DATE: March 2, 2026
TO: Mayor and Members of the City Council
President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, City/District Manager
FROM: Priscilla Schaus, Communications Director/City Clerk Nate Cruz, Finance Director
DEPARTMENT: Communications/City Clerk
Finance
SUBJECT: DISBANDMENT OF THE AUDIT COMMITTEE
RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors approve the attached resolutions authorizing the disbandment of the Audit Committee.
EXECUTIVE SUMMARY
At the February 10, 2026, City Council Annual Retreat, City Council/EMID Board of Directors reviewed the existing Citizens Advisory Committees and provided policy direction to authorize the disbandment of the Audit Committee.
BACKGROUND/ANALYSIS
The Audit Committee was first created in 1977 with the purpose to advise and assist the City Council/District Board regarding tax, finance, and audit procedures, as well as the data processing guidelines for the City/District. Additionally, the Committee would act in an advisory capacity on other financial matters as requested by the Council/Board. The committee was disbanded on October 4, 2016 via City Resolution No. 2016-70 and EMID Resolution No.3358 and re-established in 2017 with an updated policy statement and membership.
At the February 10, 2026, City Council Annual Retreat, City Council reviewed the existing Citizens Advisory Committees to assess whether committees aligned with Council priorities and their effectiveness. The presentation included review of the Audit Committee’s purpose and staff time needed to administer the committee. The Audit Committee’s purpose is to “advise the City Council regarding the selection of the independent auditor(s), the review of the annual audit process and financial statements, and other financial matters as requested by the City Council.” In the review of the purpose, the Council found that the committee’s value did not justify the staff time. The committee meets twice a year in April and November and in recent years, there have been attendance issues with at least one committee member absent from each meeting. Staff analyzed the number of staff hours to prepare, notice, and hold the committee meetings and determined 40-44 hours of staff time per year is needed.
Following review of the committees, City Council provided policy direction to staff to proceed with disbanding the Audit Committee. Selection of the auditors occurs once every five years, and the City Council may create an ad hoc committee for that purpose or provide other independent input into the auditor selection process.
California Environmental Quality Act
Not Applicable
FISCAL IMPACT
There is no fiscal impact.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
City Council Operations
ATTACHMENTS:
Attachment 1 – City Resolution
Attachment 2 – EMID Resolution