The proposed 2026 budget uses a “significant” amount of general fund reserves to make “key investments in people, projects and programs,” according to a staff report.
“This is a significant use of our general fund reserve, but one that will be an investment in our people and the city’s opportunity for future growth,” Councilman Paul Lolli said. “But now, we have our work cut out for us.”
Between 2025 and 2026, the biggest departmental percentage increase is for the city council, which will see a 27.31% increase in spending from $206,849 to $263,332 due to the addition of a part-time deputy clerk of council position.
The biggest expenditures are for police and fire services. Police spending will grow by 16.19% to $19,184,060; fire spending will grow by 17.2% to $15,522,950, according to the staff report.
Fire spending is due to the addition of four firefighter EMT positions and additional funding for capital needs, according to the report.
Police spending is due contract negotiations from 2025, which included an assumed 5% cost of living increase. Actual negotiations resulted in an 8.8% cost of living increase for uniform patrol and sergeant/lieutenants FOP (Fraternal Order of Police) unions.
The city manager’s budget decreased by 22.49% from $1,007,347 to $780,822 due to the elimination of one of two assistant city manager positions.
In the community and economic development department, spending will increase 8.53% from $3,525,667 to $3,826,450. This change is due to buying property and the addition of three part-time event hosts at The Event Center of Middletown.
The grant and project coordinator and intern positions in the community and economic development department have also been eliminated.
Council did not vote to approve the budget during the Nov. 18 council meeting.
Mayor Elizabeth Slamka said she would have liked to discuss more investment into parks and events and “beautification” and maintenance in the city.
Lolli said the budget is the result of work that began four years ago “to stabilize our current workforce by being more competitive in wages and with other communities.”
Large increases in public safety spending are meant to “stop the bleeding,” according to Lolli.
“We were losing too many public safety personnel to surrounding communities that were paying anywhere from $12,000 to $15,000 more than we were,” Lolli said.
Lolli said he was in support of the budget proposal, especially the 4.5% cost of living increase, but added he would have liked one or two economic development job growth specialists.
“I think that those positions would actually pay for themselves,” Lolli said.
The cost of living increase totals about $190,000, according to City Manager Ashley Combs.
Budgeted income tax revenue in fiscal year 2026 is projected to increase 3% from fiscal year 2025, totaling $1,038,431, according to Combs.
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