Hopkinsville finance report: payroll tax shortfall, business licenses down, March shows a positive month but pressure remains

Hopkinsville — City finance staff reported mixed March results to the Hopkinsville City Council on April 21, flagging revenue shortfalls that will shape budget decisions ahead of the May 1 deadline.

Melissa Clayton delivered the monthly financial presentation and said "three of the big four" revenue sources are below budget, leaving the city on track to "show a deficit this year." Clayton reported approximately $11,500 in interfund transfers in March (including $7,500 split between police and fire and a $4,000 Rotary auction sponsorship), bringing year-to-date interfund transfers to about $71,009. She said payroll tax revenue year-to-date is roughly $16 million versus a roughly $17 million budget, putting payroll about 2.9% under budget for the year. Business license receipts were down by about $300,000, and insurance premium tax was down about 2.2% compared with the prior year.

Clayton said the month of March produced a positive revenue-over-expenses result of $811,452; year-to-date, the city was about $493,005 in positive revenue over expenses. She cautioned that municipal road aid and capital funds show pressures: MRA was negative by about $82,006 and capital expenses exceed revenue by roughly $82,001. The city's unassigned cash balance was reported at about $17.0 million, approximately 36.9% of the adjusted operating budget.

Council member Clayton Sumner asked whether the general fund cash reserve had stabilized; Clayton replied, "We are leveled out," noting department heads have cut spending to help hold costs down.

Mayor Knight reminded members that budget decisions will continue and the council is working toward readiness for May 1 at 9 a.m.

The figures presented contained rounding and transcription artifacts in the oral report; council requested continued review and confirmed budget deliberations will continue in the coming weeks.