Covington council previews 2026 budget, asks staff to prepare property‑tax ordinance with 1% levy increase

Covington city finance staff presented a multi‑year 2026 budget forecast on Oct. 28 and the City Council directed staff to prepare property‑tax ordinances reflecting a 1% levy increase (plus new construction) for consideration at the council’s Nov. 12 public hearing.

The forecast, delivered by Casey (finance staff), shows an estimated general fund ending balance of about $20.15 million for 2026 but projects that the city will draw down reserves and enter a negative unassigned fund balance by 2031 if current decision cards and ongoing expenditures are maintained. "So that's kinda what the general fund looks like with those additional adds," Casey said while summarizing the longer‑range outlook.

City staff walked council through revenue assumptions — sales taxes held flat for 2025–26 with a 4% inflator in later years, property taxes modeled as the 1% increase plus new construction, and a conservative approach to a new RBNO line projected at $2 million for 2025. Staff also reviewed reserve designations including the aquatic and debt service reserves, HB 1590 and HB 1406 allocations, and a Jenkins Creek Trail transfer that…