(Columbus)—Columbus City Council President Andrew J. Ginther and
Finance Committee Chair Priscilla R. Tyson have announced Council’s intention
to invest an additional $3 million in the City’s Economic Stabilization, or
“Rainy Day,” Fund. The additional savings is on top of the more than $10
million set aside in the Mayor’s proposed budget. Combined, the total
additional savings will meet and surpass the City’s commitment to restore the
Rainy Day Fund to $50 million by 2014, and chart a
path to growing the fund to $75 million by the end of 2018.
“The
investment in the Rainy Day Fund is an investment in our future,” said
Councilmember Tyson. “Columbus weathered the economic problems that paralyzed
many local governments because this City Council, along with Mayor Coleman and Auditor Dorrian, ensured we had
sufficient funding to maintain core city services, like police and fire
protection.”
Established
in 1988, the Rainy Day Fund was first tapped in 2003. In late 2009, after
utilizing the fund to avoid drastic cuts to critical City services, the fund
had a balance of less than $10 million. As part of the City’s commitment to
voters who supported a tax increase that same year, City Council passed
resolution 0178X-2009, which committed to growing the Rainy Day Fund to $50 million
by the end of 2014. This Monday, Columbus City Council will consider a similar
resolution that will establish the new goal of $75 million by the end of 2018.
The $3 million set-aside by Council represents the first payment toward this
goal.
“This
increased investment will not only prepare Columbus for future economic
downturns, but it will strengthen the City’s long-term financial position and
save Columbus residents millions of dollars,” said Council President Ginther.
“The Rainy Day Fund has helped Columbus maintain the highest possible bond
rating, allowing us to finance capital projects like police and fire stations
for less.”
The
announcement comes as part of City Council’s 2013 General Fund budget
deliberations. The additional savings will come out of greater than expected
year-end revenue and cost savings that totaled approximately $7.5 million.
Council will announce a complete list of proposed budget amendments next week
before a public hearing on the overall budget and amendments that will be held
Thursday, January 17, at 5:30 pm in City Council Chambers.
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