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 2018, the city’s revolving loan fund earned interest of $49,237.98. Per 2 CFR 200, the city is permitted to retain $500 of earned interest for administrative costs; therefore, the amount to be remitted is $48,737.98. The amount budgeted in the revolving loan subfund for the 2019 expenditure of 2018 interest earnings to the federal treasury is $56,000.00. This legislation will authorize the expenditure of monies from the revolving loan subfund to remit 2018 interest earnings to the U.S. Department of HUD, for the U.S. Treasury.
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 and Management to expend $48,737.98 from the CDBG revolving loan fund for payment of interest earnings to the U.S. Department of HUD. ($48,737.98)
Body
WHEREAS, federal regulations require Community Development Block Grant (CDBG) grantees and subrecipients to remit to the federal treasury investment earnings paid on CDBG revolving loan accounts; and
WHEREAS, interest earnings have been deposited into the CDBG revolving loan fund and are available upon approval of ordinance 0722-2019; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Finance and Management to authorize the Director to expend such amounts as required for payment of interest earnings; Now, Therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the director of the Department of Finance and Management is hereby authorized to expend $48,737.98 from Fund 2249, the Economic Dev Revolving Loan Fund in object class 05 Other Expenditures per the accounting codes in the attachment to this ordinance.
SECTION 2. That the expenditure authorized in Section 1 shall be in the form of a wire transfer to U.S. Department of HUD as follows: $48,737.98 to the U.S. Treasury for 2018 CDBG revolving loan fund interest earnings.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.