|The City of Koyuk includes all budgets of public utility services in the overall city budget. As a whole, the FY12 budget is balanced and contains all expected revenues and expenditures. According to the water and wastewater budget, the utility expects to receive at least $121,032 in revenues from user fees comprised of residential and commercial customers. The utility expenditures are expected to be of $179,568. Without using other funding sources, the deficit would be $58,536. What made the deficit so large was the fuel related expense. The utility has spent about $55,283 on fuel; one of the highest expense incurred by the utility following the salary expense. Historically, the city did not include the fuel expense in the utility budget because the fuel was subsidized by the city council using grant funding, such as the Community Benefit Sharing and Norton Sound Community Benefit grants. This fiscal year, the fuel expense was included in the utility budget which significantly increased the deficit. This year's deficit is subsidized with grant funds. Historically, the utility has not been able to receive the budgeted revenue due to lack of enforcement of its collection policy. For example, in FY11, the utility budgeted to collect $111,800 in revenue, but by the end of FY11 the utility only received $104,371 in revenue, $7,429 less respectively. On the other hand, last year's expenditures rose above those budgeted. For instance, the utility budgeted expenditures in the amount of $110,229 in FY11, but the total expenditures by the end of FY11 were of $ 120,075, a $9,846 increase in expenditures. In spite of the historic deficit problem, the utility is current as of December 2011 in all of its electricity bill payments, bulk fuel and water quality testing service payments and other bills. Between user fees and other revenue sources, the utility has been able to cover the repair and replacement costs, like new water pumps.
The year-to-date revenues fluctuated in the last quarter and the two months of this quarter. For instance, based on the FY12 budget, the monthly revenues are supposed to be $10,086. However, the July revenues were $10,318, August $19,350 respectively, while in September and October revenues were $8,142 and $9,124 correspondingly.
The monthly financial reports show the same trend for expenditures. Again, based on the FY12 budget, the monthly expenditures are supposed to be $14,964. The reports show that in July and August the total expenditures were $10,785 and $13,447, much below those budgeted. However, in September and October, a wide fluctuation is noted, correspondingly, $14,545 in September and $4,515 in October.
The utility bookkeeper prepares the monthly water production, water usage and other utility related reports by using the reports received from the water plant operator. The utility clerk presents those reports to the city clerk who in turn hands them to the city council at the regular monthly meetings. |