Explanation
BACKGROUND: The City of Columbus maintains a cash balance from repayments of Economic Development loans, in a revolving loan fund as part of the Community Development Block Grant program (CDBG). These funds are kept separately in a CDBG (fund 2248) subfund (224802) and used for eligible projects. This ordinance provides for transfer of assets, liabilities, revenue and expenses of revolving loan transactions from fund 2248, subfund 224802, to Economic Dev Revolving Loan Fund (2249) in order to comply with 24 CFR 570.501. 24 CFR 570.501 that requires the revolving loan funds be held in a separate fund with a separate set of accounts that are independent of other program accounts. Thus, a new fund was created to accommodate this requirement, the Economic Dev Revolving Loan Fund (2249).
EMERGENCY DESIGNATION: This ordinance is submitted as an emergency so as to allow these financial transactions to be posted in the City's accounting system as soon as possible. Up to date financial posting promotes accurate accounting and financial management.
FISCAL IMPACT: There is no fiscal impact to the City. This ordinance transfers existing appropriation and cash between City funds.
Title
To authorize and direct the City Auditor to transfer accounts and appropriate as needed within CDBG fund (2248) and Economic Dev Revolving Loan Fund (2249); and to declare an emergency.
Body
WHEREAS, the city is required by 24 CFR 570.501 to maintain revolving loan funds in a separate fund; and
WHEREAS, it is necessary to transfer accounts from the Community Development Block Grant fund (2248) to Economic Dev Revolving Loan fund (2249) in order to comply with federal regulation.
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary to transfer accounts from CDBG fund (2248) to Economic Dev Revolving Loan Fund (2249) for the immediate preservation of 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 City Auditor is hereby authorized and directed to transfer all accounts and appropriate as needed, between the Community Development Block Grant fund 2248, and Economic Dev Revolving Loan Fund, fund 2249 as needed and appropriate for compliance.
SECTION 2. That the City Auditor is authorized to make any accounting changes to revise the funding source for all actions authorized in this ordinance.
SECTION 3. That the Director of the Department of Finance and Management or the City Auditor may be required to transfer funding from one fund to another within the CDBG funds (2248 & 2249), Community Development Block Grant Fund and Economic Dev Revolving Loan Fund due to the availability of funding based on federal requirements of grants based accounting and account coding will be provided to the City Auditor.
SECTION 4. 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.