Loading...
HomeMy WebLinkAbout07-08-1974 Regular MeetingSTATE OF ALABAMA COUNTY OF BkLDWIN The City Cotancil of the City of Fairhope met In regular session at the City Administration Building, 387 Fairhope Avenue, on Monday, July 8, 1974 at 7:00 P.M. with the following members present. Mayor James P. Nix, Councilmen: David E. Bishop, H. G. Bishop, Sam E. Box and Barney L. Shull. Councilman 011ie Deese being absent. Minutes of the previous regular meeting were approved. This being date set for public hearing on rezoning property on West .side of Greeno between Fairhope Avenue and Edwards Avenuf Mr. Ingersoll reported that he wanted to build an Air Condition- ing and Refrigeration shop on his property. Mr. Wagner had no definite plans but would go along with Mr. Ingersoll as he already had a car lot on one side of his property. Mr. Bodden had no definite plans at this time but Greeno Road is now Truck Route 98 with tentative plans for four lane and feels that eventually it would be rezoned and would go along with Mr. Ingersoll. Mrs. Brown now has house on their property and have no definite plans but would go along with the others in rezoning. Those in the area were concerned about the future value of their homes and what kind of business would locate there if the property were rezoned.ApprOx- imately 45 protested the rezoning with 9 living within 300 feet of the property. Mayor Nix reported that the Community Development Plan just completed by the South Alabama Regional Planning Comm- ission recommends that there be no further B-1 zoning on Greeno north of Fairhope Avenue. Councilman Sam Box then moved, seconded by Councilman' Fi. G. Bishop that th-6 Council comply with the re- commendations of the Planning and Zoning Commission and deny the request for rezoning. Upon being put to vote the following vote was rgcorded': Yea: Councilmen 1 H. G. Bishop and Sam Box, Nay: Councilmen: David Bishop and Barney Sliull. The vote created a tie and Mayor Nix voted Yea to break the tie and the motion was carried. Mr. Bodden then stated that he wanted to go on record as protesting the model home on the east side of Greeno being used as a business office. Councilman Sam Box introduced the following Ordinance. ORDINANCE NO. 539 AN ORDINANCE AMENDING SECTION 139 DISTRICT BOUNDARIES OF ZONING ORDINANCE NO. 295 BE IT ORDAINED by the City Council of the City of Fairhope, Alabama that "East of the Sun" subdivision be and is hereby ti-&ed R-3 end B-2 as shown on map attached to Petition of Annex- ation. BE IT'FURTHER ORDAINED that "Rosa Acres", "Jubilee By the Bay" and "Paddock Estates" be and they are hereby Zoned R-3,, This Ordinance shall be effective immediately upon its adopt- ion and publication as required by law. Adopted this the 8th day of July, Attest: Approi ty Clerk Councilman David Bishop moved that all rules governing the Council which might, unless suspended, prevent the passage and adoption of the Ordinance at this meeting, be and the same are hereby suspended for the purpose of permitting the said Ordinance to be finally passed and adopted at this meeting. Councilman Sam Box seconded the motion. The question was put before the Council and on roll call the vote was as follows: Yea: Councilmen: David Bishop, H. G. Bishop, Sam Box and Barney Shull. Nay: None. Motion adopted by unanimous vote of the members present. ,Councilman Sam Box moved -that the said Ordinance be finally passed and adopted as introduced. Councilman David Bishop seconded the motion. The question of final passage and adoption of said Ordinance was put to vote of the Council and on roll call the results were as follows: Yea: Councilmen: David Bishop, 4, G, Bishop, Sam Box=and Barney Shull. Nay: None. Ordinance No. 539 duly adopted as'intro- duced. Mrs. Martha Hill requested that Council secure necessary right-of- way to put a bicycle path to the swimming pool and park, Greeno Road or Section Street bean$ the only way to get to the park. She further requested that all future utility easements be negotiated in such a way that the easements also'be deemed as trails if in public interest. Motion by Councilman Shull seonded by Council- man Sam Box that the City complete action required to secure right- of-wayand open bicycle path from Ingleside to the park. Motion carried. Motion by Councilman Shull seconded by Councilman Box that the City Council go on record as recommending to the Planning and Zoning Commission that all future utility easements be negotiated In such a way that easement can also be used as trails and walk- ways if in the public interest. Motion carried. Councilman H. G. Bishop presented a statement on the Financial Condition of the City and made it a part of the minutes of this meeting. Motion by Councilman H. G. Bishop seconded by Councilman Barney Shull that the application of Archie Lawrence for packaged Beer Permit at the Pink Panther Pool Room be approved. Upon being put to vote the following vote was recorded: Aye: Councilmen: H. G. Bishop, Sam Box and Barney Shull. Nay: Councilman David Bishop. Motion carried. Motion by Councilman David Bishop seconded by Councilman Sam Box that as funds are available the City continue to particip- ate in the Municipal Electric Association. Motion carried. Councilman David Bishop introduced the following Ordinance: ORDINANCE NO. 540 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAIRHOPE, Alabama that there is hereby established a SEVEN DOLLARS AND FIF X CENT. ($7.50) service charge for calls made by the City Electric Department when intterruption of service is not the fault of the City of Fairhope. This Crdinance shall be effective immediately upon its ad- option and publication as required by law. ` Adopted this the 8th day of July9j\1974- Attest y r Councilman Sam Box moved that all rules governing the Council which might, unless suspended, prevent the passage End adoption of the Ordinance at this meeting, be and the same are hereby suspended for the purpose of permitting the said Ordinance to be finally passed and adopted at this meeting. Councilman Barney Shull seconded the motion. Upon being put to vote the following vote was recorded: Yea: Councilmen: David Bishop, H. G. Bishop, Sam Box and Barney Shull. Nay: None. Motion adopted by uanimous vote of the Council members present. Councilman David Bishop moved that Eaid Ordinance be finally passed'and adopted as introduced. Councilman Sam Box seconded the motion. The question of final passage and adoption was put'to vote of the Council and on roll call the results were as follows: Yea: Councilmen: David Bishop, H. G. Bishop, Sam Box and Barney Shull, Nay, None. Ordinance No. 540 duly adopted as introduced. Motion by Councilman H. G. Bishop seconded by Councilman David Bishop that bills be approved for payment as funds are available. Motion carried. On nomination of Councilman H. G. Bishop, Calvin Han son and J. S. Huett were reappointedd-to the Harbor Board for terms ending April 1976 and Russell Kilgore was reappointed to the Airport Board for a term ending May 1976. Mayor Nix reappointed John Parker to the Planning and Zoning Commission for a term ending May, 1979• There being no further business the meeting was adjourned. Approv Attest: Pity Clerk A PREPAR STATEMENT ON THE FINANCIAL CONDITIOi ,.F THE CITY OF FA I RI-IOPE. SUBMITTED BY H. G. BISHOP. UP UNTIL A MONTH AGO I WOULD NEVER HAVE CONSIDERED VOTING FOR A GENERAL SALES TAX PLACED UPON THE CCNSU'AERS IN THE CITY AS A MEANS OF RAISING REVENUE FOR THE USE OF THE CITY IN ITS OPERATION, BUT SINCE RECEIVING THE CITY ACCOUNTANT'S REPORT FOR EIGHT MONTHS OPERATIONS ENDING MAY 31, 1974, 1 CAN SEE THAT OTHER REVENUE THAN THAT PRODUCED BY THE CITY OWNED UTILITY OPERATIONS IS GOING TO REQUIRED IF TH-E CITY GOING TO BE ABLE TO DISCHARGE ITS OBLIGATIONS IN A SATISFA,TORY MANNER. APPARENTLY , THE SCOURGE OF GALLOPING INFLATION HAS CAUGHT UP WITH THIS CITY IN AN OVERWHELMING MANNER, AS IT HAS .ALL OTHER CITY GOVERNMENTS. EXPENDITURES FROM THE GENERAL FUND FOR THE EIGHT MONTHS PERIOD WERE t52�,277.50 INCLUDING DEBT SERVICE OF $4 ,690•77 AGAINST REVENUES OF t)425,774.67, WHICH INCLUCED TRANSFERS FROM UTILITY OPERATIONS OF Va.h00:00. RESULTING IN A DEFICIT OF $103,5C2.83 FOR.THIS PERIOD. HI3T0R IQALLY, AND I,N WHAT USED TO BE CONSIDERED NORMAL TIIV.ES, THE CITY'S UTILITIES WOULD HAVE CONTRIBUTED 1�1321000.00 TO DATE, TO THE GENERAL FUND, BUT EVEN IF THIS HAD BEEN PAID THERE WOULD STILL HAVE BEE14 A DIFICIT OF $53,600.00, AND IT IS LIKfaLY THAT THE DEFICIT INIThE GENERAL FUND WILL INCREASE MATERIALLY OVER THE REMAINING FOUR MONTHS OF THE CITY'S FISCAL YEAR DUE TO THE FACT THAT AD VAI-09UM TARE§ ON REAI PROPERTY AND AUTOMOBILES RECEIVED DURING THE FIRST THREE MONTHS OF THE FISCAL YEAR HAVE LONG SINCE BEEN USED. "./E CANNQT CQUNT ON THE CITY'S UTILITIES TO PRODUCE SUFF yC I ENT INCOME TO BAIL OUT THE GENERAL OPERATING FUND. THE ACCOUNTANT'S REPORT FOR EIGHT MONTHS SHOWS SALE OF ELECTRIC ENERGY TO BE �42, 167. 17 RESULTING IN NET PROFIT OF $64,316.94 AFTER DEBT SERVICE ;OF t31,809.36, AND DEPRECIATION OF $18, 198. 16. FROM ORERATIONS OF THE NATURAL GAS DISTRIBUTION SYSTEM WE HAVE A NET GAIN OF tg2,451.32 AFTER ALLOWANCE FOR DEBT SERVICE OF t,2'1,79)L.I 58 RPINCIQAL AND INTEREST -�20,696.86, AND DEPRECIATION OF t22,983.93. OBVIOUSLY THE SALES OF NATURAL GAS DURING THE REMAINING FOUR MONTHS OF THE FISCAL YEAR WILL BE CONSIDERABLY SMALLER. OPERATION OF THE !,AJATER AND SEWER DEPARTMENT RESULTED IN A NET LOSS OF �'30, 183. I48,AFTER QEDUCT I ON OF DEBT ISERVI CE PRINCIPAL `.34,000.00, INTEREST `)) 2,725.05, AND ALLOWANCE FOR DEPRECIATION IN THE AMOUNT OF $46, 252. 86. r SUMMARY GENERAL FUND DEFICIT $-107 502.87- ELECTR I C FUND u�, I0. (NATURAL GAS DIST. SYSTEM 92, �1:?2 WATER AND SEWER SYSTEM DEFICIT -3b,I3.8 TOTAL REVENUE FROM ALL SOURCES 17, 081 .95 THE CITY'S MONTHLY DEBT SERVICE (MONTHLY) 27,3 59.31 it it ANNUAL it n 2o7,263.11 IF THE CITY IS TO CONTINUE TO HAVE A GOOD CREDIT RATING, THE DEBT SERVICE MUST BE PAID BEFORE ANY OTHER EXPENSES. NE ARE BEHIND ON OUR PROMISES TO CITY EMPLOYEES PROVIDING A COST OF LIVING WAGE INCREASE_ WHICH SHOULD HAVE BEEN EFFECTIVE N JANUARY 1974, AND UNLESS WE CAN KEEP FAITH WITH THESE EMPLOYEES THERE EXISTS THE POSSIBILITY OF LOSING EXPERIENCED WORKERS, UNTIL LAST YEAR THE CITY NEVER HAD ANY ALLOWANCES IN ITS BOOK—KEEPING PRACTICE FOR DEPRECIATION OF ASSETS OR FOR ANY CONSIDERATION FOR OBSOLESCENSE. SINCE ADOPTING AN ANNUAL BUDGET OUR ACCOUNTANTS HAVE INCORPORATED INTO OUR RECORD KEEPING, PROPER ALLOWANCES FOR ANNUAL DEPRECIATION. THIS OF COURSE IS REFLECTED IN LOWER EARNINGS AS COMPARED TO YEARS IN WHICH NO DEPRECIATION WAS RECOGNIZED. !71i HAVE FACING US, THE MOST DRASTIC INCREASE IN ELECTRIC RATES FROM OUR SUPPLIER SINCE THE CITY HAS BEEN OPFRATING ITS OWN DISTRIBUTION SYSTEM. AN INCREASE OF 71.38/0') HAS BEEN REQUESTED FROM THE PUBLIC SERCIE COMMISSION. WHICH IF GRANTED WILL NESSITATE A RATE INCREASE TO OUR RETAIL CUS— TOMERS OF FROM 30 TO )O% JUST TO PRODUCE THE SAME AMOUNT OF REVENUE. IF THIS COMES TO PASS, I AM OF THE OPINICN THAT OUR CUSTOMERS WILL FEEL COMPELLED TO DRASTICALLY REDUCE THEIR COMSUMPTION, THEREBY RESULTING IN GREATLY REDUCED EARNINGS FOR THE CITY. THE NATURAL GAS SITUATION IS WELL KNOWN. THE POSSIBILITY OF SHORTAGE REMAINS WITH US, AND, GAS MADE AVAILA9LE TO US WILL PROBABLY BE CONSIDERABLY HIGHER, ACCORDING TO INFORMATION WE HAVE RECEIVED FROM OUR SUPPLIER, AND FROM PREDICTIONS COMING OUT OF WASHINGTON. THERE AGAIN, REDUCED CONSUMPTION BY RETAIL CONSUMERS WILL RESULT IN REDUCED REVENUES TO THE CITY. IN ADDITION, WE ARE COMPELLED BY REGULATORY &UTHORITIES TO SOEND ABOUT $25,000.00 FOR CATHODIC PROTECTION TO ALL OF OUR LINES. e \- WITH REFERENCE TO OUR PROBLEMS IN THE VVATER AND SEWER OPERATION., WE KNEW WHEN WE BORROWED t�1,2000000.00 TO FINANCE THE CITY'S SHAPE OF THE COST OF THE DISPOSAL PLANT, AND THE COST OF PROVIDING TWO NEW WATER WELLS WITH LINES LEADING INTO THE EXISTING SYSTEM., HOW MUCH REVENUE WAS NEEDED TO OPERATE THE SYSTEM AND HANDLE THE DEBT SEP,VICE. REQUIREIvIENTSj AND RATES WERE PUT INTO EFFECT AT THAT TIME WHICH WOULD HAVE SPARED US THE EMBARRASSMENT REPRESENTED IN THE POOR OPERATING RESULTS FOR THE EIGHT MONTH PERIOD ENDING MAY 31 , 1974" IT IS TO BE REMEMBERED THAT THE RATES ORIGINALLY PUT INTO EFFECT., ON ADVICE OF THE CITY'S FISCAL AGENT, PROVIDED FOR A SEWER CHARGE OF 701 OF THE WATER, BILL. THE CONSUMERS OBJECTED WITH SUCH VIGOR THAT THE CITY COUNCIL RESCINDED THE PROPOSED RATE BY REDUCING THE SEWER CHARGE TO A NOMINAL MONTHLY CHARGE, APPARENTLY, THIS DEPARTMENT WILL CONTINUE TO BE OPERATED AT A DEFICIT USING THE CURRENT RATE SCHECULE. ANOTHER UNEXPECTED SHOCK CAME IN THE FORM OF AN ASSESSMENT AGAINST THE CITY IN THE AMOUNT OF t37,6n,6.20 WHICH SUM REPRESENTS OUR PRO -RATED SHARE OF THE COST OF MAPPING AND RE -APPRAISAL OF REAL PROPERTY LOCATED IN BALDWIN COUNTY. AS THINGS ARE NOW THE CITY'S DOES NOT HAVE THE MONEY TO PAY THIS. INITH THE ECONOMY LAGGING AND DARKER CLOUDS HOVERING ABOUT,, NOT TOO MANY PEOPLE MAY BE IN A MOOD TO HEAR ABOUT "STOPPING GROWTH it2 BUT THE SAD FACT IS THAT TOO MUCH GROWTH IN TOO SHORT A TIME WILL INVARIABLY OUTRUN A MUNICI^ALITY'S ABILITY TO KEEP UP WITH THE PROPER SUPPORT FACILITIES2 AND THAT IS APPARENTLY A PAPT OF OUR PRESENT DILEMMA. i WISH TO STATE UNEQUIVACABLY I DO NOT LIKE A SALES TAX. IT IS REGRESSIVE AND PUTS THE BURDEN OF TAXATION ON LOW INCOME PEOPLE WHO ARE LEAST ABLE TO BEAR ITS BUT UNLESS SOME ONE CAN COME UP WITH A BETTER METHOD OF RAISING THE MONEY REQUIRED TO OPERATE THE CITY IN A RESPONSIBLE MANNER, I SEE NO ALTER- NATIVE THAT IS ACCEPTABLE. IF THIS BECOMES NECESSARY, i HOPE THAT SUCH A TAX WILL PROVIDE ENOUGH INCOME TO ENABLE THE CITY TO REDUCE THE RES I @W 1 MATE FOR GARBAGE PICKUP BACK TO $ 1 .00 WHICH WILL HELD IN SOME WAY TO AMELIORATE THE EFFECTS OF A SALES TAX.