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. The fund was first utilized in 2003. During the period from 2003-2009, over $91 million was transferred into the general fund in order to avoid reductions to city services in those years.
In 2009, the city made a commitment to the residents of Columbus to restore the fund balance of the Rainy Day Fund to $50 million by 2014, via resolution 0178X-2009. Having achieved that goal, the Mayor, City Council and the City Auditor set a new goal in 2013, via resolution 0013X-2013, of achieving a fund balance of $75 million by the end of 2018, a goal which the city surpassed. As such, in 2017, via 0073X-2017, the goal of achieving a fund balance of $80 million by the end of 2020 was established. Due to the strength of the city’s revenue and sound fiscal stewardship of this year’s general operating fund budget, this legislation authorizes an additional $1,000,000 deposit to the Rainy Day Fund in 2019. Making this deposit ensures a fund balance in excess of $80 million, one full year ahead of the intended goal.
Emergency designation: Emergency action is requested to ensure the deposit of these funds before year end.
Fiscal Impact: A transfer of $1,000,000.00 in expenditure savings from the 2019 general operating fund is being authorized for transfer to the economic stabilization fund. A total of $1,750,000 was already transferred to that fund earlier this year. This additional transfer ensures a fund balance of over $80 million.
Title
To authorize a transfer of $1,000,000.00 between subfunds of the general fund, thus depositing such funds into the Economic Stabilization Fund in order to exceed the goal of a “Rainy Day Fund” balance of $80 million adopted in resolution 0073X-2017 one full year early; and to declare an emergency ($...
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