Allentown Secures $134 Million Bond for Vital Infrastructure Projects
The Allentown City Council has approved a significant bond issuance of $134 million aimed at addressing pressing infrastructure needs within the city. This decision comes despite concerns from some council members regarding the potential impact of increased debt on the city’s financial future.
Tom Beckett, the city’s financial adviser, presented a detailed plan that includes three installments of $41 million each, scheduled between November 2025 and September 2028. The funds will primarily support the construction of a new police headquarters and a “life safety and wellness” building, which is set to replace the existing fire and health bureau structures.
According to Bina Patel, Allentown’s finance director, this bond issuance marks the largest amount the city has ever borrowed for infrastructure projects. Concerns were raised by council member Ed Zucal, who expressed apprehensions about the long-term feasibility of such debt, noting that annual debt payments could rise to just below $15 million by 2036, compared to $8.34 million in 2025.
Zucal, who is also running against incumbent Mayor Matt Tuerk in the upcoming November election, stated, “If we vote on this, we are going to kill the people. We are literally going to kill the city.” He questioned the city’s ability to manage future financial obligations, particularly given that the upcoming budget for 2026 is still under discussion.
Despite these concerns, Patel maintained that the city is in a stronger financial position now than in the past, making this an opportune moment to invest in critical infrastructure. “For many, many years, the city did not have the financial strength to work on these projects,” she said.
Other council members voiced their support for the bond issuance, emphasizing the importance of investment in the city’s infrastructure. Santo Napoli, chair of the council’s budget and finance committee, highlighted the urgency of addressing longstanding issues, noting that the current fire station should have been replaced a decade ago.
Allentown’s financial landscape has improved since facing structural budget deficits and a downgraded bond rating in 2018. Last year, the city received a credit rating upgrade from A3 to A2 from Moody’s, indicating a “low credit risk” and enabling access to lower interest rates on the bond.
Zucal proposed limiting the bond issuance to $95 million, which would cover only the construction of two critical buildings. However, his motion did not receive support from other council members. The city plans to allocate $65 million for the new fire department and health bureau building, $30 million for police headquarters renovations, $18.7 million for various parks improvements, and $17.5 million for public works enhancements.
Financial experts project that the total cost for the infrastructure projects will be approximately $123 million, leading the city to request a higher bond amount to account for potential cost overruns due to inflation and other economic factors.
City Council will ultimately decide which projects will proceed during the budget process for 2026. Council member Ce-Ce Gerlach expressed interest in proposing some of the bond funding for a citywide homeless shelter, as Allentown currently lacks a year-round emergency shelter for homeless residents.
In light of these developments, Allentown is poised to take significant steps towards enhancing its infrastructure while navigating the complexities of debt management.
