Description of Intent:
This section of the charter describes how the public bank will be managed and governed (overseen).
The bank should be managed by professional managers experienced in both commercial bank operations and proper, safe underwriting of loans.
In order to provide appropriate direction and oversight, we propose the bank governance consist of a governing body and two advisory bodies, one representing businesses and the other the citizens of Nevada County.
The governing body, the Nevada County Bank Commission, will select and appoint the bank officers and determine their salaries. It would also be responsible for providing direction to those officers and authorizing all large loans (in excess of $250,000) in order to be a check on the bank’s loan activities and control risk.
In order to ensure that the Nevada County Bank Commission is responsible to the citizens of Nevada County, we propose that the members of that commission be County officials who have fiduciary responsibility for the County’s finances as part of their normal responsibilities and, with one possible exception, be elected officials. Also, the intent is to not have all of the members of the commission be able to hold that position for extended periods so that the “power of the purse” is not accumulated by any individual.
As such, we propose that the members of the Nevada County Bank Commission be the County Treasurer, the Assessor-Controller and one rotating member of the Board of Supervisors. The first year of operation of the bank, the member from the Board of Supervisors shall be the Supervisor of District 1, the second year the Supervisor of District 2, and so on, after which the cycle repeats.
The County Executive Officer could be an alternative to the Assessor-Controller. Both have fiduciary responsibilities but the Assessor-Controller is an elected position while the County Executive Officer is appointed by the Board of Supervisors.
As an alternative, the Nevada County Bank Commission could be expanded to include one delegate from each of the two advisory boards, for a total of five members.
The Citizens Advisory Board and the Business Advisory Board will meet monthly with the BNC officers and the Nevada County Bank Commission to review policies, procedures, decisions, activities, etc.. Both boards will have advisory capacity only.
The Business Advisory Board shall consist of one delegate each from significant business groups and associations within the County such as the Chambers of Commerce, the Contractor’s Association, the Board of Realtors, the Grange, Sierra Commons and the Nevada County Economic Resource Council.
There are two proposals for the selection of the Citizens Advisory Board. The first option is that it shall consist of two members of the general public from each supervisorial district who are residents of that district, to be elected at the same election is that district’s supervisor and seated effective July 1st of that year. Until such time as all members are seated by election, each Supervisor will appoint 2 residents from his or her district as members of the Citizens Advisory Board.
Alternatively, in order to avoid the expense and complexity of conducting elections and having to select from among largely unknown members of the public for the Citizens Advisory Board, it could be structured like the Business Advisory Board, whereby significant citizens groups within the County would each assign a delegate to the Citizens Advisory Board. These groups might include the political parties, Hospice of Nevada County, League of Women Voters, etc ..
Proposed Charter Text:
The Bank of Nevada County shall be governed by the Nevada County Bank Commission, which will have the authority to define the focus of BNC loan programs and the responsibility to authorize all loans in excess of $250,000. The Bank Commission shall select and appoint the President and officers of the BNC and determine their salaries. The Board of Supervisors shall confirm those appointments and salaries.
The Nevada County Bank Commission will be comprised of the County Treasurer, the Nevada County CEO and one member of the Board of Supervisors. The first year of operation of the BNC, the member of the Board of Supervisors shall be the Supervisor of District 1, the second year the Supervisor of District 2, and so on until, after which the cycle repeats.
Alternative Text (1) for the Nevada County Bank Commission (5 members):
The Nevada County Bank Commission will be comprised of the County Treasurer, the County Assessor-Controller, one member of the Board of Supervisors and one delegate from each of the Advisory Boards. The first year of operation of the BNC, the member of the Board of Supervisors shall be the Supervisor of District 1, the second year the Supervisor of District 2, and so on until, after which the cycle repeats.
End of alternative text (1)
Alternative Text (2) for the Nevada County Bank Commission (3 members, County Executive Officer):
The Nevada County Bank Commission will be comprised of the County Treasurer, the County Executive Officer and one member of the Board of Supervisors. The first year of operation of the BNC, the member of the Board of Supervisors shall be the Supervisor of District 1, the second year the Supervisor of District 2, and so on, after which the cycle repeats.
End of alternative text (2)
Alternative Text (3) for the Nevada County Bank Commission (5 members, County Executive Officer):
The Nevada County Bank Commission will be comprised of the County Treasurer, the County Executive Officer, one member of the Board of Supervisors and one delegate from each of the Advisory Boards. The first year of operation of the BNC, the member of the Board of Supervisors shall be the Supervisor of District 1, the second year the Supervisor of District 2, and so on until, after which the cycle repeats.
End of alternative text (3)
In addition to the Nevada County Bank Commission, the officers of the BNC will be advised by two advisory boards, the Citizens Advisory Board and the Business Advisory Board. Both boards will meet monthly with the BNC officers and the Nevada County Bank Commission to review policies, procedures, decisions, activities, etc.. Both boards will have advisory capacity only.
The Business Advisory Board shall consist of one delegate from each of the Chambers of Commerce in the County, the Contractor’s Association, the Board of Realtors, the Grange, the Nevada County Farm Bureau, the Nevada County Agriculture Commissioner,and the Nevada County Economic Resource Council.
The Citizens Advisory Board shall consist of two members of the general public from each supervisorial district who are residents of that district, to be elected at the same election is that district’s supervisor and seated effective July 1st of that year. Until such time as all members are seated by election, each Supervisor will appoint 2 residents from his or her district as members of the Citizens Advisory Board.
Alternative Text for Citizens Advisory Board:
The Citizens Advisory Board shall consist of one delegate from each of selected organizations representing significant numbers of County residents and workers. The Board of Supervisors will establish a criteria for the selection of these groups.
Links to all Charter pages:
Nevada County Charter – Introduction
How to establish a Nevada County Charter
Preamble to the Nevada County Charter
Preamble to Charter section establishing a public bank for Nevada County
The mission of the public Bank of Nevada County
The governance of the public Bank of Nevada County
The Citizens Bill of Rights
Nevada County Officers & Governance
Use of Instant Runoff Voting and establishing campaign finance limits
“Buy Local” preference for Nevada County purchases & contracts section
PDF of the full Nevada County Charter
Click here to be taken to the Nevada County Charter online survey page.