Covington posts steady first-quarter finances; development revenues outpacing expectations

Casey, the city finance presenter, briefed the Covington City Council on the citys first-quarter financial results on June 23.

Key figures: the city has received roughly $130,000 in property taxes so far in 2026 against a levy of $3.4 million; assessed values rose about 4.2% year-over-year; real-estate excise tax (REET) receipts are at about 35.4% of budget for the quarter; development services revenues are at 34.4% of budget, driven by higher valuations in permit categories; and the city holds $49.5 million in cash and investments, including $37.9 million in the Local Government Investment Pool (LGIP).

Casey said the TBD-designated portion of sales tax (CIP reserve) has accumulated about $1.3 million and that public works has a pavement-condition assessment and a five-year plan in development to prioritize those funds. Street impact fees total about $1.88 million and are earmarked for specific CIP projects; park impact fees totaled approximately $575,000 and about half those funds are currently earmarked.

On operating performance, general fund operating revenues are at about 24.6% of budget and expenditures are roughly 18.6%, consistent with seasonal patterns. Development services reported 15 single-family residential permits year-to-date versus 36 the previous year but an increase in other permit categories (a transcript typo corrected in the staff report) drove higher valuation and fee revenue.

The presenter noted that the LGIP yielded about 3.71% in March and externally managed investments averaged a weighted rate of about 4.06%, and that two remaining principal payments on city bonds are expected to be paid off across this year and next. Council asked for follow-up on pavement project timelines and upcoming CIP spending plans.

Casey and staff will return with project-level recommendations and timing for the councils consideration.