Explanation
1. BACKGROUND:
A. Fund Accounting Changes:
Since 2002, the Departments of Development and Public Service have utilized the Development Services Special Revenue Fund No. 240, to account for revenues and expenses associated with both private development and public improvement plan review; construction contract administration and inspection services. The leadership of both departments are requesting that the accounting for their respective activities be separated into different funds in order to hold their respective agencies more accountable for the management of these services. To facilitate this separation, this legislation will authorize the City Auditor to establish the accounting process for these activities as follows:
1. Development Services Special Revenue Fund No. 240: This fund shall account for all private building services including plan review and permit activities administered by the Department of Development.
2. Public Improvement Inspection Internal Service Fund No. 518: This fund shall account for all public improvement plan review, inspection and administration activities managed by the Department of Public Service. The services rendered by the activities of this fund will be billed to the benefiting operating and capital funds.
3. Private Inspection Special Revenue Fund No. 241: This fund shall account for all private utility and right-of-way construction plan review, inspection and administration activities managed by the Department of Public Service. The services rendered by the activities of this fund will be billed to the private vendor deposits within Private Inspection Deposit Fund No. 318.
B. Temporary Fund Transfer Authorization:
Due to the seasonal nature of private development and public improvement construction work, the above agencies and associated funds have historically incurred periods of operating cash deficits during the winter months. The severity of the winter greatly impacts the ability of contractors to perform work. During these periods, and in accordance with Ordinance No. 1670-2006, the City Auditor has been authorized to transfer funds from the Economic Stabilization Fund. These transfers are considered a temporary measure to cover these deficits and are anticipated to be repaid within the fiscal year.
The leadership of both departments acknowledge the recent reductions in the Economic Stabilization Fund now prevents the use of this fund for temporary, "over-draft" protection for the three funds listed within Section 1.A. above.
2. FISCAL IMPACT:
The purpose of this legislation is to provide temporary cash flow assistance to the above listed funds during the winter months when construction services are suspended due to severe weather. Use of the Street Construction, Maintenance and Repair Fund is appropriate and necessary to ensure that the plan review and inspection services continue uninterrupted. The leadership of the Departments of Public Service and Development understand that this is a temporary measure, and that all funds are to be repaid at the earliest practicable date.
3. EMERGENCY DESIGNATION:
The Department of Public Service is requesting that this ordinance be considered an emergency measure in order to ensure that any resulting accounting transactions are posted immediately.
Title
To authorize the City Auditor to establish the Public Improvement Inspection Internal Service Fund and the Private Inspection Special Revenue Fund; and to authorize City Auditor to execute temporary fund transfers from the Street Construction, Maintenance and Repair Fund to the Development Services Special Revenue Fund; the Public Improvement Inspection Internal Services Fund; and the Private Inspection Special Revenue Fund, for the Department of Public Service and the Department of Development; and to declare an emergency.
Body
WHEREAS, the cost of all services rendered by the Building Services Division of the Department of Development and certain services within the Department of Public Service are to be made self-sustaining through the use of the Development Services Special Revenue Fund and the Private Inspection Special Revenue Fund, and
WHEREAS, these funds are to be supported by the fees collected by the Building Services Division for services associated with the development process, and by the collection of revenue by the Department of Public Service's Division of Design and Construction for construction inspection and administration services; and
WHEREAS, the leadership of both departments have requested that the accounting for their respective activities be separated in order to hold their respective agencies more accountable for the management of these services; and
WHEREAS, it has been determined to be in the best interest of the City and the Departments of Public Service and Development, in that the Department of Public Service's Street Construction, Maintenance and Repair Fund shall be used to facilitate temporary cash assistance to the Development Services Special Revenue Fund; the Public Improvement Inspection Fund; and the Private Inspection Special Revenue Fund, and
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. The City Auditor is authorized to establish the Public Improvement Inspection Internal Service Fund No. 518 to account for the revenues and expenses associated with the plan review, inspection and construction administration activities administered by the Department of Public Service.
Section 2. The City Auditor is authorized to establish the Private Inspection Special Revenue Fund No. 241 to account for the revenues and expenses associated with the private utility and right-of-way construction plan review, inspection and administration activities managed by the Department of Public Service.
Section 3. The City Auditor, in his discretion, is authorized to make temporary transfers of cash from the Street Construction, Maintenance and Repair Fund No. 265; to the Development Services Special Revenue Fund No. 240; the Public Improvement Inspection Internal Service Fund 518; and the Private Inspection Special Revenue Fund No. 241; to allow payment of necessary operating expenses from the latter funds in the event of temporary cash shortages in those funds.
Section 4. That these transfers are only to be made to address short-term cash flow issues, and they shall be repaid to the Street Construction, Maintenance and Repair Fund No. 265, upon the City Auditor determining that sufficient funds for such payment exist within those funds authorized to receive temporary fund transfers within Section 3 herein.
Section 5. That repayment of such temporary transfers shall be a priority for those funds authorized to receive temporary fund transfers within Section 3 herein, and it is the intention of this provision that all temporary transfers be repaid at the earliest possible time.
Section 6. That all funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
Section 7. 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 adoption and approval by the Mayor, or ten days after adoption if the Mayor neither approves nor vetoes the same.