Budget and Finance Committee - 2026-02-25
Meeting Intelligence Preview
Meeting Summary
The Budget and Finance Committee approved Bill 12 creating a sliding-scale water and sewer rebate program for seniors and persons with disabilities, with rebates ranging from 10% to 75% based on household income thresholds up to $34,450. Financial reports showed the general fund ended 2025 with revenues of $352 million and 4% expenditure savings, with a cash position of $39.8 million. The committee also reviewed comparative budget processes from other Pennsylvania cities and discussed alternative revenue sources including economic nexus taxation targeting online retailers like Amazon and Walmart.
Key Decisions (1)
Bill 12 - Water and Sewer Rebate Program
Bill 12 amends city code to create a sliding schedule of water and sewer rebates for eligible seniors and persons with disabilities. Rebate structure: 75% for income $0-15,000; 50% for $15,001-20,000; 25% for $20,001-25,000; 10% for $25,001-34,450. The quarterly sewer charge for 2025 was $29.75 and quarterly water fixed charge was $85.57. Motion made to refer to full council meeting on March 4.
Market Signals (4)
Housing Demand
City implementing financial relief programs for seniors and disabled residents suggests focus on affordability concerns for fixed-income property owners.
Commercial Demand
Economic nexus tax enforcement targeting Amazon, Walmart, and Target indicates significant e-commerce delivery activity in Allentown market.
Infrastructure
City maintains $39.8 million general fund cash position with majority invested in term investments yielding 3.73-5% APY, indicating stable municipal finances.
Sentiment
City exploring impact fees for new development to cover fire and police service expansion, signaling anticipated residential growth.