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Home My WebLink About05-22-2023 Work Session MinutesST ATE OF ALABAMA COUNTY OF BALDWIN ) ( ) ( The City Council m et in a Work Session at 4 :3 0 p .m., Fairhop e Municipal Complex Counci l Chamber, 161 No rth Section Street, Fairhope, Alabama 36532, on Monday , 22 May 2023. Present were Co uncil President Jay Robinso n , Councilmembers: Corey Martin, Jimmy Conyers , and Kevin Boone (arrived at 4:3 9 p .m .), Mayor Sherry Sullivan , City Attorney Marcus E . McDo well , and City Clerk Lisa A . Hanks. Councilmember Jack Burrell was absent. Co uncil President Jay Robinso n called the meeting to order at 4 :3 0 p.m. The following topi cs were discu ssed: • The first it em on the agenda was the Presentation by As hton Sawyer, Eagle Scout Proj ect, B each Tree Trail. Mr. Sawyer stated this is la bor to put labels on the trees do wn at North Beach Park. H e sa id it would b e either the name of the trees or a QR Code plu s the names . The consensus of the Ci ty Council was to go forward with the nam e with the QR Code; and sa id thi s is a great proj ect and co ngratulations. • Mayor Sulli van began the Di scu ssion of Beach Volleyball. She said there is not fee structure for the North B each Park; and suggested $500.00 fo r usage. Mayor Su lli van stated she would ge t more infonnation and bring back to the City Council. The consensu s of the City Co uncil was to try this and move forward . • Lee Parks, CPA an d Rick Blanton , CPA with Warren Averett addressed the City Co uncil and presented the City of Fairhope's Audit. They briefly went over the main p oints of the audit; and commented they gave an "Unmodified Opinion" whi ch means the financial stat em ent s present fairly, in all material respects , the respec ti ve financial position of the governmental activities, the business-type activities, the discretely presented component unit s, each major fund , an d the aggregate remaining fund information of the City as of September 30, 2022, and the respecti ve changes in financ ia l position and, where applicable, cash flows thereof for the year then ended in conformity with accounting. Mr. Parks stated there was one significant deficiency which was Capital Assets; and th ese need to be reconciled on a regular b asis. The genera l ledger to the fixed asset system. City Treasurer Kirn Creech stated she need another Staff Accountant ; an d w ill request one in the budget. She said we need the manpower to review all of th at. • City Treasurer Kim Creech addressed the City Counci l and presented the 6-Month Financial Review. She mentioned the need for a line of credit for the Water and Sewer Department to help comp lete their projects. Counci lm ember Conyers said we need to look at increasing the Rain y Day Fund ; and Capital Purchases. The suggesti on was to increase the Fund by $3,000.000.00 . Co un cil President Robin son said we need to foc u s on Capital Projects and decide what to fund; and stated it is hard to decide . Mayor Sullivan gave examples of some projects we could tidy up and move on to others. Council President Robinson stated there are two main projects on the horizon with significant costs. (See attached Power Point Presentation) Monday , 22 May 2023 Page -2- Council President Robinson commented when a Department Head requests a new item , he/she already knows what item will be removed to balance the budget. • Councilmember Martin gave an update on the Recreation Board regarding beach volleyball and swimming. • Mayor Sullivan announced Ben Patterson was being promoted to Electric Superintendent; and introduced the new Water and Sewer Superintendent Daryl Morefield. Council President Robinson briefly went through the Agenda Items and who would explain if needed. • Public Works Director Richard Johnson addressed the City Council and exp lained the revision to the rules for our landfill , Baldwin County Material Recovery Faci lity ("MRF") along with Charm Sites ; Fairhope Satellite will be a Chann Site. Mr. Johnson gave an update on the Surplus Items being so ld ; and gave an Asbestos Abatement Report for the K-1 Center. He explained Agenda Items No. 8, No. 10 , No . 11 , No . 12 and No. 15 ; and answered any questions if needed . • Go lf Grounds Manager Tomm Johnson addressed the City Council regarding Agenda Item No. 9; and answered any questions if needed. • Captain John Hamrick addressed the City Council regarding Agenda Item No . 13 and No . 14 ; and answered any questions if needed. There being no further business to come before the City Council , the meeting was duly adjourned at 5:51 p.m. ~~ City Cl rk CITY OF FAIRHOPE CITY COUNCIL MEETING May 22, 2023 SUMMARY FINANCIAL REPORTS SIX MONTHS ENDED MARCH 31, 2023 Cash Balances March 31, 2023 March 31, 2022 March 31, 2021 34,685,701 25,752,999 13,526,051 Gas Department 12,287,159 11,896,802 10,558,545 Electric Department 7,654,483 7,649 ,753 8,033,579 Water/Wastewater Dept 8,628,303 12,256,938 11,722,355 Sanitation 967,530 169,104 0 Motor Fuel/Rebuild AL Funds 446,137 452,453 205,714 Capital Improvement Fund 1,984,998 494,399 275,618 Impact Fees Fund 3,189,570 3,239,968 3,537,428 Municipal Capital Improvements 447,515 670,692 816,960 Fund Prepaid Medical Ins 1,199,738 1,253,364 483,521 386,518 266 ,711 83,442 Total 71 ,877,652 64,103 ,183 49,243,213 Revenues • Tax Revenues continue to improve Sales Tax • FY2022 increased 14.9°/o • 6 Months Ended 3/31/2023 increased 9.1 % Simplified Seller Use Tax; AKA: Amazon Tax • FY2022 increased 62. 7% • 6 Months Ended 3/31/2023 increase 24.6% Lodging Tax • FY2022 increased 26.3% • 6 Months Ended 3/31/2023 increased 11.4% 1,400,000 .00 1,200,000.00 1,000,000 .00 800,000.00 600,000.00 400,000.00 200,000.00 Oct Nov Dec ..... FY2015 ..... FY2016 Sales Tax Revenue Ja n Feb Mar Apr May Jun Ju l FY2017 ..... FY2018 ..... FY2019 ..... FY2020 ..... FY2021 ..... FY2022 ..... FY2023 Aug Sep Simplified Seller Use Tax 180,000.00 160,000.00 140,000.00 120,000.00 100,000.00 80,000.00 r 60,000.00 I I I I ... 40,000.00 20,000.00 • Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep -FY2017 .... FY2018 .... FY2019 FY2020 -FY2021 .... FY2022 .... FY2023 250,000 .00 200,000.00 150,000.00 100,000 .00 50 ,000 .00 Ocl Lodging Tax Nov Dec Jan Feb Mar Apr May Jun Jul ... FY2015 ... FY2016 ... FY2017 ... FY2018 ... FY2019 ... FY2020 ... FY2021 ... FY2022 ... FY2023 Aug • Sep General Fund Property Taxes Local Taxes Licenses and Perm its Court Revenue Inter-Governmental Interest and Rents Adult Recreation Recreation Fairhope Docks Golf Other Total Revenues 6 Months Ended 3/31/2022 6 ,728 ,959 6 ,229,066 4 ,535 ,188 98 ,233 223 ,794 141 ,949 11 ,533 226 ,209 198,939 698 ,083 2 ,862 ,140 21 ,954,093 6 Months Ended 3/31/2023 7 ,816 ,897 6 ,856 ,741 4,595 ,035 105 ,651 146,404 495,443 15,983 265 ,980 226,322 615 ,835 2,589 ,878 23 ,730 ,169 FY2023 Budget 8 ,393,424 14 ,610,033 4 ,870,448 230 ,000 326 ,000 288 ,976 24 ,500 416 ,500 711 ,500 1,238 ,000 6 ,702 ,225 37 ,811,606 Percent Remaining 6.9% 53 .1% 5.7% 54 .1% 55 .1% -71.4% 34 .8% 36 .1% 68 .2% 50 .3% 61.4% 37 .2% Expenses Excess Revenue over Expenses General Fund Revenue & Expenditures I 6 Months Ended 3/31/2022 21,954,093 14,032,226 7,921,867 6 Months Ended 3/31/2023 23,730,169 15,647,391 8,082 ,778 FY2023 Budget 37,811,606 37,811,606 0 Percent Remaining 37.2°/o 58 .6% General Fund Expenses Department General Government Elected Officials Planning Building Dept Judicial Police Dept Information Technology Human Resources Revenue Meter Fire Department Economic & Community Dev Recreation Dept 6 Months Ended 3/31/2022 1,114 ,572 133,443 352 ,758 470,465 147 ,710 3,451 ,032 418,524 159,076 263 ,565 304 ,744 339 ,886 209 ,686 1,228,290 6 Months Ended 3/31/2023 1,240,798 129,626 455,429 570 ,772 121 ,076 3 ,590 ,598 588 ,273 253 ,617 285 ,243 366 ,025 435,300 314 ,288 1,378,186 FY2023 Budget 2 ,673 ,207 291 ,238 1,210 ,810 1,261,456 305 ,946 8 ,529 ,725 1,476,782 514 ,906 664 ,798 775 ,287 1,152,536 694 ,306 2 ,977 ,122 Percent Remaining 53 .6% 55 .5% 62.4% 54.8% 60.4% 57 .9% 60.2% 50 .7% 57 .1% 51.5% 62.2% 54 .7% 53.7% I I Department Civic Center Museum/Welcome Center Adult Recreation/Special Service Marina/Harbor Streets Department Fleet Maintenance Golf Clubhouse Golf Grounds Non-Departmental Facilities Staff Agencies & Appropriation Debt Service Other Expenditures Gen Emergency Disaster Totals General Fund Expenses 6 Months Ended 3/31/2022 113 ,185 111 ,540 257 ,542 469 ,244 2 ,393,468 407 ,279 385,989 310 ,047 130,016 676,868 25,466 150,538 7,293 14 ,032 ,226 6 Months Ended 3/31/2023 124,178 102,736 369,408 376,955 2 ,500 ,810 350,204 458,300 391 ,873 151 ,261 723 ,374 0 369,060 Q 15,647 ,391 FY2023 Budget 782 ,562 200,801 682 ,150 947 ,829 5 ,988,776 810 ,925 1,226,485 1 ,115 ,281 548 ,817 1,451 ,740 300,000 1,213 ,120 Q 37 ,811 ,606 Percent Remaining 84 .1% 48 .8% 45 .8% 60.2% 58 .2% 56.8% 62.6% 65.9% 72.4% 50 .2% 100.0% 69.6% 0.0% 58 .6% I I Capital Vehicles & Equipment Capital Improvements General Fund Capital 6 Months Ended 3/31/2022 415,167 533,923 6 Months Ended 3/31/2023 596,594 541,704 FY2023 Budget 2,040,897 1,758,438 Percent Remaining 70.8%, 69 .2°/o General Govt Administration Elected Officials Planning Building Judicial Police Information Technology Human Resources Revenue Meter Fire General Fund's Salaries 6 Months Ended 3/31/2022 486,791 66,878 176,044 252,236 93,769 1,922,870 161,244 121,575 168,675 202,294 89,937 6 Months Ended 3/31/2023 527,608 66,228 240,632 285,147 82,769 2,030,877 160,033 170,019 189,683 216,601 85,579 FY2023 Budget 1,179,625 149,200 633,663 643,163 183,583 4,901,724 404,323 311,060 428,017 474,226 218,189 Percent Remaining 55.3% 55.6% 62.0% 55.7% 54.9% 58.6% 60.4% 45.3% 55.7% 54 .3% 60.8% Economic & Community Development Recreation Civic Center Museum/Welcome Center Adult Recreation Marina/Harbor Street Fleet Maintenance Golf Clubhouse Golf Grounds General Fund's Salaries FY2022 March FY2023 March FY2023 Budget 31,285 65,666 139,590 495,845 556,445 1,663,096 61,997 73,966 159,053 49,499 49,634 109,342 90,423 101,900 225,216 61,204 64,037 136,373 985,912 1,116,352 2,621,317 190,133 216,690 465,481 158,538 180,460 497,514 149,513 165,065 448,313 6,016,662 6,645,391 15,992,068 Percentage Remaining 53.0% 66.5% 53.5% 54.6% 54.8% 53.0% 57.4% 53.4% 63.7% 63.2% 58.4% Utilities Expenses Net Income Capital Vehicles & Equipment Capital System Improvements Natural Gas 6 Months Ended 3/31/2022 5,947,548 4,198,651 1,748,897 6 Months Ended 3/31/2022 100,483 18 ,269 6 Months Ended 3/31/2023 5,587,058 5,037,478 549,580 6 Months Ended 3/31/2023 309 ,889 649 ,020 FY2023 Budget 10,609,866 10,609,866 0 FY2023 Budget 532,241 2 ,018 ,200 Percent Remaining 47.3% 52.5% Percent Remaining 41.8% 67 .8% Expenses Net Income Capital Vehicles & Equipment Capital System Improvements 6 Months Ended 3/31/2022 9,133,372 7,805,468 1,327,904 6 Months Ended 3/31/2022 130 ,646 663 ,198 I Electric 6 Months Ended 3/31/2023 10,143,160 8,422.564 1,720,596 6 Months Ended 3/31/2023 102 ,112 714 ,555 FY2023 Budget 28,280,169 28.280.169 0 FY2023 Budget 532 ,590 6,491 ,277 Percent Remaining 64.1% 70.2% Percent Remaining 80 .8% 89 .0% Revenues Expenses Net Income 6 Months Ended 3/31/2022 4,044,047 3,247,614 796,433 Water 6 Months Ended 3/31/2023 4,924,986 4,798,133 126,853 * FY2023 Budget Revenue included $7 .SM line of credit revenue Capital Vehicles & Equipment System Improvements -Water Wells Capital System Improvements 6 Months Ended 3/31/2022 167,482 13,139 427,144 6 Months Ended 3/31/2023 149,502 1,369,304 601,339 FY2023 Budget 21,436,896 21,436,896 0 FY2023 Budget 240,540 4,851,000 9,885,000 Percent Remaining 77.0%, 77.6% Percent Remaining 37.8% 71.8°/o 93.9% Expenses Net Income Wastewater 6 Months Ended 3/31/2022 3,387,731 3,522,163 (134,432) 6 Months Ended 3/31/2023 3,804,871 4,127,503 (322,632) I * FY2023 Bu dget Revenue i ncl uded $7.5M line of credit revenue Capital Vehicles & Equipment System Improvements - Collection System Improvements-Lift Stations 6 Months Ended 3/31/2022 210,490 663,774 189,939 6 Months Ended 3/31/2023 562,525 934,362 228,631 FY2023 Budget 16 ,228,163 16,228.163 0 FY2023 Budget 451,584 9,190,780 1,997,600 Percent Remaining 76 .6% 74 .6% Percent Remaining -24.6°/c, 89.8°/c, 88.6°/c, Sanitation Expenses Net Income 6 Months Ended 3/31/2022 1,538,656 1.761,519 (222,864) * FY2023 Budget Revenue included $923 ,288 Master Lease Revenue Capital ! I Vehicles & Equipment Capital Improvements 6 Months Ended 3/31/2022 329,576 6 Months Ended 3/31/2023 1,791,892 1,973,960 (182,069) 6 Months Ended 3/31/2023 282,810 FY2023 Budget 4,473,908 4,473,908 0 FY2023 Budget 923,288 209,250 Percent Remaining 59.9%> 55.9°/o Percent Remaining 69.4% 100.0% Natural Gas Electric Water Wastewater Sanitation Utility1 s Salaries 6 Months Ended 3/31/2022 511,600 667,498 498,333 474 ,277 510,371 6 Months Ended 3/31/2023 549,229 775,734 526,667 481 ,969 545,876 FY2023 Budget 1,307,769 1,895,126 1,304,099 1 ,258,382 1,242,228 Percent Remaining 58.0% 59.1% 59.6°/c, 61 .7°/c, 56.1 °/c,