The Shadow
COVINGTON, Va. (VR) The Covington City Council was presented with the fiscal year 2025 budget Tuesday night, implementing utility rate increases while maintaining no property tax hikes and outlining several key community initiatives.
City Manager Allen Dressler broke down the comprehensive budget that includes slight increases to water, sewer, and refuse services, elevating the total monthly cost of the three by $10 for residents starting July 1.
“We’re getting to a point where we have to address our enterprise accounts,” Dressler told council members, explaining the necessity of the rate increases. The city will implement a $2 increase for water, a $4 increase for sewer, and a $4 increase for refuse services.
The budget highlights significant infrastructure and community investments, including $750,000 allocated for street and sidewalk improvements. Specific projects include repairing concrete sidewalks, addressing neighborhood walkways, and restoring historic brick sidewalks. Major equipment upgrades are also planned, with $820,000 budgeted for vehicle and equipment replacements. The city will replace critical infrastructure, including a street sweeper and maintenance shop truck, addressing what the City Manager described as “dire safety concerns” for city employees.
In a notable development, Covington will exit the landfill management business, transitioning to a transfer station model in collaboration with Alleghany and Bath counties. During the first week of spring cleanup, the city collected 89 tons of refuse across 59 loads.
The meeting also featured a presentation by Jacob Wright, a member of the Go Virginia Region Two Council, who discussed economic development opportunities. Wright explained the organization’s mission to create higher-paying jobs and support regional economic growth. Go Virginia offers three types of grants: planning grants up to $100,000, implementation grants for regional collaborations, and competitive grants statewide. Wright emphasized the potential for local businesses and educational institutions to benefit from these funding opportunities.
Community events were also highlighted, including the upcoming Agony in the Alleghanies Grand Fondo bike race.
Dressler praised recent community improvements, noting how local youth utilized new and remodeled city facilities during recent events like the high school prom.
The budget maintains the city’s commitment to joint services with Alleghany County, including continued support for the court system, sheriff’s department, and social services. The city will contribute $2.9 million to local schools and $1.5 million for debt service on the Jeter Watson and Edgemont facilities. Dressler was transparent about the financial challenges, particularly in water and sewer services. The city must complete a rate study to meet Virginia Resources Authority requirements and ensure financial stability.
“We’re vested deeply in our community,” Dressler said, acknowledging the potential burden on residents while emphasizing the need for infrastructure maintenance. The council also discussed potential private offers to purchase the city’s water and sewer systems, ultimately rejecting such proposals. Dressler noted the importance of maintaining local control, particularly for emergency services like “theoretically speaking” a busted waterline on Christmas eve that would be taken care of and repaired by the city immediately, whereas a private company may take days to fix.
Looking ahead, the city is exploring potential uses for the soon-to-be-closed Peters Mountain landfill, with preliminary discussions about possible solar energy development. The budget reflects careful economic management, using general fund balance to avoid tax increases and maintaining essential services. Department heads and finance staff were praised for their diligent budget management.
Upcoming community events around the city include a concert at the Hotel Collins Park on Friday, May 9, where the band Phat Pocket will perform. The concert will be kicking off the annual Agony in the Alleghanies Grand Fondo weekend and the annual Youth Day, featuring activities like face painting, a petting zoo, and laser tag.
As Covington continues to develop its infrastructure and economic opportunities, this budget represents a strategic approach to addressing current needs while preparing for future growth.
The next city council meeting is scheduled for May 13, where additional resolutions and community matters will be discussed.
