Dec. 10—Budget woes continue for the Lake Cumberland Regional Airport, judging by discussion during Tuesday's meeting of Pulaski County Fiscal Court.
Judge-Executive Steve Kelley presented a bond payment bill which the airport had turned in for approval prior to what would have been the November 24 meeting, which was cancelled after Governor Andy Beshear announced the latest COVID-19 restrictions.
While Judge Kelley noted that the county's name is attached to the bond — making Fiscal Court ultimately responsible — airport officials have also failed to meet their obligation with the county regarding health insurance for its employees. "We've got to decide how to move forward with paying this bond payment but also holding them accountable for the agreement that they have made with us regarding their health insurance."
County Treasurer Joan Isaacs reported that a total of $40,041.25 in principle and interest was due. The bond had been used to fund construction of T-hangars for rental revenue.
In regard to the health insurance, Isaacs said the airport board is in arrears "to the tune of $70,000" over the course of about a year. She asked the court for permission to send a letter advising the airport board that the insurance would be terminated if they cannot become current in their reimbursement as well as taking reimbursement for the bond payment from future quarterly disbursements.
District 4 Magistrate Mark Ranshaw expressed concern over the amount owed, in light of a budget increase from the county as well as $30,000 received in CARES funding. "I would just like to see what's going on," he said.
Judge Kelley said he would ask airport officials to present their financial statements for a later meeting. "I don't know that we can invite them to court any time soon," he said in reference to the pandemic, "but I would like a report given."
District 1 Magistrate Mike Strunk made the motion to make the bond payment with a second from Ranshaw.
This is not the first time the hangar bond has been an issue between the county and airport board. Airport manager Kellie Baker first approached Fiscal Court about covering the bond back in October 2016.
Years ago, the county used to contribute $220,000 to the airport from occupational tax revenues but that allocation was reduced to $140,000 prior to the Kelley administration. In Judge Kelley's tenure, the amount was further reduced to $120,000 until a 2019 agreement with the City of Somerset, which co-owns the airport with the county, had each government paying $125,000 for a total of $250,000.
The COVID-19 pandemic has further strained all coffers, although Isaacs advised magistrates later in the meeting that the county had managed to keep up with expenses so far.
"We did budget low this year due to knowing the financial straits that the whole nation was in," she said. "It's still ongoing. I do expect this next quarter in our occupational tax to take a hit...but all I can do is cross my fingers and hope [it won't]."
In other business, Fiscal Court:
—accepted an $8,700 bid from Southern Petroleum to upgrade fuel center software.
—approved the reappointment of Claude Acton to the Woodstock Community Center board for a four-year term and the appointment of Tina Hamm to the SPEDA ( Somerset Pulaski Economic Development Authority) board.
—approved speed limit changes for Jack Baker Road, Jack's Lane, Allen's Way and Larry's Lane — all in District 4 and set to 15 mph.
—approved a quitclaim deed to Nancy Merrick for a tract along Ky. 914 and Slate Branch Road. Back in October, the court had authorized an appraisal of the property in order to sell it but, as it turned out, the property is a former road bed which under law reverts back to the original property owners. County Attorney Martin Hatfield noted Tuesday that the appraisal would not be necessary.
—approved a $500,000 budget transfer from the Grant Fund to the Road Fund.
The next regular meeting of Pulaski County Fiscal Court will be held January 12 at 10 a.m. In keeping with annual tradition, county officials canceled the second December meeting due to its proximity to Christmas.
___
(c)2020 the Commonwealth Journal (Somerset, Ky.)
Visit the Commonwealth Journal (Somerset, Ky.) at somerset-kentucky.com
Distributed by Tribune Content Agency, LLC.
