Quarterly Report: 2010, July - September (Q1), Saint Mary's

Community:
Saint Mary's 
Staff:
Flora Olrun  
DCRA Regional Office:
 
Gov't Type:
First Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Saint Mary's 
Population:
549  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
11/6/2009 
Community Sanitation Overview:
Water is derived from Alstrom Creek reservoir and is treated. The majority of the city (120 homes and facilities) have complete plumbing and are connected to the piped water and sewer system. Waste heat from the power plant supports the circulating water system. A 1.7 million-gallon sewage lagoon provides waste treatment. Approximately 15 residences haul water and use honeybuckets; the city provides hauling services. Twenty new HUD houses were recently connected to the system. A new honeybucket disposal site is under construction. Funds have been requested to repair plumbing in 40 older homes, and to study replacement of the failing 30-year-old water and sewer mains. A washeteria is available nearby at Pitka's Point. The landfill must be relocated. 
RUBA Status & Activities This Qtr:
Saint Mary's has not submitted a budget for fiscal year 2010 and monthly financial statements. The last monthly financial statement submitted to the Bethel regional office was for month ending November, 2008. According to the State of Alaska, Department of Labor and Workforce Development website, Saint Mary's has insurance coverage for worker's compensation with Alaska Municipal League. They are not on the Significant Non-Complier list under Division of Environmental Health. 
RUBA Activities for the Coming Qtr:
The City of Saint Mary's has not met all of the essential management capacity indicators. Bethel RUBA staff will work with Saint Mary's to satisfy deficient management indicators.
Scores:
 
Essential Indicators:
23 of 27
Sustainable Indicators:
19 of 27
Total Score:
42 of 54

Finances

Essential Indicators
Answer Question
No 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.
No A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
Saint Mary's has not submitted a budget for fiscal year 2010. The prior year's budget included revenues and expenses for the Freshwater and Wastewater Utility Systems, Solid Waste Collection and Disposal. The utility is current on all water and wastewater electric bills. When it is needed, the City of St. Mary's subsidizes the utility services with income from the general fund, specifically from gravel haul services and equipment rental income. The city purchases fuel from Crowley who has a fuel distribution tank farm located in St. Mary's. The city orders fuel twice a year, spring and fall. Their last order was done on June 4, 2009 for 20,000 gallons of heating fuel. The last monthly report on file in the Bethel regional office is for the month ending November, 2008. Because the budget and monthly reports are not up to date, YTD revenues and expenditures and other financial issues can not be analyzed. Under ordinance, the city manager is allowed to transfer ten percent of funds between departments without council approval.

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
There is a collection policy located in the Code of Ordinances, Sections 2.13.50-2.13.65. A copy of the ordinance is in the community file located in the Bethel regional office. A copy of a customer billing was provided, which is sent out on a monthly basis. The billing contains a forwarded balance, current billing for water, sewer and garbage collection separated into different line items. Past due sections for current amount due, 30 days, 60 days, 90 days and over 90 days past due are also included in the monthly statement. The city uses QuickBooks Pro for their accounting system. All accounts payable, receivable and payroll transactions are run through QuickBooks Pro. A copy of their chart of accounts was submitted to the Bethel regional office and is actively being used. A copy of a purchase order was submitted which reflects a pre-approval requirement for purchases. And a copy of their procurement policy, Chapter 4.05 was also submitted and placed in their file.

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
On 7/7/09 the Internal Revenue Service deemed the City of Saint Mary's compliant with tax reports, deposits and they have no outstanding liens.

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.
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 of St. Mary's is insured by Alaska Municipal League Joint Insurance Association, Inc. Proof of the workers compensation insurance coverage has been verified from the Department of Labor, Worker's Compensation website. The city has a personnel policy which was adopted in 1996 and needs to be reviewed and updated. Job descriptions for the following positions have been submitted: Operator, Water and Sewer Utilities and Assistant Operator for the water and sewer services. Copies of Ordinance Chapter 2.05, which stipulates powers, duties and responsibilities of the City clerk and City Manager, were submitted. The City Manager has complied with the informal evaluations but has not used written evaluations. The personnel file for the utility worker is complete. The turnover rate for the utility worker is very low; he has worked for the city for approximately ten years and has many training certificates including Water Distribution Level 4 with an expiration date of 12-31-10. The City Manager's posiition is filled by a temporary person.

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
No 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 is active in policy making for the utility. The council meets monthly at which time they hear status and financial reports by the City Manager for the utility services. The utility worker has been employed by the City of St. Mary's since 1998 and has training certificates as high as level four for water distribution. The city uses QuickBooks Pro for all departments. A copy of Ordinance 2.13 for the Division of Freshwater and Wastewater Utilities System is on file. The city currently has no adopted organizational chart; however, the City Manager submitted a handwritten copy based on language from their ordinance. The city council meets monthly and complies with the Open Meetings Act.

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".
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 utility worker has many training certificates including Water Distribution Level 4 with an expiration date of December 31, 2010. A sample of their inventory control list and task description for the water and sewer system for 2007 and 2008 was submitted. It was not clear whether or not safety meetings had been held. Saint Mary's is not on the Significant Non-Complier list. Copies of their Consumer Confidence Report and critical spare parts list are on file in the Bethel regional office.