The ICMA Executive Board met in Napa, California, June 2-5, 2016, and took these actions:

• Selected David Johnstone, director general, Candiac, Quebec, Canada as the 2016–2017 ICMA President-elect. Johnstone will be installed as ICMA President at the conclusion of the 2017 annual conference.  He has served in local government for 35 years in Canada. He was an ICMA Regional Vice President, 2011–14.
  
  Johnstone will become a member of the ICMA Executive Board along with the incoming vice presidents at the Celebration of Service session on Wednesday at the 2016 annual conference. At that time, Lee Feldman, city manager, Fort Lauderdale, Florida, will be inducted as the 103rd ICMA President.
  
  
• Adopted an FY 2017 budget (July 1, 2016 - June 30, 2017) with proposed revenues of $37,277,947, expenses of $36,527,947, and net contribution of $750,000. The FY 2017 budget is based on a continued philosophy of responding to changing factors in the environment, while positioning the organization for the future by investing in areas that will ensure the long-term strength of the association and making course corrections as needed.
  
  The FY 2017 budget continues to fund implementation of key strategic priorities adopted in FY 2016 with a broad impact on the association and its future. These include focusing on what is important to members; implementing recommendations from member task forces on leadership, on women in the profession and on strengthening inclusiveness; supporting the Strategic Planning Task Force as it concludes its work; and funding the remaining recruitment for the new executive director and helping to ensure a smooth transition.
  
  In FY 2016, ICMA is anticipated to return to profitability with a projected net contribution of approximately $800,000. During FY 2014 and FY 2015, ICMA underwent a transition experiencing sharp reductions in grants and contracts funding, while at the same time reviewing and revitalizing several business lines that were no longer sustainable in their current model. The changing environment necessitated an internal reorganization, which was implemented during that period, with the goal of rightsizing the organization, focusing on key priorities more effectively, and minimizing the impact of funding fluctuations on the rest of the organization. The ability to draw on reserves built during the previous years enabled the organization to make the necessary changes thoughtfully. Net assets balance at the end of FY 2013 was $6.3M, exceeding the target of $5.3M by approximately $1M. The net assets balance at the end of FY 2015 was approximately $5.8M.
  
  Success in obtaining new grants and contracts, particularly the award early in FY 2016 of a five-year, $47.8M USAID contract for work in the Philippines, Strengthening Urban Resilience for Growth with Equity (SURGE), was a major factor in the ability to achieve the projected net contribution for FY 2016. Among other contributing factors are steadily growing membership dues revenue, increased sponsorships from ICMA-RC, and stronger-than-anticipated revenues from publications and from the REIT dividend from the building. Net assets are expected to reach $6.6M at the end of FY 2016.
  
  If grants and contracts revenue assumptions hold true in FY 2016 and beyond, particularly with respect to the SURGE project, the net assets goal for FY 2018 will be revised from the previously established target of $6M to $7.75M. However, considering that most of the projected additions to reserves are expected to be generated from a single contract in excess of the normal, steady-state level of $13M–$15M, the risks and uncertainties related to the ability to reach this goal are high. In the event of an unanticipated loss of SURGE, the net assets balance will be lower, but not less than $6M.
  
  
• Debriefed on the fourth regional nominating committee process for the selection of nominees for ICMA Regional Vice Presidents. The board agreed that the Regional Nominating Committees again handled their interview and selection responsibilities well and selected a nominee for each region that appeared on the May 19, 2016, ballot which was canvassed June 24. The board asked that the nominations process guidelines include a clarification that the state rotations in regional agreements apply only to the vice presidents and not to the president.
  
  In addition, the board reviewed the recent composition of the board, assuming the election of the nominees who are unopposed. The board’s nominations and elections schedule states that “the board will review the diversity in the make up of the upcoming board at the June board meeting.  The results of this review will then be shared with state and affiliate organizations as well as with the membership.”  The upcoming board will have members from communities in all population ranges (from under 10,000 to over 100,000), three members from counties, one member from a council of governments, four women, one African-American, and three Hispanics. 
  
  The board reemphasized its commitment to fostering a new generation of innovative, positive, and principled leaders in local government management and the importance of greater local action to achieve a diverse and inclusive membership that reflects the composition of our communities. The board approved a statement that outlined recent efforts and progress on achieving this goal and noted that more needed to be done in partnership with the membership. They also encouraged members to consider being candidates for the board. To that end, the board will host a “What It Takes to Be an ICMA Executive Board Member” session at the 2016 annual conference. 

• Reviewed progress on membership recruitment and retention. As of April 30, ICMA is poised to exceed all of its membership targets. Revenues are projected to exceed the budget by $200,000. Since July 2015, 429 Full Members and 351 entry to mid-management affiliates have joined. Since ICMA launched the new flat rate ($200) dues for department head affiliate members with the July 2015 dues cycle, 210 department heads have joined. Staff are continuing to develop and implement state-by-state and country recruitment strategies to tailor recruitment efforts.
  
  Staff also reported on plans to publish member demographics online, to offer a free webinar to members, and to enhance ICMA’s member video strategy for FY2017. ICMA interviewed more than 30 members at the Seattle annual conference. The resulting video content is being used in a variety of ways to feature members, talk about the profession, and highlight the value of ICMA. This includes relaunching the member spotlight project, which is published most weeks in Leadership Matters as well as on icma.org.

• Selected Pittsburg, Pennsylvania, as the site for the 2024 ICMA Annual Conference and selected the Southeast region for the 2025 annual conference.
  
  
• Selected Ted Gaebler, San Rafael, California; Dan Kleman, Port St. Lucie, Florida; and Jan Perkins, Laguna Beach, California as Distinguished Service Award recipients. The awards will be formally presented at the 2016 annual conference. 
  
  
• Confirmed the schedule and process for conducting the board’s and executive director’s evaluation at the September 2016 board meeting.