Explanation
BACKGROUND AND FISCAL IMPACT:
This ordinance decreases general fund appropriations for fiscal year 2020 by $41,500,000 to address the City Auditor's reduction of the 2020 estimate of available resources into the general operating fund. On June 9, 2020, the City Auditor published her revised estimate as a result of the COVID-19 pandemic, and its effects on the local economy and related revenue streams into the general fund. Due to spending controls put in place at the beginning of the COVID-19 pandemic, projected savings have been identified in almost all general funded city departments. This ordinance net reduces appropriations within general fund divisions in accordance with projections made at the end of the second quarter, with a few exceptions due to updated information. After completing the third quarter review, additional transfers will likely be needed based on revised projections available in the fourth quarter.
As part of this overall general fund reduction, the general fund subsidies to Columbus Public Health and Recreation and Parks must be lowered. As such, equal reductions to the health special revenue fund and the Recreation and Parks operation and extension fund are also authorized in this legislation. However, in order to meet its projected obligations, an appropriation of $400,000 in the health special revenue fund’s cash balance/expected revenue is needed by Columbus Public Health subsequent to the aforementioned reduction. In addition, some projected savings identified in the general fund at the end of the second quarter are currently encumbered in the following internal services: fleet, mail, and information services. Therefore, partial cancellations of existing encumbrances in these internal services, and others, are necessary. Likewise, subsequent reductions in those internal service funds are also authorized in this legislation.
Emergency Designation is requested as it is immediately necessary to adjust the general fund appropriation, and related funds, of the city to the new estimate of available resources as published by the City Auditor on June 9, 2020 in advance of the close of the third quarter.
Title
To authorize the net decrease of appropriations in the general operating fund of the City of Columbus for fiscal year 2020 by $41,500,000.00 in response to the City Auditor's revised estimate dated June 9, 2020; to authorize the partial cancellation of several internal service encumbrances and other encumbrances; to decrease appropriations in the health special revenue fund by $9,500,000.00; to decrease appropriations in the recreation and parks operation and extension fund by $1,025,000.00; to decrease appropriations in the fleet management fund by $4,975,000.00; to decrease appropriations in the print and mailroom services fund by $85,000.00; to decrease appropriations in the technology services fund by $270,000.00; to authorize the appropriation of $400,000.00 in the health special revenue fund; and to declare an emergency ($41,500,000.00).
Body
WHEREAS, as a result of the COVID-19 public health emergency and subsequent economic effects, projected 2020 revenues are insufficient to support the general fund’s original appropriation as passed by Columbus City Council in February; and
WHEREAS, in response, the City Auditor has reduced the estimate of available resources for the general operating fund by $41,500,000; and
WHEREAS, surpluses and deficits were identified in the second quarter financial review; and
WHEREAS, a net reduction of $41,500,000 in general fund appropriations is authorized in this legislation; and
WHEREAS, such reductions are contingent upon partial cancellations of existing encumbrances in several internal services, namely fleet, mail, and information services, as well as other encumbrances; and
WHEREAS, by reducing the general fund subsidy to Columbus Public Health and the Recreation and Parks Department, subsequent reductions in the health special revenue fund and the recreation and parks operation and extension fund are likewise necessary; and
WHEREAS, upon partial cancellation of existing encumbrances, reductions in the fleet management fund, the print and mail fund services fund, and the technology services funds are necessary; and
WHEREAS, an appropriation of $400,000 is necessary in the health special revenue fund from the cash balance/expected revenues in that fund; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary to reduce general fund appropriations and related other funds to match the City Auditor’s revised estimate of available resources as published on June 9, 2020, 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 appropriations currently authorized in the general operating fund, fund 1000, subfund 100010, are hereby decreased by a net $41,500,000 according to the account codes in the attachment to this ordinance. As part of accomplishing this decrease, the City Auditor is authorized to reduce the general fund subsidy encumbrances for Columbus Public Health by $9,500,000 and for Recreation and Parks by $1,025,000 within the general fund.
SECTION 2. That appropriations currently authorized in the health special revenue fund, fund 2250, subfund 000000, are hereby decreased by $9,500,000 according to the account codes in the attachment to this ordinance in order to match the decrease in the general fund subsidy to Columbus Public Health.
SECTION 3. That from the monies in the fund known as the health special revenue fund, fund no. 2250, subfund 000000 and from all monies estimated to come into said fund from any and all sources during the 12 months ending December 31, 2020, there be and hereby are appropriated $400,000 in order to meet the obligations projected as of the end of the second quarter according to the account codes in the attachment to this ordinance.
SECTION 4. That appropriations currently authorized in the recreation and parks operation and extension fund, fund 2285, subfund 000000, are hereby decreased by $1,025,000 according to the account codes in the attachment to this ordinance in order to match the decrease in the general fund subsidy to the Recreation and Parks Department.
SECTION 5. That the City Auditor is authorized to reduce/partially cancel the following encumbrances, by these amounts:
Fund / Subfund Document# / Line# Amount
1000 / 100010 BRDI002512 / 80 $1,188,755
1000 / 100010 BRDI002512 / 90 $1,213,040
2285 / 000000 BRDI002512 / 250 $275,000
1000 / 100010 BRDI002512 / 260 $1,482,000
1000 / 100010 BRDI002526 / 80 $74,734
1000 / 100010 BRDI002520 / 160 $26,900
1000 / 100010 BRDI002521 / 60 $9,080
1000 / 100010 BRDI002521 / 70 $12,218
1000 / 100010 BRDI002521 / 80 $20,735
1000 / 100010 BRDI002521 / 90 $921
1000 / 100010 BRDI002521 / 100 $6,316
1000 / 100010 BRDI002521 / 110 $511
1000 / 100010 BRDI002521 / 120 $507
1000 / 100010 BRDI002521 / 130 $3,667
1000 / 100010 BRDI002521 / 140 $1,817
1000 / 100010 BRDI002521 / 240 $1,693
1000 / 100010 BRDI002521 / 250 $69,721
1000 / 100010 BRDI002521 / 260 $33,365
1000 / 100010 BRDI002521 / 150 $8,923
1000 / 100010 BRDI002521 / 330 $2,757
1000 / 100010 BRDI002521 / 160 $1,011
1000 / 100010 BRDI002521 / 230 $389
1000 / 100010 BRDI002521 / 170 $2,736
1000 / 100010 BRDI002521 / 270 $708
1000 / 100010 BRDI002521 / 280 $2,627
1000 / 100010 BRDI002521 / 290 $1,536
1000 / 100010 BRDI002521 / 300 $968
1000 / 100010 BRDI002521 / 180 $4,855
1000 / 100010 BRDI002521 / 310 $2,426
1000 / 100010 BRDI002521 / 190 $1,967
1000 / 100010 BRDI002521 / 200 $17,258
1000 / 100010 BRDI002521 / 210 $18,839
1000 / 100010 BRDI002521 / 220 $2,278
1000 / 100010 BRDI002521 / 320 $2,371
1000 / 100010 BRDI002525 / 100 $815,000
1000 / 100010 BRDI002496 / 30 $780,000
SECTION 6. That appropriations currently authorized in the fleet management fund, fund 5200, subfund 520001, are hereby decreased by $4,975,000 according to the account codes in the attachment to this ordinance.
SECTION 7. That appropriations currently authorized in the print and mail services fund, fund 5517, subfund 000000, are hereby decreased by $85,000 according to the account codes in the attachment to this ordinance.
SECTION 8. That appropriations currently authorized in the technology services fund, fund 5100, subfund 510001, are hereby decreased by $270,000 according to the account codes in the attachment to this ordinance.
SECTION 9. 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 10. That the City Auditor is authorized to make any accounting changes to revise the financial information contained herein, as is necessary to carry out the intent of this ordinance, with approval of the Department of Finance and Management.
SECTION 11. That these appropriation reductions are necessary in response to the City Auditor's revised estimate dated June 9, 2020.
SECTION 12. 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.