A board of directors shall govern the district corporation. Subject to paragraph (2) of this subsection, the board of a district corporation consists of five members appointed by the members of the district. Appointment procedures shall be provided in the local law establishing the district. From among its members, the board shall elect a chair and other officers. Three voting members of the board are a quorum. The board may act on a resolution only by the affirmative vote of at least three voting members. A member of the board: may not receive compensation as a member of the board; but shall be reimbursed for expenses incurred in performing the member’s duties. The board shall exercise its powers by resolution. The board shall file an annual report with the governing body of the county or municipal corporation that includes: a financial statement for the preceding year; a proposed operating budget for the current fiscal year; any proposed revisions to the business plan; and a narrative statement or chart showing the results of operations in comparison to stated goals and objectives.