Virus Shutdown Caused $1.5 Million City Budget Deficit

Fairhope, Alabama




SOME CUTS ALREADY MADE

Mayor Wilson reported that due to early interventions (cuts) by city administration in March when the coronavirus  pandemic shutdown began, about $1.2 million was saved by postponing non-critical expenses, acquisitions, and delaying scheduled capital projects.

Even so, due to lack of revenue from the statewide business shutdown (mostly sales and lodging taxes) a $1.5 million deficit is still projected. (The city is seven months into its fiscal year.)

Utility revenue was not affected much, she said.


FULL IMPACT STILL UNKNOWN

Utility projects, and those funded by impact fees or grants should go ahead as planned she said; but the full impact of the ongoing pandemic on the local economy/city revenue will not be known for another "two months" or so, according to the mayor.


COUNCIL TO DECIDE

The city council controls the city's "purse strings" and will have to approve contracts for major expenses like capital projects.

The $7 million emergency reserve fund could be utilized as well.

A $5.1 million sewer/drainage project for N. Church Street is on the agenda for the next council meeting.

Other improvements such as a new Rotary Youth Club park layout and improvements to W.C. Majors stadium are pending as well (from impact fees).

(Wilson noted the council's purchase last summer of the new CR 13 Recreation land for $2 million was not in the budget, causing further shortfalls.)



New recreation land purchase caused deficit?



Comments

Anonymous said…
But yet, the Baldwin County Tax Appraisal has assessed the property in downtown Fairhope as much as 74-100%. Go figure. How can the economy continue with these astronomical tax increases? Downtown Fairhope is going to hurt. Property owners can't continue to give away their rents when we are slapped with these ridiculous tax increases.
Anonymous said…
you can appeal property tax apprasals it you think they are wrong.
Anonymous said…
State of Alabama local and state combined property taxes are among the very lowest in the entire country. Taxes are so low that state and local infrastructures are worn out and crumbling because people scream when ask to pay their fair share.
Anonymous said…
When looking for a home in old Fairhope. We looked at several small, neglected to the point of teardown?,highly priced homes. With the sales comes increased value and appraisal changes to match. I am sorry for those who are caught up in this market driven insanity. We chose to look outside old Fairhope. If the city is looking for revenue. May I suggest as have told Mayor,police chief, no response from either- write tickets on Hwy 98. But to date see little of that.
Anonymous said…
"you can appeal property tax apprasals it you think they are wrong."

Indeed, the Gleichschaltung had an appeal process, too. I believe that Neville Chamberlain was a great admirer.
Anonymous said…
Another thought, we follow the rules and get a town sticker. Only to try and park in small lots by Bay that are full. Where sticker required but none have. Start handing out parking tickets.
Anonymous said…
If the city had not MISAPPROPRIATED so many funds for old schools,clock lots with EPA clean up costs,no charge back to subcontractors and their spotty work resulting in sewage and water line failures,law suits.Then maybe they would have an actual functioning budget.AS for the Police Dept actually enforcing any traffic,that is suggestive and dependable on whether they actually patrol rather than sitting in parking lots,under water towers,and the cemetery for night naps.They sure do fail to investigate many thefts in the city,especially if there a city employee.
Anonymous said…
this is just another publicity stunt for baykeeper. more interested in rasing money than keeping water clean.