DAPHNE, Ala. — A group of area hotel owners during Monday’s City Council meeting spoke out during public participation against the council’s discussion on possibly raising the lodging tax in an effort to offset a $2 million shortfall in the 2010 fiscal budget. The subject was broached at last week’s work session.

The owners cited decreasing tourism dollars as a reason to lower the lodging tax as opposed to the council’s idea of doubling it.

“The problem with the lodging industry is an overcrowded market,” Eastern Shore Motel owner Kevin Spriggs said. “We have a lot of properties competing for a shrinking business.” He added that the industry could use a tax cut.

Rocco Valluzzo, Microtel Inn owner, said that corporate groups convening in Mobile will drive across the causeway for accommodations, and a lower lodging tax rate than Mobile can mean a big difference for tourists lodging in Daphne, particularly for large groups.

Lee Gayle, Hilton Garden Inn, Hampton Inn and Homewood Suites owner, said that revenues for his group of hotels are down $2.5 million from this time last year.

“The pie that we all have to eat out of has gotten smaller,” Gayle said. “We really don’t want to push any business into Spanish Fort and we want to continue to draw the Mobile market.”

Chuck Howe, representing Homewood Suites, said, “In this economy, we are all seeing the decrease in revenues. One thing we’re seeing is a loss of jobs in hotels. We’re laying people off; we’re decreasing hours.” He added that an increase in the lodging tax would mean additional job losses.

Also Monday:

On Sept. 7, the council voted 5-1 in favor of paying the owed sum to the utility.

In the council’s work session last week, Small suggested that the utility cover the cost of fire hydrant flushing as a service to the city.

Southwest’s move to Pensacola would mean more than a dozen new direct-flight paths for Baldwin County residents. Currently, many residents must fly through Atlanta and catch a connecting flight en route to their final destination.

Mayor Fred Small asked if the city should “get in the middle of two airports” by supporting a particular airline coming to the area.

Councilman August Palumbo said there is no cause for concern because Southwest has not considered moving into Mobile Regional Airport.

Councilman Ron Scott said the Mobile airport’s rates priced the facility out of consideration.

“When I fly, I go to Pensacola airport because the rates are cheaper,” Scott said.

“It’s not an endorsement of any airline,” Palumbo said. “It’s just to get more competition.”

Five of the locations have been chosen. Murals will adorn the exterior walls of: Manci’s Antique Club and Restaurant; Will Hughes Catering and Market; Met Life Insurance; Something Sweet Bake Shop; and Daphne Animal Shelter.

The murals will be painted at no cost to the city; the property owners will cover the costs of artists’ materials.

Wilden expects the art project to create an interest in Olde Towne Daphne.

“I wanted to do what I could to draw attention to our little city,” she said, adding that 22 artists responded to the 35 surveys she mailed.

The murals will depict “past and present scenes of Daphne” and are expected to be completed by Dec. 1, in time for the annual Christmas tree lighting and parade.

In other business, council members: