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HomeMy WebLinkAbout06-08-2026 City Council Work Session MinutesST A T E O F A LA BAMA COUN T Y OF B A LDWIN ) ( ) ( The C ity C ouncil met in a W o rk S ess ion at 4 :3 0 p .m ., F airhop e Muni cip al Co mplex C oun c il Chamb er , 161 No rth Section Street , F airhop e , Alabam a 365 3 2 , on M ond ay , 8 Jun e 2 02 6 . Prese nt wer e Co un cil Pres ident Pro T empore Jack Burrell , Co uncilmemb er s: Jo shu a Gammon , Jay Robin so n , and Andrea Booth, City Attorney M arcu s E. M cD owell , and C ity C lerk L isa A . H anks . Coun cil Pres id ent Jimm y Conyer s an d M ayo r Sh erry Sull ivan we re ab sent. C o uncil Pres id ent Pro T empore Burrell c alled th e m eeting to o rd er at 4 :00 p .m . Th e fo ll ow in g t o pi cs wer e di scu ssed : • Th e fir st item on th e Age nd a was First Tee Gulf Co ast prese ntati on by Go lf Pro Bobby Hall and M arty Stan ov ich, Presid ent and CEO of First Tee . Thi s pro gram is to pro mot e junior golfers. Mr . Stanov ich sa id th ey are a non-profit o rg ani zati on who u ses th e Fir st T ee N ine Core Valu es : honesty , integrit y, sp ort sman ship , resp ect , co nfid ence , res ponsib i li ty , perseve rance , courtesy , and jud gm ent. He said Jud ge Sne deker ca ll ed him a bout Fir st T ee; and m enti o ned th ey look at safe ty firs t and ri sk m an agem ent. Coun c il Pres id ent Pro T empore Burrell qu estion ed what is require d of the C ity of Fa irhop e and the Qu ai l Creek Gol f Co urse . Mr . Stanovich repli ed we will wo rk with staff and th e G o lf Pro . Coaches we re qu es tion ed regardin g pay ; an d the answer was so m e are p aid and som e are vo lunt eer s. • Th e Presentati on of th e FY 2 6 Mid -Year Finan cial R eview was pr esent ed by City T reas urer Kim Creech ; and sh e answered any qu es tions if nee ded . (See attac hed Power P oint Prese ntatio n titled "F inancial R eports Si x Month s end ed March 3 1, 2026 ") • The nex t Agend a Item was th e Di scuss ion of th e Propo sed Ordin ance to Establi sh the Serv ice T erritory fo r New Connec tion s to th e Ci ty of F airhop e 's Sanitary Sewer Wastewa te r System a nd to repea l Reso lutions No . 4950-23 an d 49 86-24 . Utility Engineer N o el Berry and Attorn ey Chri s Willi am s expl a in ed the Ordinan ce w ith in sid e and o ut sid e territory. Co un cil Presi dent P ro T emp ore Btmell sa id we can und o w ha t we h ave adopt ed if we nee d to . Coun c ilm emb er Robin son sa id we should lock in and not have any excepti ons . Pl anning Direc to r Hunt er Simmon s co mm ent ed we are not changin g density or terr itory at thi s tim e. Mr . W illiam s sa id it d e fin es what is insid e and ou ts id e the City Limit s. Mr . B erry ex pl ain ed wh at would be all owe d ; and sa id we w ill put th e T erritory M ap o n th e web site and mark "pro po sed ." The consens us of th e City Co un cil was to m ove forwa rd with th e Territo ry Ordinan ce and Map . • Co un c ilm emb er G amm o n sa id he mi ssed th e T ree Committ ee and has no other mee tin g upd ates . M o nd ay , 8 Jun e 2026 Page -2- • Co un c il m e mb er Robin son stated th e Fa irh op e Hi sto ri c Preserv ation Commi ss io n received no ti ce th at th e C ity of Fa irh o p e now is a Certifi ed Loca l Governm e nt a ft er res ubmi ss io n of our app lica t io n and new ly am end ed ordin an ce . • Co un c ilm emb er Boo th gave a s hout o ut to Pub lic Works Direc tor Jo hn T hom as and h is Sta ff fo r th e ir cl eanup a ft e r the storm . • Co un ci lm emb er BuITe ll sai d th e Fa irh op e A irp o11 A uth or ity m eetin g is to m o ITow n ig ht. • U ti lity En gin eer N oel B erry addressed th e C ity Cow1 c il rega rdin g Age nd a Ite m s No . 6 , No . 7 , No . 8, a nd No . 9 ; a nd an swe red a ny qu est io ns if nee ded . T he co nse ns u s of the C ity Co unci l was to make th e effec tive d ate Aug ust I , 2026 fo r a ll new or unp a id a ppli c ati o ns . • Co un c ilmem ber Ro b in so n addressed th e C ity Coun ci l regardin g Age nd a It em o. 5; a nd a nswe red any qu es ti o ns if nee ded . H e co mm e nted th a t a Rec reat io n Boa rd me mb er ap pl ied fo r a Franchise Agree m e nt to teac h te nni s lessons. He sa id th a t the R ec rea ti o n B oard was not co mfo11 a bl e m aki ng a reco mm e nd a ti o n to th e C ity Co uncil for a co upl e of reaso n s : I) co nfli c t of inte rest a nd 2) not e no u gh info 1mati o n and did not kn ow th e co ntent of T e nni s Profess iona l Tom as Ca tar 's ag ree m e nt w ith th e C ity . Co un c ilm em ber Robin son sai d Mr. Ca tar do es teac h te nnj s less on s to that age group . Co un c ilm e mb er Robin so n co mm e nt ed that o ne oth e r pe rso n ha s a Fra nc hi se Agr ee me nt at the requ es t of Mr . Ca tar. H e said no thin g is p reventi ng u s to gra nt th e Fra nc hise Ag reem e nt fo r teac hin g lesso ns a nd tra inin g. Co un ci l Preside nt Pro T em po re Bu rre ll s aid th is is m aki ng a pro fit us ing publi c pro pe 11y; an d we had d is put es w ith soccer coac hes a nd so ftb a ll coac hes, and multipl e p eo pl e us in g publi c property fo r pro fit . Co unc ilm e mb er R obi n so n sa id we a re supp osed to ge t 20 perce nt o n gross reve nu es a nd w ho de te rmi nes th e fees -th e fra nc hi sees . H e as ked th e C ity Co un c il to ta lk w ith Mr . C atar, M s Ma tze nge r, and th e R ec rea t io n Board . • Pl a nning Di recto r Hu nter S imm o ns stated th at the Zo nin g O rdinan ce a m endm e nts w ill be in n ine separa te ord ina nces; a nd publi c h ea rings w ill be he ld o n Jul y 13 , 2026 and th e ordi nances in tro d uce d . He sa id fi na l ado pti o n of th e o rdin a nces not needin g more tweaks wi ll be o n Jul y 27, 202 6 . • C ity Engi neer Ri c hard John so n addressed th e C it y Co un c il rega rd in g Age nd a Item s o. I 0 , an d No. 11 ; an d an swe red a ny q ues ti o ns if need ed. Co un c il Pres id e nt Pro Te mp ore Bu ITe ll qu es ti oned Park e r Roa d s idewa lks . Mr. Jo hn son sa id th e cloc k is ti ck in g a nd they sho uld be here thi s week. • Publi c Wo rk s Direc tor John T ho mas addressed th e C it y Co un ci l rega rd in g Age nd a It e m o . 12 ; and an swe red a ny qu es ti ons if neede d . Monday , 8 June 2026 Page -2- • Community Affairs Director Paige Crawford addressed the City Council regarding Agenda Items No. 14 and No. 15 ; and answered any questions needed . She said we are ce lebrating the 250th Anniversary of America and will ha ve several events: Movie in the Park will be "The Sandlot." She mentioned all of the Red , White, and Blue Decora tions around the City . • Electric Superintendent Ben Patterso n addressed the City Council regarding Agenda Item No. 13 ; and answered any questions if needed . There bein g no further bu siness to come before the C ity Council , the meeting was dul y adjourned at 5:58 p.m. ~m4 ~rrcl Council President Pro Tempore ~!1,(/a,.L ~ Lii\.s,MMC City Clerk .: ••• City of Fairhope City Council Meeting June 8, 2026 Summary Financial Reports Six Months Ended March 31, 2026 Cash Balances Marc h 31 , 2026 March 31 , 2025 March 31, 2024 General Fund 38 ,173,031 35,534,097 36,57 6,922 Gas Department 11 ,244,385 13,5 22,987 13,87 2,466 Electric Department 6,153,192 8,330,103 7,351,003 Water/Wastewater Dept 10,867 ,266 18,307 ,530 1,624 ,990 Sanitation 206 ,294 597 ,687 140,825 Motor Fuel/Rebuild AL 579 ,045 571,414 520,729 Funds Impact Fees Fund 4,894,072 3 ,830 ,069 2,857 ,658 Capital Project Fund 3,470,749 2,713 ,359 2,250 ,505 Municipal Capital 1,168,790 928 ,004 681 ,910 Improvements Fund Prepaid Medical Ins 619 ,897 484,723 1,223,142 Other Funds 2,850 ,314 281,744 8 9 2,946 T otal 79,796 ,696 85,101,717 67 ,993 ,096 ••• Tax Revenues continue to improve Sales Tax • FY2025 increased 4 .4 % over FY2024 • 6 Months Ended 3/31/2026 increased 1.8 % Simplified Seller Use Tax; AKA: Amazon Tax • FY2025 increased 13.1 % over FY2024 • 6 Months Ended 3/31/2026 increased 11.6% Lodging Tax • FY2025 increased 10.2 % over FY2024 • 6 Months Ended 3/31/2026 increased 18 .2 % Revenues Sales Tax Revenue 1400000 120000 0 1000000 800000 600000 400000 200000 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug -+-FY2017 -+-FY2018 -+-FY2019 -+-FY2020 ...,_FY2021 ...,_FY2022 ...,_FY2023 ...,_FY2024 ...,_FY2025 ••• Sep FY2026 Simplified Seller Use Tax ••• 300000 250000 200000 150000 100000 ~ I • I .. • • 50000 • I 0 • Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep -FY2018 ~FY2019 ~FY2020 ~FY2021 -FY2022 ~FY2023 ~FY2024 ~FY2025 ~FY2026 Lodging Tax 300000 250000 200000 150000 100000 50000 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep ...,_FY2017 .,._FY2018 .,._FY2019 .,._FY2020 .,._FY2021 .,._FY2022 .,._FY2023 .,._FY2024 .,._FY2025 .,._FY2026 ••• Revenues 6 Mo n ths Ended 6 Month s Ended FY2026 Budget Percent Gene r al Fu n d 3 /31/2025 3/31/2026 Remain i ng Property Taxes 11 ,116,331 10,396 ,583 11 ,950,707 7.00% Local Taxes 7,984,611 7,671,446 19 ,094,104 58.20% Licenses and Permits 5,079 ,361 4,546,777 6,389 ,602 20.50% Court Revenue 70 ,874 110,723 210 ,000 66.30% Inter-Governmental 138,467 154,418 380 ,231 63.60% Interest and Rents 602,382 667 ,0 8 6 997,656 39 .60% Adult Recreation 19 ,849 16,685 32 ,3 00 38.50% Recreation 309,034 309 ,034 604 ,360 53 .90% Fairhope Docks 278 ,911 224,584 881,852 73.80% Golf 715,416 709 ,118 1,417 ,900 49.50% Other 3,213,814 8 ,582 ,850 15,040,882 42.9 0 % T otal 2 8 ,020 ,268 34 ,819,799 5 6,999 ,™ 3 8 .90 % • • • General Fund Revenue & Expenditures Revenues Expenses Ex c es s Re v enue o v er Ex pense s 6 Months Ended 3/31/2025 28 ,02 0 ,268 2Q,ill ,.628 6,9 67 ,609 6 Months Ended 3/31/2026 34,8 19,799 25,ill ,.632. 9,044,160 Percent FY2026 Budget Remaining 56 ,999 ,594 38 .90% 5Q ,2.2.2 , ill 54.70 % 0 General Fund Expenses D e partm e n t 6 Months E nded 6 Mo n ths Ended Percent 3/31/2 025 3/3 1/2026 FY2026 Budget Remain i ng General Government 1,656,407 1,716,571 3,485 ,056 50.70% Elected Officials 132,196 168,915 331 ,789 49.10% Plann ing 582,919 573 ,180 1,623,534 64 .70% Building 609 ,366 565 ,243 1,359,877 58.4 0% Judicial 152,042 169,009 337,4 8 6 49.9 0% Police 4,210,763 4,651,484 10,362,084 55.1 0% Information Technology 615 ,270 721,447 1,650,951 56.3 0% Human Resources 253 ,281 290 ,8 8 9 724,955 59 .90% Revenue 425 ,201 450 ,274 959,796 53.10% Meter 326 ,179 330 ,215 731,719 54.90 % Fire 428 ,692 476,748 3,829 ,032 87.50% Economic & Community 411,127 Development 436 ,618 1,176,634 62.90% Recreation 3,012,757 2,037,311 6,658,785 69.40 % • • • General Fund Expenses Depa r tmen t C ivic Center Mus eum/Welcome Center Adul t Recreation/Special Service Marina/Harbor St reets Department Fl eet M aintenance Golf De partment Non -Departmental Facilities Staff Agencies & Appro p riation O t her Expenditures Airport Grants Totals 6 Mo n ths Ended 3/31 /20 2 5 148,075 95 ,876 337 ,837 212 ,959 4,444 ,573 722 ,365 925,4 8 1 140,699 744 ,600 500,000 ~,ill 6 Months E nded 3/31/2026 155,874 149,527 231,747 440 ,228 3 ,816,634 543 ,043 1,048,216 136,781 707,245 325,000 .5., .6.3_3,4 4 0 FY2026 Budget 531,753 753 ,913 995 ,940 1,753,842 8,483,569 1,189,613 2,64 0,530 816,830 1,494,251 5,007 ,655 lQQ,QQQ Pe r cen t Rema i ning 70.70% 80 .20% 76.70% 74.90% 55.0 0 % 54.40% 60.30% 83.30% 52.70% 93.50% -5533.4% 54 .80% ••• General Fund Capital Capital Vehicles & Equipment Capital Imp rovements 6 Months Ended 3/31/2025 843 ,690 1,380 ,958 6 Months Ended 3/31/2026 562,427 670,128 FY2026 Budget 4,716 ,8 12 5,555,471 Percent Remaining 8 8.10% 87.90% General Fund's Salaries 6 Months Ended 6 Months Ended Percent 3/31/2025 3/31/2 0 26 FY2026 Budget Remaining General Govt 688 ,137 730 ,169 1,579,599 53.80% Administration Elected Officials 65,638 69,078 164,200 57.90% Planning 285,484 335 ,770 837,067 59.90% Building 310 ,253 313,311 747,622 58.10% Judicial 105,345 109,177 231 ,668 52.90% Police 2,441 ,703 2,472,170 5,453 ,998 54.60% Information Technology 186,581 193,856 462 ,987 58.10% Human Resources 155,081 170,621 380,820 55.20% Revenue 282,435 288 ,930 644,353 55.20% Meter 205,144 202 ,293 461 ,369 56 .20% Fire 121,213 127,903 273 ,816 53.30% • • • General Fund's Salaries 6 Months Ended 6 M o nths Ended Percent 3/31/20 25 3/31 /2 02 6 FY2 02 6 B u dge t R e maining Econ omic & Commun ity 81 ,415 121,648 277 ,644 56.20% Deve lopment Rec reation 666,751 742,059 2,155,439 65.60% Civic Cen t er 85 ,469 86 ,853 188,708 54 .00% Muse um/Welcome Center 55,408 55 ,473 125,852 55.90% Adult Rec reation 105,818 115,497 261 ,632 55.90 % Mari n o/Harbor 71 ,663 72 ,613 164,802 55 .90% Str ee t 1,564 ,145 1,626 ,137 3,597 ,546 54 .80% Flee t Maintenance 266 ,673 272 ,719 662 ,883 58 .90% Gol f Clubhouse 202,739 218 ,304 566 ,026 61.40% Gol f Grounds 211 ,560 219 ,383 562 ,771 61.00% T ota ls ~1 58.65 5 ~5 4 3.96 3 19.800 ,8 0 2 56 .90 % • • • ••• Utilities ••• Revenu es Expen se s Net Income Natural Gas 6 M onth s End e d 3/31/2025 5 ,980 ,861 1 ,590 ,315 1,390 ,546 6 Months Ended 3/31/2026 6,417 ,023 ~.212,988 (1 ,795 ,965) FY2026 Budg et 16,436,227 16,986 ,227 Percent Remaining 61.00 % 51.60 % -Note : FY2026 Budget includes $6,467,877 in Revenue Rollover for Capital Projects Cap ital 6 Months Ended 6 Months Ended FY2026 Percent 3/31/2025 3/31/2026 Budget Remaining Veh i cles & Equipment 192,208 0 47 ,500 100.00% Cap ital System 67 ,729 3 ,329 ,677 7,618 ,140 56.30 % Improvements ••• Revenues Expenses Net Income Electric 6 Months Ended 6 Months Ended 3/31/202S 3/31/2026 FY20 26 Budget 10,326,963 2,410 ,115 916,848 9,931,601 10,497,845 (566,244) 30,442,065 31,542,065 Percent Remaining 67.40 % 66 .70% ♦Note : FY2026 Budget includes $6,140,890 in Revenue Rollover for Capital Proj e cts Capita l 6 Months Ended 6 Months Ended FY2026 Percent 3/31/2025 3/31/2026 Budget Remaining Vehicles & Equipment 762,604 270 ,753 687 ,765 60.60 % Capital System 255,864 1,467,771 6 ,886,675 78.70 % Improvements ••• Revenues Expenses Net Income Water 6 Months Ended 6 Months Ended 3/31/2025 3/31/2026 5,768 ,176 (263,213) 6,554,295 :Z,577,061 (1,022,766) FY2026 Budget 37,375,280 38,475,280 ••• Percent Remaining 82.50 % 80 .30% ♦ Note: FY2026 Budget Revenue includes loan proceeds of $25,486,280 for Capital Projects Capital 6 Months Ended 6 Months Ended FY2026 Percent 3/31/2025 3/31/2026 Budget Remain i ng Vehicles & Equipment 580,959 18,183 352 ,000 94.80 % System Improvements - 1,368,996 753,030 11 ,765,000 93 .60 % Water Wells Capital System 279,304 2,124,223 15,070,000 85.90 % Improvements ••• Re ve nues Ex pense s Net In come Wastewater 6 Months Ended 6 Months Ended FY2026 3/31/2025 3/31/2026 Budget 5,129 ,9 86 5,208 ,89 7 32,803 ,423 ~.058 ,536 '1 ,094,102 33 ,903,423 71,45 0 1,885,205 Percent Remaining 84.10% 79.10% -Note : FY2026 Budgeted Revenue i ncludes loan proceeds of $22,575,423 for Cap ita l Projects Cap ital 6 Months Ended 6 Months Ended FY2026 Percent 3/31/2025 3/31/2026 Budget Remaining Veh icles & Equipment 135,494 144,558 515,999 72 .00 % System Improveme nts - 1,095,167 3,125,932 17 ,0 94,558 81.70 % Co llecti o n Syste m Improveme n ts - 244,114 39 4,455 5,07 2,0 00 92 .2 0 % Lift Statio n s· Sanitation 6 Months Ended 6 Months Ended FY2026 Percent 3/31/2025 3/31/2026 Budget Remaining Revenues 2 ,167,338 2,209,374 4 ,902 ,015 54.90 % Expenses 1,930,900 2,503 ,941 5 ,252 ,015 52 .30 % Net Income 236,438 (294,567) -Note: FY2026 Rev e nue includes rate increases from $23 .00 to $25 .00 per month Capital 6 Months Ended 6 Months Ended FY2026 Percent 3/31/2025 3/31/2026 Budget Remaining Vehicles & Equipment 17,3 61 450,332 883,511 49 .90 % Capital Improvements 0 0 165,000 100.00% ••• Nat u ral Gas Elec t ri c W ater Was t e water Sanitation Utility's Salaries 6 Months Ended 3/31/2025 729 ,002 898,327 756,698 596 ,868 697,451 6 Months Ended 3/31/2026 725 ,362 949 ,019 942,014 780 ,851 761,789 FY2026 Budget 1,740,495 2,336,306 1,942,920 1,750 ,095 1,565,042 Percent Remaining 58.30% 59.40% 51.50% 55.40% 51 .30%