ALLENTOWN, Pa. — Allentown City Council approved a $134 million bond package Wednesday, the largest in the city’s history, to finance infrastructure projects including a new police headquarters and a combined fire and health bureau building.
The bonds will be issued in three installments through 2028. Officials said the decision takes advantage of the city’s improved credit rating while addressing long-delayed repairs.
“We have to start investing,” City Council member Santo Napoli said. “That fire station should have been replaced 10 years ago.”
Not all members were comfortable with the borrowing. City Council member Ed Zucal, who ran for mayor, warned the debt could overwhelm future budgets. Annual debt payments are projected to rise to just under $15 million in 2036, compared to $8.3 million next year.
“If we vote on this, we are going to kill the city,” Zucal said.
His proposal to limit the borrowing to $95 million failed to gain support. Some members suggested exploring other uses, such as a year-round homeless shelter, which the city does not have.
Bond funds will cover $65 million for the new fire and health building, $30 million for police headquarters, $18.7 million for park improvements and $17.5 million for public works. The city added extra borrowing capacity to cover potential cost increases or new projects.
Council will decide which projects move forward during the 2026 budget process.
