|The City of Hoonah’s fiscal year follows the calendar year and the FY14 budget was adopted in December 2013. Budget estimates are made based on previous years' totals while incorporating expected deviations in the upcoming year.
RUBA staff has only been provided with a copy of the budget ordinance’s cover page, and not specific figure; therefore, RUBA staff is not able to determe whether the FY14 is balance or realistic, whether repair and replacement funding has been appropriated or whether actual year-to-date income and expenses are in line with budgeted amounts. Relevant indicators in this section have therefore been marked ‘No’.
The FY13 budget classified all expenditures and revenues into categories of general fund, administration, elected officials, employee housing, public works, roads, police, EMS, fire, youth and parks, and harbor. It then breaks down these budget categories into more specific sections. The public works category of the budget includes water, wastewater, and garbage sections and itemizes all anticipated expenses and revenues for each of these services. The budget shows that water service revenue will come from hook-up and service fees and inter-fund subsidies. A subsidy specifically from the city’s general fund to the water department was necessary in years past, but no longer is; nonetheless, the budget category remains in place in case future subsidies from the general fund are needed. Budget utility expenditures include salaries, retirement, workers’ compensation insurance coverage, travel, membership dues, electricity, gas and oil, office supplies, licensing, testing charges, chemicals, maintenance, freight, and others. Most budgeted expenditures are anticipated at or slightly above the previous year’s actual totals. Similarly, most budgeted revenues are anticipated at or slightly below the previous year’s actual totals. A budget amendments are passed as needed.
A budget committee, which includes at least two council members, meets once per month and provides recommendations to the city council based on their review of a balance sheet and profit and loss report provided by the city treasurer. The profit and loss report compares budgeted and actual income and expense amounts. The recommendations made by the committee are generally accepted at the following full city council meeting. Additionally, the treasurer discusses one of the municipal grants at every budget committee meeting, and provides a verbal report. A verbal treasurer’s report is also given to the city administrator who then submits a written manager's report to the council addressing any financial discrepancies or concerns. Each department head is responsible for ensuring they remain within their budgeted expense allotment, and reports to the city administrator if there are concerns. The city administrator then passes these concerns on to the budget committee.
The utility receives its electricity from Inside Passage Electric Cooperative (IPEC), which bills the city monthly. The city provided RUBA staff with proof of electricity bill payment. Fuel is available from private businesses in the community and the city budgets sufficiently to cover fuel purchases each year. Revenue is sufficient to cover all water, wastewater, and garbage service costs, including a repair and replacement costs. The utility is considering raising rates in 2015 in order to begin financing a capital replacement fund.|