Explanation
BACKGROUND: The U.S. Department of Housing and Urban Development (HUD) requires grantees and their subrecipients to maintain Community Development Block Grant (CDBG) revolving loan funds in interest bearing accounts, and to remit said interest to the federal treasury no less frequently than annually. During 2004, the City's revolving loan fund earned $47,238.38 of interest. This legislation will authorize the expenditure of monies from the revolving loan subfund for the transmittal of interest earnings to HUD.
This legislation is presented as an emergency to facilitate the timely remittance of monies to HUD.
FISCAL IMPACT: Interest earnings have been deposited into the CDBG revolving loan fund and are available for disbursement to HUD from said fund.
Title
To authorize the Director of the Department of Finance to expend $47,238.38 from the CDBG revolving loan fund for payment of interest earnings to the U.S. Department of Housing and Urban Development (HUD); and to declare an emergency. ($47,238.38)
Body
WHEREAS, federal regulations require Community Development Block Grant (CDBG) grantees and subrecipients to remit to the federal treasury all investment earnings paid on CDBG revolving loan accounts; and
WHEREAS, interest earnings have been deposited into the CDBG revolving loan subfund and are available for this expenditure; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance, in that it is immediately necessary to expend and remit the aforementioned funds to HUD, 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 director of the Department of Finance is hereby authorized to expend $47,238.38 from the Community Development Block Grant Fund, Fund No 248, Subfund 002, Department 45-01, OCA 455017, Object Level One: 05, Object Level Three: 5544.
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