FAIRHOPE – City officials should have a draft of the budget ready for consideration in January, Mayor Sherry Sullivan said.
Sullivan said that planners have been cautious about revenue estimates, but some spending for major improvements is planned.
“Right now, we are very conservative on revenues for 2021,” Sullivan told City Council members on Dec. 23. “Obviously, we don’t know what at least the first half of the year is going to look like.”
She said property tax revenue has been budgeted at 97 percent of what has been projected by the Baldwin County revenue commissioner. After economic fluctuations in the last year, future business license revenue is also difficult to estimate, she said.
“We’ll collect those by the end of January, and I know that even across the state people are worried about what those business licenses will look like,” she said. “So, again, we’re being very conservative with revenues.”
Budget estimates will be presented in January. In the 2019-2020 budget, revenue was set at $30.7 million when the plan was passed in the fall of 2019. Actual revenue was $28.65 million, according to budget reports.
The fiscal year officially began Oct. 1, 2020. During an election year, the budget is postponed until the new term begins. Sullivan, who took office in October, said officials have been working on the plan since the term began.
Projects in the new budget include $16 million in utility upgrades and $1 million in drainage and resurfacing projects, Sullivan told council members. The budget also has $1 million in recreation improvements to make Volanta Stadium more accessible for disabled visitors as well as new basketball courts and equipment at Rotary Youth Club.
The budget also includes a 2-percent cost of living adjustment for employees. The city will provide $625,000 in matching funds for a grant that would allow the Baldwin County Economic Development Alliance to make renovations to the Fairhope K-1 Center for a business development center.
The Police Department will get three new patrol vehicles and computer software to help with some policy updates. The Fire Department budget includes a new fire truck, turnout gear and headsets.
The Public Works Department will get a new skid steer, mowers as well as a new trash truck and new garbage cans.
For utilities, the budget includes substation upgrades, street light replacements and a ultraviolet treatment system for the wastewater treatment plant as well as new trucks, according to Sullivan.
“There’s a lot in the budget this year,” Sullivan told council members on Dec. 23. “A lot of things that are happening in the city that need to be taken care of. Again, I hope to get that to y’all next week, you’ll have your budget book by the end of next week and we can hope to start scheduling those meetings and hopefully get those on the agenda sometimes later in the month of January.”
