Finance committee forwards water and sewer budget reconciliations, including $500,000 transfer, to full council

The Bethlehem City Council Finance Committee on Monday reviewed six budget adjustments and recommended approval of all six items to the full council, including reconciliations in the sewer and water capital funds and a $500,000 transfer from the water operating fund into the water capital account.

Chair Michael Cologne opened the meeting and outlined the agenda; he said the committee would consider items 1–5 as a group and then vote. Department head Ed Boscol presented the water and sewer items and explained that the adjustments reset fund balances from the October 1 budget baseline to a true January 1 balance.

Boscol said the sewer capital fund cash balance rose from about $6.5 million on Oct. 1 to roughly $6.88 million on Jan. 1, a net positive change of about $291,000. "When we put the budget together in the fall, we use October 1st as our set point," Boscol said. To balance the budget, the administration matched the revenue change with a corresponding increase on the expenditure side and adjusted several line items: the sewer collection system new/renewal account will receive $100,000 more for capital work; sewer trench restoration is reduced by $100,000 because a bill paid in the fourth quarter; and unassigned future capital dollars were reduced by about $28,000 to make the worksheet balance.

On the water side, Boscol said the city spent the construction fund down from $321,000 to zero during the fourth quarter and proposes a $500,000 capital appropriation from the water fund balance to the water capital fund. That transfer, he said, results in an overall net decrease in available water capital for 2026 of approximately $327,000 once expense adjustments are accounted for. Boscol also said the city plans to accelerate lead service line replacements and to invest in facility improvements at Wald Creek and the filtration plant.

Councilwoman Hillary Quiet asked whether the $500,000 transfer reflected higher-than-expected bids for the planned water tank. Boscol replied that the tank was budgeted with contingency and that construction costs overall have risen substantially since the pandemic, affecting the cost of pipe, tanks, pumps and labor.

The committee voted unanimously to recommend approval of the grouped items 1–5 and then separately voted to recommend approval of item six (the fire department resolution). The clerk recorded the committee votes as 3–0 in favor of placing items 1–6 on tonight’s full council agenda, with the council meeting scheduled to begin at 7 p.m.

The adjustments presented are reconciliations to align the budget with year‑end actuals and do not themselves authorize new long‑term borrowing; the administration said the transfers and line‑item changes will be reflected in the legislation forwarded to the full council.