Hello everyone, good afternoon.

Apologies for the delay, graduation traffic out there.

Um, we're gonna get started with today's budget and finance committee.

Uh I believe it's myself.

We have council persons Moda and Gerlach on the phone.

Yes.

Uh awesome.

Thank you guys for for joining.

Uh so we have starting off our session today.

We're gonna dig into a little bit of the the monthly financial reporting.

So we have uh director Patel in presence today.

Uh please feel free to lead it off.

Thank you.

Good evening.

Um so um I believe um on the due date, it was 16.

Uh, we provided you with the end of the month, um, April 30th, 2026 um monthly finances.

Um it reflects that general fund revenues are coming in at 48% of our budgeted amount, which is um currently 48% is close to uh 73 million, and general fund expenditures are at 27%, which is uh 42.3 million.

Um the revenues are net of NIS liability.

Uh just wanna remind uh council uh and the taxpayers that we started uh being more transparent on the uh liability we have on the NIS zone.

So that 72 point uh nine million reflects uh reduction on the on the NIS uh payments that we have to make the following year.

Um the other funds, so we have the risk fund, solid waste funds, stormwater, golf fund, rental unit fund, building code fund.

All of these funds are in line with the April expectations.

They are between 15% uh to 78% in revenues and expenditures.

So I don't see any concerns.

Um they are where we expect them to be around this time of the year.

Um I also would like to remind you that uh beginning from this year, 2026, we have um uh increased uh reality transfer tax uh percentage, and half of the uh uh revenue generated from transfer and real estate is deposited or revenue is recorded in the journal fund, and the um uh other half is in the housing fund.

And the total amount in the housing fund that's recorded uh as of April 30th is 664,000.

I also have some facts on the uh public safety overtime.

So you'll see on uh page two of my memo, uh the police overtime is at 746 um thousand, and we have budget at 2.6 million for police overtime.

Fire um overtime is at 867,000, budgeted amount is 2.6 million, and uh EMS uh uh overtime is at 243,000.

We have budgeted 725,000.

I also have some investment um activity for you.

At the end of April 30th, our general fund cash was at 68.5 million.

Uh we majority of our funds are invested in the Pennsylvania Local Government Investment Trust, which uh provides us with a uh higher rate of return on investment versus our uh current operating bank is the TD bank.

Um their yielding rate is three point uh three percent um even.

So Pligit, we have a 17.3 million in the prime or class account, which is like money market yielding 3.74% and the remainder of the funds in Plague It Um at 40 million is invested in term investments, yielding between 3.72 and 3.87% APY.

And the list um uh is provided for you on the term maturity, the value, and the return on investment amounts.

Uh again, that total is 40 million in term investments.

And the remainder from that 68.5 million is uh 11.1 million uh used for um uh our operating uh paying vendors, uh payroll expenditures.

Um so those are fluid uh expenditures, um funds in our TD bank.

And so that's my report for um the month end, April 30th.

Um I'll entertain any questions you have made for that for me.

Uh just kind of going through it.

I I currently thank you for the report.

I think it's always great to understand where we're at.

Uh so far, I guess for April, roughly about 33% of the way through the year.

It looks like some of the overtime kind of allocations are holding somewhat close to that range.

So I think that's always like an area where of concern at the end of the year when we start getting to the overtime, but uh we'll continue looking at that, making sure that it's these kind of on track.

Um anything else for the folks on the call on the monthly reporting at all.

I don't have any questions or comments.

Thank you.

Thank you.

So just a comment on that overtime, I do want to remind you that we had a major snowstorm and we needed the public safety um uh uh assistance, and they worked during that time, so that's why the overtime APC that it's a little bit higher than where we questions when she's not okay.

Where where we expect so the numbers might be a little bit higher than a year before is because of the um snowstorm.

Okay.

All right, thank you.

All right, uh Council Person Moda, feel free to go ahead with your question.

I don't know if she heard good, council person moda.

You can go ahead.

Okay, give me just one second, please.

Mr.

Bongo, I don't know if this is uh the right moment.

Um to last the question that I already posted the in the agenda.

Um and one of the questions is and and you know, we might not have all the answers, but um I still feel that um it's important for me to ask.

Um can speak briefly about the police pension and the drop liability.

Uh yeah, uh council person uh moda, thank you.

I I believe so that's specifically on the the drop liability program and kind of some of the thoughts on that.

Um I guess could you give us an overview on that and an understanding of what that is and for some of the folks in the room?

Sure, in broad strokes, in broad strokes, the drop is a deferred retirement program for police officers who have completed 20 years of service uh and who want to remain with the department.

Uh so what we owe so what will happen is when uh when a police officer who chooses to enter the drop program retires, uh they they they will remain in city service.

Their pension will be paid into a separate bucket in the in the pension fund, and they'll be able to that they'll so they'll accrue their pension as though they would have uh upon retirement, but they'll continue to serve this serve the city, and we paid out that additional pension in one lump sum when they leave up to five years later.

The reason that we that we as administration have decided to entertain the drop is because operationally it allows us to keep senior officers on the job and they can train younger officers as they come in uh to move into leadership positions.

So, you know, there are a lot of financial questions, and what we're gonna ask is that since it's a it's a very detailed financial matter, we're gonna ask for written questions and we'll give you thoughtful answers in writing uh next week at the at the at the hearing that's gonna be specifically on this issue.

But that's broadly that's what would a drop is okay.

So we don't have the exact number because we don't know how many police officers are gonna be joining us.

Yes, ma'am, that's correct.

We we you know we have an idea, and I believe our our financial analysis shows a range, which I think you have, but if you don't have it yet, we'll make sure you have it tomorrow.

Uh there's an actuarial study that presents a range.

And and and also you gotta let us know about um how it will impact the taxpayers and how much money uh every year this is going to incorporate yes.

Yeah, we I mean there's an actuarial study that's been done.

You I think you already have it, but that's gonna be the subject of next of the meeting where this is in committee.

So the study study was um conducted by our actual firm, which is Cairon, and it was provided it is uh as part um of the I think um the full council uh meeting uh is where this ordinance is being introduced and it is provided um for everyone's review and it does uh provide ranges.

Uh assumptions are made that depending on how many officers take part into this and the cost to the city based on that, and that will be recurring cost on every year.

And we can discuss that further uh during the special meeting that's going to be this um coming up.

I think it's next week.

Go ahead.

I was gonna say yeah, if if it isn't officially been posted, we'll make sure it's it's noted and okay, perfect.

So it has been posted.

Um yeah, thank you.

Go ahead.

I'm sorry.

Well, what was the last part, Mr.

Penn uh Mr.

Pongo, because I couldn't I couldn't hear you.

No, I just wanted to reiterate.

I wanted to thank you for asking the question.

I know um you brought up some great concerns about just the overall status of the program and and just you know the how we're funding it, projections in the long term, uh, and I and I really look forward to getting into that next week.

Okay, and I also would like to ask if she can also provide the financial impact on pending capital projects.

The list of the major pending and plan in in planned capital projects, including the new um public safety building, central fire life center and park and recreation facility projects.

Um the estimated cost, financial structure debt, the debt obligation and projected uh impact of taxpayer over the life of the of the financing.

Sure, absolutely.

So we I'll give you uh a small overview of how many capital projects we currently actively um are pursuing or working on uh different departments, public works, parks, uh obviously uh police headquarters we are constructing, and um other departments total active capital projects we the city has currently are 71.

Um that does not include the the uh life uh safety and wellness project because that technically has not begun.

Uh so that 71 active projects does not include that project.

And the total uh total budgeted amount for this 71 projects, which we have provided the capital report and the end of the first quarter.

So um by April 15th, we had provided the Q1 capital report, which included the uh we have budgeted 70 um 90 million dollars for the 71 capital projects.

Um specific detail on the status of the project.

We can have the um you know the director um connected to the projects can discuss, but the financial aspect I can provide the detail to you so when will this take place again?

Just uh are you referring to specific capital projects, uh council person moda, like like some of the ones that you list here, like the the public safety building or perks and record.

Yeah, so could you just give us a status on on those two particular, those are the two larger capital projects we're currently undergoing, correct?

Sure.

Uh police headquarters currently um we had the um um groundbreaking uh a few weeks ago.

Uh we have not um technically we have the 29 bids out for that project, and they're on the public platform.

Uh we have the bids will be opened on June 24th, and that's uh the actual activity on those bids will begin maybe a month after that.

So we we had um allocated or appropriated nine million of the federal ARPAR grant monies to that.

We have not spent any of the city of Alenton funds for this project yet.

And we uh still have about six million from that nine million that was appropriated for police headquarters, still in the budget because we are working towards beginning the construction project.

The design phase has been completed.

We have bids out for um you know various things.

We have 29 bids out.

Um so that's where the police headquarters uh project is at.

What was the other project you wanted to know?

Sorry, I believe we know all three Central Fire and Life Center, which you noted.

Central Fire has not begun, so that's technically not an active capital project.

Yes, it's not an active project because we have not began any activity on that.

We we have not issued any bonds as of yet.

Um so there's no um uh activity began, nothing to report on finance side of that project.

Uh we still have we are exploring which um we're in the f we're in site acquisition phase, so we haven't even acquired the site yet.

There we're we're looking at two sites right now, and we have to decide which we'll acquire, and then we have to acquire it.

Yeah, so essentially the cost of that could be abstract and not necessarily the final picture.

Uh and then I guess to the third one that uh councilperson Motor referred to the parks and recreation facilities, any specific current actions undergoing with parks and rec in their investment.

So I I don't have the details on that one, but I'll defer that to uh Mandy Tolino, who's the director of okay.

Yeah, and then I think councilperson Motor.

Go ahead.

Mr.

Ponco, and my third question will be about the stormwater fee, financial risk risk assessment.

Yeah, no, it's it's it will be good to review the potential financial impact associated with the recent uh with a recent Pennsylvania Supreme Court decision regarding the stormwater fees.

Um I know that is a little bit premature, but you know, to find out um how much money is gonna cost us, but it would be good to to review that.

The assessment of risk for the current budget year, a common budget cycles, and also any retroactive expos exposure related to the prior years.

Sure.

So analycing the potential impact to city revenue, operations, and capital planning.

That's my last question.

No, you it's a it's a good point.

It's it's a cause for grave concern.

We project something pretty close to 6.75 million dollars in stormwater fees that it's likely we will not be able to collect uh next year.

So we're exploring different avenues to recoup some of that money.

Uh, you know, we assess homeowners in Allen.

We assess per real property owners in the city of Allentown a fee.

Um that fee we can assess to nonprofits, but if we had to go other mechanisms, we we we can't do that.

So it's a six point seven five million dollar exposure that we have to make up.

Uh we'll have more information for you as we try to take steps to see where that money can come from.

And it's possible that there could be a change or we could change our ordinance.

So we're looking at all of those things, and hopefully over the next few months we'll come up with a solution that least affects the the people who have to pay taxes in Allentown.

I I am really concerned about this impact to our general fund.

So please keep in um keep me post and keep me informed.

Absolutely.

We'll keep you informed.

That's an excellent question, but we will make sure that you're you are connected to the updates.

And I guess just kind of thank you, Councilperson Moda.

Just kind of piggybacking off that thought.

Just I I can imagine your department's also reviewing currently any potential options for that.

I know, you know, Mr.

Kane, you you alluded to that.

So the administration's working diligently to mitigate that impact.

So I thank you for that.

Um additional questions, uh clarifications to anything previously mentioned or discussed, either councilperson Mota or Gerleck.

I'm okay, thank you.

Thank you.

Thank you.

All right.

Uh anyone else on the dias.

All right.

Thank you all.

And I will adjourn this uh budget and finance committee meeting.

Thank you.

Thank you.