|The FY 15 budget, projected revenues and expenses reflect a balanced city budget. The budget includes sections such as locally generated revenues, grant revenues, and other outside revenues such as state revenue sharing funds. It includes expenditure sections for capital projects, administration, insurance, renovation and maintenance of city property, and a section regarding city utilities. However, there are some missing line items, and items of concern for the FY15 budget expenditures, most notably is the lack of an electric line item and a $5,000 reduction in fuel costs. The city utilities are clearly separated within the city's overall budget, but utility expenses and income are not compared in a separate enterprise budget. Thus it may not be clear to the utility's governing body upon review how exactly the city is balancing the utility's budget. The city projects a revenue ($6,300) far less, than projected expenses of the water utility ($43,950). The utility is not drawing enough revenue through user-fees to cover operating expenses, such as parts, chemicals, maintenance, labor, training, and testing. However, the city has successfully subsidized the utility with income from state revenue sharing programs. The utility has an informal 10-year plan for water subsidies and changes in the event of a reduction or loss of community revenue sharing program funding, though they have not formalized this plan. The utility charges a flat rate to all customers (both commercial and residential) of $100 per year. The utility has been charging this rate since 2007; previously the service was free. The budget reflects sufficient projected funding of repair and replacement costs for the utility, and the city describes themselves as always over-budgeting in most areas as a precaution. Indeed, the FY15 budget makes comparisons between the previous year's actual expenses and the coming year's projections, which are reflected in the utility estimates, slightly more money for repair and maintenance costs than were expended in the previous year, but a considerable less amount of money for fuel. The city reports they budget for utilities based on their 'most expensive year'.
The city clerk, who also functions as the utility's clerk, provides monthly profit and loss year-to-date reports for the city council prior to every meeting. The expenditures and revenues are reflected in the monthly financial statements and compared to the budget. Utility staff report that a manager's report is provided by the city clerk to the mayor prior to every council meeting verbally and that this is documented in the city council meeting minutes. As of February, 2014, the utility had collected $400 more than the budgeted amount. As the utility charges customers once per year, this will likely be the full amount collected for FY14. The budget shows a general increase in expenditures/revenues from FY14 to FY15.
The City Of Port Alexander has submitted documentation showing budget amendments are completed and adopted as necessary.
The utility's power is provided on-site by diesel fuel generators. The community receives fuel on a regular basis by either a commercial provider or the Coast Guard. Individuals throughout the city, including the city and utility, purchase the fuel at point of shipment. The city and utility have not had any fuel shortages. When the commercial provider has been unable to provide a shipment, the Coast Guard has stepped in to provide the service. Shipments are sometimes delayed by weather, which has caused shortages for some individuals in the city. There is no bulk-fuel storage option, nor any local fuel retailers.|