HOPKINSVILLE, KY (CHRISTIAN COUNTY NOW) – Hopkinsville’s Chief Financial Officer Melissa Clayton presented the monthly financial report to the city council, which sparked discussion about how much unassigned cash the city is holding on to.

For the month of May, the city had 44% in unassigned cash totaling around $20.6 million. This time last year they were at 44.6%, which equates to $19.4 million. Clayton explained that May generally has the highest percentage in their unassigned cash fund since June and July are heavy expenditure months. This percentage is expected to drop to around 35% in the next couple of months.

Council discusses alternate uses for cash

After questioning by Councilmember Clayton Sumner, she specified that a local municipal order mandates that the city has at least 20% in unassigned cash, and it is recommended they stay at 25%. Sumner suggested that this money could be used to better serve the city since they have over double the amount of unassigned cash than is required.

“Roads are falling apart, sidewalks are falling apart…when are we going to start either lowering taxes on people or start spending the money instead of creating another savings account,” said Councilmember Sumner during the meeting. This talk comes after the city underwent departmental cuts to accommodate for low revenue.

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He suggested that the council raises the mandated unassigned cash value if the city is going to continue maintaining such a high percentage. In response, Clayton said, “Our lowest month is the month you have to measure off of. I would not recommend spending more money than what our lowest month is showing.”

She added that their lowest month is usually September, which is when the fund feels the impact of bills that were paid in July. Even at the average lowest point, unassigned cash does not drop below 35%.

Future Funding Committee comes into play

On the agenda for the meeting, the council approved the continuation of the Future Funding Committee, which makes recommendations to the council in regard to funding and budgetary issues. Councilmember Chuck Crabtree suggested that this topic of unassigned cash should be allocated to the committee to allow them to deep dive into how the money is best used.

Crabtree said additional funds could potentially be utilized for flood mitigation and road improvements. Mayor James R. Knight also brought up that Hopkinsville Public Works is anticipated to see budget cuts due to new legislation regarding Municipal Road Aid Funds.

“I like having the 44% going into June and July, but there is some money I feel like we could budget and still stay above our lowest percentage,” said Clayton, adding that it is ultimately up to the council to decide.

As extended during the city council meeting, the renewed Future Funding Committee consists of seven councilmembers. Mayor Knight explained the need for the committee, saying that it gives them a chance to talk about the money before the discussion moves to the committee of the whole and council meeting. Crabtree added that having a separate committee allows them to go through more details.

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