The shift to the smoothing method was deliberated thoroughly during the meeting. Council members considered the potential for an increase in the municipal obligation if the valuation method remained unchanged. Concerns were raised over the absence of collars or limits on the smoothing method and its impact on the target funding percentages for the pensions. The administration responded by clarifying that the smoothing method would provide a more even approach to budgeting and planning, as there were no specific collars on it. They confirmed that striving for nearly full funding of the pensions was beneficial and reassured that the method was standard practice to mitigate the effects of economic downturns.

Further discussions centered around the potential $2.3 million increase in the municipal obligation and the implications for the city’s budget and planning processes. The administration emphasized that the smoothing method would not adversely affect the pensions and would offer a better framework for budgeting purposes. They also mentioned that all their clients were transitioning to the smoothing method, highlighting a broad-based shift in response to the economic events of 2022.

In addition to pension-related matters, the meeting addressed other financial adjustments and proposals. The finance committee reviewed and unanimously recommended approval for general fund year-end budget adjustments, including reductions in the community recovery and homelessness initiative accounts. They also addressed a Northampton County public safety grant, which necessitated a city contribution of $10,000 towards the purchase of ballistic shields for the police force, with the understanding that the matching funds had already been incorporated into the budget.

The committee approved the reallocation of insurance funds for damaged street lights into the appropriate repair and replacement accounts. Moreover, they recommended approval for the allocation of remaining police DCED grant funds, initially intended for cameras at various intersections, and for the redistribution of excess stormwater fund dollars to the Future Capital needs account.

One notable financial topic involved proposed adjustments from the non-utility capital improvement fund year-end adjustments. The committee moved forward with these adjustments.

The meeting also broached the topic of recreation fees, particularly the proposed rates for the 2024 recreation season. The administration underscored the need for a rate review based on the last assessment in 2020 and labor shortages affecting pool operations in 2021. Discussions revealed that the current budget rate for lifeguards was $13 per hour, while neighboring towns like Allentown and Hanover were offering $18 per hour. The council contemplated increasing rates to remain competitive and address the rise in expenses. Members also discussed the affordability of pool rates for lower-income residents, exploring options such as subsidies or a sliding scale to ensure access to recreational amenities.

The removal of lessons from the party room at the skating rink was questioned, as well as the introduction of a new $25 rate for tennis and pickleball courts. The council’s support for maintaining affordable and accessible pools and recreational facilities for the community was evident. The administration confirmed their commitment to attracting lifeguards to keep all five pools operational. A motion to recommend approval of the administration’s request for rate increases was passed with a 3-0 vote.