Fairhope, Ala. — Two weeks after receiving an auditor’s report that Fairhope’s financial situation had improved last year, the City Council heard Monday that tougher times might lie ahead this year.

“Looking at the taxes we’ve collected year-to-date and projecting where I think we’re going to be, not counting sales tax but other revenues, it looks like we’re going to be somewhere around $300,000 short on revenues that we budgeted on other licenses and so forth,” Mayor Tim Kant told the council at its Feb. 8 meeting.

At the council’s Jan. 25 meeting, an accountant with the firm hired by the city to do its annual audit reported the city “had a good year, maybe not a great year. Certainly better than anticipated.”

Earl Blackmon’s report contrasted the city’s past fiscal year’s financial progress with that of 2008, when expenses had begun to exceed revenues.

Several gasps and whistles could be heard in council chambers Monday, when Kant reported further about the city’s possible financial picture for the remaining eight months of the current fiscal year.

“Another large amount of money will be the golf course,” said Kant, explaining that play had been limited there because of recent renovations. “Currently we’re down as much as $100,000, and if you push it over the rest of the year, it could be as much as half a million dollars.”

Kant noted that the projected shortfall was in the general fund only and not the utilities funds. The golf course was moved into the general fund during the past fiscal year from the proprietary or enterprise funds, which report on business activities of the city, such as its public utilities.

“Department heads have already been told, and we’re working on some plans to get to the (Financial Advisory Committee) and the council to look at what we have to do,” Kant said. “So, as we move forward and look at expending monies, I need your help to make sure that things we do have to pay, that we get our dollar’s worth.”

In other business, the council:

• Declared Jim House and Associates Inc. as the sole source provider for maintenance, repair and parts for the ultraviolet disinfection system at the city’s waste water disposal facility and to approve the purchase of approximately $22,000 for parts to repair the backup system there.

“Last Wednesday we had a surge arrestor that blew, and when it did, it actually took out the backup UV system that did about approximately $22,000 worth of damage to (that) system,” said Water and Sewer Superintendent Dan McCrory. “It will cost (that amount) to bring it back up online. The primary system is up and running, but my primary has no backup.”

A Feb. 2 letter from Trojan Technologies of Canada stated, “This letter is to confirm that Jim House and Associates Inc. is the exclusive distributor of Trojan Technologies’ municipal products, service and after-market parts in Alabama for municipal projects and equipment.”

Council President Lonnie Mixon asked if there were any other vendors that could do the work for the city, and if the request was approved, how long it would take to have the backup system running.

“They’re the only one in the state of Alabama and the panhandle of Florida that Trojan (Technologies) will allow to sell to municipalities,” McCrory said. “Right now all (the parts) would be on back order for about 15 to 20 days. I’ve called (the company in) Canada because the parts have to come out of (there), and they’re going to have to actually get those parts manufactured because it’s for the older system. They don’t keep them in stock. They’ll have to actually build them.”

Electric Superintendent Scott Slight said the UV bulbs are extremely sensitive and the city should talk with Jim House and Associates, “if that’s who you’re choosing… . I can have another problem with another circuit other than the sewer plant and blow bulbs (there). Dan says (Jim House and Associates Inc.) has told us that’s the only place they’re having that problem. If that’s true, then I’d like them to help us figure out why that it is because your computer’s not that sensitive, but these bulbs are, for whatever reason. We need to look at that a little more.”

McCrory’s letter to the council requesting the sole source declaration stated the request was made “due to the complex nature of the Ultra Violet Disinfection System.”

Declaring the company the sole source provider exempted the purchasing of repair parts and/or for maintenance of the system now and in the future from the competitive bid laws, according to state law.

“We passed the sales tax so we wouldn’t have to pull as much out of utilities, and part of the reason is to upgrade the infrastructure,” said Councilman Dan Stankoski, regarding whether the older waste water disposal facility itself needed upgrading with the new funds made available through the sales tax. “It seems to me we’re buying old parts again, and I know we’re going to have to do this, but we also need to be looking forward in using this and updating our infrastructure including the backup system.”

• Approved payment by the city of $6,700 for the cost of fencing, drainage, gravel and water connection for the new Fairhope Community Garden.