Explanation
BACKGROUND: This ordinance authorizes the return of $209,284.59 to the U.S. Department of Housing and Urban Development (HUD) from which the original CDBG and HOME dollars were drawn. The return represents funds of $110,104 previously drawn for projects that were deemed an ineligible use of funds due to not meeting program requirements. It also represents funds of $99,180.59 in BWC refunds that were eligible expenses drawn in prior years and refunded from BWC in 2018 and required to be returned. Upon return, the funds will be made available to the City of Columbus for use for another project eligible under the CDBG program guidelines.
Emergency action is requested in order to return the funds immediately pursuant to HUD procedure.
FISCAL IMPACT: Funds totaling $99,180.59 have been returned from BWC and are currently on hand and $110,014 of ineligible expense was expenditure corrected to be expensed from another funding source and the drawn cash is on hand. Funds will be returned to HUD and will be added to the federal account available to the City for future use.
Title
To authorize an appropriation of $7,485.33 within the HOME Fund (2201) and $201,799.26 within the CDBG Fund (2248), to the Department of Finance and Management; to authorize the Director of Finance to return funds to the U.S. Department of Housing and Urban Development from which the original CDBG and HOME dollars were drawn; to authorize the expenditure of $7,485.33 in HOME Funds and $201,799.26 in CDBG Funds; and to declare an emergency. ($209,284.59)
Body
WHEREAS, the Department of Finance and Management desires to return funds to the U. S. Department of Housing and Urban Development (HUD), pursuant to HUD procedure, which were originally drawn from the City’s line of credit accounts with HUD; and
WHEREAS, upon return of the funds to HUD, the funds will be made available to the City of Columbus in its CDBG and HOME line of credit accounts for use in future projects eligible; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management, in that it is immediately necessary to appropriate and expend said funds in order to return the funds immediately pursuant to HUD procedure, thereby preserving the public health, peace, property, safety, and welfare; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That from the unappropriated monies in the fund known as the HOME Fund, Fund 2201, and CDBG Fund, Fund 2248 and from all monies estimated to come into said fund from any and all sources during the fiscal year ending December 31, 2018, the sum of $209,284.59 is hereby appropriated to the Department of Finance and Management; per the account codes in the attachment to this ordinance.
SECTION 2. That the monies appropriated in the foregoing Section 1 shall be paid upon the order of the Director of the Department of Finance and Management and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 3. That the Director of the Department Finance and Management is hereby authorized and directed to return funds to the U.S. Department of Housing and Urban Development from which the original dollars were drawn in the amount of $209,284.59. That any future refunds or repayments required by the grantor are hereby authorized in accordance with all applicable grant agreements.
SECTION 4. That for the purpose as stated in Section 3, the expenditure of $209,284.59 or so much thereof as necessary, be and is hereby authorized to be expended from the Department of Finance and Management.
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.