NORFOLK, Neb. -- The City of Norfolk and North Fork Area Transit have a new funding agreement for 2024. 

Similar to the past agreement, the city will provide $100,000 to NFAT. Payments will not be renewable and be given over the next fiscal year in three payments starting with a $50,000 payment and two more payments of $25,000.

Unlike its previous agreement, however, the city has extra safeguards to terminate funding in case finances appear to be mishandled by NFAT.

The agreement expands current audit requirements for the transit service and NFAT must provide documentation when requested by the city. It also allows the city to terminate funding should the Nebraska Department of Transportation deny reimbursement to NFAT, depending on the reason for the denial.

NFAT must also notify the city if they are under investigation by a government agency, and a city council member to sit on NFAT's board, a position currently held by Councilman Justin Webb. 

The precautions have been put in place following an incident in late 2022 where NFAT's formal general manager Jeffery Stewart was accused of embezzling NFAT funds. This resulted in NFAT's temporary shutdown and severed trust with many community members. 

Lacy Kimes, president of the NFAT board, said the company has worked hard to overcome these setbacks, and emphasized the need for public transportation in the community.  

"We have many, many people that if they did not have North Fork Area Transit, they would not have transportation," Kimes said. "We had many, many people that had to quit their job. They flat out quit going to the doctor, they did not go to the grocery store, and we had many families that they didn't see family or friends for months because they didn't have a ride." 

Still, skepticism remained with some council members. Councilman Kory Hildebrand said he understood the need for public transit but expressed his concern, especially as Stewart's court case continues later this year. 

"I don't know how comfortable I am with this ask," Hildebrand said. "This court case of why you guys shut down is still pending, and we don't know what the outcome is. I'm just gonna tell you there is a little hesitation on my part because we don't know what the outcome is." 

While these concerns were expressed, the council unanimously decided in an 8-0 vote to provide funding to NFAT. Kimes said the service will continue to pursue other entities for funds and partnerships to assist their efforts in the future.