|The Gambell Water Treatment System's FY12 budget was adopted by the deadline. The council has recently adopted the FY13 budget and it lists all revenues and expenditures. The utility's revenues are $221,520 and expenditures are $196,330, including $10,594 in washeteria expenditures which are part of the overall utility budget. However, the indicated expenditures do not include fuel expense. For many years, the city council has heavily subsidized the utility. The city council has used the Norton Sound Economic Development Corporation Community Benefit appropriation to fund the utility. The city council voted to continue appropriating subsidies to the utility. In the last fiscal year, the city council set aside $80,500 to purchase fuel for all city facilities. This year's fuel expense will be approximately the same. The utility has sufficient fuel to last until the next fuel delivery.
For many months, the utility clerk has not provided monthly financial reports comparing year-to-date revenues and expenditures to the budgeted funds. However, the regular meeting minutes for the month of June 2012 indicated that the utility clerk provided the city council with such a report. The clerk's report also included total water use for the month of May, fuel used and the remaining amount of fuel. According to the most recent invoices (June, 2012) from the electric utility (AVEC), there are past due amounts totalling $14,781. However, the utility clerk sent a payment to AVEC in June. According to the most recent available financial report (June 2012), year-to-date expenses exceed revenues by $31,549. This report includes the last six months from January 1, 2012 to June 30, 2012. The utility does not receive sufficient revenues from user fees to cover operating expenses and repair and replacement costs. However, the city council provides the utility with subsidies or borrows money to assist it in difficult financial times. The year-to-date revenues are not at the level equal to or above those budgeted and the year-to-date expenditures are not at a level equal to or below those budgeted. In June 2012, the utility clerk, who is also the utility manager, provided the city council with a verbal monthly report on the operation and management of the utility.