BETHLEHEM, Pa. — Mayor J. William Reynolds on Thursday presented a 2026 municipal budget proposal he said keeps essential promises to city employees and supports generations to come in Bethlehem.
“We talk about historic preservation — there is nothing that we should preserve more in this community than the idea that we invest in the future,” Reynolds said to about 100 people gathered for his budget address in Moravian University's Foy Concert Hall.
“We talk about historic preservation — there is nothing that we should preserve more in this community than the idea that we invest in the future."The more than $112 million spending plan includes no property tax increase, hefty payments toward city debt, a “27th pay” allocation and no capital borrowing for the next four years.
And as Reynolds emphasized, “The city will always keep our salary, pension, and healthcare obligations.”
Two years ago, City Council voted to raise taxes 2.6% to hire four new paramedics.
The city’s first budget meeting is scheduled for 6 p.m. Nov. 10, at Bethlehem Town Hall, 10. E. Church St.
'We invest in the future'
Other highlights from the budget address:
- Replacing a ladder truck and fire engine, which cost $2.55 million and $1.23 million, respectively
- Proposing $300,000 for the new fire recruit training budget, with plans to send 15 cadets to Allentown Fire Academy
- 68% of the police fleet replaced in past five years; five or more new patrol vehicles proposed for 2026
- Police, Fire and other collective bargaining members get salary increases of 3%, totaling $1.52 million
- $130,000 in reduction of lease payments and line items; and new sustainable expenses of $1.21 million
- Earned income tax of 1% bringing in $600,000; $444,000 in natural real estate tax growth; $250,000 in assorted business development revenue growth; and EMS revenue of $300,000
- Lost revenue of $2 million in American Rescue Plan money
- $16.39 million in total pension payments, accounting for 347 police, 222 fire and more than 700 municipal employees total; pension is 92% funded
- Proposing to add two employees to help in increased construction permit activity (more than 4,500 permits issued last year)
- The city has an AA- Stable bond rating as of April 22, 2022, which Reynolds said puts the city at the top of the 10 most-populated cities around the state
- $77 million in city debt as of January; new budget calls for $41 million more to be paid over the next few years (revenue currently outpacing debts). Reynolds also said the city may get a chance to refinance the debt at hand
- The city is self-insured for health insurance, budgeted at just below $80 million. Reynolds said the city has been able to keep the medical general fund “under control,” but federal uncertainty surrounding health care benefits may bring some challenges ahead.
