BIRCH BAY WATER & SEWER DISTRICT

COMMISSION POLICY

SUBJECT: Budget and CIP Adoption, Amendment, and Management.

  1. It is the policy of the Board of Commissioners that the Board adopt a Budget and CIP to direct District spending each calendar year.
  2. For efficient operations, the District issues purchase orders to secure needed goods and services on an ongoing basis during the calendar year.
  3. Approved purchase orders constitute a binding commitment of District funds.
  4. The authority for issuance of purchase orders derives from the Budget and CIP. Except for excise and use tax, bonded indebtedness payments, payroll, and merchant service fees, spending or Board approved Budget and CIP appropriations is initiated through purchase orders and payment requisitions.
  5. Excise and use tax and bonded indebtedness payments take place through wire transfers or electronic fund transfers.
  6. Payroll outlays are implemented by means of a payroll system and recorded as manual checks in the financial system. .
  7. To ensure efficient operations, the Board has delegated authority to the General Manager to approve such purchase orders, payment requisitions; electronic fund transfers and manual checks.
  8. The Board oversees the General Manager’s exercise of said delegated spending authority through its approval of vouchers, and the manual checks register in open public meetings.
  9. The Board further superintends the General Manager’s exercise of said delegated spending authority through its review of financial reports in open public meetings.
  10. The Board finds it appropriate to delineate and clarify this delegation of spending authority by means of Board policy statements.

POLICY

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

Budget - Operating. The General Manager shall manage District finances such that end-of-year operating expenditures are less than or equal to the total District Operating Budget for that calendar year. The District financials are closed on December 31 of each year and has no open accounting period. The General Manager is generally expected to stay within budgeted amounts at the account level but may, as he deems appropriate and necessary, move expenditure budget between accounts so long as total budgeted expenditures in the District Operating Budget do not increase. The General Manager shall communicate all such budget changes to the Board in writing promptly, but in any case not later than the next regular Board meeting following his approval of the budget change. All increases in budget accounts that increase the total expenditures in the District Operating Budget require specific Board approval to amend said Budget. The General Manager shall provide written quarterly reports to the Board on the status of the Operating Budget.

The Operating Budget shall include a listing of positions with associated salaries and benefits. The General Manager may not add or eliminate positions or change the rates of pay specified in the Operating Budget without specific Board approval. The Operating Budget shall include as an exhibit a statement of interest and principal payments for the District’s bonded indebtedness and other contractual debt service payments. The General Manager may not change the debt service payments specified in said exhibit without specific Board approval.

Budget – CIP. All CIP projects will be included in the CIP portion of the Budget document. Each CIP project will include the following elements: (1) narrative description; (2) multiyear budget consisting of Prior Years’ CIP Expenditures, Current Year CIP Budget and Future CIP Expenditures by year. The total of these elements equals the total budget for each CIP project; (3) a unique project number, which will be used in the District’s financial software to track budget and expenditures for that project. CIP projects shall consist only of efforts appropriate for capitalization. The General Manager shall manage at the CIP project level such that current year CIP Budget expenditures are less than or equal to the Current Year Budget for each individual CIP project. Any increase in Current Year Budget for each individual CIP project shall require specific Board approval to amend said Budget. The General Manager shall provide written reports no less than quarterly to the Board on the status of the CIP Budget.

Fund Management. The General Manager will monitor District funds and communicate with the Board regarding significant changes in expected fund status, whether from expenditures or revenues. The General Manager shall provide written quarterly reports to the Board on fund status.

Emergencies. Circumstances may arise which require immediate steps that involve executing emergency purchase orders not consistent with the adopted Budget and CIP and/or designated control levels. There are two levels of emergency: those that do not involve exemption from competitive bidding requirements per RCW 39.04.280 (Level 1) and those that do (Level 2). The General Manager, Operations Manager or Finance Director may declare a Level 1 emergency and approve PO’s to respond to the emergency. The General Manager, Operations Manager or Finance Director may declare a Level 2 emergency and approve purchase orders, waive competitive bidding requirements and award contracts to respond to the emergency. The General Manager will inform the Board of the Level 1 or Level 2 emergency, the reasons for it and steps being taken to address it. This communication will include but not be limited to description of the emergency, purchase orders and contracts executed and expected operational and financial consequences of the emergency. The Board will review the emergency situation at its next regular or special meeting. If a contract is awarded without competitive bidding under a Level 2 emergency, the Board will make a finding as to the existence of an emergency pursuant to RCW 39.04.280(2)(b).

Approved: May 12, 2011
Amended: Aug 27, 2015

Navigation
Print/export
QR Code
QR Code BIRCH BAY WATER & SEWER DISTRICT (generated for current page)