|McGrath has adopted the FY11 operating budget with Ordinance 11-01. It is balanced and realistic with revenues and expenditures well defined for the utility department.
The water utility revenues total $335,500 and the expenses total $297,218 for a surplus of $38,282. The water utility has a Repairs and Maintenance line item within the Water Utility Expenses. The surplus is due to an increase of service line hookups and additional customers to the service line.
The sewer utility revenue totals $50,000 and the expenses total $79,847 for a deficit of $29,847. The deficit is due to a Village Safe Water (VSW) upgrade that has been prolonged and the sewer facility has been extended beyond its useful life with major repairs from the city while waiting for VSW to complete the project. The sewer utility has a high Repairs and Maintenance line item within the expenses that explains the majority of the deficit. Repair and Maintenance is projected to be $15,000.
The washeteria revenue totals $22,000 with the expenses of $21,658, for a surplus of $342. The washeteria has a Repairs and Maintenance line item within the washeteria expenses.
It has been stated that the excess revenue from the water utility and fund transfers from the General Fund, if needed, will be utilized to cover the costs of the sewer utility.
Minutes, from July 29, 2010 council meeting, state that the certified financial reports have been adopted with Resolution 11-1. The meeting packet from August 24, 2010 shows that the Profit and Loss July 2009 to June 2010 Budget vs. Actual report for the entire entity with separate columns for the Water, Sewer. Washeteria utilities and other city programs were on the agenda.
During the generation of recent financial reports, an issue was found on the QuickBooks installation. The city administrator stated that the QuickBooks consultant removed some classifications and added others to attempt to clear up redundant names and categories. In the process, some categories were broken out that should not have been. This has slowed the generation of the financial report as the bookkeeper and the administrator make corrections to the report that QuickBooks generates automatically.
The Tanana Chiefs Conference (TCC) Remote Maintenance Worker (RMW) position assigned to McGrath is currently vacant and is receiving assistance from a RMW assisgned other communities.
It was stated by the city administrator that budget amendments were not completed by the council. The council re-appropriates funds from the general fund as needed and without a budget amendment.