Second Budget Meeting - November 12, 2025
Second Budget Meeting - November 12, 2025
The Bethlehem City Council held its second budget meeting on November 12, 2025, to review proposed budgets for the Golf Course Enterprise Fund, Administration, Council/Mayor/Treasurer/Controller/Law Bureau, General Fund Revenue, General Expenses, Civic Expenses, and Debt Services. The meeting began at 6 p.m. and was adjourned after all presentations and discussions. No public comments were offered.
Public Comments & Testimony
- No members of the public provided comments during the meeting.
Discussion Items
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Golf Course Enterprise Fund (Pages 259-261)
- Presented by Business Administrator Eric Evans and PGA Pro Paul Viola. The golf course is an enterprise fund, self-sustaining since 1956.
- Revenues: 2025 projected record $2.3 million (up from $2.237 as of November with two months remaining). Post-COVID growth driven by increased play, especially on the nine-hole course and driving range. The nine-hole course sees 17,000–19,000 rounds annually; the 18-hole course 36,000–39,000 rounds. The restaurant lease (Clubhouse Grill) was renewed for seven years starting 2026. The cart barn lease (golf simulator) runs through 2027.
- Expenses: Four full-time year-round employees (two TAMS, two SEIU), supplemented by seasonal crew. Propane costs will shift to the restaurant in 2026. General fund charges include medical, pension, and bond redemption ($125,000/year for a 20-year note from 2018).
- Capital Improvements: Since 2018, investments in drainage, irrigation, pavilion, bunkers, cart paths, turf equipment, and a new pro shop (completed 2024) have improved conditions and revenue. Next project: replacement of the deteriorated barn at the recycling center (two-story, estimated cost pending).
- Council Questions: Councilman Callahan suggested adding a pond on hole 15 as a water feature (wish list item). Councilman Kitzer inquired about electric golf carts; Paul Viola noted lack of covered charging infrastructure. Councilwoman Wilhelm asked about student discounts (still offered) and the virtual golf simulator (successful). Councilwoman Leon praised the course and restaurant.
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Administration Bureau (Pages 29-45)
- Presented by Eric Evans. The administration is lean (2 people: Business Administrator and Director of Budget). Key achievements: completed four-year SEIU contract (2025-2028), upcoming FOP and IAFF contract negotiations for 2026.
- IT (Administrative Services): Led by Jonathan Pelosi, five staff. New expense: Windows 365 subscription ($205,000) for all city devices. IT handles hardware, software, security, body cams, cameras. Mayor noted future need for system integration across departments (costly and complex).
- Financial Services: Director Joe Vlasic oversees 10 balanced budgets totaling $244 million. Focus on cross-training and process improvements.
- Procurement: Staff of two (Sandy Steidel, Shane Filman). Uses SharePoint for contract tracking.
- Tax Bureau: Single tax auditor (Ellie Rosario) with a vacant part-time position. Tax collection outsourced to Keystone (county) and Tri-State (contract two more years).
- Human Resources: Staff of three (Director Michelle Sahaki). 77 hires in one year, handles payroll, medical, pension, and compliance.
- Councilwoman Wilhelm thanked the teams; Councilwoman Cramsey Smith praised HR for hiring volume.
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Mayor's Office Budget (Pages 14-17)
- Presented by Mayor. The office has 3.5 staff (Director of Mayor's Initiatives, Director of Equity & Inclusion, Chief of Staff, and a part-time executive assistant). Achievements listed include 39 items across climate action, community engagement, etc.
- Professional Services: $18,000 contract with Lehigh Valley with Love for communications and social media (live streaming, recruitment videos). Councilman Callahan questioned the necessity; Councilwoman Cramsey Smith and Councilman Koltai defended the value. Mayor noted this is more cost-effective than a full-time communications officer ($70,000+ salary).
- Council voted to not increase the controller's salary (per Controller George Yasso's request).
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Controller's Office
- Presented by Controller George Yasso. Staff of two (Michelle Ann Millward, Michelle Liberto). Goals: increase electronic payment capabilities, strengthen policies and procedures. No budget changes.
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Law Bureau
- Presented by City Solicitor Jack Sperks. Budget increased 5.13% to $473,000 due to 3% salary increase and 27th pay. No questions.
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General Fund Revenue (Pages 1-4)
- Presented by Eric Evans and Mayor. Total revenue $112.8 million.
- Real Estate Tax: $35.5 million (1.2% increase from development).
- Earned Income Tax (EIT): $11.9 million (5% growth, up $600,000). Mayor noted city is limited to 1% EIT by law; other cities have higher rates, but Bethlehem's financial prudence prevents raising it.
- Cable TV Franchise: Declining (down to $600,000 from $1 million+).
- Ambulance Fees: Projected $4.2 million (increase due to federal Medicaid/Medicare rate changes and added crew).
- Investment Interest: Reduced to $750,000 (from $1.1 million) due to expected rate cuts.
- 27th Pay Escrow: $2.2 million one-time revenue to offset salary expense.
- Host Fee: Increased from $99,000 to $114,000 due to Act 42.
- Councilman Callahan raised concerns about lost revenue from Martin Tower site (unsold) and asked for a calculation of potential EIT and permit revenue.
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General Expenses (Pages 171-175)
- Pensions: $13 million total (police $7M, fire $3M, PMRS $3.3M). Flat compared to prior year due to strong market returns (cumulative 20% growth in 2023-2024).
- Medical: Self-insured, stable. Mayor warned of future cost pressures from ACA subsidy changes.
- Civic Expenses: Library $1.15 million (unchanged). Community Recovery Fund, Homeless Initiative, Affordable Housing funded at $4 million (carryover from ARPA). Fine Arts Commission requested $15,000 but received $12,000. Sister City Commission budget unchanged.
- Councilwoman Leon asked about accumulated sick leave liability (OPEB).
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Debt Service (Pages 170-181)
- Presented by Eric Evans. Total debt service $10.8 million in 2026, flat from prior years. City has paid down $44 million from $121 million in 2022. Remaining $77 million. Possible refinancing in 2026 if rates drop. No new debt planned for 2026 capital projects; $22 million in reserves will fund capital needs.
Key Outcomes
- No votes were taken; this was a discussion meeting.
- The third budget meeting is scheduled for Thursday, November 20, 2025, at 6 p.m.
- A potential final budget meeting will be Thursday, December 4, 2025, at 6 p.m.
- Final reading and enactment of the 2026 budget ordinance will occur at the Tuesday, December 16, 2025 council meeting.
- The meeting was adjourned at approximately 8:45 p.m.
Meeting Transcript
I will call the second budget meeting to order and ask the clerk to call the roll. Ms. Malahan. Present. Ms. PMC Smith. Present. Ms. Quitec. Present. Laird. Ms. Leon present. Ms. Wilhelm. Present. And Mr. Cologne. Councilman Laring, Councilman Cologne will not be joining us tonight due to family emergencies. YouTube reminder if you start this meeting after 6 p.m., make sure to scroll ahead so that the YouTube stream is current rather than a recording of an earlier portion of this meeting. The following proposed budgets will be reviewed tonight. Golf course enterprise fund on page 259, administration on page 27. Council Mayor, Treasurer, Controller, Law Bureau on page nine, general fund revenue on page one, general expenses on page 170, civic expenses 174, debt services 178. After each topic, I will recognize council members for questions. After certain topic groupings, I will take public comments solely on those topics. First up is the golf course enterprise fund. I'll recognize Mr. Eric Evans Business Administrator to make the presentation. Yep. Night two of three. So to kick it off, we do start with the golf fund. I will begin by uh introducing Mr. Paul Viola, who is the PGA pro out of the golf course and runs it 12 months a year, seven days a week, sun up to sundown. And although the course closes for play at 11 30 into December, still a lot of work that gets done in order to prepare for the opening each year, and that's weather dependent. But I think this year we started in March 12. Okay. But he is also golf pro, but he's also the general manager. So we'll be in charge of all operations at the golf course. So if you turn to page 259, we'll start with the operating revenues of the course. We'll begin by saying some of the opening ideas is that the golf fund, the golf course itself was established and built and opened for play in 1956. It is an enterprise fund. So like some of the funds we talked about the other night, they're self-sustaining, independent of the general fund. There are a number of sources of revenues, and you'll see them listed on page 259. But there's an 18-hole course on Illox Mill Road. Across the street from the 18 hole is a nine-hole course, and we collect both green fees and cart rentals, and you'll see those listed. Next to the nine-hole course on Illox Mill Road, which is behind um there's uh the I guess the cabin that also is the driving range, and that's open every day at the golf course is open. It gets a lot of play. This is something that used to be a side note, and really since the improvements were made, things have taken off, much like they have um on the as at the course as well. But even that picture you see in the bottom, it's loaded with men, women, and children. Almost any nice day, you're gonna see it filled up.
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