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Commissioners admitted that they had misplaced their trust in the financial reports and figures that were given to them by the former mayor. Commissioner Mike Burgess has since been contracted by the city to assist in a city audit for $1,500 a month. Gage Wilson/for Glasgow News 1

Park City confronts debt, mismanaged funds at packed meeting

Dec 3, 2025 | 10:29 AM

By GAGE WILSON
for Glasgow News 1

Legal concerns weren’t the only focus of Park City’s Monday meeting. As discussion unfolded, city hall turned into an impromptu town hall, with several attendees pressing commissioners about recent accusations of financial mismanagement.

After the departure of former mayor Larry Poteet, commissioners learned that multiple expenditures had been paid with funds the city later flagged as misappropriated.

“It’s not a pleasant thing when you go back and look at it,” Commissioner Mike Burgess said. “I had no idea.”

Burgess, who has a background in accounting, was appointed by the commission to work alongside city auditor Paul Barber to sort out the spending. Their review did not uncover illegal activity, Burgess said.

“There is no fraud,” Burgess said. “It was just spending way too much and not slowing down.”

Commissioners also disclosed that the city owes the Barren County Sheriff’s Office roughly $117,000 — a debt that accumulated after Park City contracted two deputies to serve as its police force.

“We thought we could afford it,” Mayor Donna Scavo said, adding that the financial reports given to the commission did not reflect the true level of spending.

The city has since ended the contract and is working on a repayment plan.

One attendee raised circulating rumors that the city might be dissolved, a concern tied to a recent petition led by local resident Deric Childress. Commissioners worked to ease that fear as Scavo and Childress had discussed plans to tighten spending and rebuild trust. Scavo said that Childress agreed to pause any further dissolution efforts after speaking with her.

The petition did have enough signatures to reach the ballot, where dissolution would require voter approval to proceed, according to the commissioners.

As part of efforts to streamline accounting, commissioners voted to close an account with The People’s Bank and consolidate funds into existing accounts at South Central Bank. Burgess explained that maintaining accounts at two banks made tracking finances needlessly difficult, and that diversifying accounts within a single institution would help keep project-specific funds separated.

“All this money has been going into the general fund,” Scavo said. “When it should be going into different accounts.”

Both commissioners and attendees welcomed the return of public comment.

“We can see the light at the end of the tunnel,” Scavo said.

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