title
ESTABLISHMENT AND ADOPTION OF THE
FINANCE POLICIES MANUAL
RESOLUTION NO. 23-32
end
ACTION
recommendation
Adopt Resolution No. 23-32, approving NTMWD’s Investment Policy and Investment Strategy and authorize the establishment and adoption of the Finance Policies Manual with the following sections:
1 - Fiscal Management Policy (new)
2 - Fund Balance Policy (amended)
3 - Debt Management Policy (amended)
4 - General Investment Policy (amended)
5 - Investment Policy for Retirement Fund
6 - Water Variable Cost Rebate Policy
7 - Procurement Policy
8 - Grant Management Policy
9 - Identity Theft Prevention Policy and
Exhibit A - NTMWD Investment Strategy Statement
Exhibit B - Authorized Investment Training Sources
Exhibit C - Authorized Investment Advisors and Brokers
end
PURPOSE
The current Administration and Finance Policies Manual is recommended to be split into separate Administration Policies and Finance Policies Manuals. In the Finance Policies Manual, a Fiscal Management Policy has been added to establish the basic framework for the financial management of the District and the Employee Concession Committee Policy is being converted to an Administrative Directive and will no longer be included in the Manual. Other amendments are recommended to align with best practices, clarify and correct existing language.
The source of the amendments is the language previously found in the original Administration and Finance Policies Manual.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors establish and adopt the Finance Policies Manual and Resolution No. 23-32, approving NTMWD’s Investment Policy and Investment Strategy; and a statement documenting that the policy was reviewed by the Board in compliance with the Public Funds Investment Act.
|
|
|
|
Strategic Objective: |
Objective: 2.1: Efficient Business Practices, and 2.3; Rigorous Financial Management |
This item was reviewed with the Finance Committee on August 9, 2023, and with the Policy Committee on September 13, 2023. The Finance and Policy Committees recommend the adoption of the Finance Policies Manual.
DRIVER(S) FOR THIS PROJECT
|
☒ Regulatory Compliance |
☐ Asset Condition |
|
☐ Capacity |
☐ Redundancy/Resiliency |
|
☐ Relocation or External Requests |
☐ Operational Efficiency |
|
☐ Safety |
☒ Administrative |
|
☒ Policy |
☐ Other _____________ |
BACKGROUND
• In April 2016, the Board Policies Manual combined many existing Administration and Finance- related policies into the Administration and Finance Polices Manual, which was adopted by the Board of Directors.
• The most recent amendments to the Administration and Finance Policies Manual were approved in August 2022.
• The NTMWD Administration and Finance Policies Manual is being split into the NTMWD Finance Policies Manual and the Administration Policies Manual. The Administration Policies Manual is recommended in a separate action.
• Changes to the proposed Finance Policies Manual include:
o Section 2 - Fund Balance Policy is amended to:
§ Move budgeting language to the Fiscal Management Policy,
§ Remove references to the Strategic Financial Plans as a source of planned balances,
§ Document that Debt Service Reserve Funds may be funded with cash, not just bond proceeds,
§ Combine Contingency section with Reserve for Maintenance section,
§ Unless otherwise stated, Escrow and Contingency Fund balances will target 90 days of Operations and Maintenance and
§ Additional miscellaneous clarifications.
o Section 3 - Debt Management Policy is amended to:
§ Clarify that Extendable Commercial Paper (ECP) bonds will be issued with Board approval except in the event of a failed remarketing, as allowed by the Board’s approved annual ECP refunding Resolution,
§ Move budgeting language to the Fiscal Management Policy,
§ Remove procedural language,
§ Expand on responsibilities and
§ Add compliance language.
o Section 4 - General Investment Policy is amended for minor clarifying changes.
• Copies of the redline of the Administration and Finance Policies Manual and a clean version of the proposed Finance Policies Manual as well as Resolution No. 23-32 are attached.