BETHLEHEM, Pa. — Mayor William Reynolds delivered his first budget address Friday, highlighting the city's financial footing, potential use of American Rescue Plan Act funds and an increased recycling fee.
In a lively presentation at the ArtsQuest Center at SteelStacks, Reynolds presented a balanced budget that doesn't call for property tax increases.
But the first-year mayor said annual recycling fees are set to increase to $90 a year—about a $5 increase per quarter—from $70 due to the increased cost of the city's recycling contract, which is expected to jump to a minimum $1.7 million from $1.1 million, and decreased recycling revenues.
New capital projects were highlighted such as fire engine replacement, ambulance replacement, intersection replacement work, a new public works dump truck, and the replacement of the Bethlehem Area Public Library column.
Reynolds, a Democrat who served 14 years on city council, said the goal in the budget is to be able to pay sustainable expenses with sustainable revenues. He pledged that the city will always keep salary, pension and health care obligations to its employees.
Payroll and health care costs for the city are set to increase by $2.1 million, while sustainable revenue increases from tax growth, EMS reimbursements and real estate taxes are set to increase by $1.6 million, he said.
The presentation reported that of the $34.4 million allocation to Bethlehem from the American Rescue Plan Act, $7.2 million was spent in 2022. The remainder will be used through 2025—funding that Reynolds described as "transformational."
Overall, $16 million in ARPA funding is allocated in the 2023 budget.
"This is what Bethlehem always does, because we always take an opportunity find something bigger to do," said Reynolds. "ARPA is transformational, it’s historic.”
ARPA funding in the 2023 budget proposal includes a new $5 million affordable housing fund and $2 million for a homelessness initiative to address rising housing costs. Additionally, the city will carry over $4 million in ARPA funding for capital funds and $3 million for the Community Reinvestment Fund.
Reynolds said in 2023 an additional $2 million will go toward lost revenue due to COVID-19.
Reynolds said the total proposed capital spending from ARPA of $18 million between this year and 2025 will have saved taxpayers $25.3 million. That factors in the estimated cost of interest if the city had to borrow money for those expenses.
He also highlighted new negotiated union contracts with police, the fire department and SEIU employees and the city's positive financial position relative to other cities in Pennsylvania due to its success towards paying off debts and decisions by past administrations.
City council still has to consider the proposal and vote on it.
The following budget hearings are scheduled:
- Public works and water/sewer: 6 p.m. Tuesday, Nov. 22
- General fund revenues and expenses: 6 p.m. Tuesday, Nov. 29
- Fire, police and community and economic development: 6 p.m. Wednesday, Nov. 30
You can view the presentation made during the event here:
