Explanation
The U.S. Department of Housing and Urban Development (HUD) requires grantees and their subrecipients to maintain Community Development Block Grant (CDBG) revolving loan funds in interest bearing accounts, and to remit said interest to the federal treasury no less frequently than annually. During 2003, the City's revolving loan fund earned $39,889.12 of interest. Included in this amount is $2,139.56 related to additional interest received from a check for $130,000 which was not presented for payment between December 9, 2002 through July 23, 2003. The calculation of CDBG interest earnings during this period did not take the uncashed check into account. This legislation will authorize the expenditure of monies from the revolving loan subfund for the transmittal of investment earnings to HUD.
This legislation is presented as an emergency to facilitate the timely remittance of monies to HUD.
FISCAL IMPACT: Investment earnings have been deposited into the CDBG revolving loan fund and are available for disbursement to HUD from said fund.
Title
To authorize the Director of the Department of Finance to expend $39,889.12 from the CDBG revolving loan fund for payment of investment earnings to the U.S. Department of Housing and Urban Development (HUD); and to declare an emergency. ($39,889.12)
Body
WHEREAS, federal regulations require Community Development Block Grant (CDBG) grantees and subrecipients to remit to the federal treasury all investment earnings paid on CDBG revolving loan accounts; and
WHEREAS, investment earnings have been deposited into the CDBG revolving loan subfund and are available for this expenditure; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance in that it is immediately necessary to expend the aforementioned funds, thereby preserving the public peace, health, 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 is hereby authorized to expend $39,889.12 from the Community Development Block Grant Fund, Fund No. 248, Subfund 002, Department 45-01, OCA 454017, Object Level One: 05, Object Level Three: 5544.
SECTION 2. 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.