Explanation
Background: This legislation authorizes the appropriation and transfer of $3,478,825.00 from the Special Income Tax Fund, to the Franklin County Convention Facilities Authority Fund. The appropriation and transfer of $3,478,825.00 from the Special Income Tax Fund provides partial secondary financial backing, in conjunction with Franklin County, as stipulated in the City's lease agreement with the Franklin County Convention Facilities Authority (CFA). In 2020, the CFA refunding outstanding debt obligations that reduced the City’s appropriation obligations in subsequent years. The actual transfer of these funds will only occur if the CFA is unable to meet its debt obligations as outlined in its lease with the City. The City provides fifty percent of this backing, while Franklin County is responsible for the other fifty percent. Since 1990, no such payments have been needed, nor are any anticipated.
In 2019, the City entered into a Lease Agreement and Sub-Lease Agreement with the CFA and Franklin County, Ohio (Ordinance No. 2815-2019) in connection with the issuance of the hotel expansion bonds. The agreement allowed the CFA to issue the 2019B Lease Appropriation bonds. These bonds are to provide additional funding for the downtown convention center hotel expansion. Interest on these bonds will be capitalized through 2022. No appropriation is required in 2022 for these bonds. The City along with Franklin County will provide the backing for these bonds. The City provides fifty percent of this backing, while Franklin County is responsible for the other fifty percent. The actual transfer of these funds will only occur if the CFA is unable to meet its debt obligations.
Emergency: This ordinance is submitted as an emergency so as to allow the financial transactions to be posted into the City's accounting system as soon as possible. Up to date financial posting promotes accurate accounting and financial management.
Fiscal Impact: Fundi...
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