BY ROGER SMITH
MOUNTAIN CITIZEN

INEZ — The Martin County Public Library is operating at a deficit with spending outpacing revenue through the first nine months of the fiscal year, according to financial statements presented in a library board meeting April 27.

The library reported $535,854.09 in total revenue and $572,583.94 in expenditures through March 31, resulting in a $36,729.85 shortfall. The budget had projected both revenue and spending at $527,150. Revenues came in $8,704.09 above budget while expenditures exceeded the budget by $45,433.94.

Financial statements show the library remains solvent but under pressure. Through March 31, it had $25,892.66 in total assets, almost entirely cash, and $8,819.31 in liabilities. That left total capital of $17,073.35 after the year-to-date loss.

Local taxes continue to serve as the primary revenue source, totaling $329,167.69, or 61.43% of total income. Additional revenue includes $58,662.31 in movie ticket and concession sales, $53,942.19 in grants from Martin County Fiscal Court, $44,978.85 in insurance proceeds, and $31,409.85 in sublease income.

Personnel costs represent the largest share of spending at $284,637.54, or 53.12% of total expenditures. Wages alone total $190,984.16, exceeding the budget by $20,984.16.

Operating costs also contributed to the deficit. Utilities totaled $91,790.66 year to date, exceeding the budget by $16,790.66. Insurance totaled $36,855.09, more than double the $15,000 budgeted. Professional fees totaled $14,322.81, exceeding the budget by $7,822.81.

The library also recorded $44,978.85 in leasehold land improvements, an unbudgeted capital expense that matches the amount recorded as insurance proceeds.

For March alone, the library reported $37,546.15 in revenue and $48,293.92 in expenditures, resulting in a monthly deficit of $10,747.77.

The cash flow statement shows cash decreased by $37,139.93 over the nine-month period, leaving $25,892.66 on hand at the end of March.

The deficit follows a multi-year financial decline. In 2024, the library was already running a six-figure shortfall, with expenditures outpacing revenue by more than $100,000. By late 2024, financial statements showed a deficit exceeding $300,000, prompting the board to liquidate a certificate of deposit valued at more than $227,000 and pay off a $223,500 loan tied to a heating and cooling system at the Collier Center.

In October 2025, an auditor warned that the library’s cash reserves had dropped from nearly $1 million to about $48,000 over a six-year period. In response, the board eliminated employee health insurance for seven workers.

During the April 27 meeting, board members Maurice Mills, Barry Webb and Shelia Maynard voted to advertise for a library director and a movie theater manager. Applications for both positions are available at the library in Inez.

Board members also heard from Josh Bills of Mountain Association, a Berea-based nonprofit. Bills said his organization conducted a walk-through energy assessment of the library last year. He recommended switching to LED lighting on the third floor — about 100 fixtures. Estimated electricity savings would be about $170 per month.

Bills said the materials would cost about $872 and installation would cost about $1,500. The library could receive a $600 rebate from Kentucky Power after completion.

The library’s electricity bill currenty exceeds $10,000 per month.