|The city follows the State's fiscal year. The city adopted its FY15 budget May 13, 2014 after an April 1 first reading. FY14 estimates are not provided, as actual revenues and expenses for FY14 have not been thoroughly and accurately input into the city's QuickBooks file (see further discussion in the next paragraph). FY15 anticipated figures were assembled by the city administrator, interim bookkeeper, finance committee, and appropriate department heads based on FY13 figures, what is available for FY14 figures, and anticipated changes in the coming year. The figures appear realistic when compared to FY13 figures. The budget is separated into departments including general, council, public safety, roads, harbor, utilities, and revenues. An additional document was provided for the council, displaying anticipated changes in employee wages and withholdings, to provide a basis for anticipated salaries and wages. The utility budget appropriate accounts for all anticipated expenses and revenues, increasing expenditures such as salaries, worker's compensation, and travel. Utility payments are safety anticipated to be approximately the same in FY15 as FY14, although rates are increasing between these two years.
Normal procedure is for the city’s bookkeeper to provide a profit and loss report comparing budgeted and actual amounts to the council finance committee, which meets before all full council meetings to review finances. The bookkeeper then provides a full report at the regular council meeting. The bookkeeper and city administrator, who serves as the utility manager, both attend the finance committee meeting and provide verbal reports, as well as written reports when requested. However, this practice has not taken place since July, as the bookkeeping data entry has fallen behind due to the loss of the city's bookkeeper. A new bookkeeper has also been hired and is in the training process. RUBA staff has created an Excel form which the bookkeeper will be able to use to input all monthly expenses and revenues, which will then automatically compare expenses and revenues to budgeted amounts. The city will begin using this form in July 2014.
Kake's electricity is provided by the Inside Passage Electric Cooperative (IPEC). IPEC bills the city monthly with a break-down of services provided to different buildings and areas, such as wastewater lift stations, the water treatment plant, and city buildings. The bookkeeper logs each itemized bill into the QuickBooks accounts payable system, then creates the check payment for the full amount, which is then signed by the city administrator and submitted for payment. Evidence of billing and payment have been provided to RUBA staff. The city budgets for and purchases its fuel from Kake Tribal Corporation as needed. Kake Tribal Corporation receives fuel by barge once per month, which is sufficient to provide all necessary fuel to the community.
A water utility rate study conducted by RUBA staff in February 2014 concluded that the water utility costs the city $85.85 per customer per month. The city distributes this cost at a higher rate to commercial customers than to residential or elder customers. Two years ago, the council adopted a plan to increase utility charges gradually over the next four years, at a rate of 25 percent per year for residential customers and 35 percent per year for commercial customers. Therefore on July 1, 2014, the residential rate for sanitation services increased to $56.25 per month and the commercial rate increased to $72.90 per month. By the fourth year of this plan, the residential rate will be $87.89 per month and the commercial rate will be $132.86 per month. Assuming a near-100 percent collection rate, this financial plan will allow for all costs associated with the water utility to be met. Until such time, however, the city utilizes funds from the Community Revenue Sharing and Payment in Lieu of Taxes programs as subsidies.|