The city of Covington is close to finalizing next fiscal year’s budget, which goes into effect July 1. Officials are budgeting for higher cost of living and infrastructure improvements using the current year’s revenue and federal funds.
Budget Director Joe Ewald said at Tuesday’s caucus meeting the city had about $2.3 million more revenue than expected this current fiscal year, while expenses were almost $1 million more than what was budgeted.
Next year’s budget shows about $84 million in expenses from the city’s general fund — an increase of about $11 million over this fiscal year’s budget.
Where revenue is coming from — and how the city will spend it
Covington earns a lot of its revenue — about 40% — from payroll taxes, as well as insurance premiums and property taxes. Next year’s proposed budget also incorporates about $3.3 million rolled over from this year.
Some of that is extra revenue, while another part is re-allocating about $1.9 million from the American Rescue Plan Act that was not used this year but has to be spent by the end of 2026.
“What it really allowed us to do is, we had some [American Rescue Plan Act] funds transferred into the general fund as revenue replacement,” Ewald told city commissioners.
The city is adding a new external affairs team, including a marketing specialist, in hopes of driving state and federal investment into Covington. They are also adding a revitalization manager in the city’s Economic Development Department. Personnel costs make up about 85% of the city’s expenses.
“We have $1.3 million in cost of living increases,” Ewald said. “We have half a million dollars in salary adjustment.”
Officials have also budgeted for capital projects, which include community development and investments in the police and fire department. Ewald said that includes $40,000 for the South Covington dog park. “Finally,” he said.
The city has also funded the Community Paramedicine program, whose trial ended after the original grant from St. Elizabeth Healthcare expired. They are also investing in a drone first responder program within the police department.
“All of our city infrastructure needs work — like everybody’s city infrastructure,” Ewald said. “So we had the opportunity to fund that additionally, and we took that.”
About $2 million will go to road resurfacing and improvements. Costs are also going towards the new city hall building, which is slated to open later this year.
“There are a lot of additional things in here that are absolutely necessary, including facilities maintenance for the new city building,” Ewald said.
The Board of Commissioners is expected to vote at its meeting next week on whether to adopt the current budget plan for next fiscal year.
Read More
