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Covington posts first‑quarter finances: assessed value up 10.8%, $34.3M in LGIP investments, staff eyes early debt payoff
Summary
Finance staff presented the city’s first‑quarter financial report June 10. Key items: assessed value rose to about $4.7 billion (10.8% increase), the current levy is roughly $3.3 million, the local government investment pool balance was about $34.3 million, and staff said they are evaluating early payoff of debt to save interest.
City finance staff reviewed Covington’s first‑quarter financial results during the June 10 meeting, providing an account of revenues, collections and reserves through March of the fiscal year.
Why this matters: the report updates council on near‑term revenue performance, reserve levels and cash‑management decisions that influence budgeting and capital planning.
Highlights from Casey’s presentation:
- Property tax and assessed value: Through first quarter the city had collected about $123,000 in property taxes; the current levy for 2025 is a little over $3.3 million and the levy rate is about $0.71 per $1,000 of assessed value. The city’s assessed value was reported at approximately $4.7 billion, an increase of roughly $450 million (about 10.8%).
- Real estate excise tax (REET): First‑quarter REET collections were reported at about $180,000, or roughly 22.5% of the adopted budget for that revenue source.
- Retail sales and use tax: First‑quarter unrestricted sales‑tax receipts were about $1.6 million (28.4% of the annual budget). Some retail categories were slightly below 2024 levels while construction‑related receipts were higher. The city also reported early collections from a 0.2% TBD sales‑tax increment that began in January.
- Utility taxes and B&O tax: Utility tax collections totaled about $748,000 (24.6% of budget); biannual billing cycles mean sewer and water‑related tax collections will show more in second quarter. Business & Occupation tax first‑quarter collections were modest in April but year‑to‑date totals improved once April remittances were received.
- Cash and investments: Cash and investments totaled about $42.8 million; the city held roughly $34.3 million in the Local Government Investment Pool (earning about 4.4% in March) and about $8.5 million in outside U.S. government agency investments earning between 4% and 5%.
- Debt and reserves: Casey said the city has enough refunds to consider an early payoff of certain debt through 2027, potentially saving about $200,000 in interest; staff plans to evaluate the option further and return recommendations to council.
- Development services and permits: Permit activity was stronger than the prior year, with 36 single‑family‑residence permits reported through March (compared with 10 in the same period in 2024). Development fee collections improved and overall permit revenue was up versus 2024.
Casey concluded the overview with fund‑by‑fund summaries and a reminder that many property‑tax receipts occur in second quarter; council members thanked staff for the detailed report and asked no action items beyond continuing standard financial monitoring.
