ALLENTOWN, Pa. – Allentown City Council heard a proposal from the administration Wednesday night for an alternative property tax and trash rate.
Finance Director Bina Patel said the administration is proposing to council that the 3.96% tax increase be kept in the 2026 budget and the trash rate be decreased by $25.
Two weeks ago, council rejected Mayor Matthew Tuerk’s proposed 3.96% tax increase by voting to amend the proposed 2026 budget.
Most of the council felt the financial shortfall in the mayor’s $246 million spending plan could be closed by using the city’s healthy $50 million fund balance.
On top of the proposed tax increase, there was a $140 increase to the annual trash bill, which would have brought the annual residential trash bill to $740.
In the revised version, the hike in the trash fee would be $115, making the trash bill $715.
“This is a more balanced approach where we can keep the property tax increase, which will generate a revenue of $1.5 million for the general fund,” Patel said. “What the proposal is showing is that bottom line impact to the taxpayers on fixed income and limited income is actually less or there’s a savings to them.”
Patel said the higher impacts would be to the higher value properties.
“What this scenario is showing you is that the impact to the property owners on a fixed income and smaller parcel is either savings or lesser of an impact versus a larger parcel,” Patel explained. “So, this new proposal is actually assisting the taxpayers on a smaller parcel, fixed income or limited income.”
Councilmember Ed Zucal was not impressed with the proposal.
“What you’re doing here is you’re just kicking the can down the road because at some point, you’re going have to make up that $25. Dollars next year or the year after because we have a (trash hauler) contract,” Zucal said.
Patel said the city would loan the solid waste fund the difference between the $740 per unit and $715 per unit, which would equal about $1 million.
“So this is a nice idea,” Zucal said. “I appreciate you trying to help the citizens, but down the road, they’re going to pay it back anyway.
“So you’re robbing Peter to pay Paul,” he said.
Patel said that isn’t the case, as the “small increase in property tax” would be a recurring source of revenue she said the city needs to keep its financial stability strong to maintain its credit rating for future projects.
Councilmember Ce-Ce Gerlach said the idea was a good effort but said the reality of a tax increase means that landlords use that as an excuse to raise rents, which hurts the low-income residents of the city.
Council has scheduled a special meeting on Dec. 10 at 6 p.m. to make any decisions on proposed amendments to the 2026 budget.
The budget is then expected to be adopted at the regular meeting, following the special meeting.