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Allentown finance director reports 2025 closeout, explains NIS liability reporting
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Summary
Finance Director Patel told the Budget & Finance Committee that the city closed 2025 with several funds near expectations, reported a $4.3 million Neighborhood Improvement Zone (NIS) certification for 2025, and described how the NIS liability is shown as negative amounts under each tax type in monthly reports.
Director Patel presented the committee with final budget-to-actual reports for Dec. 31, 2025 and an updated February 2026 report, outlining how the city is recording Neighborhood Improvement Zone liabilities and the year-end positions for major funds.
"As of Dec. 31, 2025, year-to-date journal fund revenues, net of NIS payments, totaled $247,800,000, while actual revenues were $152,200,000," Director Patel said, and explained that the city certified $4,300,000 in NIS-related amounts for 2025. Patel said the collector Berkheimer had escrowed $11,775,480.51 for the city and remitted payments to the Pennsylvania Department of Revenue as part of the certification process.
Patel described reporting changes intended to increase transparency: the estimated NIS liability is shown on the monthly report as a negative amount beneath each affected tax or fee category so reviewers can see the underlying estimates. "If you look at the report, you'll see it as under each tax type and fee listed as a negative number," Patel said.
On broad fund performance, Patel said 72% of general fund revenues are from taxes, 14% from intergovernmental sources and about 8% from other sources. He reported adjusted general fund expenditures near 93% of the $154,700,000 adjusted budget and net expenditures of about $152,300,000; personnel costs represented roughly 72% of general fund spending (about $109,700,000).
Patel also summarized other fund results: the solid waste fund and related enterprise funds closed near year-end expectations (solid waste about $23.9 million), stormwater revenue was modestly stronger year over year, and the newly established building code fund recorded higher-than-budgeted revenue in its first year (reported in the packet as approximately $4.2 million with expenditures near 90% of its adjusted budget).
On investments, Patel said the general fund cash position at year end was about $39.8 million, with the bulk held at the Pennsylvania Local Government Investment Trust and liquid operating balances held at a commercial bank for payroll and vendor payments. Patel listed term investment maturities and reported investment yields in the mid-to-high 3% range for the vehicles noted in the packet.
Patel paused for questions and said that some of the more detailed NIS files are large and contain sensitive information; staff offered one-on-one walkthroughs for council members who want to review the full workpapers. When asked whether the NIS figures appear in the materials provided that evening, Patel said the February report includes the liability entries but the lower-level files are not in the standard packet and can be made available for review.
The committee did not take action on the reports; members thanked the finance team for the presentation.
