OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Veteran Finance Committee Meeting Summary - February 25, 2026

Meeting Portal — Wednesday, February 25, 2026
BodyAllentown, Pennsylvania
SessionMeeting Portal
DateWednesday, February 25, 2026
StatusFILED
Video Record
0:00 / 1:07:34
Transcript — Verbatim
0:05

All right, good afternoon everyone.

0:07

We're gonna get this uh show on the road here.

0:11

Um so uh welcome to the Veteran Finance Committee.

0:18

Uh we'll just quickly take roll and uh get started here.

0:25

Okay, Miss Moda here, Ms.

0:28

Girlak here, uh Mr.

0:30

Chair, everyone is here.

0:32

Thank you, Mike, and let the record reflect we have Councilperson Bender, Council President uh Napoli as well.

0:38

Um yeah, so thank you all for coming tonight.

0:41

Uh we'll get started.

0:42

I think I guess first on our agenda is uh looking at Bill 12.

0:45

Bill 12 Amendment City Code Part 2, general legislation, chapter 633, water, article uh five, uh water services and charges to add a section relating to uh water and sewer rebates by creating a sliding schedule of water and sewer rebates.

1:05

Perfect.

1:05

I guess do we have any comment from the administration?

1:08

Uh good evening.

1:09

Yes, I have Mike Zumas with me as the uh revenue and audit manager.

1:13

He's gonna walk us through the uh bill.

1:16

Good evening.

1:17

Um I worked with uh Jenny McKenna to uh for bill 12 to increase the goal was to offer financial relief to eligible seniors and persons with disabilities um to get rebates on their water and sewer fixed charge.

1:39

Um and that's a fee that is um currently administered by Lehigh County Authority, so LCA.

1:46

Um the goal is to kind of mimic the garbage rebate process that was implemented uh for last year and increase the threshold.

1:55

So then we're trying to reach more seniors and and uh persons with disabilities.

2:00

So the scale um would go from zero to fifteen thousand is a 75% rebate, 15,000 to 20,000 is 50 percent rebate, so on and so forth.

2:10

Um do you guys have any questions on that?

2:18

No.

2:18

Um I think do you just mind repeating the the scales?

2:22

Sure, we're good.

2:23

Um so the scale is gonna be income from zero to fifteen thousand is a 75% um rebate on the water and sewer fixed charge.

2:36

Um household income of $15,000, $1 to 20,000 is a 50% rebate.

2:43

Uh household income of 20,000 and $1 to $25,000 is a 25% rebate.

2:49

Uh household income of $25,000 and $1 to $34,450 is a 10% rebate.

2:55

And again, that's on the water and sewer fixed charge.

2:59

Um for 2025, the quarterly um the quarterly sewer charge for 2025 was 29.75 cents, and the quarterly um fixed charge for uh the metered water use was 85.57 per quarter.

3:23

Thank you.

3:24

So I'll take any comment on the on the dice if anyone has anything on the go ahead.

3:28

Uh just a quick question on what the um percentages and the scale was was it based off AMI or some other so um we were looking into essentially what we did was we mimicked the garbage rebate process from that we introduced in 2024 that um started in for the 2024 um it was 2024 um and then it was implemented that January so um I know we we talked about uh at council meeting um referring to AMI and things like that, but um I think this percentage is something that we mirrored the PA 1000, which was the rebate form at the time got you okay, thank you.

4:21

I don't uh you have something sure.

4:23

Um for residents who are interested, I mean are these for these resources are they available like this water and sewer one?

4:30

Could they get it through the city of Allentown?

4:32

Are we pointing them to LCA?

4:33

So this is something that the city of Allentown would admit administer and and issue the rebate on along with the garbage.

4:41

And how and do we have any ideas on how we would communicate that to so I think a um a more concerted push to um talk to state representatives?

4:52

I know we talked to um Lehigh County's aging committee um when we were increasing the garbage rebate.

5:00

So uh I think a concerted effort to to get the word out will help um applicants.

5:06

I know um when we increase the garbage rebate threshold, um we were able to um I think help three times as many residents.

5:17

So I think we can get more.

5:19

I think it's a matter of uh a concerted effort to push that um that notice out there um have the rebate form on the currently the rebate form is on revenue and audits page, so maybe having that in uh in a more accessible spot so people can become aware of that.

5:36

Okay.

5:36

I like the state reps idea because I think folks are going to our state reps for um for tax rebates, you know, on their understanding state state tax.

5:46

So maybe have them having these resources you know right next to it would be advantageous for those same folks.

5:53

So I like that idea.

5:55

Thank you.

5:56

And and it won't be a great idea if um if the messages will be in in Spanish and in different languages.

6:11

Absolutely, that's a great idea.

6:13

We make sure that we have that translation in Spanish available as well.

6:19

So I would like to remind council that uh um though uh the water and sewer is uh is leased for long term for 50 years with the LCA we retained this rebate program to help our um residents, our property owners that fall within this um income window to uh to support them to assist them.

6:44

So technically we do not have water and sewer uh anymore as with the LCA, but we retain this to help our uh property ownership.

6:55

I appreciate the clarification, Director Patel.

6:58

Um I guess there is just one other question, just a little bit more general as far as is there currently a resource, whether it's on the website or in our department of any and all rebates that the city currently administers.

7:12

Yes, so it it is on our website, but it it is on the revenue and audits page in the uh within the finance department's um page.

Discussion Breakdown — Share of Meeting
Budget Equity Analysis█████████████████████████████████████████████46%
Economic Development████████████████████████25%
Public Engagement█████████9%
Water And Wastewater Management████████8%
Zoning Regulations████████8%
Public Safety███3%
Procedural█1%
Summary of Proceedings

Veteran Finance Committee Meeting Summary - February 25, 2026

The Veteran Finance Committee of Allentown met on February 25, 2026, to discuss Bill 12 on water and sewer rebates, review December 2025 and January 2026 financial reports, present a comparative analysis of other Pennsylvania cities' budget processes, and explore alternative revenue sources. The meeting was chaired by Councilperson Pungo with all committee members present.

Consent Calendar

  • No consent calendar items were identified.

Public Comments & Testimony

  • No public comments were offered during the meeting.

Discussion Items

Bill 12 – Water and Sewer Rebate Sliding Scale

  • Mike Zumas, Revenue and Audit Manager, presented the proposed sliding scale for water and sewer rebates for eligible seniors and persons with disabilities. The scale mirrors the existing garbage rebate program: household income $0–$15,000 receives a 75% rebate; $15,001–$20,000 receives 50%; $20,001–$25,000 receives 25%; $25,001–$34,450 receives 10% on the water and sewer fixed charge.
  • For 2025, the quarterly sewer fixed charge was $29.75 and the metered water fixed charge was $85.57. The city would administer the rebates jointly with the garbage rebate program.
  • Discussion included outreach strategies: contacting state representatives, Lehigh County’s aging committee, and ensuring Spanish translation. The rebate form will be made more prominent on the city website.
  • Director Patel clarified that although water and sewer operations are leased to Lehigh County Authority (LCA), the city retained this rebate program to assist property owners.
  • A motion was made and seconded to refer Bill 12 to the full council meeting on March 4, 2026. The motion carried.

Financial Reports for December 2025 and January 2026

  • Director Patel presented the December 2025 (version 2) and January 2026 financial reports.
  • December 2025: General fund revenues were 3% stronger than budget at $152 million, driven by earned income tax, business license fees, charges for services, and investment income. Expenditures were at 96% of the adjusted $154 million budget, reflecting 4% savings in services/charges and materials/supplies. The fund balance increased. Police, fire, and EMS premium pay totals were just over $3 million (police and fire) and just over $1 million (EMS). General fund cash position was $39.8 million, with $37 million invested through PLAGIT yielding 3.74%–4.35% APY. Other funds (solid waste, stormwater, risk, golf, rental, building code) were largely in line or showed savings.
  • January 2026: First month data limited. General fund revenues were $4.3 million (on track), expenditures $10 million (7% of budget, up 1% from January 2025). Cash position $34.5 million. Controller Patel noted the typical revenue-expenditure imbalance in early months, highlighting the need for a healthy fund balance.
  • Deed transfer tax increase was implemented; revenue will be reported in the housing fund starting next month.
  • No questions or disputes were raised; reports were accepted.

Budget Process Review: Comparative Analysis

  • Genesis (staff) presented a comparative analysis of budget processes in Reading, Easton, Philadelphia, Bethlehem, Pittsburgh, Lancaster, and Lehigh County. Key differences included default budget clauses, adoption deadlines, veto authority, and impasse procedures.
  • Allentown’s home rule charter was amended by voters in November 2019 to remove the automatic budget default and lower the supermajority for tax increases from 5 to 4 votes, but lacks a defined failure scenario if no budget is adopted by December 31.
  • The 2007 Goldman Goldsmith Conn study was referenced, which found Allentown’s process reasonable but recommended improved communication and training.
  • Next steps: analyze internal surveys, meet with the mayor and finance director, and present a white paper at the March 25, 2026 budget and finance committee meeting. Potential charter or ordinance changes may be considered.
  • Councilperson Bender inquired about managing director roles in other cities; Genesis noted the Model City Charter recommends such a role. Director Patel added that Easton and Bethlehem have business managers/managing directors.

Alternative Revenue Sources

  • Director Patel described a 2024 RFP process for revenue consulting. Three firms (RSI, ESI, PEL) bid, but the administration concluded they could only repackage existing data, not generate new revenue. The RFP was not pursued.
  • The amusement device tax, repealed in 2021, generated only about $6,000 annually and cost more to administer than it collected.
  • The economic nexus tax (based on the Wayfair Supreme Court decision) is being actively pursued. Letters have been sent to top e-commerce businesses (Amazon, Walmart, Target). The city uses a bright-line test: 15 transactions and $5,000 in gross receipts within Allentown establishes nexus for business privilege tax. Enforcement has been limited by staffing for auditing.
  • Councilperson Gerlach asked about projecting potential revenue and resource needs for auditing. The administration agreed to provide projections and review internal processes.
  • Councilperson Bender asked about impact fees under Act 209. The city’s new zoning and SALDO may address some infrastructure mitigation, but the controller noted state roads limit impact fees. The CED director may present on this later.
  • Councilperson Gerlach inquired about recouping costs for services (public safety, public works) provided within the NIS zone. Information was requested from departments.
  • An NISDA presentation is scheduled for April 22, 2026, at a committee of the whole meeting.

Key Outcomes

  • Bill 12 was referred to the full city council meeting on March 4, 2026 for adoption.
  • Financial reports for December 2025 (version 2) and January 2026 were received and noted; no formal vote required.
  • Budget process review will continue with a white paper and recommendations presented at the March 25, 2026 budget and finance committee meeting.
  • Alternative revenue: The administration will provide projections for economic nexus revenue and staffing needs; continued auditing enforcement is prioritized. The committee will follow up on impact fee exploration and NIS cost recovery.

Meeting Transcript

All right, good afternoon everyone. We're gonna get this uh show on the road here. Um so uh welcome to the Veteran Finance Committee. Uh we'll just quickly take roll and uh get started here. Okay, Miss Moda here, Ms. Girlak here, uh Mr. Chair, everyone is here. Thank you, Mike, and let the record reflect we have Councilperson Bender, Council President uh Napoli as well. Um yeah, so thank you all for coming tonight. Uh we'll get started. I think I guess first on our agenda is uh looking at Bill 12. Bill 12 Amendment City Code Part 2, general legislation, chapter 633, water, article uh five, uh water services and charges to add a section relating to uh water and sewer rebates by creating a sliding schedule of water and sewer rebates. Perfect. I guess do we have any comment from the administration? Uh good evening. Yes, I have Mike Zumas with me as the uh revenue and audit manager. He's gonna walk us through the uh bill. Good evening. Um I worked with uh Jenny McKenna to uh for bill 12 to increase the goal was to offer financial relief to eligible seniors and persons with disabilities um to get rebates on their water and sewer fixed charge. Um and that's a fee that is um currently administered by Lehigh County Authority, so LCA. Um the goal is to kind of mimic the garbage rebate process that was implemented uh for last year and increase the threshold. So then we're trying to reach more seniors and and uh persons with disabilities. So the scale um would go from zero to fifteen thousand is a 75% rebate, 15,000 to 20,000 is 50 percent rebate, so on and so forth. Um do you guys have any questions on that? No. Um I think do you just mind repeating the the scales? Sure, we're good. Um so the scale is gonna be income from zero to fifteen thousand is a 75% um rebate on the water and sewer fixed charge. Um household income of $15,000, $1 to 20,000 is a 50% rebate. Uh household income of 20,000 and $1 to $25,000 is a 25% rebate. Uh household income of $25,000 and $1 to $34,450 is a 10% rebate. And again, that's on the water and sewer fixed charge. Um for 2025, the quarterly um the quarterly sewer charge for 2025 was 29.75 cents, and the quarterly um fixed charge for uh the metered water use was 85.57 per quarter. Thank you. So I'll take any comment on the on the dice if anyone has anything on the go ahead. Uh just a quick question on what the um percentages and the scale was was it based off AMI or some other so um we were looking into essentially what we did was we mimicked the garbage rebate process from that we introduced in 2024 that um started in for the 2024 um it was 2024 um and then it was implemented that January so um I know we we talked about uh at council meeting um referring to AMI and things like that, but um I think this percentage is something that we mirrored the PA 1000, which was the rebate form at the time got you okay, thank you. I don't uh you have something sure. Um for residents who are interested, I mean are these for these resources are they available like this water and sewer one? Could they get it through the city of Allentown? Are we pointing them to LCA? So this is something that the city of Allentown would admit administer and and issue the rebate on along with the garbage. And how and do we have any ideas on how we would communicate that to so I think a um a more concerted push to um talk to state representatives? I know we talked to um Lehigh County's aging committee um when we were increasing the garbage rebate. So uh I think a concerted effort to to get the word out will help um applicants. I know um when we increase the garbage rebate threshold, um we were able to um I think help three times as many residents. So I think we can get more. I think it's a matter of uh a concerted effort to push that um that notice out there um have the rebate form on the currently the rebate form is on revenue and audits page, so maybe having that in uh in a more accessible spot so people can become aware of that. Okay. I like the state reps idea because I think folks are going to our state reps for um for tax rebates, you know, on their understanding state state tax. So maybe have them having these resources you know right next to it would be advantageous for those same folks.

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