The Shadow
COVINGTON, Va. (VR) – The Covington City Council unanimously approved the city’s annual audit report on Monday, highlighting the municipality’s strong financial position and plans to address long-term obligations. The audit, presented by Corbin Stone of the accounting firm Robinson, Farmer, Cox Associates, gave the city clean opinions on its financial statements, federal grant compliance, and adherence to government auditing standards.
“You folks did a pretty great job,” Stone told the council, noting the city’s responsiveness to audit requests and lack of any significant issues. The report showed the city’s net position – a measure of its overall financial health – grew from $5.4 million in 2020 to an estimated $20.9 million by the end of 2024. Much of that increase was attributed to an $8.5 million influx of federal COVID-19 relief funds, which helped bolster the city’s unrestricted fund balance to $12.6 million. However, the audit also identified several areas requiring attention, including the need to better document highway maintenance work to ensure compliance with state funding requirements and the growing liability for the city’s landfill closure and post-closure costs. “We probably have to transfer some money from the general fund to go cover that,” Stone said of the landfill liability, which is projected to reach $7.8 million by 2024.
City Manager Allen Dressler praised the council’s financial stewardship, crediting their leadership for the city’s turnaround since 2012 when it had narrowly avoided reverting to town status due to fiscal challenges.
“You folks led us down the path to set the requirements and working with our finance,” Dressler said. “That’s where we’re at today. We thank you.”
The council’s strong financial position also prompted discussion of a potential pay raise for its members, who currently receive a modest stipend that has seen little adjustment in over a decade. Mayor Tom Sibold proposed a 20% increase, noting the momentous commitment required of elected officials.
“I wouldn’t have expected the city to be in this kind of position 12 short years later,” Dressler said, reflecting on Covington’s past struggles. “As bad as it was, a lot of people don’t understand how bad it was in 2012.”
Vice Mayor Crosier and other council members expressed support for revisiting the compensation issue, with City Manager Dressler agreeing to have the finance department research and present options during upcoming budget discussions.
“If I’d have done it last week, I would have asked for about a 20% increase for council, and that’s not a lot, you know, when you start adding up the money, it’s maybe $100,” Sibold said.
The council also heard updates on the city’s efforts to comply with new state and federal financial reporting requirements, including the need to adopt uniform guidance policies for the administration of federal grant funds.
Additionally, the council welcomed new council members Susan Crowder and Susan Wolfe, before thanking resigning treasurer Theresa Harrison for all of the hard work and dedication shown since she accepted the position in 2016.
With the audit approved, the council adjourned the meeting, setting the stage for further discussions on compensation, long-term financial planning, and other priorities in the months ahead.
