Dear Fairhope Citizen,
As we begin our 2019 budget process, I’m happy to report on some impressive progress we’ve made since fiscal 2016 year end. We will be discussing this in more detail during our 2019 budget.
Increased Cash Account Balances by almost 50%
Decreased City Debt by 46%: From $6.83MM to $3.68 (Debt should be paid in full by 2020)
Reduced Utility Debt by 21%: From 19.3MM to $15.3MM
As a City, we are in a solid financial position with far less reliance on our utilities to keep us afloat. Since 2016, we’ve reduced the utility subsidy to the City by approximately $4MM from 2016. The City is now paying for its own operating expenses and the need for utility transfers have decreased substantially.
Because our Utilities are not transferring as much to the City, the money will be set aside, as it should, for infrastructure and maintenance. I anticipate the Utility department not having to borrow funds and increasing out debt as we progress. The excessive money transferred from utilities to the City can now be used for community development.