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No tax, utility increase in Norway budget

NORWAY — Norway residents won’t see any utility rate or tax increases as part of the city’s proposed 2017-2018 fiscal year budget.

The Norway City Council had a public hearing on the budget Monday, but no one offered any comments. Council members will vote on the budget, along with utility rates and pay scales, June 19.

Utility rates, particularly water and sewer, have risen steadily over the past few years in anticipation of this year’s water and sewer system upgrade project, but no new increases are expected.

The tax rate will remain level at $16.3942 per $1,000 of taxable value. However, the city’s taxable value continues to decline from a high of $58.3 million in 2013 to $54.6 million in 2017.

Total revenues are estimated at $21.4 million, with expenditures expected to be $20.8 million. This includes all 12 city funds: general, major street, local street, Downtown Development Authority, museum, fire, debt service, cable television, electric utility, wastewater, water and capital.

The wastewater fund is the largest at about $7.5 million, due to the water and sewer project. The electric fund is at $3.9 million, general fund at $3.5 million, water fund at $3.2 million and all others each at less than 10 percent of the overall budget.

In other business, the council:

— Agreed to hire attorney Jack Van Coevering of Grand Rapids to represent the city in a Michigan Tax Tribunal case against the Dr. Peter E. Marana Trust.

Marana, through attorney Laura Hallahan, has requested the tribunal decrease the 2017 taxable value of his commercial property at 711 Seventh Ave. from $109,100 to $42,500, according to the tax tribunal’s website.

Van Coevering is “well-regarded by municipal entities in representing tax tribunal cases,” City Manager Ray Anderson said in a memo to the council. His pay rate will be capped at $275 per hour, according to a letter from Van Coevering.

— Had a public hearing on proposed amendments to the Downtown Development Authority Tax Increment Financing plan. Amendments are necessary if the city wishes to extend the plan from its scheduled ending date in 2024 to 2046.

No residents offered any input, but council member Mark Bubloni said he’d like to see the plan include more projects on the city’s east side. However, Anderson and DDA members pointed out they want to keep the plan general and avoid listing specific projects so they don’t get “pigeonholed.” Projects listed include improvements to Main Street, utilities, the Norway Spring and the Norway Myr wetland area.

The council is now scheduled to vote on the amended plan at its July 3 meeting.

— Heard from Shirley Foisey about deteriorated sidewalks being a safety issue on Brown Street, particularly for elderly people who live at the nearby assisted living facility, she said.

The council either has to appropriate funding for sidewalk repair or work with residents to share in the cost of fixing sidewalks, Anderson said.

— Agreed to pay Bacco Construction of Iron Mountain an extra $79,565 to pave streets or portions of streets adjacent to but not included in the water/sewer project.

— Agreed to pay $52,140 to Miron Construction of Neenah, Wis., to repair the overhead bridge crane at the city’s Sturgeon Falls Hydroelectric Facility.

— Also agreed to pay $5,750 to B & B Electric of Iron Mountain to provide and install a switch in the hydroelectric facility’s backup generator room.

— Agreed to pay $3,100 to HD Supply Waterworks of St. Louis, Mo., for a new subsurface locator for the water department. The department’s existing locator, used to find pipes and cables, no longer functions and would cost about $3,000 to repair, Anderson said.

— Accepted George Bal’s letter of resignation from the city’s electric utility board, and appointed Bubloni, Beau Anderson, Cory Heigl and Gerald Kaminski to the board.

— Went into closed session to discuss labor negotiations.

Starting at $4.00/week.

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