Quarterly Report: 2014, April - June (Q4), Shaktoolik

Community:
Shaktoolik 
Staff:
Leroy Seppilu  
DCRA Regional Office:
Nome regional office 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Shaktoolik 
Population:
272 2013 DCCED Certified Estimate 
Assessment Status:
Assessment Completed 
Assessment Date:
1/21/2010 
Exp Date:
 
Last Updated:
7/8/2014 
Community Sanitation Overview:
Water is pumped three miles from the Togoomenik River to the pumphouse, where it is treated and stored in a 848,000-gallon insulated tank adjacent to the washeteria. A piped water and wastewater collection system services most homes. 75 percent of households have complete plumbing and kitchen facilities. The school is connected to city water, and has received funding to develop a wastewater treatment system to serve the entire community. The city burns refuse in an incinerator. The landfill needs to be relocated; the current site is not permitted. 
RUBA Status & Activities This Qtr:
At the request of the city clerk, RUBA staff traveled to Shaktoolik on May 6-8 to provide technical assistance and training for the city clerk. RUBA staff assisted with completion of the FY15 budget, FY15 Community Revenue Sharing Application and the FY13 Certified Financial Statement. RUBA staff made recommendations to make some changes to the water and wastewater department's revenues and expenditures. RUBA staff introduced a sample monthly financial report in Excel Spreadsheet format to the city clerk. RUBA staff showed her how it can be implemented. 
RUBA Activities for the Coming Qtr:
RUBA staff will make at least one trip to Shaktoolik to continue city clerk duties and responsibilities training. The city council acts as a utility board for the water and wastewater department. RUBA staff will provide an one-on-one election training for her. RUBA staff has recommended that at least one more on-site QuickBooks training be provided to the city clerk with emphasis on making monthly financial reports using the data from QuickBooks.
Scores:
 
Essential Indicators:
25 of 26
Sustainable Indicators:
25 of 27
Total Score:
50 of 53

Finances

Essential Indicators
Answer Question
Yes All revenues and expenses for the utility are listed in the utility budget.
Yes The utility has adopted a balanced realistic budget.
No Monthly financial reports are prepared and submitted to the policy making board.
Yes The utility is current in paying all water/wastewater electric bills.
Yes The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply.
Yes The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.
Sustainable Indicators
Answer Question
Yes The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs.
Yes YTD revenues are at a level equal to or above those budgeted.
Yes YTD expenditures are at a level equal to or below those budgeted.
Yes A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
The City of Shaktoolik has adopted a balanced and realistic budget. All revenues and expenses for the utility are listed within the budget. The city completed FY '15 budget in a timely manner and is fairly comprehensive. Traditionally, the mayor is assigned by the city council to work on the budget, the certified financial statement and the Revenue Sharing application. Most of the forms are near completion and the FY '15 budget should be completed by mid-June, 2014. The new City clerk does not know how to make monthly financial reports yet. The city is current with all the water/wastewater electric bills, as the clerk makes effort to pay all the utility bills received by the city. The city has adequate amount of fuel oil for this winter. At least 15,000 gallons of diesel was ordered and expected to be delivered to the city by early September, 2014. The City's annual revenues for the Water and Waste-water Department is normally around $52,000, with about the same amount in expenditures. The City has not made any amendments to the FY '14 budget current budget. But the city has made amendments as needed in the past.

Accounting Systems

Essential Indicators
Answer Question
Yes The utility has adopted a collection policy and actively follows it.
Yes The utility bills customers on a regular basis.
Yes An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.
Yes An accounts payable system is in place.
Yes The payroll system correctly calculates payroll and keeps records.
Yes A cash receipt system is in place that records incoming money and how it was spent.
Yes The utility has a cash disbursement system that records how money was spent.
Sustainable Indicators
Answer Question
Yes A chart of accounts is used that identifies categories in a reasonable, usable manner.
No Monthly bank reconciliations have been completed for all utility accounts.
No The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts.
Accounting Systems Comments
The new utility clerk now uses QuickBooks Pro to bill water/wastewater customers after two on-site trainings with QuickBooks by a RUBA sponsored QuickBooks trainer. As required by city ordinance, the utility regularly sends out monthly water/wastewater utility bills to all the customers using Quickbooks. The clerk keeps track of all the utility customers and reports past dues with total amounts to the city council. The utility clerk keeps records of all the utility bills and pays the bills regularly and on time. The utility clerk uses QuickBooks for payroll and payroll record-keeping. The utility subscribes to the monthly payroll tax updates for QuickBooks. The city uses QuickBooks to record incoming revenues and how it is spent. The utility clerk keeps track of how the funds are spent. Chart of accounts are used to track funds received and expenditures spent. The chart of accounts are used for monthly financial reports as well as for preparation of the annual budget. The utility clerk keeps up with bank reconciliation on a monthly basis. A purchase order from QuickBooks is used by city employees to make purchases from various vendors.

Tax Problems

Essential Indicators
Answer Question
Yes The utility has a system to accurately calculate, track, and report payroll tax liabilities.
Yes The utility is current on filing tax reports.
Yes The utility is current on making tax deposits.
N/A 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 Comments
The utility clerk uses QuickBooks to accurately and automatically calculate, track and report tax liabilities. The utility is current of filing IRS Form 941 and ESC quarterly tax reports. The utility is current on making tax deposits to IRS and Employment Security Division. Payments are made right after payrolls are made.

Personnel System

Essential Indicators
Answer Question
Yes The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
Yes The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
Yes The utility has adequate written job descriptions for all positions.
Yes The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.
Yes The utility has an adequate written hiring process.
Yes The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.
Yes The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.
Yes The utility provides training opportunities to staff as needed and available.
Personnel System Comments
The city has workers compensation coverage through Alaska Municipal League Joint Insurance Association. The coverage is current to June 30, 2014. The city council has renewed its workers' compensation coverage to July 1, 2015. The utility uses the city's personnel policies, which are fairly comprehensive. The utility has job descriptions for the utility clerk, water plant operator and the alternate water plant operator. The mayor evaluates all the city employees annually, including the utility employees. The evaluation notices are made by the city clerk to the mayor. The mayor reviews the job description with the employees and the evaluation is finalized by both the mayor's signature and the employee may concur or not concur. The city council follows the hiring process as set in the personnel policies with a two week notice for vacancies, review of applications, interviews and then hire if a qualified applicant is found. The city has a fairly good personnel folders with the necessary and required forms in all the employees' files. The probationary period is three months for city hired employees. The utility provides training for all utility employees starting with orientation of the new employees, training and oversight and evaluation after three months. The utility provides outside training as the opportunities are available, especially from RUBA sponsored trainings and workshops.

Organizational Management

Essential Indicators
Answer Question
Yes The entity that owns the utility is known; the entity that will operate the utility is set.
Yes The policy making body is active in policy making of the utility.
Yes The policy making body enforces utility policy.
Yes The utility has an adequately trained manager.
Yes The utility has an adequately trained bookkeeper.
Yes The utility has an adequately trained operator or operators.
Yes The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate.
Sustainable Indicators
Answer Question
Yes The utility has adopted an organizational chart that reflects the current structure.
Yes The policy making body meets as required.
Yes The utility complies with the open meeting act for all meetings.
Organizational Management Comments
The city council acts as a utility board. The council is active in policy making of the utility. The council enforces its utility policies. The city clerk acts as the utility clerk and manager. The water treatment operator is certified to Provisional 1 Water Treatment Certification. The utility has a very comprehensive water/wastewater ordinances that authorizes the utility to operate. The City Council has yet to make an organizational chart, although when a new hire is made, part of orientation is to let the new employees know who the supervisor(s) are. The City Council hold regular meetings at least once a month and special meetings as needed. All city council meetings and work sessions are advertised to the public by at least three public notices around the community.

Operation of Utility

Essential Indicators
Answer Question
Yes The utility operator(s) are actively working towards necessary certification.
Yes The utility has a preventative maintenance plan developed for the existing sanitation facilities.
Sustainable Indicators
Answer Question
Yes 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.
Yes The utility has a safety manual and holds safety meetings.
Yes Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.
Yes The utility is operating at the level of service that was proposed.
Yes The operator provides status reports to the manager on a routine basis.
Yes The utility has completed and distributed its "Consumer Confidence Report".
Yes The utility is not on the "Significant Non-Complier" (SNC) list.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
The City of Shaktoolik is not on the latest 2014 Significant Non-Compliance list. The utility operator is certified as Provisional 1. The utility has a preventative maintenance plan for the sanitation facility. The utility clerk receives O&M reports from the utility operator. The city employees participate in AML-JIA's quarterly telephonic safety meetings. The utility has not had any management related issues. The utility operates at the level of service that was proposed. If issues at the water treatment plant and sewer treatment plant are identified, the utility operator makes a report to the utility clerk and the mayor or any council member that may be available. The city is current with CCR and is not on the SNC list. The utility operator works with the Remote Maintenance Worker (RMW) to maintain an inventory control list and a critical spare parts list.