Audit shows progress and budget signals improve; council approves shelter donations and a permit-fee waiver

Mayor Dorinda Borer told the council on Feb. 10 that the city’s draft audit for the year ending June 30, 2024, produced favorable results and that work to clear repeat audit comments is showing progress. She said the city received a supplemental consultant review from Protiviti that shows additional issues have been cleared since the audit date.

Borer also summarized state-level budget signals in the governor’s proposed budget, saying the administration’s projections include an increase in Education Cost Sharing of about $2.9 million for the school district, about $663,000 more in PILOT (state property reimbursement), and roughly $673,000 in motor-vehicle-reimbursement increases — all described as governor’s-proposed figures subject to change in the legislative process.

Why it matters: Higher state aid would reduce pressure on local taxpayers and help the board of education and general fund planning ahead of the municipal budget process.

Finance director Michael Gormani presented the monthly report for December 2024. Highlights he gave to the finance committee: - General fund collections were about 52.5% of budgeted revenue through December, with roughly 43.6% of expenditures recorded through that same date. - The Allentown Fire District showed stronger-than-expected revenue and lower proratables against budget at that snapshot in time. - The sewer fund may face a small projected deficit driven by overtime and equipment/repair costs; the city monitors the department monthly and may consider an interfund transfer if needed.

Mayor Borer said she and staff are meeting with department heads on operating and capital requests as part of the budget process.

MARB oversight: Borer said the Municipal Accountability Review Board (MARB) subcommittee will meet to clarify language added last year to the exit criteria — specifically the ambiguous standard about avoiding "unsound financial practices." She described the city as having met the original statutory criteria and said the subcommittee would make recommendations to the full MARB later in February and to that board at its Feb. 27 meeting.

Votes at a glance (formal actions recorded at the Feb. 10 meeting): - Animal shelter donations: City Council approved forwarding donations totaling $1,800 into the animal-shelter donation account. Motion carried; no roll-call tally recorded in the minutes. - Cystic Fibrosis Foundation walkathon: Council approved a mayoral request to waive permit fees for the May 10 walkathon. Motion carried; no roll-call tally recorded in the minutes.

Meeting context: The finance committee recessed into its session, received the monthly financial report and closed after approving the two communications. Committee members asked for the monthly reports by email and for more granular sewer-fund forecasting.

Ending: Mayor Borer said budget and audit work will continue through the budget calendar; the MARB subcommittee meeting and the statewide legislative process on the governor’s budget will shape final aid estimates. Council and staff asked the administration to circulate finance reports and to keep the council informed of MARB developments.