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2151-3. Control and Oversight.
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(a) Within the scope of powers outlined in this document, the Board of Supervisors has final authority on use of Headwaters Funds. A Headwaters Fund Board, County Economic Development Division staff and the Treasurer/Tax Collector implement the program. Applications for funding from local businesses, community groups and governmental organizations are brought to the Headwaters Fund Board or qualified financial institutions. (Ord. 2289, § 1, 12/17/2002)

(b) The Board of Supervisors has the final authority and accountability for the use of the funds, within the scope of powers outlined in this document. They appoint members to the Headwaters Fund Board and oversee County staff support. They review and approve Headwaters Fund Board funding recommendations. The Board also provides oversight of the process focusing on the following issues: (Ord. No. 2289, § 1, 12/17/2002)

(1) Adherence to the Headwaters Fund Charter; (Ord. 2289, § 1, 12/17/2002)

(2) Review and approval of policies and annual budgets; (Ord. 2289, § 1, 12/17/2002)

(3) Public involvement and reporting; (Ord. 2289, § 1, 12/17/2002)

(4) Objective implementation of the grant approval process; (Ord. 2289, § 1, 12/17/2002)

(5) Approval of Grant and Community Investment Fund projects recommended by Headwaters Fund Board and staff; (Ord. 2289, § 1, 12/17/2002)

(6) Proper financial management of the Liquidity Fund, Revolving Loan Funds, Community Investment Funds, and Grant Funds; (Ord. 2289, § 1, 12/17/2002)

(7) Periodic updates and revisions to the Charter. (Ord. 2289, § 1, 12/17/2002)

(c) The Headwaters Fund Board (HFB) consists of seven members of the community appointed by the Board of Supervisors. The role of the HFB is the following: (Ord. No. 2289, § 1, 12/17/2002)

(1) Reviews and recommends to the Board of Supervisors the Grant and Community Investment Fund projects for funding according to Headwaters Fund guidelines; (Ord. 2289, § 1, 12/17/2002)

(2) Recommends to the Board of Supervisors the annual budgets for loans, investments, grants and administration; (Ord. 2289, § 1, 12/17/2002)

(3) Recommends to the Board of Supervisors the Headwaters Fund policies and funding criteria; (Ord. 2289, § 1, 12/17/2002)

(4) Reviews portfolio management strategy in accordance with Charter goals; (Ord. 2289, § 1, 12/17/2002)

(5) Recommends to the Board of Supervisors updates, revisions and variances to the Headwaters Fund Charter; (Ord. 2289, § 1, 12/17/2002)

(6) Issues annual Community Benefits Report on the overall Headwaters Fund portfolio. The Community Benefits Report will summarize chosen projects of the Headwaters Fund and their benefits to the community. The report will include a financial summary of fund balances, expenditures, and revenues and a profile of significant community outreach, public participation and application processing activities. (Ord. 2289, § 1, 12/17/2002)

(7) The HFB will be provided with staff support and an annual budget for technical or financial consulting to assist in application analysis and review. (Ord. 2289, § 1, 12/17/2002)

(d) Treasurer/Tax Collector manages the Headwaters Liquidity Fund. This fund contains the primary principal. Disbursements are made from this fund to the Revolving Loan Fund, Community Investment Fund and Grant Fund as funding applications are approved. The Treasurer/Tax Collector must abide by public investment and Headwaters Fund guidelines and periodically report financial activity. (Ord. 2289, § 1, 12/17/2002)

(e) Headwaters Fund Staff consists of the Director of Community Development Services and staff of the Economic Development Division. The role of the staff is the following: (Ord. No. 2289, § 1, 12/17/2002)

(1) Implementation of the Headwaters Fund program from development and administration of systems, to program evaluation and reporting; (Ord. 2289, § 1, 12/17/2002)

(2) Assists the public in preparing Grant and Community Investment Fund applications; (Ord. 2289, § 1, 12/17/2002)

(3) Screens Grant and Community Investment Fund project applications; (Ord. 2289, § 1, 12/17/2002)

(4) Monitors loan portfolio and financial institution performance; (Ord. 2289, § 1, 12/17/2002)

(5) Collects and compiles data on investment impacts and prepares annual draft of Community Benefits Report; (Ord. 2289, § 1, 12/17/2002)

(6) Works jointly with Treasurer/Tax Collector on financial management and reporting; (Ord. 2289, § 1, 12/17/2002)

(7) Maintains budgets, accounting and bookkeeping systems with the County Auditor and Controller; (Ord. 2289, § 1, 12/17/2002)

(8) Provides public information, maintains program manuals and records, and provides legal support to HFB; (Ord. 2289, § 1, 12/17/2002)

(9) Provides administrative support to HFB and Board of Supervisors. (Ord. 2289, § 1, 12/17/2002)

(10) Legal support is provided by the County Counsel assigned to Community Development Services. Staff will be ultimately responsible to the Board of Supervisors for meeting Headwaters Fund expectations. (Ord. 2289, § 1, 12/17/2002)

(f) Qualified Financial Institutions package, underwrite, and service financing made through the Headwaters Revolving Loan Fund. A financial institution applies to the Headwaters Fund staff and HFB to become a qualified financial institution; the Board of Supervisors approves financial institution contracts for access to Headwaters Revolving Loan Funds. Loan products, terms, audit provision and reporting are specified by contract. Contract terms must be consistent with the Board of Supervisors adopted Revolving Loan Fund Administration Manual.

(1) Revolving Loan Fund applicants apply directly to these financial institutions for funding. The financial institutions evaluate and approve the financing according to their criteria, the Headwaters Fund criteria, and the specific covenants of their contracts with the County. (Ord. 2289, § 1, 12/17/2002)

(g) Local Businesses, Community Groups and Governments prepare loan and grant applications consistent with Headwaters Fund criteria and implement Headwaters Fund projects under contract with qualified financial institutions or the County. (Ord. 2289, § 1, 12/17/2002)