FUND MANAGEMENT OPTIONS
BUSINESS ITEMS - GENERAL BUSINESS, NON-HEARING ITEMS
San Benito LAFCO is evaluating alternatives to County fund management to address prolonged invoice processing delays, conflicts between County fiscal procedures and LAFCO’s adopted policies, and continued inclusion in the County Cost Allocation Plan despite no longer using many County services. Payment delays can disrupt vendor relationships and service provision, while reliance on the County’s financial system reinforces misconceptions among County staff and the public that LAFCO is a County department rather than an independent, state-mandated agency governed by its own Commission. The review seeks an arrangement that clearly recognizes LAFCO’s independent authority, ensures timely payments, aligns charges with services received, and maintains appropriate financial controls, reporting, and oversight at a reasonable cost.
1) Discuss the options and direct the Executive Officer to develop a preferred approach or obtain quotes for two or more options. Staff recommends initially comparing City management and a hybrid arrangement, adding full independent management if requested.