EASTON, Pa. — Easton City Council on Wednesday amended the city's 2023 budget.
Council passed the budget in December, but the city’s actuary informed Mayor Sal Panto Jr. the original spending plan over-estimated the city’s retirement pension plan by $508,000 late in the month.
Council made the amendments earlier this month, after the last council meeting of 2022 year was canceled.
- Easton City Council met for the first time this year on Wednesday
- Council passed amendments to the 2023 general fund budget that adjusted for a $508,000 overestimation of city pension plans
- The council also shared remarks on the S&P Global 'A' rating the city received on Jan. 5
Pension plan adjustments were made to the general, recreation and wastewater fund budgets.
The passing of the 2023 budget saw concerns raised by council member Peter Melan about whether the city would hit revenue projections and whether using American Rescue Plan Act funds in the budget was appropriate.
“I felt the administration presented numbers to us for earned income tax that I felt were not aligned with prior trends,” Melan said in a conversation following the Dec. 14 meeting.
In addition to the budget amendments, council members discussed the city's new "A" credit rating from S&P Global in a report delivered on Jan. 5.
City Administrator Luis Campos said the restructuring that the S&P Global cited as a part of why the city’s debt rating increased, has let the city have an average interest rate of 2.898%.
Campos said that in comparison, the 20-year U.S. Treasury bond has an 3.9% interest rate.
The restructuring involved borrowing money for a very high debt at a low interest rate, which saved the city about $10 million over 10 years. Without the restructuring, Campos said, the city could have potentially received a rating downgrade.
“The savings freed up cash for capital and improved the city’s liquidity position,” Campos said.
Campos also said the American Rescue Plan Act funding was cited by S&P because it offered the city more financial flexibility over the next few years.
