|The most recent financial reports from October 2 indicate that the utility is recieving income to support the utility. The collection rate is extreemly high, the city has been able to collect the payments from its customers for quite some time.
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. Revenue is received from the water and sewer customers from the washeteria (for washing clothes and personal showers, and 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.
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.
The revenues and expenses are almost at the levels budgeted. The utility has exceeded the budgeted income for the washeteria and the income from the piped water system is at 89%, revenue will continue to come in as customers have 30 days to pay their bills.
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.