By Ryan Clark
NKyTribune reporter
When Muhammed Owusu learned of Covington’s financial issues, he may have had second thoughts about taking his current job.
“I’m going back to Richmond,” he joked. “It’s too much.”
Last spring, he was hired as Covington’s new finance director, a crucial hire considering the past decade’s near-bankruptcy, embezzlement scandal and audit. Commissioners have made a priority this year of financial management — and the transparency of it.
Which brings us to Owusu, who has 30 years of state and local government experience. He joked Tuesday night at the city’s regularly scheduled legislative meeting that maybe he should’ve walked away rather than take this latest challenge.
He revealed that during his first four months, the city has undergone a transformation to make it more financially stable and institutionalize the recommendations made in the city’s audit.
Owusu started his presentation talking about the hiring of more staff, including a collection manager, a procurement officer and two additional tax auditors to maximize the city’s collection efforts. On Monday, 600 letters were sent out to collect taxes, he said.
When Owusu came on board, there was a financial staff of just seven.
“We were literally keeping the lights on,” he said. “There was no strategic thinking.”
In that time the city has made a policy for investments, made all city bank accounts interest-bearing accounts and is preparing to close most of the 30 bank accounts the city currently maintains to achieve cost savings.
Owusu says they have invested about $2 million of the city’s reserves in CDs with maturities ranging from six months to five years and an average interest rate of 2.38 percent.
The next steps include:
- Monthly and quarterly financial reports to the Commission
- Debt policy
- Procurement policy
- Rainy Day Fund policy
- Multi-year financial planning model
- Explore bond rating increase(s) from the three rating agencies
The City Audit Committee will be meeting quarterly to continue to provide guidance.
“You guys are making a lot of positive strides,” said Commissioner Tim Downing.
“We’re trying to create a solid foundation for the city in terms of finances,” Owusu said.
Waste collection changes adopted
Say goodbye to the green stickers. Commissioners did Tuesday night.
Changes to the city’s waste collection policies will eliminate the use of the green stickers and reduce the amounts of certain fines starting Sept. 10.
The city is eliminating the 12 green stickers given to residents each year, and instead will allow one bulk item to be set out per week.
The city established the program three years ago to help reduce the waste that was sitting on curbs.
“Hopefully, I will see more trash being picked up off of the street,” said Commissioner Michelle Williams.
Also Tuesday:
- Commissioners approved an order allowing the operation of some low-speed vehicles that will give customers free rides around a certain portion of the city.
- Commissioners approved an order authorizing Mayor Joseph U. Meyer to hire Sunesis Construction for the Caroline Avenue Underpass Water Remediation project, for $111,839 payable from infrastructure funds.
- Commissioners approved an order authorizing the Mayor to execute a reimbursement agreement with Sanitation District No. 1 for the Rivercenter Boulevard storm drainage improvements for $48,363.33.
The next regularly scheduled Covington Commission meeting will be a caucus meeting held at 6 p.m., Sept. 4, at the Covington City Hall at 20 West Pike St.
Contact the Northern Kentucky Tribune at news@nkytrib.com