BY ROGER SMITH
MOUNTAIN CITIZEN

INEZ — The Martin County Water District is weighing legal action against the Kentucky Infrastructure Authority and Big Sandy Area Development District, claiming the flawed scoring of the county’s water and sewer project applications cost one of Kentucky’s most distressed districts $24 million in critical funding.

The issue centers on the Kentucky Water and Wastewater Assistance for Troubled or Economically Restrained Systems program. Known as Kentucky WWATERS, the program was created by lawmakers in 2024 and funded with $150 million to assist the state’s most economically disadvantaged and infrastructure-deficient systems. The law earmarked $75 million for distribution during the 2025 legislative session and another $75 million in 2026.

The Kentucky Infrastructure Authority (KIA) is responsible for scoring and ranking eligible projects before submitting a final list to the General Assembly for approval through a competitive process.

Martin County, long recognized for its failing infrastructure and high-profile water service challenges, applied for funding, relying on the Big Sandy Area Development District to submit its applications. But when the county received no funds during the 2025 cycle, the absence drew a rare public rebuke from State Representative Bobby McCool on the House floor.

“Unfortunately, today I have to vote no on this bill simply because one of the most distressed areas in Kentucky… is not on the list,” McCool said in March. “How they achieved that scoring is beyond me. What I do know is the folks in Martin County are fine folks… and when they need help, unfortunately, this time they don’t get it.”

McCool emphasized that his objection was not aimed at any of the lawmakers or districts who did receive funding. “But I cannot just sit back and say, ‘I accept what has been done,’ knowing that Martin County has been the poster child for water and wastewater, and they do not receive a penny of these funds,” he said.

In the months following McCool’s remarks, the Martin County Utility Board launched an internal review of the KIA’s scoring process. According to a June letter sent to the authority by board attorney Brian Cumbo, the county discovered significant discrepancies between the scores assigned by KIA and those that should have been awarded based on the agency’s own criteria.

Cumbo wrote that Martin County Water District should have received 92 points, not 49, and the Sanitation District 81 instead of 57. With those adjusted scores, both the water and sewer projects would have ranked among the highest in the state and qualified for full funding, according to the board’s analysis.

“Based on the overall funding available and scoring of the other districts, it appears all of Martin County’s projects should have been funded,” Cumbo stated.

Those findings were reviewed publicly by the utility board, which now contends that the miscalculation resulted in the rejection of eight projects — four water and four sewer — valued at $24 million.

“The reality is this: it’s really simple,” said board chairman Tim Thoma during a public meeting. “At the end of the day, we should have gotten eight projects awarded to us worth $24 million in 2025. That’s what should have happened.”

Thoma noted that when combined with the district’s current $13.5 million in projects and anticipated future allocations, the funding could have brought Martin County to nearly $62 million in capital improvements. That is roughly two-thirds of the $100 million the board estimates is needed to fully repair its water and sewer infrastructure.

As the board considers its legal options, the deadline for the next round of WWATERS applications is Aug. 30. This time, the Martin County Fiscal Court has partnered with the utility board to retain nonprofit Fahe to prepare the county’s grant submissions in hopes of strengthening its case for inclusion.

Still, officials are bracing for a potentially tougher road ahead as the state continues to award large amounts to other counties to address their emergency needs.

“There may be less money next year,” board member Nina McCoy cautioned. “People can apply for emergency funding, so there may be even less than expected. Although we could be one of those that apply for emergency funding.”

For now, Martin County residents await news of a potential legal remedy.