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Capacity Indicator: Finances
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Essential Indicators
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Yes
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All revenues and expenses for the utility are listed in the utility budget. |
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Yes
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The utility has adopted a balanced realistic budget. |
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Yes
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Monthly financial reports are prepared and submitted to the policy making board. |
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Yes
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The utility is current in paying all water/wastewater electric bills. |
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Yes
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The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply. |
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Yes
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The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. |
Sustainable Indicators
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Yes
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The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs. |
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Yes
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YTD revenues are at a level equal to or above those budgeted. |
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Yes
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YTD expenditures are at a level equal to or below those budgeted. |
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Yes
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A monthly manager's report is prepared. |
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Yes
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Budget amendments are completed and adopted as necessary. |
| Finances Comment: |
The City of Hoonah's fiscal year follows the calendar year January 1 to December 31. On February 15, 2011, the Hoonah City Council adopted a detailed, balanced, and realistic FY11 budget. The budget included general government operation, community services departments, and enterprise funds.
The City of Hoonah provides financial reports including a budget sheet, and revenues and expenditures reports comparing revenues and expenditures to the budgetted amount, including information regarding the precentage of the fiscal year lapsed. Different projects and programs are budgetted and accounted for individually. For instance, water operations are discussed in a 'water fund', where revenues include 'water revenue', 'late charges', and 'water hookup fee'; and expendituers include an extensive list of applicable operating costs. As of December 17, 2012, revenues for the water operations for the year were at 96.9% budgetted amounts, and expenditures were at 77.0%; while revenues for sewer operations were at 97.1% budgetted amounts, and expenditures were at 76.7%. Sufficient revenues were obtained to finance all expenses for both the water and sewer operations for the year. Excess revenues are placed in water and sewer fund bank accounts, saved for future water and sewer related expenditures.
The finance committee of the council meets once a month with the utility bookkeeper to review financial reports and current budget information. The vice-mayor brings the information to the rest of the council at their regular monthly meeting. The council received financial information in their monthly meeting packets, including a register of expenses and revenues.
The city purchases its power from the Inside Passage Electric Cooperative (IPEC) and is current on all electricity bills through December 2011. Electricity accounts for approximately 8% of the overall costs associated with operating the water and wastewater utilities in Hoonah.
The community has a bulk fuel facility owned by Hoonah Trading Company which maintains propane, gasoline, and diesel storage tanks sufficient to meet the community's needs. Hoonah Trading receives its fuel shipments from Delta Western about every two to three weeks. The city has a 'keep full' contract with Hoonah Trading with adequate funds budgeted for fuel purchases. Hoonah Trading Post reports no problems with keeping up with fuel needs in the community.
In recent years, utility revenue projections exceeded expenditures and the city did not need to subsidize the utility with interfund transfers from the general fund. In the FY11 budge the city has provided for interfund transfers totaling $80,481 to balance the water, sewer, and garbage collection budgets. This interfund transfer is approximately 40% less than the transfers made in FY10. Hoonah's financial reports show the YTD water revenues to be higher than anticipated in the budget.
The City provides water, wastewater, and solid waste utility services to the local population for the following combined fees (including sales tax):
-Regular residential: $122.26 per month
-Senior citizen residential: $74.30 per month
There is also a metered rate structure for large volume users which include Hoonah City Schools, Hoonah Cold Storage, and Point Sophia.
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Capacity Indicator: Accounting Systems
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Essential Indicators
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Yes
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The utility has adopted a collection policy and actively follows it. |
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Yes
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The utility bills customers on a regular basis. |
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Yes
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An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. |
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Yes
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An accounts payable system is in place. |
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Yes
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The payroll system correctly calculates payroll and keeps records. |
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Yes
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A cash receipt system is in place that records incoming money and how it was spent. |
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Yes
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The utility has a cash disbursement system that records how money was spent. |
Sustainable Indicators
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Yes
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A chart of accounts is used that identifies categories in a reasonable, usable manner. |
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Yes
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Monthly bank reconciliations have been completed for all utility accounts. |
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Yes
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The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. |
| Accounting Systems Comment: |
The City of Hoonah has adopted and follows a collections policy as detailed in Title 13 of the Hoonah Municipal Code. RUBA staff observed the city's collections policy in effect as city staff provided maintenance workers with a list of delinquent accounts to be disconnected.
The collection policy establishes a $5.00 late fee and a simple interest charge of 1 percent per month for all unpaid accounts 20 days or more in arrears. This interest charge exceeds the Alaska statutory limit of 10.5 percent per year.
For those accounts that continue to be unpaid, the city terminates utility service 10 days after giving written notice and an opportunity for a public hearing. When service is terminated, a $30.00 disconnection fee and a $30.00 reconnect fee are assessed. Restoration of service after discontinuance for nonpayment of bills is made only after payment of current and past due charges and payment of reconnect fees have been made. In addition, customers having their service reconnected after discontinuance are required to provide a $100.00 deposit on top of the initial water and sewer deposit.
The city bills customers on a monthly basis for services received during the preceding month. Payments are due immediately upon receipt of the monthly statement. If payments are not received by the last business day of the month, the entire unpaid balance is considered delinquent. Utility bills list charges for water, wastewater, and solid waste services separately in addition to the prior month's account balance. This practice is now consistent with Hoonah Municipal Code 13.04.030, which requires each utility service to be listed separately.
Caselle accounting software is used in Hoonah's accounting system. The Caselle software was specifically designed for municipal and utility applications and incorporates several integrated and expandable modules for general fund accounting, utility billing and control, and payroll. The accounts payable module issues checks, manages vendor information and interfaces with requisitions, purchase orders, and general ledger modules to enable full encumbrance accounting. Caselle's accounts receivable module maintains customer account and payment information. It also documents customer payments and reports past due accounts. Hoonah's Caselle software meets payroll reporting requirements for Alaska and provides annual IRS Circular E updates.
Additional accounting procedures include the accounting technician completing monthly bank reconciliations and reports. A purchase order system is used for all purchases that requires prior approval by the mayor or council depending on the purchase amount. The utility bookkeeper reports that all approved purchases are compared to budgeted amounts. If necessary, budget amendments are formally adopted.
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Capacity Indicator: Tax Problems
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Essential Indicators
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Yes
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The utility has a system to accurately calculate, track, and report payroll tax liabilities. |
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Yes
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The utility is current on filing tax reports. |
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Yes
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The utility is current on making tax deposits. |
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N/A
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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 Comment: |
The City of Hoonah uses Caselle accounting software to calculate, track, and report its payroll liabilities. RUBA staff verified on March 19, 2013, that Hoonah is current in its tax payments to the Alaska Department of Labor and Workforce Development. The IRS confirmed on March 11, 2013, that the City of Hoonah is in compliance with federal employment and excise tax filing requirements, and has no Tax Lien at this time.
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Capacity Indicator: Personnel System
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Essential Indicators
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Yes
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The utility has a posted workers compensation insurance policy in effect. |
Sustainable Indicators
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Yes
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The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language. |
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Yes
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The utility has adequate written job descriptions for all positions. |
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Yes
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The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. |
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Yes
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The utility has an adequate written hiring process. |
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Yes
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The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. |
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Yes
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The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations. |
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Yes
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The utility provides training opportunities to staff as needed and available. |
| Personnel System Comment: |
RUBA staff verified on March 1, 2013, that the city currently carries workers' compensation insurance through AMLJIA. The policy covers work-related accidents and occupational diseases up to the Alaska statutory limit for each occurrence. A copy of the workers' compensation insurance policy is posted in accordance with state statute at the city hall, the water treatment plant, and the public works shop.
The City of Hoonah has a well established and well-implemented personnel management system including personnel policy handbook adopted by resolution by the utility's governing body. Every employee is required to submit a signed statement that they have read and understand this handbook. The city's written hiring procedure is detailed in Chapter 3.48 of the municipal code. Job descriptions are up to date and the personnel files are well organized with all necessary employee documents. The city provides annual evaluations and ample professional training opportunities for all employees.
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Capacity Indicator: Organizational Management
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Essential Indicators
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Yes
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The entity that owns the utility is known; the entity that will operate the utility is set. |
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Yes
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The policy making body is active in policy making of the utility. |
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Yes
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The policy making body enforces utility policy. |
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Yes
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The utility has an adequately trained manager. |
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Yes
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The utility has an adequately trained bookkeeper. |
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Yes
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The utility has an adequately trained operator or operators. |
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Yes
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The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. |
Sustainable Indicators
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Yes
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The utility has adopted an organizational chart that reflects the current structure. |
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Yes
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The policy making body meets as required. |
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Yes
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The utility complies with the open meeting act for all meetings. |
| Organizational Management Comment: |
Hoonah residents are aware that the city owns and operates the water, wastewater, and solid waste utilities. The city council is active in enforcing the utility policies adopted in Chapter 13 of the HMC.
The mayor and city administrative staff are trained in the organizational and fiscal management of the utility. The city administrator has attended the RUBA UTM Plannign Management training. The city/utility clerk has undertaken training in records retention, drafting municipal acts, parliamentary procedure, and the posting of meeting notices. The city's treasurer attended the RUBA 32-hour Financial Management for Rural Utilities training in Ketchikan August 15-19. Members of the utility's governing body also participated in various RUBA trainings, and attend an annually-provided 2-day elected officials training in the community. The utility operators have been certified at the appropriate levels to operate the city's level-2 water treatment and level-1 water distribution, wastewater collection, and wastewater treatment facilities. The city clerk and city administrator were both registered to attend a RUBA UTM Utility Clerk training in Juneau, April 2-6, 2012, but were not able to attend. They are interested in any future training opportunities.
The city has adopted an organizational chart that reflects the current structure, the city council meets as required, and the city clerk properly posts meeting notices in accordance with Alaska's Open Meetings Act.
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Capacity Indicator: Operation of Utility
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Essential Indicators
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Yes
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The utility operator(s) are actively working towards necessary certification. |
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Yes
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The utility has a preventative maintenance plan developed for the existing sanitation facilities. |
Sustainable Indicators
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Yes
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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. |
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Yes
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The utility has a safety manual and holds safety meetings. |
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Yes
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Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. |
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Yes
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The utility is operating at the level of service that was proposed. |
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Yes
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The operator provides status reports to the manager on a routine basis. |
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Yes
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The utility has completed and distributed its "Consumer Confidence Report". |
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Yes
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The utility is not on the "Significant Non-Complier" (SNC) list. |
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Yes
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The utility maintains an inventory control list. |
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Yes
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The utility maintains a critical spare parts list. |
| Operation of Utility Comment: |
Hoonah's water and wastewater utility staff consists of four utility operators as well as a public works supervisor who is responsible for overall utility operations. Three of the operators are certified with the following endorsements:
The utility operator Ronny Roberts:
Wastewater Collection 2 Exp. 12/31/14
Wastewater Treatment 2 Exp. 12/31/14
Water Distribution 2 Exp. 12/31/14
Water Treatment 2 Exp. 12/31/14
The utility operator Billy Miller:
Wastewater Collection 1 Exp. 12/31/13
Wastewater Treatment 1 Exp. 12/31/13
Water Treatment 1 Exp. 12/31/13
Water Distribution 1 Exp. 12/31/13
The operators maintain a preventive maintenance plan for the sanitation facilities contained within the utility operations manual.
The lead water operator and public works supervisor communicate with each other in-person on a daily basis. The lead operator also maintains a written log of maintenance activities and concerns. The public works supervisor prepares monthly written reports and conducts facilities 'spot checks' to verify that maintenance items are being completed. The public works supervisor has reported to RUBA staff that the utility retains a safety manual and holds safety meetings as part of the AMLJIA risk management program.
The public works supervisor has also reported that the water utility is operating at the proposed level of service. Neither the water nor wastewater utility has suffered any major problems or outages due to management issues. The water utility completes and distributes its Community Confidence Report (CCR) and is not on the EPA's Significant Non-Compliance List.
On top of these safety measures, the water operators also maintain an adequate level of tools, supplies, and spare parts and manage the stock through an inventory control list and a critical spare parts list.
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