The City Council approved a $52 million budget for the next fiscal year, an increase over last year’s by just .3219 percent. Net earnings from all funds is projected at $2,462,604.

The current property tax appraisal controversy caused difficulty for the council in projecting revenue from this source.

“We didn’t project the full increase,” Mayor Tim Kant said.

Revenue Commissioner Phil Nix projected revenue of $4.8 million for the city based on a tax printout for Fairhope properties that would come into the city’s coffer.

Council members were concerned if all the city receives is “what we got last year,” Kant said, which was $3.1 million.

Should that happen, Kant said, “we can cut expenses 4 percent across the board. He added that if necessary, that would happen in January or February.

In the end, the council reduced Nix’s projection of $4.8 million by $600,000 to arrive at budget figure of $4,460,706 (this also includes car tag revenue).

The budget includes $912,250 in the general fund for equipment additions and upgrades and $630,000 for new capital projects, which were outlined as: Centennial Park, $35,000; bio-diesel program, $20,000; road projects, $400,000 and $175,000 for the Theatre 98 project. This project calls for the old recreation building on Morphy Avenue (which has been condemned) to be torn down and a new storage building erected at the site which the theater can use to store props and materials.

The budget also includes debt reduction to the general fund by $947,028 and $954,588 in the proprietary funds.

The new budget includes a 4 percent cost of living adjustment for city employees, salaries for two new staff members (museum director and IT manager), use fees for the new recreation center (when it opens) and an increase in fees at Quail Creek, which would help purchase new golf carts and mowing equipment.

Fred Clark, new director of the Alabama Municipal Electric Association, and Allen Williford, also with AMEA, addressed the City Council acknowledging the increasing costs in fuel and some of the reasons for it.

Currently, the mix for AMEA’s fuel resources is: coal, 59 percent; nuclear, 23 percent; natural gas, 13 percent and hydroelectricity, 5 percent. Clark said coal costs have been rising since 2004 due to increases in rail transportation. “It has doubled and tripled for the last four years,” he said, and natural gas costs have been increasing since 2003.

The other contributing factor are the federal Clean Air requirements for the coal-fired plants.

The mayor recognized Wayne Smith, city purchasing agent, who will be retiring soon, for his 27 years of service with the city of Fairhope and more than 20 years with the volunteer fire department.

The council heard a report by Director of Public Works Jennifer Fidler regarding the live oak tree on the Charlie Bassett property on North Section Street where a new hotel is planned. Meetings on the subject have been held with Bassett, John Pate, project contractor, the city tree committee and others. Bassett secured Clay Formwalt, a Mobile arborist, to examine the tree and make recommendations.

“We are going to do all of the things he suggested,” Bassett said. Copies of Formwalt’s recommendations and Bassett’s letter agreeing to comply with the recommendations were given to council members.

The mayor said the building permit would be approved when Bassett has complied with the 14 points the city has required of him.

“I gave Jennifer (Fidler) my word we would show you the limb before we make any cuts (to the tree),” Pate said, adding this would not take place in the middle of the night.

Some general discussion took place among the mayor and council about how to balance the need to preserve the downtown trees and the needs of property owners. Councilwoman Debbie Quinn asked the tree committee to make some recommendations to the council on how to handle this issue in the future.

In other action, the council:

• Approved the minutes of the Sept. 10 regular meeting.

• Heard a report by Rose Fogarty on the current budget status. For the 11 months ending Aug. 31, the general fund is $185,639 in the black. The proprietary funds have a positive balance of $1,943,408.

• Adopted Replacement Ordinance 1220, which provides policy and procedure for sidewalk and/or street usage within the city.

• Adopted replacement Ordinance 1221, which provides policy and procedure for park usage within the city.

• Tabled an amendment to Ordinance 1315, which would increase the electrical rates by 3 percent.

James Gillespie, government services administrator for the city, said this increase would add $2 to $3 per month to the typical homeowner’s bill and more for commercial accounts. The mayor advised the council if they chose to approve this amendment to hold off making the adjustment until January.

“We will need the cash to do the things we want to do if we are going to put $1 million in underground electrical improvements,” he said.

• Approved a resolution for a one-time lump sum payment for city retirees as provided for by Act 2007-257.

City Treasurer Nancy Wilson said the Alabama Legislature and Retirement Systems of Alabama have approved giving this payment to employees who will retire by Dec. 14 of this year. The cost to the city for the 55 Fairhope employees retiring by that date will cost $15,435 and is not figured in the new budget.

“I love our employees but I don’t understand the purpose of this,” said Councilman Cecil Christenberry.

Councilman Mike Ford recommended approving the resolution with a proviso that the council talk with the local legislative delegation.

•Approved resolutions to authorize an annual appropriation for the following: Eastern Shore Chamber of Commerce, $6,000; Fairhope Rotary Boys and Girls Club, $30,000; Ecumenical Ministries Inc., $10,000; American Red Cross Alabama Gulf Coast Chapter, $3,500; and The Lighthouse, Baldwin County Family Violence Project, $3,500.

• Approved a resolution to accept all Fairhope utilities within Greythorne Estates. The county will have maintenance of the streets.

• Approved a resolution to accept for maintenance from the Baldwin County Highway Department, the segment of Bishop Road between U.S. Highway 98 and County Road 13 that is within the city limits. This Bishop Road should not be confused with another of that name that runs north and south between Gayfer Avenue and Twin Beech Road (County Road 44).

• Approved a resolution to accept for maintenance from the Baldwin County Highway Department Courthouse Road, which runs from the centerline of County Road 48 (Fairhope Avenue) 500 linear feet north to the end of the public right of way (the north boundary of the Satellite Courthouse property, within the city limits.

• Approved a resolution to accept for maintenance from the Baldwin County Highway Department Fairhope Avenue (County Road 48) from U.S. Highway 98 (Greeno Road) to Alabama State Highway 181 within the city limits.

• Approved a resolution to accept for maintenance from the Baldwin County Highway Department Thompson Hall Road, between the city limits from a point 300 feet south of the center line of Derby Lane north to County Road 48 (Fairhope Avenue) within the city limits.

• Approved an application for a Restaurant Liquor License by Roger N. Lartigue, doing business as Lartigue's Seafood Inc., located at 19344 Scenic Highway 98. This application was laid over from the Sept. 10 council meeting.

• Tabled an application for a Restaurant Liquor License by Leodis Mitchell, doing business as Mitchell’s Snack Bar, located at 307 Young St.

• Approved a request to charge off uncollectible utility accounts from fiscal year 2002-03 totaling $71,677.87. Gillespie said the city had exhausted ways to try and collect the unpaid accounts; even a collection agency was unsuccessful. He also added that the late charges the city collects on utility bills amount to more than the total for the uncollectible accounts.

• Tabled a request from Page & Palette and the Downtown Business Association to fund a speaker for the local merchants.