|The City of Hoonah's fiscal year follows the calendar year January 1 to December 31. On February 15, 2011, the Hoonah City Council adopted a detailed, balanced, and realistic FY11 budget. The budget includes general government operation, community services departments, and enterprise funds.
Financial updates are given verbally to the council at monthly meetings by the mayor, who also serves as the city's utility manager. Financial reports, including a profit and loss statement, balance sheet, and budget vs. actual profit and loss are available to all council members; however, they are not currently included in the council meeting packets provided at the monthly meetings. The council relies on the mayor to oversee the finances of the city and for the execution of the budget. The council nonetheless provides oversight by performing quarterly budget reviews. To meet the criteria for this essential indicator and as an improvement to the current practice, the mayor will begin providing financial reports to council members on a monthly basis.
The city purchases its power from the Inside Passage Electric Cooperative (IPEC) and is current on all electricity bills through June 2011. Electricity accounts for approximately 13% of the overall costs associated with operating the water and wastewater utilities in Hoonah.
The community has a bulk fuel facility owned by Hoonah Trading Company which maintains propane, gasoline, and diesel storage tanks sufficient to meet the community's needs. Hoonah Trading receives its fuel shipments from Delta Western about every two to three weeks. The city has a 'keep full' contract with Hoonah Trading with adequate funds budgeted for fuel purchases.
Hoonah's utilities do not currently receive revenues from user fees sufficient to cover operating expenses or repair and replacement costs. In recent years, utility revenue projections exceeded expenditures and the city did not need to subsidize the utility with interfund transfers from the general fund. In the FY11 budget, however, the city has provided for interfund transfers totaling $80,481 to balance the water, sewer, and garbage collection budgets. This interfund transfer is approximately 40% less than the transfers made in FY10.
The City provides water, wastewater, and solid waste utility services to the local population for the following combined fees (including sales tax):
-Regular residential: $90.56 per month
-Senior citizen residential: $55.04 per month
-Commercial: $125.35 per month
There is also a metered rate structure for large volume users which include Hoonah City Schools, Hoonah Cold Storage, and Point Sophia.|