HOPKINSVILLE, KY (CHRISTIAN COUNTY NOW) – As the fiscal year hits the halfway point, revenue that the City of Hopkinsville acquires from businesses is lower than anticipated.

During the Jan. 20 Hopkinsville City Council meeting, City CFO Melissa Clayton gave a financial report that covered outgoing expenses and incoming revenue for the month of December. This monthly report revealed that six months into the fiscal year, the city has had a 4.2% decrease in payroll tax revenue, and a 5.6% decrease in business licenses revenue as compared to last fiscal year.

Payroll tax comparison

  • December 2024: $11.4 million collected.
  • December 2025: $10.9 million collected.

Business licenses comparison

  • December 2024: $947,525 (37.2% of budget)
  • December 2025: $894,298 (18% of budget)

Possible causes for decrease, overall budget in good shape

“We are doing a lot to make sure the city is receiving everything that we are supposed to receive on the license front,” said Clayton. She explained that over the last three years, revenue from business licenses has fluctuated unpredictably between $2-$4 million.

She explained that the deadline for paying for business licenses was Nov. 3, and the anticipated revenue did not come in. After questioning from a councilmember, Clayton said that the decrease in revenue may be credited to the high number of businesses that have closed. She assured the council that there is city staff in place that is dedicated to making sure businesses are not avoiding taxes and are operating legally with a license.

“We are one of the few cities who do a 100% audit of every business in town,” said Clayton to the council. “Every year when you come to get your business license, you bring in a copy of your taxes, and you bring in your net profit return and then we audit that and we make sure you pay what you’re supposed to pay.”

Property tax collection on the other hand is exceeding the projected revenue and is higher than last fiscal year. $5.5 million has been collected so far which is already 94.1% of what is expected to come in. Overall, midway through the fiscal year the city’s General Fund is operating at a positive balance with $28.5 million in revenue collected so far and $27 million in expenses.

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