TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager
1. Subject
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Investment and Audit Committee’s separation and related changes to Orange Municipal Code Title 2. Resolution No. 11522 and Ordinance Nos. 01-24, 02-24, and 03-24.
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2. Summary
City Council Resolution No. 11387 merged the previously separated Audit Committee and Investment Advisory Committee. Resolution No. 11522 rescinds Resolution No. 11387 while Ordinance Nos. 01-24, 02-24, and 03-24 make related changes to Orange Municipal Code Title 2. Taken together, the resolution and three ordinances eliminate the Investment and Audit Committee, make necessary changes to the Orange Municipal Code, and create two independent committees - the Investment Advisory Committee and Audit Advisory Committee.
3. Recommended Action
recommendation
1. Introduce and conduct First Reading of Ordinance No. 01-24. An Ordinance of the City Council of the City of Orange amending section 2.26.010 of the Orange Municipal Code Related to the Duties of the City Treasurer.
2. Introduce and conduct First Reading of Ordinance No. 02-24. An Ordinance of the City Council of the City of Orange adding Chapter 2.50 to Title 2 of the Orange Municipal Code (Administration and Personnel) establishing the Audit Advisory Committee.
3. Introduce and conduct First Reading of Ordinance No. 03-24. An Ordinance of the City Council of the City of Orange adding Chapter 2.51 to Title 2 of the Orange Municipal Code (Administration and Personnel) establishing the Investment Advisory Committee.
4. Adopt Resolution No. 11522. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11387.
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4. Fiscal Impact
None.
5. Strategic Plan Goals
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
6. Discussion and Background
On April 12, 2022, the Orange City Council adopted Resolution No. 11387. The resolution combined the Audit Committee and Investment Advisory Committee, creating the Investment and Audit Committee.
After reviewing the duties and functions of both boards (as previously existed) it is recommended that the Committees again be separated. Having two separate committees comprised of experts in the same field will provide greater insight and citizen participation. Restoring the previous committees will again allow each committee to focus on important City matters within their area of expertise.
It is recommended that the City Council approve the introduction of Ordinance No. 01-24, amending the City Treasurer’s duties prescribed in Orange Municipal Code (OMC) Section 2.26.010. Ordinance No. 01-24 removes references to the Investment and Audit Committee and provides minor clean-up provisions.
It is also recommended that the City Council adopt Resolution No. 11522 and approve the introduction of Ordinance Nos. 02-24 and 03-24. Collectively, the resolution and two ordinances eliminate the Investment and Audit Committee (Resolution No. 11522) and re-establish the Audit Advisory Committee (Ordinance No. 02-24) and Investment Advisory Committee (Ordinance No. 03-24). All other modifications are intended to promote efficiency, reflect contemporary municipal finance procedures, and encourage collaboration among the committees, staff, and outside consultants (e.g., third-party City auditor).
7. ATTACHMENTS
• Ordinance No. 01-24
• Ordinance No. 01-24 (Redlined)
• Ordinance No. 02-24
• Ordinance No. 03-24
• Resolution No. 11522
• Resolution No. 11387 (Resolution proposed to be rescinded)