HomeMy WebLinkAboutResolution 5382-04-2021A Resolution
NO. 5382-04-2021
AUTHORIZING AND EXPANDING FORT WORTH PUBLIC
IMPROVEMENT DISTRICT NO. 18 (TOURISM PID) TO INCLUDE
ADDITIONAL HOTELS AND TAKING CERTAIN OTHER ACTIONS
CONCERNING THE DISTRICT AND CORRECTING THE SUFFICIENCY
PERCENTAGES ASSOCIATED WITH THE PRIOR TOURISM PID
EXP ANSI ON PETITION
WHEREAS, the Public Improvement District As s essment Act , Chapter 372
of the Texas Local Government Code ("Act") allows for the establishment of public
improvement districts ;
WHEREAS, on August 29 , 2017 , the City Council adopted Resolution No.
4837-08-2017 , establishing Fort Worth Public Improvement District 18 -Tourism
("Touri s m PID") ("Establishing Resolution");
WHEREAS, Section 372.0121 of the Code allows the City Council to include
additional properties in the Tourism PID if (i) the property is a hotel and (ii) the
property could have been included in the Tourism PID without violating Section
3 72 .005 (b-1) of the Code when the Tourism PID was created regardless of whether
the record owners of the property signed the original petition ;
WHEREAS , with regard to the second element, the Code requires the
petition to be signed by the (1) record owners of taxable real property liable for
assessment that constitute more than 60.00% of the appraised value and (2) more
than 60 % of (i) all record owners liable for asses s ment or (ii) area of all taxable
property liable for asses s ment within the Tourism PID;
WHEREAS, on August 18 , 2020 , the City Council adopted Resolution No .
5264 -08-2020 , expanding the boundaries of the Tourism PID ("Tourism PID")
("Expansion Resolution");
WHEREAS, in the Expansion Resolution , the sufficiency percentages for the
Tourism PID expansion petition ("Expansion Petition") were found to be sufficient
because the addition of the new hotel properties did not result in the percentages
dropping at or below 60 %;
WHEREAS , however , the property owner(s) for the Hyatt Place TCU , 2500
W. Berry Street, was counted as not having signed the Expansion Petition when , in
fact , the owner(s ) did sign (S ee the Expansion Petition attached to Mayor and
Council Communication 20-0551 );
WHEREAS , when factoring in the signed petition for the Hyatt Place TCU,
the petition sufficiency percentages for the Expansion Petition should have been as
follows: (1) 74.9 % of the appraised value of taxable real property liable for
assessment , (2) 61.1 % of record owners o f taxable real property liable for
assessment , and (3) 65 . 7 % of the area of all taxabl e real property liable for
assessment ;
WHEREAS, another expansion pet1t10n ("Petition ") was submitted to the
City of Fort Worth , Texas ("City"), pursuant to the Act , requesting to expand the
Tourism boundaries to include additional hotel properties within Tourism PID and
ha s been on file in the office of the City Secreta ry for public inspection ;
WHEREAS, pursuant to Section 3 72.009 of the Act, the City provided notice
and publication of public hearings to be conducted on April 6, 2021 and April 13,
2021 to consider the expansion of the Tourism PID ("Public Hearings"), which
notice and publication included the following: (i) time and place of the public
hearing ; (ii) general nature of the proposed improvements and services ; (iii)
estimated costs of the improvements and services; (iv) expanded boundaries of the
Tourism PTO; (v) proposed method of assessment; and (vi) proposed apportionment
of cost between the additional hotel properties in Tourism PID and the City;
WHEREAS, notice of the Public Hearing was published on March 19 , 2021
in the Fort Worth Star-Te l egram , a newspaper of general circulation in the City , and
was also mailed March 18 , 2021 to all record owners of property in the Tourism
PID liable for assessment , and all persons desiring to be heard were given a full and
fair opportunity to be heard at the Public Hearing;
WHEREAS, the City Council conducted and adjourned the Public Hearing to
consider the expansion of the Tourism PID; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS:
1. Recitals.
The findings set forth in the recitals of this Resolution are found to be
true and correct.
2.
3.
Correction to Expansion Petition.
2.1 Expansion Petition. Based on the recitals set forth above , the
City Council hereby finds that the Expansion Petition remains
s ufficient and that the percentages are , and should always have ,
resulted in an increase to: (1) 74.9 % of the appraised value of taxable
real property liable for assessment , (2) 61.1 % of record owners of
taxable real property liable for assessment , and (3) 65. 7% of the area
of all tax able real property liable for assessment.
Findings.
The City Council, after duly considering the evidence and testimony
presented at the Public Hearings and based on all information known by the
City Council , hereby make s the following findings:
3.1 Petition and Boundaries.
(a) The current boundaries of the Tourism PIO consist of
nonconti guous areas authorized under Section 372 .0035 of the Act
consisting solely of hote l properties with 100 or more rooms
ordinarily used for sleeping within the City of Fort Worth. A list
of the original and additional hotels that are included within the
boundaries of the Tourism PIO is included in the Establishing
Resolution and Expansion Resolution , respectively .
(b) Section 372.0121 of the Act allows the City Council to include
additional properties in the Tourism PIO if (i) the property is a
hotel and (ii) the property could have been included in the Tourism
PIO without v iolating Section 372 .005(b-1) of the Code when the
Tourism PID was created regardle ss of whether the record owners
of the property signed the original petition. As evidenced below,
the hotel properties set forth in Exhibit "A", which is attached
hereto and incorporated herein for all purposes ("Additional Hotel
Properties"), meet the necessary elements for inclusion into the
Tourism PIO.
(i) The Additional Hotel Properties to be included in the
Tourism PIO as part of this Resolution are all hotel
properties.
(ii) City Council found that the Original Petition and
Expansion Petition for the Tourism PIO were sufficient
because they had been signed by record owners of taxable
real property liable for assessment that constituted: (a)
74.9% of the appraised value, (2) 61.1 % of record owners,
and (3) 65.7 % of the area of all taxable real property liable
for assessment. The property owners, or their duly
authorized representatives , for all of the Additional Hotel
Properties have each signed a petition requesting inclusion
within the Touri sm PIO. This results in an increase to (1)
75 . 7% of appraised value of taxable real property liable for
assessment, (2) 63.2% of record owners of taxable real
property liable for assessment, and (3) 66.9% for the area
of all taxable real property liable for as sessment.
3.2 Advisability and Feasibility of the Improvements and
Services Proposed for the Tourism PID. It is advisable to expand
the Tourism PIO to include the Additional Hotel Properties set forth
herein to pro v ide the proposed improvements and services described in
the Petition and this Resolution. The improvements and services will
promote the interests of the City and confer a special benefit on the
assessed properties within the Tourism PIO. The Fort Worth
Convention and Visitor 's Bureau staff performed an analysis of the
Tourism PIO , its service plan and strategies , and concluded that it
provides a very effective means for significantly enhancing the ability
of Fort Worth to promote its hotel, convention, and tourism activity,
which has been borne out since the Tourism PIO's establishment.
Based on this analysis and the successful history of the Tourism PID,
the City finds the proposed tourism public improvement district to be
both advisable and feasible.
3.3 Nature of the Improvements and Services. The general nature
of the proposed improvements and services to be provided within the
expanded boundaries of Tourism PIO include , without limitation ,
marketing , business recruitment, and promotional activities authorized
by the Act for improvements and promotion of the Tourism PIO,
including , but not limited to, the provision of incentives by the Fort
Worth Convention and Visitors Bureau to organizations to encourage
them to bring large and city-wide events (including, without limitation,
meetings , sporting , recreation , and cultural events) to Fort Worth and
to fund additional marketing by the Fort Worth Convention and
Visitors Bureau to increase hotel stays within the City.
3.4 Estimated Cost of the Improvements and Services. Over the
seven (7) year period beginning on October 1, 2020 and ending on the
expiration of the Tourism PIO as provided in Section 4 , the estimated
total cost of the improvements and services to be provided by the
Tourism PID will be $29 ,555,000.00 , which includes an estimated cost
of $2,800 ,000.00 for the 2020-2021 fiscal year.
For the 2020-2021 fiscal year, the estimated cost of the above-referenced
improvements and services , and estimated costs to implement such improvements
and services is :
Incentives and Sales Efforts $1 ,262 ,000
Marketing and Research
(Promotion/ Advertising) $972,000
Site Visits & Familiarization Tours $ 81 ,000
Cultural Enhancements through
Marketing and Promotion of the Arts $257 ,200
Operations and Administration $173 ,000
City Administrative Fee $55,000
Total $2 ,800,000
Such estimated costs are reasonable and appropriate . The estimated costs of
improvements and services provided in the 2020-2021 fiscal year will be
determined in a subsequent annual budget and service plan for the Tourism PID to
be approved by the City Council on April 13 , 2021, in accordance with Chapter
3 72 of the Act. Such costs will be paid from assessments levied in accordance
with Chapter 372 of the Act. The seven-year service plan proposed for the
Tourism PID is attached hereto as "Exhibit B" ("Service Plan") and incorporated
herein for all purposes. The Service Plan, budget, and assessment amount are
subject to annual review and approval by the City Council.
3.5. Method of Assessment. The costs of the improvements and services will
be funded from assessments levied on and collected from properties located in the
Tourism PID that contain hotels of one hundred (100) or more guest rooms and
that are subject to payment of City hotel occupancy taxes pursuant to Chapter 32,
Article II of the City Code, as amended . The City will levy a special assessment
against the new hotel properties located within the expanded boundaries of the
Tourism PID ("Hotel Parcel") in an amount equal to two percent (2%) of the
consideration received for occupancy of any sleeping rooms furnished by a hotel
located on a Hotel Parcel (subject to any lawful exemption of the hotel occupancy
tax under applicable state law and City ordinances), with such assessments to be
collected in the same manner and in accordance with the same procedures as
those established for collection of the City's hotel occupancy tax, as set forth in
Chapter 32 , Article II of the City Code, as amended. The collection of
assessments for the Additional Hotel Properties will be made at the same time
hotel occupancy taxes are collected on and after the date that the Additional Hotel
Properties are included in the Tourism PID. The City Council hereby finds that
the proposed method of assessment is reasonable and necessary.
3.6. Apportionment of Costs Between the Tourism PID and the City, as a
Whole. The apportionment of costs between the Tourism PID, inclusive of the
Additional Hotel Properties, and the City , as a whole, is as follows:
(a) The entire cost of each improvement and service will be paid from
assessments levied in accordance with Chapter 372 of the Act.
(b) No City funds will be used to pay any portion of the cost of any
improvement or service, unless such funding is approved from the City
Council or other appropriate municipal authority on a case-by-case basis.
4. Inclusion of Additional Hotel Properties within the Tourism PID; Term.
Based on the findings set forth above, the City Council authorizes the expansion
of the boundaries of the Tourism PID to include the Additional Hotel Properties. The
inclusion of the Additional Hotel Properties within the Tourism PID takes effect on the
date on which this Resolution is published in a newspaper of general circulation in the
City in accordance with Section 372.0lO(b) of the Act and will expire concurrently with
the expiration date set forth in Section 3 of the Establishing Resolution. The expansion
of the Tourism PID is subject to all conditions, limitations, and reservations set forth in
the findings in Sections 2 and 3. All other provisions of this Resolution will be effective
from and after adoption of this Resolution .
5. Advisory Body.
The City Council hereby declines to appoint an advisory body for the expanded
Tourism PID boundaries pursuant to Section 372.008 of the Act. The City Council
hereby reserves the right to assign responsibility for preparation of the ongoing service
plan for the PID to another entity in the absence of such an advisory body, as authorized
by Section 372.013(a) of the Act.
6. Publication.
The City Secretary is hereby directed to publish notice of the City Council's
authorization to establish the PID once in a newspaper of general circulation in the City.
ADOPTED this 13 111 day of April 2021.
ATTEST:
Mary J. Kayser, City Secretary
EXHIBIT A
Expanded Boundari es of the Tourism PID
(Additional Hotel Properties)
Account Name A ddress
Home2 Suites -Cultural District 3000 and 3012 W
Lancaster A venue
Hotel Drover 200 Mule Alley Drive
Residence Inn Waterside -Fort Worth 5825 Arborlawn Drive
Southwest
City, State, Zip RMS
Fort Worth, TX 114
76107
Fort Worth , TX 200
76164
Fort Worth, TX 119
76109
EXHIBIT B
Service Plan
City of Fort Worth
Seven Year Service Plan (Mid-Year)
Public Improvement District No . 18 • Tourism
FY 20 /21 FY21/22 FY22/23 FY23/24 FY24/25 FY25126 FY26/27
REVENUES
PIO Assessments $ 2,800,000 $ 3,515,000 $ 4,100,000 $ 4,430,000 $ 4,685,000 $ 4,915,000 $ 5,110,000
Total Funds Available for Use $ 2,800,000 $ 3,515,000 $ 4,100,000 $ 4 ,430,000 $ 4,685,000 $ 4,915,000 $ 5,110,000
EXPENSES
Incentive s & Sa les Efforts $ 1,262,000 $ 1,643,500 $ 1,921,375 $ 2,078,125 $ 2,199,250 $ 2,308,500 $ 2,40 1,125
Ma rke ting and Re search (Prom oti on/ Advertising) 972,000 1,2 11,000 1,415,750 1,531,250 1,620 ,500 1,701 ,000 1,769,250
Si te Visits & Fami lia rization Tours 81,000 173,000 202,250 218,750 231 ,500 243,000 252,750
Cultural Enhancements tllrough
Marke ting and promotion of the Arts 257,000 259,500 303,375 328,125 347,250 364 ,500 379,125
Operations & Administration 173,000 173,000 202,250 218 ,750 23 1,500 243,000 252,750
City Adm inistr ative Fee 55 ,000 55,000 55,000 55,000 55,000 55 ,000 55,000
Total Budgeted Expenses $ 2,800,000 $ 3,515,000 $ 4,100,000 $ 4,430,000 $ 4,685,000 $ 4,915,000 $ 5,110,000
Contribution to Fund Balance
Total Expenses $ 2,800,000 $ 3,515,000 $ 4,100,000 $ 4,430,000 $ 4,685,000 $ 4 ,915,000 $ 5,110,000
Net Change in Fund Balance $ $ $ $ $ $ $
Fund Balance, Beginning of Year (Eslimaled Yrs 2-5) 2,67 1,122 ' 2,671 ,122 2,67 1,122 2,671,122 2,671 ,122 2,67 1,122 2,671 ,1 22
Estimated Fu nd Balance, End of Yea r 2,67 1,122 2,671,1 22 2,671 ,122 2,671 ,122 2,671 ,122 2,67 1,1 22 2,671 ,122
ReseM Requirement 533,439 ' 683,470 738,481 780,990 8 19 ,331 851,837 851 ,837
Over (Under) Reserve 2,137,683 $ 1,987,652 $ 1,932,641 $ 1,890,132 $ 1,851 ,791 $ 1,819,285 $ 1,819,285
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 04/13/21
LOG NAME: 17PID18 M1DYEARFY21
SUBJECT
M&C FILE NUMBER: M&C 21-0273
(ALL) Conduct Public Benefit Hearing Concerning the Following Matters Related to Fort Worth Public Improvement District No. 18 -Tourism
(Tourism PIO): (1) Expansion of the Tourism PIO to Include Three Additional Hotels , (2) the Updated and Revised Fiscal Year 2020-2021 Budget
and Seven-Year Service Plan , and (3) the 2020-2021 Assessment for the Additional Hotel Properties ; Adopt Attached Resolution Correcting the
Sufficiency Percentages Associated with the Prior Tourism PIO Expansion Petition and Authorizing and Expanding the Tourism PIO to Include
Three Additional Hotel Properties ; Approve Attached Revised 2020-2021 Assessment Roll; Adopt Attached Ordinance Levying Special
Assessments on the Additional Hotel Properties for Fiscal Year 2020-2021; Adopt Attached Resolution Updating and Revising the Tourism
PID's Fiscal Year 2020-2021 Budget and Seven-Year Service Plan; and Adopt Attached Appropriation Ordinance
(PUBLIC HEARING -a. Report of City Staff: Crystal Hinojosa; b. Public Comment; c. Council Action : Close Public Hearing and Act on M&C)
RECOMMENDATION:
It is recommended that the City Council :
1. Conduct Public Benefit Hearing Concerning the following matters related to Fort Worth Public Improvement District No. 18-Tourism
(Tourism PIO): (1) Expansion of the Tourism PIO to include three additional hotel properties , (2) the updated and revised Fiscal Year 2020-
2021 Budget and Seven-Year Service Plan, and (3) the 2020-2021 Assessment for the additional hotels;
2. Adopt the attached Resolution : (i) correcting the sufficiency percentages associated with the prior Tourism PIO Expansion Petition ; (ii)
making certain findings concerning the nature and advisability of special improvements and services to be provided for the benefit of the
additional hotels to be included in the Tourism PIO, the estimated costs of such improvements and services, the method of assessment, the
boundaries of the Tourism PIO, and the apportionment of costs between the Tourism PIO and the City, as a whole ; and (iii) authorizing and
expanding the Tourism PIO to include three additional hotel properties;
3. Direct the City Secretary to publish notice of the expansion of the Tourism PIO as required by Chapter 372 of the Texas Local Government
Code;
4 . Approve the attached revised 2020-2021 Assessment Roll ;
5 . Adopt the attached ordinance levying special assessments on the additional hotel properties for Fiscal Year 2020-2021, with such
assessments to be effective on the date that the Resolution to Expand the Tourism PIO is published one time in a newspaper of general
circulation in the City;
6. Adopt the attached resolution updating and revising the Tourism PID's Fiscal Year 2020-2021 Budget and Seven-Year Service plan; and
7. Adopt the attached appropriation ordinance decreasing appropriations in the amount of $1,378.453.00 for Fiscal Year 2020-2021 in the Fort
Worth Public Improvement District 18 -Tourism Fund.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to conduct a second public hearing concerning the expansion of the Fort Worth
Public Improvement District 18 -Tourism (Tourism PIO) to include three additional hotel properties, the updated and revised fiscal year 2020-2021
budget and seven-year service plan, and the 2020-2021 assessment for the additional hotel properties, along with certain actions related thereto .
The City Council conducted the first public hearing on April 6 , 2021 , finding that the Petition to Expand the Tourism PIO met the requirements set
forth in Chapter 372 of the Texas Local Government Code ("Code"), approving the filling of the revised 2020-2021 assessment roll, and setting this
public hearing for April 13 , 2021 .
On August 29, 2017, the City Council adopted Resolution No. 4837-08-2017 , establishing the Tourism PIO ("Establishing Resolution"). On August
18, 2020, the City Council adopted a Resolution No. 5264-08-2020 to expand the boundaries of the Tourism PIO to include five (5) additional
hotels (Mayor and Council Communication (M&C) 20-0551) ("Expansion Resolution").
EXPANSION OF THE TOURISM PIO
Boundaries:
The current boundaries of the Tourism PIO consist of noncontiguous areas authorized under Section 372.0035 of the Code consisting solely of
hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth. A list of the hotels that are included within the
boundaries of the Tourism PIO is included in the Original and Expansion Resolutions and attached hereto .
Section 372.0121 of the Code allows the City Council to include additional properties in the Tourism PIO if (i) the property is a hotel and (ii) the
property could have been included in the Tourism PIO without violating Section 372 .005 (b-1) of the Code when the Tourism PIO was created
regardless of whether the record owners of the property signed the original petition. With regard to the second element, the Code requires the
petition to be signed by the (1) record owners of taxable real property liable for assessment that constitute more than 60.00% of the appraised
value and (2) more than 60% of (i) all record owners liable for assessment or (ii) area of all taxable property liable for assessment within the
Tourism PIO . If the addition of the new properties results in these numbers dropping at or below the 60.00% threshold , then the properties may not
be added .
The additional properties to be included in the Tourism PIO meet both of the above-stated elements , therefore they, may be considered by the City
Council for inclusion into the Tourism PIO .
First , the following three properties to be included in the Tourism PIO are all hotels :
1. Home2 Suites-Cultural District, 3000 & 3012 W Lancaster Ave, Fort Worth , TX 76107
2 . Hotel Drover, 200 Mule Alley Drive, Fort Worth , TX 76164
3 . Residence Inn Waterside-Fort Worth Southwest, 5825 Arborlawn Drive, Fort Worth, TX 76109
With regard to the second element, the City Council found that the previous two petitions (original and expanded) complied with Section 372 .005
(b-1) of the Code because they had met the necessary percentage thresholds . In the process of calculating the updates and revised percentages
for 2020 expansion, staff discovered that Hyatt Place TCU , 2500 W . Berry Street, had signed the 2020 Expansion Petition to be included in the
Tourism PIO but was inadvertently counted as not having signed . When factoring in the signed petition for the Hyatt Place TCU , the petition
sufficiency percentages for the 2020 Expansion Petition increased and should have been as follows : (1) 7 4.9% of the appraised value of taxable
real property liable for assessment, (2) 61.1 % of record owners of taxable real property liable for assessment, and (3) 65.7% of the area of all
taxable real property liable for assessment. This will be corrected in the attached resolution .
The property owners, or their duly authorized representatives , for all three new hotel properties have signed a petition requesting inclusion within
the Tourism PIO . This results in an increase to 75.7% of the appraised value of taxable real property liable for assessment, 63 .2% for the area of all
taxable real property liable for assessment, and 66 .9% of record owners liable for assessment. Because the percentages are still above the
60.00 % threshold, the properties meet the second element.
NOTE: Crossland Economy Studios -Fossil Creek located at 3804 Tanacross Drive , a hotel property that was a part of the original petition
recently converted to permanent supportive housing in September of 2020 and is no longer considered a hotel by use and will no longer be paying
into the Tourism PIO . Removal of this hotel does not affect the percentages that were in place at the time of the original petition .
Nature of the Improvements:
The goals of the Tourism PIO focus on increasing the economic impact and enhancing competitiveness in conventions, meetings, leisure and
sports tourism and increasing tourism-related economic activity at all times, including during economic downturns and as inventory grows . The
Tourism PIO projects include incentives and sales efforts , convention and sports marketing and promotion , site visits and familiarization tours ,
community arts grants, convention services, event funding application, operations , research , and administration, all of which benefit the hotels
within the Tourism PIO .
Method of Assessment and Apportionment of Costs:
The assessment rate will be an amount equal to 2 .00% of the consideration received from the occupancy of any sleeping room furnished by a hotel
located within the Tourism PIO , with such assessment to be collected in the same manner and in accordance with the same procedures as those
established for the collection of the City's Hotel Occupancy Tax, as set forth in Chapter 32, Article II of the City Code, as amended. The entire costs
of each improvement and service will be paid from the above-stated assessments and no City funds will be used to pay any portion of such costs
unless such funding is approved by the City Council on a case-by-case basis .
Estimated Costs of the Improvements and Services:
The total estimated costs for the proposed services and improvements for the life of the Tourism PIO (approximately seven years) will be
$29 ,555,000.00, which includes an estimated cost of $2,800,000 .00 for the Fiscal Year 2020-2021 Mid-Year Budget Adjustment. The updated
and revised budget and seven-year service plan is set forth in more detail below and attached. The final version will be subject to approval by the
City Council. The estimated costs of the proposed improvements and services to be provided in subsequent years will be subject to future annual
budget and service and assessment plans adopted by the City Council in accordance with the Code. The actual costs of improvements and
services will be determined in accordance with the approved budget and service plan to be adopted by City Council and will be paid from Tourism
PIO assessments .
Advisability:
Staff recommends that the City Council find that these improvements and services are advisable because they will promote the interests of the City
and confer a special benefit on the assessed properties within the expanded boundary of the Tourism PIO.
Staff recommendation:
Staff recommends that City Council adopt the attached resolution correcting the sufficiency percentages associated with the prior Tourism PIO
petitions and authorizing and expanding the Tourism PIO to include the above-state three additional hotel properties.
Tourism PID Mid-Year Adjustments
The Tourism PIO is funded through a 2 % assessment on the consideration received from occupancy of any sleeping room furnished by a hotel in
the Tourism PIO . Due to the steep drop in hotel occupancy rates as a result of the COVID-19 situation , Tourism PIO assessment revenue is now
projected to be 33% less than originally budgeted. Consequently, staff has proactively worked with the Fort Worth Tourism Public Improvement
District Corporation (FWTPIDC) and the Fort Worth Convention and Visitors Bureau (CVB), which are the contracted Tourism PIO managers, to
conduct a mid-year review of the Tourism PID's FY 2020-2021 budget. City staff, FWTPIDC, and CVB have identified the need to decrease the
Tourism PIO assessment revenue by 33 % or $1 ,378,453.00 to account for the decline in funding as a result of COVID-19. The budget also takes
into account the three new hote ls . The budgeted expenses show a reduction in each category line item for the current fiscal year service plan (see
table below).
Revenue adjustments:
Line Items Previously Recommended Amended
to be Approved FY21 Mid-Year FY21 Budget
Adjusted Budget Item Adjustment Item
PIO $4 , ,378,453 .00 Assessments
Totals $4 , 178,453 .00
Expenditures adjustments :
Previously Recommended Amended Line items to be Approved Mid-Year FY21 Budget Adjusted FY21 Budget Adjustment Item Item
Incentive & Sales $1,855 ,554 .00 ($593 ,554 .00) $1 ,262,000 .00 Efforts
Marketing and
Research $1,443 ,208 .00 ($471 ,208 .00! $972,000 .00
(Promotion/ Advertising)
Site Visits & $309 ,259 .00 ($228,259 .00 $81 ,000 .00 Famil iarization Tours
Cultural Enhancements
through Marketing and $309 ,259.00 ($52 ,259 .00 $257 ,000 .00
promotion of the Arts
Operations & $206 , 173 .00 ($33 ,173.00) $173 ,000.00 Administration
City Administrative Fee $55 ,000 .00 $0 .00
$55 .~~I
Totals $4 ,178,453.00 ($1 ,378,453.00) $2 ,800 ,0 .
Staff supports FWTPIDC 's and CVB 's recommended mid-year budget adjustments. Upon approval of the above recommendations , the total
budgeted expenses for FY 2020-2021 will be $2,800 ,000.00. This mid-year budget adjustment will increase the unaudited , unassigned fund
balan ce by a total of $1 ,378,453.00. The rev ised Budget and seven-year service plan will take effect upon approval by City Council. The proposed
c hanges to the Tourism PID 's FY 202 0-2021 budget compl ies with the City's reserve requirements .
The Touris m PIO properties are loc ated in ALL COUNCIL DISTRICTS.
A Form 1295 is not re q uired 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, in the FWPID #18 -Tourism Fund . Prior to any expenditure being incurred , the
Economic Development Department has the responsibil ity to validate the availability of funds .
Submitted for City Manager's Office by: Jay Chapa 5804
Originating Business Unit Head: Robert Sturns 2 663
Additional Information Contact: Crystal Hinojosa 7808
Exped ited