City council favors low tax rate for Hopkinsville, moves forward with entertainment district

The Hopkinsville City Council chose to go with a compensating property tax rate, giving the city the lowest tax rate in over 25 years, and the second vote passed allowing the council to move forward in establishing an Entertainment District Center downtown.

By Daynnah Carmona August 21, 2024 10:56 am

Christian County NowHopkinsville Municipal Center and city council chambers. May 7, 2024 (Daynnah Carmona)

HOPKINSVILLE, KY (CHRISTIAN COUNTY NOW) – The Hopkinsville City Council chose to go with a compensating property tax rate, giving the city the lowest tax rate in over 25 years, and the second vote passed allowing the council to move forward in establishing an Entertainment District Center downtown.

Hopkinsville Chief Financial Officer Melissa Clayton explained that last fiscal year was the lowest property tax rate for the city since 1999 at 22.3 cents per $100. In the new fiscal year, property assessments increased by almost $200 million, with $42 million of new growth with housing and industrial developments. With this fiscal year’s property assessments reaching $2,384,012,916.00, Clayton recommended two options for tax rates. The proposed compensating rate would be 20.9 cents, and the maximum tax rate option at 4% increase of the compensating rate at 21. 8 cents.

Council member Chuck Crabtree suggested they go with the compensating tax rate, created the lowest rate possible saying, “I think we ought to do something for the citizens.”

“We should think about the possibility of us tightening our belts or us really working more frugally,” added council member Donald Marsh. “Especially in the economy that we are living with the inflation rate that’s going on right now…think about the citizens and give them help.”

The compensating tax rate of 20.9 cents per $100 passed with a unanimous vote by the council. Clayton also recommended they adopt the same rates as of last year of 23.9 cents on personal property and 25.1 cents on motor vehicles.

Entertainment District Center

The second vote for the ordinance establishing an Entertainment District Center unanimously passed as well on Aug. 20. Creating an EDC would allow people to walk around public spaces with alcoholic beverages purchased at designated downtown restaurants. The request will now be sent to the state for approval, where downtown will eventually be evaluated.

The EDC was first presented to the council during the Aug. 6 meeting. In summary, the ordinance states that on Saturday’s and Sunday’s between 11 a.m. and 10 p.m., patrons could leave the premises of a participating business with an alcoholic beverage and drink it while walking around downtown. The city will be responsible for providing EDC branded cups along with adequate security to ensure that public streets and pedestrians are kept safe. Patrons will not be permitted to take drinks outside of the EDC boundaries, and drinks outside the boundary cannot be brought in.

The EDC will cover a large section of downtown, stretching between areas of South Virginia Street and South Main Street. Every eligible business in the boundary will have the opportunity to participate in the EDC, including the Alhambra Theater, Hopkinsville Bourbon Society, Hopkinsville Brewing Company, and the OddFellows Building. Founders Square is excluded from designated common areas, unless there is a special event occurring.

Next steps and detailed discussions about safety, participating businesses, and regulations will continue at city council meetings pending approval from the state.