Explanation
This ordinance decreases community development block grant fund appropriations for fiscal year 2011 by $694,112 in anticipation of federal funding reductions. Most recent communications from HUD suggest a reduction of 16.22% is expected, or $1,133,148. The balance of $439,036 will be absorbed by unallocated cash in the City's CDBG account.
This ordinance reduces appropriations within CDBG funded divisions in the following areas: Personnel costs are reduced $254,021 as a result of unfilled vacancies and shifting personnel to work on other grants and non-general funding sources; Material costs are reduced $1,500; Services are reduced $203,591 through partial reductions in the public service competitive fund ($15,500), building maintenance costs for the city's land bank properties ($20,000), the economic development loan programs ($119,000), shifting a portion of the fair housing contract to another grant ($17,091), reducing a portion of the fair housing analysis of impediments study ($10,000), reducing the advertising budget ($2,000), and eliminating a small contract proposed to address insect infestations in the code enforcement program ($20,000); Other expenditures are reduced $235,000 by relying on carryover funding in the affordable housing programs.
Fiscal Impact: This ordinance will reduce the 2011 CDBG budget from $8,400,584 to $7,706,472, in anticipation of federal funding reductions from the U.S. Department of Housing and Urban Development.
Title
To decrease appropriations by $694,112.00 in various divisions and object levels within the community development block grant fund in anticipation of federal funding reductions; to reduce an existing CDBG encumbrance for the fair housing initiative within the Department of Development; to establish an encumbrance for the fair housing initiative using HOME funds; to reduce an existing encumbrance for affordable housing activities within the Department of Development; and to declare an emergency ($694,112.00).
Body
WHEREAS, ordinance 0062-2011, passed January 24, 2011, appropriated CDBG funding in various divisions and object levels for 2011 approved programs based upon certain revenue assumptions at that time; and
WHEREAS, the city now anticipates significant reductions in federal funding awards currently being debated in the U.S. Congress; and
WHEREAS, reductions in the appropriations are deemed necessary at this time to mitigate any potential structural imbalance in the fund as a result of entitlement reductions from the federal government; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary to undertake the aforementioned actions, thereby preserving the public health, peace, property, safety and welfare; Now Therefore
BE IT ORDAINDED BY THE COUNCIL OF THE CITY OF COLUMBUS
SECTION 1: That appropriations currently authorized in the community development block grant fund, fund 248, subfund 001, in the following departments/divisions are hereby decreased by the following amounts:
Department Amount OL1 OL3 OCA
4401 $ 61,316 01 1000 410112
4401 $ 16,187 01 1000 410140
4402 $ 25,134 01 1000 410116
4410 $ 22,000 01 1000 440235
4410 $ 22,600 01 1000 440242
4410 $ 21,606 01 1000 440244
4501 $ 59,178 01 1000 459212
5101 $ 17,056 01 1112 511046
5101 $ 8,944 01 1112 511049
4501 $ 1,500 02 2193 459212
4401 $ 20,000 03 3370 410115
4401 $ 15,500 03 3337 410132
4403 $ 20,000 03 3336 410131
4410 $ 10,000 03 3336 440239
4410 $ 17,091 03 3337 440239
4501 $ 2,000 03 3353 459212
4410 $235,000 05 5525 440236
Total $575,112
SECTION 2: That appropriations currently authorized in the community development block grant fund, fund 248, subfund 002, in the following departments/divisions are hereby decreased by the following amounts:
Department Amount OL1 OL3 OCA
4402 $119,000 03 3336 410120
SECTION 3: that the City Auditor is hereby authorized and directed to unencumber a portion of existing encumbrances in the Department of Development, Division 4410, Fund 248, as follows:
Doc No. Reduction OL3 OCA
AC032012/001 $ 27,091 3337 440239
AC032011/002 $235,000 5525 440236
SECTION 4: that the City Auditor is hereby authorized and directed to establish an encumbrance in the amount of $17,091 in the Department of Development, Division 4410, Fund 201, Grant 458001, OCA 440230, OL1 03; OL3 3337.
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.