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 drastic 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 an additional $1,000,000 was deposited to the Rainy Day Fund in 2019 via 2924-2019. Making this deposit ensured a balance in excess of $80 million, one full year ahead of the intended goal.
As responsible stewards of public funds, the city has an obligation to plan for the economic uncertainty that results from recessions, natural disasters, or catastrophes, and to sustain basic city services in the face of such challenges. Through the adoption of this ordinance, the Mayor, the City Auditor, and City Council reaffirm the goals, purposes, and objectives of establishing, maintaining, and protecting the Economic Stabilization ("Rainy Day") Fund.
In addition, this legislation conveys the intent of the City to establish the goal of achieving a balance of $90 million in the fund by the end of 2024.
Title
To reaffirm the role of the Economic Stabilization Fund ("Rainy Day Fund") in allowing the City to maintain and continue basic services during an economic downturn,...
Click here for full text