Explanation
1. BACKGROUND
The Department of Public Service employs personnel that are engaged in traffic sign and signal installation, permanent pavement marking application, and roadway improvement design and construction. Project costs incurred by the operating fund are salaries, overhead, overtime, materials and other direct costs. These personnel and project expenses are budgeted within and paid from the division's operating fund, the Street Construction, Maintenance and Repair Fund. These costs can be capitalized. Doing so is consistent with earlier efforts by the Division to reimburse its operating fund when the operating fund incurred expenses more appropriate to capital improvement funding.
This ordinance authorizes and directs the City Auditor to transfer funds to properly align appropriations with projected expenditures and allow the Department of Public Service to operate without interruption.
This ordinance authorizes the expenditure of $2,300,313.00 or so much thereof as may be necessary for this purpose.
2. FISCAL IMPACT
Funding for this expenditure is available within the 2013 Streets and Highways G.O. Bond fund, No.704. The 2014 revenue estimate for the Street Construction, Maintenance and Repair Fund reflects and assumes this revenue. Capital Improvement Budget amendments and funds transfers are necessary to move monies and authority to the appropriate projects by borrowing money until the 2014 capital budget passes and subsequent bond sale proceeds are deposited.
3. EMERGENCY DESIGNATION
Emergency action is requested to allow the reimbursement of these operating expenses at the earliest possible time to provide adequate operating resources for the Street Construction, Maintenance and Repair Fund.
Title
To amend the 2013 Capital Improvements Budget; To authorize and direct the City Auditor to transfer cash and appropriation within the Streets & Highways Bond Fund; To authorize the Director of Public Service to expend $2,300,313.00 or so much thereof as may be necessary to reimburse the Street Construction, Maintenance and Repair Fund; and to declare an emergency. ($2,300,313.00)
Body
WHEREAS, the Department of Public Service employs personnel that are engaged in traffic sign and signal installation, permanent pavement marking activity, and roadway improvement design and construction activities and incurs various salary and material expenses within its operating fund associated with capital projects; and
WHEREAS, these costs can be capitalized; and
WHEREAS, the 2014 revenue estimate for the Street Construction, Maintenance and Repair Fund reflects and assumes this revenue; and
WHEREAS, it is necessary to amend the 2013 Capital Improvement Budget and transfer funds to the appropriate projects within the Streets and Highways G.O. Bonds Fund; and
WHEREAS, it is necessary to borrow money until the 2014 capital budget passes and subsequent bond sale proceeds are deposited; and
WHEREAS, it is necessary to authorize this expenditure in order to provide adequate operation resources; 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 Division of Planning and Operations and Division of Design and Construction in that this reimbursement should be authorized to provide reimbursement to the Street Construction Maintenance and Repair Fund at the earliest possible time and make this fund whole, 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 2013 Capital Improvement Budget authorized by Ordinance 0645-2013 be amended as follows to properly align budget authority with anticipated expenditures as follows:
Proj. No. | Proj. Name | Current | Change | Amended
530161-100013/Roadway Imp.-SCMRF Reimb. (voted 2008)/$888,983/+$100,313/$989,296 (cancellation)
530161-100013/Roadway Imp.-SCMRF Reimb. (voted 2008) $989,296 /+ $2,200,000.00/$3,189,296
440005-100000/UIRF - Urban Infrastructure Recovery (voted 2008) $3,785,857/-$2,200,000/ $1,585,857
SECTION 2. That the City Auditor be and is hereby authorized to transfer cash and appropriation within the Streets and Highways G.O. Bonds Fund, No. 704, as follows:
TRANSFER FROM:
Fund | Project | Project Name |OL1-3 |OCA |Amount
704 / 440005-100000/UIRF-Urban Infrastructure Recovery/06-6600/590050/ -$2,200,000.00
TRANSFER TO:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
704/530161-100013/Roadway Imp.-SCMRF Reimb./6600/746113/ $2,200,000.00
SECTION 3. That the Director of Public Service be and hereby is authorized to expend $2,300,313.00 or so much thereof as may be necessary from The Streets and Highway G.O. Bonds Fund, 704, to reimburse the Street Construction, Maintenance and Repair Fund for traffic sign and signal installation, permanent pavement marking, roadway improvement design and construction expenses, salaries, overhead, overtime, materials and other direct cost expenses incurred in connection with the capital improvements program as follows.
Division |Fund | Project | Project Name |OL1-3 |OCA |Amount
5912/704/530161-100013/Roadway Imp.-SCMRF Reimb.(voted 2008)/06-6621/746113/$2,300,313.00
Total: $2,300,313.00
SECTION 4. 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 $2,200,000.00 (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 5. 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 6. 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 7. 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 8. 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.