|The Huslia Water Development (utility) budget, which is separate from the city budget, is concise. All revenues and expenses are listed and the budget is balanced. The utility receives revenue from three sources and is projected to end the fiscal year $800 over budget. Revenue is received from the water and sewer customers, which currently is at 48% of the budgeted income. The second source of income is from the washeteria for washing clothes and personal showers (there are no dryers and the system was not designed to include them: 'too expensive' was the rational). The third and final revenue source is from the State of Alaska revenue sharing program which the city passes through to the utility. The city budget has allocated $34,000 to go to the utility to cover fuel and PERS expenses. That transfer has not yet occurred but according to the city's financial reports, the money is available for the spring fuel barge. As the city has not transferred the money to the utility, RUBA is unable to justify stating that revenues are equal to or above those budgeted. When the city provides the financial assistance, the utility will be able to show that revenues are equal to or above the budget and the sustainable indicator will change to reflect that.
At the moment, bills do not include an amount designated for repair and replacement, although the utility receives funding from the city sufficient to cover these costs; a copy of the city's budget is also on file in the Fairbanks office. The city administrator stated that a new rate structure was going to be proposed to the city council for adoption by July 1, which will include $5 for repair and replacement. The new rate amount has not yet been determined by the administrator. Previously, there was a repair and replacement fund of $15,000 which was used for the old water facility. A new facility was brought online in October 2008; the city has yet to accept official ownership.
Except for the necessary revenue transfer described above, the revenues and expenses are at the levels budgeted. This assessment was completed on March 5th, which is about eight months into the fiscal year; this would mean the utility should be at about 66% of the budgeted line item ammounts. They are at 68% of the budget. The financial reports indicate they are at 48% of the budget but that is because the fuel appropriation has not been transferred from the city budget as the spring barge has not delivered fuel. The city currently has the necessary funds to transfer.
The administrator provides a monthly verbal report to the city council but does not provide printed financial reports or a manager's narrative. She stated that the financial reports are provided quarterly. RUBA recommends that the printed financial reports be given to the council members at every meeting. The summary of the verbal report is recorded into the meeting minutes, of which a copy is on file in the Fairbanks RUBA office. Within the next six months, RUBA recommends that printed reports which show the budget compared to monthly activity and year to date information are provided to the council. The utility operator provides verbal reports to the administrator, who then gives a verbal report to the council. As with the financial reports, written reports are recommended.