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Ordinance 24167-05-2020
Ordinance No. 24167-05-2020 AN ORDINANCE DECREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE FISCAL YEAR 2019-2020 FORT WORTH PUBLIC IMPROVEMENT DISTRICT 7 — HERITAGE FUND IN THE AMOUNT OF $204,304.00, AND INCREASING AVAILABLE UNRESERVED FUND BALANCE, FOR THE PURPOSE OF ADJUSTING REVENUE TO MATCH EXPENDITURES; 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 2019-2020 in the Budget of the City Manager,there shall also be decreased estimated receipts and appropriations in the Public Improvement District 7—Heritage Fund in the amount of$204,304.00, and increased available unreserved fund balance, for the purpose adjusting revenue to match expenditures. 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 orjudgment 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 23835-09-2019 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: CITY SECRETARY �GE� �Girur"ut"G�i TyYeer F.Wallach(May 27,2020 13:14 COT) (Y V PAV Assistant City Attorney Mary J. 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C V H _O a CJ t1 Q 3 a L t} O m m a c City of Fort Worth Five Year Service Plan Public Improvement District No.7-Fort Worth FY19120 FY20/21 FY21/22 REVENUES PID Assessments $1,790,204 $1,929,633 $1,968,226 COFW Payment in lieu of Services 191,096 194,918 198,815 Budget Revenues $1,981,300 $2,124,551 $2,167,041 Use of Fund Balance $138,940 252,455 257,504 Total Revenues $2,120,240 $2,377,006 $2,424,545 EXPENSES Management Fee 127,928 131,762 135,715 Utilities 230,500 237,415 244,537 Landscaping/Tree Maintenance 1,127,894 1,161,731 1,219,817 Common Area Maintenance 221,534 228,180 235,025 Holiday Lighting 31,500 32,445 33,418 Security Enhancements 78,750 81,113 83,546 Advertising 1,000 2,000 2,000 Public Events 35,000 86,700 88,434 Capital Improvements 206,392 204,000 208,080 Insurance 13,938 14,217 14,501 Annual Review 10,000 10,000 10,000 City Administrative Fee 35,804 42,491 43,341 Budget Expenses 2,120,240 2,232,054 2,318,414 Contribution to Fund Balance - - - Total Expenses $2,120,240 $2,232,054 $2,318,414 City of Fort Worth,Texas Mayor and Council Communication DATE: 05/05/20 M&C FILE NUMBER: M&C 20-0278 LOG NAME: 13PID7 MIDYEARFY20 SUBJECT Adopt Resolution Amending the Fiscal Year 2019-2020 Budget and Five-Year Service Plan for Public Improvement District 7-Heritage and Adopt Appropriation Ordinance(COUNCIL DISTRICTS 4&7) RECOMMENDATION: It is recommended that the City Council: 1.Adopt the attached resolution approving the revised Fiscal Year 2019-2020 Budget and Five-Year Service Plan for Public Improvement District 7—Heritage to reflect amendments associated with a mid-year review;and 2.Adopt the attached appropriation ordinance adjusting receipts and appropriations in the Fort Worth Public Improvement District 7-Heritage Fund by decreasing receipts and appropriations in the amount of$204,304.00 in Fiscal Year 2019-2020,and increasing the available,unreserved fund balance. 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 Public Improvement District 7-Heritage(Heritage PID)Annual Budget(Budget)and recommend the following adjustments. The City contracts with FirstService Residential Texas PID, LLC(FirstService)to manage the Heritage PID. FirstService has identified the need to decrease the Heritage PID Budget by the use of fund balance in the amount of$204,304.00,in order to align expenses with actual activities in the Budget and Five-Year Service Plan. The expense decrease can be attributed primarily to planned activities being postponed,reduced,or interrupted by COVID-19.The proposed decrease in use of fund balance for Heritage PID will increase reserves in the fund balance. Revenue Adjustments: Line Items to Previously Recommended Amended be Adjusted Approved FY20 Mid-Year FY20 Budget Budget Item Adjustment Item PID $1,790,204.00 - $1,790,204.00 Assessments COFW Payment in lieu $191,096.00 - $191,096.00 of Services Use of Fund $343,244.00 $(204,304.00) $138,940.00 Balance Total Budget $2 324,544.00 $(204,304.00)$2,120,240.00 Revenue Expenditure Adjustments: Line Items to be Previously RecommendedFFY2:0Budget ded Adjusted Approved FY20 Mid-Year Budget Item Adjustment m 1 Landscaping/Tree $1,166,551.00 $(38,657.00) $1,127,894.00 Maintenance Common Area $316,323.00 $(94,789.00) $221,534.00 Maintenance11 Holiday Lighting $28,500.00i $3,000.00 $31,500.00 Line Items to be Previously Recommended Amended Adjusted Approved FY20 Mid-Year FY20 Budget Budget Item Adjustment Item Security $85,000.00 $(6,250.00) $78,750.00 Enhancements Advertising $35,000.00 $(34,000.00)]F $1,000 000 Public Events $85,000.00 $(50,000.00)F $35,000.00 Capital $200,000.00 $6,392.00 $206,392.00 Improvements Annual Review 11 $10,000.00 $10,000.00 Totals $1,916,374.00 $(204,304.00) $1,712,070.00 Staff supports FirstService's recommended mid-year budget adjustments.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 2019-2020 will be$2,120,240.00.This mid- year budget adjustment will increase the unaudited,unassigned fund balance by a total of$204,304.00.The revised Budget and Five-Year Service Plan will take effect upon approval by City Council.The City and FirstService will amend the existing management contract to reflect the mid-year adjustment(City Secretary Contract No.52905).The proposed changes to the Heritage PID Budget maintains compliance with reserve requirements The Heritage PID is located in COUNCIL DISTRICTS 4&7. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance,funds will be available in the current operating budget,as appropriated of the FWPID#7-Heritage Fund.Prior to any expenditure being incurred, the Financial Management Services Department has the responsibility to validate the availability of funds. Submitted for City Manager's Office by: Kevin Gunn 2015 Originating Business Unit Head: Reginald Zeno 8517 Additional Information Contact: Anthony Rousseau 8338