects are typically contracted out. Roads must be repaired on a schedule because delays cause additional wear to roads, making them more expensive to fix and maintain over longer periods of time. The Township only paves the roads it owns. State roads are paved by the PA Department of Transportation (PennDOT), and private neighborhoods 189 -- 189 of 206 -- maintain their own roads. Improved roads reduce the need for additional maintenance costs. In 2026, the Township plans to significantly increase the volume of road paving performed on a yearly basis—planning four times the resources in 2026 than were allocated in 2025. Several neighborhoods in the Township’s Levittown section are planned for repaving in 2026, including more than nine miles in the Juniper Hill, Cobalt Ridge, Forsythia Gate, and Quincy Hollow neighborhoods. Public Works recently deployed an artificial intelligence-driven software that passively monitors the conditions of roads to help objectively prioritize maintenance efforts. In 2026, the Highway Aid Fund will cover the full cost of road paving. Projected costs for this project include engineering costs. Public Works Building Improvements - $150,000 Parts of Department of Public Works site on Veterans Highway date back to the 1950s, and there are significant parts of the yard that are not being utilized to their full capacity. In 2023, the Township completed relocation of fuel tanks to an above-ground arrangement. In 2024, a new winter operations and salt storage building was completed. The final phases of the project include demolition of the rear garage building and replacement with a pole barn structure for more effective equipment storage. Improvements to the main office/garage building are also planned. Funding has been requested from the federal government and state government to assist with implementing this project. The vast majority of these improvements are contingent upon obtaining external funding. The 2026 budget contemplates resources to engineer the improvements for this facility. These design costs will be incurred in the Capital Fund. Vehicles - $881,000 The Department of Public Works maintains a fleet of vehicles for transporting supplies, snow plowing, and other road and park maintenance activities. The Department of Public Works owns large and small dump trucks as well as pickup trucks that are used during regular activities. There are also specialty vehicles such as a street sweeper and bucket truck that are utilized for specific tasks. Vehicles are replaced on average every fifteen to twenty years. It is important that the Department of Public Works vehicles work when performing critical tasks such as road repair and snow removal. Regularly replacing vehicles helps prevent unwanted downtime while also preventing excessive maintenance costs. 190 -- 190 of 206 -- Vehicles are purchased on an ongoing basis. In 2026, one (1) large dump truck, one (1) small dump truck, and one (1) pickup truck with all necessary equipment will be purchased. One (1) street sweeper and one (1) enclosed trailer are also planned. The vehicles being replaced are twenty years old and incur significant maintenance costs. The new vehicles will save on that cost while allowing the mechanics to spend more time with other vehicles. The Township has applied for RDA grant funding for these vehicles. If RDA grants are not awarded, vehicles will be purchased using the Road Machinery Fund, a designated fund that exists to pay for Public Works vehicles. Heavy Equipment - $171,500 Heavy equipment is defined as any equipment large enough to be operated by a seated driver and usually weighs over one (1) ton. In 2026, the Department of Public Works is planning to purchase an excavator and an open trailer. The excavator will be used to facility construction projects and avoid the need to rent this machine when needed. The trailer will be used to transport the excavator or other pieces of equipment to and from construction sites around the Township. These items are slated for purchase from the Road Machinery Fund. Light Equipment - $30,000 Light equipment is defined as any equipment small enough to be operated by hand, or equipment weighing less than one (1) ton, usually items used for specialty tasks. In 2026, two zero-turn mowers will be purchased, critical in mowing the more than 800 acres of grass around the Township. These items will be expended from the Road Machinery Fund. Roadway Striping - $35,000 The Township is responsible for maintaining the markings at all major intersections. The Township will remove current, faded markings and repaint them using a long-lasting thermoplastic. Traffic safety is a responsibility and high priority for the Township. Faded markings can be more difficult for motorists to see, potentially causing them to stop in the wrong place or fail to see a crosswalk. This project is not expected to have an impact on operating costs. This project will be funded through the Capital Fund. Footbridge Repair - $40,000 Several footbridges throughout the Township span the two sides of area waterways, making it possible for pedestrians to cross between neighborhoods. Located primarily in Levittown, some footbridges are still original from when the area was first developed. A footbridge near Walter Miller Elementary School needs to be repaired in 2026. Fortunately, it is still strong enough to avoid needing a full replacement. This project will be expended from the Capital Fund. 191 -- 191 of 206 -- Storm Sewer & Drains Stormwater management is an essential part of maintenance that helps prevent flooding and environmental hazards in the Township. A rapidly growing capital project category, the Board of Supervisors instituted a Stormwater Impact Fee for 2025 to support the cost of maintaining stormwater management infrastructure and improving the quality of stormwater runoff throughout the community. These projects will be paid for from the Stormwater Fund. Several specific plans for stormwater management exist for the projects targeted in the coming years. Two major projects—Langhorne Gables and Reetz Avenue—are in progress and have funds allocated from a prior year. Both projects will be completed in 2026. Improvements to Hillside Avenue are also planned in 2026. In addition to construction projects, an ongoing allowance for maintaining infrastructure, such as inlets, is also required. Since the Township holds a Municipal Separate Storm Sewer System (MS4) permit, the Township is obligated to perform storm sewer and drainage improvements and ensure the quality of stormwater runoff meets regulatory standards. Storm Sewer & Drains 2026 2027 2028 2029 2030 Five-Year Total Inlet Tops & Collars $ 160,000 $ 150,000 $ 175,000 $ 150,000 $ 200,000 $ 835,000 *Langhorne Gables Phase II $ 644,140 $ 644,140 *Reetz Avenue Culvert $ 450,000 $ 450,000 Hillside Avenue $ 310,000 $ 310,000 Engineer Future Projects $ 198,000 $ 75,000 $ 260,000 $ 11,000 $ 544,000 Streambank Restorations $1,570,000 $1,890,000 $ 500,000 $ 750,000 $ 4,710,000 Richardson Avenue $ 150,000 $ 150,000 Playwicki Street Culvert $ 330,000 $ 330,000 Wheeler Way $ 350,000 $ 350,000 Sediment Removal $1,000,000 $ 1,000,000 Silver Lake Road $ 110,000 $ 110,000 TOTAL $ 1,762,140 $2,275,000 $2,325,000 $2,011,000 $1,060,000 $ 9,433,140 Inlet Tops & Collars - $160,000 Stormwater inlets in neighborhoods consist of several specialty components. Much of the routine maintenance on the Township’s stormwater infrastructure is performed in-house by the Department of Public Works. This allows the Township to greatly curb maintenance costs compared to hiring a contractor to complete the work. However, this means that these components must be procured so they are available when needed. In 2026, the Township is planning to significantly increase the number of stormwater inlets purchased and installed—more than three times as many as were installed in 2025. This purchase will be made from the Stormwater Fund. 192 -- 192 of 206 -- Hillside Avenue – $310,000 Hillside Avenue, a small residential street adjacent to the Neshaminy Creek between Penndel Borough and Hulmeville Borough, routinely experiences flooding during major rain events due to the lack of adequate stormwater management infrastructure. Improvements are planned in this neighborhood in 2026. The project has been partially design and is planned for construction. The estimated project cost includes engineering. This project will be expended from the Stormwater Fund. Engineer Future Projects - $198,000 Many stormwater projects require extensive planning and permitting, ultimately spanning more than one budget year. Several projects are planned for construction in 2027 and 2028, including streambank restoration projects in Mill Creek and Queen Anne Creek, as well as stormwater management projects on Richardson Avenue and Playwicki Street. This allocation ensures there is adequate funding available to prepare these projects for future implementation. This will be expended from the Stormwater Fund. 193 -- 193 of 206 -- Transportation & Signals Middletown Township undertakes several projects throughout the year geared toward improving the transportation infrastructure of the community. These projects may include road construction at intersections, installing signals, adding sidewalks or crosswalks, and other projects aimed at allowing better movement of vehicles and pedestrians. Additionally, the Township is responsible for ensuring that traffic signals are compliant with the permits from the Pennsylvania Department of Transportation (PennDOT) and that intersections are safe for commuters. While many traffic signal maintenance projects are ongoing operating costs, some larger projects are included in the Capital Plan and are funded through the Capital Fund and grants. Transportation 2026 2027 2028 2029 2030 Five-Year Total ADA Curb Ramp Program $ 750,000 $ 750,000 $ 750,000 $ 750,000 $ 750,000 $ 3,750,000 *Langhorne-Yardley/Maple Pt. Xing $ 200,000 $ 200,000 *School Zone Improvements $ 500,000 $ 500,000 *Maple Ave/N. Flowers Mill Signals $ 175,000 $ 175,000 *Pedestrian Signal Equipment Upgrades $ 229,000 $ 229,000 Traffic Signal Mast Arm Replacemnt $ 150,000 $ 100,000 $ 125,000 $ 150,000 $ 150,000 $ 675,000 S. Flowers Mill Bridge Clearance $ 200,000 $ 200,000 Bike Lane and Sharrow Additions $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 2,000,000 Illuminated Traffic Signal Signs $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 80,000 Sidewalk Construction $ 200,000 $ 600,000 $1,500,000 $ 2,300,000 Turn Lane Addition $ 50,000 $ 50,000 Adaptive Signal System Expansion $ 300,000 $300,000 $ 500,000 $1,100,000 TOTAL $2,204,000 $1,620,000 $2,295,000 $3,220,000 $1,920,000 $11,259,000 ADA Curb Ramp Program - $750,000 The Americans with Disabilities Act (ADA) requires public facilities to have ramps to allow access to all residents. This project funds the addition or replacement of ramps throughout the Township. Repairing and replacing ramps protects both the Township and residents. In 2026, the Township is planning to significantly increase the number of ramps being installed. Currently, more than 570 ramps are missing or non-compliant. At the current rate, it would take more than 30 years to complete this backlog. With this increased budget, nearly 80 ramps can be completed. Improvements will be focused in the Cobalt Ridge and Ivystream neighborhoods. 194 -- 194 of 206 -- Ramps that are in good condition and meeting the most current standards of the ADA will both require less maintenance and reduce potential future liability costs. The project will be paid for by the Capital Fund. Projected costs for this project include engineering costs. Traffic Signal Mast Arm Replacement - $150,000 A mast arm is the metal pole jettisoning out over a roadway, often used at intersections for traffic signals. The Pennsylvania Department of Transportation (PennDOT) recently required all communities in the state to inspect mast arms for repairs or replacement due to several failures in other parts of the state. The Township completed mast arm inspections and identified some that are approaching the end of their useful life. The Township plans to replace mast arms gradually in the coming years to reduce a large one-time expense, and to mitigate any potential accidents from occurring. This project will impact operating costs by reducing traffic signal maintenance over time. This project will be funded by the Capital Fund. Projected costs for this project include engineering costs. S. Flowers Mill Bridge Clearance - $200,000 The low-clearance railroad bridge on South Flowers Mill Road is one of the most problematic roadways in the Township. The less-than 10-foot clearance bridge is often the cause of many trucks getting stuck or almost stuck, resulting in significant delays and a major burden on first responders as they work to restore the road to service. Despite abundant signage in the area, trucks often get stuck on average once per month. Design efforts are currently underway for implementation in 2026. PennDOT permitting for signal systems may be required. This project will be funded by the Capital Fund and will be funded by an allocation from the state. 195 -- 195 of 206 -- This page intentionally left blank. 196 -- 196 of 206 -- Glossary of Terms Accrual- A charge for work that has been done but not yet invoiced, for which provision is made at the end of a financial period. Advance Refunding- The process by which bonds are issued to refinance an outstanding bond issue before the date the issue is due. Proceeds from an advance refunding are deposited in an escrow account with a fiduciary and invested to redeem the underlying bonds at their maturity or call date, to pay interest on the refunded bonds or to pay interest on the advance refunding bonds. Americans with Disabilities Act (ADA)- A 1990 federal civil rights law that prohibits discrimination against disabilities and requires facilities to be updated to be more accessible to disabled persons. Amusement Tax- Enabled by Act 511, a tax on places of amusement or entertainment, such as theme parks and golf courses. Apparatus- Usually in reference to fire services, apparatus is a general term for any large vehicle used in emergency response, such as a fire engine, tower, pumper, or rescue truck. Appropriation- A legal authorization granted by the Township Board of Supervisors to make expenditures and to incur obligations for the purposes specified in the annual budget appropriation ordinance. An appropriation is limited in amount and to the time in which it may be spent. Assessed Valuation- The valuation set upon real estate by the county tax assessor as the basis for levying real estate taxes. Assets- Property owned by the Township which has a monetary value. Audit- A financial review performed by an external accounting firm to assure funds are being dispensed and accounted for in accordance with state laws and best management practices. Audits can be performed comprehensively across all Township funds for a given time period, or for specific subset, such as a grant or state appropriation. Authority- A governmental entity created by one or more political subdivisions to administer a specific service or set of services to a fixed geographic area, empowered to raise funds to finance the delivery of this service. Governmental authorities commonly handle water, waste water, and stormwater management, among other services. Automated Clearing House (ACH) - A system used to facility electronic payments between banking institutions. 197 -- 197 of 206 -- Balanced Budget- Revenues and expenditures are balanced for a given fiscal year, particularly in the General Fund. Benefits- A term used to describe forms of compensation given to employees in addition to direct pay. This typically includes a pension, earned leave time, and medical and dental insurance, among other things. Bond- A written promise to pay a specified sum of money at a specified future date along with periodic interest paid at a specified rate. Bonds are typically sold to finance long-term debt. Bond Rating- The credit worthiness of the Township as evaluated by independent agencies relating to the repayment of debt. The Township currently has a AA+ rating by S&P. The term “credit rating” is synonymous. Bucks County- Bucks County is the county Middletown Township is in. The county is in southeastern Pennsylvania, north of Philadelphia and west of Trenton, NJ, along the New Jersey border. Bucks County Water and Sewer Authority (BCWSA)- The primary water and waste water company servicing Township residents. The Township ran its own water and waste water services before selling it to BCWSA in 2002. Budget- A plan of financial operation setting forth an estimate of proposed revenue and expenditures for a given period of time, typically one year. Budget Message- A general discussion of the proposed budget presented in writing as a part of the budget document. The budget message explains major budget issues, describes the financial experience during the past period and presents recommendations regarding the financial policy during the coming period. Capital- A general term for most physical assets that are usable for more than a single fiscal year. Capital can include buildings, furniture, equipment, vehicles, and more. Capital Improvement Plan (CIP)- The plan for capital expenditures to be incurred by the Township each year over six future years setting forth each capital project, the amount to be expended in each year, and the method of financing those expenditures. Capital Projects- Projects which purchase, construct, or reconstruct capital assets, and are typically nonrecurring and in excess of $5,000. Cash Balance- Total amount of money in a financial account, calculated by adding all deposits to the initial deposit and deducting all disbursements or payments made. Net cash balance can be positive, if money is available; or negative if the account has been overdrawn. 198 -- 198 of 206 -- Census- Also referred to as a decennial census, it is an official survey of the population of a country that is carried out to determine how many people live there and to obtain details such as persons’ ages and occupations. Census-Designated Place- A populated area drawn out by the United State Census Bureau that provides similar statistical information to an incorporated place. Chart of Accounts- A chart of accounts is a financial organizational tool that provides a complete listing of every account in an accounting system. An account is a unique record for each type of asset, liability, equity, revenue and expense. Collective Bargaining Agreement- An agreement in writing between an employer and a labor union setting forth the terms and conditions of employment or containing provisions in regard to rates of pay, hours of work, or other working conditions of employees. Common Level Ratio (CLR)- The ratio of assessed value of taxable real property to market value for each county in the Commonwealth of Pennsylvania for the prior calendar year. The establishment of the CLR is the function of the Pennsylvania State Tax Equalization Board (STEB). Community Development Block Grant (CDBG)- A federal program established to provide municipalities with grant funds needed to address local community development needs in the areas of housing, community facilities, economic development, and public services. Comprehensive Annual Financial Report- The official annual financial report of the Township. It includes management discussion and analysis of the financial activities of the year, financial statements, supporting schedules and required supplementary information and statistics on the Township. Consumer Price Index (CPI)- The Consumer Price Index is a statistical figure determined by the US Bureau of Labor Statistics that quantifies inflation and deflation. When comparing several years of revenues and expenditures, adjusting dollar amounts to account for inflation provides a more accurate conclusion of financial growth or attrition. Crossing Guard Association- The Middletown Township Crossing Guard Association is a labor union representing collective interests of all Township crossing guards. Culvert- A pipe or box-shaped tunnel that carries stormwater or a waterway under a road. Curb Ramp- Also referred to as an ADA curb ramp, this is a short ramp cutting through a curb designed to allow pedestrians and wheelchair users to easily transition from a sidewalk to the street. Debt Limit- The State-set maximum amount of legally permitted outstanding net debt. 199 -- 199 of 206 -- Debt Service- Payment of interest and principal on an obligation resulting from the issuance of bonds. Debt Service Fund- A fund used to account for the accumulation of resources for the payment of interest and principal on the Township’s general obligation bonds. Deficit- The difference between expenditures and revenues, particularly when expenditures are higher than revenues. Delaware Valley Regional Planning Commission (DVRPC)- Regional planning organization that facilities inter-municipal and intergovernmental cooperation on topics such as land use, environmental impact, and public transportation. Delaware Valley Trusts (DVT)- - A regional risk sharing pool providing property and liability, workers compensation, and health insurance coverage to its participating members which consists of municipalities in Southeastern Pennsylvania. The Trust was formed under the authority granted by the Pennsylvania Intergovernmental Cooperation Act and the Pennsylvania Political Subdivision Tort Claims Act. Department- A major administrative segment responsible for the provision of services within a functional area. Department of Community & Economic Development (DCED)- The department charged with the development and enhancement of communities within the Commonwealth of Pennsylvania. DCED provides a variety of assistance programs including housing, water and sewer infrastructure, public facilities, and community and economic development. Depreciation- Expiration of the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy, or obsolescence. In accounting, it refers to the method by which the cost of a large item (usually capital) is broken up and expended over the useful life of that item. Earned Income Tax (EIT)- A tax levied on Township residents and employees of businesses in the Township. All Township residents pay the tax. Employees of businesses in the Township pay the EIT to their municipality of residence, unless said municipality does not collect an EIT, in which case Middletown Township would collect the tax. Encumbrance- Commitment of funds for valid obligations for goods and services to be obtained. Enterprise Fund- A fund that provides a specific good or service to the public for a fee that makes the entity self-supporting such as, for example, trash collection. 200 -- 200 of 206 -- Expenditures- Where accounts are kept on the modified accrual basis of accounting, the cost of goods received or services rendered whether or not cash payments have been made. Federal Insurance Contributions Act (FICA)- The federal law enabling the collection of payroll taxes for contributions to Social Security and Medicare. Fee- An amount of money charged in exchange for a specific service rendered. The Solid Waste & Recycling Fee is a local example. Fire Company- A not-for-profit entity contracted with one or more units of government to provide fire protection services to a jurisdiction, oftentimes in exchange for taxpayer resources. Fiscal Year- A year determining the beginning, ending, and duration of a budget or taxation year. In Pennsylvania, the fiscal year matches the calendar year (January-December). In the federal government and other states, fiscal years often begin in April, July, or October. Fixed Assets- Long-lived tangible assets obtained or controlled as a result of past transactions, events, or circumstances. Fixed assets include: buildings; building improvements; machinery and equipment; infrastructure; land and land improvements. In the private sector, these assets are referred to most often as property, plant, and equipment. Fringe Benefits- Expenditures for benefits on behalf of employees. These benefits include health and dental insurance, life insurance, disability insurance, retirement, FICA and Medicare, prescriptions, vision care, unemployment compensation insurance, and workers compensation insurance. Full-Time Equivalents (FTE)- The number of hours per year scheduled and budgeted for part-time employees divided by the number of hours of the full-time 40 hour per week employee. Fund- A fiscal and accounting tool with a self-balancing set of accounts to record revenue and expenditures. Fund Balance- The excess of a fund’s assets over its liabilities. A negative fund balance is sometimes called a deficit. A positive fund balance is sometimes called a surplus. A portion of the Township’s General Fund estimated actual ending fund balance may be re-appropriated as a source of funds to balance the following year’s budget. Fund Balance, Assigned- includes amounts intended to be used by the Township for specific purposes but do not meet the criteria to be classified as committed. The governing body, the Board of Supervisors, has by resolution authorized the finance director to assign fund balance. The Board may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action 201 -- 201 of 206 -- does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. Fund Balance, Committed- includes amounts that can only be used for the specific purposes determined by a formal action of the Township’s highest level of decision-making authority, the Board of Supervisors. Commitments may be changed or lifted only by the Township taking the same formal action that imposed the constraint originally (for example: resolution). Fund Balance, Non-Spendable- includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example: inventories, prepaid amounts, and long-term notes receivable. Fund Balance, Restricted- includes amounts that are restricted for specific purposes stipulated by external resources providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers. Fund Balance, Unassigned- this residual classification is used for all negative fund balances in Special Revenue, Capital Projects, and Debt Service funds; or any residual amounts in the General Fund. In circumstances when an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications, fund balance is depleted in the order of restricted, committed, assigned, and unassigned. In all cases, encumbrance amounts have been assigned for specific purposes for which resources already have been allocated. Government Accounting Standards Board (GASB)- The authoritative accounting and financial reporting standard-setting body for state and local governments. General Fund- An accounting entity used to account for all revenue and expenditures applicable to general operations of the departments of the Township and to record all financial transactions not account for in another fund. General Obligation Bonds- When the Township pledges its full faith and credit to the repayment of the bonds issued. Sometimes the term may refer to bonds which are to be repaid from taxes and other general revenues. Generally Accepted Accounting Principles (GAAP)- Uniform minimum standards and guidelines for financial accounting and reporting which govern the form and content of the financial statements of an entity. GAAP encompasses the conventions, rules, and procedures necessary to define accepted accounting practice and procedures at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. GAAP provides a standard by which to measure financial presentations. The primary authoritative body on the 202 -- 202 of 206 -- application of GAAP to state and local governments is the Governmental Accounting Standards Board (GASB). Geographic Information System (GIS)- A collection of computer hardware, software, and geographic data for capturing, managing, analyzing, and displaying geographically referenced information. Goal- A clearly described target or accomplishment which can be achieved within a given time frame. Government Finance Officers Association (GFOA)- A association of government finance professionals which establishes industry best practices and award programs for financial publications of governmental entities. Governmental Fund- Any fund used for core governmental activities, often supported by revenues from one or more taxes levied by the jurisdiction. Grant- A contribution of assets (usually cash) by one governmental unit or other organization to another. Typically, these contributions are made to municipalities by the state and federal government. Grants are usually made for specified purposes. Independent Association of the Department of Public Works- Labor union representing collective interests of Middletown Township Department of Public Works staff. Infrastructure- Long-lived public assets that are vital for the functioning of the community, such as roads, bridges, water systems, sewer systems, stormwater systems, and other utilities. Inlet- A stormwater management structure that collects surface stormwater runoff from roads and other impervious surface areas and directs it into an underground storm drain system. Intern- A student hired on a temporary basis that assists staff in various Township departments with general duties. Key Performance Indicator (KPI)- A quantifiable measure of performance over time for a specific objective. Local Services Tax (LST)- A tax on individuals for the privilege of engaging in an occupation in the Township. Maintenance- Cost of upkeep of property or equipment. Mill- The real estate tax rate is based on the assessed valuation of property. A tax rate of one mill produces one dollar of taxes on each $1,000 of assessed property valuation. One mill is equivalent to 0.1%. 203 -- 203 of 206 -- Minimum Municipal Obligation (MMO)- the smallest amount a municipality must contribute to any pension plan established for its employees regulated by the Commonwealth of Pennsylvania. Modified Accrual Basis- The basis of accounting under which expenditures are recorded at the time liabilities are incurred and revenue is recorded when received in cash or when measurable and available. This is the most common basis of accounting used in government. Municipal Separate Storm Sewer System (MS4)- A program administered by the Pennsylvania Department of Environmental Protection (DEP) aimed at regulating water runoff and preventing contamination in local communities. Municipality- Also called a political subdivision, it is a general term for a local government. This can include townships, cities, and boroughs of all classes. Net Investment in Capital Assets- This category groups all capital assets, including infrastructure, into one component of Net Position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance of this category. Non-Operating- Refers to a fund used for a single or very specific use, instead of as part of the day- to-day operating budget. Ordinance- A law created by a local government to regulate a specific area of the local government’s jurisdiction. Referred to collectively as the Code of Ordinances, they prescribe specific limitations on a range of topics, including zoning, land development, traffic enforcement, property maintenance, and more. Pennsylvania Department of Transportation (PennDOT)- The department of the Pennsylvania state government that oversees transportation. All highways of the Township are maintained by PennDOT. Part-Time Employee- An employee of the Township who works on average less than 29 hours per week. In some circumstances, part-time employees are afforded limited benefits such as leave time and longevity pay. Pension- A regular payment made during a person’s retirement from an investment fund to which that person or their employer has contributed during their working life. Performance Measure- A quantifiable indicator of progress achievement and efficiency. Police- Law enforcement officers sworn to enforce state and federal laws and municipal ordinances. Police Benevolent Association- Labor union representing collective interests of uniformed police officers. 204 -- 204 of 206 -- Procurement- The process of finding, purchasing, and acquiring goods and services. The Commonwealth of Pennsylvania establishes laws to control which purchases and services must undergo a public bidding process, a request for proposals process, or a quotation process. Proprietary Fund- A fund established to account for operations that are financed and operated in a manner similar to a private business enterprise. The intent is that the costs of providing goods and services to the public on a continuing basis will be financed primarily through user fees. Real Estate- Real property including the land and buildings or improvements on it. Redevelopment Authority of the County of Bucks (RDA)- assists municipalities, businesses, private developers, and homeowners located in the County of Bucks in the rehabilitation of blighted and deteriorated properties and reuse of abandoned or underutilized industrial, commercial and residential sites. The RDA is the largest grant funder of the Township. Resolution- Equivocal to an Act of Congress in the federal government, a local government resolution is a piece of legislation reflecting a decision made by the legislative body. Resolutions can cover a range of topics from grant applications to taxy levies. Restricted Net Position- This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Sanitary Sewer- The network of underground pipes used to carry sewage waste from residences and businesses to treatment facilities. Second Class Township- Townships of the Second Class are governed by three to five elected supervisors for six-year terms. Township Supervisors typically appoint a professional manager to administer daily operations. The Commonwealth of Pennsylvania has general guidelines to determine the scope and reach of township. Services- Professional or technical expertise purchased from external sources, or the output provided to taxpayers by Township departments. Sinking Fund- a fund containing money set aside or saved to pay off a debt, bond, or financial obligation. Solicitor- The Township Solicitor is the lawyer and chief legal counsel of the Township. The Solicitor is contracted annually by the Board of Supervisors. The Solicitor is present at all formal open session and closed session meetings of the Board of Supervisors, as well as other meetings as required by staff. 205 -- 205 of 206 -- Southeastern Pennsylvania Transportation Authority (SEPTA)- A regional transportation agency that serves the Philadelphia metropolitan area. SEPTA operates buses, trolleys, above-ground trains, below-ground subway trains, and a rapid transit train. Special Revenue Fund- A fund established to collect money to be used for a specific purpose. Storm Sewer- The network of underground pipes where stormwater drains into as is diverted to designated basins and waterways. Stormwater Impact Fee- A fee assessed by a municipal government or municipal authority to maintain and finance improvements to stormwater management infrastructure. Structural Deficit- A persistent fiscal imbalance where a government’s recurring operating expenditures consistently exceed its recurring revenues, even when the economy is performing well. Taxes- Compulsory charges levied by the Township for the purpose of financing services performed for the common benefit of citizens. Teamsters- Labor union representing collective interests of non-uniformed unionized Township employees. Uniform Construction Code (UCC) – A Pennsylvania-wide building code that regulates construction, repair, renovation, and maintenance of buildings and structures to ensure public safety and welfare. Unrestricted Net Position- This category represents net position of the entity, not restricted for any project or other purpose. Volunteer- A person who performs a job or service without receiving direct pay. 206 -- 206 of 206 --
More budgets from Nanticoke
On November 4, 2024, North Whitehall Township adopted its 2025 budget with an opening General Fund balance of $8,250,000 and anticipated revenues of $6,425,000 against expenditures of $6,133,000, resulting in a $291,000 surplus. The Township made significant decisions to increase its property tax levy from 0.5 mills to 0.65 mills (a 0.15 mill increase) and introduced its first-ever Fire Tax of 0.45 mills, bringing the total 2025 property tax levy to 1.2 mills. Additionally, $275,000 of the budget surplus was allocated to the Equipment fund for fleet needs, and $900,000 was drawn from unrestricted cash reserves for capital improvements, while maintaining an estimated ending fund balance of $7,361,000.
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