|Although the City of Teller is the owner of the water treatment plant, the Bering Straits School District (BSSD) has operated the plant for many years. The city does not allocate funds to the treatment facility and water service is not included in the overall city budget. Throughout the years, BSSD has allocated funds to operate the plant. BSSD pays all the bills, including electric and fuel. The utility does not have a separate budget. It is likely that BSSD has a budget, but no copy of the utility budget was provided to RUBA staff.
Nome RUBA staff assessed other public utility services provided by the city. Those services include the washeteria, honeybucket hauling and landfill. The city adopted its FY12 budget by the deadline. The overall city budget is balanced and includes all revenue and expenditures for each department. However, based on financial data from the current budget and budgets of prior years, the washeteria, honeybucket hauling and landfill services have not generated enough revenue to cover all operating expenditures. The city council has voted to subsidize these services deemed essential by both the city residents and the city council. For instance, the honeybucket hauling expenditures for FY12 are $49,943, while the expected revenue is $30,000. The city budget shows that the total washeteria expenditures are $35,901, while the revenue is respectively $25,000. The city uses Payment in Lieu of Taxes (PILT) funds, Community Revenue Sharing Program funds and Norton Sounds Economic Development Corporation Community Benefit Share funds to subsidize these services. According to the regular meeting minutes for the months of February, March and April 2011, the city council has played an important role in the decision making process regarding the financial condition of the city and public utility services. The meeting minutes show that the city council was provided with monthly financial reports accompanied by financial analyses and comments given by the city clerk. The meeting minutes also show that the city council discussed each major financial transaction. The year-to-date revenues are at a level equal to those budgeted and the year-to-date expenditures are equal to those budgeted.