Oct. 17, 2012 —
Auditor Hatchett, however, determined that this provision does not apply to Olive Hill, because rate increases directly imply that the public utility company does not have profits or extra funds to contribute to the general fund.
“While the Utility Fund continues to subsidize the General Fund with transfers, the necessity for utility rate increases clearly illustrates that excess funds do not exist. Therefore, the transfers are contrary to KRS 96.200 and an opinion of Kentucky’s highest court.”
During last Monday’s special meeting regarding police salaries, Council member Linda Lowe cited concerns with any potential budget increases that might arise from a pay bump, stating that the city commonly has had to transfer money, “...sometimes as much as $50,000,” to cover budget deficits.
Also, City Clerk Cheri James is quoted in a Journal-Times article from 2007 as saying that she “...could generate $60,000 from the electric department” to offset a shortfall in the budget.