In Alamo Heights, it’s sometimes not that easy being green!

Despite residents’ opposition to proposed repaving of an unused alley that has flourished as green space, the Alamo Heights City Council allowed a pair of homeowners to pave over the lush path for easier carport access.

The application for improved access to 120 Redwood Ave. has become a hot community topic – pitting neighbor against neighbor — since its first filing in early January.

Since that initial application, architectural designs have been rendered, drainage issues have been addressed, notifications have been distributed to neighbors and a petition from four opposing property owners has been delivered to City Hall.

The item came near the end of a packed city council agenda, but took up much of the evening’s discussion. Aside from carport access, plans called for minor design modifications to carport elevations.

The proposed changes substantially differed from previous designs approved by council, which included approval of a driveway construction off Ashcroft rather than paving over the alley.

“I see this as an encroachment,” Alderman Bill Kiel said. “I’m concerned about the precedent this would be setting.” Although “very pro-green,” Alderwoman Jill Souter said she was swayed toward approval because of the plan’s improvements to existing drainage.

Mary Budenholzer, who owns the Redwood home with husband Michael, asked for approval: “If I can be allowed access, it will provide more security for me and my children.” Council approved the plans by a 3-2 vote, with council members Susan Harwell and Kiel dissenting.

In other business, council- members unanimously approv-ed work at the Incarnate Word Chapel at 4507 Broadway. Sister Walter Maher successfully lobbied for approval to renovations on the chapel’s interior, reconstruction of the main stairs and exterior landscaping and renovation. Work on the chapel – celebrating its centennial this year — is expected to be completed by September, she said.

City Manager Rebecca Waldman unveiled the city’s proposed 2007-08 operating budget, including projected revenue of $11.05 million – a 4.94 percent increase from fiscal year 2007. Total appropriations from the fund balance total $836,817 with the lion’s share — $352,525 – earmarked for city vehicle and equipment replacement.

The revised budget also includes proposed operating appropriations for fiscal 2008 of $10.4 million – a 5.27 percent increase. Projected appropriations include costs for ongoing ordinance codification, a geographic information system project, an information technology upgrade and a traffic calming study. A public hearing on the proposed budget is scheduled for June 25 with adoption expected July 9.

As a counterbalance to the fortified budget, city treasurer and tax assessor/collector Cynthia Barr detailed the potential loss of revenue to municipal coffers should voters approve a property tax freeze for senior and disabled property owners in November. In May, the city received a petition for the tax cap from nearly 400 residents – more than the required 5 percent of registered voters needed to force an election on the matter.

Barr said the freeze would result in revenue loss from taxable valuations of $16 million over 20 years, or about $800,584 annually. Conversely, savings to affected homeowners – some 20 percent of the population — would be about $40.18 a year. Barr said the loss in value could result in cuts in city services or reductions in city staff.

Council also came closer toward a debt issuance to fund various public improvements by directing Waldman to engage the services of McCall, Parkhurst & Horton as bond counsel. In the event debt is issued, the law firm would secure a $4,000 fee plus one-tenth of one percent of the principal amount of a series of bonds issued by the city. Thus, a $2 million bond issue would yield the firm $6,000 in fees.

Anticipating a future bond issue, council in April secured the services of Dallas-based First Southwest Co. to provide financial advisory services. The city has not issued debt since 1947, when bonds were issued to build a public swimming pool.