by Michael Monks
Email Michael
Email Michael
Find us on Facebook: The River City News @ Facebook
|
 |
| Mayor Scheper leaves the stage after highlight "brutal facts" to the Covington Business Council |
Ninety-four days since assuming his new role as Mayor of Covington, Chuck Scheper laid out the most pressing issues facing the city before a packed luncheon sponsored by the Covington Business Council. The mayor intentionally left out much of his plan to address what he described as "brutal facts", saving those details for Tuesday night's State of the City address. Those solutions will likely include many of his original recommendations in 1999's 'Scheper Report' which offered suggestions to save the City from moving toward the financial brink. Few of those suggestions were implemented and now Covington is on pace to face a $20 million budget deficit by 2017 if changes are not made quickly. Now instead of serving as the author of a report, Scheper finds himself in a position to implement the changes first-hand.
|
Surrounded by the entire city commission, city administration, and business & community leaders, Scheper identified the "brutal facts" as rising health care costs for city emloyees, increased pension contributions mandated upon the cities by the state, the strange geographical layout of Covington and the added burden and costs that it presents to emergency response, the stark decline in population, the decrease in payroll tax revenue, infrastructure needs, and the growing deficit.
|
"I have a short tenure," Scheper said of his fourteen months that he will have as mayor. "People ask me, 'how can you accomplish this?' I firmly believe that we can. There is a sense of urgency to get things done. We have what some would call a crisis." The mayor pointed out the city commission is unified behind his 10-point plan to turn the city around which will be presented next Tuesday. "You have to face the reality of where you are," he said.
|
Then Scheper jumped into the brutal facts. "Our health care costs per employee are very high on a comparative basis," he said. "The unions recognize the issues the City faces. I have had productive discussions with them. We can achieve a lot by increasing education and finding ways we can all work together without reducing the quality of care for our employees." Scheper also proposed a wellness plan to keep the workforce healthy.
|
Scheper also said that he met with the mayors of Louisville and Lexington and all share concern about the increasing contributions to the pension system as mandated by the state. "The costs are high and they are getting higher," Scheper said, worried that eventually the costs could bankrupt several cities. He noted that the private sector has adjusted its retirement plan system and now he hopes that Frankfort will call attention to the public sector's.
|
Covington's financial crisis is due in large part to the declining payroll tax base which will be amplified when the City feels the effects of the departures of Omnicare and Nielsen. "Since 2009, the last three years, we've had a decline in our payroll tax revenue," Scheper said. "The economy hit us, but the fact is that we are not that competitive when it comes to the payroll tax rate." Scheper urged the City to view itself as being in competition with more than just Cincinnati but also other regional cities that have more favorable rates such as Indianapolis or Owensboro. "Some business leaders are not as concerned, they just want to make sure they're getting good value for what they contribute," the mayor said. "So what can we do to make sure we're focused on enhancing the quality of life not only for residents but also for businesses."
Covington's financial crisis is due in large part to the declining payroll tax base which will be amplified when the City feels the effects of the departures of Omnicare and Nielsen. "Since 2009, the last three years, we've had a decline in our payroll tax revenue," Scheper said. "The economy hit us, but the fact is that we are not that competitive when it comes to the payroll tax rate." Scheper urged the City to view itself as being in competition with more than just Cincinnati but also other regional cities that have more favorable rates such as Indianapolis or Owensboro. "Some business leaders are not as concerned, they just want to make sure they're getting good value for what they contribute," the mayor said. "So what can we do to make sure we're focused on enhancing the quality of life not only for residents but also for businesses."
|
The quality of life for residents may be demonstrated in the statistics that show Covington's population having dropped from a high of 65,000 in 1930 to its current 40,000. "This is a brutal fact: we have fewer residents and it's declining," Scheper said. "We've had a lot of discussion about housing. More market-rate housing is part of the answer. We're getting ready to launch some significant projects and opportunities in the urban core that will help stimulate other investments." The mayor discounted the 'if you build it, they will come' mantra. "People say if you have the amenities the people come but people put their amenities in a city expecting to make some money," he said.
The quality of life for residents may be demonstrated in the statistics that show Covington's population having dropped from a high of 65,000 in 1930 to its current 40,000. "This is a brutal fact: we have fewer residents and it's declining," Scheper said. "We've had a lot of discussion about housing. More market-rate housing is part of the answer. We're getting ready to launch some significant projects and opportunities in the urban core that will help stimulate other investments." The mayor discounted the 'if you build it, they will come' mantra. "People say if you have the amenities the people come but people put their amenities in a city expecting to make some money," he said.
|
Scheper's presentation ended with more talk of finances, showcasing that Covington is on a track of continuous financial decline through 2017 without changes. The mayor also called for more funding of infrastructure projects. "If you kick the can too far down the road, literally, the road may not be there," he said.
|
Mayor Scheper's State of the City address next Tuesday at the Madison at 6:00PM is a free event for the public to attend as he answers the many questions presented Thursday afternoon. "There are many issues that we face and we have a plan of action, we have specific goals and tasks," Scheper said. "I don't want you going home with a sour stomach but until you face the brutal facts, I don't think we make any headway."
|
"We have a lot of capable and talented employees who want to be part of a winning team," the mayor continued. "It's a matter of getting us all working together, rowing in the same direction and facing challenges head-on. I think we can accomplish great things this year and we can be a great city."
No comments:
Post a Comment