COVINGTON, Ga. — A $157.4 million spending plan for fiscal year 2023 for the city of Covington was approved Monday during a special called meeting.

Council members approved the budget with a 4-2 vote (East Ward Councilman Don Floyd and West Ward Councilman Kenneth Morgan opposed). The budget is approximately $15 million more than the initial FY2022 budget passed one year ago.

Estimated revenues for the new year are expected to total $158,191,188, while expenditures will total $157,416,464, according to budget documents. Approximately $772,353 would be left earmarked for the General Fund Contingency fund.

For FY2022, the budget was initially $142 million, and $128 million for FY2021. The FY2022 budget has since been amended through the year and currently totals $144,369,546. Compared to the proposed FY2023 budget, that’s just more than a $13 million increase from the previous year.

“The majority of the budget increase [for FY2023] relates to rising power and natural gas costs,” City Manager Tres Thomas said. “The long term effects of high inflation are unknown; however, the city will monitor the budget and maintain fiscal responsibility.”

Increased power costs for electricity and natural gas amount to approximately $9.7 million in the approved budget. The city also established a telecommunications fund totaling $2.2 million. In addition, the budget accounted for an increase in medical insurance costs of $500,000 and in hotel/motel tax of $450,000.

As approved, the police department will operate with an increased budget of $9.5 million for fiscal year 2023, and the fire department will operate on a $6.6 million budget — increases for both departments from the previous year. The street department’s new budget is $2.2 million.

Other notable expense totals by department:

• Planning & Zoning: $1.5 million

• Engineering: $1.4 million

• Marketing/Communications: $1.1 million  

• Administration: $1 million

• Human Resources: $972,414

• Elected Officials: $582,303

• City Manager’s Office: $578,858

• City Clerk’s Office: $210,197

“In the FY22-23 budget, the city manager’s office and city clerk’s office were separated from the administration department,” Thomas said. “This allows for more accurate cost allocations to the enterprise funds and reflects the Uniform Chart of Account adopted by the Georgia Department of Community Affairs.”

Per budget documents, the city anticipates approximately $5.4 million in general property tax revenue and $1.5 million in motor vehicle ad valorem tax revenue. Local option sales tax revenues were estimated to be $3.5 million. The city also anticipated collecting just more than $1 million in insurance premium taxes revenue.

The new fiscal year begins July 1.