Allentown City Council approves mayor's 2026 budget as amended after 4-3 vote

Allentown City Council voted 4-3 on Jan. 13 to approve Bill 1, the mayor's proposed budget, after adopting an amendment that incorporated items listed in Bill 2.

Councilperson Darlene Gerlach proposed the amendment to add provisions from Bill 2 to Bill 1, initially including a $50-per-unit reduction in the garbage/waste fee. Gerlach said the amendment would "include all of the items that are listed, all of the amended items that we previously voted on, which are included in bill 2." After discussion about the fiscal effect of the fee cut, Gerlach revised the motion to exclude the $50 trash-fee reduction before the council voted on the amendment.

City administration staff member Miss Patel told council the proposed $50-per-unit reduction would create an approximate $2,000,000 shortfall that the "journal fund" would lend to the solid waste fund. Patel said the loan would be "a borrowing for 5 5 years at a 3% interest rate," tying the 3% figure to the city's current TD Bank returns and noting the city had made similar intra-fund loans in 2024 (an $817,000 loan).

Council members debated procedure and long-term cost implications. One councilmember argued that voting against the budget could put the council in conflict with Pennsylvania's requirements for a balanced budget, saying a no vote risked violating state law; that same member said they would present a resolution at the next council meeting (Jan. 21) to clarify procedures and consequences if an agreement is not reached in future budget cycles.

The council voted first to adopt Gerlach's amended amendment (which excluded the garbage-fee reduction); the amendment passed 7-0. On the final roll-call for Bill 1 as amended the votes were: Safa (yes), Bender (yes), Gerlach (no), Moda (no), Pongo (yes), Santos (no), Napoli (yes). The chair announced the motion passed 4 yeas to 3 nays, approving Bill 1 as amended.

Council members confirmed that the items listed in Bill 2 had been incorporated into Bill 1 through the adopted amendment, and no separate ratification of Bill 2 was required. The meeting was then adjourned.

The council recorded no final decision on reducing the garbage fee; administration said using the journal fund to cover the shortfall would involve borrowing with interest and carries implications for the general/journal fund that the council flagged for further review. A councilmember plans to present a resolution on Jan. 21 to clarify procedures for future budget impasses.