BIRCH BAY WATER & SEWER DISTRICT

SUBJECT: Budget and CIP Adoption.

1. There is no statute requiring that the District adopt a Budget and CIP;
2. It has been the policy of the Board of Commissioners that the Board adopt a Budget and CIP to direct District spending each calendar year; and
3. For efficient operations, the District issues purchase orders to secure needed goods and services on an ongoing basis during the calendar year; and
4. Approved purchase orders constitute a binding commitment of District funds; and
5. The authority for issuance of purchase orders derives from the Budget and CIP or other specific Board approval action; and
6. It has been the policy of the Board of Commissioners that the authority to issue purchase orders may be based on the proposed Budget and CIP pending Board adoption of the Budget and CIP; and
7. The Board of Commissioners finds that it is appropriate to adopt the District’s Budget and CIP before issuance of purchase orders based on said Budget and CIP.

The District’s Budget and CIP shall be adopted prior to January 1 of the calendar year that provides the basis of the Budget.

Approved: May 12, 2011