Okay, >> I will call the second budget meeting to order and ask the clerk to call the role. >> Miss Bellahan, >> present. >> Miss Grampy Smith, >> present. >> Miss Quitech, >> present. >> Leard, >> Miss Leon, >> present. >> Miss Wilhelm, >> present. >> And Mr. Cologne.
>> Councilwoman Lair and Councilman Cologne will not be joining us tonight due to family emergencies. YouTube reminder, if you start this meeting after 6 PM, make sure to scroll ahead so that the YouTube stream is current rather than a recording of an earlier portion of this meeting. The
following proposed budgets will be reviewed tonight. Golf Course Enterprise Fund on page 259, administration on page 27, council, mayor, treasurer, controller, law bureau on page nine, general fund revenue on page one, general expenses on page 170, civic
expenses 174, debt services 178. After each topic, I will recognize council members for questions. After certain topic groupings, I will take public comments solely on those topics. First up is the golf course enterprise fund. I'll recognize Mr. Eric Evans, business
administrator, to make the presentation. >> Yep. >> Here we go. Um, night two of three. So, to kick it off, we do start with the golf fun. I will begin by introducing Mr. Paul Viola who is the
PGA pro out of the golf course and runs it club once a year 7 days a week sun up to sun down although the course closes for play at 11:30 into December still a lot of work that gets done in order to prepare
for the opening each year and that's weather dependent but I think this year we started in March 12th >> okay but he is also So, golf pro, but he's also the general manager. So, we'll be in charge of all operations at the golf course. If you turn to to page 259,
we'll start with the operating revenues of the course. We'll begin by stating some of the opening ideas is that the golf fund, the golf course itself was established and built in open for play in 1956. It is an enterprise fund. So, like some of the
funds we talked about the other night, they're self- sustaining independent of the general fund. There are a number of sources of revenues and you'll see them listed on page 259, but there's an 18hole course on on Illix Mill Road. Across the street from the 18 hole is a 9-hole course and
we collect both green fees and cart rentals and you'll see those listed. Next to the nine-hole course on Illix Mill Road, which is behind um there's a I guess the cabin that also is the driving range and that's open every day.
The golf course is open. It gets a lot of play. This is something that used to be a side note and really since the improvements were made things have taken off much like they have um on the as at the course as well. But even that picture you see in the bottom it's loaded with men, women and children. Almost any nice day you're going to see
it filled up. Other sources of revenue, the restaurant lease, uh it's Clubhouse Grill. They've been with us for some time. We just renewed and if you remember this summer that lease came to you and was approved for an additional seven years. So, they're still operating under the 2025
lease, but as of 1126 through 2020 2032 will be the new terms and conditions. We're both really happy. They've been a great partner not only to the city, but to the community. The cart barn lease, we call it, it's at the bottom. If you ever enter and you come in to the golf course prime, you come down the hill where the big parking lot is on the left
was a it was a cart barn. It we call it that cuz it held the golf carts. And in uh 2020 we were approached by and we interested and then if most of you signed off on that lease became a fully operational golf simulator that is again
open year round. It it's not in any way a competitive golf course but we see it more with synergies that it brings if it's raining people can still play golf. Um it and it allows the golf players off season to continue improving their game. So that lease 21 through 2027. So, it's
next year and the following year till that one would be up. The next snapshot, a little hard to see. I did give a hard copy to members of council. This is an ongoing graph that tracks revenue by month from 2010 to 2025.
And we can start moving some of those older years off, but you'll see the yellows when the course was struggling. Yellow, red, and green are there to signify revenue levels. uh in in 16 when it really started to spin to 1.3 the bottom number 1.2 to 1.1 that point we
were well below and if and with the idea of being a self- sustaining fund the idea is you should be making enough revenue to cover all your direct costs as well as general fund charges the medical and uh pension and everything else that goes along with it and to they they do do that that break number which is in
your book around 1.8 point8 to cover direct expenses, but of course uh in 2018 we borrowed money, but we are now able to make actually capital appropriations each year that if their revenues for now are exceeding the expenses that money is placed into
account to help invest at uh to into the larger assets whether it be equipment or property or playing conditions at the course and you'll see really postco like um different things reacted um coming out of co in different ways. golf was really
something that don't say had a rebirth but it really took off. Allentown also experienced some surging but between that and the improvements we made into the course 22 23 four and five you'll see year after year revenues increased
to six in 2021 to two which included a LSA grant. So the number below the green line the 1.8 8 or 1.9 is uh the actual number if you if you adjust for the the 160,000 grant. 2022 we hit 1.9. Last year it was 2.1. 2024
was 2.2. And if you look to the newest column we're at 2.237 with two months. So there's a very good chance November has been kind enough. The numbers drop off. The days get shorter. Frost delays enter. So the window certainly closes, but there's enough play left that we
should be able to reach that 2.3, which would be new record. And each of the blue the blocks there or the cells that are lit up in blue represent the high water mark for each particular month. And you'll notice and if you remember from 2025, it was a slow start to the summer. We came out of spring. April,
May, and especially June was quite unseasonable. We saw that at both at the pools, which we'll talk about a little bit later. the revenue and the attendance really took off in July and really high in August. The same thing happened at the golf course. May and June didn't set records because it's very weather dependent and uh by the
time the summer conditions showed up, the number certainly responded. So revenues are are in a great place. Next, we'll move to the expenses and that's those are listed on page 261.
The golf course is run with four full-time year-round employees. Two are TAMs and two are union SEIU. One is the mechanic, one is uh the maintenance worker. The two full-time is Paul as a general manager and Chris Jud as the course superintendent. They are
supplemented with a large part-time or what we call temporary help seasonal crew. they get hired in March and the course opens and when the course shuts down uh that that employment will end for that that crew and then they fire them up again in the spring after the employment costs which
are uh listed on 261 we move down into material supplies and equipment you'll see at the bottom um propane uh when I say the bottom I'm talking about count 42141 propane account entered uh
exited this year as part of the new lease. The clubhouse taking over the building is taking over the propane bill. So, what was paid for by the golf course this year will now be paid by the clubhouse grill. So, that's an expense that will fall off in 2026.
Uh I will point you to the 42075 through 42092. The last 68 accounts are all the general front charges. That's what show that's the part that shows the course not only pays its direct costs but does make the payment for the MMO
general fund charges their own medical workman's comp social security and the last two line items are the bond redemption that's the the note that we took out in 2018 that is a 20-year note it's $125,000
each year and that was a paid for the number of upgrades that were made to the course when we did not have cash. This slide will kind of pre uh cover what we did 18 to 23 goes early steps to reduce full-time
staff backfill a seasonal crew. We renegotiated the restaurant lease, bride new revenue, brought in the new tenant and the former cart barn. We did take the borrowing for the bank note to get things started. those that money has been spent and the improvements are
listed drainage. The course um flood in a lot of air is made unplayable and if you can't play then your revenue is zero for those days. So that happens very little from when versus uh pre 2018. Irrigation to control water in the course is critical. So irrigation was
improved and replaced on both the 18 but also the nine hole. Uh the pavilion was added out back. Those are for events. Uh before that it was just a tent that was posted up that didn't work very well. So now it's a permanent pavilion which makes us much more competitive to
attract tournaments. All the sand traps or bunkers were revamped, replaced. Some were added, some were taken away. The cart passed. The black top were torn up. They were greatly damaged by the trees on the course. So they were removed, reduced, and then replaced. And after those were done, there's been uh an
investment in the turf and maintenance equipment. Those are the mowers and other machines that are needed to maintain course conditions. More recently, last year in 2024, the pro shop, if you look at the picture on the left, that red box covers the area next to the cart barn. And the picture on the top left, you'll see the cart
barn in the parking lot. That area is where a small shed. So, if you look at the picture on the bottom left, that was the shed that existed where they went where they would operate out of and meet the golfers to set them up. That's where you pay. You get prepared and you head out to the golf course. that was really
just a hot dog turning station, a snack barn that was built in um early 2010. Never designed to have a number of people working there. They used to work up top, but it was much more efficient down here that they chose to invest and we did. And you'll see the picture on
the right at the bottom, the second one in second from the left is a new park barn that's completed and we always welcome you to go and visit it. That it's where the starters are located. That's where Paul's office. It's small, it's humble, but it's new and it's very appropriately sized and uh has a bathroom in there you can service from
the front and also inside a small closet office and um merchandise is available at the pro shop. So that was been completed with the help of our engineering department. So Mike Alol and Basil Yandum were critical in that and we now are working with them for the next steps of the of the barn on the
bottom right hand side. You all recognize that that's up on Illix Mill Road next to the recycling. If you come out of the recycling center, that's what you're looking at. It's in bad condition. It's it's quite damaged. Engineering has put eyes on it a number of times with the idea, can it be
renovated or replaced? It cannot be renovated. It's deteriorated behind beyond that that the plan is to take the top off of it, maintain the foundation, and build uh above the keep the first level and build two and three. that's in the hands of our engineers and uh they
hope that they're able to move that into design and build next summer so that can be replaced because if you come out of recycling center you'll notice part of the roof the slate roof is starting to deteriorate some of the doors you know a little rattly so it definitely time for a number of reasons to have that
replaced. So that's the next operation at the golf course. That ends our section on the golf course. At this time, Paul is with us. If you could approach the podium, please. And Paul will be available to answer any questions I may have
regarding operations of the course or if we have any questions about uh the budget. >> Thank you. Welcome, Paul. >> Thank you. >> Um I will turn to the parks and recreation committee. Our committee chair is not with us this afternoon. Um but I will turn to the committee
members. Uh Mr. Callahan, do you have any questions? >> Sure. Paul, how you doing? >> I'm doing well, thank you. >> I want to congratulate you and your staff over there from, >> you know, making this probably one of the nicest public um courses in the state. I know there's Well, there's three of them, right? I think in the state.
>> All town's got one. I think Wilsburg's got one in Erie or four. >> Correct. >> Yeah. Um well, it's come a long way since, you know, 2018. >> Thank you. >> Um on the what's going on? What's the uh story
with the the the first floor? Do we have any plans for that the of the original clubhouse where the bathrooms the old bathrooms are? >> Yeah. So, the that is now been included with the restaurant took that over. Uh so, the restaurant has the whole building. They're going to be using that
for uh events, parties, and co like a coffee facility in the in the spring. >> Are they ripping out the bathrooms down here? >> Well, they're supposed to >> Are they ripping them out? They're supposed to be renovating. >> Renovating, right? Yes. >> All right. And then um
>> on the barn uh if we get rid of that I I've never been in there, you know, to be honest with you. So is there really a need for a three-story barn there or is that just >> Yeah. >> So it's Is there a need for a threetory? Well, it's two stories. >> It is. >> So it's just two stories. Yeah, correct.
It's just two stories and the >> the rafters are very large. It looks like the three >> It does. Yeah. It's just it's >> very tall in the inside. Um, is there a need for that much space for our equipment? Yes, >> there is. >> Yes. >> What do we have on the second floor up there? Like what do we use that for?
>> The second floor is where we store because the garage doors are bigger and there's enough of clearance. Uh, it's most of the rough units, the 16footers uh because they don't fit in the other barn. It's too too small. >> All right. Do we have any idea what what that renovation cost will be?
>> At this time, we don't. Right now, we are we're entertaining. We have two two companies have come out. We're just waiting for some uh quotes from them. >> Um as far as the the price of the project, we we don't know at this point what it's going to be. >> Yeah. So, all the work that we did on in
in 2018, Mr. Evans, me and you and and Mr. Bark and a few people, um what was the gentleman's name that you know that we hired? I forgot his name again. >> Kelner. >> Kelster. Yeah. Larry. Yeah. >> Yeah. >> Um I mean it the the irrigation is 100%
better. the traps, you know, there was water in the traps all the time after rain. They're irrigating. The sand's unbelievable. Uh the um we have an automated system now for the fertilizing and the um >> irrigation. Yes. >> Right. Yeah. So I you know
>> that's part of it. I mean obviously Yes. Correct. >> Yeah. But irrigation I was talking about the water removal off the course and off the >> the drainage. >> Yeah. Drainage. Yeah. Yeah. >> Yes. >> So we we come a long way. We knocked down how many trees? over 250. >> Yeah.
>> Yeah. Absolutely. It was a lot. >> So, the the only thing I want to I'd like to see and I don't know I have no idea how much this costs but everybody talks about there's no water on the course. So, when I when whenever I play, I'm always looking at where could we put like a a little pond and I don't know if
it's possible. I don't I think I've talked to you about this. >> We have. I mean, we we've discussed it in the past. Uh you know, maybe putting some putting one down on 15 uh down in front of the green. Um, you know, one one of the things that makes us very
successful is the fact that we are very user friendly on the golf course. There isn't water there. It's it's a little bit easier for a lot of the seniors. They have the opportunity to run everything up to the green. So, yes, everybody would love to see water on the golf course. I don't know what
that would cost to put in a man-made water feature. I I don't know. I was thinking like if you when you're coming up approaching 18 before the um before the green, there's a water line already there, a main water line. I don't know how much we'd have to use, but there's
also like a little bit of a a swale right in front of the the green. And I think that if we could get people, I don't know if the unions would be against us or whatever, but if we could get someone to volunteer and I think I could get some contractors to do that to dig out the pond area, you know, a pond
area and put a we'd have to pay for the liner obviously, but >> correct, >> you know, I could get someone to probably donate their time as far as digging it out. We in the city could do the liner and then there's a there's a a water main line there to fill it up, but I think the water there's ir there
there's drainage swailes already there. You know what I mean? And I think it'd be like a this is just a you know >> a wish list a home run, right? Yeah. I mean, of course. I mean, we we would all love to have the water feature in there. >> Yeah. And it would be a sign a signature hole, too, you know. Correct. So, and
you know, if you look at like u you know, a lot of the other golf courses, they put like a little um >> fountain. >> Yeah. found in there. >> Well, you need that. You got to You can't have it stagnant, right? Right. >> You know, that's the biggest issue with having >> war something that you know that >> I'm I'm looking at hopefully sometime down the road. So,
>> but other than that, you know, I I want to thank you and all your staff for all the place is amazing. The it was in great shape this year. Uh the Greens were in great shape. So, you know, I want to thank you and your staff for all the work you do over there. Thank you so much. >> Thank you very much,
>> Miss Wilhelm. Sure. Uh I I just I missed the dates of the closing and opening. Could you just >> Sure. Yeah. So we we stop uh usually sometime around November 30th. It all depends on when it falls. So this year it would be November 30th. Again, weather pending. Uh and then we reopen
in March. Usually the second week of March, like around the 10th. >> Um that's when the staff comes back. >> Uh again, that's weather pending, too. So this year we I think we opened up on the 12th. >> Okay. So is it just you for those winter months? It's myself and the It's the
four full-time people. It's the two uh union members, the the the the worker and the mechanic, and we do all the winter maintenance on the on the equipment. Try to get some projects done on the course if the weather allows us to, and the superintendent, myself. >> Got it. Um and I was just curious to know if the virtual I forget the name of
I'm I don't got Yes. >> Yeah. Is is that you finding that to be more successful each year? Are people taking advantage of it? >> They they are. I mean, it's it's it's we go hand in hand. uh their their busy season is obviously in the winter. The the colder months when we're closed, so
our our patrons have a place to go keeping them in house, you know, so it's been a it's been a very good relationship. >> Oh, good. That's that's good to hear. And um no other questions. Just congratulations on the success of the course and thank you. You know, every year we hear about the very hard work that you put into it on a smaller staff
than you're than you used to have. Um and that hard work is reflected in these excellent financials as well. So, congratulations and thank you. >> Questions from council. Counciloman CR. >> Oh, okay. I just wanted to say thank you
so much, Paul. I think um I hear a lot of great things about the uh course even though I'm not a golfer and I know Mr. Jud is really dedicated, puts a lot of hours in. Um and the restaurant I do go to and I think that just keeps getting better and better. I know you lease it, but just the quality of the staff and the food. Um, and I just wanted to ask,
I know in the past, are we still doing like complimentary um, you know, discounts or fees for students and letting students from the different high schools come and use it? Okay, that's great. >> Yeah, we still have student rates and, you know, high school age. Uh, we still service all the high school golf teams. There's three of them that play there.
So, from the beginning of August till usually the end of October, they they get, you know, the teams have full full use of our facilities. >> Great. That's great for the kids. Thank you so much. Keep up the good work. Thank you, >> Councilman. >> Thank you, and thanks for all your hard work. Um, >> thank you.
>> Uh, I had two quick questions. One was related to youth golf. So, I'll just start there. Um, any use of the um course for developmental like for below high school to bring kids in and expose them to golf and >> Sure. So, we we we we have a partnership
with uh the first te uh Lehigh Valley. So, uh, we we donate the facility to them on Mondays for 4 hours throughout the course of the summer. They there for like 14 weeks. Uh, so anyone can come in join in that class and it's all free for
them to to do that. And then, uh, you know, we we run programs at the golf course. Obviously, there's fees some, you know, fees involved with some of those for for juniors, junior camps, junior clinics, junior programs uh, for for them to come out and play and they're all reasonably cost. >> That's great. And then my only other
question was the um the >> the number for gas really stood out to me. Um and uh I know you've put a lot of investments into equipment and things like that already, but is the gas for the golf carts or >> golf carts and the maintenance equipment.
>> The turf equipment. Yes. Gas and diesel. >> Any chance that the next round of golf carts might be EV? >> So the only problem with that is is the I have nowhere to house them. Um, each golf cart needs a charger, needs to be hooked up to electricity and you will need inside storage and then you need a
charger for every one of them and then they all have to be plugged in, charged in every night and it needs to be covered in from from elements and weather. >> Okay. >> So, that would be another investment and >> yes, it would correct. >> Okay. All right. Thank you very much. >> You're welcome.
>> Um, that exhaust council. Uh, I see you once a year and it's always great news. So, thank you for that. >> Thank you. Um, I'll accept any public comments. Can >> Can I ask one more question? Go >> for it. >> How many acres is the um nine hole course? >> Nine-hole. I I I wouldn't know off top.
I mean, I can find out. I I don't know exactly off top. I think the whole facility is 246 acres. >> And how many how many rounds? Um I mean it went up substantially, Mr. Evans said, as far as the Yes. On the nine hole. >> Yeah. >> Oh, yeah.
>> Yeah. >> How many rounds on the nine hole? The nine hole is doing between I mean I don't have the exact number for this year but we do between 17 and 19,000 rounds on the nine hole. >> All right. Thank you. >> You're welcome. >> Yeah, the 18 took off but really the larger margins were the nine hole in the
and and the range is where we just saw >> nine hole in the range to be to be very honest with everyone. That's that's where we make our money. >> The nine hole in the range the you know I can only put so many people out on the on the 18 hole course. We do, you know, obviously starting times every 10 minutes for for groups. Um, short of
raising rates, which we don't, you know, we do every two years. Um, but, uh, it's very minimal. Like this year, we raised at a dollar and $2. I mean, it wasn't much. Uh, so we're kind of, you know, locked into the amount of rate, uh, that we can make. Right now, we run at about a 94 to 96%
uh, fill on the T- sheet pretty much all summer. Um, so the nine hole in the driving range is where we've seen the uh biggest the biggest increase. The biggest thing between the two facilities at the 18 hole course we do between 36 and 38 39,000 rounds and then like I
said about another 17 to 19. You remember it's only nine holes. So we got to dovetail people in there, get them working, get them going. So yeah. >> Yeah. If you could I'm not saying or the next week if we could possibly find out how much acreage
the nine hole course has. And I'm just curious. >> Yep, I could do that. >> Thank you. >> Yeah. >> All right. I didn't see anybody from the public for any public comments. Um, so we will move on to our next agenda item.
>> Thank you, Paul. >> Thank you, Paul. Thanks for coming out. It's great to see you again. >> Um, turning back to >> Mr. Evans for the administration, I will now recognize Mr. Evans again, business administrator to review your budget. >> Thank you. I don't think you know Paul as he's leaving now that we talked the
other night about some tough years in 2010. We looked at some memos and when you looked at that chart Paul's been with us long and if he came with us from from Silver Creek over two decades ago. So that that period that 15 167 18 he was through and he knew when it was tough the golf course couldn't pay its
bills and didn't have any cash. So that the turnarounds a lot of credit to him and his his staff that returns every year if you go there they're they're also renowned not only for their professional conditions but the services when you get there the the men and women that work there are all very well respect and very respectful because
there's a lot of a lot of clients they have thousands and thousands of visitors golfers each and every summer. So very proud of that. Um we will turn then to page 29 I guess is the where the numbers start for administration. We'll move
into that and like to begin as the department's traditionally done including what we saw on Monday night with water sewer and public works. The leadership of the administration is in attendance tonight and they're sitting behind me. I will acknowledge they are true professionals and experts in their field and I want to thank them for the
continued dedication of the city of Bethlehem. On page 29 is the administration is made up of two people. You'll see I know I've talked about this before I need to know there we go. Okay, that slide that you see now is that the administration city hall is is very lean
and when you see the numbers, you know, it's one and two. There are people that have vacation and sick days. Often some of these bureaus are are, you know, one one deep. So, we continue to work hard with uh the staff that we have administration, two people, a business administrator and the director of budget, uh Lenny Lazar, who you're also
familiar with. Salaries are the biggest expense for the administration. Uh as most as with most initiative in the city the budget and audit are the largest lifts for many people but Lenny has a large role in bringing both of them together. They happen to come to completion at the
same time. Our audit as you were aware we did send it to you and in a couple weeks right the same time that this budget was coming together. So it was a real peak period for us and uh from the administration we spend our time working with partners for banking, finance, medical insurance, workman's comp. We
complete reports for the state. Uh we work with the pensions. We ne renegotiate the uh labor union contracts for three bargain units. And if you're aware with that, we complete a four-year contract with SEIU. Last year, that was one of our achievements. That's 25 through 2028. Next year, it will be one
of our large uh goals as both the FOP and the IIAFF enter the fourth and final year. Therefore, your contracts run from 2023 through 2026. So you can stay tuned as we move into 2026.
Uh if we turn to page moving to page 33 is administrative services or it this is a group of five that's led by Jonathan Pelosi or sorry John Jonathan Pauly our networking manager who's behind me >> Pauly and Doug Shadel who's our
programming manager. They they are co-supervisors of this. They have different roles but they work together. They've worked together for quite some time. They're experienced, high skilled. They try to take vacations, but they also by the nature of what they do are are on call and or available 24/7 and
365 for the entire city. to IT bureau's list of achievements and goals is overwhelming as they control all the hardware, software, programming, database integration with regard to both ongoing maintenance, the security, the support desk and all the new
initiatives across the city as they support PCs, servers, body cams, car cams, cameras on the buildings and then light pole. So, it's not just internal the city but it's our field work and it's the city itself. The largest expense in IT you'll see is department
contracts and that's uh account 42047. It's a very large number includes if you turn to page 34 a number of support subscriptions. Our newest one being the the move to Windows 365 is now a rather than purchasing and owning uh for for
useful life now it's a subscription. So you'll see that as a last item of department contracts at a healthy price of $25,000 for all the cities. We did ramp up and I believe Jonathan everyone's on now almost >> almost all the city the last was some of
the platoon and fire as as well as some of the police but everyone's now converted to that so but that's new ongoing expense in IT that you'll see we move to page 37 in financial services Joe Vic is the director of financial services he sits behind me you've maybe
have met him at a finance committee meeting uh the financial services task is accounting for the 244 for that the cover slide I had on tonight showed our combined we have we talk about the proposed budget but it's actually truly 10 budgets as each fund is self- sustaining and balance. So we have 10
budgets for accumulated um total of 244 million and that's revenue. So when you think about through financial services eyes 244 of revenue but there's also 244 million of expense because if it's bal balance that's coming in and also going out. So uh the responsibility of that
bureau is that they they're going to collect that either through cash through check through a through wire each transaction needs to be identified the correct amount in account the funds need to be reconciled as a as this surges from all the each of the different departments across the city. So in this
bureau it's organization persistence attention to detail is paramount to keep it because it's it's incessant in what is coming at them dayto-day again with a limited staff. So Joe's job is to review all existing processes. He's done that. Joe has been here a year and a half, but his background is in auditing. So, he
has a unique perspective what he brings to the table, not only what he's seen today, but his past experience. So, we've made a number of changes in financial services uh including cross training the staff and that's continuing as we continue to review all our processes across uh the entire
administration. He is also the primary point of our audit again which just wrapped up. So on December 2nd, Joe will be here and will be involved with some of the question answering during that period. Turn to page 41. We move to procurement. This is a staff of two. Sandy Styidell
is with us in the back row. Sandy and uh Shane Filman is a specialist that's been with us a couple years. Sandy also mentions is leader not only administration but across the Lehigh Valley. She's a president of Lehigh Valley Cooperating Purchasing Council and also vice president of the
Pennsylvania Purchasing Association. So this administrative function is to pursue strategic efficient and also the word compliant sourcing methods. When you work when people come from outside to work for municipality, they do realize a number of compliance issues we
have and they're all for good reasons. So, she does spending a good deal of her time working closely with both the controllers's office as well as the law bureau to make sure everything's in line that we want to move, we want to be efficient and quick, but also we're taking the necessary steps ahead of time so that all those checks uh check boxes
are are under control. So, she will work across the city to create and develop the bid spec when we talk about the RFPs. She'll work through contracts. She was um instrumental in setting up the software program SharePoint which we mentioned for the electronic passing through of contracts. So that continues
and we look to build that out to add more functions to our SharePoint. Uh the largest expense in precurement is going to be um department contracts but also the advertising as when we talked about the business that needs to go out there. We move to taxes um in 0206
that's on page 45. Ellie Rosario is our tax auditor. Thank you Ellisia. She's responsible for administrating the city real estate tax. do that directly and also assist our vendors Tri-State Keystone in the collection of our outer taxes and our
511 which is a business privilege. You'll see with when we talk about re when we talk about revenue mercantile EIT LS LST the collection for these are outsourced so she will have a lot of interaction with them updating auditing she routinely runs audits with our
enterprise software to crossch checkck and exam and make sure the businesses and everyone is compliant she'll work with special events to ensure the vendors at our many many events are also in compliance uh with all our vending laws and uh tax I believe of I would say
of all our bureaus within the administration is the most frontward-f facing other than I guess the golf is that meaning that they work with the public and Ellie spends a lot of time and she works very hard making sure our citizens and businesses both understand we're able to follow the tax laws and she does that through phone calls but
also lots of public visits and she's also developed a great website so anyone with any questions directed at that site it's upto-date interactive and uh full of information so she does a great job in there that she's working now that you'll see it's just one person, this one person as a as doing this. We have a
part-time that position is now vacant for a part-time position. We're looking to we had a couple interviews that didn't quite work out, but we're looking to fill that because she's in the meantime um holding the fort up there in the tax bureau on the third floor. And then we move to the last bureau in
administration. This is human resources. This is a staff of three. The director, Michelle Sahaki, is with us in the macro in the middle. Uh Michelle is has been our director and similar to the other bureaus uh the department within our department of administration human
resources assists and supports all the departments uh from recruiting onboarding new employees training them once they're here in a number of different ways whether it's police or fire or it's entire groups. It could be safety training uh tending to the needs of both our current and also our retired
employees who at times still need supports are looking for supports from their previous employer. She works with each of our and is a really a a key point person each of our three bargaining units uh on key issues dayto-day week to week uh as well as when the contract comes up. She's going
to be part of that team when we sit down to negotiate contracts. Her bureau is also responsible for a long list of federal, state, and local laws to be compliant with. They do handle all of payroll internally. We do that inside as well as work with our partners for
medical, workman's comp, defined benefit and um pension plans. In addition, workplace policies are continually reviewed so they're met so they meet today's workplace environment in a fair and equitable manner. and Michelle excels
just by the nature of this uh position in this bureau. Some of the most delicate, difficult and stressful circumstances and a schedule that turns upside down in a minute. So with the staff of three like all our bureaus, they they remain very busy. So these are the leaders of the administrative team. They're responsible, dependable, highly
skilled, and this time uh either they or I I can answer any questions you may have relative to the bureau or department. >> Right. Thank you. turning to council. Any council members with any questions? >> Uh, nope.
No, it's just not a >> So, um, council members with questions. >> Yeah. Yeah. >> Hello. Thank you for that information. Excuse me. Um, I wrote something down here and I hope I'm going to remember
where it was, but I had a question for is ask. First of all, a thank you to Jonathan for always being there for me because working in the Mac and Google world of technology. I often end up losing my access to my email and I don't
know why, but he's always there for me. So, thank you, John. I did have a question though about moving from the cloud to an internal enterprise server. There there's a piece there was a piece in the um
where was it? It's a it's a specific server. Uh >> yes, thank you. ArcGIS. Yes, good one. Um so if you could go to the microphone. I was just curious because everybody seems to be moving to the cloud. So why
we're kind of pulling it back in to a a server. >> Certainly it's uh it's mainly it's it's administered by our GIS manager uh Stephen who is not here tonight. So I can't give you the details but the idea is to have more security, more control
and um to be able to build more applications internally and then supply external contacts through the EZRI cloud to be able to get to that type of thing. But we have much more control internally than we would externally. >> Got it. Okay. Thank you.
>> Sure. >> That was the only question I had for you guys. Um, and then I was just curious how often we go out to bid on the um, tax collection contracts and whether there are multiple third party vendors who handle this and and just wondering
um, >> you know, >> I have nothing against the tax collectors we're using. I Keystone, it's very easy to use, but I'm just curious about um, the process. Keystone is a county collector. So they collect for
all the municipalities across that. So it's not something we >> don't have control to do that. >> Miss Lazar, if you could join us at the microphone. >> Take the mic. Yeah. There's actually it's countywide collection and each um municipality has a representative and
I'm part of on that board and um the majority we could go out for bid if the majority would want to do so. >> Okay. Thank you. And then is that the same for >> state is our collector I believe two more years. we have two more years in
the contract and then we'll look to see um what the result if there's a need to go out the bid if we're not satisfied with his collection efforts or we'll just determine it at that point in time. >> Great. Thank you. I was just wondering when it was going to come up and yeah appreciate that. Um and then I just
wanted to um definitely uh um offer some praise to the HR team for uh 77 hires in one year with a team of uh three two and a half. What is it? It's most impressive. Um having come
from you know working in HR for a long time uh and working on employer brand and recruitment and everything with with our talent team. I know that that is an incredible number for the size of your team. So, um and app also appreciation to your team for helping me with my W4
this just this week. So, uh great job there. Um and those were the only things I had. So, thank you. Thanks to everybody again. >> Questions from other members of council. >> Question.
My my one question was about the jump in the uh department contracts in the in it. You answered that but so um really I just wanted to say thank you all. Um we all say many times every budget season
every year that the budget is the reflection of so many people working uh behind the scenes and I feel like you're behind the behind the scenes. Um and but you know what this represents is just an an extraordinarily strong foundation on which everything else builds. So um I
thank you for that and and please um pass our thanks on to your teams although I know we operate very leanly and meanly and most of you are here um you are the team but um just wanted to express my thanks for for your service and dedication to the city.
Any other questions for members of council? Okay, I would now recognize the mayor or his administration to review his budget. >> Thank you. And I just want I want to thank also the council for the compliments here. And you know, going back to my time on council is like I
really think that every time one of these bureaus or departments has an opportunity to present it is an opportunity to say thank you because we have just amazing employees and um you know many departments we don't have for a lot of reasons we just don't have
extra people to be able to take on these tasks and when there's a new task that comes up it becomes something that becomes shared by our current uh employees most times. Um and the people and this is not unique to the people behind me now. Um but we really do have
the level of service that people come to expect from the city is from the people that are delivering these services. Just want to make one comment on the IT space and this is not a specific one is it it is an area that in the coming years you know a rather large look at how the city
handles a lot of things as far as it is going to be necessary and this is an oversimplification but as technology has developed over the past 20 25 years with the internet you have different systems that often operate independent of each other and the technology doesn't always
necessarily exist to be able to tile those systems into each other oftentimes to be able to have systems tie into each other, you have to almost ask people to build specific connection systems for operator system A and operator system B that we may have gotten in 2003 and
2009. So it would not it will not be cheap and it will not be quick but it is one of those things that people within individual departments talk about as something that over and when I say the city I'm talking about the next you know
5 10 15 years is it's going to be it it's it's going to be one of the big things for the city to take on and we're not alone there I mean other places are in the same position where you can't just rebuild your entire infrastructure every five years so a a lot of other
places, school districts are similar, colleges, universities, private business where you just have basically every time you added a system, you added the possibility or the probability that it didn't connect to your individual system. So one department might not have access to all of the information in
another department within the same system. And then even if you make the decision to do the upfront infrastructure cost of buying new system, you both have to think forward as far as how long is this going to be good for. But then there's obviously the I'm not sure if interruption is the word, but all of the services you're
providing currently are going to have to go through that transition as well. And that takes training, that takes all sorts of different things. And with our the way many of our jobs are where we have one finan fantastic person, but we don't have people in an office that aren't doing work, you don't have other
people that can just go do that other task. So, it's going to take a lot of planning. Um, I'm not sure exactly where it's going, but I just wanted to mention that that is sometimes people on council or other people ask, well, doesn't this system talk to that system? And trust me, we spend a lot of time in the IT department does as good of a job as
possible trying to develop those um those systems. But it is just it is something that we're going to have to focus on as a city at some point in the future. But it's not going to be easy. It's not going to be quick and it's not going to be cheap. Um, so, >> so before you move on to your budget, I
would be remiss if I didn't uh >> I know Councilwoman Leard isn't here, but her and I have talked at length about this very issue about the an IT upgrade to the city and what that's actually going to look like in cost. And it's one of those things where people don't see the immediate benefit where it's like we spend a million dollars on
a park and there's this amazing park, but the services that they would get will be faster and higher quality. And to turn to John and say thank you for the 10,000 resets of my password. I apologize for not mentioning that. So, thank you. Thank you. Thank you again. >> I'm not sure any upgrades are going to
help with that particular issue, but >> that's a racial necessary upgrade. I'm working on it. >> It it is it is a it is something where and then obviously the other factor that is implicit to all this obviously is AI and what AI is able to do or not able to do. And I mean that world is just moving so quickly um that when I talk to people
when you look at people in other cities like nobody has the perfect long-term answer. There are people that are making very large short-term investments with the idea that they think things are plateauing or they think they know where things are going and so on and so forth. And you very much need to do that. But
with that being said, um you know, it's not there's no easy answers. And a lot of the current I'm not sure if limitations is the word. Um but when people say, "Can't we do this?" Sometimes that's a situation where like
we literally just can't do it. And people's expectations with the internet and with technology are getting higher and higher as far as quick as far as what you can do as far as can I just go on and do one thing can I do this in 20 seconds can I have every and so they're
just it's nothing is in a silo and we haven't um necessarily taken a look at the big at the big picture but at some point in the next couple years I think there's going to be some kind of like long range systemic planning because right now we have like financial systems
that don't talk to these systems and don't talk to these systems and the current people are doing a great job but it's just there's a better way to do this over the long >> term. So I don't know if anybody has any qu any other questions about that important topic >> any questions about the topic of
transitioning and it within the city? >> No. >> Okay. >> I think we will move to to your budget sir. >> Absolutely. Um, so then I will be uh talking about the next couple here. And uh if you turn to page um I believe it is page
14 and 15. Um, I just want to um say thank you to the um employees in my office who often work long hours, they work weekends, they are probably with the exception of the police chief um and
uh uh they are the most public facing of our employees other than the police chief and myself and um I really just want to take the opportunity to thank them. And I think if you look at page 14 and 15, uh that list of accomplishments gets longer and longer as the years go
on. And um when we talk about the achievements and I go to a lot of places and people talk about a lot of the great things that are going on in the city um and I think if I just counted real quick in 1415, you're looking at 39 different things that were just listed in here. Um and some of these are comprehensive as
far as taking in more than one topic. Uh but as with everything with the city, every time an idea or a plan comes together, there's a lot of people that have done the work there. And uh when you take a look at our financial success, the efficiency of city
services, all sorts of different things. Um the people within um our office are just doing a fantastic job. Um, so I know that, uh, if you take a look at 14 and 15, um, there's a lot there that we
have focused on as an office over the past year. Um, I will certainly I could go through that list, but I think, um, everybody is aware of all of those things. Um, but I certainly can answer any questions that you may have um, as far as uh, that list or our achievements
or our priorities for the upcoming year. >> Right. Thank you, sir. Turning to council, do any council members have questions over the mayor's administrative budget? >> Councilman, >> thank you. Hi. Um, I have a question
about on page 17, professional services, information officer, and communication support. Is that a position or >> No, that's that's the contract that we have for I think it's um >> $1,500 a month I believe it is to handle
uh a lot of our uh communication and social media that uh company produces like our firefighter recruitment video, our police recruitment video, a lot of those uh for facing things do a lot of the live streaming, a lot of different postings, um a lot of focuses on
different things. I think they also do things like they help the health bureau with their like air quality video and things like that. So that's what that's what that is. When that decision originally was made, I like looked around and most other cities actually have just a full-time communications person like within their mayor's office.
Allentown was one of those places. Um Eastston as well. So we chose to just make that a we thought it was better to do it that way. And this is the fourth year that we've had that contract and is that that has not gone up. And and who's the contract with? >> Um I believe it's Lehigh Valley with
Love. >> Okay. And um and I'm sure you feel that it's it's a necessary entity then like no one else in like director of May initiatives or someone else in your staff can't do that just given you know the um improvements in technology even
just with you know iPads and phones and whatnot. >> Yeah, it's a different type and I would say is like when we first came here I had looked around as far as like who else was out there. I had met with several different companies, organizations about who could do it and all of them were expensive and also the
synergy that we have with um Le Valley would love is the idea that they also do it for the Bethamary School District. Um so it allows us a lot of like cross content as our strongest partner. Um but the type of things that somebody one of the people that work in our office might
post is different than what they're doing. And like I said, it has focused on it's kind of evolved over time. And if you take a look at kind of what they do now, it has gone into other uh it's now I would actually say mostly other
departments. And I know that they've focused on doing fire and police recruitment videos and things like that. So I do think that that's a a good use of those of those dollars and it's I thought it was a good deal four years ago and I mean the number has not gone up at all this year. But if the question is could the people that are currently
working, they both do not have the time and they don't have the expertise to be able to produce um that type of content. I think the other option would be would be to look at somebody to hire full-time to be able to do communications throughout the city of Bethlehem if we
weren't going to have a part-time contract. And that's something that comes up every year. Um, there are some people within city hall that think we should hire somebody full-time just because they would like to produce that much more content, but then you're looking at another salary of $70,000
plus benefits and things like that. And like I said, while that's what other cities have done, we've found a way without doing that. >> Okay. Thank you. >> Any other questions from members of council? Um, no, no question. But I will say it's a it's a reason it's a reasonable
question, but just um being in the work of marketing and dig digital communications myself, um, it's really hard to overstate the amount of time it takes to put together what even appears to be a simple piece of content. I think we're getting our more than our money's worth with Lehigh Valley with love and
would would never presume that that would be the kind of task that could be added on. um as good as your phone or iPad is, uh it's extremely time consuming and even more timeconuming to do well. Um, but I I you said it at the beginning of the presentation and I I
just want to say again to your team, Miss Stein, Miss Santoro, um, Miss Agello, I guess we still consider to be in the mayor's office and now, Miss White, um, what is represented on these two pages is just so a vast amount of initiatives and
partnerships and programs and, uh, each one of these has its own many moving parts. Um, and as you said, your team is uh you and your team are are visible and upfront. And I think what this
represents is um the city's effort to literally open doors to people and to invite voices in because so much of this is seeking public input um you know to invite voices in who may not have felt invited to be part of the process in the
past. So, um, and to do it also diligently and to even sort of seek more opportunities to do so, which is my experience in some of my non-counsel roles. Um, and to be knowledgeable and and friendly and pleasant. Uh, all the while I I wish that they were here to
thank personally, but I have thanked them and and wanted to do it in this context as well. >> Thank you. And I would say one of the things that we are fortunate about I never take for granted is how often they just want to go to things on weekends and at night that they're just committed to the mission of the city and mission
of the community. And I think if you look at and Mr. Jello has now paid for half out of our department and half out of community economic development because as we talked about last year having to do with world heritage even though that's what she does now full-time is like that's 90% of her job
um is is working on that but it is each one of those individuals and we take a lot of pride in this as a as a city administration is that each one of them do have those connections to the community that are unique and it is one of the things that they bring to their
job is a passion for the work but also unique connections, unique ways of seeing things um at from a cultural point of view that I you know am just extraordinarily grateful for but we all should be like they don't have the same
story and I think that they they all spend time in different areas and come back and they diff have different experiences that I think then lead to a work product um that becomes very comprehensive as far as a collection of the different identities in the city of Bethlehem. Uh, and it's one of the
things that we are we we try to we try to prioritize. >> Any other questions for members of council? Councilman Kell. >> Uh, M. I So, when um I wasn't here I wasn't on council at the time when when you became mayor, but uh didn't Mr. Don
just have two two staff members in his in his office at the time? >> No, he had three. He had three three full-time. >> Yep. All right. So, um the director of uh the mayors and you just changed the titles in on these. >> Correct. And then the only thing that
changed as far as so the job titles have changed and as far as what their roles have been, I think every mayor has his own people do something a little bit different. But the thing that has changed is that Mr. Jello, who was in
Mr. Donz's office handling different administrative duties has obviously now taken on this position of world heritage coordinator which is as part of our world heritage inscription is like in the mayor's office and she is still
physically located there but like as I said 90% of her work is not doing something having to do with the rest of like the mayor's office and that job is paid half out of the mayor's budget and then half out of community economic development um because of all the things
she does with tourism and things like that. >> So, I mean, I'm just getting back to um um Councilwoman's uh Crampsy Smith's question like she she's pretty much jammed up like she couldn't do that that um um Lehigh Valley would love
>> possibilities. No, she's I mean I I I don't like to I don't turn it into a competition as far as city employees are concerned because I think most people are doing as much as they can. Um, but World Heritage is a full-time job for her. And it's part of the reason why,
not part of the reason, it's in her inscription. It's also why Maven hired a site manager was because previous to that, she was doing both the World Heritage Coordinator job and a lot of site manager duties. Um, that's also not her expertise.
>> All right. So, um, ju just so I have everything straight because I was again I was not here. So, Miss Stein is your is the uh director of the mayor's initiatives. >> That is her job title. I think the best way to think about like what the individual people do is to take a look
at page 14 and 15 and think about all of those priorities and accomplishments on there are shared as a team. So, for example, there could be a day where she's working on what's the first one here? Um the implementation of city's climate action plan. And then there's
another day where Miss Santo is doing that or Miss White's doing stuff and so on and so forth. So as far as like the tasks they are like concerned with >> they it's it's very much a team oriented situation. >> I get it. And then the director of
equity and inclusion is uh is Miss Santoro. >> Correct. >> And then who the chief of staff is Miss Aello. >> It's still Miss It's still Miss Aello. >> It is. Okay. And then uh what's the tempor over on page 17? What's the temporary help uh line air for the
executive assistant? >> So that was when we went from the situation of having three employees to essentially having three and a half employees which we did I think now about two years ago almost now wasn't I think it was the beginning of 2024 when we had that conversation is when Mr. Jello when
we were heading into our inscription and most of her at the time under Mr. Donz, she had all of these kind of like administrative tasks, some of which she was carrying over into our administration. But then as world heritage was getting closer and closer to the inscription which occurred in
July of 2024, it was untenable for her to be able to continue to do anything other than to get ready for the world heritage incription, all these things we need to do in year one and so on and so forth, which is at which point we came to city council and essentially what we did was we split her job where
essentially it was like half of her. So if you think about like the money here is then like we split her job. So then she was getting paid half in the mayor's office. Then someone else is getting paid up to 20 hours a week in the mayor's office which was Miss Fatalos and now it's Miss White,
>> right? >> And then we added the revenue from community economic development to be a from their temporary help to be able to pay Mrs. Aello. So, like she then transferred all of those tasks over into World Heritage, but someone needed to
pick up her administrative tasks, which is how we went from three to 3.5. But like I said, you could say we actually are still at three because half of it is Department of Community economic development. >> Right. So, so the only thing that was added since I was last on council is the
temporary help and then the the the professional services help for Lehigh Valley with Love. That's it. >> Correct. >> So, all right. And then and and and who owns the Lehigh Valley with Love? >> That would be George Wacker. >> Mr. Wacker? >> Yeah. >> All right.
He >> was there a question? >> No, I just I just know that he he he worked on your uh he he was brought on after your first election, right? >> He worked on my campaign in 2020 one. Yes. I did not need anybody in 2025, but
he worked in 2021. >> Yeah. I mean, it's it's not that big of an increase. I just, you know, it's about $18,000 $18,000. I just, you know, if you're saying that's it's needed, I'm I'm going to I'm going to trust you on it because u it it, you know, I I give
great leeway to mayors in in in providing for their own staff and staffing their, you know, their own uh office. So, um if you think it's needed, you know, I understand. So, thank you. >> All right. Um the the only input I have is that I'm
always going to be team communications officer. Uh having recently gotten involved in producing media, I do two hours for a five minute bit and I don't understand how the price is what it is. Um, and I
I would love to see a full-time position there because there is so much when it comes to communicating with with city residents, but I do understand um what a budgetary ask that is as opposed to 15,000 or $18,000 of consultation work versus another position. It's it's to me
it is um a steal. I've enjoyed the work that he has done. Um, and as we continue to get strong as a a city financially, I would hope that we can move to the realm of communications officer. I understand we have way more priorities to deal with uh right now when it comes to to staffing up, but it would be great to
see a communications officer at some point, even if it's not in the the near future. >> Yeah. And I think a couple things, one there is one of the values that I think he has brought too is the ability to live stream a lot of these meetings that are whether or not it's about housing or parks or whatever these different things
are that has just really opened up the opportunity for citizens to be a part of it. And one of the things I learned during the planning of the climate action plan back in like 1920 was just how valuable it is to get people to attend any of these meetings as far as then having an ownership in being a part of the implementation of the process
moving forward. Um, so you know it I mean in a perfect world I would end the contract tomorrow and just hire somebody. But like we obviously are not bringing forward that there's a reason why most other mayor's offices do that. But like we look at it overall as like
this is a better way to do this than it is to hire somebody. Um, and you know, I I would uh I would just uh the thing that we appreciate the most other than their ability to be able to create specialized content for these different departments is the ability to be able to
live stream so many of these different things. That has just really changed how invested people are and how they get that information and the fact they can walk through what's going on with choice neighborhoods. They can walk through what's going on in the climate action plan. Um, and that's why we just we didn't we didn't think it was something that would it would make all of our
lives a lot easier but not something that I think rises to the level yet of as you said balancing headcount and other needs that it's something that we're like we're in this position where we want to do it. >> A direct example is the 40 and 10 is tonight and there's a community watch party. >> Yeah.
>> In uh Indian Hill to watch the 40 and 10 and that's possible because it is being live streamed which is great because it coincides with a community meeting so they get to talk about it. So, um, no notes on on the the current. I I really would, you know, as as we continue to staff up and become what I like to think
is is right size city hall because you guys are so lean and mean. Um, you know, in the next couple years, I would love to see a communications officer, not obviously not top priority right now and we're getting the services that we're getting. All right. Right. So, if if there's no other questions or comments
on the mayor's budget, I will just address the city council's budget, which is on page 11. The um the increase will be enacted with newly elected council members that are come being sworn in in January. Other than that, there is uh no change to the
city council's budget. Uh we will just take this moment to appreciate and show some some love to our city clerks who continue to do the most with the lease. We very much appreciate you. We are a very busy office. This is a very busy council and administration and we continue to appreciate all the hard work
that you put in on a daily basis. Um I will turn to council if anyone has any questions or comments regarding this portion. >> Second >> just just thank you so much really. you uh you help us uh sort of manage
everything so smoothly and you're incredibly responsive um just taking care of so many administrative aspects of this um this role and um helping us function so well. So we're we're very appreciative. It's my last chance to thank you from this seat. So thank you.
>> All right. Any other comments or questions from members of council? All right. We're going to move on to the controller. I will now recognize George Yaso controller to review his budget. >> Thank you. Good evening everyone. So, the controllers's office, things are
uh going well in the controllers's office, and that is uh majority of that is to do with uh the fact that I'm happy to report that I still have Michelle and Michelle as my staff. Uh I will I will start with Michelle in Millward. Uh
we also call her MA or she is Michelle with two L's in her name. Uh she's on her fourth year here. She's in your in your book as the uh count clerk, too. uh she's she's in her fourth year. Um as most of you know, I I have turned over my entire staff and also got leaner and
meaner through through uh the people that I inherited when I first came in. Uh so it is myself, Michelle, Michelle. Um and again with with MA, she's our count clerk too in the book. She's absolutely phenomenal uh with with technology. She's got a a great uh skill
set um that it it's almost tailor made for this position. And a lot of that is from she came from the outside from the private sector and had a lot of a lot of different accounting jobs and a lot of different supervisory jobs that I I just was was so happy when when she came
across uh when she came across my lap to be able to um not only find her, but uh I've been lucky enough to keep her. She does an absolutely phenomenal job. The city's l lucky to have her and and will absolutely benefit for as long as she remains here. Um, as I go to uh Michelle
with one L's or Michelle Loberto who is with us tonight. Um, she is the deputy city controller who you all know in the book. Michelle is now here 12 years. Uh, she she spent a good deal of that time
down in financial services. Um, I was able to take advantage of, you know, her her her knowledge, her her her institutional knowledge, her incredible accounting background and education, uh, and and her overall uh, demeanor,
personality, and trustworthiness. Again, very very lucky to have found her and have her as my right hand. Um, as you guys know, I'm I'm not here uh, as a full-time position. I can only be here so much. I I am here every day pretty
much. Um my other office is right up the street within walking distance. So a lot of times I'm I'm in and out two three times a day here. But the constants are Michelle and Michelle. And Michelle Labberto in particular I have to trust to be me when I'm not when I'm not
there. And it it's it's a big responsibility that I am so grateful uh to her uh for for you know she is one of the people that you can trust when you're not looking and I have to right and and I've been so so happy with her
and and so proud of her. Uh again, um I' I've been fortunate enough to not only find great people, but so far been able to keep them and uh and so just like just like m uh Michelle and the city will continue to benefit greatly greatly
as long as uh they are both here. Um, as far as our goals, objectives, achievements, those things, um, I I think for goals and objectives, the the top ones are are really our emphasis. Uh, continuing to encourage
city administration to increase electronic payment capabilities. We have seen some uh some growth in that. Um, we we continue to uh think it can be done on a much larger scale moving forward. Uh we also continue to urge city
administration to strengthen policies and procedures not only just for financial services processes but for processes in general. Um again something we have seen some progress on but we would like to see much more. Um I can I
can say that you know we have had collaborative meetings to work towards these goals as recently as yesterday. Um and and we're very positive about the the outlook going forward and and think it will be a strong partnership to help
achieve those goals. I mean those are those are things that we will we will always be on top of and always be on top of them for um you know I will say about our office in general um you know I'm I'm I'm proud of
the work that the three of us do. Um, you know, as a team, as a as a small team, I think we we do a very good job of managing the independence and oversight aspect that we have to to maintain along with being a direct
resource and work directly with the administration as a kind of integral and and necessary uh part of the business workflow that we that the city goes through every day. you know, it is a a um a tough line to
tow, right? Um but I think we I think we do a a great job of it. Um you know, we have to ask a lot of a lot of tough questions and Michelle has to be the representative to do this a lot and and it's not easy, right? When you have to ask a lot of tough questions, especially of your colleagues, right, the people that you you work with and see every
day. But I think she does a phenomenal job of it. I think we do a phenomenal job of of it. And I think we do a great job uh kind of managing it with again with being a resource. You know, stuff city business does not get held up in the controllers's office. If there is any piece of city business in the
controllers's office, it is a there for a reason and b actively being cared about and being paid attention to and we'll move on as soon as it's as soon as it's able to. Um, as far as the actual budget numbers, um,
there's there's not really anything different to discuss. I I can say I can thank council for what is not in the budget, and that was the increase to the controllers's uh, salary, which would have had been attributed essentially
directly to me as a cost. And I'm happy that I and I understand we felt very strongly about that. But I I'm very happy that I think we came to uh a conclusion together to do the right thing. And as I told you then remains
the same now. I will not I will not uh pursue another another term beyond this this one. So, as early as whenever Miss Leard or anyone else would like to bring that forward for the next person, I will not oppose it and I'm sure it can be
done. But I will thank you guys for understanding why that was important to me and uh ultimately budget's exactly where I want it now. So, happy to answer any questions. Did I miss anything, Michelle, that you have to add come up if you like? Okay. Um, so I I would
answer any questions. >> Great. Thank you. Turn to council for any questions. Councilman Grampy Smith, >> I I just want to say again, thank you for the great job that you and your staff do. I know um you know, sort of related since my brother did that for 30
years that it's not an easy job and you have to be, you know, the intermediary and you have to go between people to make sure that everything is legit and um I know it's not easy. So, I really appreciate all that you do. >> Thank you very much. And also thank you for you know your service on on council for all those years.
>> Thank you. Appreciate it. Any other comments from questions from members of council? Counciloman, >> I'd like to express my thanks as well. Something I have learned in this role is um you know the it's a tough job that you have and it's understood that with
regard to the accounting and reporting and contracts and comp compliance that that's a really high uh you know it's a high set of skills that you have to have but that um it's the other part it's that the part where you have to have the tough conversations with people that you work with every day. We got a little bit
of a look into that earlier this week and um you know I I've worked more with with you than with you Michelle but um you know hearing your presentation every year is uh it's uh impressive and inspiring sort of the respect that you
have for one another and and the the tight ship that you run and I I wanted to thank you specifically for um the way that you engaged with me with regard to my wish to increase your salary. I um you respected why I was seeking that and
I respected your wishes um to not accept it. But um I just appreciated, you know, similarly as I was just referring to these complex conversations that you need to have. Um you do so well and I really appreciated our engagement around that topic. So thank you
>> and thank you for all your years of service on council as well as you as you depart. Any other comments or questions from council? Um, well, thank you for thank you for your presentation. Um, and my appreciation for your service was that vote that I didn't like, but
>> I appreciate it. I won't forget that. >> Yeah, no worries. All right. There's been no change to the treasurer budget, so we will move on to the law bureau. I will now recognize uh Jack Spark, city solicitor to review the law budget. >> Uh, thank you. Not much here. If you
look at the bottom line, um, from 450,000 to 473, I did the math. That's a 5.13% increase. I'm told by financial finance that that is a largely a function of the 3% across the board salary increase and
the fact that there's a 27th pay. >> All right. Turning to council for any questions for the solicitor's office. Well, I I have to express my thanks to you and your team as well. Um, we appreciate your presence at meetings and
knowing that you have to jump in regularly to explain um things. You're you've been an extremely helpful resource to us um in in real time. So, we appreciate that. Thank you. >> Thank you, Mr. Spark. And thank you, team.
Right. to accept public comments on the budgets for the administration, council, mayor, controller, treasurer, and law bureau. Turning to my left, my center, and my right. That concludes public comment. Moving on to the general fund. I will
now recognize a representative of the administration to review the general fund. >> Thank you all for being with us tonight. >> You can start and I'll jump in. Right. Thank you. Okay. If you um revenue, we
turn to page one at the beginning. I have the pie chart up there behind. This is something I like to show to show when we break down our revenues, where's the bulk of it come? It's still real estate taxes. EIT has been our most powerful mover these last couple years, but it's real estate that brings home the most revenue. And
on page one, you'll see it reached 35 million this year. 35.5 million. That's increase of 444,000. But percentage-wise, when we talk about percents, uh it moved up 1.2%. And that's a bit of the challenge. When the largest part of your revenue pie, unless
you do a tax increase, which we're not doing, uh the assessed value, there is growth, there is development, for the most part, we're develop city. So even with all the development you see, it's not going to be millions of dollars a year that we gain. So our largest number one is 1%. If you look at the slide
here, here's our real estate slide. We looked at this last year, the budget versus actual, it's very easy or very um to predict, you'll see in some of those other like EIT when it goes either above or below. We're almost always on the money. It's it's quite predictable the growth year to year. The assessed value times the millillage, there's going to
be some growth. There's people pay at the discount, but you we usually nail this when we talk about the budget itself versus what the actuals we found. This has been an accurate predictor of ours. Uh if we move down to um
on that page, try to move the slide. The next most powerful now I'm good is uh EIT the largest at 12 and a.5%. This is a $600,000 increase. And we talked about this the other night where some surplus has come the last couple years. You see in years 22, three, and four. If you
focus on the blue, we are moving up, but each year that orange is outperforming, which is a good thing. it didn't underperform like of course in 2020 but even pre- pandemic in 2018 our our actual didn't reach what our budget was. So we can have come up short sometimes and you know this growth is out of the
ordinary. We've enjoyed that growth as cities around Pennsylvania have and this is driven on uh wages and as wages increase coming out of the pandemic so the EIT. So we believe now that we've probably hit that mark that's we've been conservative to move it up because we
don't get caught on that downside. But this is a 5% growth. When we look at our mark we went from 10.8 back in 22. We're at 11.9 in 2025 and uh this year we did move it up $600,000 for that 5%. So that that
helped our budget for sure. Also on page one just below EIT I'll point to D transfer is a $100,000. We talked about some of these surpluses the other day. Uh LST 50,000 and Merkantile we moved up 150,000
to 3.4. So, if I turn my slides, these are some of the ones you see on the slide are the ones I will now highlight as we move on, but we'll take questions about any of them where we came up or what what they mean.
Staying on on page one below the act 511 tax I just spoke of. You move you'll look into city licenses and permits. You'll see permits moved up. Uh we did that last year. We added some inspectors and we moved up the budget accordingly because inspectors do inspections. inspection produces revenues and that's
what made the addition of those two staff budget neutral last year. It's reflected in the budget. Below that is housing that was um added. We talked about that last week at council. Um the the staffing uh in housing was also
moved up from 11 to to 1.3. So between the code which was the staff and the inspectors uh there's revenue generating both. You'll see in 30235 cable TV franchise actually decrease and that's
something we know people are not as linked into service electric RCN as they were. People are streaming. Uh we do have franchise and that has dropped from 700 used to be over a million dollars but in 22 we're trying to bring it down as quickly as we can and be responsible. So went from 718 last year was 620. We
dropped another 600. We think that should be on the mark. We've been trying to bring it down to keep up with that revenue. It's one of those unfortunate revenue sources that goes in the wrong direction, but that's just the sign of the times. And even with Comcast, we talked about Comcast coming in. It's not going to be really new. It's it may
replace, they may choose, but the people that if if they sign up for internet, it's not the impact. It's the cable. So, if they come to Comcast and go and stream, it's not going to make the difference. But if they go to cable, more than likely, it's just going to be a switch with RCN or service. So, we don't see anything moving from that
recent development. So, that's the highlights on page one. Uh, page two is long. It's all grants. We can take questions if you have any specific grants. But when you look at page two, I would point to the top, the second line, city health is a big number, 3.7. Three
lines down from that, that 3.4 CARES Act will all will be both be handled on next Thursday with I Miss Wendrick from the health bureau. If we move down the page to 30420
state subsy pension when we get our pension MMOs we make each year each September we do receive a reimbursement from the state and uh that moved up $300,000 received this year allowed us you'll see a couple years ago in 22 was at 42 to 46. So, that's been a nice
mover for us. And that's a $300,000 increase from last year to this to the $5 million mark. Halfway down the page 30461, loss revenue reimbursement. This is what we talked about the other night. The $2 million in of revenue in order to
balance the budget from 22 to 25 was in there. That goes away. So, you'll see that moves down two plus million. 2 million of it is because the loss revenue reimbursement is removed. And it's also that the accounts in 0901,
which is community recovery account, the affordable housing, and the homeless, those accounts are being spent down a little bit as well. And when we get to 091 in a in a little bit, we'll see what those numbers look like. But that's what that big number is. Uh so that's all I have to highlight on page two. The total
of grants is $23 million, which is a lot. The rest of it's a lot of police, a lot of fire. You'll see EMS split in there. county, federal, FBI, DEA, recycling, etc. And I'll turn to the mayor. >> Yeah, I just want to make a couple comments. Ones that I had made during the budget presentation as well is if
you just take a look on page one, um just a couple things. One is if you look at our real estate to earned income tax ratio, it's approximately 3:1. I think I've mentioned if you look at like Allentown East, they actually bring in more earned income tax than they do property tax. Um, and you know, I think
thankfully, and I'm not sure if you know, Eric was planning on going through some of those, uh, oh, I see the chart right here, the historical real estate uh, taxes. Um, but we we don't have every year in January, we essentially have somewhere between a$ 1.5 to$2
million new revenue problem because whether or not it's the pension or the medical or the guaranteed salary increases through your contracts, it's new revenue that has to be found. Um, and our ability to be able to add
natural economic growth in those real estate taxes with new properties coming on is obviously good. I mean, that's part of the reason why we are successful as a city. Other cities are able to because they're able to do things with their earned income tax, but we are
limited by law to only charging 1%. So if because we have never entered into those financial troubles that every other thirdass city in Pennsylvania just about has by which your pension gets below a certain percentage of f of uh funding percentage you have a certain
amount of debt to uh revenue ratio that then one of the things that like early act 47 intervention allows you to do is be able to raise that above 1%. So, if you take a look at our earned income tax at 1%, it's going to give us, you know, somewhere around 12 point hopefully $12.5 million next year, um it doesn't
take a math whiz to be like, even if you could just turn that into 1.1%, that's an extra $1.25 million. Um, which is equivalent to doing some quick math. Lenny's probably going to have her calculator. is like that's like a 4%
between four and 5% property tax real estate increase if you were just able to go from one to 1.1. Now, I don't like to throw other cities under the bus. That's why I when I do the charts, I show you what theirs are without using their names. People could look it up, obviously, but there's other cities that have earned income tax that are 2.0,
3.1, 3.3. The majority of their um revenues are coming from earned income tax. Ours are not. So it's a limitation we have which is because we have this long history of being financially secure that we weren't even able to do this even in the tough days 15 20 years ago
when mayors Cunningham and Callahan were looking at more difficult choices than we have to make. They weren't able to touch it because once again we were responsible of paying our pensions. We were responsible about paying off that debt. So it's one less task that we have to do. Um but if you look at that earned
income tax growth and I've used this number before as well that we can basically judge this based on our um uh now obviously not all of those people are living in the city of Bethlehem but if you look at our job creation um like the $52 tax that we pay uh between over
the last 15 years or so we've gone from about 28,000 jobs about 42,000 jobs in the city um which is which is impressive. I mean that's an impressive number. Um and part of the reason why we've seen these increases is because we've been adding jobs in a natural way
that's allowed us over the past take take Mr. Evans um tax rate going back to 1981 over the last just to give you a little Did you have your own slide on this? Am I >> No. Okay. So in the 1980s the average tax increase in the city of Bethlehem
was 5.2% from your property taxes. In the 1990s it was 2.5. In the 2000s it was 2.7. In the 2010s it was 2.6. And then in the last seven years it's been 1.1.
So it is as our city collectively not just our administration everybody the private sector the public sector previous administrations have worked to improve over a pan of 40 span of 45 years we have seen this systemic decrease in need to be able to raise our
property taxes. And that's why if you look at our particular millage rate versus the millage rate of comparable cities like we even have a lower like I was looking the other day I think that the Burough of Fountain Hill they're talking about a tax increase next year for the it's in Lehigh County and their mill rate I think is somewhere going to
be over 11 like ours for Lehigh County is I for uh is I think 6 point something >> 6.2 6.24 >> 6.21 >> 6.21 21. Sorry. So, it's just it's it is one of those systemic stories and you know the controllers's office does a
great job, you guys do a great job. Everybody kind of works as hard as we can, but if you take a look at this, you know, and you know, Mr. Evans has this. I'm sure he could email this to you if you want to, but you're looking at some times back, and I know there's often a need for nostalgia at times, but in the
80s, 1983, 11.9, 1984, 7.1, 1986, 8.9, 1995, 7.1, 2006, 12.8. I mean they were needed to be done. I mean we had good leaders then too making the right decision. We have just been able to collectively with all of the different
things moving in the right direction as a community in the public and private sector be able to create this natural income growth which has been able to allow us to minimize the amount of property tax increases that we have come forward with. But once in a while you need one and obviously there's not one
in this budget. Who knows what's going to happen in the future. But that kind of idea that we've looked at incremental ones now for 25 30 years has allowed us this opportunity to be able to get into the space where I think we've had two in the last seven years. Um and like I said over the past five
>> yeah so over the last seven years 1.1 average increase over the last 10 years going back to 2017 1.4 which is the lowest that we've had in the 50 years that we were able to track mill rates. Um, so like I said, it's just uh it's uh
it's good it's good information to know as we take a look at these things, but the um everything's continuing to move in the right direction. Thank you. >> Thank you. >> Thank you, mayor. On on page three, we'll jump to departmental earnings.
These are highlighted by roster duties from fire, police, and EMS when they cover special events. Uh this includes planning fees, zoning inspections, uh ambulance fees is a large one. That's that's a a mover for us, too. When we added that additional crew, the plus4
paramedics, there's an increase from 3.9 to 4.2 for next year. So, that was one of our gains of of revenue. Recycling is a large number, but it's quite flat. That's our recycling fee that you play pay with your water bill, and we don't have no we don't have any movement for that. This number subscribes, and of
course, the rate stays the same. Uh and then below that you'll see recycling sale of materials. It's a little volatile. It's a little sluggish. It's down a little bit but not hard hitter than the compost in the township. The municipal recreation section that municipal it's labeled municipal
enterprise 30601 that just represents $150,000 that the golf course pays to the general fund. So as I talked before, they pay their own medical, their own pension, they pay all their bills, and then they pay money to the general fund. uh recreation fees is pretty steady. The
swimming uh pool started out slow, much like the golf course, the numbers were down, but the beautiful July and great August we had, they actually ended up within a couple dollars of of budget right at 275. So, we kept that the same. Although they hit 300 last year, that
was unique year. Very dry, very hot. 275 is a good number. Skinny Rink's only halfway done. We collect half that revenue in January. the other half as we start the the rink which is now opened will will start showing up now but we we believe that two the 290 is also a good
number below the general fund charges the ones that paid through the uh based on the maximus study you'll see uh the water the sewer uh the operations with storm water are in there as well as uh the betham parking authority contribution which was reduced uh over
the last couple years you'll see in 2025 parking authority 3071 13 is up. That's the contribution they made lights which we talked about the last meeting. That's why that's 440. That was a special uh contribution that they made, but we moved it back to the standard number of
350 which we brought down which was once 500 to 400. So we reduced that number. Uh again, returns and allowances are two good pieces of news for the sore if you and you'll see on December 2nd when when we look at the audit. One of uh the
recommendations is to continue to look at the contributions from the sore fund. Can you re reduce the reliance on the sore fund and we took that and we're look working on it and you'll see there are two lines. Number first of all, number 30880, the very last one, pension debt reimbursement, that was lowered
from 1.1 to 800,000. So that's 300 less of revenue for the general fund, but it also lowers the expense to the sewer fund. So they can do other things with regard to reinvestment that Mr. Boscow talked about Monday night. The other one is 30820 right in the middle sewer
landfill payment. Many years ago, 30 years. >> Um 199 >> 98 27 years ago >> 1998 uh a large piece of debt was taken on with the sale of the landfill was a legendary couple nights I guess amongst council went many long late lot nights a
decision was made and the city ended up selling the landfill but also ending up with debt at the same time. It's complex situation and that payment was split between the sewer fund and the general fund. That's again the way it was able they were able to structure it and that's what's been going on. next year. This is the last year that is there. So
that sewer landfill payment of 400, we'll stop getting it. But when we get to debt service, that also disappears. So that between the two, that's $700,000 more the general the uh sewer fund will have next year. And that that's a good thing to properly align the way the
funds are split. Uh to wrap up revenues on page four, investment interest is something we saw a surge on. We talked about surpluses on Monday night. And if you look across the board at the top 250 to 350 that exploded in 24 when interest rates doubled when you're talking about
something that was one and two% becomes four then you can or or or even five that we were at for a while uh in 24 uh 25 is starting to come down a little bit and we're trying to track that trend and and what we believe is a responsible move is to reduce that revenue item from
the 11 one down to the 750. And again, it's a painful when a revenue is moving in the wrong direction going down, but we we believe we want to stay ahead of it. That's what we have everyone's heard that's forecasted. So, that again is a um an addition and and a significant
change. Miscellaneous revenues, escrow 30904 is a large number that represents a 27th pay that we talked in great detail about a couple weeks ago. We have the memo that supported that. So that savings
that we talked about appears there as a revenue and then the expense will be spread out to the 27 pay across all salaries. And the last one to 30927 host fee moved from the 99 where you'll see from it's been consistent since you know 10 12 years at that 98 to 99 range we
get it quarterly at 249 that act 42 that I discussed on Monday night appears and that's what causes the host fee to go from 99 to 114 in 2026. So our total budget balanced is at 112792300. If you look to the bottom of the page,
expenditures by category, you'll notice in that category, personnel costs are the largest single thing we do. 74 million of the 112 is personnel. So that's it's a service industry. It's our people that we invest in to make the things go and you get the things done.
>> So that's a wrap on revenues. We'll take any questions if you have specific questions on any line items. >> All right. Thank you so much, Mr. Evans. I will now turn to the chair of the finance committee. Um, so, Councilwoman Crampy Smith, do you have any questions?
>> Thank you. Yeah, I just have a few. Um, on page two, uh, Eric, under the the lost revenue and reimbursement. Okay. So, that's 10 million and then it's going to go down to 7.5 for next year. That's the anticipated. Um, what is that
earmarked for? Is that I mean >> if if you turn to page 171. >> Okay. >> Oh 173 174. >> Okay. >> It is the total of
95011 community recovery fund >> is 1.6 >> 174 >> I'm sorry 175. 175. >> Okay. I'm sorry. the um >> 95011 right in the middle >> recovery fund. Okay. >> 16
>> uh 95041 homeless initiative 1.951 >> and affordable housing 95042 for the 4 million. >> So it's the homeless initiative, affordable housing, and the community recovery fund. >> Yes, those three would total up to
>> last year when you just >> for that. Okay. And then what about the ambulance fees? because that's um that's on page three. That's a pretty big increase, right? That we we where let me see >> that.
>> Well, we expect I mean it was 39 and we're expecting to go to 42, but it's it's consistently seems to go up except for LA last it went down a little last year. It moved up that 39 shot was taken at
9:30. It was projected, we made that projection on when we were printing the budget, what it's going to be for 2025. So when you look at that number, 2025 isn't done yet. We expect it to reach over around 43 close to it.
>> So again, we're trying to move it up conservatively. So we believe the number will be there. We don't >> Okay. >> Yeah. Sure. And I mean, I'm sure it's used to for the general operations, but um I'm presuming there's a surplus above and beyond the general operations with
the ambulance or is it just meeting >> the expenses for you know EMS and the ambulance service? >> So you're saying is the 43 equal to everything that EMS does as a bureau? That that's something I don't have. I I we can take a look exactly what that
>> for many years it was below. always to look at it and study >> because we have it under earnings but um you know we're not accounting for I don't have the expenses right here so I'm just wondering what the you know the the mean like does it break the net >> if it was its own fund because years ago
we talked about or you know just considered spinning it off does it some places do it privately which we've never >> endorsed I think um it was talked about a couple mayors ago and the decision at that time was to keep it in house even though it was underwater or losing losing not losing money but costing more
to provide and then revenues are brought in. This recent change at the federal level of Medicaid reimbursement >> and Medicare reimbursements >> Medicare reimbursement at the time we also added the crew resulted in this increase in revenues that you see. So
it's a combination of the two. More recently we haven't done a full breakdown because it's not its own individual fund where it stands stands alone in that way. And I had asked Lenny, they they do not it does not cover. So the general fund in our taxes subsidize. >> So there's not an excess of that.
>> They they excess the fees oftentimes because the people that are um I mean whatever percentage of people that are on Medicaid or Medicare that call for the 911 transport are not paying what the full cost is. So then that becomes
something that the taxpayers end up picking up. >> Okay, that makes sense. Thanks. And um the only other final question I think I have is the um page for the page the escrow account 30904
the revenues. So can you just explain that's significant from well I mean it's fluctuates all over but we're going from 400,000 to 2.2 million we're anticipating. Yeah, that was unique, sir. I think I believe last year the number that we had in there was was that
from the U Academy? >> Yeah, last year we set that up from the fire academy. We sent I think 262,500 was from the 18 cadetses that we sent to the
academy in 20 25. We put that money aside. That's how much we brought forward of it. this year. We have not made that move yet. We'll make that transfer in December like we did last year. It'll show up in the budget. So, it doesn't appear here. Although, we're
going to use escro funds once we made the transfer to pay for 10 of the 15 cadetses. So, what you're seeing right now, that full 2205 >> is all for that 27th pay, which is the was in the memo I provided the front and
back. It said this is happens every 11 years. So we had a escrow account labeled 27th pay made up of a number of different deposits. So we bring that in as revenue to offset the expense of the 27 pay that's spread out through all the salary accounts. >> So that doesn't look as good as it
appears. We have it already. >> It's a one it's a one time that we brought in that been s you know saving on the side for the express purpose. Now the story becomes to do it again sometime before 2038. Yeah. At whatever rate we can do. >> Right. And the only other thing I know
we talked about last year we had a lot a real lot of transfers remember in reconciliations and I think we waited till we had a meeting and it was like in February or March remember the finance meeting and we said we would definitely try to look at not having that happen again.
>> Yeah. what we're always going to have to do, it's a matter of like um making it a longer meeting like making it a one-off because there's everything that happens like especially example the capital what we talked about Monday night uh the capital plan or the capital budget
there's guesses or not not guesses we take a shot we used to guess how much projects will get done and put a number and if Mike alcohol thought the project was done he'd put a zero and if we didn't did it we'd have to and didn't spend the money in January we have to say guess what I didn't finish it the money wasn't spent we need to add to the budget and do that dozens of times. We
felt we felt to be more consistent than predicting how projects could finish uh is to take a snapshot at 9:30 September 30th. Use those numbers. What are the accounts then? Some of the projects some of the accounts stayed exactly the same. Sometimes a purchase was made or the
project was complete and the money was spent down. We don't know that. The last three months are unknown. So when we get to 1231, we know what happened. We have to make those calculations and then come to council and there's a number of accounts that do it in the capital budget. We also do it with the those
0901 accounts we talked about with the ARPA accounts, >> right? >> To make happen with the balances, we don't know. We have to stop at some point and put a number in there. So, we do it and when we do that, we take our time to say this happened or didn't happen. So, it's a big number. And if you know if we take our time and make
either do a I can't remember what happened the night whether it was a six o'clock. It was I think there was just a lot of memos. So just do one or start at 5:30 to Yeah. >> But I remember I I understand all that but remember we had said that because there was so many >> that we try to do them not just wait
because it was like fe February and March that we would try to do them as soon as we can earlier in year. You know what I mean? >> Earlier the better because Yeah. It opens up the money. >> Everyone's you can reconcile and do them. You know, that's just my recommendation because we we agreed to that. We said it was too much. Remember, it was a lot.
>> Yeah. And I I think part of the challenge on the council side is and it's not necessarily existed in 2025, but in 2026 is if you want them to go to finance committee, a finance committee doesn't exist until like the end of January. So like there's no So in 20 in
in January of 20 or February 2025, the choice is either like you handle some of them in January and some of them in February. sudden the story you're telling in January is only partly about how the year ends and you go to February. The challenge in January of 2026 will be >> when do those finance committee when are
the finance committee assignments because we've gone through this before in years past. Um >> it just last year was really um more significant than other years. You know what I mean? We've done it before, but it just was like there was such a volume of reconciliations and transfers. Um, and you know, that's why the ones that
we can do earlier the better, you know, and not wait until just have all of them like in March. >> Yeah. And one of the things that I think, and I'm sure Mr. Evans pointed this out at some point in the last two nights, is like that 2025 budget with transfers number is often September 30th. So then some of our costs, like
for example, like the pension payment we get, like that's like a one-time thing. So if it says $5 million and it's $5 million next year, it's like, oh, we got all of it. But it just becomes confusing because the old way was like the negative was as Mr. Evans was saying, it's like you would have have to anticipate what your revenue was going
to be over the final three months. So then council members would rightfully be in like January. It's like in the in the book it said it was going to be 4.2 and we got 4.0 because we were trying to assume on what the earnings were going to be for the rest of for the rest of the year. So, I've often wondered why we don't just put like September 30th like
number like right there rather than 2025 budget with transfers. Um, but as soon as council kind of has the finance committee, unless it's a situation where people just wanted us to bring all of those to council as a whole, but they have to announce the meeting, they have to do all those type of things. But
however it is that makes the most amount of sense, we'll certainly be fine with it if it's as early as possible there. Um, but you know, whatever is practical. That's all I have. Thank you. >> Right. Uh turning to Councilwoman Cleekch
questions you have. Um turning to other council members. Does anyone have Councilman Callahan? >> So, Mr. Svens on the um on the earned income tax, that's 1% of of the salary of of everybody in the city. >> Yeah.
>> All right. So, and then um >> Yeah. people that live here, not people that work here. >> Yeah. Yeah. People live here. >> Yes. And then we also, as Lenny points out, it's like I think >> like but if you ever ran the numbers like the 1% because then like the 12 million that we're going to get is half
of what people pay. >> Yeah. >> Because the other half goes to the school district. So the total amount of 1% of all the people working is twice that number. We just get half of it in the school district. >> Yeah. Working and living here. >> All right. So on the uh on on the
permits, if someone's pulling a permit, is that based on the just a flat fee or is that based on the amount of the project? >> I think it depends on which permit is that they're pulling. And I think that's a question to ask Miss Collins, Mr.
Simson next week. Um but I think it depends on the nature of what I I I think it's a combination. It's combination of flat fees and then also on the nature of the project. Yes. >> And that would be the same on on the licenses on the city licenses.
>> Uh I think it's probably less on that but I don't know. That's a good question for Mr. Simson and Miss Collins. >> I I just ask because I want to make sure that you know in the months to come I I do want to have a discussion. You know how I feel about the Martin Tower site.
I think with that property with those two medical office buildings getting done. I think it's a shame that we don't try to roll right into getting the rest of the property developed. Uh I know we've had philosophical differences as
far as what uh should be done there, but I think if if we it'd be a shame to let it sit there for the next four years because the property uh the numbers don't pencil out for the developers. uh because it wasn't a a a blank piece of
land um that they just went up to farmland. There was a lot of costs involved, you know, o over $30 million. So just in the this is just a hypothetical and if I'm wrong, correct me just on the EIT taxes then if it's 1%
let's say they wanted to do a,000 units there because the the 1,800 I told you is off the charts. It's it's off the books. They're not doing it. But if they put a thousand units there, so most of them would be one and two bedrooms. Let's say there's 1,500 people live
living on that site. 1,500 people uh they're they're probably making $80,000 a year to afford to live in those things. You're looking at $1.2 million a year in loss revenue per year. It's it's
it's $80,000 times 01. It's $800 per, right? >> And what's what's 800 times, 1500? >> Well, the the 1500 people. >> Yeah. >> Right. That takes you to 1.2 million.
And over a 4-year period, if it sits there for the next four years, we're losing $4.8 million just in EIT tax. We could probably take that money and put it into affordable housing and other things. I'm just I'm just >> Yeah. And I and I would say like if somebody was going to build that many, they're going to obviously build it in
phases and things like that. So it's going to be a >> that's my point. And if if they presented plans today, which they're not. They have nothing to present because there there's nothing going on there. We're still looking at a year and a half. >> Yeah.
>> If they broke ground today, it's still a year and a half before anything's built. >> Yeah. And I would just I would just say two quick things. One is because I I want to correct myself as as Lenny did. It's like we do get half of that as I had said before. >> Right. Right. >> So then we don't we don't get >> So even when it would be fully built out at some point,
>> if the people were making that, you're not getting 1.5 million, you're getting 750,000, >> right? But that also doesn't count um the all the new revenue >> on real estate taxes and and because we're looking at like
hundreds of millions of dollars in in in new real estate or or new development there. So, I I'm just talking we need someone needs to find out what the real numbers are all about. What are we losing there by the property sitting there? What's the city losing per year
uh in EIT taxes and permits and in uh um I mean if if it's a percentage of the of of the development I I I don't even know what the the I don't even know what the cost would be or what the fees for the cities uh would be for all the permits
there between electrical and plumbing and and and and everything else. That's why I want someone to to try to find what how much money are we losing per year by letting the property sit there and then multiply it times the next four years because >> and Mr. Ken, we've had this conversation
as far as like what we've had the conversation about, but like we're not letting anything sit anywhere. Like we don't own the property like as a land owner and like I said, we don't need to play play through the situation again as far as like how we have how we feel about this and so on and so forth. And you know, it is it is obviously the
situation that's in front of us, but we are not responsible for what private property owners do with their own property. And if somebody makes the choice not to invest there, the language that we use as far as like we're not
letting it sit there, like the property owners have the ability to to do something there or or not to. So like to hit the ball into the public's court to say it's our responsibility to be able to do something is just not is not the
it's not the words that I would use to describe what the situation is. Well, I would because it's it's obviously very difficult piece of property to get developed because of the all the uh money that had to go into the property in order to get it to where it is right
now. Right now, it's just a flat lot and it doesn't pencil according to the developers uh to do anything there as it is right now without some type of incentive program. And so we either let it sit there for the next four years, and I
know you're you're not saying it, but to the developers, if they let that property sit there for the next four years, it's not losing value. It's going to increase in value. It's the most expensive property in in Eastern Pennsylvania. So, they're already p it's already paid off. But they if the
project doesn't pencil, why would they not going they've not presented anything? They've not have not told me anything about it. They haven't told you anything about it or Miss Collins about it. If the property just sits there, it which it's going to for the next four years, there's nothing even presented
right now. And even if something was presented today, it's still another two years down the road be, you know, a year and a half down the road before even break ground and probably two two and a half years down the road before the first phase is even uh built. So, I'm
just trying to figure out how much money are we losing by not incentivizing this project going forward >> by not by not giving the property owner more money. >> We're not. >> What I'm saying though is like so the equation to do and like I said, we don't need to talk about this now. We've talked about it before. I think it's
something if you want to talk to Miss Collins, Mr. Simonson about what the numbers are and so on and so forth. But it comes down to, as we've talked about, as a general principle, when you're talking about tax incentives, you're offering a lot of different balance things. And a lot of what our feelings are, not just here, but throughout the
city as far as neighborhood appropriate development, comes from people who live in the city of Bethlehem who say, "I don't want this here. I don't want this here. I don't want this here." Like, there isn't necessarily a project that exists there. But we have the same rationale throughout the entire city of Bethlehem is that we will say that we
support projects that we think reflect what people want. So in this particular case, something that we have shared many times is a mix of housing types, a mix of income levels, a mix of all those different things that we believe that we hear from people even from people who
often criticize what is natural market rate development now in the city of Bethlehem that this is the largest. So there's a lot of different balancing interests here, but obviously part of the equation is the idea that like whatever it is that somebody has or
doesn't have to be able to give them more money as far as that equation is concerned becomes a costbenefit analysis. What are your opportunities that you're losing or you are gaining as far as if this is revenue that goes here? what are we not getting back
versus somebody sitting on a property deciding not to do anything, deciding not to cut the grass. They're not the only property owner that we do this same dance with. What I will say, and there can be a difference of opinion on this, is multiple mayors, multiple administrations, multiple zoning hearing
boards for 20, 25, 30 years, there's been the same type of conversation about where do we need to give up tax revenue to help to be able to push ahead properties and where is it that the market's going to take care of itself. And people in the city of Bethlehem have very strong feelings about that. We've
seen that as we have restricted what the lura was from 20 25 years ago where at one point we needed that because of what was going on here and the promises and obligations we had versus now that the market got going and people were like wait a second do we really need to incentivize that type of development
there or if we incentivize that type of development who's going to do the project and so on and so forth. So it is it is a it is a kind of global conversation I think as far as all of these things are concerned and we we will continue to think about it have
interactions but I would just say the kind of level of trust that goes into these decisions about what we support and what we don't support is really the same equation that if somebody came forward I'm just making this up somebody came forward with 600 700 800 900
apartments. We have people that criticize apartments going up on half an acre and say, "Why don't they just decide to put one or two single family homes there rather than put up all those apartments, which doesn't make any sense." You do that over there, you're going to have a different conversation with people. So, we are very respectful
of what surrounding neighborhoods are, of what our neighborhoods at work, making things feel like they're Bethlehem and all those different types of things. We we deal with we deal with the budget every single the thing that we got to understand it's new revenue even if it's only 50% of
that it's new revenue coming in and I don't want to make this but the one thing that I think we can all agree on on the if you look at the numbers on the southside affordable housing project right it's unaffordable we're we're do we're building how many units there 120
>> two phases 120 >> 120 total >> it's costing $50 million Because the idea is is that you're obviously then limit >> $400,000 a unit. >> Hey gentlemen, I'm I'm I'm sorry. I feel like we're just getting a little because I appreciate the conversation about >> you brought up the other thing. I'm just
saying though I the one thing that's a that's why it doesn't pencil over there. That's what you I I think we're not understanding. It's a discussion we can have and follow meetings, but >> the affordable housing the affordable housing plan on the southside is is not affordable. We're spending $50 million
that that should cost about $18 to $20 million to build those amount of units over there. So, the developer is getting paid an extra 20 $25 million up front for his profit over what a normal developer would take over a 30-year
period. I mean, it those units over there are $450,000 a unit. That's what it's coming out though. >> And President Leon, I will finish up my comments here, but I just think it's an important thing because I don't think I'm going to be here for the budget hearing next week. is that like the reason why like units like that cost that much is because you don't get the
you don't get the natural market rate over the future. So they cost more expensive. They're more expensive here and the project is more expensive because you don't get the return on the investment as the guarantee that people there get to live in affordability for so on and so forth. Correct. So what the
conversation is is how do you create as much natural affordable housing as possible? How many how do you put as many strings as possible which we've talked about before but I think it as I've said it's a conversation for a different a different day. >> It is and I all I want to do with all the only thing bring this up was that I
want to find out how much money by not doing anything over there for the next four years. How much money is the city not taking in? And that's something that I I want to moving into the new year I'd like to do. I I I want to find out real numbers. How much money are we losing
EIT tax permits and real estate taxes by not doing anything and letting it sit there for four years? Because I think it'd be a shame to the city and to the taxpayers to lose that amount of money which I think would be sub substantial amount of money. So >> yeah, I think a complex meeting about this would be appropriate at a different point. I take your No, you're fine. I I
take your point about the IT and all that stuff. I just want to stay on track with with this. So, another meeting about this very >> I just brought it up tonight because the the um the I didn't even think about the ET >> Yeah.
>> Uh money coming in, but then I started thinking, you know, >> how do we bringing more money with the EIT, bringing more people into the city. >> So, I just that's why it stimulated the conversation and I apologize if I got off track a little bit and thank you. >> No, thank you so much. Um so, I will
turn to other members of council. Did you have anything, Councilman? Okay. Uh, the only question I really had was I was looking at some of the other things that we've um, and it's just a point of interest on my part. I was looking at some of the the things that we have been over time and we've also
talked about the earned income tax. I was curious about this this deed transfer tax if if there's anything we ever do to manipulate that like to increase the deed transfer tax. Is that something that they have historically done or is that something that's available to us to do? I'm not suggesting that we increase the
deansfer tax at all. I'm just curious as to what mechanisms Allen >> town there's a story about Allentown looking if I recall. We have not >> considered that you know it it moves on its own with the price of housing. Yeah, that's why you see our our growth
>> even when interest rates went up it activity was still high and prices were high. So when you look at the equation, the numbers still grew when rates came down and the housing really took off. Then it got big, but it has remained a strong income revenue driver for us. But
no, we have not considered the visiting that ordinance or changing the >> D. Again, I'm not I'm not suggesting that it was I had read about time and I was thinking about other fun other streams of revenue that we have and what we can and can't manipulate it. This doesn't seem like regressive. It seems
like, you know, it's a a service that's being rendered. So, increasing that to me feels like increasing a fee as you use it. So, it was just a point of interest for me, not a suggestion that we increase our deed transfer tax. All right. So, I think that's everything
from our general fund. Um, I'm going to hold all public comment to the end of the meeting. Uh, so we'll move on to the general expenses. I will recognize the representative of the administration to >> Okay, >> go ahead and do your thing, Eric.
>> Thank you. On page 171 are the numbers for general expense and 170 has a description of what it is and you'll see them on 911 listed by line item. The biggest numbers here are the pensions. Uh total general expenses are 27 million, but uh please pension is 7
million, fire three, PMRS 3.3. So it's a total of $13 million of our our budget is for pensions. Moving down the city insurance package which raises I think it rose around 8 8%
that's property liability at 1.1. The other large number I'd point to is medical which is have been very much controlled compared to our peers. We do use BSI as an adviser for our medical. They put RFPs out regularly. We are with Capital Blue Cross. We we do take a look
at a number of medical providers, prescription, dental, stop-loss. We make decisions on each of those when they come back. But we're happy with the that number for sure. When you when we talk about medical being a large very large, if it can be contained and controlled, it has, you know, that we are
self-insured. Uh we get that number each Thursday. When we take a look, is it 200,000 250, it's okay. some some weeks it's 400,000 but in the end uh each of the last couple years the number has been has been very stable so we're very
happy with our medical I will um make a couple comments about pension number one you you go ahead I just want to add to the medical and just repeat what I had said of the budget hearings obviously what is going on we are not on an island where we are the only people that pay our providers and our hospitals and so
on and so forth and all of the different medical conversations that are going on as far as subsidies are concerned for ACA pay and Medicaid and all those kind of things. They will eventually catch up with us and they will catch up with our own employees. Now, that may or may not happen in 2026,
but it is just it is a time bomb waiting to go off when you take a look at the commercial markets versus the governmental markets there and it is going to affect care and everything else. So, as those conversations are going, I know some states have seen the increases in the subsidies go up over
100%. There's talk now about health savings accounts as being something that people have, which would likely take healthy people off the exchanges. Um, which would not be good. We need as many people as possible in the same exchange. Everybody's dancing around like what that means over the long term is like
eventually we need everybody in the same pool to be able to drive down the cost based on how long people are living and what the cost of healthcare is going to be. Um, but it just just wanted I want to be clear about that. So if we come back at some point in 2026 or the 2027 budget and say that like the medical
landscape has changed, it is going to be related to what are those subsidized markets currently. I think like 80% of everybody that rece that receives an ACA subsidy or 80 80% of the $24 million 24 million people that are currently on the exchanges get some level of subsidy. And
a lot of those people just don't even know yet um about what that's going to mean for their individual um uh kind of costs going forward. So this will be something we may come back on. Uh the slide you have in front of you is
a a scan of the memo you get. You can see this one was in August. We know exactly what these numbers unlike a lot of the budget where we're making projections based on patterns or insights. These are actual numbers we know are going to be uh to the dollar. Let's see the employee contribution
that's a known uh and based on the number in the worksheets we get from actuary when we run the worksheets we we deliver this to you. So we know in August what it is going to be for the next year. So those three numbers you see in the tan match up with what's in your book. Second point about pensions is they didn't move this year. It's an
every other year thing. When they get reevaluated actuary takes a whole look at what our fund is. We know there's money going in from the employees. The fund goes to work, hopefully makes enough money to pay all the outflow, all the pensioners. Any shortfalls made up
by what is the MMO? So the vulnerable part is the MMO. The the market and the funds will hopefully do well enough that it controls our MMO. If you look at 2024, the left column, it's 11 million for all three of them. If you do, I think you do remember last year because
of the performance earlier in 2122 we look at the increase two $ 1.9 million we absorbed last year as an increased expense when the police went from6 to $7 million in one year. This year though because it's not an
actuarial year. Uh it just only changes due to the changes in salaries. So when we ran our numbers you'll see police only up 10,000. That's rounding air based on the numbers we're talking about. Fire uh actually went down a little bit and PMRS went up a little
bit. So, uh $17,000 change in a $13 million is a tenth of a a percent. So, we would say that pension stayed flat. So, if medical and pension, two of the biggest drivers, stayed flat, that's a very good thing and that's will help control our budget this year.
This slide just shows you there's three sections there. That first one where it says last. That's the hit. When we got 1.9, that's that's our market performance of our pension funds, fire and police. So when you see when it increased enough um to carry the one that says now, that's what was in the
book, that's what we're paying. And uh 20 20, sorry, what? That was 21, I'm sorry. 21 and 22. 21 was up 15. 22 was big enough of a hit. It was down 10%. So over two years, 5% growth in our
fund resulted in not enough. Too much was going out. That didn't bring enough in and resulted in the large MMOs. What we know going forward in the column labeled next is a performance in 23 and 24 was good. That's locked in. 23 and 24 are in our past. So those calculations
would be based on an 11% return and a nine. So cumulative instead of a 5% this next MMO will be based on a 20% growth to our fund in the last two years. So 26 we know we feel optimistic about the 27 to 28 MMO because we already know the
calculations that will be used to do the actuarial studies. And just to add to that, and I I check with Miss Lazarek, is that the one thing that may go down a little bit, we'll see what it is, like the employee contributions, because if obviously we've had a lot of retirements
um both in the fire department and the police department, obviously if somebody retires, even if they're paying the same percentage that the previous person was doing, you're bringing in less revenue. Um so that's just something as well to like think about is that those employee contributions, which I think work out to I forget what it what is seven and a half percent.
>> Yeah. >> Yeah. is that number will uh that number may decrease which might yeah increase our contribution a little bit because we have younger people and not to pass. It's one of the reasons why
as well is as people some people retire and you hire younger employees your medical then just based on the kind of actuarial numbers can sometimes stay flat. So it just kind of balances out on both sides. All right, pension. We move to medical.
I talked about that in the line item that just shows the the graph of because we are self-insured. It's a little little more difficult to nail it down. We don't pay premiums. We pay as we go. So, uh we try and move it up and down accordingly and you see the budget moving up and down and also their
response. So, we try and keep it on the mark. Uh then we'll turn Okay, turn to civic is the next page, Councilwoman Leon. and then we'll take questions on general and civic together. >> Sounds good. >> Because they're in the same section. Okay. Civic is a quick one. These are
smaller numbers uh in these categories. The largest one of course is the library. That does not change. We make a large contribution library. It will remain at 1.15. I will mention that community recovery fund, homeless initiative, affordable housing that councilwoman Smith asked
about earlier will be addressed on Thursday night. Those are really controlled by uh community economic development. So when Miss Collins is here next Thursday, we can take questions about that. But anything else we could also um take questions about,
including the Fourth of July, uh the fireworks contract, the Halloween parade, Shamrock here, the Shamrock parade, fine arts and human relations commissions are are funded in here as well as the sister city. Uh they're typically on the um small amounts, 10 to 20,000. We're not talking about
million-dollar accounts in here other than the four I previously mentioned. So, that wraps up general and civic that we would take any questions about those. >> Awesome. We'll start with the the finance committee. Uh because there were the general, so turn to Councilman Camy
Smith. Do you have any questions over general or civic expenses? >> Thank you. Um no, I don't think so. So, I think we'll get more into specifics of the other the recovery fund and the housing next week. Um, no, I don't have any questions. Thank
you. >> Okay. Sorry to councilman Cle. Any questions? >> Yes. Thank you. >> I just had um a couple of quick questions. First on um the general expenses. I I saw the um line item for accumulated sick leave. Um do you also
account for accumulated vacation time? I don't see it on the paid out. >> Yeah. If that comes up in the in a severance situation that that would be paid out of the 401 account. The salaries was embedded as the way that >> Okay. But you account for it.
>> Yeah. >> Okay. Yeah. Something that I've learned over the last couple of years is, you know, with the carryover that you have to have it on your balance sheet because if everybody quit tomorrow, you would have to pay them all out on their accumulated. Mhm. We have that compensated.
>> It's like a or it's an op. >> Can you repeat what you Yeah. Could you I'm sorry I can't hear you. >> Can you go to the microphone? >> Um we have on our balance sheets through the audit, they're called OPEDs. It's a line that it's um other benefits other
than pension benefits. So as like I earn vacation and I'm not taking and accumulating them in sick days, we have a liability on our books for that. >> Okay, good. And just one question on that. How much can people carry over from year to year? >> Um vacation days five days, but then
they have to use it the first quarter. Sick days, I think it's 210. Is it is that I'm not sure the max they carry, but I'm not sure what the max >> 210 hours. >> 210 days. >> Oh, 210 days. Okay. >> For sick. >> Yeah. Okay. And they have to use those five days in
the first quarter of the next year. They carry over vacation use carried over to the first quarter of the year. >> Wow. Okay. That's lean and and Yeah. That keeps you from having a big liability on your books. Yeah. >> Cool. Um and then I did um wonder if our do our is there a cost share on the
premiums for medical for our employees or do or is it a fully >> no >> 100% paid by >> there's a family plan and and a single plan and you have to pay um a certain amount and then um also there's dental there's different tiers so you can pick
what tier you want >> and there are premiums associated for the employees. Okay, great. Um, those are my two questions on that. And now, and then on the civic budget, um, I noticed that the fine arts commission did ask for a slight increase in their
budget to $15,000 to, uh, account for, you know, the cost of everything going up. Um, and, uh, tariffs and all kinds of stuff. Uh, and I do see that that's not in here. Is that just that um you didn't get that
request in time to consider it or did you decide not to increase it? So their their line item is 12,000 in the 2026 budget, but in their letter um which granted is from September. So >> yeah, it was that in a matter of attempting to balance a budget all the
ask it, you know, we did note that it was something that's almost doubled of what was 2022 has grown quite rapidly. So are also the growth went seven to 10 and then to 12 and then to to 15. So we did move it up but as we tried to share
the wealth to make sure the asks were all being met you know there's a lot of asks that come across from all the departments as well that get curved a bit that you know we do move it up but don't not everyone gets everything they ask for kind of thing but and I would add to that though and this is a good example is the the ones where there are
expenditures that aren't involving city employees often become somewhat cumbersome to necessarily execute. So, the kind of at least what I've said is the implicit message all the time is like if there is something else that comes up in the middle of the year that's like we really want to do this thing and we've spent our money and we
need another $2,000, we'll figure it out. But it's just like and I don't want to speak for Mr. Controller, but as a as a general like idea like these those type of like here's $10,000 or 12,000 or $7,000 to this commission to spend. it
gets a little bit clunky as far as what the execution of those dollars looks like and it's hard to come up with a kind of one-sizefits-all process for it, especially when you're not dealing with people that are city employees, >> right? >> So, it's just a it's a it's a concern.
Once again, I don't want to speak for Mr. But it is something that I have felt before where occasionally something be like somebody spent this $175 but then ends up leading to 13 hours of staff time trying to figure out how >> figure out how to figure out how it how it is. But and I say this to them too is
like if they came to the early earlier that they come to us to say look this is an expenditure that we're looking at next year the year after whatever it is the easier it is to be able to set up that plan and so on and so forth. So that's just the >> Thank you. And um
the the Tonabayashi Sister City Commission um they're kind of Yeah, they have they do have a cash balance. It just it does seem like they're running a little it's a little scary when I looked at their numbers. I was so um but I but I don't see I don't see that they
specifically asked for a for a an increase. >> No. And those sister city ones come down to who's hosting who and who's coming or somebody going. Um, and that so they kind of go year to year. But once again, it's the same thing. It's like if there's an expense that you're looking for
>> down the road and you let us know about as soon as possible, it's easier to plan for that in a way that like Mr. Jello's learned that with World Heritage. >> It's just like the current process, which is kind of why we're looking at a different model going forward is is is clunky and inefficient and very
timeconuming. Got it. Thank you. >> Right. Still on the topic of general and civic expenses. Any other questions or comments from council members? >> Um I only had two comments. Uh one I just wanted to pass on my gratitude to Miss Santoro and all of her work with
the sister city in in Patas. I've been down there a couple of times and it's actually very wellreceived in the community down in Patas and it is her work there was remarkable. Um the other thing was I read a book when I first got on council called public pension
obligations and city solveny which is riveting reading um if you're ever bored and want to die by book. But there's something that you guys say quite often and that's that we are going to keep our promises meaning these pension obligations. Um, and it's a statement that I think I've become quite
accustomed to hearing at this point. But it is it feels like a herculean task to accomplish that year after year. Um, especially when you read so many of these case studies where cities become insolvent because of the pension obligation. So, it's just it's it's once
again commendable on the part of the administration, your your financial team, um how well we continue to meet these obligations because they are promises that we make to our city workers, our firefighters, our police officers. Um and it is worth doing and and it's done well in the city and I
appreciate that. >> Yeah. And I would add to that like I mean same thing with teachers and it's changed since 2010, but I mean teachers pay seven and a half% of their salary. I remember having this conversation with teachers at when I was working when they would understand they didn't understand always like the math behind tough
decisions that the school district was making but I just took I just did some extrapolating as far as um uh not an actuary but I just ran some numbers put them up on the board and it was like look if you're paying seven and a half% of your salary over the next 35 years and then you live 25 years and you're
able to retire as like a teacher at like your two and a half multiplier how many years you work. So if you work 35 years times two and a half it's 87%. So you get 87% of your final three years of average and so on and so forth. I mean you end up paying like $175,000
in contributions and you end up getting back if you live 25 years or 20 years. You're getting 1.5 1.7 million. Some of that comes from growth in the stock market, but a lot of that comes from the taxpayers. And it is we want good people to want to be teachers. We want good people to want to be police officers.
But there is a there's obviously a cost there that we're constantly trying to think about as far as who should bear that cost. How much should and how can we both treat people with respect and a number that will make them want to be here, but also understand that like it's
very easy to get into financial trouble because you can say we're not going to pay into this and then lower what your obligation is like 15 or 20 years from now where it's somebody else which I talked about at the budget thing. I was like, "We're not going to do that. No one's ever going to come back and be like, they didn't make a pension payment, so they could go build
something else." Like, we've just found ways to do that without them doing that. >> Well, once again, for anybody listening online, all of our captive audience, pension, public pension obligations and city solvency, if you're interested in that book. All right. So, we're >> Can I ask a quick question? >> Sure.
>> Uh, so is are we still talking about uh civic expenses? >> Yes. >> Okay. So on page 175, so um we're spending four $4 million the $4 million for the affordable housing. Is that going towards the
>> Miss Collins will talk about this next week, but that's not it's the same thing happens with the homeless initiative and the community recovery fund is that those are carryover numbers. One of the things Mr. Tulo and Miss Collins have laid out is like how we intend to spend that $4.2 million over the next like
five, six, seven years. Is that ARPA money? >> But that that is part of the ARPA dollars. Yes, >> we're going to talk about that next week then. >> Well, you're going to talk about those individual right those those individual ones as I think Mr. Evans has talked about the money that we have put aside versus loss revenue versus the cap the
avoiding the capital borrowings. But those numbers the 1.9 is associated with the bees expansion. The community recovery fund is the number that has been allocated um for the next couple of years as far as the applications like that. And then the affordable housing
number which Mr. Tulle and Miss Collins is going into is spoken for though in between our different projects that we currently have. But it's all not going to get spent next year. So if like you went back like to like 2022, that was when that number was $5 million. And so then like if you looked at the 2022
budget, it was like $5 million. And then the 2023 budget would have been like, you know, we only spent $20,000 then and then we spent $542,000. So that 4.2 too is like that's not getting spent in 2026. That's going to get spent over the next like five, six years,
>> right? >> All right. So, we're going to move on to debt services. Uh turning to you once again, Mr. Evans. >> Thank you. We talked about this a little bit the other night. So, this will be quick to wrap up our wrap up our night quick when I >> rage quit. Rage put in the middle of it,
please. >> Okay. points about debt service. Number one, cities relied on a bot in issuance every other year. So, this is repeat from Monday night. It ties into our story about um the capital reserves. Plus, there have been some additional borrowings as needed in the past for
different topics. The last borrowing was 2019. Uh we do plan to use 22 million reserves to fund 2026 capital needs. So, there'll be no additional debt requests this year. Last bullet point was a bullet point carried over from last year's slide is that we
will continue to review a restructure opportunity in 2026. As I said in under investment income that rates are expected or forecasted to drop. We also want to look at that opportunity on the debt side less income but it's also going to be cheaper to borrow. So we
have debt on page 170 180 and 181 is where you see all the ones we have all the pieces the one to focus on is that I'll speak about is to the right column the total it's 10.8 next year the following year scheduled to be 10.8 then the 10
this chart is something you're familiar with from Monday night that um our debt service in 2022 is 121 million you can see how level it's been 10.8 28 from 22 3 4 5 6 uh with a small drop off coming up in 2028. It was 121. In the first
four years of this administration, we've paid off $44 million. So that 121 is now down to 77. You'll see that ties to your book. If you look on page 181, right hand column bottom, there's that same number, 77. It adds up. The next four
years, as it stands, we're due to pay $41 million in debt. That would be 26 to 29. Then after that, there's small pieces. Everything below that $10 million bar line. But if you look at those last five pieces, those last five years, they total $36 million uh with
the idea they would be all paid by 2034. Uh that does imply that there are no changes at all. But uh any conversation we have about the changing of debt, uh we will, as we've said, have paid it very aggressively going back to 2015. This
was something not was at 121 but it was at 170 million to pay off 140 million to get it down to this low over this period of time has been quite aggressive. So we will explore opportunities to maybe remove some of that what I call tabletop when you see a
couple flat years and then just drops off by millions. Why it would be nice to be here the year the three or four millions it's a lot easier to budget if you more put together more of a glide pattern have a a little drop each year even if it adds a year or two if the rates are right it may make sense to do
that versus having to come up with those payments and then have one big drop off next year it's it's just uh again really clunky to budget accordingly. So, we're going to meet with PFM, our financial advisors. We've already looked at a couple different ways each of the last couple years. This year wasn't the right
year to do it. Rates didn't move down, but if they do, and uh we also have some debt that's callable and we match it up and it makes sense. And we'll be in front of you maybe in spring and summer talking about what that restructure looks like in preparation for the 27 budget. So, this chart may change a
little bit. And just to add to that, to go back to our original like ARPA conversation, which if you remember in my first budget presentations and state of cities and things like that, when we had the $34 million, we made a policy determination that we were going to pay for capital expenditures to be able to
avoid having to take on debt to be able to create more flexibility over the long term. So when we got $34 million, the goal of that $34 million, the purpose of why Congress passed that money was to be able to assist those that were affected by the pandemic. It's hard to make the
argument that somehow buying city infrastructure that covers all 80,000 people is completely aligned with what that original purpose was. So, the long-term uh goal here was the idea that if you're paying off these long-term
expenditures that you have, it creates more ability to be able to invest systemically into your community in the manner that's able to help out with what we felt were a lot of the systemic issues that came up during the pandemic. So, as we look at what the refinancing
is now that we've taken care of our capital expenditures that are the traditional ones over the next four years, the options are on the table for what we're going to necessarily do to be able to uphold our commitment to spend all 34 million of those dollars on
obligations that are assisting the goals and priorities that we have for the city of Bethlehem. So, for example, when we got $34 million and then like we didn't borrow money and I'm not paying my tax dollars to pay off debt to buy ambulances and fire engines and all these different types of things, that's
an obligation I no longer have because we spent American Rescue Plan dollars. And I want to be very clear here as we talk into the future as far as like what the potential things are that we're going to invest in as a city. We have a lot of options including the idea of
refinancing. So, we don't know exactly what that's going to look like or what opportunities we're going to have, but we have a lot of things that were underway as a community that we're going to have a unique opportunity because people in this room and others did their job in a responsible long-term way. Um,
and I don't believe there's one member of the public here other than people that work for the city of Bethlehem to hear this, but it's truly a remarkable opportunity. And that may include more opportunities for us to be able to invest in the things that we hear people ask for every day. and I just wanted to
make sure I put that on the record as clear as I humanly could. >> Um, so I will turn to our finance committee chair first. So, Councilman Camy Smith, do you have any questions or >> No, thank you. >> All right. Counciloman Quiz, do you have any questions or comments? >> No, I'm good. Uh, members of council, do
you have any questions or comments? All right. Uh my only comments is uh as to the statements that you all made. Um we've se we've already seen some of the investments that have been made especially with the community recovery fund. Um a lot of the investments that were made into the community recover
recovery fund were programs that were supported like extended hours at for basketball in broccol um and other things that we're seeing now helped to food pantries that you've we've earmarked funds that are now like being invested now. Sorry, I'm so turned
around by this, but I'm I'm excited for what we can do independently as a city when we're entering times where we're just not as certain at the federal and the state level, where we can be financially independent to invest in our own city and make sure that we are able
to keep each other safe and strong. And I think that we made the right decision at at first when we were doing ARPA, I was like, I'm not sure if we should be doing doing this. Um, but looking back, I I really genuinely believe it was the right decision to make.
So, if there are no more questions or comments from council or from the administration, I will turn to the public for comment regarding the past four budgeting items. To my left, to my center, and to my right. All right.
The third budget meeting will be Thursday, November 20th at 6 pm. If necessary, the final budget meeting will be at 6 p.m. on Thursday, December 4th. Final reading and enactment of the 2026 budget ordinance will take place at the Tuesday, December 16th council meeting. The second budget meeting is adjourned.
Thank you. >> If you would, the orange button, as you probably know,