Development News for Allentown, Pennsylvania

City Budget and Finance Committee Reviews April Financials, Police Pension DROP, Capital Projects, and Stormwater Fee Risks

The Budget and Finance Committee meeting on May 28th, 2026, covered the end-of-month financial reporting for April 30th, 2026. Director Patel presented that general fund revenues were at 48% of the budgeted amount, totaling approximately $73 million, while general fund expenditures were at 27%, amounting to $42.3 million. Revenues were noted as net of NIS liability. Other city funds, including the risk fund, solid waste fund, strongwater, golf fund, rental unit fund, and building code fund, were reported to be within expected ranges of 15% to 78% for revenues and expenditures. The committee also discussed the increased realty transfer tax percentage implemented in 2026, with half the revenue going to the general fund and the other half to the housing fund, which had accumulated $664,000 as of April 30th. Public safety overtime figures were presented: police overtime at $746,000 (budgeted $2.6 million), fire overtime at $867,000 (budgeted $2.6 million), and EMS overtime at $243,000 (budgeted $725,000). Investment activity showed general fund cash at $68.5 million, with the majority in the Pennsylvania Local Government Investment Trust (Pligit) yielding 3.3% to 3.87% APY, and $11.1 million held in TD Bank for operating expenditures. Councilperson Moda inquired about the police pension and the DROP liability, which Director Patel explained as a deferred retirement program allowing officers to accrue pension while continuing service, with payouts occurring upon final departure. A written response to detailed financial questions regarding DROP liability and its impact on taxpayers is expected next week. Councilperson Moda also requested an update on pending capital projects, including the new public safety building, central fire and life center, and park and recreation facilities, along with their financial impacts. It was noted that the city has 71 active capital projects totaling $90 million budgeted as of Q1 2026. The police headquarters project has a groundbreaking completed, 29 bids are out, and bids will open on June 24th, with $9 million from ARPA funds appropriated, but no city funds spent yet. The central fire and life center project is in the site acquisition phase, with two sites under consideration. Details on park and recreation facility projects were deferred to Mandy Tolino. Finally, the committee addressed the potential financial risk associated with a Pennsylvania Supreme Court decision on stormwater fees, projecting a loss of $6.75 million in uncollectible fees for the upcoming year, prompting exploration of alternative revenue sources and potential ordinance changes.