SALYERSVILLE, Ky. — An examination into the City of Salyersville is being referred to the Office of the Attorney General and the United States Housing Authority. 

Auditor Mike Harmon released the finding of the examination that shows double billing by the Mayor’s son for work with the city and the Magoffin-Salyersville Housing Authority and misuse of tourism dollars. 

Harmon’s team found the mayor’s son had billed 224 duplicate hours on 148 different instances between 2017-2018 for his work as a contractor with the city and part-time time with the housing authority. 

“We're not really sure which one didn't get the work that they were supposed to get and paid it anyway,” Harmon said. “But there was that overlap.”

Salyersville Mayor James Shepherd however says it was a recording error on his son’s part and did not result in any overpayment to him. 

“He was just so stupid that he was putting them down, both times at the same time. He was working part-time at the housing authority and then when he came out to work with the city he always comes out at like four o'clock or so on the days he was off,” Shepherd explained. “So instead of just putting that down as he should have he just got lazy and lax but when we found out about it he changed that and started doing them right." 

The examination also found the city had used tourism dollars on non-tourism related things without approval from the Salyserville Tourism Commission. In the review of 63 expenditures made with tourism dollars, just 48 of them were tourism-related. 

"Only about 16 percent could we determine fully that appeared to be tourism about 8 percent of them could be tourism but we weren't sure so really only about 24 percent total could possibly be utilized for tourism,” Harmon said. 

Harmon says the money was used for general government things instead of like health insurance for city workers and excavation of roads. 

Some of the expenditures that remain unclear to the city are: 

• ·Contract labor for three people for election work $360
•  Health insurance for city workers $1,662
•  Christmas gifts to be given away at community event $2,502
•  Concrete work for tornado shelter $5,000
•  General use gasoline $2,919
•  Portion of workers compensation insurance $13,187
•  Coffee for City Hall and Fire Department $259
•  Pumper truck for Fire Department $4,000
•  Boots for street department workers $1,378

Mayor Shepherd however disputes the findings from Harmon’s office that the purchases were not tourism-related.

"I've got a little disagreement this,” he said. “Some of the things that are wrong. Some of the things could be considered non-tourism funds but we always pay them back so once apart from other accounts we always try to put it back. What they consider non-tourism sometimes I don't understand.” 

Harmon also noted the tourism commission had not met since 2009 which was the reason none of the expenses charged to the tourism account could be approved. 

“Those dollars are supposed to be spent only on tourism,” Harmon said. “Now if the tourism commission is overseeing it and the tourism commission indicated that you know, such and such expense was for tourism, it might still be questionable but at least they would have some oversight. So that was one of the things that we mentioned in our letter was there was a lack of oversight both by the city, as well as by the commission”

Mayor Shepherd has been in office since 2011 and said he couldn’t speak to why the commission did not meet prior to his term but took full responsibility for the commission not holding a meeting during the eight years he has been leading the city. 

“It really falls back on me because I didn't push it because I don't know. But no they haven’t,” he said. “I’ve had a commission for the whole time, it's just been difficult to get in a meeting. I know eight years is a long time but that's the way it is.”

Shepherd noted the commission should be meeting virtually on Tuesday. 

One of the expenses listed by Harmon as questionable, however, Shepherd says is incorrect. The examination says the $2,502 was used from the tourism fund to buy Christmas presents to give away a community event, Shepherd says the gifts are all paid for by donations. He believes the confusion surrounding that expense deals with the city having two separate tourism accounts--one for the tourism commission and one for city tourism. 

“The tourism commission money goes into that account (the city tourism account) plus we have other monies that come in not just the tourism money that goes into that account to pay for some things so it seems to me they have that mixed up with the tourism money,” he said. 

Harmon says it’s important to conduct these examinations to make sure taxpayer money is not being misused. 

“It's important for the taxpayers to know those monies are being spent appropriately,” he said. “In a timeframe when dollars are so tight, it's even all the more important.”

Shepherd is glad the examination is finally over. 

“It’s been a year and a half so I’m just glad it’s over with now and we can get on with things,” he said. 

The letter from Auditor Harmon to Mayor Shepherd can be found on the auditor’s website.