DAPHNE, Ala. — The City Council scrutinized funding sources for resurfacing Lake Forest roadways — which some residents call “Pothole City” — along with other areas during Thursday’s work session.

Councilman John Lake said the council should set aside money from the capital budget — instead of borrowing — since the city is still paying off a 1989 bond issue to pave roads.

“We should put together a comprehensive plan and set aside ($500,000) to $600,000 a year; let’s set an amount in the budget, not borrow,” he said.

Councilman Eric Nager agreed.

“It’s not just a patch job; we need milling,” he said. “There’s no Band-Aid solution. We need to set aside money in the budget.”

Councilman August Palumbo worried that the funds would fall short, he said.

“I don’t know if that’s going to do the job,” he said of Lake’s suggestion. “That’s fine if that’s enough money per year.

“Is it enough?

“It’s a start,” he said.

Councilman Ron Scott — who also sits on the finance committee — said the borrowing idea is a “non-starter.”

“We have no monies to float any bond issue,” he said.

Kim Briley, revenue director, agreed.

Palumbo clarified by saying, “Our bonding capacity and our capacity to pay off a bond is two different things.”

Scott said the city might use an extra $2 million in the reserve fund to pave roads since the general fund of the capital budget is stretched thin.

Lake suggested Daphne pressure businesses in the county — such as on Baldwin County 13 — to annex into Daphne so they would help pay for services they use, such as roads and police protection.

He added that other commerce areas may help with funding.

“I’m going to be an optimist here but I’m looking towards business from Bass Pro (Shops),” he said. “It’s a regional draw if we do things to attract them (shoppers).

“We should partner with Fairhope to draw businesses to the south side of (U.S.) I-10.”

He said the increase in sales tax would help fund the project.

The funding must come from somewhere because action is needed, Scott said, adding that public outcry showed the importance of road resurfacing.

“One of our biggest assets is roads,” he said.

Palumbo agreed.

He said if the city doesn’t hurry “the pothole crew will be spending five days a week instead of two on patching.”

Aside from funding, a main concern was establishing a priority list.

Council President Greg Burnam asked for a roads priority list gathered by the public works department about three years ago.

Mayor Fred Small said the department is working to update the list and is researching recent problem areas, such as Whispering Pines Road.

“We need to complete what we’ve started then get an idea of what it’ll take to mill and resurface,” he said.

Palumbo suggested an engineer help asses the roads so that no favoritism is shown in the priority list.

Also Thursday, Jay Ross, city attorney, explained the new lease for a 124-acre sports complex that will locate behind Wal-Mart.

The land belongs to the Baldwin County Board of Education — which will re-lease the property to the city of Daphne when details are finalized.

Ross said the current lease agreement — from January 1992 — gave the school board the ability to take back the property with 60 days notice.

The new lease would void the 1992 agreement and allow 10 years for Daphne’s use with no exceptions. For the next 14 years the school board could take the land back, but only with one year’s notice and payment for improvements, he said.

After the initial 24 years, two subsequent 30-year leases could be awarded if both sides agreed, he said.

The land would include baseball and softball fields and a senior center; schools would use the facilities if the games didn’t interfere with Daphne events, he said.

The recreation department needs the additional space soon because more than 200 children signed up for fall football and more than 500 will play soccer, according to Ed Nelson, recreation board chairman.

“We’re sort of between a rock and a hard place,” he said. “We need room and we need it now.”

Ross sent a final copy of the lease to city leaders yesterday so they could approve it at Monday’s council meeting.

The school board will review the lease at Thursday’s monthly meeting.

If it’s approved, the council will work toward a funding method then begin construction.

If the lease is approved, Small said some, less expensive improvements could begin sooner.

He recommended mowing the grass and spreading sand in the meantime.