Explanation
Background/Fiscal Impact:
This ordinance authorizes a transfer of up to $14 million from the Economic Stabilization Fund to the General Fund. The actual transfer amount will be determined by the City Auditor, in consultation with the Finance Director. The Economic Stabilization Fund was established to provide a source of funding for basic City services during times of economic recession or unexpected revenue loss. As a result of economic recession, projected 2004 revenues to the general fund place in jeopardy the ability of the City to fund basic services, such as police and fire protection, and it is therefore appropriate to use a portion of the Economic Stabilization Fund to assure the continuance of basic city services until such time as economic conditions improve.
This ordinance also authorizes a transfer of up to an additional $11 million in accordance with the terms of Ordinance No. 0071-2004. The 2004 general fund revenue estimate includes $11 million in SWACO revenue. The City and SWACO are presently working toward capturing a major portion of the debt owed to the City by SWACO, primarily past due payments from SWACO, through issuance of SWACO debt. While the precise amount of such recovery has not been determined, the recommended $11 million transfer would come either from a combination of existing 2003 SWACO payments and 2004 lease payment revenue or through a portion of the captured past due payments. If SWACO were to issue debt as part of the latter scenario, the entire payment to City would be deposited to the Economic Stabilization Fund, per Ordinance 0071-2004. Up to $11 million of that amount would subsequently be transferred to the general fund, the actual transfer amount to be determined by the City Auditor, in consultation with the Finance Director.
If SWACO does not issue debt as described above, the $11 million would come from a combination of existing 2003 SWACO payments and 2004 lease payment revenue. Under this scenario, the entire 2004 revenue shall be transferred from the Economic Stabilization Fund to the General Fund, with the remainder coming from the Special Income Tax Fund.
Title
To authorize the appropriation of up to $14,000,000 within the Economic Stabilization Fund, to authorize and direct the City Auditor, in consultation with the Finance Director, to transfer the appropriate portion of this amount to the general fund, and to authorize the City Auditor, in consultation with the Finance Director, to transfer up to an additional $11,000,000 in SWACO revenue from the Economic Stabilization Fund to the General Fund in conjunction with the terms of Ordinance No. 0071-2004.
Body
WHEREAS, the Economic Stabilization Fund was established to provide a source of funding for basic City services supported by the general fund during times of economic recession or unexpected revenue loss by the City; and
WHEREAS, as a result of economic recession, the revenues to the general fund place in jeopardy the ability of the City to fund basic services, such as police and fire protection; and,
WHEREAS, it is therefore appropriate to use a portion of the Economic Stabilization Fund to assure the continuance of basic city services until such time as economic conditions improve, at which time any funds so used will be restored to the Economic Stabilization Fund at an annual rate equal to at least one percent of general operating fund expenditures in 2004; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That from the unappropriated balance of the Economic Stabilization Fund, and from all revenues estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2004, $14,000,000 is hereby appropriated to the Department of Finance, Department 45, Object 10.
SECTION 2. That the City Auditor, in consultation with the Finance Director, be and is hereby authorized and directed to transfer up to $14,000,000 from the Economic Stabilization Fund, Fund 011, Object 10, Department of Finance, Department 45, to the unappropriated balance of the general fund.
SECTION 3. That the City Auditor, in consultation with the Finance Director, be and is hereby authorized and directed to transfer up to an additional $11,000,000 from the Economic Stabilization Fund, Fund 011, Object 10, Department of Finance, Department 45, to the unappropriated balance of the general fund in accordance with the terms of Ordinance No. 0071-2004.
SECTION 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.