Explanation
BACKGROUND: The Department of Finance and Management, Division of Grants Management has been awarded annual entitlement funds for the Community Development Block Grant (CDBG) program from the U.S. Department of Housing and Urban Development (HUD). This ordinance is needed to accept the 2021 CDBG estimated award and appropriate a portion of the award in order to post timely financial transactions for grant-funded programs. There will be subsequent ordinances submitted by other City departments to appropriate the remaining grant funds and authorize contracts and expenditures for various CDBG activities.
The Community Development Block Grant (CDBG) Entitlement Program provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons.
The proposed funding for the Program Year 2021 allocated by HUD is planned for expenditures for the expansion of existing programing and new programing to serve low to moderate income residents of Columbus. All expenditures must be consistent with the community needs, priorities, and strategies stated in the City’s 2020-2024 Consolidated Plan approved by HUD. The appropriations requested in this ordinance align with the 2021 Action Plan submitted for City Council and are contingent on approval of Ord# 2345-2020.
Emergency action is requested to allow the financial transaction 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 EMPACT: The CDBG program is primarily funded with entitlement awards by the U.S. Department of Housing and Urban Development. However, certain grant programs may generate revenue that must be spent on furthering CDBG programming as required by the grantor. The anticipated PY2021 entitlement award is estimated at $7,000,000.00.
Title
To authorize and direct the Director of Finance and Management to accept grant funds from the U.S. Department of Housing and Urban Development in the amount of $7,000,000.00 for the Community Development Block Grant program; to authorize the appropriation of $3,783,500.00 from the unappropriated balance of the CDBG fund; and to declare an emergency. ($7,000,000.00)
Body
WHEREAS, $7,000,000.00 in entitlement grant funds are anticipated from the U.S. Department of Housing and Urban Development for the Community Development Block Grant program for the period of January 1, 2021 through December 31, 2021; and,
WHEREAS, it is necessary to accept and appropriate these funds from HUD for the support of the CDBG program; and,
WHEREAS, this ordinance is submitted as an emergency so as to allow the financial transaction to be posted in the City’s accounting system as soon as possible. Up to date financial posting promotes accurate accounting and financial management; and,
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management in that it is immediately necessary to accept these grant funds from the U.S. Department of HUD and to appropriate these funds to the CDBG fund for the immediate preservation of the public health, peace, property, safety and welfare and to avoid delay in services; Now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the director of Finance and Management is hereby authorized and directed to accept an estimated grant award of $7,000,000.00 from the U.S. Department of Housing and Urban Development for the Community Development Block Grant program for the period of January 1, 2021 through December 31, 2021.
SECTION 2. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2021, the sum of $3,783,500.00 is appropriated in Fund 2248 Community Development Block Grant Fund per the account codes in the attachment to this ordinance.
SECTION 3. That the monies appropriated in the foregoing Section 2 shall be paid upon the order of the respective department directors or elected officials for which the appropriations are made, except that small claims in amounts not to exceed two-thousand five-hundred dollars ($2,500.00) may be paid as authorized by Chapter 335 of the Columbus City Code as amended; and except that payments or transfers between departments, divisions or funds of the City may be made by the City Auditor; and except that payments for premiums for official bonds, depository commissions, employees’ hospitalization, life insurance, pensions, dental insurance and prepaid legal services, shall be made on the order and approval of the Director of the Department of Finance and Management or City Auditor; and that no order shall be drawn or money paid except upon voucher, the form of which shall be approved by the City Auditor.
SECTION 4. That, except in the matter of payrolls providing for the payment of the salaries of officers and employees regularly employed by the City and extraordinary emergencies, no warrant shall be issued in liquidation of vouchers, unless the department contracting the expense shall have first obtained an order duly certified that there are sufficient funds appropriated to the credit of the proper funds from which the expenditure is to be made, which certificate must be obtained prior to the incurrence of the obligation, and the head of any department or division authorized to contract expenditures will be held personally responsible for any obligation incurred contrary to the provisions of this section. Except that such certificate shall not be issued for obligations pertaining to “Capital Outlay” in programs or activities funded by federal or state categorical grants without the prior approval of the Director of the Department of Finance and Management; such prior approval must be obtained before submission of any requisition for items coded as “Capital Outlay” to the Department of Finance and Management. The Director of the Department of Finance and Management will review such requests for conformity with the approved budget.
SECTION 5. That it is understood that this Council is not making specific appropriations for each item of every classification herein before contained but only for the classifications per the account codes in the attachment to this ordinance. The itemized classification shall, however, constitute limitations on the powers of the several department heads as granted in Section 3, and no such officer shall make any expenditure for any other purpose in any amount beyond that of the particular classification; provided, however, that transfers may be made from one Object Level 1 to another, within any one department or division. Transfers of sums exceeding $100,000 shall be authorized only by ordinance of Council. Transfers of sums of $100,000 or less shall be approved by letter with the signatures of the head of the department, the Director of the Department of Finance and Management, the City Auditor and the Chairman of the Finance Committee.
SECTION 6. That the Director of the Department of Finance and Management may be required to transfer funding from one subfund to another within the Fund 2248, Community Development Block Grant 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 7. That the City Auditor is hereby authorized and directed to pay obligations of various departments pertaining to preceding years obligations from current appropriations up to a maximum of $25,000.00 per obligation.
SECTION 8. At the end of the grant period, any repayment of unencumbered balances required by the grantor is hereby authorized and any unused City match monies may be transferred back to the City fund from which they originated in accordance with all applicable grant agreements.
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 for 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.