Allentown City Council has authorized a bond issuance of $134 million to address critical infrastructure needs within the city. Despite some council members expressing concerns regarding potential debt implications, the decision aims to finance essential projects, including a new police headquarters and a facility dedicated to life safety and wellness, which will replace the city’s fire and health bureau buildings.
The plan, presented by financial adviser Tom Beckett, involves taking out three installments of $41 million each between November 2025 and September 2028. According to Bina Patel, Allentown’s finance director, this bond issuance represents the largest amount the city has ever borrowed.
City Council member Ed Zucal, who voted in favor of the issuance, raised alarms about the potential financial strain on the city due to future debt payments, predicting that they could “kill the city.” Financial forecasts indicate that annual debt payments could reach nearly $15 million by 2036, a significant increase from $8.34 million in 2025. Zucal, who is also challenging incumbent Mayor Matt Tuerk in the upcoming November election, emphasized the need for caution.
“If we vote on this, we are going to kill the people. We are literally going to kill the city,” Zucal stated, underscoring his concerns about the financial implications of the bond. He pressed Patel for projections regarding the city’s deficit in 2026, although she noted that the budget for that year is still being finalized. Notably, the city has passed a balanced budget for 2025 without a deficit.
Patel defended the necessity of the bond, explaining that now is an opportune time for such investments due to the city’s improved financial standing. She warned that delaying infrastructure repairs and replacements could lead to more substantial costs in the future. “For many, many years the city did not have the financial strength to work on these projects,” she remarked.
Other council members acknowledged Zucal’s concerns but argued that the city is in a robust enough financial position to manage the anticipated debt service. Santo Napoli, who chairs the council’s budget and finance committee, stated, “We have to start investing. The fact that we haven’t is why we’re having this conversation now; that fire station should have been replaced 10 years ago.”
In recent years, Allentown has faced significant financial challenges, including structural budget deficits and a downgraded bond rating. However, the city’s rating improved from A3 to A2 last year, according to credit agency Moody’s, indicating a “low credit risk.” This upgrade allows the city to secure a lower interest rate on the bonds.
Zucal proposed a more conservative approach, suggesting a bond issuance limited to $95 million, which would fund only two of the proposed buildings. Tuerk has stated that the new “life safety and wellness” building and the police headquarters are among the city’s top infrastructure priorities. The current Central Fire station has numerous issues, including roof leaks and insufficient parking for fire trucks, while the police headquarters are struggling to accommodate a growing department.
Despite Zucal’s suggestion, his motion did not garner support from other council members. The bond funds are intended to allocate $65 million for the new fire department and health bureau building, $30 million for police headquarters renovations, $18.7 million for park improvements, and $17.5 million for public works upgrades.
Experts project that a total of $123 million is needed to finance these infrastructure projects. The city has requested $134 million to allow flexibility for additional projects or to accommodate rising costs from inflation and other economic factors. The City Council will ultimately decide which projects move forward during the 2026 budget process later this year.
Additionally, council member Ce-Ce Gerlach expressed interest in proposing that some of the bond funding be allocated for a citywide homeless shelter, highlighting the absence of year-round emergency shelter options for homeless residents in Allentown.