Fairhope work session previews $188 million FY2025 budget with major utility, parks and personnel investments

City staff presented the Fairhope proposed fiscal year 2025 budget at the Sept. 23 work session, stressing heavy investment in utility infrastructure and parks while proposing personnel increases and changes to sanitation rates.

"This budget has a lot of infrastructure improvements in it," the presenter identified in the transcript as Kim said, outlining major line items: $56,200,000 for utility improvements; $1,800,000 for road resurfacing, street parking and drainage; $2,900,000 for traffic and transportation improvements; $8,800,000 for parks and facility improvements; and a $5,200,000 investment in the K-1 center supplemented by $3,500,000 in grants. The presenter also said the budget proposes 21 new positions and cost-of-living and merit adjustments.

Kim reported the total proposed budget in the presentation as roughly $188 million and summarized year-over-year changes the transcript records as a 5.6% increase to the general fund, a 12.9% increase to sanitation, a 34.8% increase for water and sewer, and an overall budget increase of about 17.8%.

Staff walked council members through revenue and spending mixes, noting property tax as a large revenue source and listing a line labeled in the presentation as 'Avalon tax' at 21%, with local taxes at 35% and licenses/permits at 12%. Expense allocations presented included general government (21%), public safety (25%), public works (17%), and recreation/cultural services (23%).

Capital highlights included $7,500,000 for parks and recreation (playgrounds, pool, tennis and pickleball courts and Flying Creek Nature Preserve work), $5,400,000 for streets resurfacing and drainage, $21,000,000 for water-line projects and treatment-plant improvements, and $24,000,000 for wastewater upgrades including regional lift stations and generators. The presentation further listed investments in vehicles and equipment across departments and $1,700,000 in community appropriations (library $919,000; The Haven $159,000; Rotary Club $57,000; community partners $212,000).

On sanitation rates, staff proposed multiple pickup-frequency tiers (twice weekly up to five times weekly). One council member questioned the relative percentage increases for higher-frequency service, and staff said the rate structure provides discounts for required downtown pickups where space constraints force more frequent collection.

Several related items were discussed during the session: a wastewater headworks bid that came in under budget with three bidders and an estimated $1.3 million in ARPA funds to apply; an annual software renewal for CitizenServe; procurement actions for grant management of a FEMA Hazard Mitigation Grant and extensions for waterfront and engineering contracts; and a $200,000 Bureau of Justice grant for fentanyl-education programming and naloxone distribution for the police department.

Multiple council members asked for more time to review budget details. One member said they were not yet comfortable approving the budget immediately and suggested tabling and scheduling a special-call meeting so the council could act by unanimous decision. The council did not take final budget action at the work session and planned to return for the regular council meeting at 6:00 p.m.

Budget figures are those presented by staff in the transcript. Where transcript wording or numbers were unclear (for example a total budget figure presented verbatim as "$188,000,007.56 $8.98"), this article summarizes the amounts as stated in the presentation (rounded to nearest dollar or million in context) and notes unclear transcript formatting when relevant.