Employees will see a one-time bonus and grant projects will receive extra funds after the City of Covington received sales tax revenue from the audit of a local business.
City officials said they didn't know which business had been audited, but it resulted in the city receiving $112,000.
Tuesday, the finance and administration committee decided $39,202 should be given in employee bonuses.
"Our city employees have gone without a raise or bonus for two budget cycles," said mayor David Gordon. "I have been looking at whether or not we could do a bonus during this budget year prior to this sales tax report."
Each municipal employee will receive a net bonus of $250. The city will pay the Social Security and Medicare taxes.
"I applaud the mayor for thinking of this," alderwoman Minnie Bommer said. "Our employees deserve anything you can do."
Additionally, Gordon asked for the remaining balance to be allocated toward the completion of several local grant projects.
"I'm hopeful we won't need all of the balance, though," Gordon said.
The funds will help complete the bridge replacement on South Main Street, funded by a 2010 CDBG disaster grant following the flooding that year.
"We were awarded the grant that year and there is a lengthy process we have to go through before we can put it out for bid," the mayor said. "It's 2014 and we still don't have the authorization to go out for bid yet."
Gordon said this project, as well as a project that would construct a cover for the city pool and a walking trail, will likely fall short of funding.
"We have been able to reduce the costs by getting the (Tennessee Department of Energy and Conservation) to agree to some changes to their requirements, however it is likely funds will not be adequate."
Gordon said costs for these projects has increased as the economy has become stronger. He believes the city will be an estimated $45,000 short for the bridge project and up to $30,000 short on the recreation fund projects.
A total $84,000 was set aside for completion of these projects.