HomeMy WebLinkAbout(0021) M&C 20-0274City of Fort Worth,
Mayor and
DATE: 05/05/20
Texas
Council Communication
LOG NAME: 13PID12 MIDYEARFY20
SUBJECT
M&C FILE NUMBER: M&C 20-0274
Adopt Resolution Amending the Fiscal Year 2019-2020 Budget and Five -Year Service Plan for Fort Worth Public Improvement District 12 —
Chapel Hill, Authorize an Amendment to City Secretary Contract No. 52904, a Management Services Agreement for Public Improvement District
12 - Chapel Hill, and Adopt Appropriation Ordinance (COUNCIL DISTRICT 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
12 — Chapel Hill to reflect amendments associated with a mid -year review;
2. Authorize an amendment to City Secretary Contract No. 52904, a Management and Improvement Services Agreement for Public Improvement
District 12 - Chapel Hill, to increase the Management Fee by $2,672.00; and
3. Adopt the attached appropriation ordinance increasing receipts and appropriations in the Fort Worth Public Improvement District 12 — Chapel
Hill Fund in the amount of $19,184.00, from available, unreserved fund balance.
DISCUSSION:
The City of Fort Worth Department of Financial Management Services (Finance) 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, has conducted mid -year reviews of the Fiscal Year 2019-2020 Budget (Budget) for the Public Improvement District 12 -
Chapel Hill (Chapel Hill PID) and recommend the following adjustments.
The City contracts with FirstService Residential Texas PID, LLC (FirstService) to manage the Chapel Hill PID. FirstService has identified the need
to increase the Chapel Hill PID Budget by $19,184.00 to cover expenses associated with the management fee, landscaping/irrigation, and audit
line items in the Budget and Five -Year Service Plan. The expenses include additional costs associated with increases in insurance and contract
fees.
Revenue Adjustments:
Line Items
Previously
Recommended
Amended
to be
Approved FY20
Mid -Year
FY20 Budget
Adjusted
Budget Item
Adjustment
Item
PID
Assessments
$69,361.00
-
$69,361.00
Use of Fund
Balance
_
$19,184.00
$19,184.00
Total
Budget
$69,361.00
$19,184.00
$88,545.00
Revenue
Expenditure Adjustments:
Line Items Previously Recommended Amended
to be Approved FY20 Mid -Year FY20 Budget
Adjusted Budget Item Adjustment Item
Management $11,200.00 $2,672.00 $13,872.00
fee
Landscaping 11 $13,941.0011 $8,452.00I'J $22,393.00
Line Items
Previously
Recommended
Amended
to be
Approved FY20
Mid -Year
FY20 Budget
Adjusted
Budget Item
Adjustment
$2,000.00
Item
$2,000.00
Landscaping
Enhancement
Pond
Maintenance
$2,340.00
$60.00
$2,400.00
Audit
1 $ 1, 600.001
$1,500.0011
$2,500.00
Irrigation
Repairs
$500.00
$4,500.00
$5,000.00
Totals
$28,981.00
1 $19,184.00�1
$48,165.00
Staff recommends an increase of $2,672.00 in the management fee line item of the current Budget and Five -Year Service Plan. The management
fee line item includes any and all insurance and administrative costs incurred by the FirstService to perform its duties and responsibilities under
the contract. 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
$88,545.00. This mid -year budget adjustment will decrease the unaudited, unassigned fund balance by a total of $19,184.00. 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. 52904).
FirstService took over managing the Chapel Hill PID in fiscal year 2019-2020 and identified the need for necessary unbudgeted
expenditures. The proposed changes to the Chapel Hill PID Budget are recommended to address drainage issues and other necessary
expenditures. The Chapel Hill PID is expected to end the year with a fund balance of $6,957.77. The estimated reserve requirement is
$9,965.65. The Finance Department along with FirstService Residential agree that the mid -year budget adjustment reflect necessary
expenditures and will work together to ensure that reserves are compliant in the FY21 budget process.
The Chapel Hill PID is located in COUNCIL DISTRICT 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 #12-Chapel Hill 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