Explanation
BACKGROUND AND FISCAL IMPACT:
This ordinance decreases general fund appropriations for fiscal year 2009 by $4,500,000 to partially address the City Auditor's reduction of the 2009 estimate of available resources into the general operating fund of $16,000,000. This ordinance reduces appropriations within general fund divisions as follows: personnel savings, including hiring controls ($510,000), reducing the budget for shift differential in the Division of Fire ($200,000), reducing agency fleet budgets due to lower billings resulting largely from savings in the cost of fuel ($800,600), reducing the citywide general fund technology budget due to lower billings resulting largely from hiring and expenditure controls ($976,000), reducing the budget for the jail contract due to lower than projected billings for the housing of prisoners ($1,000,000), reducing the budget for custodial services and natural gas ($545,000), reducing the budget for vehicle replacement ($300,000), a reduction due to unneeded funds for the severance payout ($156,000) and other miscellaneous savings ($12,400)
This ordinance also authorizes a transfer of up to $45 million from the economic stabilization fund to the general operating fund. Of this sum, $28.5 million was assumed to be needed to support general fund appropriations when the budget was enacted, and $11.5 million additional is now needed as a result of the City Auditor's $16 million reduction in his estimate of general operating fund resources in 2009. Finally, the ability to transfer an additional $5 million is authorized in this ordinance in case the revenue situation in the general fund deteriorates further in 2009. The actual transfer amount will be determined by the City Auditor, in consultation with the Finance and Management 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 the national economic recession, projected 2009 general operating fund revenues are insufficient to support general fund operations. 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.
Finally, this ordinance transfers $720,130 from the general government grant fund to the economic stabilization fund. The Federal Emergency Management Agency (FEMA) has provided $720,130 in reimbursement funds for expenditures made out of the general operating fund in response to the September, 2008 wind storm, primarily for the cost of debris removal and emergency operations. Ohio Auditor of State Bulletin 98-013 requires that FEMA funds initially be placed into a special FEMA fund but goes on to allow those funds to be transferred from the FEMA fund into funds that made the original payments for completed work. Since these funds represent reimbursement for general fund expenditures, it is appropriate to deposit them to the economic stabilization fund.
Title
To decrease appropriations in the general operating fund of the City of Columbus for fiscal year 2009 by $4,500,000, to decrease appropriations in the fleet management fund by $800,600, to decrease appropriations in the technology internal service fund by $976,000, to reduce existing encumbrances for fleet maintenance expenses and technology expenses within certain divisions, to reduce an existing encumbrance for FICA expenses within the Department of Human Resources, to reduce an existing encumbrance for natural gas within the Facilities Management Division, to reduce an existing encumbrance within the Division of Fleet Management for vehicle purchases, to appropriate and transfer $720,130 from the general government grant fund to the economic stabilization fund, to authorize the appropriation of up to $45,000,000 within the economic stabilization fund, to authorize and direct the City Auditor, in consultation with the Finance and Management Director, to transfer the appropriate portion of that amount to the general operating fund, and to declare an emergency ($50,220,130)
Body
WHEREAS, the City faces continuing challenges in the general operating fund's financial position; and
WHEREAS, the City Auditor has reduced the estimate of available resources into the general operating fund by an additional $16,000,000; and
WHEREAS, a reduction in general operating fund appropriation in the amount of $4,500,000 is necessary to partially address the lowered revenue projection; and
WHEREAS, it is appropriate to transfer $720,130 from the general government grant fund to the economic stabilization fund for Federal Emergency Management Agency (FEMA) funds received for expenditures made out of the general operating fund in response to the September, 2008 wind storm; and
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 the national economic recession, projected 2009 revenues are insufficient to support general fund operations; 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, to the extent necessary to achieve the balance required by the City's Financial Policy B(5), at an annual rate equal to at least one percent of general operating fund expenditures during the preceding year; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary undertake the aforementioned actions, thereby preserving the public health, peace, property, safety and welfare; Now, Therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS
SECTION 1. That appropriations currently authorized in the general operating fund, fund 010, in the following departments/ divisions are hereby decreased by the following amounts:
See Attachment: 2009 approp reduction.xls
SECTION 2. That appropriations currently authorized in the Department of Finance and Management, Division of Fleet Management, Division 45-05, fleet management fund, Fund 513, OCA 451347 are hereby decreased by the following amounts:
OL1 02 OL3 2280 $464,000
OL1 02 OL3 2286 $336,600
SECTION 3. That the City Auditor is hereby authorized and directed to unencumber a total of $800,600 in fleet maintenance encumbering documents as follows:
Doc. No. OL3 OCA Amount
EA007401/009 3380 301580 $225,000
EA007528/001 3380 446930 80,000
EA007401/027 3380 591602 153,000
EA007401/028 3380 591834 153,000
EA007401/029 3380 592642 153,000
EA007401/036 3380 591013 36,600
SECTION 4. That appropriations currently authorized in the Department of Technology internal service fund, fund 514 are hereby decreased by the following amounts:
See Attachment: ISD approp reduction.xls
SECTION 5. That the City Auditor is hereby authorized and directed to unencumber a total of $976,000 in technology encumbering documents as follows:
See Attachment: ISD encumbrances.xls
SECTION 6. That the City Auditor is hereby authorized and directed to unencumber AC029664 within the Department of Human Resources, general fund, fund 010, OCA 460188 in the amount of $156,797.36.
SECTION 7. That the City Auditor is hereby authorized and directed to unencumber a portion of EA007404/003 within the Department of Finance and Management, Division of Facilities Management, general fund, fund 010, OCA 450043 in the amount of $300,000.
SECTION 8. That the City Auditor is hereby authorized and directed to unencumber a portion of AC029576 within the Department of Finance and Management, Division of Fleet Management, general fund, fund 010, OCA 451201 in the amount of $300,000.
SECTION 9. To appropriate $720,130 within the general government grant fund, fund No. 220, Grant No. 459087, Department 45, OCA 459087, OL3 5501.
SECTION 10. To transfer $720,130 from the general government grant fund, fund No. 220, Grant No. 459087, Department 45, OCA 459087, OL3 5501 to the economic stabilization fund, Fund 012, Dept 45, OCA 102582, OL3 0886.
SECTION 11. 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, 2009, $45,000,000 is hereby appropriated to the Department of Finance and Management, Division of Financial Management, Division 45-01, Object 10.
SECTION 12. That the City Auditor, in consultation with the Finance and Management Director, be and is hereby authorized and directed to transfer up to $45,000,000 from the economic stabilization fund, fund 012, Object 10, Department of Finance and Management, Division of Financial Management, Division 45-01, to the unappropriated balance of the general fund.
SECTION 13. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.