FAIRHOPE – The Fairhope City Council voted Monday, Feb. 8, to approve a municipal budget that officials say holds spending and income estimates as a low level.
The council voted unanimously to approve the budget for the 2020-21 fiscal year. The fiscal year began Oct. 1. 2020, but in election years, most municipalities wait until the new term begins to complete the budget.
Mayor Sherry Sullivan said city officials have been working since the term began to draft a budget.
“As y’all know, when I took office there was not a budget in place,” Sullivan told council members on Feb. 8. “It’s a lot to come into that big of a budget and just all the capital projects and all the equipment folks are asking for to prioritize all that and thanks to Jill and Kim and the department heads for really working through this with me. But I’m glad that we’re here and hopefully we can get it passed tonight and we can move forward with some of these projects.”
The new budget includes revenue estimates of about $30.45 million. Revenue in the 2010-21 budget was almost $30.79 million.
Jill Cabiniss, city finance manager, said that after the economic fluctuations of the last year, officials have been cautious about revenue estimates.
“This budget is very conservative, especially in the General Fund. Revenues are very, very conservative as you all should know already,” Cabinisss said. “Expenses are bare bone as well. We do have our property tax budgeted at the 97 percent of what came in from the Baldwin County Revenue Commissioner’s Office.”
Total spending in the new budget is about $29.66 million, down from $31.2 million in the 2019-20 budget.
Spending in the new budget does include a 2-percent pay increase for all employees, Council President Jack Burrell said.
“We felt it was best to give it to everyone across the board,” Burrell said. “We appreciate everybody in the city that works for the city and what you do for us every day and hopefully, this budget reflects that. We’re doing all that we can and it may not be enough, but we’re doing what we can live with right now and be financially responsible.”
He said some city workers had “maxed out,” on the pay scale, receiving the most permitted under their employment listing, but that the raise will go to all workers.
“Some of the employees who had maxed out in their salary range could not be given a raise and some people had not received a raise for several years because they were maxed out,” Burrell said. “They were fortunate to have maxed out, but at the same time when that occurs for many years, it may become hurtful to that person. So, we did discuss this and even those that are maxed out can be paid the additional 2 percent.”
