Explanation
BACKGROUND
The City of Columbus maintains a cash balance in a revolving loan fund as part of the Community Development Block Grant program (CDBG). These funds are reported separately in an Economic Development Revolving Loan Fund (RLF) (fund 2249) and used for eligible projects. The City reports program income generated from revolving loan and program activities separately in the Integrated Disbursement and Information System as RL and PI respectively. RL funds must be converted to PI in IDIS in order to commit to CDBG activities.
Consequently, the Department of Finance and Management, Division of Grants Management intends to transfer the cash balance available in the RLF to the CDBG Fund for use in 2021 CDBG activities. This transfer is necessary to comply with the regulations set forth in 24 CFR 570.504 regarding the use of CDBG program income. This ordinance provides for the transfer of revolving loan cash assets from RLF fund 2249 to CDBG fund 2248 in order to comply with Federal laws, rules, and regulations.
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
This ordinance transfers existing cash assets between City funds. ($2,453,033.06)
Title
To authorize and direct the City Auditor to appropriate and transfer $2,453,033.06 from the Economic Development Revolving Loan Fund (2249) to the Community Development Block Grant fund (2248); and to declare an emergency.
Body
WHEREAS, the Department of Finance and Management, Division of Grants Management, will convert the available cash assets in the RLF to CDBG program income in order to spend the funds on 2021 CDBG activities; and
WHEREAS, the regulations set forth in 24 CFR 570.504 define program income and the requirements regarding the use as CDBG funds; and
WHE...
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