Bethlehem signs off on 'sustainable, efficient budget' with no tax increase for 2025

BETHLEHEM, Pa. — City Council on Tuesday unanimously approved a $112.49 million spending plan for 2025, holding steady on property tax rates.

The property tax rate will stay at 19.64 mills in the Northampton County part of Bethlehem and 6.21 mills in the city’s Lehigh County portion.

That means the owner of a home with a $200,000 tax assessment would continue to pay $3,928 in Northampton County.

Lehigh County property taxes are based on the property’s fair market value, so the owner of a home assessed at $300,000 would pay $1,863.

The city’s property tax millage rate rose 2.6% under last year's budget — the first time since 2021, when it went up 5%. The 2024 hike was approved to make room to hire four new paramedics and upgrade first-responder radios.

The 2025 spending plan, balanced at $112.49 million, calls for:

• $315,000 to send two classes of fire department cadets for academy training, instead of just one group the year prior 
• Eight new police cars 
• More than $35 million in real estate taxes and $11.9 million in earned income tax projected — both up from $34.29 million and $10.75 million from the previous year
• $8 million budgeted for the city’s medical benefits general fund. According to the mayor’s Oct. 30 budget presentation, “The city will always keep our salary, pension, and healthcare obligations”
• Assorted business development revenue growth of $600,000

Though budget hearings over the past few months have been “a bit of a grind,” as said by city Business Administrator Eric Evans, they have come with fair questions and dialogue from both council and the public.

That led to a spending plan that’s ultimately a shared vision of all parties, he said.

“We have a sustainable, efficient budget that has great investment in public safety and investment in our critical infrastructure, and it’s done in a responsible way,” Evans said.

Councilwoman Hillary Kwiatek called the new spending plan “strong” and “conservatively budgeted.” She said last year’s property tax hike was approved with residents’ best interests in mind.

“I just wanted to kind of remind folks why we are in such a good position right now, and part of that is the responsibility that we take in sometimes having to increase that millage rate,” Kwaitek said.

'Nuts and bolts' of city government

Councilwoman Rachel Leon said of community feedback on the budget: “This is [my] third go at it, and this is the year that I’ve had the most community members reach out to me about questions regarding the budget meetings that they’ve watched.”

Council President Michael Colón said the city budget shows the true “nuts and bolts” of municipal government, and just checking out a hearing can even make a good starting point for those looking to better understand where it is they live.

He reflected on his pre-council days.

“And now, as I know a little bit more, I’m glad those were some of my first meetings that I attended, because if there’s anything to know about how your local government works, about how Bethlehem works — it’s the budget,” Colón said.

Councilwoman Colleen Laird said, “I think that there are a lot of really exciting initiatives included in the budget, a lot of good plans and a lot of people throughout our community, of all different walks of life, who will benefit from the way that the dollars are being spent.”