ORANGE BEACH, Ala. — Owners of condominiums, businesses and land in the beach overlay district of Orange Beach crowded into the Orange Beach Community Center Monday to meet with city leaders regarding a proposed increase in fees.

Mayor Tony Kennon and members of the City Council were on hand as Kennon outlined a possible fee that would impact owners of homes, condos, businesses and undeveloped land on either side of Perdido Beach Boulevard.

Kennon began with a power point presentation showing attendees the issues that the city is having with the general fund in just paying the bills. Due to a decrease in revenue over the past several years, funds to maintain beach refurberation, clean up, and to prevent beach erosion is no longer available.

If considered, the proposal would charge a fee to property owners along Perdido Beach Boulevard $75 to $300 depending on the location of the property. The fee would be used specifically for beach refurberation and anti-erosion needs.

 “This is a proposal that was on the self several years ago. We revived it and thought it was something we needed to look at, and try to determine if it had merit and possibilities,” Kennon said. “Again, it is not an initiative, it is a proposal.”

Phillip West, Coastal Resources Manager with the city of Orange Beach assisted Kennon in answering questions regarding the proposal and the specifics regarding beach maintenance.

According to Kennon, the general fund for the year 2010 is likely going to end with a projected $1.5 to $2 million deficit, even after cutting jobs and expenses.

“The beach is obviously a place of recreation and a source of revenue, but it also maybe the single greatest protector of our assets along the Gulf,” Kennon said.

Kennon said while many have responded to him through e-mails suggesting that he “cut fat” from the budget rather than imposing additional fees, the mayor maintains there is simply no more fat to be cut.

“We have 43 less employees today than we had 18 months ago, yet we are still providing the exact same services,” Kennon said. “We have reorganized every department, we have cross-trained a lot of our employees, and we are doing everything we can to run a very lean and efficient city.”

City leaders believe that maintaining the beach as it is today will help reduce costs should the area be affected by a hurricane or tropical storm, is the greatest protection in keeping business interruption to a minimum, and in quickly getting the city up and running after such an event.

“If we treat our entire beach as one business, then we want to look at what is the best way to keep the revenue coming in the door,” Kennon said.

According to the proposal, owners of homes, condos and business on the north side of Perdido Beach Boulevard would pay an annual $75 fee, and those with property directly on the beach would pay a $300 fee that would go into a fund to be specifically used to maintain the beach.

Opponents who spoke up referred to the 1 cent sales tax that had been added several years ago to assist with such an issue, but city leaders said that money goes into the general fund and is used for a variety of issues related to the beach, not specifically beach maintenance.

Even though the Federal Emergency Management Agency would pay 75 percent, should another declared storm occur, Kennon says the city cannot count on FEMA to put the beach back after every storm.

“We will look at all options,” Kennon said. “We are trying to find a mechanism that would create the greatest degree of equity for everyone involved. We know that there will be inequities no matter what kind of fee we put in place or which way we go, somebody is going to come out on the short end of the stick. But we are open to looking at any kind of possibilities.”