The URL can be used to link to this page

Home My WebLink AboutResolution 4918-03-2018 A Resolution NO. 4918-03-2018 APPROVING AN AMENDED BUDGET AND FIVE YEAR SERVICE PLAN FOR FORT WORTH PUBLIC IMPROVEMENT DISTRICT NO. 1 (DOWNTOWN PID) FOR FISCAL YEAR 2017-2018 WHEREAS, pursuant to Resolution No. 3756-06-2009 the City Council reestablished the Fort Worth Public Improvement District No. 1 (the"Downtown PID")on June 23, 2009; and WHEREAS, in accordance with Chapter 372 of the Texas Local Government Code, on September 12, 2017 the City Council approved a budget for the 2017-2018 fiscal year and a five-year service plan for the Downtown PID pursuant to M&C BH-372; and WHEREAS, pursuant to City Secretary Contract No. 49992, the City has contracted with the Downtown Fort Worth Inc.("DFWI"),to manage the day-to-day administration of the Downtown PID for the 2017-2018 fiscal year; and WHEREAS, in accordance with Section 372.013(a) of the Texas Local Government Code, the City has assigned to DFWI the responsibility for preparing the annual budget and five-year service plan for the Downtown PID; and WHEREAS, in accordance with the City's Policy and Guidelines for Public Improvement Districts ("PIDs"),adopted by the City Council pursuant to Resolution No.4905-02-2018,City staff annually conducts mid- year reviews of all PID budgets to ensure that actual PID expenditures correspond with budgeted expenses; and WHEREAS, in consultation with DFWI regarding actual PID expenditures and necessary programs and services required to date, City staff recommends that the City Council approve an amended budget for the Downtown PID for the 2017-2018 fiscal year; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,TEXAS THAT: 1. The Budget and Five Year Service Plan for the Downtown PID is hereby amended and approved for the remainder of the 2017-2018 fiscal year in accordance with Exhibit "A" which is attached hereto. 2. This Resolution shall take effect immediately following its adoption. Adopted this 27"'day of March,2018. i ATTEST: By: Ma J. I ays ty ecrdtaly ORT WO T Exhibit "A" AN AMENDED BUDGET FOR FORT WORTH PUBLIC IMPROVEMENT DISTRICT NO. 1 (DOWNTOWN PID) FOR FISCAL YEAR 2017-2018 REVENUES FY17/18 PID Assessments $ 2,487,232 COFW Assessment $ 204,000 COFW Payment in lieu of Services $ 147,009 PID Generated Revenue $ 500,711 Interest Earning $ 500.00 Total Revenue $ 3,339,452 EXPENSES Management Fee(Admin.) $ 287,893 Water $ 12,000 Utilities $ 5000 Landscape/Tree Maintenance $ 105,000 Trash Removal(Other Maintenance) $ 1,193,307 Holiday Light/Decorations (Repairs) $ 25,000 Security Enhancement $ 635,000 Communications/Newsletters $ 5,000 Marketing(&Research) $ 489,810 Transportation&Planning $ 185,290 Insurance $ 5850 Annual Review (Audit) $ 15,000 City Administrative Fee $ 54,420 Budget Expenses $ 3,018,570 Contribution to Fund Balance $ 320,882 Total Expenses $ 3,339,452 FoRTWOUH FORT WORTH® City of Fort Worth Five Year Service Plan FY 2017-18-FY 2021-22(MID YEAR ADJUSTMENT) Public Improvement District No. 1 -Fort Worth . FY17/18 FY17118 FY18119 FYI 9120 FY20/21 FY21/22 REVENUES MID YEAR ADJ. PID Assessments $2,487,232 $2,487,232 $2,536,977 $2,587,716 $2,639,470 $2,692,260 COFW Assessment $204,000 $204,000 $208,080 $212,242 $216,486 $220,816 COFW Payment in lieu of Services $147,009 $147,009 $149,949 $152,948 $156,007 $159,127 PID Generated Revenue $153,141 $500,711 $153,141 $153,141 $153,141 $153,141 Interest Earning - $500 - - - - Total Revenues $2,991,382 $3,339,452 $3,048,146 $3,106,046 $3,165,105 $3,225,344 EXPENSES Management Fee 287,893 287,893 295,914 301,832 307,869 314,026 Water 12,000 12,000 12,240 12,485 12,734 12,989 Utilities 5,000 5,000 5,100 5,202 5,306 5,412 Landscaping 105,000 105,000 107,100 109,242 111,427 113,655 Trash Removal 1,193,307 1,193,307 1,217,173 1,241,517 1,266,347 1,291,674 Holiday Light/Deco 25,000 25,000 25,500 26,010 26,530 27,061 Security 635,000 635,000 674,050 687,531 701,282 715,307 Communications/Newsletters 5,000 5,000 5,100 5,202 5,306 5,412 Marketing&Research 399,810 489,810 437,806 443,499 449,307 455,230 Transportation&Planning 185,290 185,290 188,996 192,776 196,631 200,564 Insurance 5,850 5,850 5,967 6,086 6,208 6,332 Annual Review 15,000 15,000 15,300 15,606 15,918 16,236 City Administrative Fee 54,420 54,420 57,900 59,058 60,239 61,444 Budget Expenses 2,928,570 3,018,570 3,048,146 3,106,046 3,165,105 3,225,344 Contribution to Fund Balance $62,812 $320,882 $0 $0 $0 $0 Total Expenses $2,991,382 $3,339,452 $3,048,146 $3,106,046 $3,165,105 $3,225,344 Submitted by Downtown Fort Worth,Inc. August 3,2017 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 3/27/2018 -Ordinance No. 23157-03-2418 and Resolution No. 4918-03-2018 DATE: Tuesday, March 27, 2018 REFERENCE NO.: **G-19248 LOG NAME: 13FMS PID1 MIDYEARFY18 SUBJECT: Adopt Resolution Amending the Fiscal Year 2017-2018 Budget and Five-Year Service Plan for Public Improvement District No. 1 — Downtown and Adopt Appropriation Ordinance (COUNCIL DISTRICT 9) RECOMMENDATION: It is recommended that City Council: 1. Adopt the attached resolution approving the revised Fiscal Year 2017-2018 Budget and Five-Year Service Plan for Public Improvement District No. 1 — Downtown to reflect amendments associated with a mid-year review; and 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Fort Worth Public Improvement District 1 - Downtown Fund in the amount of$293,650.00, from available revenues. DISCUSSION: The City of Fort Worth Department of Financial Management Services administers the City's Public Improvement Districts (PIDs) in accordance with Chapter 372 of the Texas Local Government Code. The City's PID Policy outlines the need to proactively work with the PID managers to oversee the services being provided by the PIDs and their associated financial positions. Staff, along with the contracted PID management companies, have conducted mid-year reviews of the annual budget and will recommend adjustments, as needed. The City contracts with Downtown Fort Worth, Inc. (DFWI) to manage the Downtown PID. DFWI has identified the need to increase the marketing and research budget due to a new campaign to promote the central business district. This campaign would be focused on downtown as an excellent place to relocate high density Class A headquarters office space. On February 14, 2018, the Downtown PID advisory board recommended $90,000.00 to be funded by the Downtown PID to pay for preliminary work associated with the marketing campaign, which includes research, message development, artwork, copy writing, and media research. Furthermore, DFWI has additional revenue generated within the Downtown PID from previous years in the amount of$347,570.00, and $500.00 in interest earnings from that revenue, that will more than cover the additional $90,000.00 expense under the Marketing and Research line item in the budget. Logname: 13FMS PIDlMIDYEARFY18 Page 1 of 3 Lines Items to be Previously Recommended Mid- Amended FY18 Adjusted Approved FY18 Year Adjustment Budget Item _ Budget Item Interest Earnings (-�� $0.00 $500.00 (�— $500.00 pecial Assessments $2,487,232.00 $0.00 (' $2,487,232.00 ransfer From General $351,009.00 $0.00 ($351,009.00 Fund _ ID Generated $153,141.00 F__$347_,570.00 $500,711.00 evenue _ Pse of Fund ___Balance�� $54,420.00 ($54,420.00) $0.00 Total Budget $3,045,802.00 [_7$2_93,650.00 [—$3,339,452.00 Revenue Ines Items to be PTeviously Recommended Mid- mended FY18 Adjusted pproved FY18 Year Adjustment Budget Item Budget Item __ _ ontractual services $2,874,150.00 $90,000.6-0-1 $2,964,150.00 ransfer Out—II $54,420.00 �1 -^� $0 (�— $54,420.00 ontribution to Fund $117,232.00 $203,650.00 F___ $320,882.00 alance Total Budget $3,045,802.00 $293,650.00 $3,339,452.00 Expense Staff recommends an increase of$90,000.00 in the Downtown PID budget for Marketing and Research and an increase of$348,070.00 from the aforementioned revenue generated within the Downtown PID. In addition, when the Fiscal Year 2017-2018 budget was adopted (BH-372), appropriations existed in the budget for both the Contribution to Fund Balance and the Use of Fund Balance line items. These line items should have been netted together. All other previously approved line items not mentioned above remain the same. Upon approval of the above recommendations, the total budgeted expenses for Fiscal Year 2017-2018 will be $3,339,452.00. This mid-year budget adjustment will increase the contribution to unaudited, unassigned fund balance by $293,650.00 ($348,070.00 in additional revenue - $54,420.00 in reduction from the use of fund balance). The revised Budget and Five-Year Service Plan will take effect upon approval by City Council. The Downtown PID is located in COUNCIL DISTRICT 9. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that approval of the above recommendations will increase the overall Fiscal Year 2018 budget from $3,045,802.00 to $3,339,452.00. With the proposed contribution to Fund Balance, PID No. 1 is in compliance with the reserve requirements. Logname: 13FMS PIDIMIDYEARFY18 Page 2 of 3 FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID YearChartfield 2 FROM Fund Department ccoun Project JProgram ctivity Budget Reference # moun ID ID Year ChartField 2 CERTIFICATIONS: Submitted for City Manager's Office by: Susan Alanis (8180) Originating Department Head: Aaron Bovos (8517) Additional Information Contact: Trey Imes (8558) Logname: 13FMS PID 1 MIDYEARFY 18 Page 3 of 3