Explanation
BACKGROUND: The purpose of this ordinance is to return of $185,310.73 to the U.S. Department of Housing and Urban Development (HUD) for the Community Development Block Grant (CDBG), Home Investment Partnerships (HOME) and Neighborhood Stabilization Program (NSP).
The first portion of returned CDBG funds totals $57,578.03 for the repayment of funds drawn on prior year activities for the Department of Development, Division of Code Enforcement. CDBG funds were spent on property maintenance contracts for abandoned properties around the City. The cost of the maintenance is assessed to the property and when the property is sold, the assessment is paid to the City through the real estate transaction. The amount of $57,578.03 represents the assessment paid to the City for CDBG eligible properties but is ineligible as program income and must be returned the HUD.
The City has received a refund from the State for overpayment of Bureau of Worker’s Compensation Insurance paid in prior years. The City Auditor has determined the portion overpaid for each grant managed by City administration. The total BWC rebates for the HUD grants is $127,732.70 that must be returned to HUD. ($14,866.40 HOME fund 2201) ($112,845.72 CDBG fund 2248) ($20.58 NSP fund 2220)
EMERGENCY: It is necessary to declare an emergency to immediately return the funds as required by HUD rules and regulations; to properly account for the returned funds; and to make the funds available for future use.
FISCAL IMPACT: $57,578.03 in property assessments was deposited as program income for CDBG activities and $127,732.70 has been refunded for BWC overpayment and was deposited as program income. Funds in the amount of $185,310.73 will be returned to HUD and will increase the respective grant lines of credit as funds available to the City for future use.
Title
To authorize the appropriation of $170,423.75 within the CDBG Fund (2248), $14,866.40 within the HOME Fund (2201), and $20.58 within the General Government Grants Fund (2220); to authorize the Director of Finance to return funds to the U.S. Department of Housing and Urban Development from which the original CDBG, HOME, and NSP dollars were drawn; to authorize the expenditure of $170,423.75 in CDBG Funds, $14,866.40 in HOME Funds, and $20.58 in General Government Grants Funds; and to declare an emergency. ($185,310.73)
Body
WHEREAS, the Department of Finance and Management is required to return funds to the U. S. Department of Housing and Urban Development (HUD), pursuant to HUD rules and regulations, which were originally drawn from the City’s line of credit accounts with HUD; and
WHEREAS, upon return of the funds to HUD, the funds will be made available to the City of Columbus in its CDBG, HOME, and NSP line of credit accounts for use on future projects; and
WHEREAS, it is necessary to authorize the appropriation of $170,423.75 within the CDBG Fund (2248), $14,866.40 within the HOME Fund (2201), and $20.58 within the General Government Grants Fund (2220); and
WHEREAS, it is necessary to authorize the Director of the Department of Finance and Management to return $185,310.73 to HUD; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management in that it is immediately necessary to appropriate and expend said funds in order to return the funds immediately pursuant to HUD procedure and to properly account for the returned funds and to make the funds available for future use, 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 fund known as the CDBG Fund, Fund 2248, HOME Fund, Fund 2201, and General Government Grants Fund (2220) and from all monies estimated to come into said fund from any and all sources during the fiscal year ending December 31, 2021, the sum of $185,310.73 is hereby appropriated; per the account codes in the attachment to this ordinance.
SECTION 2. That the monies appropriated in the foregoing Section 1 shall be paid upon the order of the Director of the Department of Finance and Management and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 3. That the Director of the Department Finance and Management is hereby authorized and directed to return funds to the U.S. Department of Housing and Urban Development from which the original dollars were drawn in the amount of $185,310.73. That any future refunds or repayments required by the grantor are hereby authorized in accordance with all applicable grant agreements.
SECTION 4. That for the purpose as stated in Section 3, the expenditure of $185,310.73 so much thereof as necessary, be and is hereby authorized to be expended from the Department of Finance and Management.
SECTION 5. 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.