Saturday, June 26, 1999
Mayor vs. council disputes derail Ludlow budget
BY RAY SCHAEFER
Enquirer Contributor
LUDLOW — There will be no operating budget in Ludlow when the new fiscal year starts Thursday.
Instead, city council will begin budget hearings July 8. The police and public works departments will have to submit figures by Friday, and other departments will turn in their proposals later in the month.
The Kenton County city of 4,736 will be getting some outside help, too. Covington attorney Robert Carran, whom the city hired this month for advice on budget matters, has asked a representative from the Kentucky League of Cities to oversee the process.
“We're trying to get things straightened out,” Councilman Ben Cloud said. “We're looking at it close.”
Mayor Tom Stacy submitted a budget document two weeks ago, but Mr. Carran said Thursday he did not know whether it met legal requirements.
The document shows just over $1.7 million of expected revenues and just under $1.9 million in expenditures. Mr. Stacy did not attend Thursday's council meeting and could not be reached for comment Friday.
Councilwoman Sharon Dietz said the trouble the city is having stems from conflict between the council and Mr. Stacy.
There have been several disputes:
• A February audit, conducted after an open records request by The Kentucky En quirer, addressed questions concerning an $18,000 check to the fire department for equipment purchases.
City officials said City Administrator Mike Moehlman authorized the check. Auditors determined the payment did not violate the city's budget ordinance.
• A grand jury subpoenaed Mr. Stacy, ordering him to produce all pertinent documents relating to the city's dealings with the fire department between July 1, 1997, and Dec. 31, 1998.
• This month, Miss Dietz asked Ludlow's ethics board to repeal the ordinance to hire Mr. Carran at a cost of $100 per hour up to $5,000. She said the vote was based on discussions at a illegal secret meeting.
Mr. Stacy eventually vetoed the ordinance, but on June 12 council overrode the veto.
Miss Dietz said the disputes make the city look bad.
“I think that's been evident since the first of the year, not on my part,” she said.
Mr. Carran said he hoped it would take three or four meetings for council to put together and approve a budget, but he said the city would still function in the meantime.
“The council has authorized salaries and bills be paid until a budget is prepared,” he said.
City Clerk Richard Abney said the current budget calls for revenues of just under $2.1 million, nearly the same in expenditures and reserves of just over $845,000.
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