- Easton Mayor Sal Panto Jr. on Monday presented a proposed 2024 city budget to City Council
- The nearly $39 million budget is almost $25 million less than the 2023 budget
- Priorities for 2024 include addressing the increase in trash collection rates and addressing the needs of the homeless, among other issues
EASTON, Pa. — Easton's 2024 budget is expected to increase 3.4% over this year's budget, but will keep property taxes steady, Mayor Sal Panto Jr. said during a Monday presentation to City Council.
Panto kicked off the budget season presenting his take on prospective 2024 expenditures at noon, poring over extenuating circumstances and complications that inevitably will affect the current $38,680,0340 estimate.
That budget is $24,500,042 short of the 2023 total, though figures could change significantly over the coming months as council analyzes and adjusts the initial plan submitted by the mayor.
“Inflation, recovering supply chains, the possibility of a recession, [and] higher capital debt costs” are contributing factors to “an uncertain economic climate in 2024,” Panto said.
That led the city administration to lean toward a more conservative budget “that we will closely monitor until a clearer fiscal picture emerges,” he said.
About 95% of the total budget will be dedicated to fixed costs, salaries, benefits, pensions, utilities and other expenses, the budget report noted.
The mayor painted a comparison between the “precarious situation” faced by the country as the Federal Reserve tries to curb high inflation, and the current state of affairs in Easton.
“The rising cost of debt has slowed house sales and some economic development projects,” Panto said. “Fortunately, our economic development projects continue to move forward, although some are delayed due to this situation.”
He commended the administration for its efforts and successes preventing the city from relying upon the Financially Distressed Municipalities Act, weathering the 2008 recession and the COVID-19 pandemic, and all the while increasing bond ratings while surrounding municipalities saw decreases.
He said he's looking forward to continuing balanced budgets.
“Like the previous 15 budgets, the 2024 budget is balanced and responsible,” Panto said. “And like the last 15 years, it keeps property taxes level for another year and places most of the increases on our visitors — not our residents.”
By using grant funding, Panto said, the city has been able to pursue “capital investments in our infrastructure, mainly our streets and parks.”
He noted $100 million in expenditures via those grants, in addition to an economic development program that could see a $1 billion investment in the city.
Likewise, state and federal funding — particularly the American Rescue Plan Act, which injected $20.6 million into the city — helped Easton make its way through the pandemic and its aftermath, he said.
However, a return to pre-pandemic levels still is under way, Panto said.
The 2024 budget continues to focus on city council’s core priorities of community safety, economic recovery, livability and affordable housing, the mayor said.
Add in a $1.1 million increase for trash collection and disposal alongside normal budget increases amounting to more than $500,000 makes the goal of a balanced budget all the more tricky, he said.
“The 2024 budget is $1,256,072 more or 3.4% higher than the 2023 budget,” Panto said. “Of this amount, $1.2 million is attributed to the increase in our trash collection contracts.
"There is also a $561,000 increase in salaries and wages. Therefore, this budget has increased less than 1% over 2023, but for trash fees and mandatory increases.”
While the city’s expanding tax base and increased work rate are positive developments, Panto said the city can no longer absorb increases such as the trash rate hike.
The mayor said administrators explored an option to bring trash collection under the helm of the city again, though ultimately the decision to stick to outsourcing won out.
“Therefore, to balance the budget we are recommending a $5-per-month increase in trash and recycling, which represents approximately $500,000 of that $1.2 million increase," Panto said.
"This keeps our rates in the middle level of trash collection of surrounding communities and still allows our residents to place as much trash on the curb as they have, unlike other municipalities."
Easton also will increase parking rates to $1.50 per hour, falling in line with Allentown and Bethlehem.
At the same time, administrators are recommending parking garage rates reduce to 50 cents after 5 p.m. and 50 cents per hour for most of the year.
Rates during the warmer seasons will stay at $3 per hour, “when we see our greatest increase in visitors,” Panto said, in addition to pushing meter enforcement back to 9 p.m.
“Making street parking more than parking in a garage is the recommendation of several parking studies over the last decade,” Panto said.
“We are exploring the overnight parking garage rates to make it more economical to park in one of our garages rather than the street in certain sections of our CBD."
Panto said he was concerned over the state of the city, though, pointing out “permanent solutions will only come when elected officials in Harrisburg decide it is time to take up this issue in earnest.”
“I doubt that I will see in my lifetime the changes needed,” Panto said. “Heck, we lobbied for radar to make our streets safe for 30 years, and still don’t have that right from the state legislature.”
He said one possible solution to funding issues is monetizing water and wastewater facility usage for Easton’s suburban area, which has depended upon those services since the mid-1970s while maintaining low millage rates.
Panto said a meeting to renegotiate an ESWA lease, or potentially sell the water facilities, is set for Friday, Oct. 6.
According to the mayor, the initial value assessment of the water facilities is $200 million, with an annual lease value of $7 million. At the same, the city gets only $1.8 million a year for the use of those facilities.
In keeping with a goal to provide for children and seniors in the city, Panto also recommended building a new community and senior center in the West Ward.
With a $100,000 match for the city in addition to small grants, funding for the project hovers around $300,000.
The budget also calls for continued capital investments in parks, including the Scott Ransome press box at Heil Field; designs for Centennial Park; a suggested $50,000 annual contribution to the Karl Stirner Arts Trail; and $70,000 for park and recreation programs.
Pension liabilities remain one of the city’s largest challenges, the mayor said, as the Mandatory Municipal Obligation grows as wages increase.
This year, Panto said, the city had to contribute $7 million out of the General Fund — about 20 mills of the 24.95 mills of real estate taxes.
Affordable housing also remains a priority, as the city is aiming to construct 60 units, while another 55 are already occupied, he said.
Focusing on outdated fire stations also is integral, the mayor said, pointing out the South Side station alone dates to the 19th century.
While the station awaits arrival of a $1.7 million tiller truck and an $800,000 pumper, the physical location requires attention, he said. A presentation exploring options of rehabilitation or new construction is set for the second quarter of 2024.
Following the fire stations, Panto said the Bushkill Drive municipal garage complex must get attention. Grants may be needed to build a new police evidence building in the city-owned quarry on Route 611, as well, he said
Panto also pointed out a growing problem with unsheltered people in the city, saying, “one goal is to provide public bathrooms in our central business district.”
The mayor also pointed out the implementation of a plan from the Mayor’s Task Force on Affordable Housing, called the Housing Development Corporation, is set to build more accessible units in the city.
“City residents should note that this is the longest reprieve in raising taxes as a result of sound budgeting and continued growth,” Panto said.
“As I conclude my remarks I look forward to working with you to achieve a balanced budget and working with you to alleviate the increases sought.”
City council has established several meetings over the next two months to finalize the budget on or before Dec. 15.
City Councilwoman Taiba Sultana raised concern over two particular matters in the budget, which she said will address in the coming weeks.
While the mayor’s plans to provide restroom access to the homeless is a good first step, Sultana said she would like to see more services provided to help those in need obtain jobs.
“I think it's most important that they are provided for the basic needs — a place to live, a place to sleep, so they can wake up, take a shower, be fresh and go for the interview for the jobs,” Sultana said.
“And my other thoughts are bringing some emergency funds for people, which I will be introducing later during the budget hearings, just to set aside some money for people who were in the Ferry Street blaze, or victims of disasters, any sudden disasters.”
She said, it's imperative that such victims get immediate assistance in the way of housing, clothing, food and other necessities when such issues strike.
City Administrator Luis Campos said he expects the greatest challenge for council over the coming weeks will be bridging the gaps between revenue and expenditures, while providing necessary services for the city’s residents.
“If you decrease revenues — because these are some of the issues that are popping up — council is going to have to find where to find that revenue gap," Campos said.
"So that's kind of the issue. That's what the mayor outlined with parking fees increasing, and he also outlined an increase in garbage fees per resident.
“So while we don't like those two items, decreasing those increases, council will have to find an alternative source, because together those two items probably make up a little bit over $1 million in the total budget, which is a significant amount.”
