THE RIVER CITY NEWS MORE COVINGTON NEWS THAN ANY OTHER SOURCE
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by Michael Monks
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| City Manager Larry Klein |
"It rains an awful lot and having a rainy day fund that is less than one week's payroll is not much of a rainy day fund," said Covington Mayor Chuck Scheper at Thursday night's special meeting of the City Commission. "A city our size should have a reserve of five-percent of its general fund, or $2.5 million." But as the 2011-12 fiscal year comes to a close at the end of this month, there is far less than two-and-a-half million dollars. There is a paltry $449,080 or less than one week of the City's payroll expenses. Worse still, had the City not adopted Commissioner Shawn Masters's long proposed tax amnesty plan which generated roughly $400,000, there would be less than fifty-thousand dollars in the City's checking account.
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While there was a technical vote on the agenda to approve the moving-around of some line-items from the 2011-12 budget, this meeting was about the approval of next year's budget, one that hopes to bear little resemblance to the shaky one that ends Sunday. But before the new budget could be presented, the old financial wounds of the past year were reopened and reexamined one last time. City Commissioner Steve Frank even dusted off his familiar refrain about what inspired him to run for the office, a stint on the City's audit committee.
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"We saw this train wreck coming and our warnings were not heeded," Frank said. "It's unsustainable what we've been doing for many, many, many years. We're going to put this last travesty of a budget to bed." And then, nearly one year to the day that the budget was originally passed, the 2011-12 budget was voted on and approved one last time.
"We saw this train wreck coming and our warnings were not heeded," Frank said. "It's unsustainable what we've been doing for many, many, many years. We're going to put this last travesty of a budget to bed." And then, nearly one year to the day that the budget was originally passed, the 2011-12 budget was voted on and approved one last time.
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Specifics will come later
Specifics will come later
The new budget for fiscal year 2012-13 was unanimously and enthusiastically adopted by the City Commission following its presentation by City Manager Larry Klein and finance director Bob Due. This is a budget that aims to do more with less, so that more will be available to the City in the coming years. Klein emphasized that there are no and will be no tax increases. In fact, the City's payroll tax will be lowered from 2.5% to 2.45% and while Covington's coffers will likely collect $600,000 less in that area than it did last year, to Klein, it is a good thing, for now. "Payroll tax rates play a role in where companies look to locate," Klein said.
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Additionally, the budget calls for $2 million in infrastructure spending, which is $500,000 more than last year. Members of the current City Commission have frequently accused previous administrations of not spending enough in that area in order to balance their books. The numbers back up that accusation. From 2007 through 2011, only half a million was spent annually on road repairs and the like. The amount was increased to $1.5 million in 2012.
Additionally, the budget calls for $2 million in infrastructure spending, which is $500,000 more than last year. Members of the current City Commission have frequently accused previous administrations of not spending enough in that area in order to balance their books. The numbers back up that accusation. From 2007 through 2011, only half a million was spent annually on road repairs and the like. The amount was increased to $1.5 million in 2012.
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But what about the other anticipated cuts and the recommended reorganization of City Hall and its departments presented by an outside consulting firm Tuesday night? No one knows for sure. The budget was passed with a high amount of generalities and a low amount of specifics. What is known for sure is that 2012-13's budget is projected to have $2 million less than 2011-12's and that cuts are going to come from somewhere, including personnel.
But what about the other anticipated cuts and the recommended reorganization of City Hall and its departments presented by an outside consulting firm Tuesday night? No one knows for sure. The budget was passed with a high amount of generalities and a low amount of specifics. What is known for sure is that 2012-13's budget is projected to have $2 million less than 2011-12's and that cuts are going to come from somewhere, including personnel.
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"I feel sorry for the people in a state of limbo because it's a time of uncertainty and we will be deliberate about that," Mayor Scheper said. "We're going to do it with open eyes and open ears." To filter out the consultants' recommendations and planned cuts the mayor promises to meet with department heads in the next two weeks, and to schedule public hearings within the next thirty days, and then within the next sixty days more specific details will be known. "We still have work to do and we're going to do it as quickly and thoughtfully as possible to put this city on a better path to the future. Doing more of the same won't solve the problems of today or tomorrow."
"I feel sorry for the people in a state of limbo because it's a time of uncertainty and we will be deliberate about that," Mayor Scheper said. "We're going to do it with open eyes and open ears." To filter out the consultants' recommendations and planned cuts the mayor promises to meet with department heads in the next two weeks, and to schedule public hearings within the next thirty days, and then within the next sixty days more specific details will be known. "We still have work to do and we're going to do it as quickly and thoughtfully as possible to put this city on a better path to the future. Doing more of the same won't solve the problems of today or tomorrow."
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Commissioner Steve Casper referenced this week's bankruptcy filing by the City of Stockton, California, the nation's largest municipal bankruptcy ever. "We here in Covington are not letting it happen. It is tough, but for you all to have jobs and streets to work on we have to do this and we'll be better for it in the long run," Casper said to the city employees at the meeting. He invited suggestions from all employees. "We're all ears," Casper said.
Commissioner Steve Casper referenced this week's bankruptcy filing by the City of Stockton, California, the nation's largest municipal bankruptcy ever. "We here in Covington are not letting it happen. It is tough, but for you all to have jobs and streets to work on we have to do this and we'll be better for it in the long run," Casper said to the city employees at the meeting. He invited suggestions from all employees. "We're all ears," Casper said.
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Commissioner Sherry Carran also described the forthcoming decisions as tough, but said that she is confident in the changes that are to happen. "(NKU President) James Votruba was at a legislative caucus earlier this year and said the number one responsibility of leadership is to accept reality and that's what this is, this is reality," Carran said. "This budget is addressing infrastructure needs and at the same time, is getting us to a better spot where we'll be providing services more effectively. We have to change in order to stay ahead of the times. In a year or two years from now we're probably going to be better than we've ever been."
Commissioner Sherry Carran also described the forthcoming decisions as tough, but said that she is confident in the changes that are to happen. "(NKU President) James Votruba was at a legislative caucus earlier this year and said the number one responsibility of leadership is to accept reality and that's what this is, this is reality," Carran said. "This budget is addressing infrastructure needs and at the same time, is getting us to a better spot where we'll be providing services more effectively. We have to change in order to stay ahead of the times. In a year or two years from now we're probably going to be better than we've ever been."
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SEE SLIDES FROM THE BUDGET PRESENTATION BELOW, JUST CLICK THE LINK!
SEE SLIDES FROM THE BUDGET PRESENTATION BELOW, JUST CLICK THE LINK!
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