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HomeMy WebLinkAbout(0017) M&C 21-0602City of Fort Worth, Mayor and DATE: 08/24/21 Texas Council Communication LOG NAME: 13QUAIL VALLEY PID FY2022 SUBJECT M&C FILE NUMBER: M&C 21-0602 (CD 3) Approve Updated Five Year Service and Assessment Plan and Fiscal Year 2022 Budget in the Amount of $856,961.01 for Fort Worth Public Improvement District No. 16 (Walsh Ranch/Quail Valley) and Adopt Attached Appropriation Ordinance RECOMMENDATION: It is recommended that the City Council: 1. Approve the attached updated five-year service and assessment plan and annual budget for Fiscal Year 2022 for Fort Worth Public Improvement District No. 16 (Walsh Ranch/Quail Valley); and 2. Adopt the attached ordinance increasing estimated receipts and appropriations in the Fort Worth Public Improvement District No.16 - Quail Valley Fund by a total of $867,801.01, from a combination of assessment revenue and fund balance, for the purpose of funding Public Improvement District 16 (Walsh Ranch/Quail Valley) during Fiscal Year 2021-2022, allocated as follows: Improvement Area IlAssessment Revenue IFFund Balance Total No.1 1$454,748.52 $10,840.00 $465,588.52 No.2 1$402,212.49 1-$0- $402,212.49 0 $867,801.01 DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to consider a budget and updated service and assessment plan (SAP) for Fort Worth Public Improvement District No. 16 (Walsh Ranch/Quail Valley) (the PID). In September 2016, the City Council approved the creation of the Walsh Ranch/Quail Valley PID, which encompasses approximately one-fourth of the entire Walsh Ranch property, as a vehicle to reimburse the developer for a portion of certain infrastructure costs (M&C G-18842). PIDs are governed by Chapter 372 of the Texas Local Government Code, which requires review and update of a PID's Service and Assessment Plan (SAP) on an annual basis and establishment of an annual budget Full development of the PID will encompass multiple phases that occur over several years as phases of PID 16 are developed. In May 2017, the City Council approved a master reimbursement agreement for this PID (City Secretary Contract No. 49300) The master reimbursement agreement provides for total principal reimbursement for all phases of the PID of up to $47,000,000.00, sets deadlines for commencing collection of assessment revenues in all phases of the PID, and establishes basic conditions associated with possible issuance of future debt (bonds) (M&C C-28197). The SAP/update and ordinances levying assessments for Improvement Area Nos. 1 and 2 were approved in 2017 and 2020 respectively, along with a reimbursement agreement for each Improvement Area identifying the maximum reimbursement amount for that phase (M&Cs C-28211 and 20-0618). The Improvement Area No. 1 reimbursement agreement (CSC 49302) provides that $6,350,000.00, plus interest and administrative costs, will be funded out of special assessments on Improvement Area No. 1 of the PID. The Improvement Area No. 2 reimbursement agreement (CSC 54447) provides that $5,850,000.00, plus interest and administrative costs will be funded out of assessment on Improvement Area No. 2. The remaining $34,800,000.00 of potential reimbursement for the Walsh Ranch/Quail Valley PID could be allocated to future phases/improvement areas. For each improvement area, the developer is also constructing, without reimbursement from the PID, other improvements that meet PID-eligiblity under state law. The ratio of total PID-eligible improvement costs to reimbursement amount for Improvement Area Nos. 1 and 2 is greater than 3 to 1. This M&C and the attached SAP are intended to serve as the SAP update and annual budget for fiscal year 2022. The fiscal year 2022 budget, as summarized in the table below, will be funded by special assessments collected on property within Improvement Area No. 1 of the PID. Revenues Amount Annual Installment Income $454,748.52 Available Administrative Funds IF$10,840.00 I Total Revenues $465,588.52 Expenditures Amount Contractual Expenses (partial capital reimbursement to developer) $418,678.61 Administrative Expenses $46,909.91 Total Expenditures $465,588.52 The fiscal year 2022 budget, as summarized in the table below, will be funded by special assessments collected on property within Improvement Area No. 2 of the PID. Revenues Amount Annual Installment Income $402,212.49 Total Revenues $402,212.49 Expenditures Amount Contractual Expenses (partial capital reimbursement to developer) $346,686.39 Administrative Expenses $55,526.10 Total Expenditures $402,212.49 Walsh Ranch/Quail Valley PID is located in COUNCIL DISTRICT 3. 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 Fiscal Year 2022 Budget by the City Council, funds will be available in the Fiscal Year 2022 operating budget, as appropriated, in the FWPID #16 - Quail Valley Fund. Prior to an expenditure being incurred, the Financial Management Services Department has the responsibility to validate the availability of funds. Submitted for City Manager's Office by. Jay Chapa 5804 Originating Business Unit Head: Reginald Zeno 8517 Additional Information Contact: Anthony Rousseau 8338 Expedited