No Tax Increase in Callahan's Last Budget Proposal

Mayor John Callahan on Friday unveiled a 2014 budget proposal that calls for no tax increase, but increases of 15 percent in water and sewer rates.

The “sewer rate increase is necessary in order to construct the upgrades and improvements detailed in our approved Act 537 plan,” Callahan said through a news release.

“The total sewer bill for a typical residential customer would increase by about $32 a year.”

The budget also reflects a proposed 15.7 percent increase for water users, however the city anticipates that the Pennsylvania Public Utility Commission will grant a smaller increase, Callahan said.

The budget proposal calls for four fewer non-uniformed employees, but the addition of five more police officers and the restoration of the school resource officer program in Bethlehem. The officers are 90 percent funded with federal grant money and money from the Bethlehem Area School District, the mayor said.

Callahan, three days removed from a surprising Election Day defeat in his bid to become Northampton County Executive, did not hold a news conference to present his budget. Instead, a news release and the mayor’s comments were released through an email blast to the media.

After 10 years and two full terms as mayor, this will be the last budget proposal of Callahan’s career. City Councilman Bob Donchez will be sworn in as mayor in January.

“Budgets are all about choices and through the years, we have faced some difficult decisions,” Callahan said. “We have not scarified the safety and well-being of the residents of this city for frivolous and flashy expenses. All the while we have maintained the uniqueness of this community and encouraged the private sector to develop Bethlehem’s economy.”

Among the big-ticket items in the capital expense plan is $4.6 million for the replacement of the Lynn Avenue Bridge, which will be funded primarily with state and federal grant money.

Another $1.7 million has been dedicated to new emergency dispatch phone equipment and a new computer-aided dispatch and computer management system for the police department.