|The City of Kasaan adopted its FY15 budget June 17 after a first reading on May 20. The budget includes FY14 estimated actuals and anticipated FY15 figures. The budget is separated into revenues, administration and finance, bulk fuel, garbage, parks and recreaction, post office, apartment, streets and roads, VPSO, EMS, fire, water, and individual grants. The FY15 budget is an improvement on the FY14 budget in that some items, such as workers compensation and communications, have been appropriately divided between departments, rather than fully expensed to administration. The city anticipates $6,000 more in revenue in FY15 than FY14. The mayor hopes to raise rates in the coming month or two, but will adopt a budget amendment taking off the additional $6,000 if he is unsuccessful at raising the rates. The utility appropriately anticipates more expenses in FY15, including significant increases to repair and maintenance and testing.
The utility treasurer provides financial reports to the council at all regular meetings, including a balance sheet, profit and loss comparing budgeted and actual amounts, and a written narrative report. The water operator also provides reports monthly to the council and the utility manager, the mayor, attends all regular council meetings to provide any additional information needed. Budgeted amounts appropriately reflect an expected marginal increase in revenues from user fees and increases in certain expenses such as payroll, electricity, fuel, maintenance, and internet that will come partly from the community’s new water treatment plant being brought online. Reductions were made in travel expenses from FY13 to FY14.
As of June 12, 2014, 84 percent of the anticipated revenue for water was received. This not likely to increase substantially before the fiscal year end. However, only 71 percent of anticipated expenditures were spent. The total water utility deficit is approximately $5,000, easily covered by a transfer from general fund revenues such as Community Revenue Sharing and Payment in Lieu of Taxes (PILT). The city last raised its water rates in 2008 and is currently undergoing a water utility rate study to consider increasing water rates in order to cover the costs of the new treatment plant. The city charges its 19 regular residential customers at a rate of $60 per month for sanitation services and five senior customers at a rate of $40 per month. Seven commercial/school customers are charged $70 per month and one non-profit customer is charged $25 per month. From December 2012 through June 2013, the utility averaged a monthly utility bill collection rate of 94 percent. Some of the past-due customers on the books no longer live in the community, though the city continues its efforts to collect the amounts they owe.
The City of Kasaan receives fuel shipments by road from Petro Marine, as needed. When the company is driving through the area, they will often stop to top off the city's tanks. The city then distributes fuel to the rest of the community, charging a slightly higher rate than what it paid. The city sufficiently budgets each year for all fuel-related needs. Electricity is provided to the city by Alaska Power and Telephone Company; RUBA staff has confirmed that the city’s payments to the electric company are current.|