ALLENTOWN, Pa. — City Council on Wednesday kicked off its process to ratify a budget for 2026 after Mayor Matt Tuerk called for the first property tax increase in seven years.
Committees heard from city leaders, who explained their revenue and spending plans for the upcoming year.
Finance Director Bina Patel outlined the budget for her department, which is projected to generate almost three-quarters of all revenue for the city.
“We delivered a balanced budget to you. We’re going to live within our means.”Allentown Mayor Matt Tuerk
The 36-person finance department collects taxes and issues business licenses, among other big-ticket revenue-generating activities.
Allentown’s $150 million general fund budget includes $17.7 million in funding for the finance department.
A little less than $5 million will pay for wages, benefits and service charges; the rest of the funding will support other departments’ operations, Patel said.
Patel’s department is projected to generate $40.7 million in property taxes if council approves Tuerk’s proposal to raise that levy just under 4%.
The city’s earned-income tax is expected to bring in more than $47 million, while the business privilege tax and deed-transfer taxes would generate $13 million and $3.1 million, respectively, according to the proposed budget.
Intergovernmental revenues, including state pension aid, grants and training fees, are projected to total $20.7 million.
About a fifth of that money — $4.1 million — comes from Allentown’s share of revenues generated by Wind Creek Casino in Bethlehem.
City officials expect to earn $12.3 million from various service charges, including $7.1 million from EMS transit fees.
The city would gross a further $2.2 million from permitting and licensing fees, if the mayor’s budget is approved as proposed.
Revenues in Tuerk’s 2026 budget proposal total $150,649,244, while expenditures are just $525 less.
“We delivered a balanced budget to you,” Tuerk told council members Wednesday. “We’re going to live within our means.”
'More than just numbers'
Tuerk credited Patel and other administrative staff for presenting “the leanest possible budget and lower[ing] the need to raise taxes as much as possible.”
About three-quarters of the city’s $150 million in spending next year would cover personnel costs for about 900 employees, according to the mayor.
“Budgets are more than just the numbers that we put on the spreadsheet. They reflect the values that we hold as a city.”Allentown Mayor Matt Tuerk
“Budgets are more than just the numbers that we put on the spreadsheet,” Tuerk said. “They reflect the values that we hold as a city.”
“Fundamentally, a city budget is about people. We are in the business of government services and a service business relies on high-quality employees.”
Major projects expected to launch in 2026 include the new Allentown Police Department headquarters, Bogert’s Bridge and Martin Luther King Jr. Drive.
And officials plan to issue bonds next year to help fund a new facility for the Allentown Fire Department, Health Bureau and emergency medical services, Patel said.
