Explanation
Background: This legislation authorizes the expenditure of $3,500,000 to pay the Board of Commissioners for Franklin County the first installment of the purchase price for the purchase of 410 South High Street, Columbus Ohio (Franklin County Parcel Numbers 010-066874 and 010-066679). The purchase of this property was authorized previously by Council Ordinance 1541-2021 for the future construction of a new Municipal Court facility to house operations of the Court and other offices associated with the Court. The purchase contract was recently amended to extend the date for payment of the first installment of the purchase price not later than May 1, 2022.
Fiscal Impact: This ordinance authorizes an expenditure of $3,500,000.00 and a certification of funds in the amount of $3,500,000.00 against the Special Income Tax Fund until bonds are sold.
Emergency action is requested to allow for the immediate processing of the payment to meet the requirements of the amended purchase contract.
Title
To authorize the City Auditor to appropriate and transfer funds from the Special Income Tax Fund to the Construction Management Taxable Bonds fund; to authorize the expenditure of $3,500,000.00, from the Construction Management Taxable Bonds fund; and to declare an emergency. ($3,500,000.00)
Body
WHEREAS, the Director of the Department of Finance and Management entered into a real estate purchase contract with Franklin County Board of Commissioners to purchase property as authorized by Ordinance 1541-2021; and
WHEREAS, the Director of the Department of Finance and Management, per the terms of the contract is required to pay the first installment of the purchase price to the Franklin County Board of Commissioners not later than May 1, 2022; and
WHEREAS, a transfer of $3,500,000.00 from the Special Income Tax Fund to Construction Management Taxable Bonds fund is necessary to fund this project; and
WHEREAS, the City will sell notes or bonds to fund this project and will then reimburse the Special Income Tax fund accordingly; and
WHEREAS, this transfer should be considered a temporary funding method; and
WHEREAS, the aggregate principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $3,500,000.00; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the ”Treasury Regulations”) promulgated pursuant to the Internal Revenue Code of 1986 (as amended) with respect to the project described in this ordinance (“the Project”); 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 the payment of the first installment of the purchase price at the earliest date possible, to meet the terms of the purchase contract 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 from the unappropriated monies 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 ended December 31, 2022, the sum of $3,500,000.00 is appropriated in Fund 4430 (Special Income Tax), Department 2201 (City Auditor) in Object Class 10 (Transfer Out Operating) and in Fund 7732 (Construction Management Taxable Bonds Fund), Dept. 45, Division 4550, Project P570101-100001 (Municipal Court), in Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 2. That the transfer of $3,500,000.00 or so much thereof as may be needed, is hereby authorized from Fund 4430 (Special Income Tax), Dept. 2201 (City Auditor) to Fund 7732 (Construction Management Taxable Bonds Fund), Dept. 45, Division 4550 per the account codes in the attachment to this ordinance.
SECTION 3. That the expenditure of $3,500,000.00 or so much thereof as may be needed, is hereby authorized in Fund 7732 (Construction Management Taxable Bonds), Project 570101-100001, Dept. 45, Division 4550 in object class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 4. That upon obtaining other funds for this project, the City Auditor is hereby authorized and directed to repay the Special Income Tax fund the amount transferred under Section 2.
SECTION 5. That the City intends that the ordinance constitute an “official intent” for purposes of Section 1.150-2(d) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $3,500,000.00 (the “Obligations”).
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is “placed in service” within the meaning of Treasury Regulations Section 1.150-2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 6. Funds are hereby deemed appropriated and expenditures and transfer authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 7. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 8. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 9. 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 approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.