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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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No
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Monthly financial reports are prepared and submitted to the policy making board. |
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No
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The utility is current in paying all water/wastewater electric bills. |
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No
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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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No
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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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No
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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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No
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YTD revenues are at a level equal to or above those budgeted. |
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No
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YTD expenditures are at a level equal to or below those budgeted. |
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No
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A monthly manager's report is prepared. |
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No
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Budget amendments are completed and adopted as necessary. |
| Finances Comment: |
The city of Hughes has not provided RUBA with quarterly financial updates for January through March of 2013. The city of Hughes creates a budget annually listing all revenues and expenses for the utility, as well as all revenues and expenses for the city. FY13 budget shows an increase of 60,000 over FY12 bringing operating revenues to $873,884 for FY13. Water and wastewater utilities expense is estimated at $87,000 with incomes projected at around $60,000. The city supplements utility revenues with income from fuel sales to balance revenues and expenses.
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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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No
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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 utility has adopted a collection policy and follows it. The bookkeeper uses an accounts receivable system that tracks what customers owe to the city. The bookkeeper stated that past due customers usually pay after the first few warnings and that drastic measures are not needed. The accounts payable system is in place though it tracks a limited amount of bills. The payroll system is calculated correctly using the QuickBooks program. Revenue from the sale of washateria tokens and other sales are entered in cash receipt books. The city has a chart of accounts in their QuickBooks program that is easy to understand. Monthly bank reconciliations are completed by the city bookkeeper. RUBA staff suggests that the city adopt a purchasing policy and follow the steps outlined in it.
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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: |
There are no current liens reported against Hughes. Hughes has a balance due with the IRS for a penalty on 4th quarter 2012. The amount due is $358. Hughes administration made a payment on March 14 to take care of this penalty.
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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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No
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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: |
Fairbanks RUBA staff confirmed that the city has workers compensation insurance coverage as of April 10, 2013 through Alask Municipal League Joint Insurance Association. The utility has a personnel policy in place and a copy of the policy is located in the Fairbanks office. The utility has written job descriptions for the different employment positions. The city conducts personnel evaluations that are based on the written job descriptions. The city has an adequate hiring process. Personnel folders for employees only hold payroll information. The utility provides a probationary period for newly hired employees that include evaluations and training opportunities.
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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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No
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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: |
The city's ordinances identify the City of Hughes as the owner and operator of the utility. The city council meets regularly and receives reports on the utility operations. The city council enforces the utility policies when necessary. The utility manager is trained and the council approves the additional training if funds are available. The bookkeeper and operators are adequately trained. The utility has the necessary ordinances to give it the authority to operate. The utility does not have an organizational chart. The policy making body meets monthly and is involved in the utility management. The city complies with all sections of the Open Meetings Act for all meetings.
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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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No
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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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No
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The utility maintains an inventory control list. |
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No
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The utility maintains a critical spare parts list. |
| Operation of Utility Comment: |
Currenty Michael Simon is the water operator in Hughes. He has his water treatment 1, and distribution provisional certificates. Operators are involved in training and are certified or actively working towards certification. The utility has a preventative maintenance plan. The utility does not have a safety manual or hold safety meetings. The utility has not had any problems due to management issues and operates the service at the proposed level of service. The operator provides regular verbal reports to the manager, letting the manager know what is going on at the time and what may be coming up. A copy of the most recent Consumer Confidence Report is available in the Fairbanks office. The utility is not on the latest Significant Non-Compliance list (January 2012). The system is overdue for a sanitary survey. The utility does not have an inventory or critical spare parts list.
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