Covington may become the latest governmental body in Northern Kentucky to create a Transportation Improvement District.
On Oct. 14, the Covington City Commission conducted a first reading of an ordinance to establish a Transportation Improvement District within the city’s boundaries.
In essence, TIDs are financial tools created to pool funds from multiple sources and allocate them to infrastructure projects. The districts can use these funds for construction, property purchases, demolition or removal work, site prep, equipment, communication infrastructure, financing costs, studies, and professional services.
During a caucus meeting last week, City Solicitor Frank Schultz outlined the rationale for establishing a TID in the city.
“We believe that creating this board, even if not necessarily running it actively, it might give us future funding opportunities through the state,” he said.
Covington may become the second Northern Kentucky municipality, after Florence, to establish a TID. Boone County was the first county in Kentucky to establish a TID in February 2024, with Kenton County following not long after. TIDs are more common in Ohio. Within the Greater Cincinnati area, Warren, Butler, Clermont, and Hamilton counties each have their own.
The TID’s governing board needs to adopt bylaws, subject to commission approval, to steer its operations and decision-making. To approve projects, the board must hold a public meeting and publish a notice to address community questions. After the board grants project approval, final consent is needed from the city’s governing body, which is the commission.
If the ordinance passes, Covington’s next step would be for the commission to appoint a governing board of trustees for the district, as required by law. The board of trustees must include five voting members and one non-voting member appointed by the Kenton County Planning Commission.
Two of the voting members must be part of the local chamber of commerce or a countywide business group. All members must be residents of Covington.
To ensure continuity in the initial appointments, members’ terms will be staggered: two members will serve four-year terms, one will serve a three-year term, another a two-year term, and one a one-year term.
The non-voting member, appointed by the Kenton County Planning Commission, will also serve a four-year term. Future appointments will follow the same nomination and confirmation process, and board members may be removed by the Mayor with the Commission’s approval.
Another requirement is that the board must submit semiannual reports detailing the district’s activities and financial status. These reports should include updates on ongoing and completed projects, financial statements showing revenues, expenditures, and balances, information on public-private and intergovernmental partnerships, recommendations for future transportation initiatives, and any challenges or notable developments.
Covington Mayor Ron Washington urged residents to review the ordinance, which can be found on the city’s website.
“I encourage the public to look at the ordinance related to the TID, and if you have any comments or questions or concerns, please reach out to the members (of the commission),” he said.
A second reading of the ordinance is scheduled for the commission’s next legislative meeting on Oct. 28.
