Casey, the city finance director, presented Covington's fourth-quarter financial report on May 13, reporting robust revenue collections, elevated interest income and healthy cash balances for the fiscal year.

Casey said the city received a little over $3.2 million in property-tax revenues through the fourth quarter; the levy for the year was $3,245,000. Real-estate-excise taxes (REET) came in far above budget: the city budgeted $600,000 but received nearly $1,400,000 (Casey described the REET result as 228.9% of budget). She said the city recorded 51 new home sales, 238 existing home sales, three commercial sales and seven lot sales for the year and gave average-sale prices reported in deed activity.

Casey reported retail sales tax collections came in at a little over $6.2 million against a $5.7 million budget. Utility taxes were up about $400,000 (13.8%) through fourth quarter; she said the water collections matched expectations and that the sewer amount will be audited because initial district numbers differed from receipts.

The city saw strong investment returns in 2024. Casey said total cash on hand at year-end was a little over $42,600,000. The local government investment pool balance was reported as $35,100,000 and investments held outside the pool at about $6,900,000. Interest income for the year totaled slightly more than $2,100,000.

Other highlights: business and occupation (B&O) tax receipts were about $978,000 for the year; the city closed one Public Works Trust Fund loan; interfund loans remain in place for several CIP projects; and CIP interest receipts of $555,000 were available for future projects. Casey also noted hiring a new tax analyst, Linda, to strengthen collections. She told council that final ending fund balances will be presented when year-end closing is complete.

Why it matters: the report shows larger-than-budgeted revenues in multiple categories and substantial cash and investment balances, giving the city flexibility for one-time CIP needs or reserve funding but also prompting staff and council to consider how to allocate windfalls in the upcoming budget process. Casey said staff will meet with the city manager to consider reserve allocations or other uses before the next budget cycle.

No formal council action was taken on the report; it was received for information.