|The City of Kasaan adopted its FY14 budget two months late on August 20, 2013. The delay in adoption was due to several disagreements among council members regarding portions of the budget to cut in order to ensure the budget is balanced. In the previous year, amendments were made appropriately when necessary. The city's FY14 budget is detailed and appropriately separated by department. Water and wastewater service revenues and expenses are formatted in the budget as an individual city enterprise. The expenses are further separated out into categories such as personnel services, travel, facility expenses, supplies, equipment, and other, and include sub-categories within each category. The city's general expenditures, such as personnel and electricity, are divided and allocated between departments in the budget to provide the most accurate possible proportioning of each department’s associated responsibility for that expenditure. The overall city electricity cost, for example, is divided up among departments according to their proportionate use.
The utility treasurer provides financial reports to the council at all regular meetings, including a balance sheet, profit and loss comparing budgeted and actual amounts, and a written narrative report. The water operator also provides reports monthly to the council and the utility manager, the mayor, attends all regular council meetings to provide any additional information needed. Budgeted amounts appropriately reflect an expected marginal increase in revenues from user fees and increases in certain expenses such as payroll, electricity, fuel, maintenance, and internet that will come partly from the community’s new water treatment plant being brought online. Reductions were made in travel expenses from FY13 to FY14.
As of February 2014, year-to-date numbers are on track. Fifty-six percent of anticipated revenue, has been collected, and 34 percent of anticipated expenditures met. The city last raised its water rates in 2008 and is currently undergoing a water utility rate study to consider increasing water rates in order to cover the costs of the new treatment plant. The city charges its 19 regular residential customers at a rate of $60 per month for sanitation services and five senior customers at a rate of $40 per month. Seven commercial/school customers are charged $70 per month and one non-profit customer is charged $25 per month. From December 2012 through June 2013, the utility averaged a monthly utility bill collection rate of 94 percent. Some of the past-due customers on the books no longer live in the community, though the city continues its efforts to collect the amounts they owe.
The City of Kasaan receives fuel shipments by road from Petro Marine, as needed. When the company is driving through the area, they will often stop to top off the city's tanks. The city then distributes fuel to the rest of the community, charging a slightly higher rate than what it paid. The city sufficiently budgets each year for all fuel-related needs. Electricity is provided to the city by Alaska Power and Telephone Company; RUBA staff has confirmed that the city’s payments to the electric company are current.