FAIRHOPE, Ala. — The city has increased its operating cash and reduced its transfers from utilities into the general fund this fiscal year, said City Treasurer Nancy Wilson at Monday’s City Council meeting.

“I wanted to show you some good news this time,” Wilson said. “For operating funds in the general fund and in the utilities funds, we currently show $7.3 million. This is compared to the same time last year (when the amount was) $5 million. So our operating cash has increased by $2.28 million.”

Wilson said the city has also had paid off a utilities line of credit of $1.75 million and a $900,000 general fund line of credit since last October.

“So in addition to paying this $2.6 million, we’ve also increased cash by $2.28 million,” Wilson said. “That’s a good thing to think about and realize.”

Wilson said the city would be drawing on a new line of credit for utilities funds in the amount of $500,000 to ensure that cash for city electric bills coming due to the Alabama Municipal Electric Association would be available if needed. The bill due the end of July is $1.3 million and the August bill would be received in a couple weeks. If the line of credit was not immediately needed, it will be placed in a reserve utilities account, she said.

Wilson said the city had also made progress in its goal of reducing transfers from utilities funds into the general fund.

She said the goal discussed by the council was to limit transfers to 50 percent of the income from the utilities. Those transfers started at 75 percent of their income from the electric, gas and water and sewer departments at the beginning of this fiscal year on Oct. 1, 2008.

“The transfers of utilities are right at 64 percent of their operating income,” Wilson said. “That’s well on its way to a decrease from where we were at 75 percent. I think that’s also a good sign.”

Wilson also reported that the general fund cash has increased from this time last year by $810,000, and that the cash in utilities funds have increased as follows: gas fund cash has increased $450,000; electric fund cash has increased $990,000; and water and sewer fund cash has increased $117,000.

“That’s some good news tonight and that’s attributable to the mayor and (Councilman) Lonnie Mixon,” Councilman Dan Stankoski said.

Mixon is chairman of the council’s finance committee and has taken an active role in city financial issues since his election to his first council term last year.

“I would like to add to that the managers have been really tight (on expenses),” Mayor Tim Kant said. “I can’t do that, and the council can’t.

For the past two years, the managers have worked very hard. You hear about all these other governments screaming (about their budget problems). We’ve already done a lot of our sacrifice.”

Kant said that such belt-tightening left the city in good financial shape when combined with the additional revenue sources obtained by the council through a 2-cent sales tax and a hike in some utility rates.

In other business, the council:

•Lifted a three-month moratorium on lateral transfers within the police department that began on July 1 when Chief Bill Press assumed office. Press requested the restriction be lifted.

•Placed a 60-day moratorium on enforcement of ordinances related to noise and hours of operation regarding the sale of alcohol while the city studies the issue to determine whether any changes are needed in the laws. Chief Press said the police department would still respond to complaints, file reports and take appropriate action short of formal enforcement of the laws.

•Placed an additional 15-day extension on an existing 30-day moratorium that started July 13 regarding enforcement of parking laws in the downtown area while the city also studies that issue and determines whether any changes are needed in current laws. The police department will be circulating a survey to downtown merchants and meeting with them in the next few weeks to obtain their input on the issues, Press said. Councilman Rick Kingrea said the goal would be to develop an overall plan to downtown parking that would include not only the length of parking in downtown spaces, but also the amount of fines, and making sure that adequate signage existed to direct visitors and residents to the new parking deck.

•Adopted an ordinance to provide for protection of animals in unattended vehicles.

•Reappointed the following members to the Recreation Board: John Baker, Jenny Douglass, Derek Thomas and Vann Saltz.

•Approved a change in the council meeting procedures to move the mayor and council comments up higher in the agenda. The council had been criticized earlier this year by some residents and officials for placing the mayor’s comment to the end of the meeting.

•Authorized Mayor Kant and Councilman Mike Ford to negotiate with the owners of property on Ingleside Avenue behind the fire station for purchase of two 50-foot lots as the site of a future water well for the city.

A deep well exists there now but with a heavy iron content not suitable for drinking without treatment. The council heard a report from an engineer about option for drilling two test wells and placing a treatment plant on the property.

Kant and Ford will report back to the council regarding any proposed offer they might make on the property, the council decided.