The Covington City Council voted 5-2 on Tuesday to annex the Barkley Parc subdivision Phase II-A on West 21st Avenue into the city.

Phase I, which is already occupied, is in the city limits.

Part of the objection to the annexation of Phase II-A was the C-2 zoning designation, said Councilman Mark Sacco. This zoning will allow businesses that could affect surrounding residential areas, including the streets that empty onto West 21st Avenue and the residential areas of the Barkley Parc subdivision. Sacco said he hopes businesses that may build there will be responsible because they will be building around residential areas.

The commercial designation involves 1.67 acres on U. S. Highway 190 Business, also known as West 21st Avenue.

The residential portion of Phase II involves 17,776 acres and is zoned planned residential development The Covington Planning and Zoning Commission had previously approved the entire Phase II-A development, both commercial and residential.

In other business, the council tabled the public hearing and ordinance addressing the millage rates because the new millage rates have not been released from the assessor’s office, according to City Council President Matt Faust.

The council also passed an ordinance that amended the utility fees in Covington, defining growth management areas and annexations. City utility services outside the city limits will no longer be serviced by the city, and those currently serviced will be notified by certified mail that utility services provided by the city shall be terminated absent annexation into the city. Those affected will have six months to obtain sewer, water and garbage collection services elsewhere or petition to be annexed into the city.

The council also:

• Adopted an ordinance setting the franchise fee at 5 percent to be paid to the city by cable or video service providers in the city. The fee is based on the cable or video service provider’s gross revenue.

• Amended the 2008 budget to appropriate funds for fire retirement. The $255,000 needed will be moved from the general fund to the Municipal Fire Retirement System.

• Announced that meetings and public hearings regarding the 2009 budget will begin next Tuesday at 5:30 p.m. at City Hall. Among the budget proposals for next year is a 4 percent increase in the mayor’s salary to $68,650.