The budget process for the city of Covington is under way with a proposed budget for general fund revenues for 2009 of $15,206,011. This compares to the $13,923,144 budget for 2008 in general fund revenues and reflects a 12 percent increase over the adopted 2008 budget.

The city derives about half of the budget from sales taxes of 8.75 percent. Based on current revenue collections, it is estimated the city will collect just over $9 million in sales tax for the fiscal year of 2009.

In addition, ad valorem taxes are expected to generate $1.6 million, although the official assessment figure from the assessor’s office has not yet been released. Property taxes represent about 9 to 10 percent of the 2009 operating budget. Millage for the city of Covington is at 24.27 mills and divide as follows: 6.11 mills for retiring general obligations bonds, 8.16 mills for general fund revenues and 10 mills for operation and maintenance of the fire department. Covington Mayor Candace Watkins said that according to the city charter, the budget must be approved by the City Council no later than the second meeting in November. Watkins also said the city has shown a plateau in sales tax collections over the past two years.

While the population of the city is an estimated 9,700, the daytime population of those using city services swells to over 20,000. According to the 2009 budget preface, the demand for city services has grown over the past several years, but city resources have not grown proportionately.

One concern of city administration is the salaries of police and firefighters. While population has increased and more structures have been built in the city, there has not been an increase in the number of firefighters during the past 11 years, according to the budget preface.

Covington Police Chief Richard Palmisano and Watkins have both said the department loses officers to other agencies because the city cannot compete with salaries offered elsewhere. In addition to losing seasoned officers, the city is losing the time and effort it has spent in training the officers. The council is trying to develop a step pay program to alleviate concerns of the city’s first responders.

Each week, the City Council is reviewing a portion of the proposed budget to determine what can be cut or what items need to be added. Each department is scrutinized, and funds will be moved into areas they are most needed.

Watkins said the city is doing fine financially and is insulated from the current national financial scene due to the influx of recovery money from Hurricane Katrina.

“The Louisiana economy is still in an anomalic stage and is not following the trend of the rest of the country,” she said.