Quarterly Report: 2012, October - December (Q2), Anderson

Community:
Anderson 
Staff:
 
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Anderson 
Population:
246  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
1/31/2012 
Community Sanitation Overview:
All homes and public schools have individual wells, septic systems, and plumbing. A permitted recreation vehicle (RV) disposal lagoon and sludge disposal site is provided by the city. Residents hire a private septic 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 building to a piped wastewater system. Construction of this started in the summer of 2010 and during the winter no constructions is ongoing but resumes in the spring. After homes are connected to the piped waste water system the individual septic systems must be filled in and made non functioning. The first customers, including the school, were brought online this fall (2011). 
RUBA Status & Activities This Qtr:
This quarter RUBA provided assistance to the city over the phone and in person. The first waste water customers were connected to the piped system in October, the city decided not to prorate for service and instead bills were mailed out on December 1, for services received in November. RUBA staff discussed with the bookkeeper the importance to review the Accounts Receivable report which will indicated customer who have not paid their bills. With new service the community must understand that the city is committed to obtaining payment for the service. RUBA also worked with the city clerk on interpreting city codes, specifically the term of mayor and certification of elections. 
RUBA Activities for the Coming Qtr:
Support as requested for the city clerk and bookkeeper. Assist with updating the city financial policy manual. An onsite visit during the first quarter of 2012 is being scheduled with the office.
Scores:
 
Essential Indicators:
27 of 27
Sustainable Indicators:
24 of 26
Total Score:
51 of 53

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.
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.
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.
Yes A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
The City of Anderson has a budget that is easy to read and lists all the revenue and expenses by department. The budget is balanced and realistic, based on last fiscal year the budget is appropriate. Monthly financial reports are created and presented to the policy making body. The city budget is entered into QuickBooks and financial reports are quickly generated. The city council is used to an established format that is separate from what QuickBooks generates but the bookkeeper is now able to save many hours of work by exporting the report into Excel for the council. RUBA staff suggested that the treasurer provide a written narrative report to accompany the financial report as this will benefit both the city clerk and the entire council. The city does not have any outstanding bills to be paid, bills are entered into QuickBooks as they are received and the Accounts Payable (A/P) report greater than thirty days is zero. Fuel is purchased from a local (Nenana) vendor as needed. Since Anderson is on the road system it has the benefit of lower fuel costs and near immediate access. The city has budgeted money allocated for heating fuel and the city is receiving revenue to cover operating expenses. The first wastewater customers were connected this fall and RUBA will assist the city to ensure that financial reports accurately reflect the cost of operations. Bills were mailed out December 1, 2011 for the November service, the financial reports from the city do not yet reflect this new service. The entire city budget shows that actual income is greater than actual expenses and that both income and expenses are within budgeted amounts.

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.
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
In preparation of the wastewater construction project, the city passed Ordinance 08-06 Providing Sewer Service to the City of Anderson which included a section on a collection policy. The council has not yet had the opportunity to follow the collection policy since the utility has just been constructed and no bills are outstanding. The monthly customers the city does have are billed regularly. The city has historically had few cash transactions, mostly for the occasional soda, fax, or copy sale and there is now a receipt system in place, which is a change from the last assessment. As more waste water customers are added to the system more cash transactions will occur. The city, by using QuickBooks, has a system in place to record how money was spent. The city had an on site visit from the State of Alaska contracted QuickBooks consultant who was able to assist the city in correcting the QuickBooks file and reducing the chart of accounts, which at the last assessment was identified as excessive. The city bank accounts are reconciled monthly.

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.
Yes 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 IRS and Alaska Department of Labor deem the city compliant and have for the last two years. Current as of December 20 and 23, 2011.

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, 2011 through July 1, 2012. 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 lack of evaluation in the personnel folders, evaluations have not occurred in a number of years. The personnel policies state that they 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, if they wish. Personnel folders contained every document except for the letter of acceptance. According to the 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. The bookkeeper spent three days with the State of Alaska contracted QuickBooks consultant.

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 before, since the wastewater project has not connected all customers, the 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 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 was printed off from the clerk's computer and it shows the current structure and lines of authority. The city council meets every month and those 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 current sewer 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, or if there is anything of a pressing nature he is provided with updates as necessary. The manger 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 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.