by Gabe Bullard on January 23, 2012

Proponents of a merged government in Hardin County hope to put the issue on the ballot this year.

Advocates say combining Elizabethtown, Vine Grove and Radcliffe with Hardin County’s unincorporated areas and other cities would be a boon to economic development. The governments can merge under the same state law that allowed Lexington and Fayette County to consolidate in 1974. (The law that allowed the Louisville-Jefferson County merger applies only to first class cities.)

But, to assuage any concerns from residents, merger proponents are championing legislation in Frankfort that would allow individual cities to opt out of the merger if a majority of residents oppose consolidation. If that happens, the cities would seemingly either fall under the governance of an entity they opposed or exist without a county. Before the public can vote on the matter, officials will have to figure out how an independent city would interact with the merged government that surrounds it.

“At this point, it’s kind of hard to say exactly,” says Hardin County United spokesman Luke Schmidt. “For example, how would emergency medical services be provided? Today, county government provides emergency medical service throughout the county.”

Schmidt says the merger agreement should spell out any questions about independent cities.

“We’d like to have it on the ballot this November,” he says. “This being a presidential election, we’ll have a high turnout of voters to begin with and we think that’s important. But we want to do the plan the right way. If that requires more time and we can’t make it, we’ll push it to the next election.”

He expects the document to be finalized in time to have it on the ballot in November, but says there’s no official deadline, and the vote could happen in a following year.

House Bill 190 and Senate Bill 78 Seek to Assure Communities that the Votes of their Citizens will Count When it Comes to Determining Final Participation in a Unified Government Plan

Elizabethtown, Kentucky (January 6, 2012) – Hardin County United (HCU) today announced that legislation has been filed in both the Kentucky State House of Representatives and the Kentucky State Senate. The companion bills – House Bill 190, introduced by State Representative Jimmie Lee (D-Elizabethtown) and State Representative Tim Moore (R-Elizabethtown), and, Senate Bill 78, introduced by Senator Dennis Parrett (D-Elizabethtown) – are designed to affirm the intent of the majority of voters participating in a community-wide referendum on unified government.

HCU launched its unified government initiative on August 4, 2011. The process, as specified under existing state law, first requires county government along with city governments that wish to participate in the process to pass an ordinance which creates the Unification Review Commission. The Commission, once established, will include between 20 and 40 citizens appointed by the various participating governments. It is the Commission’s responsibility to develop a plan for unified government which will include county government and the participating municipal governments. Once the plan has been completed, it is to be submitted to the voters in the participating jurisdictions for review and approval.

As HCU presented its findings to the community on the potential benefits of unified government, concern was expressed by several elected officials about how an individual community’s vote on unified government would be handled in relation to the votes in the other jurisdictions. In other words, and, hypothetically speaking, if voters in the county and say five of the six Hardin County cities voted to unify, what would happen to the city who’s voters voted not to unify?

“Hardin County United has been clear from the beginning that the intent of the majority of a community’s voters must be respected,” said Hardin Circuit Court Judge Ken Howard, Chairperson of HCU’s Governance Subcommittee. “If a majority of voters in a given city vote no on unification, even though the other jurisdictions vote yes on unification, then it is our view that the community that voted no should be allowed to remain a free-standing community.”

“Existing state law is not as clear as it needs to be on this issue,” said State Representative Jimmie Lee. “The intent of our bill is to clear up any ambiguity that exists in order to provide voters in a given community complete assurance that the majority view on unified government as expressed by the voters in that community will be upheld.”

House Bill 190 and Senate Bill 78 were introduced during the first week of the Regular Session which convened in Frankfort on January 3, 2012. “This is an important next step in HCU’s initiative to bring a plan of unified government to the voters of Hardin County and its cities,” said Luke B. Schmidt, consultant to HCU. “Many good questions have been raised by citizens during our 25+ community presentations on this issue. Most of these questions can’t be answered until the Unification Review Commission is appointed and it drafts its plan, which will be submitted to the voters for their careful review and consideration.”

“I have consulted with local elected officials and believe that new legislation is necessary to clarify existing statutes.  With the passage of this bill, any city council that chooses to approve the establishment of a Unification Review Commission can do so with the confidence that the voters in their respective community will have the final say as to whether they participate in a unified government,” said Representative Tim Moore.  “City Councils will have the authority to allow participation.  And, if the unification process is initiated by their locally elected officials, the majority of voters in a given community will determine the outcome for each community.”

“I look forward to raising this important issue with my colleagues in the Senate,” said State Senator Dennis Parrett. “Voters voting on a plan of unified government need to feel confident that their community’s wishes on the issue will be respected – passage of Senate Bill 78 will make this happen.”

HCU believes that there are four primary benefits to unifying local government in Hardin County, including:

1. The attainment of a new level of clout as Kentucky’s third largest community that will assist the entire community in the creation of new jobs,

2. The ability for the community to speak with one voice and more efficiently target grants and appropriations which will benefit the entire community while improving the community’s standing and stature in Frankfort and Washington, D.C.,

3. Streamlined government which will result in the more efficient delivery of government services to all citizens, and,

4. The achievement of economies of scale which will result in the more efficient use of public resources (tax dollars).

“We view this as positive legislation,” said Schmidt. “This legislation impacts only those communities in Kentucky that are considering unified government and there is no fiscal impact on the Commonwealth – meaning no new taxes will be required in order to implement this legislation.”

More information on HCU’s unified government initiative can be found by visiting HCU’s Web site: www.hcu.lbschmidt.com.

—

Hardin County United (HCU) was established for the purpose of examining the various strategic goals which were established by the Hardin County Vision Project in 2010. The intent of HCU is to prioritize the goals and to develop implementation strategies. HCU’s leadership team includes Hardin County Judge/Executive Harry Berry who chairs the Steering Committee; Hardin County Chamber of Commerce President Brad Richardson, who chairs the Community Development Subcommittee; North Central Education Foundation President/CEO Al Rider, who chairs the Education Subcommittee; and Hardin Circuit Court Judge Ken Howard who chairs the Governance Subcommittee. Luke Schmidt, President of L.B. Schmidt & Associates, LLC, provides management and consulting services to HCU.

In addition to a deeper overlay on the 6,000-foot-long runway, the Elizabethtown Regional Airport at Addington Field is making improvements to its lighting system and its weather service program, said Joe Yates, chairman of the Elizabethtown Airport Board.

Elizabethtown City Council got an intimate look at the changes at the airport during its work session, in which the board and its consultant, Luke Schmidt, updated city officials on an aggressive plan to attract a major airline by the end of the year.

Since revealing its pursuit of a commuter airline service with a connection to a major hub, the airport has rebranded itself and launched millions in upgrades to meet state and federal aviation guidelines, Schmidt said. The airport also is in the process of moving its certification from a general aviation airport to a commercial airport, Yates added.

Schmidt said the airport started dialogs with seven major airlines, but airline mergers, bankruptcies, the economy and rising fuel costs stalled talks in many cases.

One major airline is showing increased interest in expanding to Elizabethtown, though, and hopes are a deal will be finalized by the end of 2011 if not sooner, Schmidt said. The airline could not be revealed for confidentiality purposes.

If a deal is struck, Yates said the airport would approach the Kentucky Department of Aviation and the governor’s office for a state grant to build a passenger terminal, which is expected to cost $3.5 to $4 million and is required to be in place before the airline service can launch. The board wants to launch the service within the next year.

Yates said the airport also will have to provide money upfront for the airline, either by raising $2 million through a travel bank or offering a $2 million guarantee.

Schmidt and Yates said the travel bank is preferred and could be obtained by approaching local businesses to purchase subscriptions to the service. Schmidt said the minimum subscription would be $1,000 and would increase for businesses that travel frequently. As an incentive to subscribe to the service, businesses would have subscription fees reimbursed in full if they utilize the service. Flight costs would be reimbursed upon proof of travel until the amount of the subscription is fully repaid, he added.

“It’s not a donation,” Schmidt said.

The travel bank creates built-in business for the service because most businesses will want to get their money back if they purchase a subscription, he added.

Schmidt said the airline appears to prefer the travel bank method, too, but the guarantee would be needed if the airline rejects the concept. Schmidt said a guaranteed amount was raised for an airline service in Manhattan, Kan., to shore up shortfalls in its first few months of service, when it started turning a profit. The airline has since added several flights to Dallas Fort Worth and Chicago. Schmidt said the work in Kansas to promote the airport, which is located near Fort Riley, is an indicator smaller military markets can be successful.

And the local airport can be even more successful because Fort Knox is larger and the air service market in Elizabethtown dwarfs the market in Manhattan, Schmidt added.

The service would be geared toward military and business flights, Schmidt said, and he projected Fort Knox would have more than 100,000 air trips for trainees in 2012. Flying out of Elizabethtown would be easier and more affordable for the post, he added.

“We’re real confident” it will be successful, Schmidt said.

Marty Finley can be reached at (270) 505-1762 or mfinley@thenewsenterprise.com.

That’s the first newspaper reference to local government mergers in Northern Kentucky, according to Northern Kentucky University history professor Paul Tenkotte.

Most cities have opted to remain independent – Campbell County has 15 cities and Kenton has 18 – but the idea of consolidation never left the minds of local leaders.

Tenkotte and other experts at a forum Tuesday night at the Carnegie Visual and Performing Arts Center discussed the economic benefits and challenges of merging governments and services. Some said other areas, such as Louisville, gained economic development advantages by consolidating governments.

The answer to why Northern Kentucky has so many cities lies with the Great Depression and World War II, Tenkotte said.

The leaders of many Kenton County suburban cities in the 1920s, such as Fort Mitchell and Park Hills, envisioned being annexed by Covington, he said. But the Works Progress Administration in the Great Depression built infrastructure in these cities, and the World War II generation’s volunteerism sustained the small cities.

“The WPA … provided funds on a cost-sharing basis to build city buildings, school sidewalks, sewers, water treatment plants, you name it, and the suburbs took advantage of that and got great infrastructure built,” Tenkotte said. “So then we go into World War II. After World War II, the suburbs can take advantage of what Tom Brokaw and others called the Greatest Generation, a generation that was very involved with civic engagement … and they looked and said we don’t need Covington anymore.”

Rising pension costs for cities has many looking at ways to save money. That might mean the merging of services, Crestview Hills Mayor Paul Meier said.

“If something drastic doesn’t happen with that pension system, we’re going to have to look at least at the consolidation of services,” Meier said. “That’s one of the things our city has done. We don’t have our own fire department. We contract that out. We contract the police department. I think you will find that in a lot of places going forward.”

The consolidation of city and county governments doesn’t happen often in the United States, Suzanne Leland, a political science professor with the Urban Institute of the University of North Carolina, told the audience Tuesday night.

Only 40 city-county consolidated governments exist in the United States, she said, including Lexington and Louisville. When they get proposed, 85 percent get defeated at the ballot box, Leland said.

Most city-county mergers happen with areas that have a populations of 100,000-300,000, she said, and succeeded when the campaign stressed the economic development value over the government efficiency, Leland said.

The forum Tuesday night featured people who worked elsewhere in the state on consolidation.

Some leaders in Hardin County, which has a population of 105,000, have proposed consolidating the government of the county and the cities, which includes Elizabethtown and five other municipal governments.

In addition to less duplication, the merging of governments would give Hardin County more clout, said Luke Schmidt, a consultant who is working on the proposed Hardin County consolidation. A unified government in Hardin County would make it the third-largest city in the state.

“Because of that, economic development will be more focused – more singularly focused – and we expect good job creation to come from that,” Schmidt said.