Bethlehem Mayor Robert Donchez has announced the 2021 budget will be $87.4 million. Donchez said he is proposing a .92 mil or 5 percent property tax increase. This would have a $50,000 home paying a $46 increase per year.

The average cost of a home in Pa. is $194,603, according to online sources.

Real estate taxes account for $36.7 percent of Bethlehem’s budget, according to Donchez.

This will come with some pain, due to the accompanying proposed personnel cuts that will eliminate four fire department positions and two slots from the Bethlehem Service Center responsible for responding to non-emergency calls. All cuts would be through attrition, with retiring members not being replaced.

Don-chez said that 2021’s city budget will have to do without $1 million in revenue derived from earned income tax, casino payments, and a general lack of economic development. This anticipated loss, according to Donchez in a budget address , via the internet, will be made up from cash reserves to balance the 2021 budget.

Since personnel costs are the most significant aspect of any budget, Donchez focused on the 76.4 percent and singled out the police department, which he said “is the largest in terms of employees [154] and dollars [$25.4 million].”

He said the total cost of the police department, the fire department and the emergency management service is $44 million in 2021.

“Hopefully, the effects of the pandemic, will begin to improve by the end of next year, and those specific [income sources] will begin to return to previous levels, negating the need for ongoing cash infusions,” said Donchez.

“Our revenues do not mirror the increase in pension obligations.”

Donchez said he and his administration reduced expenses to limit the deficit cause by the pandemic.

“I immediately issued a hiring freeze. Some employees were furloughed. The recycling center and yard waste facility were closed. Pools and parks were closed. Traditional summer programming was canceled. My financial team met with each department to target specific reductions in line items, and postponed a number of planned projects,” said Donchez.

Donchez also pointed to “continued increase[s] in pension obligations” as a continuing problem. He was concerned that police and fire pension increases will strain the budget.

City Councilman Bryan Callahan signaled at the last meeting of Bethlehem City Council that he would oppose any cuts to the fire department.

“I am opposed to any cuts in the fire department,” Callahan said in an interview.

“Difficult decisions were made in order to implement the corrective action needed to flatten the curve. Police and fire pensions have continued to increase at rates that are just not sustainable to a budget,” said Donchez.

He said that through his administration’s efforts, “our employees remained healthy and the city remained fully functional.”

He cited the completion of the Memorial Pool and its scheduled reopening of the municipal golf course for this summer.

Donchez said a new fire engine is now at Memorial Fire Station on West Broad Street and that a new fire engine will replace one next spring at Schweder Fire Station on Fourth Street.

Donchez acknowledged “sponsors, residents, businesses educational and medical institutions for their support, cooperation and patience.”

He also pledged to extend the use of parklets for outdoor dining until Dec. 4., with a possible extension through Dec. 31. He said he thought the use of dining parkets could become an annual event.

“2020 has been, by far, the most difficult year of my seven-year administration,” said Donchez at the close of his speech. “I know you join me tonight in that thought and I hope and pray that we will turn the corner in 2021.”