Quarterly Report: 2012, April - June (Q4), Mountain Village

Mountain Village 
Ken Berlin  
DCRA Regional Office:
Gov't Type:
Second Class City 
Agreement Date:
City of Mountain Village 
Assessment Status:
Assessment Date:
Exp Date:
Last Updated:
Community Sanitation Overview:
The City Council operates and maintains the Piped Water and Sewer system to 165 households and commercial users. This system was built in the 1970s. It has four wells from which it gets its water supply. Water is distributed by two loops, a lower and upper loop. Two main pumps, middle and upper pump houses circulate water. Water is stored in two 100,000 gallon storage tanks. The wastewater system is a Rotating Biological Contractor (RBC) but currently not functional. Wastewater is being drained into the Yukon River. 
RUBA Status & Activities This Qtr:
The City has a balanced FY12 budget on file and finance reports up to May 2012 are on file, but no meeting minutes. The new bookkeeper worked for the city previously and has returned to the position. 9/19/2011 Mr. Rolfzen, requested assistance in looking over a CFS for FY10 submitted by the City of Mountain Village. The resolution was for FY10 but the reporting formats were for FY11 and in comparing the FY10 budget and the CFS for FY10 the numbers were confusing. It appears the FY10 budget figures in the CFS were input where the actuals revenues and expenditures should be and the actuals were in the budget figures column. The city bookkeeper is working on this to correct the FY10 CFS. May 14, 2012 The temporary city clerk called and said the city manager was out on sick leave for at least a couple of months. The city council are considering hiring a temporary city manager and the clerk wanted some guidelines in the hiring process. Staff recommend the Mayor with the city council approval post the job opening and hire a city manager. Also to follow personnel ordinance. May 23, 2012 RUBA staff got a call from the City of Mountain Village's bookkeeper concerning a FY12 budget amendment. She wanted to know if the City could make some changes to the FY12 budget to off set some line item over expenditures. She also worked on submitting the FY13 community revenue sharing application, FY11 certified financial statement and PILT resolution. June 14, 2012, RUBA staff requested the following: 1. Financial reports that reflect FY 2012 budget's revenues and expenditures with monthly and year to date figures, including meeting minutes where the Council reviewed the finance reports. 2. IRS release form.  
RUBA Activities for the Coming Qtr:
Finance reports are current, but need meeting minutes up to May 2012. Continue to monitor for compliance.
Essential Indicators:
25 of 26
Sustainable Indicators:
25 of 27
Total Score:
50 of 53


Essential Indicators
Answer Question
Yes All revenues and expenses for the utility are listed in the utility budget.
Yes The utility has adopted a balanced realistic budget.
No Monthly financial reports are prepared and submitted to the policy making board.
Yes The utility is current in paying all water/wastewater electric bills.
Yes The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply.
Yes The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.
Sustainable Indicators
Answer Question
Yes The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs.
Yes YTD revenues are at a level equal to or above those budgeted.
Yes YTD expenditures are at a level equal to or below those budgeted.
No A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
The City Manager and Finance Director prepare and manage the City of Mountain Village's financial information. The FY 2012 budget is on file. The FY2012 budget is currently being revised/amended. Finance reports are up to date to May 2012, but no meeting minutes. Requested copies of meeting minutes reflecting the City Council reviewing the financial reports. AVEC billing is current.

Accounting Systems

Essential Indicators
Answer Question
Yes The utility has adopted a collection policy and actively follows it.
Yes The utility bills customers on a regular basis.
Yes An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.
Yes An accounts payable system is in place.
Yes The payroll system correctly calculates payroll and keeps records.
Yes A cash receipt system is in place that records incoming money and how it was spent.
Yes The utility has a cash disbursement system that records how money was spent.
Sustainable Indicators
Answer Question
Yes A chart of accounts is used that identifies categories in a reasonable, usable manner.
Yes Monthly bank reconciliations have been completed for all utility accounts.
Yes The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts.
Accounting Systems Comments
The City does follow its collection policy and enforces it. The utility customers are billed on a monthly basis. Accounting system is in QuickBooks Pro but current Bookkeeper needs to get more training on the system.

Tax Problems

Essential Indicators
Answer Question
Yes The utility has a system to accurately calculate, track, and report payroll tax liabilities.
Yes The utility is current on filing tax reports.
Yes The utility is current on making tax deposits.
N/A If there are any past due tax liabilities or recorded tax liens, a lien release has been issued or a repayment agreement has been signed and repayments are current.
Tax Problems Comments
According to the bookkeeper the reports are all current and payroll tax deposits are made after every payroll. IRS compliance confirmed on June 16, 2012. State DOL verified compliance up to March 31, 2012. No tax liens.

Personnel System

Essential Indicators
Answer Question
Yes The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
Yes The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
Yes The utility has adequate written job descriptions for all positions.
Yes The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.
Yes The utility has an adequate written hiring process.
Yes The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.
Yes The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.
Yes The utility provides training opportunities to staff as needed and available.
Personnel System Comments
The City is insured by the Alaska Municipal League/ Joint Insurance Association, Inc. effective to July 2012.

Organizational Management

Essential Indicators
Answer Question
Yes The entity that owns the utility is known; the entity that will operate the utility is set.
Yes The policy making body is active in policy making of the utility.
Yes The policy making body enforces utility policy.
Yes The utility has an adequately trained manager.
Yes The utility has an adequately trained bookkeeper.
Yes The utility has an adequately trained operator or operators.
Yes The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate.
Sustainable Indicators
Answer Question
Yes The utility has adopted an organizational chart that reflects the current structure.
Yes The policy making body meets as required.
Yes The utility complies with the open meeting act for all meetings.
Organizational Management Comments
The City of Mountain Village owns and operates the piped water and sewer system. The City Council is the policy making body for the utility. The City Manager started working for the City in 11/2009. The bookkeeper is experienced and competent. The main utility operator on full time and is adequately trained. They have two back-up operators; one is OIT certified in water distribution and a certificate to Introduction to Small Water Systems. The other backup has a certificate to Introduction to Small Water Systems and Water Treatment Plant Maintenance Training. The City has adopted a water utility ordinance that gives it the authority to operate, and it covers most of the aspects needed in a utility ordinance. Along with a collection policy, the ordinance includes policies on service area, level of service, customer agreements, the utility's responsibilities, the customers' responsibilities, billing procedures, shut-off procedures, and penalties for violating provisions of the ordinance. This ordinance was passed in 1989 and is being updated.

Operation of Utility

Essential Indicators
Answer Question
Yes The utility operator(s) are actively working towards necessary certification.
Yes The utility has a preventative maintenance plan developed for the existing sanitation facilities.
Sustainable Indicators
Answer Question
Yes The manager receives a monthly O&M report from the utility operator and routinely "spot checks" the facilities to see that the maintenance items are being completed.
Yes The utility has a safety manual and holds safety meetings.
Yes Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.
Yes The utility is operating at the level of service that was proposed.
Yes The operator provides status reports to the manager on a routine basis.
Yes The utility has completed and distributed its "Consumer Confidence Report".
No The utility is not on the "Significant Non-Complier" (SNC) list.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
The operators need the necessary certification to operate the current utility. AML/JIA holds monthly safety meetings with the City staff. SNC failed to sample for nitrate and other contaminates and on boil water notice since May 1, 2012. System ground water wells cannot provide enough water during winter so system resorts to surface water causing boil water notice. The preventative maintenance plan, inventory control list and critical spare parts list are in the file.