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“We wanted to make sure our protocols are appropriate.” That drew a response from committee Co-Chair Rep. The Kentucky League of Cities’ plan would set an 5 million cap on state road funds distributed through a state 1948 revenue-sharing formula called the “Fifths Formula”—the formula on which distribution of county road aid and rural secondary road funding is based.Revenue-sharing dollars allocated to local governments above that cap under the proposal would be split between cities and unincorporated areas based on population and road miles, KLC officials told the Interim Joint Committee on Local Government. “We will include all that: the legislative agenda, the formula of Fifths, the way it works with the new proposal… Setting the cap at that level, he said, would hold counties “harmless,” or essentially allow them to continue receiving the funding they already enjoy.Borrowing would require more utilities to increase their rates, which he said could lead to annual water utility rate increases of six to 10 percent over the next 10 years.Inflation, he said, “could exasperate this situation.” Rep.Those funds are provided through the state municipal road aid program, founded in the 1970s, which is based on population and not the Fifths Formula.Christensen said his city of Sadieville had to use around 13 percent of its general fund dollars to cover street work last fiscal year.Chaney said there is no set percentage proposed—only a system that he said would hopefully, in time, be “more fair” to cities. “64.2 percent of that new money above 5 million would still go to counties and 35.8 percent would go to cities, instead of (the current) 18 percent.So no, we’re not here asking the General Assembly to give us 100 percent of funds—but there’s no set percentage at all.” KLC President and Sadieville Mayor Claude Christensen said Kentucky cities spend around 0 million a year on construction and maintenance of city streets, yet receive less than million in state road aid.
After water safety violations were revealed in Flint, MI, Goodmann said a state lead working group is reviewing Kentucky’s lead and copper protocols, although he clarified that the state’s public water systems have “a very good compliance record.” “I don’t have any desire to sit in front of this group and try to explain a Flint situation in Kentucky,” said Goodmann.
“People are buying appliances and fixtures that use a lot less water…
So you have no growth in customer base and a decline per capita in consumption.” The solution is for utilities to receive grants or borrow money to cover infrastructure maintenance and operations, said Goodmann.
Mc Lain explained additional considerations for transportation P3s includes, but is not limited to, compliance with federal requirements and investment-grade credit ratings.
The attorneys also explained that approved P3s must be part of competitive negotiation—meaning the contract will be awarded to a “responsible and responsive” party, per the handout.