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Court gives first reading to flood-repair budget and approves interlocal water agreement
Summary
Letcher County took a first reading of an ordinance to amend the fiscal-year budget to reflect received flood repair grant money and passed an interlocal agreement with the county water and sewer district to manage water infrastructure projects tied to CDBG-DR funds; officials warned environmental reviews can delay projects.
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County staff told the fiscal court that federal and state grants tied to flood repair and mitigation will be added to the county’s budget, and read a first-reading ordinance to amend the fiscal-year appropriation accordingly.
Chris (county staff) told the court that environmental reviews and archaeological clearances required under federal rules frequently lengthen project schedules and can add months or years to a project timeline. "You hit the environmental process and you can't do anything without clearance — and if you find archaeology it can add one to two years to a project," he said.
The court also approved an interlocal agreement with the county water and sewer district that names the county as the lead applicant for certain community-development grant applications and confirms the district will assist with procurement and construction administration. Under the agreement, the county will receive and manage grant proceeds and the district will assume operations and maintenance of completed assets where appropriate.
A first reading of the ordinance to amend the budget was held (a second reading and final vote were scheduled for the next month). The court also approved a resolution committing county assurance that it will cover any cost overruns as required by DLG for flood-repair projects. Members said the county will seek additional earmarks and other funding sources for the phase-two flood mitigation program.
What happens next: staff will bring the ordinance back for a second reading, finalize the interlocal agreement language where needed, and report milestones for environmental clearances and grant closeouts.

