HomeMy WebLinkAboutOrdinance 22147-03-2016 ORDINANCE NO.22147-03-2016
AN ORDINANCE INCREASING THE ESTIMATED APPROPRIATIONS IN THE
CULTURE AND TOURISM FUND IN THE AMOUNT OF $514,687.00, AND
DECREASING THE ASSIGNED FUND BALANCE BY THE SAME AMOUNT,
FOR THE PURPOSE OF FUNDING THE TRUE-UP WITH THE FORT WORTH
CONVENTION AND VISITORS BUREAU; PROVIDING FOR A SEVERABILITY
CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR
ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH;
AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2015-2016 in the
Budget of the City Manager, there shall also be increased estimated appropriations in the Culture and
Tourism Fund in the amount of$514,687.00,and decreasing the assigned fund balance by the same amount,
for the purpose of funding the True-up with the Fort Worth Convention and Visitors Bureau.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or
void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 21873-09-2015 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions
of said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
1
tv,
Deni Elroy(Y..Assistant City Attorney Mary J. er ity retary
ADOPTED AND EFFECTIVE:March 29.2016
Ordinance No.22147-03-2016
Page 1 of 1
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3129/20/6 - Ordinance No. 22147-03-2016
DATE: Tuesday, March 29, 2016 REFERENCE NO.: C-27655
LOG NAME: 25CVBTRUEUP FY2015
SUBJECT:
Adopt Supplemental Appropriation Ordinance Increasing Appropriations in the Culture and Tourism Fund in
the Amount of$514,687.00 and Decreasing the Assigned Fund Balance by the Same Amount for Funding
True-Up with the Fort Worth Convention and Visitors Bureau (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
Adopt Supplemental Appropriation Ordinance increasing appropriations in the Culture and Tourism Fund
in the amount of$514,687.00 and decreasing the assigned fund balance by the same amount for the
funding true-up with the Fort Worth Convention and Visitors Bureau.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to increase the Fiscal Year 2016
appropriation in the Culture and Tourism Fund in the amount of$514,687.00 for purposes of making an
additional payment to the Fort Worth Convention and Visitors Bureau (CVB) for the true-up of the funding
for the CVB for Fiscal Year 2015 according to the terms of City Secretary Contract (CSC) No. 44949.
On October 7, 2013, the City and CVB entered into CSC No. 44949 (M&C C-26493), allocating 47 percent
of Tax Collections to the CVB to carry out its contractual marketing and promotional obligations and duties
to market the City as a destination for conventions, equestrian events, motor coach tours, tourism and
other gatherings that would utilize City and private meeting facilities, hotel rooms and other tourism and
business amenities. Under the contract, the term "Tax Collections" is defined as "hotel occupancy tax
revenue (i) that is received . . . and (ii) that is not otherwise restricted or dedicated to a specific purpose . .
" Per the contract, payment to the CVB for each fiscal year is calculated during the budget process
based on projected Tax Collections and is paid in equal installments over the course of the year. After the
close of the fiscal year, the actual Tax Collections are compared to the budgeted projections and
adjustments are made to true-up the funding.
In early 2015, City staff engaged the CVB regarding funding plans for the Multi-Purpose Arena (Arena) at
the intersection of Harley Avenue and Gendy Street and other planned Public Events Capital
Projects. The CVB was advised that Staff would be recommending to City Council that a portion of future
growth in Hotel Occupancy Tax (HOT) revenue be dedicated to these types of special projects, meaning
such growth would not constitute Tax Collections under CSC No. 44949. On August 4, 2015, the Fort
Worth City Council adopted the initial funding plan for the Arena, adjacent facilities and related
infrastructure (Resolution No. 4498-08-2015), which was predicated on a portion of HOT growth being
used for the Arena. On December 1, 2015 (M&C G-18614), City Council made an official designation of
incremental growth in the City's seven percent HOT, setting aside revenue that is above the set baseline
($18,850,936.00) and that is generated by hotels inside of Project Financing Zone Number One (PFZ), for
eligible special projects. That M&C also authorized execution of a memorandum of understanding (MOU)
to memorialize how the designation impacted funding under CSC No. 44949.
Logname: 25CVBTRUEUP_FY2015 Page 1 of 3
In accordance with the terms of CSC No. 44949 and M&C G-18614, the true-up calculation for Fiscal Year
2015 is as follows:
BUDGETED
47 percent of Projected Tax Collections of$17,953,272.00 $8,438,038.00
ACTUAL
(a) 47 percent of actual Tax Collections up to baseline ($18,850,936.00) $8,859,940.00
PLUS
(b) 47 percent of actual Tax Collections that exceed baseline ($18,850,936.00) and that are generated
from hotels outside PFZ
$92,785.00
MINUS
(c) budgeted amount, already paid to CVB $8,438,038.00
EQUALS
Additional payment to CVB $514,687.00
In accordance with M&C G-18614, HOT revenues that exceed the baseline and that are generated by
hotels inside the PFZ are designated for special projects such as the Arena. For Fiscal Year 2015, the
amount of that allocation is $208,789.00.
NOTE - Following approval of this M&C, Staff intends to execute an amendment of the MOU approved in
December in order to more explicitly state that the increment calculations were intended to be and are
effective beginning with the Fiscal Year 2015 true-up process. This amendment is consistent with
discussions with the CVB staff and is reflected in the financial model and adopted funding plan.
This program serves the entire City.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon adoption of the attached supplemental appropriation ordinance,
funds will be available in the current operating budget, as appropriated, of the Culture and Tourism
Fund. Upon approval, the assigned fund balance of the Culture and Tourism Fund will exceed the
minimum reserve as outlined in the Financial Management Policy Statements.
FUND IDENTIFIERS (FIDs):
TO
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year (Chartfield 2)
20101 0241000 4990000 $514,687.00
20101 0241000 5330201 $514,687.00
FROM
Fund Department ccoun Project Program ctivity Budget Reference # Amount
ID 1A ID Year Chartfield 2
201011 0241000 15330201 1 1 1$514,687.00
CERTIFICATIONS:
Submitted for City Manager's Office by_ Susan Alanis (8180)
Logname: 25CVBTRUEUP_FY2015 Page 2 of 3
Originating Department Head: Kirk Slaughter (2501)
Additional Information Contact: Betty Tanner (2502)
Logname: 25CVBTRUEUP—FY2015 Page 3 of 3