|Though Hydaburg's municipal code stipulates that the city's fiscal year follow the calendar year January 1 through December 31, in practice, the city uses a fiscal year running from July 1 to June 30. The FY11 budget was adopted by a non-code ordinance on July 20, 2010. The city's FY12 budget, however, has not been yet been adopted by the city council. The proposed FY12 budget is slated for a public hearing and final reading at a July 2011 council meeting and, if adopted, will set forth the city's utility financial plan for the coming fiscal year. Until then, all budget-specific indicators have been marked 'No.'
The FY11 and draft FY12 budgets are divided into separate funds with each fund listing proposed revenues and expenses. The funds include a general fund, a capital project fund, a harbor deferred maintenance fund, a water sewer upgrade fund, a water-sewer-garbage fund, and a harbor and docks fund. Though the budgets compare the proposed budget amounts to the previous year's adopted amounts, neither includes a comparative statement of actual expenditures and revenues for the preceding fiscal year as recommended by RUBA staff and required by Hydaburg Municipal Code. Recent city council meeting minutes show that financial information is being reported on a monthly basis. Monthly financial statements include a balance sheet and a budget versus actual profit and loss.
Electricity is provided by the Alaska Power and Telephone Company of Skagway. A visual inspection of the most recent electricity billings verifies that the city is current with all electricity accounts for the water and wastewater utilities. The city also has two 275-gallon fuel tanks for heating fuel which are located at city hall and the water treatment plant. The city has allocated adequate funds in the budget to purchase heating fuel from Petro Marine as needed (typically, every one to three months).
The city council, as the governing body, is fully aware that user fees do not produce sufficient income to cover utility operating expenses or repair and replacement costs. It has been a general practice for the city to subsidize the utility's operating expenses and repair and replacement costs through other sources. The adequacy of the subsidy and the council's willingness to supplement the water, sewer, and garbage funds is evidenced through a $31,000 general fund transfer into the FY11 utility budget and the allocation of $50,000 from the FY11 Community Revenue Sharing payment. FY11 revenues and expenses remained in line with budgeted projections throughout the year, with the council regularly reviewing the budget and making amendments as necessary. The last budget amendment was adopted by the council on July 20, 2010. A review of city council meeting minutes for the last year shows that the mayor, administrator, city clerk, and public works foreman routinely provide both written and verbal reports on operational and financial issues concerning the water, sewer, and garbage utilities.|