Explanation
Background: This legislation authorizes the appropriation and transfer of $7,011,097 from the Special Income Tax Fund, to the Franklin County Convention Facilities Authority Fund. The appropriation and transfer of $7,011,097 from the Special Income Tax Fund provides the backing, as stipulated in the City's lease agreement with the Franklin County Convention Facilities Authority (CFA). The actual transfer of theses funds will only occur if the CFA is unable to meet its debt obligations as outlined in its lease with the City. The City provides fifty percent of this backing, while Franklin County is responsible for the other fifty percent. Since 1990, no such payments have been needed, nor are any anticipated.
This legislation also authorizes the appropriation of $7,502,676.26 from the Special Income Tax Fund for lease payments to the RiverSouth Authority. The RiverSouth Authority issued bonds in 2004 and 2005 to purchase and rehabilitate the former downtown Lazarus Department Store. The City entered into a Master Lease Agreement and a First Supplemental Lease Agreement with The RiverSouth Authority on June 21, 2004 (Ordinance No. 1009-2004). The City entered into a Second Supplemental Lease Agreement with RiverSouth on July 25, 2005 (Ordinance No. 1312-2005). These agreements call for the City to make lease payments to The RiverSouth Authority in annual amounts equal to the bond service charges.
Lastly, this ordinance establishes the funding arrangements necessary to allow for the payout of unused balances (ie. vacation, sick, compensatory time) to police officers and firefighters retiring as part of the Deferred Retirement Option Program (DROP) offered by the Ohio Police and Fire Pension Fund. The DROP is an optional benefit provided by the Ohio Police and Fire Pension Fund that provided eligible police officers and firefighters an economic incentive to delay retirement for three to eight years. 2011 marks the first year that some of the enrollees must retire under the rules of the program. It is anticipated that the majority of the 2011 retirements will be the result of the DROP. $1,421,253.82 was allocated in 2010 for DROP participants that separated from city service in the last quarter.
This ordinance appropriates and transfers $7,578,746.18 from the Special Income Tax Fund to the Safety Staffing Contingency Fund from which the termination pay for police officers and fire fighters that are participating in the DROP will be expensed. The estimated total obligation for the DROP is $9 million, with payments totaling $1,421,253.82 in 2010 and estimated payments of $7,578,746.18 occurring in 2011.
Emergency: This ordinance is submitted as an emergency so as to allow the financial transactions to be posted into the City's accounting system as soon as possible. Up to date financial posting promotes accurate accounting and financial management.
Fiscal Impact: These expenditures have been included and budgeted within the Special Income Tax Fund analysis. Funds are available in the Special Income Tax fund to transfer to the Safety Staffing Contingency Fund in an amount not to exceed $7,578,746.18 for 2011.
Title
To appropriate and authorize the City Auditor to transfer $7,011,097 from the Special Income Tax Fund to the Franklin County Convention Facilities Authority Fund, for the purpose of providing secondary funding in the event that Franklin County Convention Facilities Authority cannot meet its debt obligations, to appropriate and expend up to $7,502,676.26 within the Special Income Tax Fund for reimbursement to the RiverSouth Authority to make lease payments, to appropriate an amount not to exceed $7,578,746.18 in the Safety Staffing Contingency Fund for the purpose of expensing termination pay costs for police officers and fire fighters associated with the Deferred Retirement Option Program (DROP), to authorize the subsequent transfer of an amount up to $7,578,746.18 from the Special Income Tax Fund to the Safety Staffing Contingency Fund; and to declare an emergency ($22,092,519.44).
Body
WHEREAS, as stipulated in the City's lease agreement with the CFA, the City has agreed to provide a secondary revenue source to assure that these funds will be available; and
WHEREAS, the actual transfer of theses funds will only occur if the CFA is unable to meet its debt obligations as outlined in its lease with the City; and
WHEREAS, pursuant to Ordinance No. 1009-2004 adopted by City Council on June 21, 2004 the City entered into a Master Lease Agreement and a First Supplemental Lease Agreement with The RiverSouth Authority (RiverSouth); and
WHEREAS, pursuant to Ordinance No. 1312-2005 adopted by this Council on July 25, 2005 the City entered into a Second Supplemental Lease Agreement with The RiverSouth Authority; and
WHEREAS, these Lease Agreements call for the lease rental payments from the City to RiverSouth equal to the bond service charges on the following bonds issued by RiverSouth:
· RiverSouth Areas Redevelopment 2004 Bonds Series A
· RiverSouth Areas Redevelopment 2005 Bonds Series A; and
WHEREAS, the City established the Safety Staffing Contingency Fund to deal with police and fire retirements resulting from the Deferred Retirement Option Program (DROP) offered by the Ohio Police and Fire Pension Fund; and
WHEREAS, it is expected that a large number of retirements related to the DROP will continue into 2011, which is the first year in which safety personnel who entered the program at its inception will be required to retire; and
WHEREAS, the City paid $1,421,253.82 in the fourth quarter of 2010 and the total distribution of payouts in 2011 are unknown, the amount authorized under this ordinance shall be not greater than $7,578,746.18, bringing the total estimated obligation not to exceed $9,000,000; and
WHEREAS, the actual amount to be appropriated and expended will be determined by the City Auditor and such amount shall reflect the terminal leave and cost applicable to the officers and firefighters choosing to retire in 2011.
WHEREAS, funds are available in the City's special income tax fund to transfer to the Safety Staffing Contingency Fund for this purpose; and
WHEREAS, an emergency exists in the usual daily operation of the City in that it is immediately necessary to both appropriate funds within the Special Income Tax Fund and transfer said funds for the above-described purposes, and appropriate funds within Safety Staffing Contingency Fund, 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 in the Special Income Tax Fund, Fund 430, 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, the sum of $7,011,097 be and hereby is appropriated to the City Auditor, Department No. 22-01, Object Level One 10, Object Level Three 5502, OCA 902023.
SECTION 2. That the City Auditor is hereby authorized to transfer said funds in SECTION 1 to the Franklin County Convention Facilities Authority Fund, Fund 282, at such time as is deemed necessary by the City Auditor, and to expend said funds or so much thereof as may be necessary.
SECTION 3. That from the unappropriated monies in the Special Income Tax Fund, Fund 430, 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, the sum of $7,502,676.26 be and hereby is appropriated to the City Auditor, Department/Division No. 22-01, Object Level One 03, Object Level Three 3305, OCA 430022.
SECTION 4. That the City Auditor is hereby authorized to expend up to $7,502,676.26 or so much thereof as may be necessary from Fund 430, Department/Division No. 22-01, Object Level One 03, Object Level Three 3305 OCA 430022 for the purpose of making lease rental payments to the RiverSouth Authority.
SECTION 5. That from the unappropriated monies in the Special Income Tax Fund, Fund 430, 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, 2011, an amount not to exceed $7,578,746.18 be and hereby is appropriated to Department No. 30-01, Object Level One 10, Object Level Three 5501, OCA 901074.
SECTION 6. That the City Auditor be authorized to transfer funds from section 5 above, from the Special Income Tax Fund, Fund 430 to the Safety Staffing Contingency Fund, Fund 014 in an amount not to exceed $7,578,746.18 to cover such expenditures.
SECTION 7. That the City Auditor be authorized to appropriate and expend an amount not to exceed $7,578,746.18 from the Safety Staffing Contingency Fund, Fund 014, OL1 01, OCAs 300314 and 300414, at such time as is deemed necessary by the City Auditor, and to expend said funds or so much thereof as may be necessary.
SECTION 8. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 9. That the City Auditor is authorized to make any accounting changes to revise the fund source for any contract or contract modifications associated with the expenditure of the funds transferred under Section 2 and 4 above.
SECTION 10. That for the reason 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.