Explanation
BACKGROUND
The City of Columbus maintains a cash balance in a revolving loan fund as part of the Community Development Block Grant program (CDBG). These funds are reported separately in an Economic Development Revolving Loan Fund (RLF) (fund 2249) and used for eligible projects. The City reports program income generated from revolving loan and program activities separately in the Integrated Disbursement and Information System as RL and PI respectively. RL funds must be converted to PI in IDIS in order to commit to CDBG activities.
Consequently, the Department of Finance and Management, Division of Grants Management intends to transfer the cash balance available in the RLF to the CDBG Fund for use in 2021 CDBG activities. This transfer is necessary to comply with the regulations set forth in 24 CFR 570.504 regarding the use of CDBG program income. This ordinance provides for the transfer of revolving loan cash assets from RLF fund 2249 to CDBG fund 2248 in order to comply with Federal laws, rules, and regulations.
EMERGENCY DESIGNATION
This ordinance is submitted as an emergency so as to allow these 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 transfers existing cash assets between City funds. ($2,453,033.06)
Title
To authorize and direct the City Auditor to appropriate and transfer $2,453,033.06 from the Economic Development Revolving Loan Fund (2249) to the Community Development Block Grant fund (2248); and to declare an emergency.
Body
WHEREAS, the Department of Finance and Management, Division of Grants Management, will convert the available cash assets in the RLF to CDBG program income in order to spend the funds on 2021 CDBG activities; and
WHEREAS, the regulations set forth in 24 CFR 570.504 define program income and the requirements regarding the use as CDBG funds; and
WHEREAS, it is necessary to appropriate and transfer $2,453,033.06 from the Economic Development Revolving Loan fund (2249) to the Community Development Block Grant fund (2248) in order to comply with federal regulation; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management in that it is immediately necessary to authorize and direct the City Auditor to appropriate and transfer accounts from RLF fund (2249) to CDBG Fund (2248) for the immediate preservation of the public, health, peace, property, safety and welfare; Now, Therefore;
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Finance and Management is required to transfer $2,453,033.06 in cash from one fund to another within the CDBG funds (2248 & 2249), Community Development Block Grant Fund and Economic Development Revolving Loan Fund, based on federal requirements of grants based accounting and according to the account coding attached to this ordinance.
SECTION 2. That the City Auditor is hereby authorized and directed to appropriate and transfer $2,453,033.06 from the Economic Development Revolving Loan Fund, fund 2249, to the Community Development Block Grant, fund 2248, as needed for compliance with Federal laws, rules, and regulations.
SECTION 3. That the City Auditor is authorized to make any accounting changes to revise the funding source for all actions authorized in this ordinance.
SECTION 4. 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.