AExplanation
BACKGROUND
This legislation authorizes the Director of the Department of Development to enter into a Grant Agreement with the Alcohol, Drug and Mental Health Board of Franklin County (ADAMH), in an amount not to exceed $4,500,000.00, in support of the Mental Health and Addiction Crisis Care Center project.
Ranked 38th in the nation, Ohio is among the states where adults have a higher prevalence of mental illness and lower rates of access to care, according to Mental Health America, a nonprofit that focuses on mental illness and mental health. Officials estimate that 21% of Franklin County's 1.3 million residents have a mental health emergency annually. About 10% abuse or are dependent on drugs or alcohol. On average in Franklin County, there are 30,000 mental health episodes each year requiring treatment, 21,800 of which include a visit to a hospital emergency room.
There is a demonstrable need and demand for a new center dedicated to mental health crisis and addiction treatment. The Crisis Care Center is a $60 million project that will include an observation unit, short-term inpatient unit, and a walk-in clinic. Upon completion, it will serve as the primary location for first responders to take patients in need of addiction or psychiatric care. The facility will help destigmatize mental illness, lessen the load on emergency rooms and fill a hole in the community's crisis care continuum.
Emergency action is requested in order to provide ADAMH with the resources necessary to continue and complete construction on the Crisis Care Center without delay.
FISCAL IMPACTS
Funding in the amount of $4,500,000.00 is available through the Department of Development’s 2023 Capital Improvement Budget within the Northland and Other Acquisitions Bond Fund 7735. It is necessary to certify the requisite funds in the amount of $1,000,000.00 against the Special Income Tax Fund. The funding will need to be authorized for expenditure from Fund 7735.
CONTRACT COMPLIANCE: The vendor number is 006183 (Treasurer Franklin County) and contract compliance is not required of a governmental entity.
Title
To authorize the City Auditor to appropriate and transfer funds from the Special Income Tax Fund to the Northland and Other Acquisitions Bond Fund; to authorize the Director of the Department of Development to enter into a Grant Agreement with the Alcohol, Drug and Mental Health Board of Franklin County (ADAMH), in an amount not to exceed $4,500,000.00, in support of the Mental Health and Addiction Crisis Care Center project; and to authorize the expenditure of $4,500,000.00 from the Northland and Other Acquisitions Bond Fund; and to declare an emergency. ($4,500,000.00)
Body
WHEREAS, Ohio is among the states where adults have a higher prevalence of mental illness and lower rates of access to care; and
WHEREAS, on average in Franklin County, there are 30,000 mental health episodes each year requiring treatment, 21,800 of which include a visit to a hospital emergency room; and
WHEREAS, ADAMH’s Crisis Care Center is a $60 million project that will include an observation unit, short-term inpatient unit, and a walk-in clinic; and
WHEREAS, upon completion, it will serve as the primary location for first responders to take patients in need of addiction or psychiatric care; and
WHEREAS, this ordinance will allow for the establishment of $4,500,000.00 from the City’s 2023 Capital Improvement Budget through a bond agreement of which $1,000,000.00 is funded temporarily from the Special Income Tax Fund until Bonds are issued; and
WHEREAS, the City’s obligation to provide financial assistance as set forth herein is contingent upon the subsequent adoption of appropriate legislation by Columbus City Council authorizing such assistance; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund to fund this project; and
WHEREAS, the City will reimburse the Special Income Tax Fund; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $1,000,000.00; and
WHEREAS, the City anticipates incurring 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, the City's agreement to provide financial assistance as set forth herein is contingent upon authorization pursuant to subsequent passage of appropriate legislation by Columbus City Council;
WHEREAS, an emergency exists in the usual daily business of the city in that it is immediately necessary to authorize a grant agreement with the ADAMH Board of Franklin County in order to continue and complete construction on the Crisis Care Center without delay; 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, 2023, the sum of $1,000,000.00 is appropriated in Fund 4430 (Special Income Tax), Dept-Div 2201 (City Auditor) in Object Class 10 (Transfer Out Operating) and in Fund 7735 (Northland and Other Acquisitions Bond Fund), Dept-Div 44-01 (Administration), Project P782017-100000 (ADAMH Crisis Center and Addiction Stabilization), in Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 2. That the transfer of $1,000,000.00, or so much thereof as may be needed, is hereby authorized from Fund 4430 (Special Income Tax Fund), Dept-Div 2201 (City Auditor) to Fund 7735 (Northland and Other Acquisitions Bond Fund), Dept-Div 44-01 (Administration) per the account codes in the attachment to this ordinance.
SECTION 3. That the Director of the Department of Development be and is hereby authorized to enter into a grant agreement for up to $4,500,000.00 on behalf of the City with the Alcohol, Drug and Mental Health Board of Franklin County (ADAMH) in support of the Mental Health and Addiction Crisis Care Center project.
SECTION 4. That the expenditure of $4,500,000.00 to the Alcohol, Drug and Mental Health Board of Franklin County (ADAMH) or so much thereof as may be needed, is hereby authorized in Fund 7735 (Northland and Other Acquisitions Bond Fund), Dept-Div 44-01 (Administration), in object class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 5. That upon obtaining other funds for this project for the Department of Development, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 3.
SECTION 6. That the City intends that this ordinance constitute an “official intent” for purposes of Section 1.150-2(e) 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 $1,000,000.00 (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 7. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 8. 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 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.