FAIRHOPE – While COVID-19 economic slowdowns have affected city revenue and spending, the Fairhope budget is doing well with more than half the fiscal year complete, Mayor Karin Wilson said.
The city’s fiscal year began Oct. 1, 2019. At a recent report to the City Council, Wilson said the report through April, with the year about 58 percent complete showed most departments meeting budget goals, even though revenue is down in some cases.
“Overall for the city of Fairhope, we’re coming in with expenses under budget at 46 percent and we’ve 58 percent through the year and that’s a significant decrease in expenses, but we needed to do that because the revenue will not be as strong in the last six months than the first six months,” Wilson said.
Police spending was about $114,000 under budget. Four positions have not been filed.
The Fire Department bought a new truck for $331,000 but will use impact fees paid for new development for that purchase, Wilson said.
Parks and Recreation expenses are at about 52 percent of the total budget for the year. Among the works in progress is a new dock seawall project at a cost of $300,000, Wilson said.
In Public Works, spending is just under the budget overall, with 57 percent spent after 58.3 percent of the year is over. Capital spending for streets was reduced by 13 percent, the mayor said.
Overall, for the entire Utilities Department, expenses are less than projected at 48 percent and revenue is near the projection for this time in the year at 57 percent.
“As far as projections we are going to be just fine for utilities,” Wilson said.
In utilities, Gas Department expenses are below the budgeted estimated for this point in the year at 46 percent and revenue is up at 61 percent, she said.
The Electric Department revenue is down at 52 percent, but expenses are also below estimates at 40 percent. She said electric revenue is expected to increase during the summer as customers increase use of air conditioning.
In Water and Sewer, sewer expenses are at 68 percent and revenue is at 59 percent. Water expenses are at 50 percent, but revenue is up at 60 percent.
