Quarterly Report: 2012, July - September (Q1), Shaktoolik

Leroy Seppilu  
DCRA Regional Office:
Gov't Type:
Second Class City 
Agreement Date:
City of Shaktoolik 
Assessment Status:
Assessment Date:
Exp Date:
Last Updated:
Community Sanitation Overview:
Water is pumped three miles from the Togoomenik River to the pumphouse, where it is treated and stored in a 848,000-gallon insulated tank adjacent to the washeteria. A piped water and sewage collection system services most homes. 75% of households have complete plumbing and kitchen facilities. The school is connected to City water, and has received funding to develop a sewage treatment system to serve the entire community. The City burns refuse in an incinerator. The landfill needs to be relocated; the current site is not permitted. 
RUBA Status & Activities This Qtr:
RUBA staff provided technical assistance via the telephone to the temporary city clerk to complete the FY12 budget for council adoption. 
RUBA Activities for the Coming Qtr:
RUBA staff will make at least one trip to the community to review and update the RUBA Assessment if invited. The last assessment was made January, 2010.
Essential Indicators:
23 of 26
Sustainable Indicators:
20 of 27
Total Score:
43 of 53


Essential Indicators
Answer Question
Yes All revenues and expenses for the utility are listed in the utility budget.
No The utility has adopted a balanced realistic budget.
No 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.
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.
Yes A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
This past fiscal year (2011), the City's combined revenues for the water and sewer services and washeteria were $53,680.00. The expenditures were $77,680.00. The deficit was at least $24,000. The City subsidizes the difference with sales tax, building rentals and equipment leases. The city clerk has stated that she makes monthly financial reports, but did not provide a copy when requested. Personal Contact: LGS staff talked with City Clerk Rita Auliye. She said the city had its fuel order delivered around mid-August. A total of 18,500 gallons of diesel was delivered to the city. The city participates in the Norton Sound Economic Development Corporation's Bulk Fuel Order Program in which participating member-cities order fuel at a substantial discount. The fuel supply is sufficient for winter. NSEDC charged the City of Shaktoolik $79,000 for the order, which comes to about $4.27 a gallon.

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.
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.
No Monthly bank reconciliations have been completed for all utility accounts.
No 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 has a comprehensive water and sewer ordinance. The city clerk bills the water and sewer customers once a month. All records, including tracking of customer billing, payments and past dues are kept manually. The city clerk calculates payroll and records manually as well. The clerk records incoming revenues with a receipt book and records expenditures manually.

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 city is up to date with payroll tax liabilities, filing reports and tax deposits. All record-keeping is done manually.

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.
Yes 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
The city is on the latest Lien Watch for default judgment for past due insurance liability and workers' compensation coverage. The city is working with AMLJIA to pay the debt off. Status of workers' compensation coverage is still the same as last quarter. RUBA staff has offered to assist the City with reviewing this issue to take positive action to no avail.

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
The city council acts as a utility board. The city clerk is preparing for the upcoming municipal election. There are three council seats for for the election. The city clerk was invited to a RUBA sponsored QuickBooks Pro class and later for a financial management for utilities workshop. She was not able to attend due to an extended personal leave. The city council meets at least once a month and has water and sewer department issues in its regular agenda. Discussions, reports and decisions are made in those meetings.

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.
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.
Yes 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.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
According to the latest Significant Non-Compliant list, the city is still on the Significant Non-Complier list for Stage 1 and SWTR violations. The city utility operator is working with Analytical and Remote Maintenance Worker to get off of the SNC list. The utility operator is certified as Provisional 1.