Nome Joint Utility is working on a broken budget—a financial plan that is unbalanced and unrealistic. That’s the takeaway from the Rural Utility Business Advisor report, or RUBA—delivered to the Nome City Council and utility board this week.
Amid discussions of the still-forming city marijuana laws, the Nome City Council also approved an electricity rate hike and operating budget for the city utility.
An audit for 2013 finds the accounting practices for the city’s utility are sound, but operating at a loss that could lead to debt struggles down the road if changes aren’t made.
At the heart of Monday’s meeting with the Nome Joint Utility and City Council was a question: can NJUS use part of the $2.2 million credit line from the city to pay for fuel?
Cutting fluoridation to weekdays, and a possible rate hike, were just some of the proposals at Saturday’s meeting to trim the utility’s 2015 budget.
“Basically we need to figure out how to get $1 million closer than we are today,” Utility Manager John Handeland said of the group’s 2015 budget.
Focused on city and utility employee contracts, the Nome City Council’s proposal to collect property tax on aircraft died on the table after failing to get sufficient votes.
The City Council and the Nome Joint Utility grappled with the details of a $2.2 million line of credit at a special session Friday, Nov. 14.
Removing the sales tax exemptions from local churches and nonprofits could bring in up to $300,000 a year, city finance officials say.
An emergency work session of the Nome Joint Utility Board was called to order last week, to discuss the utility’s finances. It would appear NJUS has a cash flow problem.