|A FY 2012 budget and ordinance adopted on July 28, 2011, is electronically filed at the Bethel regional office. Minutes from a July 28, 2011 city council meeting were provided that documented council members reviewed monthly financial reports from April, May and June of 2011. Minutes from an August 25, 2011 council meeting were also submitted which documented that council members reviewed July's monthly financial report.
Monthly financial reports consisted of QuickBooks profit and loss by class statements along with revenue and expenditure summaries with budgeted amount, current month, year to date and remaining balance columns. Format changes to monthly financial reports will be necessary so they coincide with the format of the city's annual budget with regards to each department's revenue and expenditure line items. The city budget appears to be realistic and balanced. However, it's recommended that revenues and expenses for the water treatment plant and washeteria be separated so council members will be able to monitor the financial status of each independently. This should also be reflected in the monthly financial reports to council. Without separating the finances of the water and sewer and washeteria enterprises, it will be impossible to determine if rates charged to customers on piped water are adequate to cover the operating costs of the newly built water and sewer facility. In the Yukon-Kuskokwim Delta, washeteria facilities typically operate in the red. However, this should not be the case with a water and sewer utility where realistic rate schedules have been calculated. The current format of the city's budget and monthly financial reports will not allow council members to see if rates charged for piped water and sewer services will cover operation and maintenance expenses of the new facility.
An August 31, 2011 phone conversation with Alaska Village Electric Cooperative (AVEC) indicated that the city is current on all their electric accounts. The city consumes approximately 40,000 gallons of heating oil annually and has 60,000 gallon storage capacity at the main water treatment plant and an additional 10,000 gallon storage tank at their satellite water and sewer building. Delta Western delivered 35,000 gallons of heating fuel on September 10, 2011. The city is awaiting a 12,000 gallon Crowley delivery of heating fuel ordered by DEC Village Safe Water to heat the new satellite water treatment plant. The satellite water plant is used by construction crews installing the city's new piped system. Therefore, VSW is paying to heat the facility until it is turned over to the city. It should be noted that at the time of this writing, the city has a significant outstanding balance with Crowley Marine for last year's heating fuel. However, the city plans to reassign its FY 2012 Community Revenue Sharing Proportional Payment to Crowley Marine, which will be enough to pay off the Crowley debt.
Page 15 of the city's Water and Sewer System Business Plan Update states that 'the total amount that should be set aside annually for major equipment Repair and Replacement (R and R) is $43,733'. However, an R and R line item was not included in the city's FY 2012 water and sewer budget. The city administrator who is the manager of city operations including the water and sewer facility reports to city council on a monthly basis. Highlights of his reports are recorded in city council's meeting minutes. The city budget has not been amended yet for FY 2012.