HomeMy WebLinkAboutResolution 3513-08-2007Resoluxi~n
NO. 3513-08-2007
A RESOLUTION AUTHORIZING THE. CITY MANAGER TO SEEK AND
DISTRIBUTE STATE FUNDS, PURSUANT TO CHAPTER 1507, ACTS OF THE 76
LEGISLATURE, REGULAR SESSION, 1999 (ARTICLE 5190 14 OF VERNON'S TEXAS
CIVIL STATUTES) RELATING TO AND SUPPORTING ,EFFORTS OF CERTAIN
MUNICIPALITIES TO PROMOTE ECONOMIC DEVELOPMENT BY HOSTING
MAJOR SPORTING OR ATHLETIC EVENTS.
WHEREAS, there are many major sporting or competitive events that attract tens of thousands
of spectators to cities and counties in the State of Texas, many from .out of state, that generate
considerable economic activity for the State of Texas; and
WHEREAS, these events result in increased tax revenues for the state treasury but the cost of
bidding for, preparing for, and ultimately hosting a major event is considerable to the local host city or
county and
WHEREAS, to encourage these major events to select Texas as their site and to help alleviate
the costs associated with hosting these events, the Legislature adopted Texas Senate Bill 1523 effective
May 23, 2007 amending Chapter 1507 Acts of the 76 Legislature,. Regular Session, 1999 (Article
5190.14 of Vemon's Texas Civil Statutes) to establish the 'sporting events trust fund" as defined in the
Article; and
WHEREAS, Senate Bill 1523 authorizes a county with a population of at least 800,000 or a
municipality with a population of at least 500,000 to make application to the State Comptroller of public
accounts for use of monies deposited into the sporting events trust fiord to pay for certain costs incurred
by the municipality or county for hosting the major sporting or athletic events; and
VYHEREAS, under Senate Bill 1523, a qualifying county or city remits the amount of local sales
and use taxes revenue and mixed beverage tax revenue generated by a nationally or internationally
recognized sports event to the State Comptroller's Office for the purpose of creating the `Sporting
Events Trust Fund" and the Comptroller is required to deposit into the Fund a portion of state tax
revenue in an amount equal to 6.25 times the amount of the remitted local taxes; and
WHEREAS, the new state law will directly benefit the City of Fort Worth and the State of
Texas from an increase in tourism resulting from the retention or the attraction of events to our city and
state and will likely have the effect of:
• An increase in utilized hotel rooms, which has a positive impact on the Hotel Occupancy Tax;
and
• An increase in general sales and consumption, which has a positive impact on the local and state
sales tax; and
• An increase in mixed beverage tax as well as taxes generated under Title 5 of the Alcohol
Beverage Code; and
• An increase in the length of time a show is in Fort Worth facilities, which increases the local
facility rental revenue.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS, THAT:
1 The City Manager is authorized to deposit revenues generated from the incremental
increase in taxes generated from the sporting event into a trust fund created by
the comptroller and designated as the "Sporting Events Trust Fund and.
2. The City Manager is authorized to submit applications to the State Comptroller to seek state
funds, pursuant to Article 5190 14 for the purpose of utilizing any funds received to assist in
enhancing nationally or internationally recognized sports events with a goal of
increasing participation and attendance and benefiting the economy of Fort Worth and the
State of Texas; and
3 The City Manager is authorized to negotiate contracts, not to exceed the amount of state
funds received through Article 5190 14 with the explicit guidance that the application and
the contract be developed so as to may imi~e the state funds to support nationally or
internationally recognized sports events and
4 The City Manager is authorized to distribute funds received from the state to the
organizations that sponsor the events pursuant to the terms of the contract
executed between the sporting events holder and the City
Adopted this 14th
ATTEST
day of August, 2007
By
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Marty Hendrix,~City Secretary
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