Explanation
Background: The City of Columbus established the Economic Stabilization Fund (or "Rainy Day Fund") in 1988 to provide for the continuation of basic services during times of economic recession or unexpected revenue loss. Though significant investments have been deposited into this Fund in the years since 1988 the current balance is less than optimal.
With the passage of Issue 1, the City Income Tax rate is now 2.5%. Despite ongoing and immediate needs, it is important that the City budget and plan for the possibility of future fiscal challenges because one of the responsibilities of the City is to maintain and continue basic services during an economic downturn, natural disaster, or catastrophe. By adoption of this resolution both the Mayor and City Council reaffirm the goals, purposes and objectives of establishing, maintaining and protecting the Economic Stabilization ("Rainy Day") Fund.
In addition, this resolution conveys the intent of the City to establish the goal to achieve a balance of $50 million in the fund by the end of 2014.
Fiscal Impact: Based upon the Third Quarter Financial Review, this Fund is projected to have a 2009 year end balance of $9,866,739. Assuming no additional deposits are made to this fund in 2009, no less than $40,135,261 will need to be transferred to the fund by the end of 2014 to achieve the $50 million goal.
Title
To reaffirm the role of the Economic Stabilization Fund ("Rainy Day Fund") in allowing the City to maintain and continue basic services during an economic downturn, natural disaster, or catastrophe and to establish as a goal a balance of $50 million in the fund by the end of 2014.
Body
WHEREAS, the City of Columbus established the Economic Stabilization Fund (or "Rainy Day Fund") in 1988 (Ordinance 0860-1988, passed April 11, 1988) to provide for the continuation of basic services during times of economic recession or unexpected revenue loss; and
WHEREAS, to further it...
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