Quarterly Report: 2010, January - March (Q3), Holy Cross

Community:
Holy Cross 
Staff:
Ken Berlin  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Holy Cross 
Population:
200  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/10/2010 
Community Sanitation Overview:
Water is derived from a deep well and is treated. A new backup well, new pump house and water treatment facility have been completed. Seventy-one households and the school are connected to the piped water and sewer system. A number of residents in the community still haul water from the washeteria and use honeybuckets or outhouses. A Master Plan is underway to examine and engineer expansion of the system. Landfill improvements are needed. Holy Cross was a member of the Rural Utilities Cooperative but opted to get out of the contract and the City of Holy now runs the water and sewer system. 
RUBA Status & Activities This Qtr:
On February 16, 2010, Bethel RUBA staff traveled to Holy Cross and met with the city council and worked with two bingo workers who helped us in the city office to locate the city budget, finance reports, and other documents. We gathered the accounts payables and put together a list of unpaid bills for the community meeting that evening. RUBA staff went over the FY10 city budget and found math mistakes in the summary report. The last monthly finance report was in September 2009. The Community Revenue Sharing application and budget were not filed. The FY08 Certified Financial Statement and Payment in Lieu of Taxes resolution were not filed. The new city officials have not been elected yet, so the FY09 city officials are still in their respective positions. Two city council members recently resigned; one of them was the Mayor so the city only has five members and they need to appoint two more members. City employees salaries are paid out of gaming funds. The city has no workers compensation insurance. Payroll tax liability deposits were paid, but only for the bingo workers and not the water and sewer operators or other city workers. The city uses QuickBooks Pro to do their accounting. RUBA staff attended the city meeting that evening and fielded questions about the last city election and how it was certified. Questions on the Alaska Rural Utility Collaborative utility managment were also asked. It was recommended that the city hire a city clerk as soon as possible. The city is basicly broke now. Quarterly tax reports have not been filed in 2008 for the 2nd and 3rd quarters. A letter from the IRS was discovered which stated the 2006 W-2s were not filed. We requested a Certified Revenue Sharing application and budget resolution template resolutions for the CRS and Payment in Lieu of Taxes (PILT). RUBA assisted city staff with the CRS application/budget and resolutions for CRS and PILT. Work was completed for the FY08 CFS that afternoon. RUBA staff met with acting mayor and went over the FY08 CFS and CRS application and resolutions for CRS and PILT. All are ready to be signed and sent to Juneau and the city should receive all funds available. On March 24, 2010 the acting Mayor of the City of Holy Cross called and informed Bethel RUBA that the city council is planning a meeting this week to appoint two councilmembers to fill the two vacant seats. A job opening was also posted for the city clerk's position. The city is planning to start updating it's code of ordinances and requested Bethel RUBA's assistance. The acting mayor further stated that the city received the community revenue sharing and PILT funds and that he was grateful for our assistance in training city staff on preparation of the required documents.  
RUBA Activities for the Coming Qtr:
City of Holy Cross still runs the water and sewer services but has not provided this office with documentations.
Scores:
 
Essential Indicators:
6 of 27
Sustainable Indicators:
3 of 27
Total Score:
9 of 54

Finances

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.
No Monthly financial reports are prepared and submitted to the policy making board.
No 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
No The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs.
Yes YTD revenues are at a level equal to or above those budgeted.
Yes YTD expenditures are at a level equal to or below those budgeted.
No A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
FY10 budget is on file. City was inactive from October to December 2009. Last finance report received was in September 2009.

Accounting Systems

Essential Indicators
Answer Question
No The utility has adopted a collection policy and actively follows it.
No 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.
No An accounts payable system is in place.
No The payroll system correctly calculates payroll and keeps records.
No A cash receipt system is in place that records incoming money and how it was spent.
No The utility has a cash disbursement system that records how money was spent.
Sustainable Indicators
Answer Question
No 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
No documentation received in Bethel office.

Tax Problems

Essential Indicators
Answer Question
No The utility has a system to accurately calculate, track, and report payroll tax liabilities.
No The utility is current on filing tax reports.
No 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
IRS deemed Holy Cross non-compliant due to City not filing 2nd and 3rd quarterly reports for 2009.

Personnel System

Essential Indicators
Answer Question
No The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
No The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
No 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.
No 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.
No The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.
No The utility provides training opportunities to staff as needed and available.
Personnel System Comments
No current documentation received.

Organizational Management

Essential Indicators
Answer Question
No The entity that owns the utility is known; the entity that will operate the utility is set.
No The policy making body is active in policy making of the utility.
No The policy making body enforces utility policy.
No The utility has an adequately trained manager.
No The utility has an adequately trained bookkeeper.
Yes The utility has an adequately trained operator or operators.
No The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate.
Sustainable Indicators
Answer Question
No The utility has adopted an organizational chart that reflects the current structure.
No The policy making body meets as required.
No The utility complies with the open meeting act for all meetings.
Organizational Management Comments
City has a trained water operator.

Operation of Utility

Essential Indicators
Answer Question
Yes The utility operator(s) are actively working towards necessary certification.
No 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.
No Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.
No 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.
No 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
No documentations.