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HomeMy WebLinkAboutReso. 2026-010 - Establishing a Financial Advisory Committeea iin11grem's N lor-joel xly {i 1.111 "my-IJUT 112 110 No] WHEREAS, The City Council desires to enhance fiscal transparency, community engagement, and long-term financial sustainability; and WHEREAS, a Financial Advisory Committee provides informed, community-based perspectives on economic trends, budget priorities, and financial policy considerations; NOW, THEREFORE, BE IT RESOLVED by the City Council that a Financial Advisory Committee is hereby established with the following authority, purpose, composition, and operating provisions: 1. Authority The Financial Advisory Committee (FAC) is established by and derives its authority from the City Council. The FAC serves solely in an advisory capacity and shall provide recommendations and observations to the City Council. The FAC shall have no independent decision-making authority and shall not direct City staff. The City Manager and Finance Director shall support the Committee by providing relevant financial information, analysis, and staff presentations. 2. Purpose The purpose of the Financial Advisory Committee is to (1) provide advisory input to the City Council on budget development, financial priorities, and long-term fiscal sustainability, (2) review major financial assumptions, economic conditions, and community trends that may impact City revenues and expenditures, (3) offer community -informed perspectives on spending priorities in relation to adopted Council goals and community needs, (4) review staff -prepared materials intended for City Council consideration and provide non-binding feedback, and (5) strengthen transparency and public trust in the City's financial decision-making process. 3. Composition and Membership The Financial Advisory Committee shall consist of seven (7) members, and all decisions shall be made by a vote of a majority of the filled positions. Two (2) members of the Committee shall be members of the Redding City Council, who shall be nominated by the Mayor and appointed by vote of the Council. To provide for continuity, the Council Members on the Committee shall serve staggered two (2) year terms. The remaining five (5) members shall be appointed members of the public appointed by the Council. Following an open public application process, each Council Member shall suggest one person to the committee, and all appointments shall be made by vote of the full Council. To the extent practicable, members of the committee shall reflect a broad cross-section of the local economy and community perspective. In selecting members of the committee, the Council shall endeavor to prioritize candidates in roles providing insight into purchasing behavior, spending trends, and the social and economic pulse of the community, such as major employers or key local industries, such as healthcare, retail, hospitality, construction, insurance, or financial services. Candidates should also be considered for their financial background and expertise, such as CPAs, CFOs, CEOs, or senior financial professionals. Community members appointed to the committee must comply with applicable ethics laws, conflict-of-interest requirements, and disclosure obligations and shall not have any financial or business relationship with the City that would impair independence. All members must be able to evaluate financial matters objectively and in the public interest, Community members on the Committee shall serve four (4) year terms, staggered to align with Council Member terms for continuity and institutional knowledge. Terms of each appointed member will end one year after the end of the term of each Council Member. Nothing shall prohibit a community from being reappointed following expiration of their terms, if approved by Council. Should either of the two (2) Council Members appointed to the Committee vacate the office of City Council Member, they shall immediately and automatically vacate their seat on the Committee. Community Members on the Committee shall serve at the pleasure of the Council and may be removed by a vote thereof. 4. Staffing The City Manager and Director of Finance, or their designees, shall attend Committee meetings and ensure staff availability to support Committee work to provide information regarding audit results and financial information. The Committee, however, shall not have authority to direct staff, and any Committee requests that may require the use of City resources shall be referred to the City Council. 5. Meeting Schedule The Financial Advisory Committee shall adopt a regular meeting schedule sufficient to meet the purposes and functions for which it is formed. Meetings may include review of materials and presentations staff intends to bring forward to the City Council. The Committee shall review budget priorities, community conditions, and adopted Council goals to inform advisory recommendations regarding the budget. Meeting schedule should account for increased frequency during biennial budget development years, including additional meetings aligned with the budget preparation process. All meetings shall be publicly noticed, open to the public, and include an opportunity for public comment in accordance with applicable open meeting laws, 6. Sunset Clause The need for, structure, and functions of the Financial Advisory Committee shall be reviewed by the City Council after two (2) years of operation. The review shall consider data, outcomes, and overall effectiveness in meeting the Committee's purpose. Following review, the City Council may continue, modify, or dissolve the Committee by Council action. I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 3rd day of February, 2026, by the following vote: AYES: COUNCIL MEMBERS: - AUDETTE, DIIANUKA, MUNNS, RESNER, LITTAU NOES- COUNCIL MEMBERS. - NONE ABSENT- COUNCIL MEMBERS. - NONE ABSTAIN: COUNCIL MEMBERS: - NONE Cd t - MIKE LITTAU, Mayor ATTEST: FO APPROVED: ARLENE TIPTON, City Clerk