|The City of Kake adopted its FY11 budget on July 30, 2010. However, this budget required an amendment shortly thereafter in order to adopt more realistic projections for outside funding and building rental revenue. The amended budget projects that water, sewer, garbage, and landfill expenditures will outweigh the revenue these utilities generate by approximately $147,000. No interfund transfer is provided in the FY11 budget to fill this gap. Rather, utility cost overruns are folded into the city's general finances which are supported by state revenue sharing and federal government grants/payment in lieu of taxes (PILT) funds.
The city's November financial reports indicate that actual utility revenues exceeded the FY11 budget's projected figures for the month by $2,400. These figures, however, are due mostly in part to new utility bill collection policies implemented by the city and include back payments from utility customers. Continued implementation of the city's new collection policy and continued monitoring of the city's finances will show more meaningful trends in the amount of revenue generated by Kake's utilities.
The Kake Code of Ordinances requires that monthly financial reports be prepared by the bookkeeper for the council and include a summary statement, a reconciliation statement, and a statement of expenses. Monthly financial reports are indeed being prepared, though because the city was late in adopting its FY11 budget, budget vs. actual financial statements do not meaningfully project whether year-to-date revenues and expenditures for the utilities are on target. When compared to the FY10 budget, the FY11 budget provides for significant increases in funding for operator training, treatment supplies, equipment maintenance, and testing. However, the budget does not plan for repair and replacement costs or facility maintenance. The utility's last water/wastewater electric bill was paid in full in December and they are not behind in any other payments.
The FY11 budget allocates sufficient funding for the city to continue purchasing fuel from Kake Tribal Fuel (KTF). KTF receives fuel shipments as needed (about once a month) and stores it in four 20,000-gallon tanks and eight 10,000-gallon tanks.|