OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Allentown City Council Budget Vote - January 13, 2026

Meeting PortalTuesday, January 13, 2026
BodyAllentown, Pennsylvania
SessionMeeting Portal
DateTuesday, January 13, 2026
StatusFILED
Video Record

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Transcript — Verbatim
0:00

January 13th.

0:01

And we're gonna start with the roll call, please.

0:06

Here.

0:09

Here.

0:11

Here.

0:13

Present.

0:15

Here.

0:15

And here.

0:18

All right, thank you.

0:19

Uh, we're gonna get started.

0:20

Uh, our solicitor, uh, Ms.

0:22

Montero is gonna um put us um give us a layer of land of where we are and uh what this meeting uh entails.

0:29

So I'll take it away.

0:30

Thank you.

0:30

Allentown city council is here this evening to vote on bill one.

0:35

That's the budget that was presented by the mayor.

0:39

Okay, thank you.

0:41

So uh can you read the bill, please?

0:45

Bill one is an ordinance of the city of Allentown, County of Lehigh and Commonwealth of Pennsylvania confirming that the budget submitted by the mayor to the city clerk on January 1, 2026 being the same budget as submitted by the mayor to city council on October 16th, 2025 is the two 2026 budget adopted by city council.

1:08

Okay, uh we'll take comments from the dais.

1:10

Um go ahead, Miss Gurlock.

1:12

Oh, yes, I would like to make an amendment that um uh bill one uh should include all of the items that are listed, all of the amended um items that we previously voted on, which are included in bill two, and addition to that would be the um the reduction in the trash fee, the $50.

1:34

I was second that motion.

1:36

Okay, we have a first and a second, and on the amendment.

1:40

So we'll speak to the amendment.

1:42

Um Mr.

1:44

Handler, remind me vote um you vote on the amendment first or or die or comments from the dias.

1:51

Oh comments from the diet, yep.

1:54

Yeah, so uh any comments from the dias regarding the amendment by Ms.

1:57

Gerloch and seconded by Santos.

2:03

So just for the public, you want me to spell out the amendments clearly?

2:07

Yeah.

2:08

So the amendments that uh Ms.

2:10

Gerlock was referring to are listed in Bill Two.

2:13

It's 100,000 allocated to decompose Mark and House with various things.

2:20

Uh it was a number of uh corrections, uh house cleaning corrections that were uh made by the administration.

2:30

Um it created the deputy director position in uh the HR, it uh changed the operation specialist um to be senior HR general, it changed some configurations in the CD office that are listed on Bill Two, change the position title council budget to public affairs policy office, and then uh Ms.

2:58

Verlock included in that you can get the dollar reduction regarding voted on this person.

3:09

Okay, thank you.

3:11

Go ahead.

3:12

I'm kind of confused because in bill two, I know that we're concentrated in bill one, but in bill two, I believe that he said pretty much the same thing.

3:22

So okay, can you explain bill one?

3:27

Go ahead, Ms.

3:28

So the reason why I chose to make the amendment now is because um as we know when you have a bill in front of you, you make the amendment on that bill.

3:37

Um you've been elected for a long time, Miss App has been elected for a while.

3:42

I cannot recall in the time I've been elected where I've ever voted on a bill, passed or failed, and then retroactively then added stuff to that bill that's already passed.

3:55

It just seems yeah, that's that's that's fair enough.

3:57

So so you're doing this to make sure that's the same.

3:59

The way that we always legislatively do it, yeah.

4:02

Okay.

4:03

That's it.

4:03

Yeah.

4:04

Could I make this clear too that the amendments that Ms.

4:08

uh Gerlock on?

4:10

So the amendments that Ms.

4:12

Gerlock is referring to does not include your reduction of the tax increase.

4:19

So in that bill one, it still contains for the record the 3.96% tax increase.

4:28

Okay, repeat that again, um, Mr.

4:29

Hannah.

4:30

So uh Miss Gerlock's amendments do not include the 3.96 tax reduction.

4:38

That is still clearly in bill one as presented.

4:44

So then we do vote on bill one also.

4:48

Um I believe council person's opinion is that motion is that the amendments be included as part of bill one, essentially doing both votes simultaneously.

5:08

Sort of, but I mean, procedurally, we would vote on the amendment, that would pass or fail, and then we would have to go back, and Mr.

5:14

Hannah would say, okay, now bill one as amended.

5:18

Right.

5:19

So then potentially if you wanted these amended items to be in a bill that includes a tax increase, so potentially the compromised thing.

5:31

If you wanted that, you would vote yes on the amendments and then yes on bill one.

5:37

But if you don't want to raise taxes, you would eventually end up voting no on bill one.

5:44

Yeah.

5:44

You could vote best for the amendments within vote no against bill one.

5:48

But in bill one does not include the the garbage fee.

5:52

Unless it gets amended.

5:57

Bill one includes the garbage fee as presented by the mayor.

6:02

Miss Gurloch is proposing an amendment to reduce the 140 dollar increase by 50 dollars in the amendment.

6:21

Okay, any other questions from the guys?

6:25

I guess just for clarification's sake, the amendment to reduce the garbage and waste fee would be essentially picking up the previous amendment essentially from December that offset that reduction with the borrowing from the solid waste fund, correct?

6:44

Yes.

6:45

My understanding.

6:47

If I'm voting say yes for bill one, I can also vote yes for the amendments in bill two.

6:56

Correct?

6:57

Yeah, because now they're part.

6:59

So first off, we'll vote on all the amendments that are listed in bill two, and then we'll go to bill one.

7:04

Uh yeah, and then we'll go to bill one.

7:06

Yeah.

7:12

Just full transparency, lit our legal department recommended to do it in a cadence that uh would um is what we did with bill one and bill two, packaging them together.

7:23

I mean, we could try it.

7:24

I hope it doesn't affect any any outcomes, but the plan was to vote bill one, bill two, and finish off.

7:31

But um any other questions or comments?

7:35

I do have a question.

7:36

So with the trash reduction, um, my concern over the grand scheme of this is ultimately we are still charging everyone the same amount.

7:46

Effectively, we're charging more because we're putting interest on top of this.

7:51

Um I know that we had I I looked at maybe potentially reducing what that interest fee would be or potentially allocating that towards a specific thing.

8:01

Is now the time to even bring that.

8:03

I mean, is that like a friendly amendment thing, or is that sort of thing where it's just simply this is what I'm doing to this.

8:08

So this is what we we just pass it this way, or don't pass it, and then that comes up again, or what is the process?

8:15

We could we could have um Ms.

8:16

Patels here from the administration, we could ask her um some options.

8:19

I think she's yeah, she's here.

8:21

And um see if there are any options we can work on tonight.

8:24

I'm not sure if we can do it on the spot, but it's something well I mean I'm open to a friendly amendment, so uh but it's definitely I'm worth I mean conversation, I'm always open to having conversation.

8:34

So um and so we'll start first, hold your thought, uh please.

8:40

And um Ms.

8:41

Patel, um any information you can give us regarding Mr.

8:45

Binder's um good evening, councilpersons.

8:52

Um excellent question.

8:54

So that would be um journal fund lending the um two million dollars.

9:00

If we are reducing the garbage fees per unit by fifty dollars, the shortfall will be two million dollars, approximately two million dollars.

9:09

That journal fund will lend to the solid waste fund, and um it would be a borrowing for five five years at a three percent interest rate.

9:21

The three percent um it came up with because the TD bank is currently um our um uh balances is providing us with three percent interest.

9:32

The reason for in including interest is to keep the value of the money uh in the general funds.

9:40

If you're if if we are lending the money to uh another fund, we need to keep the general fund whole and uh assessing the interest um would keep that value of the money.

9:54

We have done this in the past uh with other funds.

9:58

We have lent money to AO fund in the 2024.

10:02

That was 817,000 with an interest charge as well.

10:07

We have done a loan to um golf fund and uh with the similar concept.

10:14

So the um to answer your question, if you use that interest money for something else, then you are depleting the value in the general fund.

10:24

So I would discourage you from using the interest monies for another source.

10:29

Okay, thank you.

10:31

May I ask one other question?

10:32

Sure.

10:32

Um with respect to the process procedurally here, if my my concern comes into, and I I fully support trying to figure out how do we we round this out so it's not as much of an impact this year, but my overall concern is we're ending up costing every resident more money in the long run.

10:50

Um given what I've been learning in the past week in this process, um, I'm I'm I'm very very concerned about increasing costs over and over again.

11:01

So, like I guess my question is procedurally, if that's on and maybe I'm not supporting the trash right now, then this that all the amendments are gone at that point if you're voting no and then it gets reintroduced again.

11:15

Is that how that works or is it performing?

11:17

Um we could ask Ms.

11:18

Carlotch to amend it if if she chooses to, or we could vote and we can come back and do a second round, whichever I'm open to either option.

11:27

Okay, to get us to a finish line.

11:29

So so in from hearing you right, you would prefer it would essentially just be everything that's listed in all the amendments listed in the bill too, so do not add on the uh trash fee reduction.

11:40

Yeah, I think I'd prefer that at this time.

11:43

All right, I'm a yes, I'll change my amendment to that.

11:48

Okay, so we have an amended amendment, we have a first and a second.

11:52

Any other questions or comments behind the dice?

11:57

And or from our solicitor, any comments?

12:00

Okay.

12:02

Okay.

12:02

Uh we'll now take um comments uh from the public on the amendment uh Miss Gerlock proposed uh in front of us that's on the table.

12:15

Okay.

12:17

So we'll call for a vote on the amendment.

12:22

Okay, this is on the amendments as read and with the exception of pulling out the uh garbage fee reduction.

12:29

On the amendments, Ms.

12:30

Affa.

12:31

Yes.

12:32

Mr.

12:33

Bender, yes, Ms.

12:34

Gerlock.

12:35

Yes.

12:36

Ms.

12:36

Moda, yes, Mr.

12:38

Pongo.

12:39

Yes.

12:40

Ms.

12:40

Santos, yes, Mr.

12:42

Napoli.

12:42

Yes.

12:43

Mr.

12:43

President, I have seven years and no nays.

12:46

Okay.

12:47

So now we're back to Bill One as amended uh by Miss Gerlock, and um I'll take questions or comments from the dias on Bill One.

12:57

Um or would Miss Gerlock like to reintroduce your amendment?

13:01

Well, sorry.

13:02

Obviously, I I was anticipating you reintroducing your $50 amendment.

13:08

Um not at this time, but if someone else wants to, because it seems like that might be a point of negotiation.

13:14

Right for some folks.

13:17

Um go ahead.

13:20

I have a private comment if that's okay.

13:23

Um I'll try to be brief, but it's a little long.

13:25

So um thank you, uh President Nabley.

13:28

Um it's unfortunate that we're in this position today.

13:31

Uh we're here because the administration and city council failed to fulfill a core obligation to the residents of Allentown, which is to pass a balanced budget.

13:41

Over the past week in preparation for the today's meeting, I've read through the budget narrative, met with both the solicitors, the controller, finance director, several council members, and around 30 residents throughout Allentown.

13:54

In 2019, after another challenging budget say uh budget season, Allentown voters overwhelmingly passed a referendum that gave the city council more authority in its budget process.

14:05

As I understand it, the purpose of this referendum was to remove the ability to default to for a default budget to automatically go into effect.

14:14

Unfortunately, it did not include guidance on what would happen if no agreement was reached.

14:20

From a governance perspective, Bill 1 is effectively a lose-loose scenario.

14:25

Voting yes on this bill violates the will of the voters, addressing the desire to have two bodies work together to create a budget.

14:34

Voting no on this bill places us in direct violation of the state of Pennsylvania's requirements for a balanced budget to be ple to be completed by December 31st.

14:45

As such, voting no on this bill would be a violation of state law and the oath that many of us took just last week.

14:53

For that reason, I will be voting yes.

15:00

However, at the next city council meeting on January 21st, I will be presenting a resolution that is focused on two key questions that need to be clearly defined moving forward.

15:08

First, what happens procedurally in this situation if the situation occurs again?

15:14

And second, what are the consequences if a budget is not reached?

15:18

The goal of this is to establish clear expectations so that everyone involved.

15:24

Sorry, mess up where I was here.

15:26

Um, so that everyone involved in the budget process, city council, the administration, and the public understands the steps that are need to be taken and the implications if an agreement is not reached.

15:38

In closing, I ran for this opportunity to be on council when I did when I ran for this opportunity.

15:56

We are dealing with a 2025 issue right now.

16:00

It's 2026.

16:02

I would encourage both my colleagues and the administration to begin anew.

16:07

We have the opportunity to do great things, but we need to work together.

16:23

Thank you.

16:23

Well said.

16:24

Um any other questions or comments from colleagues?

16:29

Okay, we'll take any questions or comments from the public regarding bill one.

16:37

Okay.

16:38

Uh we'll call for a vote.

16:40

Okay, on bill one as amended.

16:42

Ms.

16:43

Affa.

16:44

Yes.

16:44

Mr.

16:45

Binder?

16:46

Yes.

16:46

Ms.

16:47

Gerloch.

16:48

No.

16:48

Ms.

16:49

Moda.

16:50

No.

16:50

Mr.

16:51

Pungo.

16:52

Yes.

16:54

Ms.

16:54

Santos.

16:55

No.

16:56

Mr.

16:56

Napoli.

16:57

Yes.

16:58

Uh, Mr.

16:59

President, I have four y's and three nays it passes.

17:03

Okay.

17:03

We will move to Bill Two.

17:06

Uh I'm thinking you already included.

17:09

So there's no need to bill two?

17:12

Yeah, I wasn't sure if we still had a ratify anything, but you're saying it was all included?

17:17

That's true.

17:18

I'm saying, yep.

17:19

Okay.

17:20

I'm deferring to everything that was listed in bill two was amended through Councilperson Girllock.

17:29

Okay.

17:30

Just making sure we're on point.

17:31

So at this point, I think we're good we're adjourning, right?

17:34

Mr.

17:34

Jones and meeting.

17:35

Thank you, everyone.

17:40

Yes.

17:41

Good luck.

Discussion Breakdown — Share of Meeting
Budget Equity Analysis█████████████████████████████████████████████46%
Procedural█████████████████████████████████34%
Fiscal Sustainability████████████████████20%
Summary of Proceedings

Allentown City Council Budget Vote - January 13, 2026

Allentown City Council convened on January 13, 2026, primarily to vote on Bill 1, the adopted 2026 budget submitted by the Mayor. The meeting involved significant procedural debate regarding the inclusion of prior amendments (originally in Bill 2) into the final budget vote, specifically concerning a proposed $50 reduction in the trash fee. While the council successfully passed the budget with amendments, Councilperson Gelloch and others expressed concern over the long-term financial impact of interest-bearing loans used to fund fee reductions.

Consent Calendar

  • No specific items from a consent calendar were discussed in the transcript; routine procedural matters regarding the roll call and solicitor's introduction were handled prior to substantive debate.

Public Comments & Testimony

  • Councilperson Gelloch proposed an amendment to include all items from Bill 2 in Bill 1, specifically requesting a $50 reduction in the trash fee and the reinstatement of correction items previously voted on. Councilperson Gelloch later revised the amendment to exclude the trash fee reduction after concerns were raised about the long-term cost implications of the associated loan interest.
  • Councilperson Binder (speaking for the administration/solicitor) explained that amendments in Bill 2 included a $100,000 allocation to decompose Mark and House, various HR position changes (e.g., creation of Deputy Director, changes from 'operation specialist' to 'senior HR general'), and a position title change from 'council budget' to 'public affairs policy office.' Binder explicitly noted that the 3.96% tax increase and the original trash fee reduction were contained within Bill 1 as presented and would not be included in Gelloch's amendment unless voted on separately.
  • Councilperson Han (or similar spelling variation from transcript) expressed concern that reducing the trash fee by $50 while borrowing $2 million from the general fund at a 3% interest rate would effectively increase costs for residents over a five-year period, violating the goal of a balanced budget without increasing the long-term burden.
  • Councilperson App argued that voting against the budget violates state law requiring a balanced budget by December 31st, making the scenario a "lose-lose" where voting yes violates the spirit of the 2019 referendum and voting no violates state statute. App stated, "I will be voting yes" despite the governance issues.
  • Councilperson Gelloch (later in the meeting) stated that if the budget passes, it would be a 2026 reality of a 2025 issue, encouraging colleagues to work together and promising to introduce a resolution on January 21st to define future procedures for budget impasses.

Discussion Items

  • Amendment Procedure: The council debated whether to amend Bill 1 to include Bill 2's items simultaneously or vote separately. Legal advice suggested a concurrent process to ensure legislative clarity. Councilperson Gelloch initially sought to combine the items but withdrew the trash fee reduction proposal after hearing from the administration regarding the financial mechanics of the loan.
  • Trash Fee & Loan Mechanics: Administration representative Ms. Patel clarified that a $50 fee reduction per unit creates a $2 million shortfall. This would be covered by a 5-year loan from the General Fund to the Solid Waste Fund at a 3% interest rate to maintain the value of the General Fund. Patel discouraged using the interest earnings for other municipal projects to prevent depleting the General Fund.
  • Budget Integrity: Discussion centered on the failure to pass a balanced budget prior to the deadline, the implications of the 2019 referendum, and the necessity of adhering to state laws versus voter intent.

Key Outcomes

  • Amendment Vote (Bill 2 items in Bill 1): Passed with 7 yea votes (Counselor Affa, Binder, Gelly/Gelloch, Moda, Pungo, Santos, Napoli) and 0 nay votes. The amendment included HR and office configuration changes but explicitly excluded the trash fee reduction.
  • Bill 1 Vote (2026 Budget): Passed with 4 yea votes (Affa, Binder, Pungo, Napoli) and 3 nay votes (Gelly/Gelloch, Moda, Santos). The bill passed as amended to include the corrections in Bill 2, retaining the 3.96% tax increase and the original trash fee levels (excluding the $50 reduction requested and later withdrawn).
  • Next Steps: Councilperson App plans to present a resolution on January 21, 2026, to establish clear procedural expectations and consequences for future budget impasses.
  • Adjournment: Meeting adjourned after the vote on Bill 1.

Meeting Transcript

January 13th. And we're gonna start with the roll call, please. Here. Here. Here. Present. Here. And here. All right, thank you. Uh, we're gonna get started. Uh, our solicitor, uh, Ms. Montero is gonna um put us um give us a layer of land of where we are and uh what this meeting uh entails. So I'll take it away. Thank you. Allentown city council is here this evening to vote on bill one. That's the budget that was presented by the mayor. Okay, thank you. So uh can you read the bill, please? Bill one is an ordinance of the city of Allentown, County of Lehigh and Commonwealth of Pennsylvania confirming that the budget submitted by the mayor to the city clerk on January 1, 2026 being the same budget as submitted by the mayor to city council on October 16th, 2025 is the two 2026 budget adopted by city council. Okay, uh we'll take comments from the dais. Um go ahead, Miss Gurlock. Oh, yes, I would like to make an amendment that um uh bill one uh should include all of the items that are listed, all of the amended um items that we previously voted on, which are included in bill two, and addition to that would be the um the reduction in the trash fee, the $50. I was second that motion. Okay, we have a first and a second, and on the amendment. So we'll speak to the amendment. Um Mr. Handler, remind me vote um you vote on the amendment first or or die or comments from the dias. Oh comments from the diet, yep. Yeah, so uh any comments from the dias regarding the amendment by Ms. Gerloch and seconded by Santos. So just for the public, you want me to spell out the amendments clearly? Yeah. So the amendments that uh Ms. Gerlock was referring to are listed in Bill Two. It's 100,000 allocated to decompose Mark and House with various things. Uh it was a number of uh corrections, uh house cleaning corrections that were uh made by the administration. Um it created the deputy director position in uh the HR, it uh changed the operation specialist um to be senior HR general, it changed some configurations in the CD office that are listed on Bill Two, change the position title council budget to public affairs policy office, and then uh Ms. Verlock included in that you can get the dollar reduction regarding voted on this person. Okay, thank you. Go ahead. I'm kind of confused because in bill two, I know that we're concentrated in bill one, but in bill two, I believe that he said pretty much the same thing. So okay, can you explain bill one? Go ahead, Ms. So the reason why I chose to make the amendment now is because um as we know when you have a bill in front of you, you make the amendment on that bill. Um you've been elected for a long time, Miss App has been elected for a while. I cannot recall in the time I've been elected where I've ever voted on a bill, passed or failed, and then retroactively then added stuff to that bill that's already passed. It just seems yeah, that's that's that's fair enough. So so you're doing this to make sure that's the same. The way that we always legislatively do it, yeah. Okay.

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