Orange Beach, AL – (OBA) – According to city documents, citywide expenses in the 2022 budget will increase by about $16 million over the 2021 numbers but, Finance Director Ford Handley explains, there are plans for several capital improvement projects set to begin during the year.

The 2022 budget was presented at the joint council regular/work session on Nov. 16. The meetings were at the Performing Arts Center after the city hosted an open house of the new facility at 3:30 p.m. The council sessions began at 5 p.m.

“The increase is due to several items relating to FEMA funded repair projects such Waterfront Park, Canoe Trail repairs, Alabama Point fish park repairs and others,” Handley said. “Also, we have the Canal Road East project that involves widening the road and installation of cart paths.”

Both the 2021 and 2022 budgets will continue adding to the city’s surplus with $13.8 million this year and another $9.9 million in 2022. Handley said the city has about $98 million in reserve.

“The city continues to conservatively budget our revenue numbers which continues to lead to our surplus,” Handley said. “For example, our budgeted general fund revenue for 2022 is $53.6 million. We expect to bring in north of $65 million in general fund revenues alone for 2021. Between the remaining bond funds which is around $25 million and expected $20 million in surplus this year this budget is easily funded.”

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Reserves to help the city respond storms and other unexpected expenses will also increase once federal funds are repaid following all the damage from Sally and other tropical events.

“We also expect to replenish our hurricane reserve to the tune of about $12 million once we receive the next FEMA reimbursements,” Handley said. “Currently, it stands around $6 million.”

During the regular session, the council:

• OK’d a resolution authorizing the purchase of two UTVs for the Sportsplex through Sourcewell in the amount of $23,624 for two Polaris Ranger 570 models. The price includes adding a roof to each and $500 a piece for shipping.

During the work session, the council discussed:

• A resolution authorizing execution of a cooperative agreement with the Alabama Department of Environmental Management (ADEM) for the city to provide permitting, regulating, monitoring, and inspection services and be reimbursed in an amount not to exceed $37,950. The city monitors beaches, manages Gulf-front construction and purchases equipment including vehicles to facilitate beach management, among other duties.

• A resolution authorizing the execution of a task order with Cowles, Murphy, Glover & Associates to provide design, bid, and construction administration services for post Hurricane Sally Alabama Point seawall repair in an amount not to exceed $335,250.

• A resolution authorizing execution of change order No. 5 with Asphalt Services for Coastal Resources Center site work. The original contract was for about $430,000 but with this last change order the total contract comes to $694,000.

• A resolution authorizing execution of a FY2021 grant award agreement with the U.S. Department of Homeland Security for two response ATVs for the police department. This is for two Polaris Ranger Crew ATVs for a total of $47,358.

• A resolution authorizing execution of a professional services agreement with Olsen Associates for engineered beach restoration and monitoring.

• A resolution authorizing the execution of a task order for Sawgrass Consulting to perform engineering professional services for reconstruction of the Orange Beach High School driveway.

• A resolution authorizing execution of a task order with Watermark Design Group to provide design, bid, and construction administration services for roof replacements at the Fire Administration Building and Post Office, City Hall following the April 10, 2021, hailstorm in an amount not to exceed $24,600.

• A resolution authorizing execution of an intergovernmental agreement with Baldwin County for the use of county voting machines and the services of the county voting machine custodian and employees for municipal elections.

• A resolution authorizing execution of a performance contract with Anne B. Gajda for golf instruction services.

• A resolution authorizing a contract extension with Crowder Gulf for debris clearance and sand reclamation services.

• A resolution authorizing the publication of an amendment 750 notice relating to a ground lease for the construction of a medical office building and discussed setting a public hearing date on the lease. The suggested date was Dec. 7.

• Setting a public hearing date for an ordinance amending the planned unit development for Zekes Marina minor PUD modification for work on piers and fuel tanks.