The Covington City Council will now tackle the 2009 budget and try to fund a step pay plan and/or raises for police and fire officials after a ? cent sales tax referendum failed Tuesday.

With almost two-thirds of Covington’s registered voters casting ballots, the tax was soundly defeated, 2,915 to 1,297, with 69 percent of voters choosing not to support the measure.

A budget work session to discuss a myriad of financial concerns, including the raises, will take place Nov. 12 at 4 p.m., followed by a special City Council meeting to consider the budget. Budget matters have been tabled since August pending ad valorum tax figures from the assessor’s office. The controversial ballot item was strongly supported by Mayor Candace Watkins but was opposed by City Council President Matt Faust and St. Tammany Sheriff Jack Stain, among others.

Faust has asserted the money for such provisions is available in the city’s budget.

Faust said the first priority for the council is to get the budget wrapped up and then work on alternative funding for fire and police.

“I would anticipate that starting next week we will meet weekly in order to get a plan for police and fire funding before the beginning of the year,” Faust said.

Councilman Trey Blackall, a proponent of the tax measure, said he feels a number of factors contributed to its defeat, including the assessor problems and the national economy.

“At least we have now agreed to all sit down and address the problem,” Blackall said. “We may need to adopt the budget first and then address police and fire salary issues. It cannot be solved in one meeting.”

Councilman Lee Alexius agreed.

“First we need to address the rollback, then in the next few months we can address the changes needed in the budget for police and fire,“ he said.

Watkins said she still does not believe the money is available in the budget.

While she wouldn’t speak publicly on the measure’s defeat Wednesday, she did issue a press release stating she said she is waiting on Faust to “show her the money.”