A. The board shall make provisions for an annual operating budget and an annual capital improvements budget. Copies of each budget, proposed or as finally adopted, shall be furnished to each local governing body in the area.
B. During each fiscal year the board shall propose an annual operating budget and an annual capital improvements budget for the ensuing fiscal year and hold a public hearing thereon. After such public hearing the board shall review its proposed budgets, and on or before the last day of the fiscal year, it shall adopt an annual operating budget and an annual capital improvements budget for the ensuing fiscal year.