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Bethlehem reviews 2026 budget; administration highlights real‑estate, EIT growth, pensions and ARPA strategy
Summary
City administrators presented a $244 million set of funds and a general‑fund plan that leans on property tax and earned‑income tax growth, one‑time grant and escrow uses, and a debt strategy that uses reserves and ARPA dollars to avoid new borrowing. Council pressed for details on lost‑revenue reimbursements and development incentives.
City of Bethlehem officials presented the second public hearing on the proposed 2026 budget, focusing on revenue projections, pension and medical costs, grants and the city’s plan to use reserves and American Rescue Plan Act (ARPA) dollars to limit new borrowing.
Business Administrator Eric Evans told council the city’s combined funds total roughly $244 million and that the largest reliable revenue source remains real‑estate taxes, reported at $35.5 million for the year. Evans said earned‑income tax (EIT) has been a strong driver recently — the administration projects roughly $12.5 million from EIT next year — and the budget includes conservative growth assumptions after several years of above‑average receipts.
“Real estate is still the bulk of it,” Evans said while walking council through the revenue pie and grant tables. He…
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