HomeMy WebLinkAboutOrdinance 24545-12-2020 ORDINANCE NO.24545-12-2020
AN ORDINANCE INCREASING ESTIMATED RECEIPTS IN FISCAL YEAR 2020
IN THE CULTURE AND TOURISM 2% HOT FUND IN THE AMOUNT OF
$581,400.00, AND INCREASING APPROPRIATIONS FOR CONTRIBUTION TO
FUND BALANCE BY THE SAME AMOUNT, FROM AVAILABLE FUNDS, FOR
THE PURPOSE OF BRINGING APPROPRIATIONS IN LINE WITH A PRIOR
REVERSAL OF CAPITAL TRANSFERS; 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 increased estimated receipts and appropriations and
contribution to fund balance in the Culture and Tourism 2%HOT Fund in the amount of$581,400.00,from
available funds for the purpose of bringing appropriations in line with a prior reversal of capital transfers.
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 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said prior ordinances and appropriations are hereby expressly repealed.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
or Ronald P.Gonzales(Dec ,2020 09:37 CST)
Denis C.McElroy,Asst City Attorney Mary J.Kayser
(!D
ADOPTED AND EFFECTIVE:December 1,2020
City of Fort Worth,Texas
Mayor and Council Communication
DATE: 12/01/20 M&C FILE NUMBER: M&C 20-0887
LOG NAME: 25FY2020C&TOPERATING WINDUP
SUBJECT
(All)Adopt Appropriation Ordinances Enacting Fiscal Year 2020 Year End Budget Adjustments for the Culture and Tourism Funds by
Appropriating Unanticipated Surplus Revenue and Reallocating Resources,Available Current Year Revenues and Available Fund Balances to
Offset Projected Shortfalls and Update the FY2020-FY2024 Capital Improvement Plan
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached appropriation ordinance making adjustments to the FY2020 budget in the Culture and Tourism Fund to reflect the
significant revenue loss resulting from the impact of COVID-19 on the culture and tourism industry as follows:decreasing appropriations in the net
amount of$8,882,872.00 due to an estimated decrease in revenue in the amount of$14,744,022.00, and an increased use of fund balance of
$5,861,150.00, reflecting a total approximate net use of fund balance of$5,934,782.00 and a final FY2020 amended budget of$33,726,900.00;
2. Adopt the attached appropriation ordinance increasing receipts and appropriations in the Fort Worth Convention Center Minor
Renovation and Repair Project(City Project No.P00053)of the Culture and Tourism Capital Projects Fund in the amount of$4,090.00 from
transferred operating revenues and associated with unanticipated surplus revenue from the Smart Cities project;
3. Adopt the attached appropriation ordinance increasing appropriations in the Culture and Tourism Fund 2%Hotel Occupancy Tax Fund in
the amount of$581,400.00,and increasing contributions to fund balance by the same amount,resulting in a final revised FY2020 budget of
$4,272,847.00 for the Fund,which also reflects the result of prior reversal of capital transfers in FY2020 due to COVID-19 revenue losses;
4. Adopt the attached appropriation ordinance making adjustments to the FY2020 budget in the Culture and Tourism Project Financing Zone
Fund as follows:appropriating the use of transferred unpledged surplus debt funds from the Culture and Tourism Debt Service Fund in the amount
of$3,361,130.00,which offsets a decrease in revenue of$3,109,656.00 and allows for a reduction in the appropriated use of fund balance of
$251,473.00,reflecting a final net use of fund balance of$5,358,201.00,and a final FY2020 budget of$11,979,989.00,which is the same amount
as the originally adopted budget;and
5. Adopt the attached appropriation ordinance making adjustments to the FY2020 budget in the Venue Operating Fund,to reflect the
significant revenue loss resulting from the impact of COVID-19 on the culture and tourism industry,as follows:appropriating the use and transfer of
unpledged surplus debt funds from the Culture and Tourism Debt Service Fund,in the amount of$515,991.00,and decreasing appropriations and
contribution to fund balance by$1,886,228.00,for a total revised net contribution to fund balance of$3,815,521.00,with those adjustments
offsetting decreases in revenue of$2,402,219.00 and resulting in a final FY2020 amended budget of$4,331,512.00.
DISCUSSION:
The purpose of this Mayor and Council Communication(M&C)is to allocate funding and make budget adjustments for the Public Events
Department(PED)for FY2020 as a result of the COVID-19 pandemic and the near collapse of the tourism industry in the spring of 2020.
A portion of the actions proposed by this M&C are connected to a separate one on today's agenda(Log Name:25 FY2020 DEBT
ADJUSTMENTS)that recommends the use of unpledged surplus fund balance in the Culture and Tourism(C&T)Debt Service Fund to benefit the
final FY2020 balances for the Project Finance Zone(PFZ)Fund and Venue Operating Fund as well.
The C&T annual operating budgets are formally enacted into law by City Council action adopting an appropriation ordinance that establishes
spending limits for the PED funds operations. In the past,staff waited until the completion of the Comprehensive Annual Financial Report(CAFR)
to affect the settlement of departments.The City's current practice is to manage this process during or shortly after the close of the current fiscal
year,and to make adjustments to upcoming fiscal year plans for either net losses that have potential impacts to funds balance or net savings that
can be allocated to meet one-time needs or to address items in the future that have arisen during the previous fiscal year.
FUND FY20 ADOPTED FY20 AMENDED FY20 FINAL AMENDED VARIANCE ADOPTED
TO FINAL
Culture and Tourism $42,536,140.00 $42,609,772.00' $33,726,900.00 ($8,809,240.00)
Hot2% $7,261,447 $3,691,447.00 $4,272,847.00 ($2,988,600.00)
PFZ $11,979,989.00 $0.00 $11,979,989.00 ($0.00)
Venue $6,217,740.00 $0.00 $4,331,512.00 ($1,886,228.00)
Culture and Tourism Fund(recommendation 1)
Although the Culture and Tourism Fund is projected to have significant expenditure savings for FY2020,the loss of events and decrease in hotel
occupancy taxes,as a result the COVID-19 pandemic,has created an approximate operating budget short fall of$14.74M. Even with a total
expenditure adjustment of$8.88M,including$8.33M in savings and the elimination of a planned$545K contribution to fund balance,the severe
loss of revenue requires the additional use of approximately$5.86M in fund balance,for a total FY2020 approximate use of$5.93M in fund
balance,amending the FY2020 budget for the C&T Fund to$33,726,900.00.
Transfer and Appropriations to Capital/Technology Smart City Networks-Fort Worth Convention Center Project"(recommendation 2)
Excess revenue was received in FY2020 for the Technology Smart City Networks-Fort Worth Convention Center(FWCC)capital project from the
Smart Cites Networks,LP agreement(City Secretary Contract No.46140-R1). This M&C transfers those additional receipts and creates
additional appropriations in the same amount for the capital project. A previous reconciliation of appropriations and transfers was made to this
project January 20,2020 with M&C 20-0029,which increased the FY2020 C&T Fund budget to$42,609,772.00 by appropriating$73,632.00 in
fund balance for the purpose of the reconciliation transfer. Appropriations for the Technology Smart City Networks-FWCC capital project were
included in the FY2020-2024 Capital Improvement Plan in the amount of$35,000.00 via the Culture and Tourism Capital Projects Fund-
programmable project. Additional appropriations in the amount$4,090.00 are needed for the true up to account for revenue received in FY2020
that was not previously appropriated in the project.
Culture and Tourism Fund 2%Hotel Fund(recommendation 3)
The Culture and Tourism 2%Hotel Occupancy Tax(HOT)Fund budget was amended August 20,2020 with M&C 20-0597 which,as a result of the
COVID-19 pandemic,also revised the FY2020 capital plan by deferring$3.57M in capital transfers,decreasing the adopted budget to
$3,691,447.00. Due to the deferral of the capital transfer,the fund is now projected to have an anticipated surplus of approximately$581 K which
will be contributed to fund balance and allocated for capital projects in FY2021 to cover shortfalls for capital transfers in other funds.
Culture and Tourism Project Finance Zone Fund(recommendation 4)
The Culture and Tourism PFZ Fund budget was adopted with anticipated revenues of$6.37M and use of approximately$5.61 M in fund balance for
a total debt service payment of$11,979,988.00.However, FY2020 actual PFZ receipts are approximately$2.58M,interest earned of$30.51K and
contributions from other funds of$650K from capital returns to operating with the completion of the Cattle Bam project(M&C 20-0089 on February
18,2020)for a total of$3.26M in revenues. In collaboration with Financial Management Services and the City Attorney's Office, PED was able to
develop a revised strategy utilizing unpledged surplus in the debt fund to offset a portion of the costs for the FY2020 debt service payment. There
is another M&C on today's agenda(Log Name:25 FY2020 DEBT ADJUSTMENTS)that authorizes the transfer of$3.36M from unpledged debt
fund surpluses for FY2020,supplementing the needed use of operating fund balance.As a result,the planned use of fund balance can be
decreased by$251 K,for an estimated total use of$5.36M,which with the transfer from unpledged debt surplus and revenues actually received
creates the total needed funding for the FY2020 PFZ operating budget of$11,979,989.00 as adopted.
Venue Operating Fund(recommendation 5)
The Venue Operating Fund anticipated$6.21 M in revenues in the first year of implementation,with an anticipated contribution to fund balance of
$5.70M and a debt obligation of$515K. However, FY2020 actual receipts are approximately$3.81 M.In collaboration with Financial Management
Services and the City Attorney's Office,PED was able to develop a revised strategy utilizing unpledged surplus in the debt fund to offset the costs
of the FY2020 debt service payment. A separate M&C on today's agenda(Log Name:25 FY2020 DEBT ADJUSTMENTS)authorizes the
transfer of$515,991.00 from unpledged debt fund surpluses for FY2020,allowing all FY2020 operating receipts be retained as fund balance for
the fiscal year.The FY2020 Venue Operating Fund budget is amended to reflect only the amount of actual receipts received and the transfer of
unpledged surplus debt funds for an amended FY2020 Budget of$4,331,512.00. In anticipation of shortfalls in the FY2021 revenue collections
during the on-going COVID-19 pandemic recovery,fund balance will be necessary for the Venue Operating Fund to meet the FY2021 scheduled
debt obligation of$8.85M.
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 ordinances,funds
will be available in the Culture&Tourism,Culture&Tourism 2%Hotel,Culture&Tour Proj Fin Zone,Venue Operating and the Culture&Tourism
Cap Projects Funds. Prior to an expenditure being incurred,the Public Events Department has the responsibility of verifying the availability of
funds.
Submitted for City Manager's Office by: Jay Chapa 5804
Oriainating Business Unit Head: Michael Crum 2501
Additional Information Contact: Andrea Wright 2502