ALLENTOWN, Pa. — Allentown City Councilwoman Candida Affa says she’s worried about a double-digit tax increase for Allentown in 2027 for two reasons.
The first is the city’s capital projects, like a $37 million police station and a $65 million Fire station and Health Bureau.
Second is the city’s stormwater fee, paid by property owners to fund federally mandated flood-prevention and drainage infrastructure.
In April, the Pennsylvania Supreme Court ruled West Chester’s fees were a tax, to which non-profits are exempt.
There was no mandate that the money be refunded.
But Affa says if Allentown were forced to do it, it would be devastating to the city budget.
Managing Director Frank Kane says the city believes Allentown’s stormwater fee is valid.
“We don’t think that it’s fair to give nonprofits a free pass and to balance that on the backs of the taxpayers,” said Kane.
Kane says while a tax increase is on the table, it’s too early to know if it will happen or how much it could be.
“We are in difficult times, and we’re taking the measures that one takes. We’re cutting things that can be cut. We’re re-examining capital projects,” said Kane.
Kane says the police station project is moving forward, but the Fire and Health Bureau project will be trimmed down.
Kane says the administration is working closely with city council to find cost savings.
Council President Santo Napoli said:
“City Council is committed to continuing to deliver the vital city services our residents expect and count on while collaborating with the financial auditor to identify the best solutions to minimize the financial impact to our residents.”
While the city believes its stormwater fee is valid, Kane says they are exploring ideas like a stormwater authority.
Council President Napoli says the council has hired a consultant to help them take a hard look at the budget, and he doesn’t believe there will be a double-digit increase.
Affa says she will do everything in her power to prevent it.
The first draft of the budget comes out in mid-October.