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Financial Advisory Board (FAB) FISCAL YEAR 2014-2015 WORK PLAN AND 2013-2014 ACCOMPLISHMENTS Members: Peter Vranich (Chair), Richard Bartke (Vice-Chair), Gregory Crump, Hale Kronenberg, Dick Patterson Agenda Item 4(C) ---PAGE BREAK--- Financial Advisory Board Enabling Legislation El Cerrito Municipal Code 2.04.300 Financial Advisory Board A. There shall be a financial advisory board consisting of five members who reside in the city and have demonstrated expertise in financial management, accounting, fiscal analysis, computer applications, economic analysis or related skills. The financial advisory board shall have the powers and duties stated below, and such other duties as the council shall decide: 1. To conduct a review and make recommendations on the proposed annual budget and long-term financial plan for the city and all component units to assist the city council in making decisions on major expenditures and revenue sources, and to include a review of city council compensation consistent with county-wide recommendations included in Contra Costa Grand Jury Report No. 1104; 2. To monitor the city expenditure and revenue patterns and recommend adjustments to the long-term financial plans as necessary; 3. To conduct an annual review of the city's comprehensive financial policy and investment policy and make recommendations regarding the managing of the city's financial reserves to assure maximum returns on approved investments; 4. When requested by the city council, or staff to evaluate proposals, programs and contracts for both long- and short-term financial consequences, assess alternatives and make appropriate recommendations; 5. To review the annual audit and management letter and provide the city council with recommended changes in financial practices; 6. To review and make recommendations on all proposed bonds, other debt instruments or long term obligations to be issued or assumed by the city; and 7. To review the form and format of budget documents, agenda bills and other recurring financial reports prepared by the city and issue recommendations to the city council and the city manager regarding how the form and format of these documents may be modified to allow for greater clarity in the manner financial information is reported. (Ord. 2007-2 § 1, 2007: Ord. 2000-3 Div. 1, 2000.) (Ord. No. 2010-01, § 1, 1-19-2010; Ord. No. 2012-03, § 1, 12-18-2012) ---PAGE BREAK--- Fiscal Year 2013-14 Accomplishments FAB’s agendas in 2013-2014 were frequently focused on preparing recommendations to Council on the financial policies the proposed two-year budget. Responsibilities (1-7 align to enabling legislation) Activities Performed Status 1. To conduct a review and make recommendations on the proposed annual budget and long-term financial plan for the city and all component units to assist the city council in making decisions on major expenditures and revenue sources, and to include a review of city council compensation consistent with county-wide recommendations included in Contra Costa Grand Jury Report No. 1104; • Reviewed City’s two-year budget • Commented recommendations directly to Council on 6/17 Editorial amendments accepted by Council; Policy edits deferred 3. To conduct an annual review of the city's comprehensive financial policy and investment policy and make recommendations regarding the managing of the city's financial reserves to assure maximum returns on approved investments; • Reviewed Investment Policy • Reviewed Comprehensive Financial Policy • Presented recommendations directly to Council on 4/22 • Received and reviewed Quarterly Investment Reports FAB to revisit policy recommendatio ns in 2014-15 5. To review the annual audit and management letter and provide the city council with recommended changes in financial practices; • Reviewed and commented on MOIC • Reviewed and commented on CAFR • Addressed recommendations directed to FAB Complete ---PAGE BREAK--- Fiscal Year 2014-15 Work Plan FAB has created a work plan with the assistance of the Finance Director for the current fiscal year. This plan is subject to change. Responsibilities (1-7 align to enabling legislation) Proposed Activities Timeline 0. Meet at the posted time and place unless there is no agenda, and more often as required, such as April and May for budget deliberations; hear reports from Council and staff liaisons; listen to members of the public; • Regular meetings of FAB • Special meetings of FAB, as needed or more often as needed 1. To conduct a review and make recommendations on the proposed annual budget and long-term financial plan for the city and all component units to assist the city council in making decisions on major expenditures and revenue sources, and to include a review of city council compensation consistent with county-wide recommendations included in Contra Costa Grand Jury Report No. 1104; • Review and comment on the mid-term budget • Recommend actions, as appropriate April – June 2015 2. To monitor the city expenditure and revenue patterns and recommend adjustments to the long-term financial plans as necessary; • Review periodic budget updates prepared by staff • Recommend adjustments, as appropriate As needed 3. To conduct an annual review of the city's comprehensive financial policy and investment policy and make recommendations regarding the managing of the city's financial reserves to assure maximum returns on approved investments; • Summarize and review prior FAB recommendations • Consolidate recommendations and submit to Council • Review quarterly investment reports and recommend alternative investments, as appropriate September 2015 ---PAGE BREAK--- Fiscal Year 2014-15 Work Plan, cont. FAB has created a work plan with the assistance of the Finance Director for the current fiscal year. This plan is subject to change. Responsibilities (1-7 align to enabling legislation) Proposed Activities Timeline 4. When requested by the city council, or staff to evaluate proposals, programs and contracts for both long- and short-term financial consequences, assess alternatives and make appropriate recommendations; • As requested As needed 5. To review the annual audit and management letter and provide the city council with recommended changes in financial practices; • Review and comment on MOIC • Review and comment on CAFR • Comment to Council, as appropriate • Address recommendations directed to FAB, as necessary March – April 2015 6. To review and make recommendations on all proposed bonds, other debt instruments or long term obligations to be issued or assumed by the city; and • As requested June – September 2015 7. To review the form and format of budget documents, agenda bills and other recurring financial reports prepared by the city and issue recommendations to the city council and the city manager regarding how the form and format of these documents may be modified to allow for greater clarity in the manner financial information is reported. • Review and comment on quarterly investment reports, as appropriate Ongoing 8. To perform work as requested by Council or Staff • Review and propose revisions to the City’s Purchasing Policy/Procedures December – April 2015