|The City of Port Alexander adopted a budget for FY12 in June 2011 by non-code ordinance. The city utilized FY11 actuals in establishing this budget and there have been no amendments to date. Projected revenues total $307,363, while projected expenses total $285,700, reflecting a balanced, comprehensive city budget. The budget includes sections such as locally generated revenues, grant revenues, and other outside revenues such as state revenue sharing funds. It includes expenditure sections for capital projects, administration, insurance, renovation and maintenance of city property, and a detailed section regarding city utilities. The city utilities are clearly separated within the city's overall budget, but utility expenses and income are not compared in a separate enterprise budget. Thus it may not be clear to the utility's governing body upon review how exactly the city is balancing the utility's budget. The city projects a revenue ($5,800) far smaller than projected expenses of the water utility ($48,700). The utility is not drawing enough revenue through user-fees to cover operating expenses, such as parts, chemicals, maintenance, labor, training, and testing. However, the city has successfully subsidized the utility with income from state revenue sharing programs. The utility has an informal 10-year plan for water subsidies and changes in the event of a reduction or loss of community revenue sharing program funding, though they have not formalized this plan. The utility charges a flat rate to all customers (both commercial and residential) of $100 per year. The utility has been charging this rate since 2007; previously the service was free. The budget reflects sufficient projected funding of repair and replacement costs for the utility, and the city describes themselves as always over-budgeting in most areas as a precaution. Indeed, the budget comparison between the previous year's actual and the coming year's projections reflect that the utility estimates slightly more money for repair and maintenance costs than were expended in the previous year. The city reports they budget for utilities based on their 'most expensive year'.
The city clerk, who also functions as the utility's clerk, provides monthly profit and loss budget versus actual year-to-date reports for the city council prior to every meeting, which compare actual expenditures and income to budgeted amounts. Utility staff report that a manager's report is provided by the city clerk to the mayor prior to every council meeting verbally and that this is documented in the city council meeting minutes. As of November 5, 2012, both expenses and revenues were drastically below budgetted amounts. However, water bills and payments only go out once per year, and have not yet been completed for FY13. Budgeted expenditures for the water utility for FY13 are $41,151. At present, only $7,462.21 has been spent, leaving sufficient funds to complete the remainder of the year, factoring in maintenance and repair costs that often come up in the colder winter months.
The utility's power is provided onsite by diesel fuel generators and has no other associated electric utility costs. The community receives fuel on a regular basis by either a commercial provider or the Coast Guard. Individuals throughout the city, including the city and utility, purchase the fuel at point of shipment. The city and utility have not had any fuel shortages. When the commercial provider has been unable to provide a shipment, the Coast Guard has stepped in to provide the service. Shipments are sometimes delayed by weather, which has caused shortages for some individuals in the city. There is no bulk-fuel storage option, nor any local fuel retailers.|