Water Board hires employee and lawfirm
Members of the board at the Cumberland County Water District went over finances before going into closed session to discuss legal action to recover money the state has confirmed was overpaid to one of their water suppliers.
By Greg Wells
CCN—Editor
Late in the Jan. 14 evening meeting of the Cumberland County Water District Board, board members expressed cautious optimism after repeated interviews of the candidate and agreed to hiring him for a probationary period of 60 to 90 days starting February 2.
The board then moved into an extended closed session to discuss probable legal action. When they came out of that meeting, they announced they had been put in the position of having to hire an attorney and file a court case in order to resolve overcharges by Albany’s Water Department.
It was explained that a state investigation and regulatory case that brought the issue to light and was ongoing would not be a means for the system to recover that money, as previously thought.
Those overcharges include billing the Cumberland County water district for local taxes like a residential customer. There was also an increase to the rate the other water utility was charging for water supplied to the district, without the proper review and approval of the State.
At the start of the meeting, a complaint was discussed involving a customer who did not understand the requirement to pay a tap fee for a new water meter.
The district’s operations manager, Michael Ballard, explained that it was clarified to that customer that all residents on the new water line were required to pay the fee, and he said he confirmed through talks with the customer that the issue appears to be resolved.
Ballard explained that a meter box placed for this customer’s relative was agreed upon as part of an easement agreement and clarified that a meter itself was not installed yet but would be upon request.
Water loss has increased by approximately 4% in the past two months, Ballard told the board.
He said the average water loss for 2025 was about 33%, slightly improved from previous years. The Kentucky Public Service Commission, which oversees water districts’ operations throughout the state, had ordered the district’s water loss problem to be addressed, which they have been working to do.
New zone meters for the system’s main distribution lines have been installed, except one scheduled for spring installation with the remote reading systems installation pending.
That meter reading system is expected to be operational soon, which will assist in locating leaks.
The Dutch Creek Water Project is expected to be completed by the last week of the current month. Weather delays (freezing temperatures) impacted progress.
The Marrowbone Water Project is expected to proceed as soon as the Dutch Creek project is completed. Ballard said that some iron pipe order backlog concerns are due to “Made in America” manufacturing requirements and that could cause delays.
Installation of a new pumping station is progressing now that permits have been received.
Ballard said that the approval of using land already owned by the district for the project has been secured, with cost savings estimated between $12,000 and $15,000 because of that. He said that financing through the Kentucky Infrastructure Authority (KIA) for the project is ready and they are expecting to let bids in February with construction expected to begin in early spring.
The financial report was reviewed and no irregularities noted.
Ballard noted that payroll expenses were higher that month due to payment of accrued employee vacation time.
New rates, resulting from the PSC-required rate study, were approved by that agency as of December 23, 2025.
New minimum monthly water bill is set at $39.82, excluding tax, was stipulated by the PSC.
Ballard said the new rates will show up on customer bills starting in February.
Meter installation fees have increased to reflect actual costs, Ballard said, adding that previously the water district lost money on meter installations.
All the members of the board stressed that the Public Service Commission controls and approves rates, and that the board and the fiscal court do not set those independently.
Ballard said that the percentage increase was set by the PSC at 14%.
