Question 1

Where does municipal finance data come from?

Accepted Answer

Kentucky cities file Uniform Financial Information Reports (UFIRs) with the KY Department for Local Government, but only blank submission templates are published. For Kentucky municipalities we surface audits from the KY Auditor of Public Accounts plus data from individual city audited annual reports where available.

Question 2

What are the main revenue sources for a municipality?

Accepted Answer

Most Kentucky cities rely on occupational license taxes (a local payroll/net-profits tax unique to KY), property taxes, insurance premium taxes, utility franchise fees, and charges for services. KY is one of the few states where occupational taxes are the largest single revenue source for many cities.

Question 3

What is a General Fund and why does it matter?

Accepted Answer

The General Fund is the municipality's primary operating fund. It covers core services like police, fire, public works, and administration. A healthy General Fund balance (typically 25-50% of annual expenditures) indicates the town can handle unexpected expenses without raising taxes or cutting services.

Question 4

How current is this financial data?

Accepted Answer

KY Auditor of Public Accounts and city-published audit data typically lags 12-18 months behind the current fiscal year (which ends June 30 for most Kentucky cities). Statewide bulk revenue data is not centrally published.

Covington, KY

Covington Municipal Budget

Finances — FY 2022