Explanation
BACKGROUND: This legislation authorizes the transfer of $700,000 within the General Government Grant Fund, Neighborhood Stabilization Program 1 (NSP1), authorizes the appropriation of $1,000,000 of NSP1 Program Income within the General Government Grant Fund and authorizes the expenditure of $4,680,528 from the General Government Grant Fund, NSP 1 grant. Funds are needed to obligate and expend for eligible projects and activities associated with the NSP1 Grant.
This second modification to the City's NSP1 budget results in a greater than 20% increase in one activity's original budget (Neighborhood Stabilization Fund). Therefore, since the City considers an increase greater than 20% a substantial change it is submitting to the U.S Department of Housing and Urban Development (HUD) a substantial amendment to the NSP1 plan. A public comment period was conducted per NSP1 guidelines for 15 calendar days.
This ordinance is submitted as an emergency so as to allow the financial transaction to be posted in the City's accounting system as soon as possible. These funding obligations must be made prior to the end of the grant's required obligation period of September 4, 2010 as mandated by the City's NSP1 Grant Agreement with the U.S. Department of Housing and Urban Development.
FISCAL IMPACT: This ordinance authorizes the transfer of $700,000 within the General Government Grant Fund, NSP1 Grant and the expenditure of $4,680,528. The City of Columbus receives program income from prior investments of NSP1 funds in various homeownership housing development projects. The $1,000,000 of program income must be expended in NSP1 eligible projects. In addition, Ordinance 0913-2010 authorized the transfer of $2,980,528. This legislation also authorizes the expenditure of those funds.
Title
To authorize and direct the transfer of $700,000.00 within the General Government Grant Fund, NSP1 Grant; to authorize an appropriation of $1,000,000.00 from the General Government Grant Fund from unappropriated NSP1 program income funds; to authorize the Director of the Department of Development to expend $4,680,528.00 from the General Government Grant Fund to provide funding for obligations and expenditures related to the NSP1 Grant; and to declare an emergency. ($4,680,528.00)
Body
WHEREAS, this legislation authorizes the transfer of $700,000 within the General Government Grant Fund, NSP1 Grant, and the appropriation of $1,000,000 of NSP1 Program Income within the General Government Grant Fund and authorizes the expenditure of $4,680,528 from the General Government Grant Fund, NSP1 Grant to provide funding for the Department of Development obligations and expenses relating to the NSP1 Grant; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to transfer, appropriate and expend said funds so expenditures can be made by the end of the grant period, 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 the City Auditor be and is hereby authorized and directed to transfer $700,000 within the General Government Grant Fund, Fund No.220, Grant Number 440500, as follows:
FROM:
Division / Object Level 1 / OCA Code / Amount
44-01 / 03 / 440502 / $455,069.52
44-01 / 06 / 440502 / $244,930.48
$700,000.00
TO:
Division / Object Level 1 / Object Level 3 / OCA Code / Amount
44-10 / 05 / 5528 / 440511 / $700,000.00
Section 2. That the sum of $1,000,000 is hereby appropriated from the unappropriated balance of the General Government Grant Fund, Fund 220, Grant 440500 and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2010 to the Department of Development, Division 44-10, Object Level One 05, Object Level Three 5528, OCA Code 440506.
Section 3. That the monies appropriated in the foregoing Section 2 shall be paid upon the order of the Director of the Department of Development and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
Section 4. That the Director of the Department of Development is hereby authorized to expend $4,680,528 within the General Government Grant Fund for eligible projects and activities associated with the Neighborhood Stabilization Program 1 (NSP1) Grant.
Section 5. That for the purpose as stated in Section 4, the expenditure of $4,680,528 or so much thereof as may be necessary, is hereby authorized from the Department of Development, Division 44-10, Fund 220, Grant 440500, Object Level One 05, Object Level Three 5528 as follows:
OCA Code / Amount
440506 / $3,730,528
440510 / $ 250,000
440511 / $ 700,000
Total: $4,680,528
Section 6. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is 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.