Barren River Area Development District Executive Director Rodney Kirtley announced his retirement Wednesday in a letter to BRADD board members. Kentucky Department of Aging and Independent Living Commissioner Deborah Anderson also responded to Kirtley’s letter in a separate communication, alleging that he distorted the circumstances regarding $82,976.14 in contested funds. 

The BRADD Executive Council voted Tuesday to pay $82,976.14 to the state DAIL. BRADD had used the money to pay salary bonuses from 2009 through 2014. Kirtley has referred to the monies paid as salary adjustments, but DAIL said that was not an allowable use for the funds and demanded the money be returned.

DAIL outlined to BRADD leadership how the money is to be paid back in a letter Anderson sent to Metcalfe County Judge-Executive Greg Wilson, the BRADD chairman.

Wilson said Thursday that he reached out to Anderson a week and a half ago to resolve the issue and had a letter from Anderson in hand when the BRADD Executive Council met Tuesday in closed session. That letter said that if BRADD paid the money, it would not face any other DAIL issues going forward. 

Kirtley cites his disagreement with the payment to the state as his reason for retirement. Wilson said Thursday that when Gov. Matt Bevin decided to take the DAIL responsibility from the Lexington-based Bluegrass Area Development District in light of a federal probe there, “the status quo changed” for the BRADD and its DAIL money fight.

“She (Anderson) said she would send me a letter saying that if we paid the money, we would be back in the good graces with the DAIL going forward,” Wilson said.

Kirtley looked at the issue a different way.

“The board was under pressure by the DAIL Commissioner and the Governor to pay the funds,” Kirtley said in his retirement letter. “The commissioner said the services would be pulled from BRADD if this money was not paid back to the state.

“I am in disagreement with this payment because I feel the state has no legal ground to demand this payment,” Kirtley said in his letter.

Kirtley further said he understood the board’s decision “because of the pressure of the situation from the DAIL Commissioner.”

Anderson sent a second letter to Wilson late Wednesday outlining how the money is to be paid to the state. DAIL spokesman Doug Hogan released a copy of that letter to the Daily News on Thursday.

“Thank you for contacting DAIL regarding the outstanding balance for disallowed costs by the BRADD,” Anderson said in the letter. “As we discussed, payment for the disallowed costs cannot come from the funding source for which the funds were originally deemed disallowed. That means the reimbursement can’t come from the following sources:

“1) Direct, indirect or administrative state or federal funds allocated by DAIL to the BRADD during this or previous fiscal years;

“2) Federal carryover funds;

“3) Match allocations required to draw down federal funds and provided by providers or local government;

“4) Other allocations from local governments or other sources intended for aging or disability services; or

“5) Other administrative, direct or indirect federal funds or grants not related to aging but for which there is specific requirements

Additionally, the BRADD cannot reduce or cut services due to the reimbursement to DAIL,” the commissioner outlined to Wilson in the letter.

Anderson added in the letter to Wilson that she had received Kirtley’s resignation letter.

“It is unfortunate his letter is based on misinformation,” Anderson wrote. “The discussions regarding resolution of the disallowed costs were not initiated by DAIL and at no time did I or anyone from DAIL threaten to pull the aging programs from BRADD. In fact, it was clearly stated that was not our intent. The only outstanding issue we have with BRADD at this time is the disallowed costs.”

Anderson said she appreciated Wilson’s approach to resolve the DAIL money issue.

“I have greatly appreciated your outreach, openness and honesty in working toward resolving the disallowed cost issue so both the BRADD and DAIL can move forward,” Anderson told Wilson. “Please let me know if you or your board have any additional questions,” she wrote. 

Wilson said the BRADD Executive Council is to meet at 10 a.m. Friday at the BRADD offices in Bowling Green and in closed session will discuss two matters: the mechanics of paying the money to DAIL and who will be put in the executive director’s chair following Kirtley’s retirement.

“We hope to get all that worked out on Friday,” Wilson said Thursday.

Kirtley said the decision to pay DAIL sparked his retirement decision.

“Because of this decision of the Executive Board not having been willing to contest this payment, that I feel is wrong, I am submitting my notice that I will retire. I think at some point, you must stand up for what is right. I am willing to do this, but cannot without the support of the BRADD Board,” he said in his letter.

“That’s Rodney’s choice,” Wilson said of Kirtley’s retirement decision. “He disagreed with the board over our action.”

Kirtley’s last day in the office will be Friday. Because of saved vacation time, he will officially remain employed through the end of July.

“I’ve been looking forward to this a long time,” Kirtley said. “I’ve got two grandchildren in Chattanooga. That’s what I’m mainly looking forward to. I’ve got a mission trip coming up.”

At the end of the month, Kirtley will be joining his daughter in Nicaragua for missionary work, he said.

“We go into a poverty stricken areas and what needs are there, we do,” he said.

Kirtley, who has been the executive director for nine years, said he is leaving on good terms with the board.

“I’m 69 years old,” he said. “I’d say it’s time to retire. I think the BRADD has a wonderful staff. They are doing great work.”

Warren County Judge-Executive Mike Buchanon issued the following text message Thursday in reaction to Kirtley’s announced retirement:

“I wish Rodney the very best in his well deserved retirement. I know he and his family look forward to some long-overdue downtime together,” Buchanon said. “I believe the BRADD executive board’s decision to settle their reimbursement with the state and DAIL clear the air and will enable the BRADD to get back on track and move forward in the mission to serve the needs of the region.

“The BRADD has been in a state turmoil for the better part of five years, and the changes this week settled some internal disagreements and may help to mend the strained relationships between the regional leadership. This should allow us to work together on common issues in a more cohesive way.”

“The LEOs Board, made up of the 10 County Judge Executives of the region, have appointed a talented and engaged workforce board (WIOA) who understand the employment needs of our region and are aggressively pursuing their mission in a deliberate way. With the LEO’s support and the strong working relationship with out workforce training partners, I believe our region of the state will meet all of our employers needs, and help thousands of unemployed and under-employed individuals to get and keep good jobs.”

Ron Bunch, chief executive officer and president of the Bowling Green Area Chamber of Commerce, offered this reaction in an email on Thursday:

“The Chamber is encouraged by the action of the BRADD board in paying back the money owed to the Department of Aging and Independent Living. We view this as a vote for south central Kentucky businesses and citizens and against the status quo. In light of Mr. Kirtley’s retirement announcement, we sincerely hope the BRADD board will follow the lead of the Workforce Development Board and seek to identify a qualified leader that will bring transparency and accountability and ensure all the services provided by the BRADD are delivered in a professional, efficient and fiscally responsible manner. As longstanding supporters of regionalism, we hope this week’s events will allow our region to move forward and develop the world class services our citizens deserve,” Bunch said. 

— Follow business reporter Charles A. Mason on Twitter @BGDNbusiness or visit bgdailynews.com. Follow Assistant City Editor Deborah Highland on Twitter at @BGDNCrimebeat.