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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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No
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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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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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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 Stebbins adopted the FY13 budget on May 23, 2012. A copy of the approved budget was submitted to the Division of Community and Regional Affairs. The Stebbins Water Treatment System FY13 budget is included in the overall city budget. As a whole, the city budget is balanced. However, the water treatment system and honey bucket service budget is not balanced. The Annual Certified Financial Statement of Revenues and Authorized Expenditures for Year Ending June 2012 reveals that actual revenues for fiscal year 2012 were $64,033 and expenditures for the same period were $92, 176, leaving a $28,143 deficit. According to the Certified Financial Statement, the honey bucket revenues were $3,362. According to the January monthly financial report, this fiscal year the city has subsidized 96 percent of the honey bucket service. The Certified Financial Statement for FY12 shows that the washeteria ran a deficit of $27,603. The 2013 January monthly financial report shows the washeteria has not received the budgeted revenues and had expenses higher than budgeted. City staff stated that the city council uses the Norton Sound Economic Development Community Benefit Sharing funds and State of Alaska Community Revenue Sharing payments to subsidize water treatment service. The city clerk prepares and submits monthly financial reports comparing actual year-to-date revenues and expenditures to the budget to the city council on a regular basis. RUBA staff received copies of the monthly financial reports this quarter. Stebbins is part of the Norton Sound Economic Development Corporation bulk fuel purchase program. The city council ordered 25,000 gallons of heating fuel for the upcoming year and part of it is used to heat the water system and the washeteria. The FY13 budget indicates that the utility budgeted $9,228 for heating fuel. Crowley delivers fuel via barge twice a year, typically in June and early September. According to the January financial report, the year-to-date expenses exceed revenues. However, according to the city administrator, the city council subsidizes the utility when expenses are higher than revenues. According to January council meeting minutes, the water operator provided a written report regarding water production and use as well as updates on operation and maintenance of the water plant. The honeybucket service is suffering major financial losses due to lack of collection enforcement and very low collection rates.
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Capacity Indicator: Accounting Systems
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Essential Indicators
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No
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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 Stebbins does not have an ordinance that clearly delineates the collection policy for the water, wastewater and honeybucket services. However, there is a waste disposal ordinance which outlines in general terms the collection policy regarding the honeybucket services. However, the ordinance should be amended as it is outdated. RUBA staff proposed the city council adopt a comprehensive ordinance outlining the policy regarding collections. The city council has reviewed the ordinance but has not yet adopted it. The current ordinance indicates that bills will be sent to customers by the tenth of the month for the current month and are due by the tenth of the following month. The same section of the ordinance writes that any customer who is three months or more overdue in payment is encouraged to sign an agreement with the city to bring the account up-to-date within six months from the date it became overdue. The section continues stating that any customer who refuses to make such agreement or fails to abide by it is subject to action in Small Claims Court at the option of the city. RUBA staff proposed several steps to address the problem of collection for honeybucket hauling services, including an action plan. Although the city council has followed up on some RUBA staff recommendations, it made a decision to forgive all past due accounts to all honeybucket customers as of July 1, 2012 rather than enforce collections. In the last quarter, the city has not billed customers for several months because the city staff does not know how to make changes to customers accounts after the city council instructed to forgive the past due accounts. This quarter, the city resumed sending out statements to customers. RUBA staff provided the city staff with QuickBooks help line contact information and urged the city administrator to contact the help line immediately. The utility uses QuickBooks to track customers and report past due accounts and amounts. A QuickBooks Pro 2010 accounts payable is in place. Some errors were detected in calculating payroll taxes, however, the utility calculates and keeps records of the payroll payments. A cash receipt system is in place. According to city staff, the city writes a receipt for any income received and a copy of every receipt is kept in a sequentially numbered permanent receipt book. The QuickBooks chart of accounts is in need of revision.
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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 and utility staff use QuickBooks to calculate, track and report payroll tax liabilities. As of March 28, 2013 the Internal Revenue Service Taxpayer Advocacy Office reported that Stebbins and its public utility services are in compliance with federal tax filing and deposit requirements. No recorded notice of federal tax lien against the city and its utilities has been located. The Alaska Department of Labor and Workforce Development confirmed that all state tax payments are current as of March 27, 2013.
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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: |
The City of Stebbins has a workers compensation insurance policy with the Alaska Municipal League Joint Insurance Association (AMLJIA) valid through June 30, 2013. This is a comprehensive insurance which covers work-related accidents and occupational diseases as per Alaska Statutes. Proof of coverage is posted in the city office. The city personnel policies apply to all employees of the city. The city office has adequate written job descriptions for all city positions. The utility uses a written personnel evaluation process outlined in the Code of Ordinances. The hiring process is also described. Every city employee has a well-organized personnel file, which contains such documents as employee's original job application, reports on employee's work performance, and disciplinary actions. The utility provides orientation, job-training, oversight, and performance evaluation. The utility also provides for outside training opportunities. The city administrator has attended the Financial Management for Rural Utilities course and the city clerk attended an Organizational Management for Rural Utilities course, both offered through the RUBA program.
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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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No
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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: |
According to Chapter 30, Section 3 of the Stebbins Code of Ordinances all existing and proposed water tanks, piping systems and facilities are owned by the City of Stebbins. The code states that the City Council of Stebbins shall oversee operation of this department, and 'the council shall adopt rules, regulations, times, and days of use of water department facilities. However, the code of ordinances does not contain the rules and regulations regarding the management and operation of the Stebbins water treatment system. The city code was last codified on May 21, 1984. RUBA staff found an ordinance dated March 11, 2000, which briefly discussed, on two pages, the services provided, fees for services, customer base, billing and collections. This quarter, the city council has been involved in policy making for the water treatment plant, honeybucket haul, and washeteria operated by the city. The regular meeting minutes of January 2013 indicated that the city council discussed issues related to water and wastewater services. For example, the city council unanimously voted to begin charging the local clinic and Head Start program for water (0.07 per gallon) and trash. The same meeting minutes indicated that the city council reviewed the monthly financial reports showing year-to-date financial standing of the public utilities in the city. The city administrator stated the city council will also review and adopt the proposed waste disposal ordinance provided by RUBA staff. However, the city council has not enforced the collection policies outlined in the code of ordinances. The city council voted the city clerk be a part-time city and utilities bookkeeper. The city administrator and city clerk share the accounting and financial record keeping responsibilities regarding all public utility services. The city administrator acts as the general manager of all city departments. The utility has an adequately trained operator.
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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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No
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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: |
Stebbins Water Treatment System has a primary water treatment operator. The operator's Water Treatment 1 certificate has expired. The operator has made attempts to renew the certificate but has not been able to pass the exam. The utility has a peak day design capacity of 10,000 - 50,000 gallons per day. The water supply source is derived from a surface water supply, Clear Lake, located about four miles from the city limits. The system uses a single unit bag filter as well as granular media to filter the raw water. The system uses hypochlorite to disinfect the water and then stores it in a water storage tank. The utility has a preventive maintenance plan at the city office, but there was no copy of it at the facility. The water operator showed a water usage form which listed the housing units, the school, and the clinic which all use piped water service connections. The school and the clinic have an arctic box. Written reports do not appear to be produced on a monthly basis. The operator provides both verbal and written status reports to the city administrator on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not listed on the most current Significant Non-Complier List. Although the water operator indicated that the city administrator and city council allocate funds when the utility needs critical spare parts, the utility does not maintain an inventory control list or a critical spare parts list.
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