Ordinance 074-17RECORD OF ORDINANCES
Dayton Legal Blank, Inc.
Form No. 30043
Ordinance No. 74-17 Passed , 20
AN ORDINANCE TO AUTHORIZE THE ESTABLISHMENT OF
THE PROPERTY ASSESSED CLEAN ENERGY AGENCY FUND
WHEREAS, Section 5705.12 of the Ohio Revised Code grants permission to the taxing
authority of a subdivision to establish special funds; and
WHEREAS, the City wishes to establish an agency fund to facilitate the collection of
special assessments for energy improvement projects; and
WHEREAS, the City has entered into its first Energy Project Cooperative Agreement
with the Columbus Regional Energy Special Improvement District, the Columbus -Franklin
County Finance Authority, and Frantz Investments, LLC, which provides financing to
Frantz Investments, I_LC, for an energy improvement project through a special
assessment loan from the Columbus -Franklin County Finance Authority to Frantz
Investments, LLC; and
WHEREAS, Dublin City Council passed Ordinance 61-17 authorizing the City of Dublin
to levy special assessments against the property owned by Frantz Investments, LLC,
located at 5500 Frantz Road to provide funding to repay the special assessments loan;
and
WHEREAS, the financial obligation of the City is limited to submitting the special
assessments collected by the Franklin County Auditor to the Columbus -Franklin County
Finance Authority; and
WHEREAS, the special assessments loan does not constitute a debt obligation or
pledge of the City of Dublin's faith and credit or taxing power; and
WHEREAS, generally accepted accounting practices (GAAP) directs that special
assessment debt for which the City is not obligated in any manner (no commitment
special assessment debt) be reported in an agency fund.
NOW, TREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of
Ohio, of its elected members concurring, that:
Section 1. There be established a Property Assessed Clean Energy Fund, an agency
fund.
Section 2. Special assessments collected on behalf of the Columbus -Franklin County
Finance Authority as stipulated in the Energy Project Cooperative Agreement, as well as
any future special assessments collected for energy improvement projects, be receipted
into the Property Assessed Clean Energy Fund.
Section 3. Special assessments received into the fund be paid as required by the
pertinent Energy Project Cooperative Agreement.
Section 4. This ordinance shall take effect and be in force in accordance with Section
4.04) of the Revise,07Charter.
Peed this 14 day of 6 U f'�VY\.�U , 2017.
ayor - Prosiding Officer
tTTEST-.
L�
Clerk of Council `
j
Office of the City Manager
5200 Emerald Parkwayo Dublin OH 43017-1090
itv of Dublin Phone: 614-410-4400,o6114-410-4490
Cit
'411j
To: Members of Dublin City Council
From: Dana L. McDaniel, City
Date: October 19, 2017
IniUated By: Angel L. Mumma, Director of Financd
Jerry O'Brien, Chief Accountant
U."
Ke: Ordinance No. 74 -17 - Authorizing the Establishment of the Propel Ll'
Assessed Clean Energy (PACE) Agency Fund
Since the City is not responsible for repaying the loan with any source of revenues other than the
special assessments and is not responsible for assuming the debt in the event of default, the loan
is considered no commitment special assessment debt of the City. The guidance provided by the
Governmental Accounting Standards Board (GASB) for this type of debt states that,.,
The debt service transactions of a special assessment issue for which the
government is not obligated in any manner should be reported In an agency fund
rather than a debt service fund, to reflect the fact that the government�; duties are
limited to acting as an agent for the assessed property owners and the bondholders.
* I
Therefore, an agency fund is needed to account for the'recelpt and payment of the special
assessments. Moreover, should the City enter into additional agreements that constitute n*
Memo re. Ordinance 74-17 — Authorizing the Establishment of the Property Assessed Clean Energy (PACE)
Agency Fund
October 19, 2017
Page 2 of 2
I
commitment special assessment debt, it would be appropriate to account for those future debl-
issuances in the fund.
Staff recommends approval of Ordinance 74-17 at the second reading/public hearing scheduled
on November 6, 20174