Covington Finance Director Rob Hendrickson presented the 2009 fourth quarter annual report with a dose of economic forecasting at the March 23 City Council meeting.
The numbers were much like the economy – some good and some bad.
Hendrickson noted it “looks like the state has turned the corner on the recession.”
He added a regional economist said it could be seven to eight years, however, before the economy completely recovers.
The report stated the recession “hit the city full force in 2009.”
Hendrickson’s wrote in the report, “The city had to make some mid-year course corrections to accommodate the revenue losses, which included making personnel and service reductions.”
The finance report stated the economic recovery is continuing in the city, “but we are still waiting for a recovery in jobs.”
The number highlights from the 2009 budget included a total of about $7.8 million in revenue for the general fund with the biggest shot in the arm coming from sales tax.
Total cash out the door from the general found was about $7.7 million, with the largest expenditure for police services.
The ending fund balance increased by $90,000.
Hendrickson’s report noted the total sales tax was lower in 2009 than 2008, but the city hit a record high of about $2 million for retail sales tax. In 2008 retail sales tax was about $1.5 million. The report stated retail tax made up 72 percent of the total sales tax collected by the city.
Food and restaurants tax also set a record at $308,971.
The hit came with construction sales tax dropping from 23.7 percent of the total sales tax in 2008 to the basement in 2009 at 6.5 percent, a loss of $500,000.
Property tax showed a small increase over 2008. The city received about $1.9 million in 2008 and about $2 million in 2009.
Much like individuals, total cash and investments are down. The city’s total in cash and investments is about $7.6 million, down about $1.6 million from 2008.
The city has two reserve funds – the contingency fund and cumulative reserve fund. The contingency fund account has $430,000 and is used for unforeseen events. The cumulative fund is a rainy day account and has about $1 million.
Despite the worrisome time, Hendrickson said the city is doing “pretty well overall.”
