A. Each authority shall be governed by a board consisting of representatives appointed by the governing bodies of participating localities. The ordinances, agreements, or resolutions creating the authority shall specify (i) the number of members of the board, (ii) the manner of appointment and the terms of office, (iii) voting rights and quorum requirements, and (iv) procedures for filling vacancies. The board shall adopt bylaws governing its procedures and the conduct of its business.
B. The board shall (i) adopt an annual operating and capital budget, (ii) establish policies governing the operation of the authority, (iii) appoint and supervise an executive director, (iv) ensure compliance with state and federal laws, (v) provide for an annual audit of the authority's accounts, and (vi) report annually to the governing bodies of the participating localities.