|The City has not yet adopted an FY07 annual budget. Until the budget is finalized and adopted by the council, the City does not meet any of the essential or sustainable indicators involving budget issues. The City is currently charging $40 per month for water, sewer, and garbage. Adequate financial statements to verify sufficient revenues to cover expenses and repair and replacement cost were not available. Through conversations with City staff, RUBA learned that the utility is not receiving enough revenue to meet its current expenses. The City's FY03 financial audit (the latest audit available) indicates that the utility was operating at a deficit at that time. According to the FY03 audit, the water, sewer and garbage fund was incurring a $93,000 operating loss annually. The City is one month behind on its electrical payments and has recently received a cutoff notice for telephone services. The Manager is not presently preparing written reports, however he routinely provides oral financial and status information to the City Council at monthly meetings. The community has no bulk fuel storage facility. Due to past financial problems with creditors, the City receives fuel from a vendor on a cash only basis.