--------- for the pledge to the >> flag to the flag of the United States of America >> and to theublic the republic for which it stands. >> One nation under God indivisible with liberty and justice for all.
>> It's like the great and powerful eyes up there. >> Clerk, please call the role. >> Mr. Raymond, >> present. >> Mr. Callahan, >> present. >> Mr. Cologne >> present. >> Miss Daniels >> present. >> Miss Que >> present. >> Miss Leairard >> present.
>> Miss Leon. >> Prior to consideration of the regular agenda items tonight, city council will conduct a public hearing. Public hearing number one. Tonight's public hearing will be related to the DCEED's 2026 CDBG home funding recommendations. This
public hearing is forformational purposes only. There will be no votes taken during the public hearing. In connection with this public hearing, there is one communication. The clerk the clerk will read that communication. The >> July 13, 2026 memorandum and proposed
resolution from Laura Collins, director of community and economic development, submitting materials for review by city council during this evening's public hearing for the 2026 community development block grant and home investment partnerships program
allocations. For program year 2026, the city will receive 1,370,39 in CDBG funds and $388,3810 in home money. This public hearing is called to order. I will now recognize a member of the
administration to discuss the proposed 2026 CDBG home funding recommendations. >> [clears throat] >> Hello. Thank you for Hello. Thank you for having me tonight. My name is Robert Vidoni. I am the housing and community development administrator. I work with
community development block grant and uh home investment partnerships funding and other federal funding sources in the community and economic development department. So, thank you for having me on the agenda tonight.
So, everybody should have uh a spreadsheet with allocations. That's an 11 by7 spreadsheet. And you should also have uh PowerPoint slides just uh before we start here.
So, first off, I I want to say thank you very much to the mayor, to director Collins, to deputy director Satulo, and deputy director Ziller for all the fantastic support and their their dedication to this job and to uh helping
organizations and vulnerable populations in the city. Uh the community economic development department, a lot of tasks are situated in this department. Uh we have wide ranging responsibilities and one of those is managing all sorts of
grant funding including federal grant funds. Is that better? I also want to thank community development bureau staff, our housing rehab staff, and our grant management staff. Uh I also want to thank our nonprofit partners. We are extremely
lucky as a city to have absolutely fantastic nonprofit partners that work handinhand with us to focus resources and help the most vulnerable vulnerable populations in this city. We could not do this work without those nonprofit partners. They are really they're in the
trenches dealing with all the federal funding uncertainty and all sorts of other funding uncertainties often with you know inadequate staff. um and they love what they're doing and we really thank them for all the work they're doing uh helping vulnerable populations.
So before we go through these slides, I'm not going to read every word. I just want to start out by saying CDBG and home funding are two funding sources that are very difficult to use and to administer. They are extremely demanding on city staff and those sources are
extremely demanding for our nonprofit partners. whether that's coming up with a accounting information, various reporting that we're constantly submitting to HUD uh and you know jumping through 30,000 different hoops
just to spend this fund funding. So is very difficult to administer and very difficult sometimes difficult to spend. So I'll start out here our 2026 HUD CDBG and home allocations. So our 2026 CDBG award decreased by about 3% from our
2025 award and our home award decreased approximately 7% from the prior program year. So our CDBG allocation in program year 2026 was $1,370,39 and our home allocation was $388,3810. So just as a preliminary matter when
you're looking at the allocation spreadsheet there's sort of two buckets represented by the two columns uh to the right you have the program year 2026 funding that is put into this uh this annual action plan and then the other
bucket is sort of other sources which is reprogram prior year funding. So while we are primary primarily here today to discuss the program year 2026 allocation, the action plan also includes uh reallocation of previously
approved funding and and moving money around to uh efficient sources to these particular activities. So I'll just go through a quick summary here. So, the community development block grant program, it's an entitlement program that provides annual formula grants to
fund projects that meet certain national objectives, including benefiting low and moderate income populations, preventing or eliminating slums or blight, uh, or addressing urgent community needs. Community development block grant funding is extremely flexible. There are a wide variety of potential uses, all
with their own individual rules. I think there are over a hundred categories of uses. So, it's it's very um it allows jurisdictions to customize the funding to their particular needs uh and to the needs of their various communities.
So, CDBG funding supports community development activities directed at re revitalizing neighborhoods, economic development, and improving facilities and services. Funds are awarded annually to the city administered by HUD as a formula grant based on a variety of factors. Weighted factors such as
housing supply, poverty, and other demographic factors I'm not going to go into. Obviously, on an annual basis, the federal funding levels affect what our allocations are. Uh, but then HUD also applies a bunch of these weighted factors using these formulas and then
they notify notify us of our allocations. It's sort of a a rather automatic process. So grantees here at the city, we develop our own programs and priorities um over a 5-year planning cycle and through a 5-year consolidated
plan. What we're talking about today are proposed activities and allocations that are part of a five-year consolidated plan. So this is uh one of several hearings where the city collects public input and goes
over funding priorities and also goes talks about uh program performance. So the home program the home investment partnerships program was established in 1990 and it is solely focused on housing
purposes. So just like CDBG funds are awarded annually as a formula grant based on a variety of weighted factors. The program funds housing this program funds housing activities including without limitation direct rental and purchase assistance and building acquiring and or rehabilitating
affordable housing for rent or ownership. So home funding can go into both, you know, single family housing projects and rental projects and a variety of other types of activities, but it all is housing related and all targeted to income income qualified
populations similar to CDBG. So the intent of the home pro program as discussed it's to target assistance uh increase the supply of quality affordable housing for lower inome households at or below 80% area median income to expand nonprofit housing
provider capacity to strengthen state and local government capacity to provide housing and to also serve to leverage private sector investment in housing. As we've heard many times, affordable housing is very expensive because you're
often putting in a patchwork of different funding sources that are very complex to to structure and plan out in in these projects. So leveraging, you know, public money to draw in other capital to allow these housing projects to be built is is extremely important.
So, the city of Bethlehem home programs. Betham uses home funds for activities such as home buyer purchase assistance, which provides loans to help with down payment and closing cost assistance under the Bethleam home buyer assistance program. And that is in part administered by a nonprofit partner,
CLV. We also have home activities related to development and acquisition subsidies for owner occupied and rental affordable housing constructed and or rehabilitated with home funds. So now we will go to let's see we're on
slide nine the 2026 funding recommendations for CDBG occasionally I'll like uh read out the acronyms. So, community development block grant there were 2023 funding requests and we recommended 20 requests
for funding. For home, there were three requests and we recommended three for funding. CDBG we accept applications usually uh we open applications on annual basis about a month. Home applications which
are generally fewer that's rolling and we receive home applications all year. So unfunded CDBG applicants, any any unfunded applicants are encouraged to apply for future funding subject to future funding availability. And we have
a lot of communication with with applicants and potential applicants and applicants that were not successful in a particular cycle because we really uh there are often situations where an applicant might not have a lot of experience with federal funding. they apply to the city and to other
jurisdictions and uh maybe over time you learn more about federal funding which is particularly ownorous and sometimes they come back and and when they have more experience uh their application is is reviewed again. So there is often a lot of back and forth between potential
applicants applicants and um unfunded applicants. So let's see here. I'm going to move to Just some background. So when we talk about a program year in CDBG and home
world, HUD world, our program year starts January 1st and ends December 31st. So it's not necessarily uh the same thing as a fiscal year whether it's be it the you know federal government or the city. So we are talking about the city's program years.
So, we do generally do not anticipate receiving our 2026 HUD funds until the fall or winter. Obviously, that's subject to various federal funding contingencies and uncertainties, but we do anticipate receiving our 2026
allocations sometime in the fall. So, just a little background on CDBG funding decision factors. These are just a few. Um there are many scoring factors when we apply our scoring matrix and there are many things that HUD will look
at when they come and look at these activities. So we look at demonstrated need for project timely statistics relevant to the beneficiaries um that the projects leverage other funding that again they're bringing in other non-federal funding. HUD cares
very much about that. They want to see a dollar of CDBG or a dollar of home bring in other funding. Ideally uh ideally that's the case the ability to spend the grant funds in a reasonable you know at a reasonable quickly time
frame or to start a project you know within a year to 18 months. So we look for quantifiable outcome based objectives in the application. We also look for ideally coordination with other organizations and attempts by the applicants to go out and seek other funding and build cooperative
partnerships with whether there are other government funders or other nonprofits. We also in the city of Betham take into account target areas. We have a north side 2027 neighborhood revitalization strategy area on the north side and we also have a a south
Bethlehem [clears throat] target area. Um these are areas which are selected through various like previous public input uh procedures and and uh we had to apply for HUD for the the nurse designation. So geographic target areas
that's another significant factor. So now I will go into very short summaries of the recommended activities. What I'm not going to do is read the detailed summaries. Everybody should have access to more detailed summaries.
So if you just in case anybody wants to look, there is a summary document with sort of a narrative descriptions of the projects and there are red numbers that are assigned to each one of those entries. Those red numbers correspond to the red reference numbers in the
allocation spreadsheet. So what I'm going to do is just run [snorts] down quickly through these the recommended activities and the funding. So we'll start with one. This is the city of Bethlehem CDBG program
administration and planning costs. This covers personnel costs, professional fees, studies, and other eligible administration costs. Just to actually back up here a little. So there are two significant funding constraints when dealing with CDBG.
We have a 20% cap on program admin activities and we also have a 15% cap on public service activities. Public service activities are our most overs subscribed activities. Sometimes there are, you know, multiple
requests several hundred% uh of what we actually can give out. So you'll see in the upper right hand corner of this spreadsheet where we have these caps calculated out. So again, for public services, any c any activities categorized as public services would
have to fit under that cap. And those are the blue activities. And we could only give out $25,546. For program admin, any of the activities that are have a type A associated with them, all of those activities cannot
equal more than the 20% cap, $274,000 and and change. So now I will get back to the actual activities. We talked about the the cap constraints. So now we'll go into the recommended public service activities.
Um community action development corporation of Bethlehem tenant advocacy program. This is focused on tenant education and engagement, landlord tenant mediation and housing referral services. This is a relatively new program which we funded last year with
CDBG as as seed money. Uh and this is a significantly reduced proposed allocation because the uh the applicant went out and they got a lot of other funding sources. They're working cooperatively with other nonprofits and they are you know working towards a
model where they are bringing in more funding and more diverse funding which is what we ideally like to see. So that recommended allocation is $15,000. will go to three. Betham emergency sheltering recommended allocation five or 50,546
and change and that's supporting emergency homeless shelter services which currently run from November through April. Pros activity four, Hogar Korea International, Pennsylvania. This is focused on substance abuse and counseling treatment services inpatient
treatment for women. Recommended allocation $20,000. Five, Lehigh Valley Center for Independent Living Place Program, which is housing counseling services for elderly and disabled individuals at risk of homelessness. This is a recommended
allocation of $15,000. Six, share, faith and action, volunteer caregiver and other services for elderly and disabled individuals and their caregivers, $10,000. The next is number seven, Hispanic Center for Lehigh Valley Food Pantry
Service Support, Culturally Appropriate Emergency Food Services for Individuals and Families. That's a recommended allocation of $20,000. Next is eight, New Bethany Representative Pay program related to fiduciary banking and payment services
for disabled individuals and other individuals who are not able to manage their own finances or manage their their landlord tenant relations. Um this is again designed to prevent homelessness, keep people in their housing. That recommended allocation is $50,000.
The next is community action Lehigh Valley and this is uh providing administration of the city Bethleam home buyer assistance program. So CLV is a vital nonprofit partner. They work with
the city to help administer our Bethlehem home buyer assistance program and that is actually funded with home money. The CDBG money is actually going to the administrative costs. And what the home money does is the the home money actually goes to direct subsidies
for down payment and closing cost assistance to support single family housing acquisition for affordable housing for first-time home buyers. So again, uh, activity nine, the recommended allocation is $25,000. We will go to 10, North Penn Legal
Services. This is the housing stability project, legal services for beneficiaries facing eviction and other housing related needs. Um, just as a qualifier, these are very, very short descriptions. These descriptions do not necessarily in you know encompass every
beneficiary group or every activity that these non these prov partner providers you know actually the services they perform. Again if you would like to see more detailed descriptions please look at the uh the summaries and you can always ask questions and we can give you
much much more detailed information. So now we will go to 11. Community Action Development Corporation of Bethlehem Exterior Rehabilitation and Weatherization Program. This funds owner occupied facade improvements at the
recommended allocation is $66,000. We have the next activity is city housing rehab grants and loans. This actually funds um cityrun housing rehabilitation program which is run out of the community development
bureau and this is a a program which is a owner occupi you have to be an owner of owner occupied housing you have to be income eligible like all these generally all these other programs and this includes emergency repair >> [clears throat] >> um and emergency repairs and there are
there are partnerships between our housing rehab program and the health bureau in terms of letting and healthy homes. And there are a lot of different partnerships which run through the community development um housing rehabilitation subunit. So the
recommended allocation for the city housing rehab grants and loans. The PY 20226 is $100,000. The total is $150,000. And you can look at the different columns. I won't do the breakdown. People can read if they if they like. The next one we will go to is
city housing rehabilitation program delivery and that also supports our city owner occupied housing rehabilitation program and it supports salary and delivery costs for the housing rehabilitation program. It's a different category of costs uh when we it's just a
different sort of HUD activity category but it supports the same program as this as the other housing rehabilitation activity. The next activity number 14 is uh New Bethlehem, I'm sorry, New Bethany Wot Street apartment renovations and
improvements. This is uh improvement of a section 8 rental unit and various site improvements to enhance safety uh for that particular property. The recommended allocation is $50,000.
The next activity is 15 Bloom for Women Heather House Improvements. This is a women's transitional group home. The funding would support facility expansion, roof replacement, bathroom additions, and and related ancillary work that is a $80,000 recommended
allocation. [clears throat] Number 16, VIA of the Lehigh Valley, Inc., This is a facility upgrade project and this CDBG would be used to support purchase and installation of a generator or a generator some pump replacement and the total allocation would be $299,000.
The next activity 17 is um it's basically it's a joint project city bees Christ Church UCCC and this is supporting this is um soft cost design and engineering costs related to an emergency homeless rehabilitation
project. So this money would go to supporting design and engineering soft costs prior to the construction commencing. The next activity 18, city future projects and grants. This is an amount that would be available to shift as
needed potentially into other projects. Just what this whole spreadsheet is. It's it's sort of we are making it's a almost a snapshot in time. What happens every year is you know some projects might be ahead of schedule. There might
be certain projects that are behind schedule. thing, you know, projects change and so we actually having a small amount of funding that could be especially with the federal funding uncertainty that can be extremely helpful to nonprofit partners. So that
is that activity 19 is uh there were city it would be the city department of public works and this is site cleanup and safety improvements at a um an encampment site located off center street south of city hall and that is a recommended allocation of $50,000.
The next activity CDBJ activity Betham redevelopment authority blight prevention and elimination program administration recommended allocation $25,000. I will jump now to the home investment partnerships program and again this is federal funding that must go to various
housing activities. So activity 21 this is city of Bethleam home investment partnerships program administration and planning costs similar to CDBG HUD uh absolutely they they prescribe a percentage that they believe is is necessary and reasonable to run these
ownorous and extremely complex projects because it is much more than you know there's project design there's also years and years and years of project administration particularly with home where you're tracking projects, submitting reports to HUD and these
projects take a very long time. So again, uh while the home activity 21 is sub is subject to a 10% cap. Um so that's the genesis of that activity. The next activity is a non-discretionary activity 22 and that is um the recipient
would be community action Lehigh Valley and they are they serve as the city's uh community housing development organization which is a home term of art. It's a type of entity that's eligible for this particular type of funding. We actually do not have
discretion. We must allocate 15% of our annual allocation to CHO funding. So that is that activity and number 23 that is the recipient would be a Penrose entity. This is the gateway on forth multif family rental new construction
project. This is 60 units mixed income rental and the the total funding within this action plan as you can see is 1,488,73.14. So, those are the projects, recommended projects or proposed projects.
Now, I'm going to jump back into the presentation and we'll start on slide 19, which is actually looks like it's page 10. So, I'm not going to go through every slide in detail here. There's some
information on the city's neighborhood revitalization strategy area which we that runs in a five-year term which usually runs concurrent to the city's consolidated plan like plan document and
we successfully applied to HUD to renew the this strategy area and to also expand the boundaries. the benefits of of having this area. There are a bunch of regulatory incentives that make this difficult money easier to use in a more
flexible fashion so that we can but there are to to qualify as a nura these areas and the various demographic factors have to meet very strict HUD criteria. So they looked at the application and they agreed this is a an important revitalization focus area. So
the next slide 20 uh the next actually few slides talk about the city's fantastic housing rehabilitation program. And while we go into a little more detail on the city's housing rehab program again we just because there are a lot of other items here at this meeting we're not going to go into super
detail on all the fantastic activities from our nonprofit partners. So, as you can see, you can read about some of the uh the stats on program performance related to our housing rehab program. We have longtime dedicated staff who are
working every day to help people improve their homes. And it is it's fantastic for the homeowners. It's also fantastic for the city. It helps our it helps property values. It helps communities. It's a it's a great program. And it really with very good production. So
we'll just talk quickly about next steps here. So what is happening is we have submitted a resolution um for the agenda that would approve submission of the city's annual the the city's proposed annual action plan and these proposed
activities and allocations to HUD. So HUD will will review it. It's a comes back to us. Sometimes it's an iterative it iterative process but what gener what happens is in the fall and winter provided we have the approval to to submit we would expect this funding to
come in we could start working with the nonprofits to first we have to execute con agreements and then we could work with the nonprofits to actually start putting this this funding to use. So you could see if anybody has any questions, please feel free to contact
us. Um, email us, call us. We are here to help people understand this program. Again, we if if you if you know any organizations that you think might want to apply for CDBG or home, please direct them to me. It's a standard activity. We
frequently talk to organizations and individuals about designing potential applications for the future even one or two years in in the future because um having that kind of interaction really leads to better uh applications that are uh less risky for everybody involved. So
again, if you know anybody that's interested, please direct them to the contacts that are provided in the last page of the slides. So those are I guess my final words right now. >> Thank you, Mr. Vidoni. I will now
recognize members of council for comment. Uh council to my left, Mr. Col. >> Thank you, Councilwoman Larard. I just had one question, Mr. Voni. On slide nine, which is page five of the handout, you for CDBG, you note there were 23
funding requests and 20 awards. Do you know of the 23 requests how many were new uh first-time applicants and then similarly of the 20 awards do you know how many of them were first time recipients
>> so we do know that you just have to bear with me here okay pull out my grant application spreadsheet for CDBG here so now when we look at applications um it's it's not just by we don't just look at the entity, we also it's the
activity that they're applying for the for the funding. So, in terms of new potentially new projects here or new applicants, um, so it looks like out of the out of the applicants here, we had three new CDBG
applicants. out of the home applications, we only have one home applica external home application in the pipeline, which is the which is the the the gateway project. And again, that's that's a rolling application. So, we did have
give me one second. I will just give you one more piece of information here. So it it it does look like we had three new CDBG applications as in the the entity did not apply for the same activity in
the last year. >> And of those three, how many received funding? I believe two here. >> Okay. >> So, we actually So, this year we did I mean I I can say specifically. Let me just look at the list here.
>> You're free to use the desk if you need more space. Mr. >> No, I I I do not need more space. So we had while we had new activities, we also did have we had Yes, we had two new applicants, new programs that um that
were funded. >> Thank you, Mr. Vid. and and I just appreciate and I know historically yourself and your predecessor, the whole department's been great at trying to pair and partner uh applicants who maybe
they weren't ready for this type of funding or whatever the case would be with other funding sources as is outlined in your presentation today. So, thank you for your work with the CDBG home dollars, but also more broadly the work you do. Thank you. >> Thank you. Any
[clears throat] other members of council? Uh, I have one question myself. Um, you mentioned that there's a 3% decrease in CDBG award and 7% in home award and I realize that that's a more complex
formula. Uh, in general, did all recipients of this funding see decreases across the board? Like was there less not give you a definite answer. I haven't done that that review. I believe >> all of the applicants for these two
funding sources at least received some proportional like or similar percentage reduction based on any federal funding allocation reduction. I can't speak to the application of the weighted factors. >> Sure. So, but there were there were fewer federal dollars available as
>> I I I believe that is the case. There were small some small reductions. >> Thank you. All right. Uh, I will now recognize members of the public for uh, any comment on the information presented. Uh, thank you
very much, Mr. Fedoni. >> Thank you. >> Um, with the general it's not a separate. >> Okay. Okay. So, uh, this comment period
is just for the CDBG, uh, home funding that we're looking at. Uh, there will be other public comment periods. Uh, Sebastian, >> great. Thanks for the clarification. Uh, my name is Sebastian from 811 Elm Street, Bethlehem, PA. Uh, I just want
to we got a lot of information that was just delivered to us by about the CDBG. A lot of funding that's going to be allocated to a lot of different projects throughout the community. Sometimes these are really large numbers and it's not really clear exactly what the projects are being invested in. So I just want to put a word of caution and
uh thoroughess in our looking into these projects and when we're assessing them to be assessing them for like not to be glitzy projects, right? We want our projects to be nice uh and look good but also to be very practical and address specifically the needs that are most
prevalent in our community. Um and also on that f uh we also want these projects to be repeatable or myself I want these projects to be repeatable right so as we see with grant funding it is limited uh it's constantly under threat of being reduced so we want these projects to maybe become more efficient uh
economically viable to move forward a large part of these initial projects when they get off the ground is that 20% budget allocation for the administrative costs when talk about designing proposal things like that we want the projects that we're investing in to maybe reduce that cost moving forward too. So every
time we get grant funding, maybe let's get find a repeatable project that we get when we get that same grant funding next year, that 20% cost of administering it goes down as well. So we can be putting more money to more units as a part of those projects. And on a final point uh around uh rent
control too, I don't know how much is maybe uh dictated by HUD as a part of this, but I have heard from members of council and the Bethlehem city that we're constantly looking for to how to increase our uh affordable housing or affordable rents as a part of these
projects. And I would love to see one day where we're hitting like a 30% threshold on some development projects um if not even higher with the funding that we're seeing here. So again, I maybe um not well informed on that fact about how these projects are applied, but we've seen throughout the nation how
when you get to levels of 30% affordable housing as a part of any project, it's you know very uh impactful for the community. So thank you very much. >> Thank you. Are there any other members of the public uh to my left for a comment?
Anyone else in the center? Hello everyone. My name is Brian Sweeney, 507 East Fourth Street, also director of operations, Bethl Emergency Sheltering. Um, so you guys are discussing the upcoming CDBG funding, which bees receives a
portion of those fundings, and I just wanted to stress the importance of how important those fundings are to bees and the people that we serve. Last season, Bees was blessed to be able to serve 223 unique individuals for 11,671
bed nights. That's 11,671 times that someone slept in a safe bed instead of out in the streets of Bethlehem. Uh 28% were fleeing domestic violence, 46% had a mental health diagnosis, 34% had a disability, and 21%
were 60 or older. Um [clears throat] 59% of the our individuals had a monthly income of $500 or less. 80% had a monthly income of $1,000 or less. In fact, only eight individuals served had
a monthly income of $2,000 or more. Um, 80% of all the folks that we served were from Northampton or Lehi counties. 96% served were from the state of PA. Five total individuals came from
Philadelphia. And eight total individuals came from out of state. I say that all to say that these are our neighbors. These people have been from the Lehi Valley, grew up here, and are just under some tough
times. Uh, so please consider that when you're going over your fundings. Um, also, I signed up to speak, but that's what I was going to say, so you can just cut me off of that. [laughter] >> Thank you so much. Anyone else in the center uh for public comment on the CDBG
funding or home? Okay. Anyone to my right? >> All right. Uh resolution 10A has been placed on tonight's uh council agenda. So the public hearing portion of our meeting tonight
uh is adjourned and we'll move on to our regular agenda. Um, do any council members have comments on the minutes from our July 7th, 2026 meeting? Hearing none, the minutes stand approved. We'll now move on to our first
public comment period. This public comment period is for any subject that we are not voting on this evening. Uh speakers are invited to uh spend a maximum of five minutes at the podium.
Um and again this is for items that we are not voting on tonight. I'm going to begin with people that uh signed up in advance. Uh so that would be uh Chrisanne Drew Lustig first. Uh you can approach the
podium. Hi. Actually, the pronunciation of the last name is Drust Lustig, but that's okay. >> Sorry about that. Thank you. >> That's all right. That's not a problem. >> Um, actually, I expected to see
>> Oh, I thought my voice was loud enough. Um, I actually thought that I would see the city of Bethlehem mayor here this evening, but I would like to um thank the city of city of Bethlehem, uh, the
members of council, uh, the police department. I saw that there's a gentleman here from the police department and I believe from the fire department. It's the white shirt. Um, I want to thank the public safety committee and their employees if there
is anyone here. um the family, friends, and concerned citizens. We as uh citizens, we the issue is we have a petition and I believe that you have a copy of the petition in front of you. I'm going to read it for the people that don't have a
copy here and um there's three pages of signatures um that have 85 signatures and um I'll just get going with it. So the issue is in light of the recent stabbing which took place on the greenway and seeing the growing number
of homeless individuals finding refuge under the pavilion on the 200 block of the Bethlehem, Pennsylvania greenway, it is important that the safety and security of the greenway on the south side of Bethlehem are addressed immediately. We the Litenburgger House residents and
that is my resident. It is 225 East 4th Street. We have 101 apartments in that building. Um, and we I we retained 85 signatures um of that uh of that establishment are calling on Bethlehem
Housing Authority to assist in passing along our concerns to the city of Bethlehem Council to ensure the greenway remains a safe and welcoming place to be enjoyed by family and the community. Bethlehem Housing Authority has already installed brighter lighting which improve visibility at night in our
building and set up security cameras at strategic points on our outside of our building. Furthermore, we are suggesting for a plan to address the homelessness in the area providing support and resources to those in need while also maintaining the integrity of the
greenway as a familyfriendly space. The city of Bethlehem should be kept informed of these issues to facilitate interventions. For that reason, we are asking for the Bethlehem Housing Authority to pass along our petition to the city authorities to emphasize our
concerns that will return safety and peace of mind to the Litenberg House residents specifically who use and cherish the greenway. The greenway should be a place of peace and relaxation for the community, a place where families can walk, jog, and enjoy
the natural beauty of our city without fear. Sadly, recent events have shown that the greenway has become a place of danger and concern. The stabbing incident has left the community shaken and Litenberg House residents worried about their safety when utilizing this public space. This is not the
environment our community deserves. We are coming together as a community directly to the Bethlehem Housing Authority to act as our liaison with the city of Bethlehem. We all understand the BHA is not responsible for the safety of the greenway and is it is the responsibility of the city of Bethlehem.
The safety of the greenway affects us all and only by working collectively can we ensure a brighter safer future for our beloved public space. Accompanying this pos petition are signatures of our residents who are asking to protect our
community. Pe please feel free to contact me only as one of the 101 apartments in the building just makes it easier to pass on the information to relay your reply or concerns to the residents. Um we are asking her they
were asking me to resent to be a representative only as a contact person. Thank you. And we all look forward to working together for safety. And I have brought a few of the residents that came. Of course, uh we are governed
under Bethlehem Housing, which is HUD. And uh I have lived there for 5 years myself personally and uh it's quite uh a building. It's one of safety and uh we'd like it to be kept that way. So, thank you very much for your time and
listening to what our concerns are. >> Thank you so much. And uh yes, the petition was sent to all members of council. >> Great. Thank you so much. >> Uh David Roof is the next person I have signed up. >> Good evening. Uh
many of you might remember me. I was here for our two marathon meetings we had with uh fire department staffing. Uh at that time, the last meeting, I was led to believe that there was going to there was an
$84,000 study or whatever was going to be done. It was going to be presented sometime in June. Well, we're in July and I was waiting for this study. Now, I don't know if the
administration has it. I don't know if council has it. I don't know if it's completed. Uh I don't know if it's being treated like the Epstein files and being redacted because of of what uh is in that file.
But uh I think personally as a taxpayer and although it came from city funds, it's city citizens tax dollars that paid
for that study and we should have full access of it in its in in its unabbridged presentation. And at that time, if need be, we could sit and discuss pros and cons. But I would like to see that
study. I don't know if the fire fire chief has seen it or is aware of it. Uh but uh we need the study. We know what the
problems are in uh the city of Bethleam. I [clears throat] just saw a morning call. Uh median housing in Bethleam is like uh $360,000 and we're the second in the state as far as population growth. Uh and yet
the fire department staffing is below the 1970 levels. Well, that I don't need any uh anything to fall in my head to know that there's an issue. There's a problem. And I'm hoping that this study will bring this
to light. And I personally would like to to uh have it publicized and let the citizens of Betham see exactly where we're at with the Bethleam Fire Department staffing, which is atrocious. Thank you. >> Thank you, Mr. Roof. Uh the next speaker
I have for comment is Janet Barry, I believe that says. Okay. Um, earlier this month I stood before the planning commission um because I'm very concerned by what I'm seeing happened to Bethlehem. Uh I'm here tonight to reiterate my
concerns which impact the quality of life of the people in Bethlehem, especially in the East Hills section. I am upset by the proposal of putting in several homes on Ma Road where one home currently stands. And while that is a
decent plot of land, it seems to me that developers are going to be shoehorning in homes into that area. I do find that to be full hearty, but I am not someone who sees every piece of land as a
business venture. Now, we have the potential for apartments at the intersection or excuse me, um yes, we have um the potential for apartments at the intersection of East Boulevard and North Street. This is a residential area and
apartments are going to be shoved in dwarfing the existing homes. This will be the fifth approval of apartments in what I believe is about a twomile radius. I'm also very distressed at the proposal of a storage unit to be built behind the
area of Walgreens and I really can't visualize where that storage unit is going to be. But I certainly hope that homes will not be leveled to accommodate such a business. I'm sure there are a lot of people who
are questioning these decisions, but it seems that city council is no longer running Bethlehem. Rather, Bethlehem has become a developer playground with apartment buildings being put on every corner despite the infrastructure being
unable to support the influx of people. While zoning may be written to allow for such development, council does have the power to say no and/or work with Harrisburg to make positive changes to zoning laws that have been virtually
unchanged for decades. You should be responsive to the city residents who are your employers, but yet you appear more responsive to the developers. Just because things are zoned a certain way does not mean that you have to
approve every single thing. Another issue of great importance to me and one where I believe council is falling short is the beautifification of Bethlehem. Around town there are signs proclaiming Bethlehem a tree city USA. Yet curb
trees are constantly being chopped down. Even though those trees are to be replaced, there certainly doesn't seem to be any follow-through by the city, which I don't feel is doing its due diligence. Just two weeks ago, the planning commission lamented the loss of trees at the Poke Pulk Street project,
but seemed satisfied that funds would be added to Bethlehem's tree fund. We just experienced one of the worst heat waves in recent history. In fact, probably one of the worst in my lifetime. And or at least I hope it will be the worst in my lifetime. And it is a known fact that
trees provide shade, cool areas, and provide a beautiful aesthetic in our neighborhoods. Bethlehem and city council is doing nothing to live up to its moniker of Tree City USA. City Council, you need to be responsive
to the voter, enforce your own rules, and pay attention to what is happening. Stop cowtowing to developers and start working for the people. The Christmas city is quickly becoming a city of renters. Thank you, Miss Barry.
I now see uh Will Mark Mariano. Thank you. >> Hi, greeting. My name is Gilmero. I'm actually from the Philippines and a counselor uh back at home, a f a young legislator as well. I'm currently doing
a summer program at Lehigh University. So I came um by myself here looking into understanding how is it like to run your council meeting as in comparison to how we do it back home. and for the past uh 1 hour listening to how you do things,
it's really impressive how you give the opportunity to the people of Betham to speak out which we don't have back home in our city council. So, it's something that I will really bring back when I go back to the Philippines uh next month and I hope uh as well this is my second
time in Bethlehem. I did a I did global village program at Lea University in 2023. Uh now I came back as a um uh as a residential guide for a summer program of uh the Ayakoka Institute and I hope that uh it is also an opportunity to uh
establish partnership between my hometown. I am from Sicidro Isabella which is a small town just like Bethlehem in the northern province uh of of the Philippines. So I hope that after the session uh I could have this opportunity to pro probably discuss uh
the possibility of um uh sisterhood uh between my city and and Bethlehem which I truly love uh and I still do love. Um this is my second time but still um it fascinates me how uh how beautiful your
city is. And then at the same time um next year also we're discussing the possibility of bringing in young legislators um very active uh young um active with the national movement of young legislator which is an organization for uh young legislators 40
years old and below. Uh we hope to bring them and have this experience just like I'm what I'm experiencing now uh next year. So I really hope to establish this strong collaboration between the city of Bethlehem and the Philippines. Uh thank you so much.
>> Thank you very much. And uh anyone for public comment, if you'd like to speak to a member of council more in depth or uh to a member of administration, you are invited to stay until the end of the meeting to do so. So thank you. Uh all right. So that exhausts our list
of people who signed up in advance. I will now uh invite those who did not sign up in advance uh to speak on topics that we are not voting on this evening. Uh, so is there anyone to the left who did not sign up? >> If you wouldn't mind uh just stating
your name for the record. Thank you. >> Um, hello. My name is uh Rooster Deat. I'm at 2297 Black River Road. Um, I am uh here as a recently informed and very concerned citizen of Bethlehem. As of
May 2024, the city of Bethlehem Police Department partnered with Flock Safety to install three flock cameras on city streets and open for a community partnership uh using private security cameras. There was no clear public
announcement about this, only basic coverage by local news stations such as WFMZ and the Lehigh Daily. I was unaware of this installation until 2026 when I offhand noticed a flock camera installed outside by b uh the autozone at five
points. Chief uh Michelle Cot says the Bethlehem PD is only using the license plate reader aspect of this AI based technology. However, camera data is still stored for weeks or months with a company called Gent Surveillance. Automatic license plate re readers.
ALPRs are a dangerous, inaccurate, inefficient, and quite frankly creepy surveillance tool that has no place in Bethlehem, let alone the Lehigh Valley. They record hundreds of hours of data and store them in a national database for months. These data are not protected
under any warrant of any kind. Officers are able to access video footage under any suspicion of a crime or incident or under no suspicion whatsoever. This wide database of video footage has already fallen victim to multiple data breaches, being accessed for nefarious purposes,
um, including falsely accusing people of crimes and, uh, alleged pedophilia. Even it even in its proper use case, reading license plates, ALPRs flounder. Flock cameras in Bethlehem resulted in only three arrests. And the plates do
not used to ID these plates accurately do so only 1 to 5% of the time. Despite this, they are be being used across the nation to track people, pin crimes on them, and potentially arrest and charge them. Hundreds of people across the country have already reported being
falsely accused of traffic violations due to inaccur in the inaccuracies of these AI trackers. How long until this happens in Bethlehem? Bethlehem's installment of cameras has been limited compared to compared to our neighbors and for that I am thankful. We only currently have three to five sites
under surveillance along with the opportunity for community surveillance through private cameras. Although I could not find any public data on how many people exactly have signed up for this program. Allentown currently has 67 flock cameras. I could not imagine living under such surveillance.
As your constituent, and these are the words of the ACLU, I urge you to pass legislation that reinforces the use of automatic license plate readers, ALPRS. ALPRs are being used to track our movements, spy on our communities, and compile detailed databases on our
everywhere we use our vehicles. And it's far too easy for this data to be misused. You have the power to protect us from this surveillance. And that starts with passing legislation to either ban alprs or create strict regulations that
include the following guard rails. Limiting data retention to hours or days, not weeks or months. Limiting data by sharing limiting data sharing by prohibiting local law enforcement from providing access to any other government entity
unless they have a warrant for a felony crime that is recognized under local state law. I'm talking about ICE detention here. Limiting usage to fel felony investigations, missing person's cases, identifying unregistered and uninsured vehicles, and certain limited
non- enforcement scenarios like electronic toll collection, requiring annual annual usage reporting and placing limits on the availability of ALPR data via open records requests so it cannot be used for troublesome purposes like stalking or embarrassing a
person for entertainment value. Each day these cameras remain active. They collect sensitive data that could be used to violate our rights. Please act now. Thank you. Thank you so much. Is there anyone else to my left who
would like to make comment on something not being voted on this evening? Okay. Anyone in the center? Ary Faber, 321 Georgia Avenue. Um, wasn't really planning on speaking, but I was a little troubled by one of the comments. I think it might have been the
first one I heard. And, um, I'm reading, among a lot of things. I call myself a communist, a socialist. Uh, among other things, I also call myself an abolitionist. I'm currently reading um abolition geography essays towards liberation by Ruth Wilson Gilmore.
Really recommend it. Um but when we talk about homelessness and crime, uh yeah, these are issues that are deeply rooted in economics. And um I just want to reiterate that public spaces aren't
uh only for those who have houses, those who are uh have have solid incomes. these public spaces like the greenway. Um being homeless doesn't make you a threat and you shouldn't be treated as that. And also the answer to
homelessness and the answer to crime isn't mass incarceration. It's not throwing away people and locking away and locking throw locking up people and throwing away the key. Um so I just want to make sure that we're not thinking that that's like the right answer or solution to any of the systemic problems we have. Thank you.
>> Thank you. Anyone else in the broad center? I guess this light don't work, huh? >> It's a button on the front there, clerk. >> Don't work. >> I thank you very much. Thank you. Hi, my name is Arty Kerthola
in Betham, Pennsylvania, resident, born and raised here. Uh, I speak a lot about people in power in our city. [clears throat] And
I have no objections with anybody of any race making a living and being having a successful business. Most of the people that have businesses that are are in power happen to be
Jewish. I am not opposed. I do not hate the Jewish people. But we, whether we are Jewish or not Jewish,
Gentiles, whatever nationality we are, read the prophet Hosea in the Old Testament, who's Jewish, who Jesus actually quoted on the Mount
of Olives, who spread the word of love over hate. so that the Jewish people would shine God's love throughout all nations
to be the chosen people of God. That is the main focus. I'm not saying all Jewish people are evil. I never said that as the press has misqued me many times called me anti-semitic
and saying that I hate the Jewish people. Whoa. But for 2,000 years or more, the Jewish people can't or won't negotiate with their neighbors in the Middle East. They just want to kill the innocent
brothers and sisters that are there, destroy their lands so that they can own the land and control all of the Middle East, Europe, Asia, Africa, Britain,
and they're controlling the minds of the people in the United States. It's time that we put an end to this and [snorts] put our foot down. Especially if you're Jewish. >> Is there something? What?
>> We've covered this um unfortunately multiple times. Uh that while >> my meter is still going here. aware uh that while comments made by certain public
commenters might be deeply hurtful or inappropriate in most settings, we >> as I said before, I am not stating that I hate the Jewish people and I'm not stating it at all. I'm saying that we
need to replace control and power and hate with love, no matter who we are. Now, we seem to have more Jewish leaders in our city of Bethlehem than other
cities. I'm not opposed to that at all. I don't know why we're interjecting on this and why you had to interfere with my meter. I would have gave you a tip if you would have uh been a little nicer. But anyway, the pro the prophet of Hosea
in the Old Testament, the terrorist of Israel and the radical Republicans in our country should really go along with that to end the genocide. And we should end the control and the hatred in every
city that we live in, especially in Bethlehem because this is our city. Um, this hatred thing is spreading like a cancer, like a wolf of sheep's clothing
throughout our cities, especially really great in Bethlehem and the entirely high valley. I could show you where they misqued me and you have the records of me speaking. I'm going to have to have my Jewish
attorney eventually get those records if you don't straighten this matter out with the press. Um anyway, it just seems that the radical Jews would rather kill and [clears throat]
destroy and ruin a lot of people's lives and [clears throat] considered him anti-semitic and that's not really >> Your time is up. Mr. Curyah, please sit down.
Well, we should spread the love, including the people with city council. Sit down. God bless you. >> In case the comment wasn't heard when uh it was asked, there was a question about what forms of speech can be controlled
in our public comment sections. Unfortunately, comments made by individuals that are not attributing to specific individuals, calling out specific individuals, etc. are protected free speech and we
are unable it appears to um to stop all of them. There are times when we when we can and have intervened. Um I am sorry for any harm that that causes uh to to people who are forced to hear it. Um I
will now uh invite Yes. Go ahead. That's you Mr. Antalix. [clears throat] Steven Antalix 737 Ridge. Like Mr. your favor. I didn't intend to say anything, but this kind person
hit a topic that I've been on at Nauseium. That's developers taking over and uh she was right on target. If you drive on Fifth Street,
Hillside Avenue, Filmore, Webster, any day this week, you'll feel like you're in a deserted city. Why would you feel that way?
because you could pick any spot on those streets to park your car. Nowhere else in Bethlehem does that happen. Why does the southside feel like
uninhabited city? If you answer, write it down and let me see it because simple answer is students are away on vacation. Come September,
you can't find a parking spot because in some cases they're double parking on the street. It's a busy city. Who owns the properties? The company puts big signs rent from us
because that company owns over 100 properties in that area. They all have yellow doors. No other city in the country is that way. Who made it that way?
The woman is right. City council. City council creates that problem very very simply by the definitions in the zoning code by proving the definitions
of adnauseium ask them to revise that it's not happened even went in further to call that area students zone. You're not going to see a single family in that because it's a student zone.
At one time, that was a pearl of the city of Bethlehem. It's a shame because what made Bethlehem was that type of neighborhood. As a matter of fact,
to amplify that how you've created that at some meeting some time ago, I referred to the students as transients and I was accused by a member of council
that I was making disparaging remarks. Well, I checked with nine out of 10 city developers and 100 they all 100% agree that students are transients when proof drive almost reached
tomorrow. So council needs to shape up and look at that problem and start revising definitions and maybe Beth be will begin to look more like a residential city rather than
a home of transients. Thank you, Mr. Intelix. Is there anyone else in the Broad Center? Go ahead. >> Terry Kber, Grand View Boulevard, Bethlehem. And to quote Stephen, the woman was right. Everything she said
tonight, I I just I wish I would have come up with some of that stuff. You all know we're going to be fighting the Bennett Lot building. the the developer there is planning monstrous a monstrosity. Several of you have walked the neighborhood
and I think all of planning, all of zoning, all of all of those groups, you guys included, everyone should be walking these areas to see what the n surrounding neighborhoods are before you go and allow five and six story buildings behind twostory neighborhoods.
It's going to be pitiful if this goes through when he starts putting his plans together. And it's just a shame that when I went to the Allentown uh zoning hearing a couple weeks ago for the first part that BHX wants to build on the
Allentown side and I got up and I said, "Why can't you guys hold him to what he what the rules are? Let him color within the lines." And they told me, 'Well, sometimes we just have to allow these variances that they want. Well, you don't make them stick to the rules.
Don't go through all this. We went through the commercial part last time. We won on that. Thankfully, the curative amendment, I don't even know where that is right now for the length. I believe he lost on the length and he has to stay within the length, but he's still going to go five and six stories behind our
two-story neighborhood. So, I really thank you for all you said and I hope everyone takes that to heart. Thank you. >> Thank you. Anyone else in the broad center on something we're not voting on?
>> Sebastian Zavaruka, 811 Elm Street, Betham, PA. Uh to the new members of the council, welcome. Uh my name is Sebastian. I've spoken in the past around issues of ICE and concern to our community members. I look to revisit the topic of the
welcoming city. About this time a year ago, we had a few incidences of kidnappings in our own community. We had 17 members of our community kidnapped from a local uh work site here, of which we still don't know all the names of
those people who were taken away. Um, we also recently had a vigil this past um, Saturday um, in memory of the two people who lost their lives in the past couple weeks. Their name is Johan
Sebastian Duran Guerrero and Lorenzo Salgado Arajio. I would just like to take two minutes to think about the lives that are lost. >> [snorts] [clears throat]
>> What we did not see at the vigil this past week was the same number of people of our community as had turned out months ago when two white people were killed. We saw hundreds of people there and the numbers did not show up in the same
amount for these two people who were killed in the same capacity. Members of council, we've been through this a number of times and from my memory, the largest opposition to the idea of a welcoming city ordinance was the fear
of some reaction coming down on us. What have we seen in our sister city of Allentown over that same time since they've passed their welcoming city ordinance? None of that fear has come to fruition.
There has been no federal mandate against Allentown or reaction. Why I am pushing for the welcoming city ordinance is that while yes, our police do not participate,
that is a voluntary action, that is not hard law stipulated and can be codified. What we've seen over the past few years is the constant precipitous erosion of our civil liberties when we do not protect them to the best of our
abilities. and we have that opportunity once again. [snorts] >> Thank you. >> Thank you. Anyone else in the broad center for comment on an item not being voted on this evening? To my right, anyone for comment on an
item not being voted on? Right. Uh we will now move on to comment on items being voted on this evening. We had one person signed up uh but he has already commented in the uh hearing
portion of the meeting. Uh so is there anyone to my left to comment on an item being voted on tonight? Hello again. Uh my name has not changed in the last 10 minutes. I am still Rooster Deontat 2297 Black River Road. Um there are many resolutions being
voted on this evening which I have my full support behind. Of course the Bradberry Sullivan uh pride uh which has been approved the last you know decade. I don't think you guys are going to vote against that this year. Um the multiple that I want to uh focus on specifically
are the emergency solutions grant uh on behalf of the high valley homeless service providers uh and the w water watershed restoration and protection program grant. Um the emergency solutions grant ESG is of course as this gentleman said vital to supporting the
uh unhoused population of Bethlehem. I have done studies on this population with this population. Um they are well educated, wonderful people who are suffering through some of the worst weather we've ever experienced with no
protection. Um we cannot currently house all of the unhoused people in the city, the small amount that we have proportional to our neighbors in Allentown. Um and so I cannot emphasize enough how I would like this money to be expanded to support these people as much
as possible. Um, a savior Bethlehem is a Bethlehem where everyone can have housing that is affordable. Um, and I understand that Lehi's presence in Bethlehem has certainly spiked those expenses. Um, and I wholeheartedly agree that certain landlord companies have a
stronghold, which is what's making this difficult. So, expanding programs that support the unhoused population can result in uh a safer Bethlehem for all of us. In terms of the watershed restoration and pro protection grant, I uh again would hope that this is
approved and expanded. Um I cannot emphasize enough how much uh there's a a memo here earlier on on the data center approvals. I cannot emphasize how much uh a negative impact data centers have
on the water uh quality of the Poconos specifically, which is where we get our water. I know that Bethlehem city water has been heavily polluted by the presence of the steel uh city uh the steel
bridge company. Um and so we are unable to support our own water and that is why we have Pocono water supplies. Um and so I would hope that the city of Bethlehem would act as a harbinger of protection for these very important water sources uh for its people.
So I would hope that as part of the expansion of the grant for water protection that we would also look into limiting the expansion of data centers which use this clean safe water and turn it into pollution really warm and really inaccessible for people who actually
need it. Thank you. >> Thank you. >> Anyone else to my left speaking on an item that we'll be voting on this evening? Okay. Anyone in the broad center for items we'll be voting on? Mr. Faber.
>> Hello. Thank you. Yeah. I also wanted to speak about the data center ordinance. Um I was overall I'm pretty >> Mr. F. We're not actually voting on the data center ordinance. No. Uh that's a communication tonight. It will go to committee and Yep. All good.
We we will definitely have opportunities to speak on that when it when it does come up for vote. Thank you. >> Uh anyone else on topics we're voting on this evening? Okay. And to the right. All right. Thank you. Um that concludes
public comment for this evening. We move on to council business. Uh does anyone have any old business as a member of council? Okay. Uh, any new business from members of council? Um, I bring to the table uh I I will
accept a motion and a second as we've done in the past uh due to upcoming music fest and the impact that has on this area um to reschedu the time of the city council meeting on Tuesday, August
4th, 2026 to 5:30 p.m. instead of 7 p.m. Uh so do I have a motion and a second? So move. >> Is there a second? Second. >> Any discussion? >> The clerk will call the role. >> Miss Quitec >> I.
>> Mr. Raymond. >> I call >> I. >> Mr. Cologne. >> I. >> Miss. Daniels. >> I. >> And Miss Lar. >> I. Motion passes 6. The starting time of the August 4th council meeting has been
set for 5:30 p.m. That concludes new business. We now move on to communications. Uh clerk, please read communication 6A. >> A July 15th, 2026 memorandum from DCED Grants Administrator Lorie Gillio with
an attached resolution. Miss Julio seeks authorization to apply for up to $1.5 million emergency solutions grant funds from the Pennsylvania Department of Community and Economic Development. This action would be on behalf of Lehigh Valley's homeless homelessness service
providers. The city would act as a pass through for the funding if it is awarded. >> Resolution 10C is on the agenda. 6B. >> A July 15, 2026 memorandum from DCED grants administrator Lori Gillio with an attached resolution. Miss Gillio seeks
authorization to apply for the watershed restoration and protection program grant through the Pennsylvania Department of Community and Economic Development. If received, the grant of up to $300,000 would be used to rehabilitate the Stefco Swale.
>> Resolution 10D is on the agenda. Uh, communication 6C, please. >> July 15, 2026 memorandum from DCD grants administrator Lori Gillio with an attached resolution. Miss Gillio seeks authorization to apply for the multimodal transportation fund grant
through the Pennsylvania Department of Transporta Department of Community and Economic Development. If received, the grant of up to $3 million would be used for construction in alignment with the complete streets plan on Stefco Boulevard. Resolution 10E is on the
agenda. Communication 6D. >> A July 15, 2026 memorandum and proposed ordinance from Kathy Fletcher, director of planning and zoning. Miss Fletcher summarizes the proposed zoning ordinance amendments that would establish regulations for data centers.
Um, this matter will be referred to Community and Economic Development Committee as part of a scheduled meeting to be held on August 11th at 6:00 p.m. in town hall. One point of clarification from the memo is that our current zoning
ordinance does allow for data centers. Uh, the items being discussed will be to put restrictions and regulations surrounding them uh in a a more tight way. Uh, so [clears throat] August 11th, 6 PM in town hall communication 6E,
please. >> July 15th, 2026. >> Sorry. >> It does not in my understanding. Correct. No vote needed for that referral. Thank you. Uh, communication 6.
>> A July 15th, 2026 memorandum from city solicitor John Spark Jr. with an attached use permit agreement and resolution. Hermiti is Arts Quest and the event is Countryfest. The action is to approve activities occurring from 5 to 11:00 p.m. on August 21st and 3 to
11:00 p.m. on August 22nd. Premis is First Street from Founders Way to the Eastern Terminus. >> Resolution 10F is on the agenda. >> Communication 6F. >> A July 15, 2026 memorandum from city
solicitor John Furke Jr. with an attached use permit agreement and a resolution. Permitity is the Bradberry Sullivan LGBT community center and subperity of is Arts Quest. The event is 2026 Lehigh Valley Pride. The action is
to approve activities occurring from 1 to 7:00 p.m. on August 30th. Premises are First Street from Pulk Street to the Eastern Terminus and Founders Way between First and Second Streets. >> Resolution 10G is on the agenda. We'll now move on to reports. There is nothing
for the president's report tonight. Um, is there anything from the mayor's office to report? >> There are two administrative orders. >> Agenda item 7 B1 is administrative order 14, 2026-14. I hereby reappoint Ian Panko of 1939
Hard Street 1807 to membership on the Bethlehem Fine Arts Commission. This appointment is effective through July 2029. >> Administrative order appointing Ian Panko to the Fine Arts Commission. The resolution is sponsored by Mr. Aean and Miss Lair.
>> Is there any discussion from council? >> Uh I'd like to make a general comment on both of the administrative orders for tonight. uh regarding the fine arts commission. I recently had a conversation with um uh the head of the
fine arts commission just exploring a little bit more of what their work is. Um and wanted to just draw light to that for a moment. Um we know that there's uh exhibits in this rotunda that they provide. Um there's the sculpture garden
next to city hall. Uh, one thing I was unaware of is that um, they actually maintain the city's collection of archived artwork and are doing a lot of work cataloging that uh, for perpetuity uh, within the city. So, um, just wanted
to bring that up because it was a fact I recently learned and I appreciate the volunteer efforts of everyone on that commission. Um, the clerk will now call the role. >> Miss Quiet, >> I. >> Mr. Raymond >> I >> Mr. Callahan >> I
>> Mr. Cologne >> I >> Miss Daniels >> I >> and Miss Lair >> I >> thank you. Uh agenda 7B2 administrative order 202613. I hereby appoint Jill Spandino of 510
High Street apartment 218018 to membership on the Bethlehem Fine Arts Commission. This appointment is effective through July 2029. >> Administrative order appointing Jill Sparendo to the Fine Arts Commission. Resolution sponsored by Mr. Aman and
Miss Lair. >> Any discussion from councel? [clears throat] >> The clerk will call the role. >> Miss Que. >> I. >> Mr. Aean. >> Hi. >> Mr. Callahan. >> Hi. >> Mr. Cologne. >> Hi. >> Miss Daniels. >> Hi. >> And Miss Lair. >> I.
[snorts] >> Thank you. Anything else from the mayor's office? No. Okay. Uh for committee reports, I will now recognize Mr. Cologne, chair of the finance committee, for his report. >> Thank you, Councilwoman Leard. So, the finance committee met this evening at 6
p.m. right here in town hall to discuss three agenda items. The first was to review a proposal to restructure existing general fund debt. That was just a presentation. The council will be presented with a parameters ordinance uh
between now and the next meeting for first reading, but that was not reviewed at committee. We just heard the presentation from PFM. And the committee also reviewed a proposed ordinance involving an adjustment to the capital budget for non-utilities along with a
related resolution to transfer money within the general fund to cover the city's portion of matching funds in order to receive the grants. Both of those items were forwarded to council for tonight's agenda. Thank you.
>> Thank you, Mr. Cologne. Now move on to ordinances for final passage. We have three tonight. I'll start with agenda item 8A, bill 19, 2026. Ordinance of the city of Bethlehem, counties of Lehi and Northampton, Commonwealth of
Pennsylvania, amending article 1731 titled inspections and amending article 119 titled registration, sale and transfer of real estate of the city of Bethlehem codified ordinances. Bill number 19, 2026 is sponsored by Mr. Aean
and Miss Quitech. >> Any discussion? >> Yes. Uh >> I don't know who I who am I speaking to for this. myself or Mr. Simon. >> So, last Fina, I I I asked a question
about, you know, when there's a sale, and I get it what Mr. Reynolds said about how um if there's a a sale of a property, this is on a brand new property is what I'm assuming. So, I can totally understand it. if someone's in
the unit and then the property sold like 3 months later um at the time of the sale if the the unit might not be in the same condition it was when it passed the co originally you know 3 months prior but when the when the buyer buys when a
new buyer buys the property he has to assume the leases that were originally signed with the property Are you following it? >> Yeah. >> So, shouldn't the CEO
uh also follow the sale of the property? I mean, I don't understand why I don't I don't understand why the >> Mr. Sly, >> please. And I'm not trying to bust any chops here. I'm just asking a question here. So, I don't want anybody getting
defensive. Um, yeah, Mike, you know what I'm saying? >> Yeah. No, I do. So if and now if I if if the if a rental if someone is renting moves out and there's a new renter coming in, I totally understand it that's now got to be reinspected. But it
just seems to me that um if the property if the property passed inspection and you had a CO, I'm talking on multi-units, right? Everybody that's everybody that's staying in those units, uh, the new owner has to
buy also and abide by the lease terms of the original, uh, owner. >> I follow you 100%. So, just for there, so there's different set sets of ordinances for different for rentals versus sales versus So, uh, we don't do
it any longer at the change of a tenant. So, it's we're on that three-year cycle for the rentals. But as far as for um for the transfer inspection that we're talking about here at 1731 and 119, this is at the transfer of ownership of property. This we don't get involved
from a code enforcement or an economic community development or from a city perspective at all with the leases or anything like this. We're just clearly there to make sure that the property is in the condition that it can be the transferred so that the new owner receives the city documents stating that
these are the deficiencies or there are no deficiencies or whatever it may be. Now, uh granted, you know, like you were saying, if it's if the property kind of turns around quickly and then it just was constructed or it's new construction, it gets a CO. We've already run into the situations where
the conditions have changed since a new construction was built to the time it was sold. So, we would go in there. That's kind of a part of our um both our code enforcement and our housing program where we use these property transfers and and other things like this as
avenues to catch up with work that was done on properties that we may not have been aware of throughout the entire process. So, kind of like when people flip houses or anything like that. So they go in do this work or undocumented work or or maybe fib on their permits
and don't give us the full amount of work that happens. This is where we catch up and catch some of this stuff. So one of the things with new construction is we may have to go in and and see they may have had um and we're not too concerned with the change of tenants themselves, but we're concerned with the building itself. So like is the
fire system still operating properly? Are the alarm still working? Is it still calling out? There's things that we list that we go down in each inspection that we do these. So the these are things that are fluid at the properties and yes, you're right. New construction is a little bit different than the other stuff, but when it comes to the leases
and stuff, we really don't get involved in that. It's just for the property itself. So, I I totally understand making sure that the the property's up to code as far as all the safety things, fire alarms, uh fire suppression systems, all that stuff, but are we are
we making So, I'm assuming it's the same way as someone that sells a house. The the seller has to pay for those things and get those things up to code prior to it being sold. >> Not necessarily. So if if you're if you were selling a property and we did our
sales inspection and there was deficiencies found, you could sell that property to the the prospective buyer as is, right? >> And then they're then they assume that responsibility. And that's what this ordinance change is really about is state law now gives or mandates that
they have 12 months from that inspection to make those corrections, whereas previously the city only gave 90 days as part of our sales ordinance. So, this is increasing the time that they have. >> So, and I'm just going to throw a number out. Let's say there's a 100 unit uh
property. >> Mhm. >> Um it just opened up. It's brand new. So, there's 100 units. I So, we're going in and making sure that the fire suppression, all the safety systems work prior to it, the transfer to sale, which I get. Are we then? So, let's say we're
in the it just three months ago, uh it just opened up. all 100 units past inspection. If it sells three months later, are we now charging? Are we also outside of the safety systems, fire suppression, smoke and so on? Are we
then going in and reinspecting all 100 units again? >> Yes, >> we are. >> Yeah, we go. >> Well, that's what I don't that that's what I'm having a problem with. It just seems like it it seems like a money grab. It's a it's it's not and it's a bit redundant, but at the same time,
it's it's also informative for both the landlord, tenants, and things. We find things that maybe even the landlord's not aware of that the tenants have done to their to their uh their apartment or their their suite or whatever it may be. So, it it may seem redundant, but it's it's an extra layer of safety. And then
when those properties do sell like that, for instance, that co then travels with them for their for their uh as part of their rental program. So that we do assume that as if it's sold immediately right away like that, we carry that inspection into the rental program. So
we don't go like if they're, let's just say like on a three-year cycle, if they sold within three months and then maybe the next eight months later their rental was due because their ward was up, like we wouldn't charge them. We wouldn't do those inspections. We would allow that
to to fill in for that inspection to fill in for that inspection. >> Yeah. I mean, that's where I have a problem. I mean, I I I totally understand if there's a new renter going in, you know, at the time of the sale. The the three months ago, there was renter A in there. But if renter A is
staying in there with the and and that lease is being taken over by the new the new owner, I think that the not only should the lease if the lease is being um granted and honored, so should the CO for that one-year period. I I don't
think we should be have to go in and and and rehit them again on another inspection on another 100 units. >> Understand that. But at the same time, we're going in each of those units, like I said, and we're giving the new owner a a document that states what the current condition is of the department that he's
purchasing that building at that time. So, uh, a CO for new construction is a snapshot in time and then three to six months later, whatever it may be, we go in and do another inspection. And that's the most updated version of that building that the new owner is receiving. So there's no real there's no
discrepancy between this in that time period. So that's kind of two snapshots in time, but they get the newer version. >> Yeah. I I just think it's probably uh very few in between where um
new construction 3 months later actually really needs another whole inspection. I I know it's not up to you, but that's just what my promise. Thank you. I appreciate it. >> Yeah, no problem. >> Any other discussion? >> Well, I I just want to make So, my only
point in bringing this up is we all have to understand something. Rental rates keep going up and up and up and every time an owner gets more fees, not not addressing you. I'm just saying
to all of us, every time an owner of a property, I don't care if you own one property, two properties, three properties, or 100 properties. I'd love to own a 100 properties. I know I own three. Every time I get a bill, and I'm pretty sure everybody's just like me. I
invested money to try to have an investment for my kids. I'm a retired teacher. There's retirement firemen. There's policemen, just normal people who are trying to get one or two properties. Every time our
expenses go up, we have to then push that on to the renter. There's no other way to to recoup the cost. We don't get grants and things like that from the state. So, every penny that I get charged, I then I divide it up by 12 and
that's how much my rents go up. So when my taxes go up, the school district taxes go up, inspections go up, every every bill I get, I then have to pass it on to the renter. And that's how our rents keep increasing, increasing,
increasing. Every time that we add another fee or another charge, the rents get higher in the city. That's all that's just a a side comment on my part. Thank you, Mike, for your >> any other discussion. Yes, >> m
>> Mr. Simson, I have a followup. I'm sorry before you sit you sit back down. >> Yeah. >> For for my own clarification to something you said as it relates to going in and doing the inspection. So the
So a new building is built. Let's say it doesn't sell. I know we're talking about sale. When would the next inspection be? Same owner owns it in perpetuity forever. You get the the initial clear co start renting it. When when do you go
in again? >> So that could change. That could vary. And the reason I say that is so we currently do our rental inspections on a three-year cycle. So depending on the year that that building is built and then when its ward subsequently comes up
like if it comes if it's built in let's say 2026 and it's ward comes up in 2027 we are not going to reinspect that again. >> And so I'm sorry what it's what in 2027 >> if it was like built in 2026 and then it it's ward happens to come up like first
quarter 2027 we're not going to redo the inspections and redo everything again. What it's gonna happen is is if if it stays under the same ownership, it'll then fall to the next. So be it would come up in 30 at that point. >> But >> three years later.
>> Yeah. But now now let's say it it sells. >> Yes. >> You said when the So let's say it sells to Mr. Callahan's uh example 6 months later. >> You go in, you do the same thing again. You give the new owner their document.
These are the deficiencies. You have 12 months to fix them. How does that impact when that 2030 inspection comes up again? >> It would then be the same thing. It' be the three years or it would it would just falling back into its cycle. So if it was to again if it was to be sold in
27 or even in that matter if it was let's say it was sold in 29 it would get that three years. We wouldn't do it again in 30. We would do it in 32. I guess it would be however that would work if you follow me. So >> So it pushes it out. It pushes it out to three years.
>> Yeah, it pushes it out once it if it's sold and then it's inspected or if it's built right at the same time frame that it would be due for a normal inspection, it gets bumped out. >> Okay. >> Thank you. >> I have a question real quick. >> Yeah, if you could please. What is the
cost for a CO inspection versus the tri-year um rental inspections? >> So, well CO inspection there. Okay. Okay. So, there's two different types of inspection. So, a rental inspection is is uh it's all on a sliding scale. So,
depending on the size of the property is going to depend on the fee for the the for the permit for the uh for the inspection. So, what I mean by that is like one to three properties, it's a $100 per property because usually they're single family dwellings and they take us a little bit longer. When we
start getting into like the four to nines or the 10 to 20s or the larger, the fee for us goes down for the inspection because we could do more units in a shorter amount of time because usually they're smaller units, one maybe one and two bedrooms, no
exterior in some cases. So, our time on property shrinks down. So, our fee shrinks down. Okay. >> Now, that's for the rental side of things. Um on a sales inspection, it's uh commercial properties are done by the square footage and then rental units
like so if it's a 100 unit property like we were talking about. Um the commercial would be done by square footage and then it's $150 per unit for the sales inspection and that's a standard fee we have for any [clears throat] type of residential sale. >> Is it fair to say that the sales
inspection is more expensive? >> It is. >> Okay. >> Yeah, it is. >> Okay. Yeah. And yeah, and also with the residential rental inspections, there's also licensing fees as well, but there's that that do do not carry over to the sales inspection.
>> And if the sales inspection is done um by the seller, let's say by the seller >> and it wasn't passed on to the buyer, um that buyer wouldn't have to worry about a rental inspection if it was a rental property. >> Correct.
>> For three years. if if it if if the property gets certificate of occupancy, a clean bill, like if if there's violations, then the new owner is going to subsequently inherit those violations. So, they will be responsible for that until that's cleaned up and
then the the time frame will start to be pushed out because it they'll then be clean. >> Okay? And if the seller does not the seller's selling the property as is, the buyer has to pick up the expense of that purchase inspection. now um which is
going to be a lot more >> that's all part of their transfer agreement I would assume you know when they ever they talk at the sales table and everything so all we know is who the seller is responsible for them and if the buyer until they're corrected if the buyer assumes the property there then
then they transfer the responsibility of those violations >> but then they don't have to worry about another rental inspection >> once they clear those violations okay so they're paying more initially >> right Thank you. >> Any further discussion?
Okay. Um just to jog my memory from last meeting that this is putting it in line with state. >> Yeah. This is state law that it's the 12 months. We we uh Bethlehem had shortened the time frame >> and we're just expanding to match the state.
>> Right. Okay. Thank you. >> Uh the clerk will call the role. Miss >> Quiet. I >> Mr. Raymond >> I >> Mr. Callahan >> nay >> Mr. Cologne. >> Hi, >> Miss Daniels. >> Hi. >> And Miss Larair,
>> I passes 61 51, sorry. Uh, okay. 8B, bill number 20226. >> An ordinance of the city of Bethlehem counties of Lehi and Northampton, Commonwealth of Pennsylvania, amending the 2026 general fund budget. Bill
number 2026 is sponsored by Mr. Aemon and Miss Quietch. Any discussion? Okay, the clerk will call the role. >> Miss Que, >> I. >> Mr. Aman, >> I. >> Mr. Callahan,
>> I. >> Mr. Cologne, >> I. >> Miss Daniels, >> I. >> And Miss Lair, >> I passes 6 8 C bill number 212026. The ordinance of the city of Bethlehem counties of Lehi and Northampton Commonwealth of Pennsylvania amending
the 2026 capital budget for non-utilities bill number 21 2026 is sponsored by Mr. Raymond and Miss Quiet. >> Any discussion? >> Clerk will call the role. >> Miss Quiet. >> I. >> Mr. Raymond
>> I. >> Mr. Callahan. I >> Mr. Colom. >> Miss Daniels. I >> and Miss Lair. I pass the 6. >> Moving [snorts] on to new ordinances. We have two for this evening. 9A bill number 202 2026.
>> An ordinance of the city of Bethlehem counties of Lehi and Northampton Commonwealth of Pennsylvania amending part 13 of the city beth of Bethlehem codified ordinances titled zoning ordinance. Bill number 22 2026 is sponsored by Mr. Aean and Miss Lair.
>> Any discussion? Okay. The clerk will call the role. >> Miss Quitec >> I. >> Mr. Aman. >> I. >> Mr. Callahan. >> Hi. >> Mr. Cologne. >> I. >> Miss. Daniels. >> Hi. >> And Miss Leairard.
>> I passes 6. >> 9B. Bill number 23 2026. An ordinance of the city of Bethlehem, counties of Lehi and Northampton, Commonwealth of Pennsylvania, amending the 2026 capital budget for non-utilities. Bill number 23, 2026 is sponsored by Mr. Aean and
Miss Leairard. >> Any discussion? >> Clerk will call the role. >> Miss Quitec. >> Mr. Aean, >> I. >> Mr. Callahan, I >> Mr. Cologne >> I, >> Miss Daniels, >> hi. >> And Miss Leairard,
>> I passes 6. On to resolutions 10A. >> Be it resolved by the council of the city of Bethlehem that the city's program year 2026 CDBG annual action plan and its home investment
partnerships program annual action plan are hereby approved for submission to HUD by the mayor along with required assurances and and certifications. Resolution is sponsored by Mr. Raymond and Miss Leairard. >> Any discussion?
Just a again word of thanks for all of our nonprofit partners and the people in our administration who work to get these dollars helping people in the community. Clerk will call the role. >> Miss Quitec. >> Mr. Aman. >> I. >> Mr. Callahan. Hi. >> Mr. Cologne.
>> Hi. >> Miss Daniels. >> Hi. >> And Miss Lair. I passes 6 10B. It resolved by the council of the city of Bethlehem that $70,672 from account number 0502-40000001
salaries engineering and $71,000 from account number 0503-4001 salaries streets totaling $141,672 be transferred to the general fund to account number 0801-42083 transfer to non-utility to provide
required matching funds for the green light go program grant resolution is sponsored by Mr. Raymond and Miss Leairard. >> Any discussion? >> Miss Lair. >> Yes. >> Um just wanted to point out this was what we discuss one of the agenda items
at the finance committee meeting. Um and the funds will uh help replace all of the LED lights in all of our signal um our our traffic signals and also um computer pieces in the controlling boxes
that are at all of the intersections as well. Thank you. Any other discussion? Okay. The clerk will call the role. >> Miss Quiet. >> I. >> Mr. Raymond. >> Hi. >> Mr. Callahan. >> Hi.
>> Mr. Cologne. >> Hi. >> Miss. Daniels. >> Hi. >> And Miss Lair. >> I passes 6 10 C. Be it resolved by the council of the city of Bethlehem that the city request an emergency solutions grant through the state department of
community and economic development. Be it further resolved that the mayor and controller are authorized to execute all agreements and documents is deemed to be necessary andor related there too. Resolution is sponsored by Mr. Aman and Miss Lair. >> Any discussion? [clears throat]
>> Clerk will call the role. >> Miss Quitec I. >> Mr. Raymond >> I >> Mr. Callahan >> I >> Mr. Cologne >> I >> Miss Daniels >> I >> and Miss Lair >> I passes 6 >> 10 D resolved by the council of the city
of Bethlehem that the city requests a grant from the Pennsylvania Department of Community and Economic Development for the rehabilitation of Stephco Swale. Be it further resolved that the mayor and controller are authorized to execute all agreements and documents as are
deemed to be necessary and or related there too. The resolution is sponsored by Mr. Aean and Miss Leairard. >> Any discussion? >> Yes. Thank you. Um, Miss Collins, would it be you or would it be Mr. Alol? Mr. Alcall, I just had a quick question.
Sure. >> So, um I'm just wondering if the Stefco swale, if this kind of works well with the next item, the the multimodal and the the work on Stefco Boulevard. Is it
is the Stefco swale actually >> on Stefco Boulevard? >> I mean, other than it serves drainage that comes from StephCo Boulevard. Okay. >> But they're independent projects. >> Okay. I just wasn't sure if you know if there was going to be a coordination of
effort if the two are funded or if there's no need for that or Okay. >> All right. Thank you. That was it. >> Any other discussion clerk will call the role? >> Miss Quiet. >> I miss >> I.
>> Mr. Callahan. >> I. >> Mr. Cologne. >> Hi. >> Miss Daniels. >> Hi. >> Miss Lair. I passes 6 10E >> be resolved by the council of the city of Bethlehem that the city requests a grant from the Pennsylvania Department
of Community and Economic Development to be used for construction in alignment with the complete streets plan on Stephco Boulevard. Be it further resolved that the mayor and controller are authorized to execute all agreements and documents as are deemed to be necessary and or related there too. The
resolution is sponsored by Mr. Aean and Miss Leairard. >> Any discussion? Clerk will call the role. >> Miss Quiet. >> I. >> Mr. Aean. >> I Mr. >> Callahan. >> I. >> Mr. Cologne. >> Hi. >> Miss. Daniels. >> Hi. >> Miss Lair.
>> I. Passes 6 >> 10F. It resolved by the council of the city of Bethlehem that the mayor and controller and/or such other city officials as deemed appropriate by the city solicitor are hereby authorized to execute a use permit agreement with Arts Quest for Countryfest. The resolution is
sponsored by Mr. Aean and Miss Lair. >> Any discussion? >> Okay, the clerk will call the role. >> Miss Quiet, >> I. >> Mr. Raymond, >> I call. >> Mr. Cologne, >> hi. Miss Daniels >> I >> and Miss Lair
>> I passes 6 >> 10g be it resolved by the council of the city of Bethlehem that the mayor and controller and/or such other city officials is deemed appropriate by the city solicitor are hereby authorized to execute a use permit agreement with the
Bradberry Sullivan LGBT community center and subperity arts quest for 2026 Lehigh Valley Pride resolution sponsored by Mr. Aman and Miss Leairard. >> Any discussion? >> Yes.
>> I'm I'm sorry that our our commenter is she left before we get to vote on this. I'm obviously I'm a yes on it. I um unfortunately not going to be here, but fortunately going to be with my incredible daughter in Seattle. Um so we'll celebrate um our own pride out
there this year. That's all. Any other discussion? Okay, the clerk will call the role. >> Miss Quiet, >> I. >> Mr. Aean, >> I call I. >> Mr. Cologne, >> hi. >> Miss Daniels, >> hi.
>> And Miss Lair, >> I passed a 6. I'll accept a motion and a second to consider resolutions 10H through 10J the COAs as a group. >> Make the motions. >> Second. >> Second that.
>> Gator. >> Uh, all right. Is there any discussion on the motion? >> Clerk will call the role on the motion. >> Miss Cleuite >> I. >> Mr. Aemon >> I. >> Mr. Callahan. >> I. >> Mr. Cologne.
>> I. >> Miss. Daniels. >> I. >> And Miss Lair. >> I. The motion passes 6. Uh, the clerk will read the resolutions and call the role. >> Certificates of appropriateness under the provisions of the act of the Pennsylvania Legislature. Bethlehem
resolution are hereby granted for 10H 443 Center Street to replace existing blue stone and side and slate sidewalk in front of the home that is deteriorating with brushed concrete while maintaining the brick border alongside the sidewalk closest to the
fence and installed installing landscape lighting at the rear of the patio 10 I for 446 Main Street to install a new 16t wide by six by two foot high aluminum sign for the existing plywood backer for
Main Street Real Estate Group and vinyl film window decals for Main Street Real Estate Group and the Gallery and Fine Arts Store. And for 10J at 55 East Church Street to replace the existing 7 foot high vertical cedar wood
slat and lattice fence with the six foot high vertical cedar wood slat fence. Resolutions are sponsored by Mr. Aean and Miss Leer. >> Any discussion on the group. >> Clerk will call the role. >> Miss Quiet.
>> I. >> Mr. Aean. >> I. >> Mr. Callahan. >> I. >> Mr. Cologne. >> I. >> Miss. Daniels. >> I. >> And Miss Leairard. >> I. The resolutions pass 6. >> With that, our meeting is adjourned. Get
home safe. B. Part: 2
We're live. >> We are recording. >> Good evening everyone. I will call to order the meeting of the Betham City Council Finance Committee. My name is Michael Cologne, chair of the finance committee. The other committee members are
Justin Aean and Hillary. Mr. Miller, please call the role. >> Mr. Cologne, >> present. >> Mr. Aean, >> present. >> And Miss Quiet, >> present. >> Thank you, Mr. Miller. We don't have any other council members with us at the
moment. I'll acknowledge anyone else who joins us. There are three agenda items for tonight's meeting. Number one is a proposal for restructuring of existing general fund debt. Second is a proposed ordinance involving a budget adjustment involving the capital budget for
non-utilities. And lastly, we'll go over a proposed resolution involving a proposed transfer within the general fund to provide matching grant funds. I'll accept public comment at the top. I don't believe there would be any. Public comment is
concluded. Moving on to agenda item number one, the proposal to restructure existing general fund debt. I'll open it up with Mr. Evans and anyone else who's going to present and then I'll open it up to committee members for comments. Thank you, Chairman Cologne. I have a
statement I'm going to going to read to explain what we're doing here tonight. And as you can see, Scott Sher from PFM is with us and he'll be able to walk through the attached packet that's available on the website and copy available from
members of council tonight. And then in conclusion, if you would turn back to me, I'd like to just make a couple points on why we feel it's important that 20 summer of 2026 is a time to be doing this versus the past years we've been
together with Liskott 25 and 24 23 22 and to talk about it and really get a feeling of when when would it make the most sense for if at all when would it be best for the city of Bethlehem to
restructure its existing debt. For decades, the city of Bethlehem has borrowed5 to7 million every other year in order to fund capital expenditures. In addition, several supplementary borrowings were incurred for a host of other reasons. As a result of
borrowings, the city's total debt climbed to 171 million by the year 2015. Since that high water mark, the city has not needed to borrow for any reason outside the planned by annual capital borrowings in 2015 on 2017 and in 2019.
The city has not borrowed for general fund purposes since 2019. Due to the pandemic, the budget hearings in the fall of 2020 carried great uncertainty and the city deferred 2021 capital investment decisions for a year.
In 2022, the city used reimbursement from the lost revenue provision of ARPA to invest $9.3 million into capital needs which covered 22 and 23. That same step was taken in 2024 which covered 2024 and 2025.
In 2026, the city allocated $22 million to fund capital needs for four years, which is 2026 through 2029, by using 10.7 million from the C capital reserve account that was established in 2021, and built by setting aside extraordinary
revenues and 11.3 million from cash reserves, which had grown incrementally through small annual budget surpluses over the last 12 years. So from that high watermark of $171 million in 2025, the city's now reduced total debt to $77
million in 2026, a reduction of $94 million. The reduction of debt has improved the city's financial position and we're now interested in restructuring the remaining debt. Our capital plan is funded for the next four years, so there's no request for additional
funding at this time. Rather, the request is to smooth the remaining annual debt service with step downs in order to improve the city's financial flexibility and make the balance balancing the budget process uh more
sustainable in upcoming years. So, having said that, I'll turn to Mr. Sheer for the presentation of the proposed restructure. >> Thank you. Great summary. >> Mr. Sure. If you don't just mind introducing yourself to anyone present or watching who may not be familiar with
who you are. >> Scott Sheer with public financial management or PFM financial advisors been working with the city now for it's about a decade or so um when it comes to the the debt issuances and things along those lines. So good to be back before you this evening. It's been a little bit. So I will be reviewing the handout
that I believe you all have in front of you that looks like this. >> So again, that was a great great summary of the city's outstanding debt. Maybe before we kind of get into the nuts and bolts of the restructuring plan, I would kind of like to start out with sort of the state of the market if you will. And that's on page two of the handout. So we
have a couple different charts on here, but we'll focus on the middle one and the bottom one. The short story is whether you look at say the past year or two or whether you go back 20 plus years, we're basically at historical average, maybe just a little bit um a little bit better in some cases than
historical average. And that's what the bottom chart on page two just goes back to early 2025. And this is a 10-year municipal index. So, it's not exactly where the city would be pricing, but it's a good proxy that we follow for our municipal clients
um to just kind of gauge where interest rates have been. So, again, the bottom chart, it's good back to January 25, and it shows that the current rate for that index is a 3.02 and the average has been about a 2.97. So, again, pretty close to historical averages. And then the one above that there in the middle again
same index 10-year index um again we use as proxy for all of our musical clients and this one goes back now to the early 90s and you see again that rates a 302 and the average has been you know about a 3.2 so a little bit less than the long-term historical average. So, from
the perspective of looking at potentially restructuring a portion, not all of the cities outstanding debt, but just kind of a small portion. We're, you know, at good uh good good rates. Now, as you're probably watching with maybe some of your own investments or if you're looking to refinance mortgages,
markets are fairly volatile with everything going on internationally. So, you know, we see fluctuations on a day-to-day basis, but at the moment, we don't see anything that will sustain any kind of rate increase. We're just, I think, going to keep seeing the ups and
downs depending on what happens uh, you know, on the day-to-day basis. So, that's kind of stay on market. On page three, we kind of get into the proposed financing plan. And Mr. start of mentioned in point number one we've been looking at this now for quite a few years planning
seeing when the right timing is uh and looking to improve the financial flexibility in the future years so then in point number two what we're targeting are four of the outstanding issues that pertain to the city's general fund debt I kind of look to look at that you have
general fund debt you have some sewer debt you have some water debt um but as we heard there's not been a general fund borrowing if you will since 2019. It's been you know quite some time. So those are the four issues that we're looking at. They're in point number two. It's a
series A of 2017, series B of 2017, series E of 2017, and the series of 2019. So we're looking to restructure the most efficient ones um you know that that we can. And again, what this will do in 2A is it achieves the city debt
service objectives basically for the next 10 years from 2027 out through 2037. Um, now there's still a fair amount of work we need to do with the city bond council to just make sure we're all within the kind of four corners of of of
the different legal documents when it comes time to look at the useful life and other IRS tests that we do. But we should be actually fine. Those are some of the next steps we're going to embark on. Um, you know, as we move forward here. The other thing just to kind of keep the process moving and again, Mr.
We'll talk about timing. Um, is we have already sent out underwriter RFPs. So, just like in the past, uh, we bid out any kind of financing that the city does to make sure you're getting the best overall rate. Um, and we're we get those results back here in a week or two so
that if we do continue to move this forward, we'll be able to share the results with you at the I believe it's August 4th meeting. We have the timeline in here. So again, it's nonbinding. Um, it just gives us that indication of where the rates will be for your proposed transaction.
Uh and since the city has not done uh a forum for quite some time, basically the key thing that we need to do and we'll talk about it a little bit more in the timeline there before the end of this presentation is you will need to consider and then ultimately adopt a parameters ordinance. And that's the
thick legal document that your bond council review and your solicitors will review. Um that kind of has all the legal information in there. But that that point commits the city to move forward with the refinancing and the restructuring. And you'll see we call it
a parameters ordinance because there's going to be I'll say higher than what you're going to get interest rates. There's going to be a higher dollar amount in there. It's what I would say now basically 99% of the issuers do in Pennsylvania. They do this parameters ordinance as opposed to what I'll call a
traditional ordinance. What that means is if we were to do what I'll call the traditional ordinance, we would have to come to you the day of your board meeting and actually price the bonds that day. So board only meets once a month or twice a month. We have to be in
the market that day. The parameters ordinance gives the team more flexibility that we can price the bonds a week after you have your meeting or two weeks or three weeks or you know even even the you know the next day but we don't have to coincide with just one
or two days per month hit the market when we think that you know makes the most sense. We're not we can't time the market but we do know when there's some bad times to stay out. So again it just gives us that flexibility. uh and we'll talk more about it as the meetings continue. Uh but that's you'll hear more
of the terminology and the parameters ordinance that ultimately will need to be voted on as you want to move forward. The next page, this this is not all of the city debt. This is just the general fund debt that we're seeing on this page. Um and you can see over in the far
right hand side in column N goes out to it shows geo bond series 2019. Again, we heard that's the last time that the city had borrowed for its general fund. The four columns that we have highlighted in yellow, those are the ones that we're
targeting for the restructuring. So, it's columns four through seven, the 2017 A's, B's, and E, and 2019. And you can see if you just kind of go down to yellow a little bit to where it says call date. And the call date is
June 1, 2025. Another one, June 1, 2025. 12125 and 5124. So those again are the efficient ones to be restructuring because we're actually past their calling. Um so again, it makes makes things just a little bit easier, a little bit more efficient uh when it
comes time to uh retiring the portion of the bond that we're going to be potentially restructuring. So again, this just gives you that idea of what we're looking at when it comes time, you know, when when we're looking at it holistically with all the city's general fund. Next page is probably the most
important. So this now puts basically everything in perspective. So at the top of page five in that kind of first box where it says settlement October of 2026, that's when we're assuming the transaction closed. We're looking to issue about $1.7 million.
And then um you can see in a couple boxes below there for each one of the bond issues that we're restructuring, how much we're restructuring and how much it remaining. So for instance, the 20178 right below there it says the restructured par amount we're restructuring about 8.6 million and so
there's about 435,000 left. So that we're restructuring the majority. The 2017B's we're showing we're structuring about 1.1 million and what's left is about 2.5 million. For the 2017 E we're
restructuring about 1.7 million and what's remaining is about 5 million. And then for the 2019 bonds, we're restructuring a little over half a million and what's left is about 2.88 million. So again, we're not restructuring all of those. We're trying to keep it as efficient as possible. And
so then what this mean from a budget perspective, if you go down just a little bit further to column three where it says the existing general fund debt service. So and right now there's a couple years in the $10 million handle, then it drops down to 9.3 so forth until
2035 where the debt disappears. So now um if you look in column seven after we do this 11.7 million dollar structuring now column seven is what the new debt service would look like. So now in
column seven you see 2027 now you'd be paying about 9.4 million year after that about 8.9 million and about 7.9 million so on and so forth. And to the right, column A, that's what the city's uh administration objective was to try to
hit those bogeies. So, we're coming in, you know, extremely close to to what the the bogeies are. Um, we'll try to fine-tune the last year a little bit, but that's something you can pick up in later years as well, but that gives you an idea. Column three is what the current general fund debt is, and then
column seven is what it will be with estimated rates right now after the transaction is complete. Another way to look at it is in the bar chart below where the black dotted line is the existing net service for each of the
respective years and then the bars and basically what it's going to look like after the transaction. So that white space between the bars and the blacked out line that's sort of freed up capacity that that we're showing here.
Um, whenever you do do a debt restructuring, because we are kind of taking some of the short-term debt and pushing it out a little bit, there does it does come at a cost. So, what we're showing at the bottom of column six or the present value cost of about $800,000
and that cost again is from the interest rate perspective. That does not factor in, I'll say, some of the other benefits that the city may be utilizing that free cash flow for. So that's just the present value cost of doing this doing this restructuring but again provide
additional cash flow relief um that the city could use for other purposes. And then lastly on uh page six is the tenative timeline. So here we are uh this evening for the
initial presentation. Uh what we'll be doing then is starting to draft some of the financial documents and legal documents. start chatting with the rating agency. August 4th, we should be come back for the first reading of the parameters ordinance. Early August
would be a call with Standard Porters, the agency that rates the city. Uh August 18th would be the second reading of the parameters ordinance. We would receive the credit rating shortly thereafter, finalize all the documents, and then probably price sometime maybe a
little bit after Labor Day so that we can then close mid October. So before I turn it back over to Mr. Evans on sort of why the timing of all this happy to answer any questions that you may have with the numbers or the concepts
>> I'm going to let Mr. Evans wrap it up and then I'll open it up to questions for you or Mr. >> Thank you chairman. I would just ask the committee to they can turn back to page four of the presentation my comments. So most
of them will be illustrated on page four. As I said, we've been contemplating this plan for several years. We've been publicly vocal about it during financial reports and especially during the budget hearings. I know I have some
several slides on talking about the opportunity last fall. Uh while we're waiting for the most appropriate time to execute, we feel right now is the right time for several reasons. and referring to page four. Number one, there's significant debt that's now callable.
It's eligible re eligible for refinance. A couple years ago, that wasn't the case as Mr. Sherry Clare. Number two, interest rates have dropped since that 23 24 25 period. They're at favorable. They're not a perfect terms, but they are they are favorable.
Number three, the current structure of a debt service, which is what I call tabletop. It's flat. It has been flat. We've been chopping it off at 11 or $10.8 million from number of years in a row followed by steep drop offs. If you look in into the year
2033 and we're paying 108 108 then it drops from eight than then down to five. There's a $3 million drop. And while someone waiting in 2033, that's going to be wonderful for budgeting purposes. I think it's much more efficient to have a a small or incremental drop each year
and have it spread out through time than versus having to work and and make ends and then have a $3 million um some eight years out followed by another flat year. So, uh this would make it much more flexible and efficient for budgeting.
Um fourth, there's a piece of debt. It's actually in column number two. a general obligation bond series B 2013. There's a payment of $879,000 that's being made this year in 2026.
That represents 1998 landfill debt that was refinanced in 2013. >> Mr. Could you just say again where are we looking? >> Uh column >> on page four. >> Yep. There's a remaining payment in that see
the bond of 2013 880 last payment and that represents landfill debt and under term set 28 years ago the sewer fund has and is paying for half of that. When you think about I don't have it in front of me, but uh on page maybe three
or four of our budget book, we have $400,000 of revenue that show up as revenue from a transfer from the sore fund that pays half of this landfill debt. Next year when this is gone, that we're not going
to take that transfer. That's good for the sewer fund. It's 4,000 more for them. This debt will be gone. But if you look to the far column on the same page, column 10, you'll see next year our debt service does not change. It remains at 10.8. So the way our debt service is
structured, we lose $400,000 to the general fund in terms of a revenue source, but our debt service hasn't dropped. So what's happened is it's creating a $400,000 structural deficit in essence in the
general fund. So if that fund go that debt goes away, the transfer goes away. Ideally, the debt service should have dropped that amount, but it does not. So we do that's not while we're doing this, but I think it's another incentive that
this would be a good year to do that. And number five, I'll point out that this is not a one-year stop gap. It's not a refinance that gives us some instant relief only in 2027 and then goes away. The way it's structured and
in this case I'll point you to page 12 to our city objective is to give us incremental relief from 2728 all the way out till 2037. You'll see there's continued it doesn't stay flat but it delivers dropdowns
each year which will give this and future administrations the ability to absorb other costs. There will be future debt needs. there will be borrowings at some point uh in the future for whatever the
purposes may be that would will be brought to city council at that time. But that's that's the intent of column 8 on page five. So for those reasons we think it's uh this is a good proposal. For these
reasons we think this time is the right time to execute on the proposal. That's my comments. Thank you. Thank you, Mr. Evans. Thank you, Mr. Shear. Before I open up to council, I will recognize our controller, Mr. Yaso, is here. Is there anything you want to share? Mr. Yo,
>> I spoke to Mr. >> Thank you, sir. So, I'll open up to our committee members. Councilwoman Quitech, I'll start with you. >> Thank you. Thanks so much for your presentation and um keeping in mind that um most of us are layman when it comes
to this stuff so forgive me. Um but if we look at page five and we're looking at the um columns that you were drawing our attention to three and seven um and then you know you took us down to this bottom line PV savings/cost and said
that ultimately the the net cost of this is $811,000. Um I guess um um I that confuses me because there's
like $4 million more in the estimated overall debt service in column 7 than there is in the existing debt service. Um so by by um restructuring and pulling this out over a longer period of time,
it looks like it's more than $811,000. So if you could just explain that to me in layman's terms. >> No, you bet. Good question. >> Um, so so you read it absolutely correctly. So maybe if we look at column six, >> so column six is the estimated net
service savings kind of per per year either savings or cost. So you see in column six that for a bunch of the years um there are savings that we're decreasing the debt significantly in those years and then in those out years there's an increase because we're
pushing some of that shorter term debt out longer term. Now it's still very prudent because we're only pushing out all total out to 2036 at the last date. Um but we are in fact still pushing some shorter term debt that was going to mature in the long term. So then the total in column six is you know close to
that number you mentioned is 3.9 million. So that's the I'll say the future debt service impact but then when you use typically kind of the the financial world that we're in we look at things on a present value basis basically taking that $4 million over
time and present valuing that back to today's dollars and that's what equates to the 811,000. So to your point, it is good to look at both both on a future value and a present value number. My point was that I just want to make sure everyone was
clear that by doing this you are definitely getting cash flow relief and start point out it's a nice step down easily manageable. Um so there's cash flow relief, there's the step down that's prudent, but there is still a cost overall cost to doing that. So I
just wanted to you know make sure that I said that that it was clear and it was understood. But again, we look at it from a future value basis, which is that $4 million number and the present value basis as well. Again, that's just taking future dollars and putting it more into today's dollar amounts, if you will.
>> Okay. Um, and this is this is the total debt service. This is not just the ones that we're restructuring. So we are looking at the the full picture >> full picture >> because when you look at those last three years it is only this restructured debt because of course we were going to
be debtree by that point theoretically although we probably have to borrow again. Okay. Um I I guess I was surprised when you say present value. So we're saying 10 years from now $811,000 will really be almost $4 million in terms of like when you say present
value. >> Yeah. afford the it's4 million over time but when you present value that back to today we put in today's dollar equivalent to about $800,000 >> regardless it's still cost >> right I guess it just seems like a big
increase over 10 years in terms of um >> o overall point I'll take it I say overall this is so you know we work on a very large amount of transaction state across the From a debt restructuring
standpoint, I would say this is probably one of the most efficient ones that we're doing just because of the short nature of it. Um is keeping that cost down to what I'll call >> and and I mean for what it's worth, you
know, the the debt service will be half almost more than half of what it is right now at that point. So it's it's still um a much lower debt service. Yeah. >> Then but not lower than zero obviously. >> Yeah. I would say so whenever we talk to
a client having discussions about debt restructuring, you know, we we don't look at it in a vacuum or silo. We kind of look at sort of what's going on holistically and kind of looking at the past of the city as well. The city has a has a very good credit rate. Um and
that's been brought upon by good fiscal discipline over the years. Um and so that's where you know I'm extremely comfortable with this kind of transaction just given sort of again the fiscal discipline that the city has shown you know say for the past handful
of years uh and paying down the debt Mr. Evans talked about early on going from or 175 million to about 77 million huge decrease in amount of outstanding debt. Um, so that's where in all the discussions we've been having and the scenarios we've been running, none of
those ever be me pause because of the the good financial position that the city is in. We have seen, like I said, other cases um where the numbers are much more magnified and the credit rating is much lower. That can cause some concern, but here completely
different picture. And your your mention of the um credit rating is led me to my one of my other questions which is we are in a very good position from a credit rating standpoint. So you feel comfortable that we'll be in that range in terms of our the interest rate that
we are able to lock in and >> yeah I mean as far as the credit rating itself we're going to have to go through the process and I don't at a high level I don't foresee any changes in the rating but I do know that this transaction on its own will not impact
the credit rating in a negative way. They're going to look at a lot things related to the city, but everything that I've seen and heard and read, city's in kind of very good shape. So again, we expect a very similar rating, which then coincide with similar interest rates
that we're showing that we have in the models that feed into the summary. >> Excellent. Um, so what we're looking at here will be lower annual payments, um, but not a lower total financing cost, right? Right. That's a fair way to put it.
>> Bottom line. Okay. Um, so that gives us budget flexibility and that's kind of what we're shooting for on this. >> Great. >> Okay. >> Thank you very much. >> Thank you, Councilwoman. Any other questions from the committee?
>> None for me. Thank you, Councilman. >> Thank you, Mr. Aman. So, just a couple quick questions. At the top of page five, you had already gone over. We're not restructuring each of these uh in their entirety. There's the restructured amount and then the remaining. Can you
just give us some insight as to what what goes into the process to decide how much to restructure and how much to remain? >> It's to kind of twofold. It's what the interest rates are that we're refunding. You know, are are we going from a higher rate to a lower rate or is it from a
existing rate to higher rate? So that factors into it, but then it's also what do we need to restructure to achieve the city's objectives. So if you go back staying on page five and looking at column eight, that was basically the city administration's objective that
kind of hit those votings in each one of those years. So that was kind of one of our other targets of of you know how much do we need to restructure of those other bond issues to kind of hit that target. And so the good thing about leaving
those other bond issues, the rest of the bond issues outstanding is if rates would happen to drop six months from now, two years from now, we could go back and refinance the the remaining part of those four issues and maybe achieve savings, not cost, but a saving
at that point. So we want to keep the transaction size to a minimum. Um it just does the city no good to refund all them now do a bigger deal in present value cost and future value cost just be greater. So we keep it to a minimum
what's needed to achieve the overall city's objective and then leave that flexibility and optionality to hopefully achieve savings later in the future condition. >> Understood. Thank you. And and then I know these are all just estimates
until you go out for pricing, but we're confident in coming relatively close to these. >> And if we see anything changing, I said I'll be back on August 4th for an update. Um, keep your administration up to date if we see anything changing deviates from this, you know, significantly, but I don't.
>> Thank you. And then just two questions for Mr. Evans. Mr. Evans, you said we haven't gone out to borrow since 2019. in your current models and forecasting. Obviously, this is to control some of what our annual debt service is.
How long I'm trying to ask this in a way because I don't want to put you on hold anything. Do we have any anticipated borrowing currently? Eventually, the city's going to have to borrow money again. I think it's fair to say at some point in the next my lifetime's
probably gonna have to. Yeah. But I'm just trying to as we look at what we're saving, I'm just trying to and if it's uncertain, that's a fair answer. I'm just trying as we talk about refinancing debt, do we know how long we can hold off on taking on new debt and new money?
>> Uncertain is the word for that. There's nothing certain at this time that's lined up in prop. But as initiatives and plans evolve, you we of course will come to council as quickly as soon as we would ahead of time to let you know. But I think what this sets you up for the
step down model because I I've been around for refinancing that took place with Mr. Sher and even a little before that when there might be a restructure that saved money for the next year and that was kind kind of like a trampoline effect. save 17 comes right back to where it was
and stays even which we we could do that you know and have maybe less of that present value cost to it but I think the fle purchasing some flexibility to our balance sheet by having that drop down that gives space for whether it be increasing health care costs whether it be you know future debt issuances which
will be there because what you know we also have to remember what what's happened the past couple of rounds has been unprecedented as far as we can go back to know has not barred it's always been every other There's a testimony for 30 years worth right to my >> right side as far as you go back there's
been and some in between that not just a by annual for capital purchases but other things that come up along the way we've had two or three two two to refill a pension um MMOs or to lower pension MMOs we've added um I think it was back to eight
there was yeah there's a lawsuit settlement there was one in 2012 that was to pay off you there $20 million in acred expenses that happened after the housing crisis that had to be squared up. So those come along that you know
from time to time that weren't really predictable from those administrations as as time moves on. But I I think doing this gives us the flexibility to meet any or all of not all of those I guess all of those challenges that remain in front of us. Some we may not be aware.
>> Thank you. And I think one thing worth mentioning, it's already been discussed, it was alluded to to open, Mr. Evans, that our at a high the city's debt was about 171 million >> and currently it's at about 77.7.
Correct. So I just think that's for the record, anyone watching, we've come a long way from 171 to currently 77.7. And to Councilwoman Quitec's point and Mr. Shar's answers. Yes, this kind of this raises that because we're stretching it out, but a dollar today is
always worth more than a dollar tomorrow. So, it's not necessarily fair to say, okay, I'm looking at a bigger number so many years down the road as we as we equate that. But still to go from 171 in yesterday's dollars to 77.7
today, that's a big deal. So, I just think that's worth mentioning. The last point I want to make, we're not the committee's not voting on anything as it relates to this tonight. There will be a communication coming out. Mr. Evans, correct me if I misspe. So, there'll be
a communication coming out for the next agenda for the parameters ordinance. >> Correct, Mr. Chair? >> Yes. >> Yeah. Yeah. The plan is to work to develop the parameters ordinance. So, there will be a vote requested at the council meetings of the 4th and the 18th
of August. for the first and second reading of the ordinance but for the purposes of the committee I just we're not voting on anything tonight >> nothing voted tonight and Mr. as Mr. Shar noted he'll also be back when the full council. So those that could not make it tonight >> to the finance committee if there are
any additional questions that are are spin-offs that still need to be answered he will be here as well. >> I guess a question I have that can be answered now or when we get to first reading. So in the parameters ordinance what's sort of the the I know you're
looking for that sweet spot to to put it in plain English. What's the latest you could go before you refinance? >> Well, I think we would like to do it. We we want to try to stick fairly close to this timeline because I think the goal
is to try to get that no number for the debt service for next year when it comes time for the budget discussions. So, could we go a little bit later? We could, but I think ideally we would like to have things wrapped up according to this timeline so that it's known for the budget presentations that are occurring.
>> Yeah. when we build that budget which is mid-occtober late we really have to start balancing it we need a firm number that's talked to Scott about timing backed into it so we sit here before you tonight is that if the pricing and everything go they go to market and we come back and we have a number locked in that we can put in that number exact one
so we are officially balance that budget time we're not a couple hundred thousand is a big difference and we want to make sure we hit that mark >> we have a little flexibility in here because we're showing pricing say midepptember so when we price the bond That's when we lock in the rates so that at that point we know what the debt
service is going to be but the transaction does not close until about a month after that because everything need to be filed with the state they need to approve and everything else. So the kind of the critical date I think for the administration standpoint from a budget perspective is when we price the bond lock in the rates. So we, you know, we
have maybe a month of cushion or so in there. Um, and typically the after Labor Day, the investors are back in action. Things get a little bit slower in the summertime from the standpoint of selling mutual bonds. And then like I said, around Labor Day or shortly thereafter, you see things pick back up
again. So assuming there's no major international crises out there, we would expect it to be. >> It's quite the assumption. It's it's quite disappointing, but you know, again, we'll just keep you up to date as we get closer to that time. >> Thank you, Mr. Chair, for your time. You're welcome. >> If there's no other questions from
council, we'll move on to agenda item two. Again, that was just for presentation. We're not voting on anything. So, we'll move on to agenda item number two. Now, what we could do, I see Mr. Alcohol here, Mr. Alol, Mr. Evans, Mr. Sar, if we just want to
because they're both related to the green light go program, the ordinance and the resolution. Correct. >> Yes. >> Do you just want to go over both of them together and then council will open up to questions for two and three together? Sure. >> Mr. Alcohol. >> Well, after the 2026 budget was
prepared, uh we were successful in acquiring two uh two grants under the green light go program. Um, one grant was to replace all the modules, essentially display the LED lights on
all our traffic signals, all 128 traffic signals in in the city. Uh, we had upgraded those 15 years ago and now they're in need of replacing. And the other grant was to replace the components or the computer systems in
all the controllers which are the cabinets that sit at the corner of each of those intersections that essentially operate the signals and are programmed for the phasing to manage traffic. The total project cost is
708,000 and change of which 20% is a required match. uh from the city. Uh so item two is to establish the line item uh in the 2026 budget identifying all the where all the
money is coming from essentially the two grants and some money from the city to match the grant. And item three is to transfer the funds from where we're getting the match, which is from savings
that have been realized in the Bureau of Streets and Engineering as a result of vacancies around about 141,000. That's what makes up the total project. >> Thank you, Mr. Alcohol. I'll open it up
to the committee for any questions about agenda items two or three. None from counciloman quuite. None from councilman aan. I just want to restate. You said it's a 20% match from the city. Correct. So 80% of the total project is paid for with grant funds.
>> Exactly. >> Thank you, Mr. Alcohol. I will accept a motion. I I'll start with agenda item two, the capital budget for non-utilities adjustment for the green light go program ordinance. I'll accept a motion and a second to move that on to council.
So move second. >> Motion by Counciloman Quitech. Second by Councilwoman, excuse me, Councilman Aean. Apologies. Please call the role on the motion. Mr. Miller. >> Mr. Raymond. >> I. >> Miss Quitech. >> I. >> And Mr. Cologne.
>> I. Motion passes 30. I also ask for a motion followed by a second to move general fund budget transfer green light go program resolution to full counsel. >> So moved. Second >> motion by Mr. Aean, second by Councilwoman Quuitech. Mr. Miller, call
the role. >> Mr. Aman, >> I. >> Miss Quiet, >> I. >> Mr. Cologne, >> I. That also passes. 30. Those pieces of legislation will be placed on tonight's council agenda. That concludes our finance committee meeting. Mr. Miller,
did you want Mr. Evans, excuse me, did you want to share something? >> I I had a midyear report that was delivered. Can I run through that quickly? >> Yeah. Yeah. So the so what we voted on will go on tonight's council agenda and we have some time
we got time limit delivered ultimatum delivered by Mr. alcohol. So, we'll get it done. I'll move this through and of course take questions at any time either at the end of my report or after or by at by full counsel tonight. Uh on on page one
is an update on our revenues. We we looked at the ones that are the most um I guess our our largest leading indicators with regard to revenue. So at the top lit up in the blue right now for all three slides one, two, and three are the same. But I light up blue
and look at what I say large and consistent revenue streams. Our largest by far revenue stream for the city is real estate taxes. And you'll notice in the first column is last year at this time we had $33 million. Most of the taxes are collected either at discount
or or there some small amount through installments which are also well underway. So you can see in light blue we've collected 96.7% of of the total. The budget was 34.8. This year we collected 33.7 million. Uh
that the budget was a little higher. So last year we collected 97% this year at 96 and a half%. So that's why I say it's large but it's also very consistent in the way it arrives into the coffers. Host fee is another large but consistent revenue stream. We get quarterly
payments. We had 4.9 last year at this time. I'm circling it now. Uh to the right. This year we have 4.93. So we're at 49.8% last year and 49% 49.8% this year. It doesn't grow, but it's
it's a consistent arrival. Yeah. In the center, the next page are the act 511 revenues. That's earned income tax transfer. They're tax collected when houses uh LST local service tax and merkant
you'll see it EIT is at 6.5 last year. This year it's 6.6. It's up a little bit. Uh for several years it was moving up at a much higher percentage. Still increasing but not at the same percentage it once was. Last year's budget was 119. This year we moved it up
to 125. So we did increase it by $600,000. Last year we were at 55% of the budget. This year we're up 100,000. Uh it's 53%. So at the midpoint we're over halfway there in arrival. And this is a cyclical comes pretty steady throughout the year.
So we're in good shape for the 2026 budget in EIT which is as you can see one of our larger revenue items. Defer is one that is a little slow. One of the reasons is we have two counties, Northampton, Lehi County and the city of Bethlehem. Northampton is a month uh
behind delayed in in receipts. So if another month is added, this might jump to 850 or nine. I would point out it is lower than last year. Last year we had 1.1 by this time this year once that payment which will arrive and we'll start to catch up on that. That's just a
timing issue, but it'll still be below 50%. So we're going to watch this one closely. We did move it up from last year from 19 to two. So, that one's uh a smaller line item. That's only I say only, but it's $2 million compared to the 12 or the 33. But there still may be
an impact on the revenue side. LSD was 9.95. Last year, it's 9.88. So, it's it's strikingly close to what it was last year. It's 53% of the budget last year. It's 51% year-to date at the six-month interval because our budget we
did move it up $50,000, but we feel we'll make budget on that. And then one that is uh the last one act 511 mercantile was 3.2 last year which is 99. This has not come in all throughout the year. It's a heavy
by May we have almost all of us. You can see we had three two we at 98% budget last year and this year at three at 91% we're at 3 million out of a 3.4. You'll see from 3.2 we'd eventually
reach 3.7. So another 532 came in by midyear. Another 500,000 was gained by the end of the year. So if we could assume we'll collect again around 500,000. This will put us at 36 which will be over the budget of 3.4.
Other revenues uh EMS is a large one at 2.1. This year it's just a little over that. So last year we're 54% of the budget at 39. We increased to $300,000. So it's uh right right around 50% of the budget we feel will meet EMS and
interest investment last one to highlight last year's $900,000 interest rates have lowered. So our revenue of interest investment 900 last year is at 700. A good thing about this line item is we knew interest rates were on the
downward move. So last year the budget was 11. If you remember at budget time we lowered it, which is a painful thing to do, but we we lowered the budgeted revenue down to 750. So we're at 698 and we will be able to make budget rather comfortably and make up for any
shortfall in in D transfer or or even the mercantile area. So overall revenues are good, real estate steadies are steady, EIT is is fine, the transfer is a little light, but investment interest is is strong. Other
expenses of note, salaries are by far our largest. Let me talk about expenses at $44 million. They are calculated at the beginning of the year and savings. We don't go over in salaries. The main thing is can be lower because when seats are empty, when people resign or terminate for any reason, the seat is
empty till it's filled. During that time, uh those salaries sit still and salary savings will occur. So we always have vacancies throughout the year whether it be the police, fire, public works, uh community development that occurred into the hundreds of thousands. It's not by design but it's through um
actual functionality. So that's something that uh will continue to grow throughout the year. Uh the other large expenses we have of pensions which is 13.3 between police, fire and PMRS 13.3 million and debt at 10.9. Although
although they are very large at 25% of the overall budget, they are set and they're known. We know what the debt will be. We're paying it and those MMOs will be paid in the coming months and those are also set. So there really can't be surprises there. Small accounts but ones we're watching. We talked a couple months ago, Mr. Colin, you
brought up the idea of the question of gasoline. Last year was 249,000. This year we're are up 50,000 to 290. We're still at 47% of the budget. So although it's increased, the budget was moved up accordingly and we should be okay with regard to the budget. Gasoline electric
is running a little bit higher. Last year at 315 and just might much like you might see your PPL bills at home, I know I do. uh they do increase and last year at 315 this year at at at the midpoint was 41 or 65%.
Uh our medical and workman's compensation are both running uh very hot for the first half of the year. I'll turn to the next slide and explain. This is our medical spend on page five from 2020 to 2025.
You'll see an interesting dynamic as it grew from 20 coming out of COVID like most expenses and activity grew to 2021. People started going out and having appointments and surgeries and hospital visits again. In 22 grew to 14. This was all expected. The nice surprise was in
2023 when we really moved back to $12 million. You don't see medical going down much, but we are self-insured as we've often talked about. We do have stop-loss insurance. If there's an individual that hits a a a limit of $245,000, we have insurance that covers
that. So, we're not ex exposed more than 245 to any individual. So, in 2023, it held that 12 million. At 2024, it stayed flat again. In 2025, we saw a small increase. This next page on page six is what we've
been budging from 2020 through 2026. You'll see as the expenses went up, we moved our budget up. And as when it came back a little bit, we weren't real quick to move it back down. We fel felt it was conserved to hold it steady. And when we enjoyed the second year in a row of 2025, it held us steady. And again, we
saw a little growth in 25. Our decision in 2026 was to hold steady, not to back it down because it can move up. The next two slides I'm going to show you are medical through May, not through June, but through May 31st. You'll see
through May the actual expense of medical went from 44 4345 to 5.122. Just like I showed you the year end drop the 531 mark of 2023 was 4.5 4.6 and
4.9. Nothing here that jumps out. That's why if you remember when we budgeted up here, we kept it up thinking it might rebound and it did, but it's this year surprisingly high. Although we've had the surprise of a couple low years, this year is doing uh the opposite. So look
at the trend now from 2021 22 the 23 was a surprise only went backwards. The small growth was a surprise of how much it grew. One might have expected it to be here, here, and here, but it was at the 49. and throughout this year early on this was
no set as we said we have stop loss so it's not one single catastrophic loss it's just a collection and it's a series a momentum of claims that have come in from January through February we knew by March we get filled every month so week to week we can see this one's high uh we
I think comes up to anything over around 230 40,000 a week we start to go okay this is higher than expected and we're seeing medical bills of over 500,000 uh for a and that that went on for several weeks. It's not in it's just uh you know
the way the way things work and now since this May and June and into July it has cooled off a little bit. So as we continue to track this I think the cons the major point here is just to put it on the put a marker down that medical something we're going to talk about at budget season. It's too early to to know
what this might look like by the time we get to August September when we need to make decisions about what the budget's going to look like what we place that number. but it is um strikingly high. We've had meetings with BSI or medical broker and they've had meetings with Capital Blue. Now, one thing that happened, you'll notice the note at the
bottom, there was a billing, I guess I would call it um lack of coordination between Capital and St. Luke's. St. Luke's was had the medical bills and then when they submitted capital cap the way they received them, there was
issue across the valley with this. There's $500,000 of bills that were accurate and credible bills that we didn't receive until 2026 started. They were services provided in 2025. If we would have known, it may have been too late for budget season, but would have pushed
2025 higher. So, it's a little high if if you take out that one time adjustment. We're still at 65, which is still very high. It's a little bit of a change, but doesn't it doesn't change the fact that we're going to need to um you know, watch this close and have some type of recommendations ready for budget
season. So, I think uh when you look at this last slide, this just shows you it's an overlay. This is the in the orange the final year where we ended up. The blue is where we were at 5:30 when we're May
31st. So you can see where the blue is this year and it's much higher than any other year. So just food for thought on that. I think that that's all I just wanted to provide with you that the high takeaways. If you have any questions about revenues, expenses, um please see me or call me anytime.
>> Thanks. We we do have two minutes before I want to adjourn. Does anyone on the committee have any questions for Mr. Evans related to the update that he gave? I had one. Thank you, Mr. Evans. Just a point I would like to make a question.
When the act 511 taxes, that's on the city's website. So sometimes, and we talk about taxes, everyone thinks real estate taxes, but anyone following along, it's in our budget book, and then they're explained and broken out on the city website, what the different taxes
that come into the city are. I think it's just a good point even sometimes for members of council, myself included, as a refresher about where we get our revenues from, how that money is generated and what comes in to to help fund the general fund. So the point I would make
>> Thank you, Mr. Evans. So this concludes the finance committee. Full council will be starting at around 7 as scheduled. This meeting is journ trying out there.