COVINGTON, Ky. — The city's proposed Fiscal Year 2027 budget, totaling $84 million in the General Fund, represents an $11 million increase over the current fiscal year, driven by stronger-than-expected tax revenues from payroll, insurance premiums and property taxes.

The budget, currently under review by the Board of Commissioners and set to take effect in July, emphasizes balancing fiscal responsibility with long-term community investments across infrastructure, public safety, economic development, parks and recreation.

Among the major allocations, the city has dedicated $2.2 million for road resurfacing projects citywide and $720,000 for heavy-duty trucks and snow equipment to support public works operations. An additional $550,000 will fund ambulance refurbishments as the city continues to modernize emergency response capabilities.

City Manager Sharmili Reddy, the first woman to lead Covington's administration, emphasized the city's dual focus on core services and strategic planning. "This budget reflects our commitment to operating efficiently while continuing to invest in the things that matter most to our residents," Reddy said. "We are focused on maintaining strong core services and programs that improve quality of life, while making strategic investments to responsibly plan for the future."

The budget includes more than $650,000 for improvements to Devou Park's trails, facilities and programming, along with $300,000 in support for small businesses and entrepreneurs. The city will allocate $150,000 to address vacant and abandoned buildings, a continuing effort to revitalize neighborhoods.

Public health and safety initiatives include $90,000 to expand the city's community paramedicine pilot program, which provides medical services to underserved residents while reducing unnecessary 911 calls. The budget also sets aside $75,000 for a drone first-responder program and $50,000 for Covington Recreation Commission programming in partnership with Covington Independent Public Schools.

Community amenities receive attention as well, with $40,000 dedicated to constructing the South Covington Dog Park. The city also earmarked nearly $3.3 million carried over from the current fiscal year, including federal American Rescue Plan Act funds that must be expended by the end of 2026.

The budget approval comes as Covington navigates major transformation projects. The city is investing more than $100 million in the Covington Central Riverfront project, a 23-acre mixed-use development on the former IRS site, and received $4.5 million in federal funding for riverfront infrastructure. Additionally, the Brent Spence Bridge Corridor Project is moving toward construction with state and federal support.