Proposed city budget includes tax increase
Tuerk indicates property hike needed to bolster essential services in Allentown
Allentown residents will pay 6.9% more in property taxes next year if City Council passes Mayor Matt Tuerk’s proposed 2024 budget.
Tuerk made his case for a tax increase at a press conference Monday afternoon, arguing that it is necessary to keep providing essential city services in public safety and parks and recreation.
“We’ve grown, and we need more people on the job,” Tuerk said.
Tuerk’s budget would add 21 new jobs to the city of Allentown, including 12 more firefighters, one more SWEEP (Solid Waste Education and Enforcement Program) officer, three police technicians, two additional custodians and one additional traffic and street maintenance staff, as well as two brand new positions: a sustainability coordinator and arts and culture coordinator.
Tuerk, holding a copy of the city’s 1975 budget address, presented data points to illustrate the city’s increased need for services.
That year, Allentown’s firefighters responded to 2,156 calls for service. By contrast, Allentown firefighters responded to more than 10,000 calls in the first three months of 2023 alone.
He said the new positions will help the city serve a growing community; he
said the 2020 census which estimated the city has about 125,000 residents is “almost definitely” an undercount, and said he believed the city’s size is closer to 135,000.
The proposed budget also would earmark nearly all of the city’s remaining American Rescue Plan dollars — around $10 million to replace the city’s Central Fire Station and police headquarters.
Allentown’s 2024 budget would bring the city’s tax millage rate from 23.5376 mills up to 25.1628 mills. The tax increase would create an additional $2.6 million in revenue which will help the city balance its budget this year, Tuerk said.
The city’s trash collection fee will also increase by around $120 annually, which Tuerk said is necessary to make sure the city receives the “best quality services.” Other nearby cities including Bethlehem enacted trash fee increases as recently as last year.
Cynthia Mota, City Council vice president, said she was “concerned” about the impact of the proposed increase of Allentown’s residents. “We have a poor community and we have to be mindful of that,” Mota said.
She encouraged Allentown residents to come to the city’s budget hearings, which will begin 5:30 p.m. Oct. 25 in city hall, and voice their thoughts on the budget. City Council has the final say on the budget and can make amendments. Council is expected to hold a final vote on the budget 9 a.m. Saturday, Nov. 4.
Allentown most recently had a tax increase in 2019, when former Mayor Ray O’Connell vetoed City Council’s proposed budget, which did not include a tax hike, and enacted a 27% increase. Before that, the city had not seen a tax increase since 2005.
Tuerk said that previous mayors relied on new land development to grow the city’s tax base and fund city services, but that doing so is no longer sufficient to keep up with the city’s investment needs.
“[Development] has been great, but it hasn’t kept up,” Tuerk said. “This is a budget that proposes to maintain financial strength and continue to meet the needs of a growing and changing city.”
The city’s most recent five-year plan projects annual deficits of $2.2 million to $3.2 million through 2025, meaning the city would have to deplete its cash reserves if it does not hike taxes or cut spending.
Despite that outlook, Tuerk said that the city will be in a good financial position if council passes the proposed budget. The city’s tax base is expected to grow in 2024.