Officials with the Trigg County Fiscal Court have offered an update — in regard to ongoing discussions surrounding the future of Arrowhead Golf Course.
In a letter emailed from Judge-Executive Stan Humphries and magistrates Tuesday afternoon, their determination — based on sincere consultation from the Kentucky Association of Counties — is that entering into a long-term purchase agreement of the property, using funds from the City of Cadiz restaurant tax, is “not a sound decision.”
At the top of the reasons why: the legality of the restaurant tax, which at the moment remains in a lawsuit at the state level first filed by Hazard and Perry County officials earlier this year.
Humphries, via letter, said that until the court system makes a determination, “we see no opportunity for the county to be involved,” and it is fiscal court’s hope that Arrowhead Golf Course can remain privately owned.
He further noted that fiscal court remains committed to reviewing all viable options going forward.
In 2015, the Kentucky General Assembly passed House Bill 331 — which decreed that every city in Kentucky, save Louisville, be considered a “home rule city,” thus taking away the ability to impose a restaurant tax.
Cadiz is one of 50 or so cities with a restaurant tax. Its officials began reviewing the feasibility such in 2009, and implemented its 3% in 2013 under the authority of increased tourism advertising and the improved funding of a local tourism board.
Annually bringing in between $125,000 and $150,000 for Cadiz, and sometimes more, it must be earmarked for specific items — much akin to the alcohol tax. In 2016, the Cadiz City Council voted to re-evaluate the restaurant tax, over concerns of the budgetary line item and its expenditures.
Humphries made further notes in his letter to the public:
— The fiscal court is “deeply aware” of the implications the loss of Arrowhead Golf Course would have, not only on the many homeowners in that area, but also the impact on tourism and recreation for our citizens.
— The fiscal court, in conjunction with the Cadiz City Council and its own budget committee, have spent considerable time discussing many options on the table.
— The fiscal court remains ensconced in using tax dollars in a “fiscally responsible manner,” which currently includes a “balanced budget,” as well as earmarked additional expenditures for fiber internet, a new spec building for expanded economic opportunity and the future construction of a new Trigg County Rescue facility, while placing priority on bridge and road maintenance and repair.
Humphries further noted that the fiscal court would “only” consider entering a purchase agreement of Arrowhead through the use of non-budgeted funds, and that several interested parties have continued to suggest the use of, again, the restaurant tax.
Copy of Letter from Trigg County Judge-executive Stan Humphries
The Trigg County Fiscal Court’s Response to the Arrowhead Golf Course Discussion
After news of Arrowhead’s decision to sell the golf course earlier this year, the Trigg County Fiscal Court began reviewing all possible avenues to ensure the sustainability of the golf course, as we are deeply aware of the implications the loss of Arrowhead Golf Course would have, not only on the many homeowners in that area, but also the impact on tourism, and recreation for our citizens.
Over the last few months, The Trigg County Fiscal Court has had numerous discussions on the future of Arrowhead Golf Course with concerned homeowners, City Council members, and Budget committee members, while weighing each option carefully.
As members of your Trigg County Fiscal Court, we have many obligations to the citizens of Trigg County to ensure we are managing the use of tax dollars in a fiscally responsible manner. Beyond the anticipated costs of managing the County and keeping an eye on a balanced budget, we have earmarked additional expenditures for fiber internet throughout the county, a new multi-million dollar commercial building for expanded economic development, the future construction of a new Trigg County Rescue Building, as well as placing a heavier emphasis on the increasing costs of maintaining roads and bridges.
While weighing all necessary expenditures, the Trigg County Fiscal Court would only consider entering a purchase agreement for the golf course using non-budgeted funds. Many have suggested the use of the Restaurant Tax for the purchase of the golf course. This tax was enacted to create additional funds for increased Tourism as well as supporting our parks and recreation in our community. The City of Cadiz implemented this Tax and manages the use of these funds. Currently, there is a lawsuit challenging which cities are eligible to implement this type of tax; while Cadiz is an eligible city, the lawsuit itself has created growing questions of the long-term stability of this source of funding which could eventually be determined to be unconstitutional.
It is our determination, and based on consultation from KACo (Kentucky Association of Counties) Attorneys, that entering into a long-term purchase agreement of Arrowhead Golf Course using funds from the City of Cadiz Restaurant Tax is not a sound decision. Until the court system makes a determination regarding the legality of the restaurant tax, we see no opportunity for the County to be involved. Our hope is that Arrowhead Golf Course can remain privately owned. We remain committed to reviewing all viable options going forward.
