In wake of report, local League of Cities reps support organization, but have questions

Two Whitley County leaders who sit on the Kentucky League of Cities Executive Board say their confidence in the organization is not shaken in the wake of an investigative report by the Lexington Herald-Leader Sunday, but say they do plan to ask some questions about spending within the organization in the wake of the article.

Williamsburg Mayor Roddy Harrison and Corbin City Manager Bill Ed Cannon both have similar praise of the non-profit organization, which can claim nearly all of Kentucky’s over 400 cities and municipalities as its members. The Kentucky League of Cities was founded in 1927 by 12 Kentucky cities and provides legal advice, lobbying efforts, training, loan programs and other vital services for cities.

"They do a lot of things for the cities. They oversee quite a bit," said Williamsburg Mayor Roddy Harrison. "My bottom line is, I’m not here to judge anybody on anything. I think you get what you pay for. I have used the League quite a bit since I’ve been Mayor and they are very helpful."

The KLC was the subject of numerous articles in the Herald-Leader’s Sunday edition detailing spending by the organization in the last three years. The articles noted that 18 of the KLCs 83 employees are paid over $100,000 annually, and Executive Director Sylvia Lovely is paid $315,000. The report also detailed what appeared often to be extravagant spending for food, travel expenses and lodging since 2006 by executives, totaling over $300,000. It noted other perks including University of Kentucky football and basketball tickets, Ryder Cup tickets, a box at Churchill Downs and a KLC provided BMW SUV for Lovely.

The city of Williamsburg paid $1,404 in membership dues to the KLC this fiscal year. Dues are based on a formula that takes into account population of member cities. Harrison said he had not read the report, but said the city he serves has benefited from KLC membership by utilizing its insurance program for employees, taking advantage of legal advisors offered to cities and by taking advantage of a loan program that helps cities replenish police vehicles on a regular basis.

"The services we receive from the League of Cities has been outstanding," Harrison said. "They have helped me through a couple of rough times."

Harrison said during a May meeting some KLC members brought up the topic of expenses by organization execs and other staff. He said he is a relative newcomer to the executive board and really had not had time to dig deeply into the inner workings of the organization.

Cannon, who has served on the KLC Executive for over a year, said is deeply concerned about some of the "conflict of interest" issues that the Herald-Leader report uncovered. For instance, numerous credit card charges were to a restaurant owned by Lovely’s husband.

"At the very least we need to look at that," Cannon said. "I was not totally aware of everything that was going on there. Basically, it is a board issue and we need to look at some of those things. I don’t think anybody is going to get killed or hammered or buried, but we need to look over it more closely."

Cannon said he is not so concerned about the executive salaries, and points to the fact that it is studied annually by and outside group and is comparable to executives who oversee similar size companies or organizations. He admits that rules regarding other expenditures may need to be tightened.

"I just think we need to put some more teeth into the guidelines and kind of detail what needs to be done."
Harrison said the KLC’s Executive Board will meet again June 19.

"I’m sure there will be several questions asked about this," he said. "They have always been real open, though. Anybody that wants to know something they always say ‘here it is’ so all they have to do is ask."