BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Discuss Establishment of a Board Budget Committee.
End
RECOMMENDATION:
Recommendation
Support 2020 Board Chair Hsueh's Recommendation to Not Establish a Board Budget Committee.
Body
SUMMARY:
On August 11, 2020, the Board received an overview of the current budget process and provided direction to staff to implement a rolling biennial budget process upon completion of, and demonstrated stability of, the Infor ERP system implementation. In addition, the Board requested further information on best practices as it relates to the use of a Budget Committee.
Although many Water Districts throughout California use a "Finance Committee", Chair Hsueh does not recommend the formation of a Finance Committee for Valley Water for the following reasons:
1. So that no Board member is excluded from engaging in important Finance conversations, which are currently had at the full Board level. For reference, the following finance topics represent typical topics that a Finance Committee would address, which are currently addressed by the full Board:
* Rate setting - Must follow District Act prescribed process (Board members are extremely engaged in this process, which includes multiple Board meetings, advisory committee outreach, public hearings, etc.)
* Budget setting - Full Board engaged via multiple Board meetings including a detailed work study session.
* Debt - All debt issuances come to full Board for approval after approval from the Public Facilities Finance Corporation (PFFC).
* Investments - Monthly and quarterly written investment reports are provided to the full Board via non-agenda process. Board has been very engaged as evidenced by several recently approved investment policy changes.
* Accounting - The Board Audit Committee already reviews the Comprehensive Annual Financial Report prior to going to the full Board.
* Actual vs Budget performance monitoring - Staff provides mid-year actual versus budget, and year...
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