Explanation
Background: This legislation authorizes the Director of the Department of Finance and Management to enter into contract with the Greater Columbus Arts Council (GCAC) for the purpose of distributing 2022 Admissions Tax proceeds from the Facility Stabilization Fund to invest in cultural arts facilities, public art, sports venues and performance arts spaces in the greater Columbus area, other than Nationwide Arena.
As Columbus grows, the city will earn an increasingly elevated status as a destination for concerts, conventions, and other major events.
As such, Columbus City Council authorized the establishment of the Facility Stabilization Fund, pursuant to Ord. 3379-2018. This fund was created in order to provide for the resources necessary to maintain Nationwide Arena as well as to invest in other cultural arts, sports, and performance arts venues in the greater Columbus area. Proceeds were made possible via the enactment of a 5% tax on admissions to events in Nationwide Arena. This tax is estimated to yield approximately $3 million per current year in revenue, with 20% of that revenue, or approximately $600,000.00, contracted with the Greater Columbus Arts Council for disbursement to outside organizations to invest in improvements to cultural arts facilities, public art, sports venues, and performance arts spaces. GCAC will establish a process for application and consideration of grant proposals.
Greater Columbus Arts Council disburses the tax proceeds through applications and considerations of proposals to outside organizations to invest in the improvements of cultural arts and sports venues. The services provided cannot be provided by existing city employees because these services are beyond the City’s current staffing capacity to provide.
Emergency action is requested so that tax proceeds can be disbursed without delay to ensure timely payments so that investment in cultural arts, sports, and performance arts venues can continue in the greater Columbus area with no interruption in service.
Fiscal Impact: This legislation authorizes the Director of Finance and Management to enter into contract with the Greater Columbus Arts Council for the purpose of distributing 2022 Admissions Tax proceeds from the Facility Stabilization Fund for the purpose of supporting cultural arts, sports, and performance arts venues in the greater Columbus area. Greater Columbus Arts Council will receive 20% of the annual revenue, (estimated at $600,000.00).
Title
To authorize the Director of the Department of Finance and Management to enter into contract with the Greater Columbus Arts Council (GCAC) for the purpose of distributing 20% of the 2022 Admissions Tax proceeds from the Facility Stabilization Fund for the purpose of investment in cultural arts, sports, and performance arts venues in the greater Columbus area; to authorize the appropriation and expenditure of these proceeds from the Facility Stabilization Fund estimated to be $600,000.00 and to declare an emergency.
( $600,000.00).
Body
WHEREAS, Ordinance 3379-2018 was passed on December 10, 2018, enacting Chapter 376 of the Columbus City Codes; and
WHEREAS, Ordinance 3102-2019 authorized the creation of the Facility Stabilization Fund; and
WHEREAS, the revenue generated by the creation of this fund provides the ability for the Greater Columbus Arts Council to invest in cultural arts facilities, public art, sports venues and performance arts spaces; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management in that it has become immediately necessary to authorize the Finance and Management Director to enter into contract with the Greater Columbus Arts Council for the purpose of distributing 2022 Admissions Tax proceeds from the Facility Stabilization Fund, so that the necessary investment in the cultural arts, sports, and performance arts venues can continue with no interruption in service, 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 the Director of Finance and Management is hereby authorized to enter into a contract with the Greater Columbus Arts Council for the purpose of distributing 2022 Admissions Tax proceeds from the Facility Stabilization Fund for the purpose of investment in the cultural arts, sports, and performance arts venues in the greater Columbus area.
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 ending December 31, 2022, the sum of $600,000.00, is appropriated in the Facility Stabilization Fund 2256, Sub-Fund 225601 in Object Class 03 per the account codes in the attachment to this ordinance. This figure constitutes an estimation and amounts collected will be distributed pursuant to Section 376.02 of the Columbus City Code. It should be noted that the City will assess a 0.5% administrative fee from gross receipts.
See Attached File: Ord 0958-2022 Legislation Template.xls
SECTION 3. That the expenditure of $600,000.00 or so much thereof as may be needed in regard to the action authorized in Section 1, is hereby authorized with the Greater Columbus Arts Council to be expended from the Facility Stabilization Fund 2256, Sub-Fund 225601 in Object Class 03 Contractual Services per the accounting codes in the attachment to this ordinance.
See Attached File: Ord.0958-2022 Legislation Template.xls
SECTION 4. That this contract is entered into in accordance with Section 376.03 of the Columbus City Code.
SECTION 5. 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 6. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 7. 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.