By Ryan Clark
NKyTribune reporter
In April 2017, the City of Covington received its credit rating from the Moody’s financial services company.
While the city was lauded for improving its financial situation, it was also told it needed to pay off some of its debt.
That year, the city’s debt was 10.8 percent of the city’s general fund. “They said to pay it down,” City Manager David Johnston said. “They said to get it manageable or we wouldn’t get a decent rating.”
Creating a debt management policy was one of the items up for discussion on Tuesday night’s agenda of the City Commission’s regularly-scheduled caucus meeting. Coming up with a debt management policy was one of 23 items commissioners requested of City officials this fiscal year.
On Tuesday, Finance Director Muhammed Owusu proposed a framework stating the city would not exceed 10 percent of the city’s general fund revenues. But Mayor Joseph U. Meyer wondered if the number was too high, instead suggesting 6 percent.
Owusu said 10 percent was recommended, and that 6 percent would be “very competitive.”
Johnston mentioned how a recent newspaper story quoted Lexington’s debt at 12 percent. “As a ceiling, (10 is) appropriate,” he said.
“But if we say it should be 10 percent, it’s always going to be 10 percent — that’s the nature of the beast,” Meyer said.
He again questioned if it should be lower. They agreed the language could read that the percentage should not be over 10.
The policy will have a first reading at the city’s legislative meeting next Tuesday.
“It’s good to see the policy,” Meyer said.
City will hire consultants to collect taxes
Staying in the financial realm, the city agreed to enter into a three-year deal with California-based Avenu Insights and Analytics to provide tax collection services to the city for a 25 percent contingency fee for delinquent property tax collection, and a 40 percent contingency fee for delinquent occupational tax discovery and collection.
“We shouldn’t be in the lien business,” Johnston said. “We’re here to make sure we’re being fair. Everyone should pay their taxes.”
Officials said that past staffing cuts made it more difficult for the city to collect on these delinquent taxes.
Owusu said the city would still try as hard as they could before sending cases on to the consultants. These will be “only the toughest cases,” Meyer said.
The proposal will be on the consent agenda Tuesday.
Façade/rent subsidy agreements
Commissioners approved:
A rent subsidy agreement with Head 2 Toe Salon NKY, LLC
A forgivable façade incentive agreement with Kenneth E. Smith
A forgivable façade incentive agreement with Ace Restaurant Group, LLC
A forgivable façade incentive agreement with K & A Holdings, LLC
An amended forgivable façade incentive agreement with Fessler Properties LLC
An amended forgivable façade incentive agreement with MW & MW Properties Inc.
A preferred development agreement with the Center for Great Neighborhoods
Also Tuesday …
Commissioners approved the city manager to solicit proposals for the sale and redevelopment of the city-owned property at 1118 Lee St. for economic development purposes, as well as redevelopment of city-owned real estate located at 951, 954 and 956 Philadelphia St.
Commissioners heard a proposal to enter into an agreement with the other Kenton County fire departments “for the purpose of rendering emergency mutual aid, assistance, manpower, and equipment to each other, in the event of emergency situations arising within their individual jurisdictions, wherein their own manpower and equipment is deemed inadequate or unavailable.”
Currently the city and the Covington Fire Department participate in the Northern Kentucky Firefighters Association Mutual and Automatic Assistance Contract, but new Kentucky Board Of Emergency Medical Services regulations do not except the agreement. The new regulations require a separate agreement that covers just EMS, which this would do. The city put it on the regular agenda for Tuesday.
Commissioners heard a presentation by Joe Koehl, president of Ride the Cov, a local organization that promotes cycling in the city. The riders want to purchase 500 bike racks and have them installed around the city, then start a website to help enthusiasts request bike racks in certain locations. The city said they would support Koehl working with Neighborhood Services Director Ken Smith and would listen to an updated pitch in the future.
In response to residents’ complaints about the Northern Kentucky Sanitation District No.1’s performance on certain projects, Mayor Meyer said he recently spoke to Adam Chaney, the executive director of SD1, and was told the Ninth Street/Greenup Street project would be — according to Chaney — completed no later than March 31.
Commissioners elected to adjourn to executive session after the meeting for purposes of discussing litigation and discipline of an individual employee, the Mayor said. However, he also said no further action would be taken after the session.
The next regularly scheduled Covington Commission meeting will be a legislative meeting held at 6 p.m., March 12, at the Covington City Hall at 20 West Pike St.
Contact the Northern Kentucky Tribune at news@nkytrib.com
