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Agenda Item No. 5B ORDINANCE NO. 2012–03 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL CERRITO AMENDING EL CERRITO MUNICIPAL CODE SECTION 2.04.300 – FINANCIAL ADVISORY BOARD WHEREAS, the Financial Advisory Board was established by Ordinance 2000-3 and codified as El Cerrito Municipal Code 2.04.300 for the purpose of providing citizen input on financial matters related to the City; and WHEREAS, Ordinance 2007-2 was adopted to revise El Cerrito Municipal Code Section 2.04.300 relating to the appointment of FAB members; and WHEREAS, Ordinance 2010-1 amended El Cerrito Municipal Code Section 2.04.300 to further clarify the duties and responsibilities of the Financial Advisory Board; and WHEREAS, the Financial Advisory Board recently reviewed El Cerrito Municipal Code Section 2.04.300 and recommends deleting references to the Redevelopment Agency due to the dissolution of the Redevelopment Agency by the State of California and also recommends further amendment of the El Cerrito Municipal Code to further refine and clarify the Financial Advisory Board’s duties and responsibilities, including an annual review of City Council compensation. NOW THEREFORE, the City Council of the City of El Cerrito does hereby ordain as follows: SECTION 1: Chapter 2.04.300 of the El Cerrito Municipal Code is hereby amended with the following additions and deletions to read as follows (additions in underline; deletions in strikethrough): 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 the redevelopment agencyall component units each year to assist the city council and redevelopment agency in making decisions on major expenditures and revenue sources, and to include a review of theCity Council compensation consistent with county-wide recommendations included in Contra Costa Grand Jury Report No. 1104; 2. To monitor the city and redevelopment agency 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 city's investment Investment policies Policy and make recommendations regarding the managing of the city's financial reserves to assure maximum returns on approved investments; ---PAGE BREAK--- Agenda Item No. 5B 4. When requested by the city council, redevelopment agency board, 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 and the redevelopment agency with recommended changes in financial practices; 6. To review and make recommendations on all proposed bonds, or other debt instruments or long term obligations to be issued or assumed by the city or the redevelopment agency; 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. SECTION 2 This rdinance shall take effect and be enforced thirty (30) days after the date of its adoption, and prior to the expiration of fifteen (15) days from the passage thereof, the ordinance or a summary thereof shall be posted or published as may be required by law, and thereafter the same shall be in full force and effect. The foregoing ordinance was introduced at a regular meeting of the City Council of the City of El Cerrito on November 20, 2012 and approved by the following vote: AYES: Councilmembers Abelson, Benassini, Lyman and Mayor Jones NOES: None ABSENT: Councilmember Cheng ABSTAIN: None At a regular meeting of the City Council of the City of El Cerrito held on December 18, 2012 this Ordinance was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: APPROVED: Gregory B. Lyman, Mayor ATTEST: Cheryl Morse, City Clerk ---PAGE BREAK--- Agenda Item No. 5B IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on December 2012. Cheryl Morse, City Clerk