On August 21, 2007, the Middletown City Council

unanimously voted to place a .25% income tax

increase on the Novemberballot. This tax would be

designated for public.safety with a five year sunset

clause. ...~

Passage of this .25% tax would not increase fire or

police services but it would allow the City to avoid

further cuts. The City is currently projecting a

$2,382,845 General Fund deficit in 2008. Public Safety

services make up 69% of that deficit. The proposed

tax would offset that deficit as well as provide for

additional inflation-based expenses for the future.

The short term non-publicsafety portionof the deficit

($742,836)would be covered by administrative support

fees from local and federal programs, the elimination

of vacant positions,as well as continued efforts to

improve the cost-effectiveness of city operations

This smaller tax increase (than the .75% which was

proposed last year) reflects Council's recognition that

the community has not yet recovered from the effects

of the AK lockout. It is likely that an additional .25%

will be sought in the future for non- public safety needs

and/or ~reet improvements. The City has already

undergone significant reductions in manpower and

other costs associated withthe General Fund.

Increasing the City's income tax by .25% would

increase the expense to a household earning $40,000

per year by approximately$1.92 per week, Pensions

and interest earnings are not subject to the city income

tax.

Additional information is available on the city's website