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4.1 ERMUSR 06-03-2025______________________________________________________________________________ Page 1 of 1 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Tony Mauren – Governance & Communications Manager MEETING DATE: June 3, 2025 AGENDA ITEM NUMBER: 4.1 SUBJECT: Commission Policy Review – G.4c – Strategic and Business Planning ACTION REQUESTED: Review the policy and provide comment BACKGROUND/DISCUSSION: This month commissioners are reviewing policy G.4c – Strategic and Business Planning to make comments, ask questions, or recommend updates. With policy G.4c, the Commission affirms the importance of strategic and business planning and sets forth its expectations for the General Manager. Staff is recommending one update, reducing the Strategic Plan time period from not less than five years to not less than three years. Staff believes this more closely resembles past practice and allows for greater responsiveness in rapidly changing economic conditions. The proposed deletion in the notes section coincides with the recommended time period edit and removes redundancy with the sentence that immediately proceeds it. ATTACHMENTS: • ERMU Policy – G.4c – Strategic and Business Planning 47 ______________________________________________________________________________ Page 1 of 2 COMMISSION POLICY Section: Category: Governance Delegation to Management Policies Policy Reference: Policy Title: G.4c Strategic and Business Planning PURPOSE: With this policy, the Commission affirms the importance of strategic and business planning and sets forth its expectations for the General Manager in terms of the effective development, implementation, monitoring, and updating of the Commission’s approved Strategic Plan, Financial Plan and Business Plan/Budget. POLICY: The General Manager shall not allow ERMU to operate without the following Commission approved plans: 1. A Strategic Plan that provides strategic direction for a period of not less than three five (53) future fiscal years in terms of high-level elements such as vision, core purpose, core values, mission, key result areas and broadly stated strategic objectives that are intended to achieve the organizational outcomes contained in the Commission’s Authority and Purpose Policies. 2. A Financial Plan covering not less than five (5) future fiscal years (see Financial Planning and Budgeting Policy). 3. A Business Plan/Budget that supports accomplishment of the Strategic Plan and sets forth specific operating and financial results in terms of elements such as actions and outcomes, budgeted financial and other resource requirements, and projected financial statements. Consistent with this general statement, the General Manager shall: 1. Provide the overall direction, leadership, education, and resources needed to engage the Commission, management employees, key staff employees, and other key stakeholders in an effective strategic planning process. 48 ERMU Commission Policy – G.4c Strategic and Business Planning ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 2 2. Present to the Commission for approval a recommended Strategic Plan, a recommended Financial Plan, and a recommended Business Plan/Budget, as well as any subsequent changes to the approved plans that are needed to keep them relevant and effective. The Strategic Plan, as approved by the Commission, will include the high-level elements identified above. Consistent with the strategic direction approved by the Commission, management will implement, monitor, and periodically report to the Commission the status of the Strategic Plan through the use of goals, action plans, and performance measures. The Strategic Plan, Financial Plan, and Business Plan shall not materially deviate from the Commission’s Authority and Purpose Policies. 3. Implement, if the Commission does not approve in a timely manner, the recommended Strategic Plan, Financial Plan, and Business Plan/Budget, as required to effectively manage the ERMU organization and utility enterprises. 4. Use the Strategic Plan as a guide and point of reference for preparing and updating the Financial Plan, Business Plan/Budget and other business management tools. 5. Communicate key elements of the Strategic Plan, Financial Plan, and Business Plan/Budget to ERMU’s Commission, customers, employees, and other stakeholders at appropriate intervals to keep them well-informed about ERMU’s operating environment, strategic direction and desired business and operational performance. 6. Report key business results and other operational outcomes to ERMU’s Commission, customers, employees, and other stakeholders at appropriate intervals, using the Strategic Plan and Business Plan/Budget as a point of reference. Note: The ERMU Commission has established strategic and business planning as an important part of its own Governance Agenda (see Agenda Planning Policy). During the first quarter of each fiscal year (January - March), the Commission will review the most current adopted version of ERMU’s Strategic Plan and Financial Plan, along with the results of the Business Plan/Budget for the preceding fiscal year. The Commission and Management will prepare, and the Commission will adopt an updated Strategic Plan and Business Plan/Budget before the end of each calendar year. During the second and third quarters of every third year, the Commission and Management will work together to re-develop, and the Commission will adopt a Strategic Plan for at least five (5) future fiscal years. Management will prepare, and the Commission will adopt during the fourth quarter (October – December) of each year a Business Plan/Budget that includes management’s revenue/expense budget and projections, including relevant assumptions for two (2) future fiscal years. POLICY HISTORY: Adopted June 13, 2017 Revised June 3, 2025 49