Explanation
Background: The City of Columbus has contracted to purchase property at 1111 East Broad Street. The building will be used for the offices of various City Departments, including Recreation and Parks and Technology. The building will also house non-city tenants. Lease payments from these non-city tenants will be used to offset the costs of maintaining the facility. Lease payments for 2007 are currently projected at $924,420 from the major tenant with additional amounts from two holdover tenants for portions of the year. It will be necessary to transfer funds from the Facilities Management Division to augment the rental income thereby assuring that all costs associated with the operation of the building are covered. Total expenses in 2007 are projected to be over $1.2 million. The purpose of this ordinance is to establish a special revenue fund entitled the "1111 East Broad Street Operations Fund" for the Facilities Management Division to deposit rental payments from the non-City occupants of the building. Any Facilities Management funds necessary for the operation of the facility will also be transferred into this fund. The ordinance further allows for temporary transfers and repayments, if necessary, from the Economic Stabilization Fund to cover costs associated with maintenance expenses until rental revenues are sufficient to cover these costs. It is the intent that all transfers from the Economic Stabilization Fund into the Operations Fund be repaid.
Fiscal Impact: The total projected 2007 income from rent is $924,420.00 plus unknown additional rent. The total projected expenses are over $1.2 million. The difference will be budgeted in the 2007 Facilities Management general fund budget for transfer into the 1111 East Broad Street Operations Fund.
Emergency action is requested so that lease payments may be deposited into the operations fund as soon as they are received, thereby minimizing the transfers from the Economic Stabilization Fund.
Title
To authorize the City Auditor to establish the "1111 East Broad Street Operations Fund," Fund 294, Subfund 001; to make temporary transfers and repayments, if necessary, from and to the Economic Stabilization Fund, Fund 11 and the 1111 East Broad Street Operations Fund, Fund 294, Subfund 001, in order to ensure the prompt payment of operating expenses within the facility; to direct the deposit of rent payments from non-city tenants in the building at 1111 East Broad Street into the 1111 East Broad Street Operations Fund, Fund 294, Subfund 001; and to declare an emergency.
Body
WHEREAS, the City of Columbus has purchased 1111 East Broad Street for City use and wishes to collect revenue from tenants in order to offset the operating costs of the building, and
WHEREAS, it is estimated that rental revenues will be more than $924,420 in 2007 and expenditures will be more than $1.2 million in 2007, and
WHEREAS, the difference will be transferred from the Facilities Management Division's General Fund operating budget into the 1111 East Broad Street Operation Fund, and
WHEREAS, it is necessary to create a special revenue fund titled the "1111 East Broad Street Operations Fund" in order to deposit rent payments from non-City tenants and transfers from the Facilities Management Division's General Fund operating budget, and
WHEREAS, it is necessary to establish a mechanism to ensure that adequate funds are available in the 1111 East Broad Street Operations Fund, and
WHEREAS, that mechanism will be temporary transfers and repayments, if necessary, from and to the Economic Stabilization Fund, Fund 11 and the 1111 East Broad Street Operations Fund, Fund 294, Subfund 001, and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus, in that it is immediately necessary to establish the 1111 East Broad Street Operations Fund so that rent payments can be deposited as soon as they are received thereby minimizing the transfers from the Special Income Tax Fund, now, therefore:
BE IT ORDNAINED BY THE CITY COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Auditor is hereby authorized and directed to establish a special revenue fund titled "1111 East Broad Street Operations Fund", Fund 294, Subfund 001, which is authorized to accept funds from rent payments from non-City tenants at 1111 East Broad Street as well as transfers from the Facilities Management General Fund operating budget, which funds will be expended for necessary operating costs for 1111 East Broad Street.
SECTION 2. The City Auditor in his discretion is authorized to make temporary transfers of cash from the Economic Stabilization Fund, Fund 11, in a total amount not to exceed $500,000, to the 1111 East Broad Street Operations Fund, Fund 294 Subfund 001, to allow payment of necessary operating expenses for 1111 East Broad Street. These transfers are only to be made to address operating costs not covered by rental revenues, and they shall be repaid to Fund 11 upon the City Auditor determining that sufficient moneys for such payment exist within Fund 294, Subfund 001. Repayment of such temporary transfers shall be a priority for Fund 294, Subfund 001, and it is the intention of this provision that all temporary transfers be repaid at the earliest possible time.
SECTION 3. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 4. The City Auditor is hereby directed and authorized to deposit all rent payments received from any non-City tenants at 1111 East Broad Street into the 1111 East Broad Street Operations Fund, Fund 294, Subfund 001.
SECTION 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared 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.