Explanation
June 11, 2003
TO THE HONORABLE MEMBERS OF CITY COUNCIL:
BACKGROUND: The Franklin County Municipal Court receives earnings credits on the funds left on deposit with National City Bank. These earnings are used to offset bank fees. The rate is based on market interest rates and has followed the steep decline in those rates from a level of 5.83% in December, 2000 to the current rate of 1.12%. This decline has created a bank fee liability of $103,065.76 from December, 2000 through April, 2003. In working with the City Auditor surplus funds have been identified in the Court Clerk Collection Fee Special Revenue Fund. Not withstanding the intended use of this fund it is agreed that using these surplus funds to meet contractual obligations with the bank will avoid further burden on the City General Fund. The past due, current and future totals through the end of the current contract year owed to the bank are estimated to be $190,000.00. Emergency declaration is requested in order to start paying the past due obligations in the soonest time possible.
FISCAL IMPACT: Coupled with $150,000.00 already available in the Court Clerk 2003 appropriations an additional $40,000.00 would need to be appropriated. The expenditure of $190,000.00 is contingent on passage of the appropriation portion of this Ordinance.
Title
To authorize a supplemental appropriation of $40,000.00 from the unappropriated balance of the Municipal Court Clerk Collection Fee Special Revenue Fund, to authorize the Director of the Department of Finance on behalf of the Clerk to issue a blanket purchase order to National City Bank for the purpose of paying bank fees, to authorize the expenditure of $190,000.00 from the Collection Fee Fund and to declare an emergency. ($40,000.00) ($190,000.00)
Body
Whereas, the Municipal Courts' earnings credits on the funds left on deposit with National City Bank have declined due to the market interest rate descent from 5.83% in December, 2000 to the current rate of 1.12%, and
Whereas, these earnings credits are used to offset bank and credit card fees and had been effective for several years prior to December, 2000 in defraying all fees, and
Whereas, the decline in earnings credits has contributed to a negative fee position through the end of April, 2003, and
Whereas, due to the continuing depressed state of the national and local economy it is reasonable to assume that the negative fee position will also continue, at least to the June 1, 2004 anniversary date of the current bank contract, and
Whereas, the City Auditor has assisted the Court Clerk to identify surplus funds that could be used for the stated contractual obligations, and
Whereas, passage of this Ordinance will enable the Court Clerk to pay the aforementioned bank fees using monies from the Court Clerk Collection Fee Fund, and now, therefore
Whereas, an emergency exists in the usual daily operation of the Court in that it is immediately necessary to issue said blanket purchase order for the preservation of the public health, peace, safety and welfare; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That from the unappropriated cash balance in the Municipal Court Clerk Collection Fee Special Revenue Fund and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the period ending June 1, 2004, the sum of forty thousand dollars (40,000.00) is hereby appropriated to the Municipal Court Clerk year 2003 appropriations, Fund 295, SubFund 02, Organization One 2601, OCA Code 261295, Object Level One 03, Object Level Three 3336.
SECTION 2. That the Director of Finance be and is hereby authorized on behalf of the Municipal Court Clerk to issue a blanket purchase order to National City Bank for $190,000.00 to pay bank fees through June 1, 2004.
SECTION 3. That the expenditure of $190,000.00 or so much thereof as may be needed to pay the cost thereof is hereby authorized to be paid from the Municipal Court Clerk Collection Fee Special Revenue Fund, Fund 295, SubFund 02, Organization One 2601, OCA Code 261295, Object Level One 03, Object Level Three 3336.
SECTION 3. 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 affect 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.