Quarterly Report: 2013, January - March (Q3), Anderson

Jeremy Johnson  
DCRA Regional Office:
Gov't Type:
Second Class City 
Agreement Date:
City of Anderson 
Assessment Status:
Assessment Date:
Exp Date:
Last Updated:
Community Sanitation Overview:
Most homes and public schools have individual wells, wastewater systems, and plumbing. A permitted recreation vehicle (RV) disposal lagoon and sludge disposal site is provided by the city. Residents hire a private wastewater pumping company when their systems need maintenance; the company deposits the waste into the city owned lagoon. There is a current Village Safe Water project to connect all buildings to a piped wastewater system. After homes are connected to the piped waste water system, individual wastewater systems must be filled in and made non functioning. The first customers, including the school, were brought online in the fall of 2011, during the summer of 2012 new customers continue to be connected. 
RUBA Status & Activities This Qtr:
Fairbanks RUBA staff traveled to Anderson in March to provide on-site assistance and training to the city clerk.Code ordinances had recently been pased without codifying the. It was also noted that the adopted codes were not signed however the meeting minutes substantiate the adotpion. The codification process was explained and demonstrated to the the city clerk. Computer training was also provided while on-site. In additon, telephonic assistance was provided to the city clerk on the process to amend the budget. The city has decided to enlist the help of a former employee for the bookkeeping work. RUBA staff reviewed the financial reports and provided comments and suggestions to the city. 
RUBA Activities for the Coming Qtr:
RUBA and city staff have a good working relationship and support is ongoing as needed.
Essential Indicators:
25 of 26
Sustainable Indicators:
22 of 26
Total Score:
47 of 52


Essential Indicators
Answer Question
Yes All revenues and expenses for the utility are listed in the utility budget.
Yes The utility has adopted a balanced realistic budget.
Yes Monthly financial reports are prepared and submitted to the policy making board.
Yes The utility is current in paying all water/wastewater electric bills.
Yes The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply.
Yes The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.
Sustainable Indicators
Answer Question
Yes The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs.
No YTD revenues are at a level equal to or above those budgeted.
No YTD expenditures are at a level equal to or below those budgeted.
Yes A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
The city has a positive cash flow, the net income as of March 12 is $29,609. The budget is recommended to be amended and the city has a meeting in the evening of March 12 to review the FY13 budget, a proposed amended budget is provided to the council. The council has a meeting on Thursday April 11 to pass the amended FY13 budget and to introduce the FY14 budget. The Accounts Receivable report, which shows which customers owe money to the city, indicates that 14 customers are delinquent with payment, this is a 29% delinquency rate. RUBA staff provided the city with a copy of the billing and payment code, Anderson Code 10.20.150, and encourage the city to follow the provisions. This is a new system it is very important to follow the code and establish a good relationship with customers based on regular and fair application of the rules.

Accounting Systems

Essential Indicators
Answer Question
No The utility has adopted a collection policy and actively follows it.
Yes The utility bills customers on a regular basis.
Yes An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.
Yes An accounts payable system is in place.
Yes The payroll system correctly calculates payroll and keeps records.
Yes A cash receipt system is in place that records incoming money and how it was spent.
Yes The utility has a cash disbursement system that records how money was spent.
Sustainable Indicators
Answer Question
Yes A chart of accounts is used that identifies categories in a reasonable, usable manner.
Yes Monthly bank reconciliations have been completed for all utility accounts.
Yes The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts.
Accounting Systems Comments
The city, by using QuickBooks, has a system in place to record how money was spent. The city has hired additional staff to fulfill the bookkeeping responsibilities and she has reconciled the bank accounts. The city is not following the established billing system as determined by code. For instance, customers who leave during the winter months have two options, they can continue to pay the flat $40 a month waste water fee or they can, with written notice, pay the $35 disconnect fee and upon returning pay the $35 reconnection fee. Currently, the customers who leave for winter are not sent a bill but have not disconnected. The year round customers are billed on a regular basis.

Tax Problems

Essential Indicators
Answer Question
Yes The utility has a system to accurately calculate, track, and report payroll tax liabilities.
Yes The utility is current on filing tax reports.
Yes The utility is current on making tax deposits.
N/A If there are any past due tax liabilities or recorded tax liens, a lien release has been issued or a repayment agreement has been signed and repayments are current.
Tax Problems Comments
The DOL has says the city is compliant. The city is compliant with the IRS as of March 21, 2013.

Personnel System

Essential Indicators
Answer Question
Yes The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
Yes The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
Yes The utility has adequate written job descriptions for all positions.
No The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.
Yes The utility has an adequate written hiring process.
No The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.
Yes The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.
Yes The utility provides training opportunities to staff as needed and available.
Personnel System Comments
The workers compensation insurance policy is posted in the kitchen/employee break room and is purchased through AMLJIA for the periods of July 1, 2013 through July 1, 2014, on line verification on March 12 supports that the insurance policy is still in effect. The personnel policy is part of the Anderson Code of Ordinances 2.50 and is complete, as are the job descriptions for city positions. According to the clerk, and documented by the lack of evaluation in the personnel folders, evaluations have not occurred in a number of years. Personnel policies state that evaluations must occur on the employee anniversary date of hire (AO 2.565.5(b)) in addition to other times. The personnel policy has a written hiring process, which provides the mayor the ability to create the device or devices to be used in evaluating applicants. Personnel folders contained every document except for the letter of acceptance. According to personnel policy, the probationary period is 90 days and it is up to the department head to provide job training, oversight, and evaluations. Training opportunities are available and have been utilized.

Organizational Management

Essential Indicators
Answer Question
Yes The entity that owns the utility is known; the entity that will operate the utility is set.
Yes The policy making body is active in policy making of the utility.
Yes The policy making body enforces utility policy.
Yes The utility has an adequately trained manager.
Yes The utility has an adequately trained bookkeeper.
Yes The utility has an adequately trained operator or operators.
Yes The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate.
Sustainable Indicators
Answer Question
Yes The utility has adopted an organizational chart that reflects the current structure.
Yes The policy making body meets as required.
Yes The utility complies with the open meeting act for all meetings.
Organizational Management Comments
As established in the wastewater utility ordinance 08-06, the City of Anderson shall own and operate the utility. As the wastewater project has not connected all customers, indicators are being based on the actions of the city council (also the utility board) with respect to management of the existing lagoon. The city council meets regularly and is an active participant in discussions with the Village Safe Water (VSW) engineer and was active in passing the utility ordinance. The city council enforces the existing ordinances for the sewage lagoon. Ordinance 08-06 sections 3 and 5 give the city the authority to operate the system. An organizational chart shows the current structure and lines of authority. The city council meets every month and these meetings are open to the public to attend.

Operation of Utility

Essential Indicators
Answer Question
Yes The utility operator(s) are actively working towards necessary certification.
Yes The utility has a preventative maintenance plan developed for the existing sanitation facilities.
Sustainable Indicators
Answer Question
Yes The manager receives a monthly O&M report from the utility operator and routinely "spot checks" the facilities to see that the maintenance items are being completed.
Yes The utility has a safety manual and holds safety meetings.
Yes Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.
Yes The utility is operating at the level of service that was proposed.
Yes The operator provides status reports to the manager on a routine basis.
N/A The utility has completed and distributed its "Consumer Confidence Report".
Yes The utility is not on the "Significant Non-Complier" (SNC) list.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
The utility operator is current with certifications. The current wastewater lagoon has a preventative maintenance plan and upon completion of the piped wastewater system a plan will be provided to the city. The manager does get monthly reports; if there is anything of a pressing nature he is provided with updates as necessary. The manager also makes onsite visits to view productivity and to inspect the maintenance books. Safety meetings are held according to the standard operating procedures for the lagoon. There have not been any major problems; the utility is operating as designed. Each building has its own water well; the city does not provide public water and does not have a Consumer Confidence Report. The city is not on the January SNC list. The city has, on hand, some essential parts. It also retains fencing and parts to repair the liner. As the city currently only has a lagoon, there are very few parts to keep on hand when compared to a piped water system.