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<br />______________________________________________________________________________ <br /> <br />Page 1 of 2 <br /> <br /> <br /> <br /> <br />COMMISSION POLICY <br /> <br />Section: Category: <br />Governance Delegation to Management Policies <br />Policy Reference: Policy Title: <br />G.4h Financial Planning and Budgeting <br /> <br />PURPOSE: <br /> <br />With this policy, the Commission affirms the importance of financial planning and budgeting <br />and sets forth its expectations for the General Manager in terms of the effective development, <br />implementation, monitoring, and updating of the Commission’s approved Financial Plan and <br />Business Plan/Budget. (See Strategic and Business Planning Policy) <br /> <br />POLICY: <br /> <br />The General Manager will propose for Commission approval a Financial Plan that supports the <br />Strategic Plan and provides credible projections of expenses and revenues (in major categories), <br />reserve fund balances, and key financial ratios for not less than five (5) future fiscal years. <br /> <br />The General Manager will propose for Commission approval a Business Plan/Budget for each <br />fiscal year that is reasonably consistent with the projections contained in the Commission’s <br />approved Financial Plan. <br /> <br />Within the financial limits established by the Commission through its approved Financial Plan <br />and Business Plan/Budget, the General Manager shall provide adequate resources for the <br />effective execution of the Strategic Plan and for the accomplishment of the specific operating <br />and financial results contained in the Business Plan/Budget. <br /> <br />Consistent with this general statement, the General Manager shall implement financial planning <br />and budgeting that: <br /> <br />1. Is based on credible assumptions about variables that are likely to affect ERMU’s future <br />financial performance. <br /> <br />2. Includes credible projections of revenues, expenses, cash flow, mandatory and discretionary <br />reserve funds, fund balances, and key financial ratios for a period of at least five (5) future <br />fiscal years. <br />150