HOPKINSVILLE, KY (CHRISTIAN COUNTY NOW) – Budget talks dominated the latest Hopkinsville City Council meeting as they were presented the final numbers for the 2025-26 fiscal year and approved several budget amendments for the new fiscal year.
The City of Hopkinsville ended the fiscal year with positive revenue over expenses, with Chief Financial Officer Melissa Clayton presenting data from the last 12 months to the city council. Despite consistent revenue challenges, the city ended the fiscal year with a revenue surplus of $665,299.
| Fiscal year 2025-26 | General fund balance |
|---|---|
| Collected revenue | $54,802,087 |
| Actual expenses | ($53,731,785) |
| Encumbrances | ($722,907) |
| Revenue over expenses & encumbrances | $665,299 |
Most reliable revenue sources for Hopkinsville
Throughout the year, Clayton reported that not enough revenue was coming in. During the July 21 report, she disclosed that payroll tax ultimately came in with less money than they budgeted for, with $21.9 million collected and $22.8 million budgeted. This marks a 2.72% decrease in equivalent payroll as compared to last fiscal year.
Only 74.3% of revenue budgeted from business licenses was collected this fiscal year, coming in at a significant shortfall. With revenue almost equal to what was budgeted last fiscal year, $3.7 million was collected with $5.1 million budgeted.
However, revenue from property taxes came in above budget, with 104.7% of budgeted funds collected. This is a 9.91% increase from last fiscal year, which Clayton said made up for other lacking areas. She added that this was the highest quarter the city has ever had with insurance premium taxes, with revenue also exceeding what was budgeted.
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Where surplus funds go, status of other funds for fiscal year
The city’s revenue surplus will be split between various funds for the new fiscal year that started in July. Half of the surplus will go into the capital reserve fund, 20% will go to the building maintenance reserve fund, and 5% goes to the health trust fund, leaving 25% in the general fund. The revenue surplus will be distributed as follows.
| Capital equipment replacement reserve | $332,650 |
| Building maintenance reserve | $133,060 |
| Health trust fund | $33,265 |
| General fund reserve | $166,324 |
The municipal road aid fund and capital fund for the City of Hopkinsville both ended with positive revenue, with the remaining balance in those funds rolling over into the new fiscal year.
All departments within the city ended under budget as well, with only 91% of the general fund used. After dividing that remaining balance into reserve funds, the city is left with $17.6 million in unassigned cash for the new fiscal year
Last minute budget ammendments approved
During the July 21 meeting, the council was also presented with several budget amendments for the new fiscal year via two ordinances. Councilmember Travis Martin pointed out that these amendments were presented to them just minutes before the meeting, stating that they did not have time to be properly informed.
The Future Funding Committee forwarded a proposed amendment to the 2026-27 capital budget that would include a $50,000 expense to purchase a generator for Christian County Weather Spotters. Funds were initially requested in part through the Hoptown Helps grant program, but previous discussion among councilmembers after severe weather determined that it was in the interest of public safety to absorb the full expense as soon as possible.
Councilmember Travis Martin and Jason Bell both voted against the $50,000 expense, with Brandi Stallons, Donald Marsh, Chuck Crabtree, Clayton Sumner, Michael Velez, Elizabeth Draude and Marie Hughes voting in favor.
Additional operational budget amendments were made via ordinance to accommodate contract negotiations between CDS and the city. Other amendments were also included to adjust the pay schedule for a new building codes department and add funds to public works for equipment. Once again, Martin and Bell were the only councilmembers who voted against the ordinance.
Both budget amendment ordinances passed, and a special called meeting was announced for July 23 for a second reading.
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