HomeMy WebLinkAboutIR 10406 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10406
To the Mayor and Members of the City Council May 5, 2020
�aT� • Pagel of 2
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SUBJECT: UPDATE ON FISCAL YEAR 2020 MID-YEAR ADJUSTMENTS FOR
1875 OPERATING PIDS
This Informal Report provides an update to the Mayor and City Council on the mid-year adjustments
for operating PIDs which are on the May 5, 2020 agenda for your consideration.
Background Information
A Public Improvement District is a defined geographical area established to provide specific types
of improvements or maintenance which are financed by assessments against the property
owners within the area.
The City of Fort Worth Department of Financial Management Services (FMS) administers the City's
Public Improvement Districts (PIDs) in accordance with Chapter 372 of the Texas Local
Government Code. FMS has proactively worked with the PID managers and boards to review
necessary budgetary adjustments for FY2020.
Mid-year Adjustments
Below is a summary of the recommended adjustments for each Operating PID:
The following PIDs reallocated expenditures between various expenditure categories with no effect
on fund balance:
• PID 6 — Park Glen; and
• PID 20 — E. Lancaster
The following PIDs are requesting the use of fund balance (for additional expenditures deemed
necessary that have been identified during the fiscal year):
• PID 7 — Heritage - $204,304.00-1
• PID 11 — Stockyards - $30,000.00-1
• PID 12 — Chapel Hill - $19,184.00-1 and
• PID 15 — Sun Valley - $3,000.00
PID 19 — Historic Camp Bowie is requesting the use of fund balance of $307,539 due to an
estimated loss of revenue of $80,000 and additional expenditures deemed necessary that were
identified during the fiscal year of $227,539.00. The estimated loss in revenue is due to 75
properties that were improperly levied an assessment. City staff has identified the issue and is
working with both the Tarrant Appraisal District and the Tarrant County Assessor Collectors Office
to correct.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10406
To the Mayor and Members of the City Council May 5, 2020
Page 2 of 2
xA.
SUBJECT: UPDATE ON FISCAL YEAR 2020 MID-YEAR ADJUSTMENTS FOR
1875 OPERATING PIDS
PID 18 — Tourism: City staff, Fort Worth Tourism Public Improvement District Corporation
(FWTPIDC), and Fort Worth Convention and Visitors Bureau (FWCVB) have identified the need to
decrease the Tourism PID Assessment revenue by$2,295,395.00 to account for the 45% reduction
in assessment revenue. FWTPIDC and FWCVB request the use of fund balance in the amount of
$853,468.00 to cover operational expenses for the remainder of the fiscal year.
Reserve Policy
With the approval of the Mid-year Adjustment M&Cs, all Operating PIDs except for PID 12—Chapel
Hill are projected to meet the City's reserve requirement which is equivalent to two months
(16.67%) of Operating Expenditures. A plan will be developed during the FY 2021 Budget process
to ensure that PID 12 — Chapel Hill complies with the reserve requirement by the end of FY2020.
Attached for your information is a presentation with an overview of PIDs. If you have any questions,
please call Reginald Zeno, Director of Financial Management Services / Chief Financial Officer, at
817-392-8500.
David Cooke
City Manager
Attachment
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
FORT W0RTH.,9
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Public Improvement Districts
Mid -Year Adjustment Summary
FORTWORTH
Presented by
Crystal Hinojosa, PID Administrator
Financial Management Services
FORT WORTH.,,)
PID Mid -Year Overview
Purpose
• PID policy outlines the need to proactively work with the PID managers to oversee the
services being provided and their associated financial positions.
• Mid-Year adjustments are necessary to reflect changes in actual performance during the
year.
Communication Efforts
• The City (FMS), PID Management Company, and the elected advisory board have worked
together to develop recommended adjustments to the FY20 Budget for each PID.
• The appropriate Council Member for each PID has been informed of the recommendations
(via email). No issues have been raised.
FORT WORTH,",,
PID 6 Park Glen :.
Council Member Cary Moon
Mid-Year Adjustments: Reserve Requirement:
• - •
• Beginning Fund Balance: $ 779,967.57
• FY20 Projected Revenue: $ 1,805,782.00
FY20 Projected Expenditure: $ (2,224,782.00)
• . • $ 29,520.00 $ (45,020.00) $ 784,500.00 FY20 Projected End Fund Balance: $ 360,967.57
. • • - $ 41,000.00 $ 20,000.00 $ 261,000.00 Reserve Requirement: $ 308,244.20
In Compliance: Yes
• • $ 6,800.00 $ 15,700.00 $ 22,500.00
$ 34,182.00 $ 2,320.00 $ 36,502.00
$ 5,100.00 $ 7,000.00 $ 12,100.00
• $ 1,116,602.00 $ - $ 1,116,602.00
_FORT WORTH,",, . —.now
PID 7 Heritage
Council Members Cary Moon
Mid-Year Adjustments: & Dennis Shingleton
�WFY2Line Items to be � � Recommended
Mid-Year • - •
AdjustmentAdjusted Adopted
- of • $ 343,244.00 $ (204,304.00) $ 138,940.00
Reserve Requirement:
$ 1,166,551.00 $ (38,657.00) $ 1,127,894.00 Beginning Fund Balance: $ 1,398,688.16
FY20 Projected Revenue: $ 1,981,300.00
$ 316,323.00 $ (94,789.00) $ 221,534.00 FY20 Projected Expenditure: $ (2,120,240.00)
FY20 Projected End Fund Balance: $ 1,259,748.16
• • . $ 28,500.00 $ 3,000.00 $ 31,500.00
Reserve Requirement: $ 315,809.82
$ 85,000.00 $ (6,250.00) $ 78,750.00
In Compliance: Yes
• - $ 35,000.00 $ (34,000.00) $ 1,000.00
• $ 85,000.00 $ (50,000.00) $ 35,000.00
. • • • - $ 200,000.00 $ 6,392.00 $ 206,392.00
$ 10,000.00 $ 10,000.00
• $ 1,916,374.00 $ (204,304.00) $ 1,712,070.00
FORT WORTH,",,
PID 11 - Stockyards l
Council Member Carlos Flores
Mid- Year Adjustments: Reserve Requirement:
Recommended
Line Items to be FY2020
Adopted •-Year Amended FY2020 Beginning Fund Balance: $ 105,594.73
AdjustmentAdjusted FY20 Projected Revenue: $ 119,447.00
_ f Fund FY20 Projected Expenditure: $ (161,558.00)
Balance• $12,111.00 $30,000.00 $42,111.00 FY20 Projected End Fund Balance: $ 63,483.73
Reserve Requirement: $ 13,296.55
- In Compliance: Yes
$ 40,000.00 $ 30,000.00 $ 70,000.00
• $ 40,000.00 $ 30,000.00 $ 70,000.00
t:r FORT WORTH.",,
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PID 12 — Chapel Hill
Council Member Dennis Shingleton
Mid-Year Adjustments: Reserve Requirement:
Recommended
"Line items t FY2020 d Mid-Yearted Adjustment Beginning Fund Balance: $ 26,141.77
FY20 Projected Revenue: $ 69,361.00
- of • Balance $ - $ 19,184.00 $ 19,184.00 FY20 Projected Expenditure: $ (88,545.00)
FY20 Projected End Fund Balance: $ 6,957.77
$ 11,200.00 $ 2,672.00 $ 13,872.00
Reserve Requirement: $ 9,996.65
• . • $ 13,941.00 $ 8,452.00 $ 22,393.00 In Compliance: No
$ - $ 2,000.00 $ 2,000.00 * FMS has discussed with PID Management Company and agree that the
proposed mid-year adjustment reflects necessary expenditures. FMS and
• • $ 2,340.00 $ 60.00 $ 2,400.00 PID Management Company will work together to ensure that reserves are
• $ 1,000.00 $ 1,500.00 $ 2,500.00 compliant in the FY21 Budget process. Mid-Year adjustment is under
reserve requirement by ($3,038.88).
• . • ' - • . $ 500.00 $ 4,500.00 $ 5,000.00
• $ 28,981.00 $ 19,184.00 $ 48,165.00
FORT WORTH.",,
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PID 1SunValley
5
Council Member Gyna Bivens
Mid-Year Adjustments: Reserve Requirement:
Line Items be Recommended L
Adjusted FY2020 Adopted '-Year Amended FY2020 Beginning Fund Balance: $ 47,147.30
Adjustment FY20 Projected Revenue: $ 102,122.00
FY20 Projected Expenditure: $ (107,200.00)
- of • Balance $ 2,078.00 $ 3,000.00 $ 5,078.00 FY20 Projected End Fund Balance: $ 42,069.30
Reserve Requirement: $ 16,166.15
$ - $ 3,000.00 $ 3,000.00 In Compliance: Yes
• $ - $ 3,000.00 $ 3,000.00
FORT WORTH,",, —.now
PID 18 TPID
All Council Districts
Mid-Year Adjustments:
• 1 - ' s . 6 1 1 ' see - 6 - - i - s I Reserve Requirement:
- $ 5,155,878.00 $ (2,295,395.00) $ 2,860,483.00
- • • $ - $ 853,468.00 $ 853,468.00 Beginning Fund Balance: $ 3,090,215.41
FY20 Projected Revenue: $ 2,860,483.00
• $ 5,155,878.00 $ (1,441,927.00) $ 3,713,951.00 FY20 Projected Expenditure: $ (3,713,951.00)
FY20 Projected End Fund Balance: $ 2,236,747.41
• $ 2,167,873.00 $ (525,515.00) $ 1,642,358.00 Reserve Requirement: $ 637,276.94
$ 1,785,307.00 $ (504,246.00) $ 1,281,061.00 In Compliance: Yes
•
• $ 510,088.00 $ (303,650.00) $ 206,438.00
• • • • - $ 382,566.00 $ (78,316.00) $ 304,250.00
• • $ 255,044.00 $ (30,200.00) $ 224,844.00
• $ 5,100,878.00 $ (1,441,927.00) $ 3,658,951.00
- _
FORT WORTH,",,
0
PID 19 Historic Camp Bowie
Council Member Brian Byrd & Dennis Shingleton
Mid-Year Adjustments:
- • - • - • Reserve Requirement:
$ 432,771.00 $ (80,000.00) $ 352,771.00 Beginning Fund Balance: $ 394,065.61
_ FY20 Projected Revenue. $ 352,771.00
• •
$ - $ 307,539.00 $ 307,539.00 FY20 Projected Expenditure: $ (678,101.00)
FY20 Projected End Fund Balance: $ 68,735.61
• $ 432,771.00 $ 227,539.00 $ 660,310.00
Reserve Requirement: $ 68,735.65
In Compliance: Yes
• - • $ 5,000.00 $ (5,000.00) $ -
• $ 69,802.00 $ 152,658.00 $ 222,460.00
$ 24,000.00 $ 79,381.00 $ 103,381.00
• $ 26,000.00 $ (2,000.00) $ 24,000.00
• $ - $ 2,500.00 $ 2,500.00
• $ 124,802.00 $ 227,539.00 $ 352,341.00
FORT WORTH."�)
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- PI D 20 E . Lancaster!
Council Member Gyna Bivens & Kelly Allen Gray
Mid-Year Adjustments: Reserve Requirement:
r
ning Fund Balance: $Projected Revenue: $ 280,122.00
FY20 Projected Expenditure: $ (245,727.00)
• $ 180,617.00 $ (4,000.00) $ 176,617.00 FY20 Projected End Fund Balance: $ 34,395.00
$ 2,000.00 $ 4,000.00 $ 6,000.00 1 Reserve Requirement: $ 34,395.00
In Compliance: Yes
• $ 182,617.00 $ - $ 182,617.00
FORT WORTH,,
Current PID Tax Rates
PUBLIC IMPROVEMENT DISTRICI"-� FY20 RATE
$0.105 Per Each $100 of Property Value
PID 6 PARK GLEN -a $0.155 Per Each $100 of Residential Property Value and $0.035 Per Each $100 of
Commercial Property Value
$0.17 Per Each $100 of Residential Property Value and $0.11 Per Each $100 of
Commercial Property Value,
$0.12 per each $100 of property value
CHAPEL $0.18 per each $100 of property value
PID 14 TRINITY BLUFF $0.10 per each $100 of property value
$0.24 per each $100 of property value
PID 15 SUN VALLEY
$0.10 per each $100 of property value
$0.27 per each $100 of property value
AF
2% of revenues received from hotel room
FORT WORTH-"�)
Previous PID Tax Rates
• • $ 0.105 $ 0.12 $ 0.125 $ 0.10 $ 0.10
$ 0.155 Residential $ 0.165 Residential $ 0.175 Residential $ 0.175 Residential $ 0.175 Residential
'. $ 0.035 Commercial $ 0.035 Commercial $ 0.035 Commercial $ 0.035 Commercial $ 0.035 Commercial
$ 0.17 Residential $ 0.20 Residential $ 0.21 Residential $ 0.21 Residential $ 0.21 Residential
$ 0.11 Commercial $ 0.11 Commercial $ 0.11 Commercial $ 0.11 Commercial $ 0.11 Commercial
• • $ 0.12 $ 0.12 $ 0.12 $ 0.12 $ 0.12
. • - $ 0.18 $ 0.18 $ 0.19 $ 0.19 $ 0.19
$ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10
$ 0.24 $ 0.26 $ 0.27 $ 0.27 $ 0.27
• • : • - $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10
$ 0.27 - - - -
2% of revenues 2% of revenues 2% of revenues 2% of revenues 2% of revenues
received from hotel received from hotel received from hotel received from hotel received from hotel
' room room room room room
FORT WORTH.",, -.Mae
FY21 PID Budget Calendar
Current Phase:
March - May 2020: Initial Budget Review for FY2021
PID Administrator: March 2 — May 30
• March 20 PID staff should obtain new amount of City Payment in Lieu of Services (Parks Department)
• May 15 PID staff review TADS May preliminary values for estimated assessments and send to PID Management company to analyze
PID Management Company: March 2 — May 30
• March 2 —April 24 PID Management company should meet with the advisory board to discuss and receive input on future expense/projects
planned for the upcoming budget cycle
• May 18 PID Management Company will analyze and refine the budget based on May preliminary values for estimated assessments and
based on the comments received from the PID Board to create the Annual Service Assessment plan (SAP). The (SAP) outlines the projects and
programs for the next year, includes the budget, a 5-year forecast of revenues and expenditures, and a listing of properties located within the
district and their projected assessment fee for the year