|The City Council is actively working to enforce its utility ordinance and collection policy. Delinquent customers are first offered a payment plan. Disconnection of water service continues to be a final resort, but recent Council actions have greatly improved collections. In the past year, the Council has passed an ordinance where any citizen with a delinquent utility account will also be denied access to other city services, including internet and harbor. At the March 23, 2007 City Council meeting, the Council passed a resolution adding a finance charge based upon the State's allowable interest rate to overdue utility bills. The City Council has directed staff to enter into a contract with Ketchikan Credit Bureau (KCB) for when other collection options have failed. A contract for collection services between KCB and the City has been agreed upon.
The City routinely bills its customers on the 10th of each month and bills become delinquent after 45 days. The Treasurer is currently using QuickBooks accounting software for utility billing, accounts receivable, accounts payable, and payroll; however, she continues to rely on handwritten budgets and financial reports. A manual receipt system is used to record incoming funds. Funds are subsequently entered into QuickBooks. An adequate chart of accounts allows accurate tracking of expended funds through the QuickBooks system. Monthly bank reconciliations are performed and are current.
The utility manager has a purchase order system in place and all purchase order requests are compared to budgeted amounts prior to approval.