Amid lingering confusion, Allentown to review city’s process for adopting budget | Allentown Area

ALLENTOWN, Pa. – Allentown City Council approved a resolution to conduct a review and analysis of the city’s budgetary process Wednesday night at city hall.

The legislation appoints two councilmembers — Jeremy Binder and Cristian Pungo — to work with the budget and finance committee and council staff to conduct “targeted review and analysis of the city’s budgetary process.”

The review and analysis include reviewing the development and adoption of the city’s budget, comparing Allentown’s budget process to other municipalities’ model city charters and practices, and identifying procedural impacts “that occur when budgetary agreements are not reached and evaluating options to clearly define and address those gaps moving forward.” Additional reviews and analysis could also occur, according to the bill.

The resolution was adopted in response to the city’s most recent budget season. Mayor Matt Tuerk’s proposed 2026 budget contained a 3.96% tax increase. In addition, a $140 annual increase to the city’s trash fee was included.

This amount proved too much for the majority of councilmembers, who in response passed a budget with no tax increase and a trash fee reduction. However, Tuerk opted to veto that budget. At a Dec. 30 special meeting, City Council was unable to secure the votes required to override the veto. Then on Jan. 13, City Council voted 4-3 to approve Tuerk’s original $245 million budget with the almost 4% tax increase .

This led to uncertainty about whether the city had approved a budget legally or not, based on city solicitor Maria Montero’s interpretation of the law.

The issue stemmed from the city’s Home Rule Charter, which originally included a Dec. 15 budget default if City Council failed to adopt a veto-proof budget by that date. Under this scenario, the mayor’s originally proposed balanced budget would become the city’s official budget for the ensuing fiscal year.

However, this was complicated by a referendum approved by voters on Nov. 5, 2019, which removed the automatic budget default process, requiring City Council and the administration to adopt a budget by Dec. 31. However, the bill approved noted the referendum “did not account for procedures, provisions nor closure if council and the administration did not adopt an annual budget by Dec. 31.”

Wednesday night’s vote failed to garner comments from either city council members or public. The vote was unanimous.