Explanation
BACKGROUND: The purpose of this ordinance is to authorize the City Auditor to create a new subfund 600499 titled “Unapplied Deposits” to use within custodial fund 6004 Water Division Agency for deposits of unapplied payments. In October 2026 it is projected that customers of Columbus Water & Power (CWP) will make payments using a new customer service billing system - CORE (Oracle CCS).
A custodial fund (agency fund) is needed to facilitate this transition because the funds received have not yet been earned or otherwise recognized as revenue, they should not be recorded as CWP revenue. At this stage, the funds are technically being held on behalf of others and are not yet CWP’s funds. This approach maintains the proper distinction between funds held in custody and CWP revenue, while providing an appropriate mechanism to account for the funds during the transition period.
FISCAL IMPACT: Unapplied deposits made into subfund 600499 have not yet been earned and, therefore, should not be recognized as revenue. Because these funds are not yet considered CWP’s money, establishing a custodial fund would provide the appropriate accounting treatment.
EMERGENCY ACTION: Emergency designation is requested to allow the subfund to be established prior to the scheduled testing of the new customer service system, Oracle CCS. The new system is being configured to establish a process for receiving and accounting for unapplied payments and the creation of the subfund is necessary to support the development and testing of this process. Timely establishment of the subfund is necessary to allow CWP to complete the required testing of the unapplied payment functionality as scheduled. Failure to establish the subfund prior to the testing would prevent the Department from fully testing this process and could delay implementation of the new system and the associated operational processes for unapplied payments.
Title
To authorize the City Auditor to create a new subfund titled Unapplied Deposits to use within custodial fund Water Division Agency for deposits of unapplied payments in Columbus Water & Power customer service billing system; and to declare an emergency. ($0.00)
Body
WHEREAS, the purpose of this ordinance is to authorize the City Auditor to create a new subfund 600499 titled “Unapplied Deposits” to use within custodial fund 6004 Water Division Agency for deposits of unapplied payments in the CWP’s customer service billing system, CORE; and
WHEREAS, the newly established “Unapplied Deposit Subfund” is for the purpose of holding unapplied payments until they can be identified and posted accurately to the customer and General Ledger (GL) Accounts once revenue has been earned; and
WHEREAS, a custodial fund (agency fund) is needed to facilitate this transition because the funds received have not yet been earned or otherwise recognized as revenue, they should not be recorded as CWP revenue. At this stage, the funds are technically being held on behalf of others and are not yet CWP’s funds. This approach maintains the proper distinction between funds held in custody and CWP revenue, while providing an appropriate mechanism to account for the funds during the transition period; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Water and Power in that it is immediately necessary to authorize the City Auditor to establish a new subfund in sufficient time to support the scheduled system testing and avoid unnecessary delay in implementation, 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 the City Auditor is hereby authorized to create a subfund 600499 titled Unapplied Deposits within custodial fund 6004 Water Divisions Agency for deposits of unapplied payments in the CWP’s customer service billing system, CORE.
SECTION 2. The newly established “Unapplied Deposit Subfund” is for the purpose of holding unapplied payments until they can be identified and posted accurately to the customer and GL Accounts once revenue has been earned.
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 (10) days after passage if the Mayor neither approves nor vetoes the same.