|The council adopted a balanced FY08 budget on December 18, 2007. The budget is based on the calendar year, January 1 through December 31 and includes general government operation, community services departments, and enterprise funds. An evaluation between the FY-08 utility budget and actual FY-07 revenues and expenses suggests that the budget is adequately detailed and realistic.
The mayor, who also serves as the utility manager, gives a verbal financial report to the council at monthly meetings. Financial reports, including a profit and loss statement, balance sheet, and budget vs. actual profit and loss are available to council members; however, are not currently included in the council meeting packets. The council relies on the mayor to oversee the finances of the City and for the execution of the budget. The council provides its oversight by performing quarterly budget reviews. To meet the criteria for this essential indicator and as an improvement to the current practice, the mayor will begin providing financial reports to council members on a monthly basis starting at the August 2008 council meeting.
The City is current on all electricity bills through July 2008. Electricity is provided through Inside Passage Electric Cooperative (IPEC) at $0.22 per kilowatt hour (KPH) after Power Cost Equalization (PCE). Approximately 13% of the overall water and wastewater operating cost is for electricity.
The community has a bulk fuel facility owned by Hoonah Trading Company which is comprised of propane, gasoline, and diesel storage tanks sufficient to meet the community's needs. The City has a 'keep full' contract with Hoonah Trading with adequate funds budgeted for fuel purchases.
The utility receives revenues sufficient to cover operating expenses and repair and replacement costs. In prior years, the utility relied on inter-fund transfers and general fund subsidies to balance the utility budget. This year, the FY-08 budget has revenue projections exceeding expenditures by $4850 which includes expected repair and replacement cost.
The City provides water, wastewater, and solid waste utility services to the local population for the following combined fees (including sales tax): regular residential = $90.56 per month; senior citizen residential = $55.04 per month; commercial = $125.35 per month; and a metered rate structure for large volume users. Large volume users include Hoonah City Schools, Hoonah Cold Storage, and Point Sophia.
Year-to-date revenues and expenses are generally inline with budgeted projections. Total utility revenues and expenses are slightly below the expectations for 3rd quarter FY-08.