Explanation
Background: The Department of Development uses user fees to fund the administration of the department’s tax incentive programs. Passage of Senate Bill 19 in 1994 provided for new fees for tax incentive projects to compensate for increased monitoring expenses. As such, the department charges a variety of fees (application fee, processing/administrative fee, annual monitoring fee, reporting late fee, and amendment fee) for its various tax incentive programs (Community Reinvestment Area, Enterprise Zone, Downtown Office Incentives, Job Creation Tax Credit, Job Growth Incentive, Property Assessed Clean Energy, and New Community Authority). The fee schedule was updated in early 2019 under ordinance 3221-2018.
The department is requesting that funds be appropriated for the 2025 fiscal year for the administration of the department’s tax incentive programs. The appropriation is for personnel costs only.
EMERGENCY JUSTIFICATION: Emergency action is requested so that funds can be established at the start of the 2025 budget year.
Fiscal Impact: This legislation appropriates $279,100.00 from the unappropriated balance of the Housing/Business Tax Incentives Fund (Fund 2229) for the 2025 budget year. The available cash balance of this fund is approximately $1,706,108.20.
Title
To authorize the appropriation of $279,100.00 from the unappropriated balance of the Housing/Business Tax Incentives Fund to the Department of Development to provide funds for the administration of tax incentive projects for the 2025 budget year; and to declare an emergency. ($279,100.00)
Body
WHEREAS, the passage of Senate Bill 19 in 1994 provided for new fees for tax incentive projects to compensate for increased monitoring expenses; and
WHEREAS, the department charges a variety of fees for administration of its various tax incentive programs; and
WHEREAS, this legislation appropriates $279,100.00 from the unallocated balance of the Housing/Business Tax Incentives Fund for the administration of this program. The available cash balance of this fund is approximately $1,706,108.20; and
WHEREAS, these funds are being appropriated to provide funding for staff costs; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to provide for this appropriation so that funds can be established at the start of the 2025 budget year, for the immediate preservation of 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 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, 2025, the sum of $279,100.00 is appropriated in Fund 2229 Housing Business Tax Incentive in Object Class 01 Personal Services per the accounting codes in the attachment to this ordinance.
SECTION 2. Funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
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 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.