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Hopkinsville reports 40.1% unassigned cash, finance staff says city remains above reserve standard
Summary
City finance staff reviewed January financials, reporting an unassigned cash balance equal to 40.1% of the adjusted operating budget, positive year-to-date revenue over expenses, and departmental expense rates above the nominal monthly target because January included a third pay period.
Amy Clayton, city finance staff, reported the City of Hopkinsville's January financial statement and said the city's unassigned cash balance was 40.1% of the adjusted operating budget.
Clayton told the Hopkinsville City Council that January included two interfund transfers totaling $11,000—$4,000 to the Salvation Army for the warming shelter and $7,000 to information technology for audio-visual work in the council chamber—and that year-to-date general fund revenue exceeded expenses by $1,607,901. She reported year-to-date payroll tax, property tax and insurance-premium-tax collections and gave departmental expense rates through seven months.
The report matters because the unassigned cash balance is a key measure of reserve health. Clayton said the city's unassigned cash at Jan. 31 was $17,493,592, or 40.1% of the adjusted operating budget, compared with 39.1% at the same point last year. She said the city's municipal order sets a lower limit for reserves around 20—25% and that the city aims to keep roughly three months of operating reserves.
During a brief question-and-answer period, a council member asked what percentage of cash the city held. "Our unassigned cash is at 40%," Clayton replied. When asked whether the city would remain at that level through the year, she said, "I don't think we'll be at 40% by the end of the year." She estimated three months' reserve would be "right about 13 point some million" and offered to provide the exact comparison to last year on request.
Clayton also presented departmental spending as a percent of budget through seven months: many departments exceeded the 58.3% benchmark because January was a third-pay month. She said information technology was at 63.8%, police 60.8%, EMS 68.6% and the municipal road aid fund expenses were at 74.1% through the same period.
She reported the city's capital fund had positive revenue over expenses at the reporting date and that investment market value showed a modest unrealized gain for the month.
Council members did not take formal action on the report. Clayton closed by offering to provide follow-up figures and answered a final question about last year's reserve level before the council moved on to other business.
