|The City of Shishmaref adopted the FY13 budget on June 27, 2012. A copy of the approved budget was submitted to the Division of Community and Regional Affairs. The Shishmaref Water/Wastewater Treatment System's budget is included in the overall city budget. The utility budget is realistic and includes all the revenues and expenditures for the FY13. However, the city council will have to use other sources of revenues to subsidize the deficit, which is $39,900. In the past, the council used the Payment in Lieu of Taxes (PILT) to subsidize the utility.
The city bookkeeper prepares and submits monthly financial reports comparing actual year-to-date revenues and expenditures to the budget to the city council/utility board on regular basis and the reports are referenced in the meeting minutes. RUBA staff has received copies of the monthly financial reports this quarter (March, April, and May 2012). According to the most recent invoices from the electic utility, the utility is current paying the electric bills. According to the city staff, the utility has adequate fuel supply. The City of Shishmaref is part of the Norton Sound Economic Development Corporation bulk fuel purchase program. The city council ordered 23,000 gallons of heating fuel for the upcoming year and part of it is used to heat the utility. The FY13 budget shows that $20,000 was budgeted for heating fuel. Crowley delivers fuel via barge once a year, typically the end of August. The utility is receiving revenues from user fees (local school and clinic) and other sources and the revenues are equal to or above those budgeted, including the expenses. The FY13 budget has a line item indicating that $7,500 was set aside to cover repair and replacement costs. The city clerk is the supervisor of all employees of the city including the water plant operators. The city clerk and the water operators provide monthly reports on the operation, maintenance, and management of the utility. RUBA staff has seen copies of the reports as referenced in the city council meeting minutes.
The city council/utility board is active in the budget appropriation process and has a good grasp of the fiscal reality of the city and utilities. The council makes informed decisions regarding utility finances because it receives and reviews monthly financial reports. According to the monthly city council meetings, the city council makes fiscal adjustments when necessary by amending the original budget.
The bookkeeper continues to provided RUBA staff monthly financial reports.