4.1c ERMUSR 03-09-2021 - Laserfiche WebLink

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COMMISSION POLICY Section:Category: GovernanceDelegation to Management Policies Policy Reference:Policy Title: G.4hFinancial Planning and Budgeting PURPOSE: With this policy, the Commission affirms the importance of financial planning and budgeting and sets forth its expectations for the General Manager in terms of the effective development, implementation, monitoring, and updating of the CommissionFinancial Plan and Business Plan/Budget. (See Strategic and Business Planning Policy) POLICY: The General Manager will propose for Commission approval a Financial Plan that supports the Strategic Plan and provides credible projections of expenses and revenues (in major categories), reserve fund balances, and key financial ratios for not less than five (5) future fiscal years. The General Manager will propose for Commission approval a Business Plan/Budget for each fiscal year that is reasonably consistent with the projections contained in the Commission approved Financial Plan. Within the financial limits established by the Commission through its approved Financial Plan and Business Plan/Budget, the General Manager shall provide adequate resources for the effective execution of the Strategic Plan and for the accomplishment of the specific operating and financial results contained in the Business Plan/Budget. Consistent with this general statement, the General Manager shall implement financial planning andbudgeting that: 1. Is based on credible assumptions about variables that are likely to affect ERMU financial performance. 2. Includes credible projections of revenues, expenses, cash flow, mandatory and discretionary reserve funds, fund balances, and key financial ratios for a period of at least five (5) future fiscal years. ______________________________________________________________________________ Page 1of 2 220