Quarterly Report: 2007, January - March (Q3), Shishmaref

Josephine Bahnke  
DCRA Regional Office:
Gov't Type:
Second Class City 
Agreement Date:
City of Shishmaref 
Assessment Status:
Assessment Date:
Exp Date:
Last Updated:
Community Sanitation Overview:
The City of Shishmaref operates a central watering point, a water truck delivery service, multiple watering points, and a washeteria. They also provide a honey bucket service. The City Council is the policy making body for the utility. Water is derived from a surface source; it is treated and stored in a new tank. Shishmaref is undergoing major improvements, with the construction of a flush/haul system and household plumbing. Nineteen HUD homes have been completed, and 71 homes remain. The new system provides water delivery, but the unserved homes continue to haul their own water. The city hauls honeybuckets and the new flush tanks. The school, clinic, Friendship Center, City Hall and fire hall are connected to a sewage lagoon. A new landfill is planned for the City; an access road is under construction.  
RUBA Status & Activities This Qtr:
At the request of Mayor Tocktoo, Nome RUBA staff travelled to Shishmaref on February 6-7, 2007 to provide financial management assistance to the City Clerk and Bookkeeper and to conduct Council training. Training included Council roles and responsibilities, reading financial reports, and information about the RUBA program. During the visit, Nome RUBA staff utilized manual records to compile and present to the Council a year to date report of City revenues and expenditures. Due to a variety of factors, including outstanding debt, expenditures continue to exceed revenues. At the advice of RUBA staff, the Council made the decision to cut back on meeting stipends and staff hours. Other measures to increase revenue and decrease expenditures were also provided. Nome RUBA staff followed up on several items from the trip and maintains weekly correspondence with the City Treasurer, Rich Stasenko. During the week of March 5-9, 2007, City Clerk, Melanie Weyiouanna, successfully completed RUBA financial management training in Nome. Nome RUBA staff assisted Melanie with an application for on-site Quickbooks Pro software installation and training for fiscal year 2008.  
RUBA Activities for the Coming Qtr:
At the request of the Council, RUBA staff will travel to Shishmaref this quarter to conduct a RUBA assessment of essential indicators. RUBA staff will also continue to assist the city in finding ways to reduce the total gross wages each quarter, so that the city can 'afford' to meet payroll and deposit taxes on time.
Essential Indicators:
19 of 26
Sustainable Indicators:
15 of 27
Total Score:
34 of 53


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.
No The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply.
No The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.
Sustainable Indicators
Answer Question
No 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.
No A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
Customers must pay in advance before the septic tanks are drained or water is delivered to the homes. Since these services must be paid in advance, the city has a 100% collection rate. The washeteria still loses money due to high electricity and fuel consumption. The City Council has cut where it can to lower expenses, but it still loses money.

Accounting Systems

Essential Indicators
Answer Question
Yes The utility has adopted a collection policy and actively follows it.
Yes The utility bills customers on a regular basis.
No 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.
No 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 continues to have cash-flow problems. RUBA staff recommended to the mayor and the City Council to reduce spending so that essential employees and services can be maintained. RUBA also explained that state and federal laws require employers to pay its employees on designated paydays. There have been some cutbacks made, but major ones are still needed.

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.
No 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 city has managed to reduce the past due tax liabilities owed to Internal Revenue Service (IRS) and Employment Security Division. The new bookkeeper has prioritized filing IRS reports this quarter and has submitted 2006 2nd, 3rd, and 4th quarter reports but the City still owes a substantial amount in deposits. Nome RUBA staff has encouraged the Council to stay current with deposits and reports and submit a repayment plan for past due liabilities.

Personnel System

Essential Indicators
Answer Question
No 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.
Yes 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
Last quarter, the City's policy with Alaska Municipal League was cancelled. With the assistance of the Council Treasurer, a payment plan has been approved and the City is in good standing.

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.
N/A The utility has an adequately trained manager.
Yes The utility has an adequately trained bookkeeper.
No 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
One of the water treatment plant operators is certified at the Water Treatment 2 level, and the other one is Operator in Training (OIT) certified. The OIT certified operator was recently relieved of his duties for performance reasons.

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
No 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.
No 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.
No The operator provides status reports to the manager on a routine basis.
Yes The utility has completed and distributed its "Consumer Confidence Report".
No The utility is not on the "Significant Non-Complier" (SNC) list.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
The city water treatment plant is on the SNC list. The operator does not make monthly operation and maintenance reports to the supervisor or to the city council. Reports are made on 'as needed' basis. The operator does not hold safety meetings. We also do not have an updated safety manual. RUBA staff will work with the city clerk, city council ant the utility operator to make an inventory control list. RUBA staff had recommended to the city council to have the operator make an inventory list so that the unused and unneeded parts and equipment can be sold to raise some money to pay off debts to vendors. The bookkeeper said it was not completed yet. She was having problems with one of the operators and the operator was released of his duties.