Explanation
Background
This ordinance re-allocates funding responsibilities for certain city services among various city departments with the ultimate goal of retaining the proceeds of the kilowatt-hour tax in the General Fund, thus increasing revenues needed to support current operations.
As part of this plan, the Stormwater Utility Fund will begin paying the cost of street cleaning beginning in 2004. Street cleaning is an appropriate function for the Stormwater division, since street cleaning efforts protect water quality, and minimize the burden on the sewer system from surface debris.
This plan also recognizes that the Transportation Division, which is responsible for the maintenance of the city's streets, has a shared responsibility along with the Division of Electricity, for lighting the city's streets. Beginning in 2004, the Transportation Division will begin paying a portion of the operating costs of the street lighting program.
Pursuant to Ordinance No. 0872-01, the City Auditor has been authorized to transfer 100 percent of the kilowatt-hour distribution tax imposed by Ohio Revised Code Section 5727.81(A) upon the Division of Electricity for the distribution of electricity to end users within the boundaries of the municipal corporation from the General Fund to the Electricity Operating Fund. The proceeds of this tax have supported operations of the Electricity Division, including the payment of debt service upon bonds issued for street lighting purposes.
The aforementioned re-allocation of funding responsibilities will allow the proceeds of the kilowatt-hour tax to be retained in the General Fund, increasing revenues needed to support current operations.
This ordinance is submitted as an emergency so as to allow the associated financial transactions to be posted in the city's accounting system as soon as possible. Up to date financial posting promotes accurate accounting and financial management.
Fiscal Impact
This ordinance increases appropriation authority in the Stormwater Utility Fund and the Street Construction Maintenance and Repair Fund, allows retention of the proceeds of the kilowatt hour tax in the General Fund in 2004, and authorizes the City Auditor, upon consultation with the Finance Director, to pay up to $700,000 in voted electricity debt service from Special Income Tax Fund in 2004.
Title
To increase the appropriation in the Stormwater Utility Fund by $2,900,000, to increase the appropriation in the Street Construction Maintenance and Repair Fund by $2,900,000, to repeal Section 2 of Ordinance No. 0872-01 as of January 1, 2004, to authorize and direct the City Auditor, in consultation with the Finance Director, to pay up to $700,000 in voted electricity debt service from Special Income Tax Fund in 2004, and to declare an emergency ($6,500,000).
Body
WHEREAS, there is a need to increase revenues to the General Fund of the city in order to support current operations; and
WHEREAS, a re-allocation of funding responsibilities for certain city services among various city departments will allow a retention of the proceeds of the kilowatt-hour tax in the General Fund, increasing revenues needed to support current operations; and
WHEREAS, it is appropriate that the Stormwater Utility Fund pay the cost of street cleaning, in recognition that proper cleaning of city streets is an adjunct function of proper stormwater management, in that street cleaning protects water quality and minimizes the burden on the sewer system from surface debris; and
WHEREAS, it is appropriate that the Transportation Division, which is responsible for the maintenance of the city's streets, share in the cost of street lighting; and;
WHEREAS, by state law the proceeds of the kilowatt-hour distribution tax imposed upon a municipal electric utility for electricity distribution to end users within the boundaries of a municipal corporation may be retained in the city's general fund; and
WHEREAS, since 2001 these tax proceeds have instead been transferred to the Electricity Division Operating Fund in support of that division's operating expenses, including payments of debt service associated with street lighting; and
WHEREAS, aforementioned re-allocation of funding responsibilities will allow the proceeds of the kilowatt-hour tax to be retained in the General Fund, increasing revenues needed to support current operations; and
WHEREAS, an emergency exists in the usual daily operation of the City in that it is immediately necessary to increase appropriations in the Stormwater Utility Fund and the Street Construction, Maintenance and Repair Fund to support changes in funding responsibilities, to repeal Section 2 of Ordinance No. 0872-01 and to authorize a portion of electricity debt service to be paid from the Special Income Tax Fund in 2004, 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 Stormwater Utility Fund, Fund 675, Department of Public Utilities, Department 60, Stormwater Division, Division 60-15, OCA 675001, Object Level One 03, Object Level Three 3000 be increased by $2,900,000.
SECTION 2. That appropriations currently authorized in the Street Construction, Maintenance and Repair Fund, Fund 265, Department of Public Service, Department 59, Transportation Division, Division 59-09, OCA 599218, Object Level One 03, Object Level Three 3314 be increased by $2,900,000.
SECTION 3. That Section 2 of Ordinance No. 0872-01 is hereby repealed effective January 1, 2004, and the City Auditor is authorized and directed to make any necessary fund transfers in fiscal year 2004 to reflect the repeal.
SECTION 4. That the City Auditor, in consultation with the Finance Director, is authorized and directed to pay up to $700,000 in voted electricity debt service for 2004 from the Special Income Tax Fund, Fund 430, including making any fund transfers necessary to accomplish this.
SECTION 5. That all funds needed to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 6. 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.