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Norway audit shows no significant issues

NORWAY — The Norway City Council on Monday heard an encouraging summary of the city’s audit for the 2018-2019 fiscal year.

Scott Kenney — a certified public accountant who has handled the city’s audit for more than 20 years — said he found no material weaknesses, significant deficiencies or non-compliant practices when presenting his report to council members.

Kenney noted the general fund earned about $2.8 million in revenues and expended some $2.6 million during the year, with a net gain of about $54,000 after transfers.

Total governmental revenues decreased by about $80,000, primarily due to less in property sales and unrestricted investment, according to Kenney’s report. Total expenditures was down about $1.5 million due to a decrease in general government and public works expenditures.

The city saw increases in its electric, water and communication funds, Kenney said, with only the sewer fund showing a loss of $112,000.

“That’s something you’re probably going to need to take a look at,” Kenney said of the fund, adding, “If everything stays the same, we’re going to continue to see some pretty substantial negative numbers within that fund.”

Kenney said he was not concerned about the city’s debts, which total almost $35 million.

Of that, Kenney said, a little more than $1.7 million was general obligation, with about $600,000 being taxpayer responsibility.

More than $13 million of the debt is benefits, Kenney said, noting that was not uncommon.

The report will be available for public inspection at City Hall.

In other business, the council:

— Re-appointed City Manager Ray Anderson to a two-year term on the Central Landfill Authority Board. The board, which meets once per year, is responsible for the administration of the old dump behind the former Kmart store in Breitung Township.

— Approved a three-year agreement with the Lake Superior Community Broadcasting Corporation for retransmission rights for ABC 10 and the CW Network. The new contract will include a 50 percent increase in the first year of agreement, jumping from $3.35 to $4.90 per subscription per month. The council still expects television rates to hold throughout 2020.

— Authorized $4,375 for the installation of a security access gate on the industrial park road heading to the well site in Norway Township. The city will split costs with Norway Township, as both have had trouble with illegal dumping and vandalism in the area.

Starting at $4.00/week.

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