City Treasurer Kim Creech reviewed the draft FY2026 utilities budget with the Fairhope City Council on Sept. 22, outlining large capital rollovers and multi‑year projects across gas, electric, water and wastewater utilities.

Creech said the utilities budget contains a mix of equipment replacements and substantial system improvements that mostly represent work already under way. “Yes, sir. And that's when it's the plant maintenance and wells. Is well 5 a rollover 300,000?” Creech said while describing rollovers and carryover funding for projects started in FY2025.

The nut graf — why this matters: the presentation shows that most of the utilities capital needs for FY2026 are carryovers from FY2025, not wholly new spending, and that the city will soon face financing decisions as existing borrowing is drawn down.

Creech enumerated major line items: a $500,000 capital rollover for resurfacing and restriping at the Utilities Public Works parking lot; a $7,150,000 system improvement line that includes projects to be reimbursed by partner agencies; and multiple gas and electric projects including an estimated $5,200,000 construction and engineering allowance for a 44 kV loop. On vehicles and equipment she said requests were reduced in the gas fund (one vehicle requested) and that electric equipment requests summed roughly to the high six‑figures, including a $350,000 bucket truck and a remaining AMI (advanced metering infrastructure) spend of $682,000.

Water and sewer work includes awarded contracts and rollovers: Creech noted an awarded 16‑inch water main contract (about $4.2 million), a planned new water treatment plant listed as a multi‑year project (roughly $2.3 million this cycle), and numerous rollover waterline and trunk extensions. Wastewater collection and treatment items included a $5,000,000 rollover for the County Road 181 force main and regional lift station work and separate lift station upgrades and bypass pump installations totaling multiple millions.

Council members pressed for clarity on rollovers versus new spending. Councilmember (unnamed) asked whether FY2026 totals simply reflected rollovers from 2025; Creech confirmed many budgeted items are continuing projects that will carry forward if unfinished. Mayor Sullivan and other council members emphasized the practical limits on how quickly the city can complete many parallel street, water and sewer projects because of staffing, long lead times for equipment, and the need to coordinate street closures.

Finance and financing were a recurring theme. Mayor Sullivan said the city has about $25 million of borrowed funds that will be heavily drawn down in the next month and that staff are working with financial advisor PFM to plan next steps. “We have some juggling to do,” she said, and staff will return to council soon with recommendations on timing and structure of any new borrowing.

There were operational notes from staff: Ben (utilities staff) said the 44 kV loop contract runs roughly a year with a planned November start; electric staff described security improvements at substations and completion timelines for AMI; water staff explained that some fenced electric gates and card‑swipe systems are for accountability at critical infrastructure sites such as the Nichols tank and the Twin Beach substation.

Ending: The presentation was informational; council did not take an approval vote on the budget in the work session. Staff said formal budget books will be provided for council review, and additional meetings are scheduled before final adoption so council can weigh financing options and any requested supplemental appropriations.