THIS MEETING CAN BE HEARD IN ITS ENTIRETY ON THE TOWN OF MIDDLETOWN WEBSITE WWW.MIDDLETOWNRI.COM OR THE DVD IS AVAILABLE AT THE MIDDLETOWN LIBRARY.

At a Special Meeting of the Town Council of the Town of Middletown, RI at the Middletown Town Hall, 350 East Main Road, Middletown, RI in person on Wednesday, May 27, 2026 at 6:01 P.M.

Council President Paul M. Rodrigues, Presiding

Vice President Thomas P. Welch, III

Councilor Peter D. Connerton, Sr.

Councilor Christopher M. Logan

Councilor Charles R. Roberts

Councilor Dennis B. Turano

Councilor Barbara A. VonVillas, Members Present

POSTED – May 20, 2026

SPECIAL MEETING – May 27, 2026

The following items of business, having been filed with the Town Clerk under the Rules of the Council, will come before the Council at a special meeting to be held on Wednesday, May 27, 2026 at 6:00 P.M. at the Middletown Town Hall, 350 East Main Road, Middletown, Rhode Island. Said meeting will be conducted in person, by telephone conference call/ webinar, members of the public may access and listen to the meeting in real-time by calling 1-877-853-5257 (Toll Free) or 1-888-475-4499 (Toll Free) and entering Meeting ID: 840 4765 9671 or on the web at https://us02web.zoom.us/j/84047659671; however, virtual access is being provided only as a convenience and is not an official "location" where access to the meeting is guaranteed. Being physically present at the meeting is the only way to guarantee complete access to the meeting, as the meeting will not be paused or rescheduled if the virtual access fails.

Wendy J.W. Marshall, MMC

Town Clerk

Town of Middletown

Town Hall – 350 East Main Road

Middletown, Rhode Island 02842

Dear Ms. Marshall:

Pursuant to the provisions of Article II, Section 203 of the Town Charter and in accordance with Sections 42-46-2., 42-46-4., 42-46-5., and 42-46-6., RIGL, I hereby call a Special Meeting of the Town Council to formally consider, discuss and act upon the following items of business. All items on this agenda, may be considered, discussed and voted upon.

PLEDGE OF ALLEGIANCE TO THE FLAG

1. Public Hearing (Advertised)
Public Hearing Remains Open.
An Ordinance of the Town of Middletown (Second Reading)
An Ordinance in amendment to the ordinances of the Town of Middletown General Fund, Parks and Recreation Fund, Sewer Fund, Refuse and Recycling Fund, Appropriating revenues for the Fiscal Year July 1, 2026 to June 30, 2027.

2. Resolution of the Council, re: Tax Levy.

4. An Ordinance of the Town of Middletown (Second Reading)
An Ordinance in Amendment to the Town Code of the Town of Middletown, Title III, Chapter 36, Entitled “Fee Schedule”, Section (D) Parks and Recreation (1) Beach Parking Fees.

Said meeting will be held at the Middletown Town Hall, 350 East Main Road, Middletown, Rhode Island 02842 on Wednesday, May 27, 2026 at 6:00 P.M.

____________________________________

Paul M. Rodrigues, President

Middletown Town Council

cc : Town Council Public Library Finance Director

Town Administrator Town Solicitor School Committee

This meeting location is accessible to the handicapped. Individuals requiring interpreter services for the hearing-impaired should notify the Town Clerk’s Office at 847-0009 not less than 48 hours before this meeting.

Posted on May 20, 2026 at Middletown Town Hall, Middletown Public Library, Middletown Web Site and Secretary of State Web Site.

Vice President Welch announced that the Public Hearing remains open.

Finance Director Marc Tanguay reviewed the FY2027 Budget Second Public Hearing Power Point, slides #1 through slide #10, which is on file in the Office of the Town Clerk.

Town Administrator Shawn Brown reviewed the FY2027 Budget Second Public Hearing Power Point, slides #11 through #12, which is on file in the Office of the Town Clerk.

Town Administrator Shawn Brown reviewed the following:

Councilors, I want to take a few minutes to explain the budget amendments related to the Purgatory sidewalk project and the SS4A grant-funded projects.

These items are not new initiatives. They have been on the Town’s agenda for some time, and both are tied to prior planning work, grant activity, and Council discussions about pedestrian safety, connectivity, and capital investment. Under our normal process, we likely would have brought forward the necessary budget adjustments when the related contracts were ready for award. However, given the discussion at the first budget hearing about the possible use of capital funds and reserve funding to support operations, I believe it is prudent to formalize these obligations now as part of the budget adoption process.

The intent is straightforward. We want the budget and capital plan to accurately reflect the decisions the Council has already made and the priorities it has already set. It is also an important internal control. If funding is left uncommitted in the budget, even though we know it is needed for projects already in motion, there is a risk that the same dollars could be viewed as available for another purpose. Formalizing these commitments now helps prevent double spending and helps avoid funding recurring operations by deferring capital projects that the Council has already identified as priorities.

For the Purgatory sidewalk project, the Town has $2.43 million in federal and state funding. The current engineer’s estimate is approximately $3.05 million. That leaves a gap of about $622,000 between the grant funding and the engineer’s estimate. The Administration is recommending that this difference be funded from capital preservation dollars set aside in the Parks and Recreation Fund, because this project improves pedestrian connectivity between nearby neighborhoods and the Sachuest area. We are also recommending that the Council budget a 5 percent construction contingency, which is approximately $153,000. Altogether, the recommended local funding adjustment is approximately $774,000.

The Purgatory project remains on track to move to bid. Staff continues to work through final design and implementation issues, including sidewalk alignment, speed feedback and/or school zone sign placement, and outstanding temporary easement issues. The Town also has a separate project to create a pedestrian path along Sachuest Point Road from the Rock parking lot to the main lot at Second Beach, so these improvements should be viewed together as part of a broader effort to improve pedestrian access and safety in that area.

The second item is the SS4A grant. The draft project information we received remains a work in progress as the grant agreement is developed, and the project list, timing, cash flow, and final local match allocation are still being clarified. However, based on the current information, there will be a local match obligation, and the Administration believes it should be reflected in the budget and capital plan now rather than left uncommitted until later. This preserves transparency and ensures the budget reflects the Town’s anticipated obligations.

The third related item is the USDOT BUILD grant application for Third Beach Road and Paradise Avenue. We are not recommending a budget adjustment for that project at this time. The Council authorized the application and a potential local match of up to $1.375 million if the grant is awarded. However, staff previously advised that the likelihood of award is low because the program is expected to be heavily oversubscribed, even though the Town prepared a strong application. Award announcements are expected later, and if the Town receives an award or has a clearer indication that an award is likely, the Administration will return to the Council with a recommended funding plan at that time.

In short, the purpose of these amendments is not to introduce new policy direction tonight. The purpose is to make sure the budget is accurate, that known and anticipated capital commitments are properly recorded, and that the Council has a clear understanding of what funds remain available before making decisions about using capital or reserve funds for other purposes.

Mr. Brown read the following into the record:

Council members, the purpose of this slide is to clarify the fiscal and policy issue involved in using money from the Capital Improvement Special Revenue Fund to support operations or reduce the tax levy.

The first point is that this should be understood as a policy decision, not as a budget adjustment. The Capital Improvement Special Revenue Fund exists to support capital projects. These are not operating dollars. They are funds set aside for capital needs such as facilities, infrastructure, equipment, and other long-term investments.

The question that has been raised is whether there are projects in the Capital Improvement Plan that have not started, and whether those dollars can be treated as available to offset operating costs. A list of projects that have not started may be useful for planning purposes, but it is not the proper way to determine what money is actually available. The Capital Improvement Plan is a planning document. It shows projected projects, anticipated timing, and proposed funding sources, but it is not the accounting record.

The amount actually available in the Capital Improvement Special Revenue Fund needs to come from the Town’s accounting records. Those records reflect actual financial activity: appropriations, transfers, expenditures, purchase orders, encumbrances, contracts, change orders, and remaining balances. That distinction matters because a project may appear in the CIP as not started, but the funding may not have been transferred, may have been committed in some other way, or may have changed through the budget or procurement process. Conversely, balances may remain from completed or partially completed projects, but those balances can only be properly identified through the accounting records.

The Finance Director has reviewed the activity and balances in the Capital Improvement Special Revenue Fund. Based on that review, the beginning balance going into FY27 is $659,700. That figure was reported on January 5, 2026, and confirmed again with finance staff. That accounting balance is the appropriate measure of what is available because it reflects the Town’s actual transactions and internal control structure.

The second point is that the CIP beginning balance is not unrestricted General Fund surplus. The Town has a separate Fund Balance Policy for unrestricted, non-committed General Fund balance. That policy provides flexibility for the Town Council to use excess General Fund balance for capital, operating, or debt service purposes, within the parameters of the policy. But that is different from CIP fund balance. CIP funds are governed by the Town’s capital improvement framework and are intended for capital purposes.

The Town’s capital improvement ordinance also supports that distinction. It defines what qualifies as a capital improvement project and limits the use of CIP funds to qualified capital projects, related financing or debt service, and certain emergency purposes approved by Council resolution. Unexpended CIP funds return to the CIP fund balance for redesignation by the Town Council under the capital framework. They do not automatically become operating surplus.

The third point is the fiscal impact. Using CIPSRF funds for operations would have two consequences. First, it would reduce the amount available for capital needs. That means projects may be deferred, reduced in scope, or funded later through future appropriations, reserves, or borrowing. The need does not go away; it is simply moved into the future. Second, it creates a structural deficit concern. The CIP beginning balance is a nonrecurring source of money. Operations are recurring. If one-time capital money is used to support recurring operating costs or reduce the tax levy, the budget may be balanced for one year, but the same operating need returns the following year unless recurring revenues are increased or recurring expenses are reduced.

So the bottom line is this: using the Capital Improvement Special Revenue Fund to support operations would provide short-term budget relief, but it would do so by deferring capital investment and using nonrecurring money for recurring costs. That is a policy choice available for Council discussion, but it should be understood clearly as a shift from capital funding to operating support, not as the identification of excess operating funds.

Finance Director Marc Tanguay reviewed the FY2027 Budget Second Public Hearing Power Point, slide #13, the proposed motions, entered here:

Discussion centered around the proposed motions and adjustments to the budget.

Town Administrator Shawn Brown reviewed the Capital Improvement Program and how the program functions.

Terri Flynn, Middletown, addressed the Council inquiring if the proposed budget scenarios of 1%, 2%, and 3% budget increases were reviewed and if reductions in the budget were identified. Mrs. Flynn noted the obligation of the School Bond and Library will affect the budget. Terri Flynn stated the residents should have voted on the library bond.

Discussion centered around there is no tax increase for the school bond, the cost for the school bond is already built into the budget, the library bond will be paid for with the use of the PPV funds which will be available due to the Police Department bond being paid off, and the Town Administrator reviewed the changes to the Capital Improvement Program.

Chris Rowe, Middletown, addressed the Council, inquiring if there were any reductions proposed for a 3%, 2%,1% budget proposals.

John Garagliano, Middletown, addressed the Council, noting concern with the expense of the budget for the Town Solicitor’s Department. Mr. Garagliano explained he filed an access to public records request for a breakdown of legal fees and was told the cost to obtain the records was $360, John Gargliano requests the fee to be waived. Mr. Garagliano noted the Town’s budget is 25% higher than the Town of Portsmouth.

Terri Flynn, Middletown, addressed the Council, asking about funding for the recycling carts and the increase in boards and committees’ expenses.

Discussion centered around the fund balance in the recycling fund is used for cart replacement, the increase in the boards and committees’ line is due to the hiring election staff for the upcoming elections, the affordable housing consultant, and Portsmouth’s tax levy vs the Town of Middletown.

John Garagliano, Middletown, explained he was referring to the overall budget numbers when comparing Middletown to Portsmouth, not the tax levy.

Mike Flynn, Middletown, noted concern with the overall total debt of the Town, explaining the State is not obligated for the Town’s debt. Mr. Flynn stated the reimbursement from the State for the school bond is not guaranteed.

Theresa Spengler, Middletown, addressed the Council inquiring about the total amount of hotel tax received from the state. Ms. Spengler noted concern that continued development in Town causes strain on infrastructure and Town services. Theresa Spengler explained that the increase in minimum wage has impacted the Town budget and the need to increase wages to retain good employees.

Discussion centered around the Town receives approximately 2.5% hotel tax from the state, Councilor Roberts explained that he reviewed the budget to have a 2% increase and made recommendations to reduce the budget, Councilor Roberts reductions included eliminating the Deputy Town Administrator position, equipment in the Public Works budget, and staffing at the Library until the new building is complete.

Terri Flynn, Middletown, thanked Councilor Roberts for reviewing the budget, and suggested taking $25 from each line item in the budget would help the taxpayers.

Alicia Reyes, Middletown, addressed the Council noting that an additional increase in taxes is difficult for everyone including those on a fixed income. Ms. Reyes explained the town has a spending problem and the new school is too big with enrollment declining. Alicia Reyes noted the funds in the PPV could pay for other expenses.

Chris Rowe, Middletown, addressed the Council noting inflation and his monthly expenses have increased.

Kim Blass, Middletown, addressed the Council inquiring if there is a limit to the overall tax increase that can be implemented. Mrs. Blass explained that residents are being taxed out and requests the 3.2% tax increase be reduced.

Discussion centered around that State Law caps municipal tax increases at 4%, inflation is affecting the residents and the Town expenses, expenses in the CIP can create efficiencies and save money for the Town, services cost monies to the taxpayer, and Councilor Turano reviewed the monies needed for a 3%, 2% & 1% budget increase-

Scenario Levy Difference from Proposed Levy

0% increase $58,738,891 $2,077,308 below proposed

1% increase $59,339,183 $1,477,017 below proposed

2% increase $59,929,134 $887,066 below proposed

3% increase $60,571,697 $244,503 below proposed

Proposed levy $60,816,200 —

Wendy Riel, Middletown, addressed the Council suggesting the Town should look into investing in solar power to save monies for energy expenses.

Terri Flynn, Middletown, addressed the Council noting the residents deserve finding more reductions in the budget. Mrs. Flynn suggested taking a little from each line item.

Discussion centered around deferring maintenance will cost more in the future, the need to do more with less funding, the Town Councilors have all reviewed the budget, CIP program expenses and projects.

Audrey Macleod Pfeiffer, Middletown, addressed the Council suggesting that the installation of solar panels for the new school can assist with energy costs. Ms. Macleod Pfeiffer explained there may be incentive programs for solar installations.

Theresa Spengler, Middletown, addressed the Council noting the budget for a home vs. a business is very different. Ms. Spengler explained that she is supporting the budget.

John Garagliano, Middletown, addressed the Council inquiring if the increase in health coverage for employees is being entirely funded by the Town.

Discussion centered around that half of the Town’s energy is solar through net metering programs and the health coverage expense is a shared expense with the employees.

Christopher Rowe, Middletown, addressed the Council suggesting a reduction in staffing, a reduction in employee salaries and the CIP program would assist in decreasing the overall budget.

Discussion centered around a zero increase to the budget causes issues for the Town in future years, increases in health care are shared expenses with the Town and employees, inflation, the increase to the sewer fund due to the clarifier purchase by the City of Newport, and using restricted funds for the budget will cause a structural deficit.

Chris Rowe, Middletown, addressed the Council noting how much time and effort Council members give to the Town, stating he appreciates their time and effort.

Motion #1

Town Charter § 208 provides that the town council may change the budget proposed by the town administrator provided that the council also make provision(s) for balancing out the consolidated budget.

Whereas:

The celebration of Independence Day occurs on a Saturday this calendar year, but multiple Town departments are observing the holiday on Friday July 3rd.

Motion:

On motion of Vice President Welch, duly seconded, it was voted unanimously to on page 5, line 32, before Independence Day, insert “Day before Independence Day (July 3rd)”.

Motion #2

Whereas:

The Town of Middletown is budgeting to apply for the federal Staffing for Adequate Fire and Emergency Response (SAFER) Grant, and in accordance with the Town Council’s authority under Town Charter Section 702 regarding the organization of the Fire Department.

Motion:

On motion of Vice President Welch, duly seconded, it was voted unanimously that on page 4, lines 25 through 35, changing the number of employees to no more than 47 employees, to include one Fire Chief, four Battalion Chiefs, four Captains, eight Lieutenants, twenty-five line firefighting/rescue employees, four civilian dispatchers, and one civilian administrative assistant.

Motion #3

Whereas:

The School Department’s Superintendent has indicated the need to use fund balance to balance the remainder of the school department’s needs.

Motion:

On motion of Vice President Welch, duly seconded, it was voted unanimously that pending School Committee approval, on page 2, line 13, Education expenditure be increased by $52,500 and on page 2, line 37 School Use of Fund Balance be added with the amount of $52,500 with all subtotals be adjusted accordingly.

Motion #4

Whereas:

The Town has recently been notified that Middletown, Newport, and Portsmouth have been awarded a federal grant to promote safe streets for all roadway users. To meet the grant requirements in future years, the Town must reprioritize previously submitted capital improvement projects to accommodate the required local matching funds throughout the duration of the grant term.

Motion:

On motion of Vice President Welch, duly seconded, it was voted unanimously that on page 2, Information Technologies, line 6, be reduced by $66,000; Public Works, line 10, be reduced by $95,000; Library, line 11, be reduced by $44,000; Senior Center, page 1, line 41, be reduced by $50,000; Funds Transfer In, page 2, line 24, be reduced by $210,000; Proceeds from Capital Leases on page 2, line 26, be decreased by $45,000; and all subtotals be adjusted accordingly.

Motion #5

Whereas:

The Florence Gray Center is requesting funding from the Town of Middletown to support its civic program, which will help expand access to mental health, socialization, low-barrier services, and community support programs for residents.

Motion:

On motion of Vice President Welch, duly seconded, it was voted unanimously that on page 1, line 43, Community Outreach amount be increased by $50,000 and on page 2, line 18, Taxes Levied by Municipality be increased by $50,000, page 1. All subtotals will be adjusted accordingly.

Motion #6

Whereas:

The Town has been awarded federal and state funding to complete comprehensive improvements along Aquidneck Avenue from Valley Road to Purgatory Road. To complete the project in its entirety, the Town must allocate local funds for construction of the sidewalk along Purgatory Road. The proposed sidewalks along Purgatory Road will improve pedestrian access to Sachuest Beach, enhance public safety, strengthen connectivity between neighboring streets, and better serve residents, visitors, and all roadway users.

Motion:

On motion of Vice President Welch, duly seconded, it was voted unanimously that on page 1, line 46, Public Works Grants be increased by $2,430,000; Restricted Grants-in-Aid Federal Government on page 2, line 23, be increased by $2,430,000; Parks and Recreation Fund Capital Improvement Program expenses on page 5, line 18, be increased by $781,728; and Use of Fund Balance revenue on page 5, line 27, be increased by $781,728, and all subtotals are adjusted accordingly.

There being no other persons present or on zoom desiring to be heard, public hearing was declared closed.

On motion of Vice President Welch, duly seconded, it was voted to adopt said ordinance on its second reading, as amended; Councilor Roberts and Councilor Turano voted NO to said motion.

2. Resolution of the Council, re: Tax Levy.

On motion of Vice President Welch, duly seconded, it was voted to pass resolution; Councilor Roberts and Councilor Turano voted NO to said motion.

3. An Ordinance of the Town of Middletown (Second Reading)
An Ordinance in Amendment to the Town Code of the Town of Middletown, Title III, Chapter 36, Entitled “Fee Schedule”, Section (H) Refuse and Recycling Department, (2) User Fee.
On motion of Vice President Welch, duly seconded, it was voted unanimously to adopt said ordinance on its second reading.

On motion of Vice President Welch, duly seconded, it was voted to adopt said ordinance on its second reading, with an effective date of July 1, 2026; Councilor Roberts voted NO to said motion.

On motion of Vice President Welch, duly seconded, it was voted unanimously to adjourn said meeting at 9:06 P.M.

Wendy J.W. Marshall, MMC

Town Clerk

Supporting documentation is available at http://clerkshq.com/default.ashx?clientsite=Middletown-ri