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HomeMy WebLinkAboutIR 10657 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10657 To the Mayor and Members of the City Council September 14, 2021 DJA� 4 Page 1 of 3 KW3SUBJECT: UPDATE ON FISCAL YEAR 2022 PROPOSED BUDGETS FOR OPERATING PIDS AND TOURISM PID 1875 This Informal Report provides an update to the Mayor and City Council on the proposed budget for operating and Tourism PIDs which are on the September 14 & 21, 2021 agenda for your consideration. Background Information A Public Improvement District is a defined geographical area established to provide specific types of improvements or maintenance which are financed by assessments against the property owners within the area. The City of Fort Worth Economic Development Department administers the City's Public Improvement Districts (PIDs) in accordance with Chapter 372 of the Texas Local Government Code. Economic Development has proactively worked with the PID managers and boards to review proposed FY2022 budget and assessment rates. Proposed Budget and Rate Below is a summary of the recommended FY2022 budget and assessment rate for each Operating/Tourism PID: PID Rates: PID FY21 Rate FY22 Proposed Rate (Decrease) PID 1 - Downtown 0.105 0.115 0.01 PID 6 - Park Glen 0.155 0.155 - Commercial 0.035 0.035 - PID 7 - Heritage 0.170 0.160 (0.01) Commerical 0.110 0.110 - PID 11 - Stockyards 0.120 0.120 - PID 12 - Chapel Hill 0.180 0.180 - PID 14 - Trinity Bluff 0.100 0.100 - PID 15 - Sun Valley 0.210 0.240 0.03 PID 19 - Historic Camp Bowie 0.100 0.100 - PID 20- East Lancaster _ 0.266 0.266 - PID 21- Las Vegas Trail - 0.100 - PID 18 - Tourism 2% of revenues received from hotel room ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10657 To the Mayor and Members of the City Council September 14, 2021 DJA� 4 Page 2 of 3 KW3SUBJECT: UPDATE ON FISCAL YEAR 2022 PROPOSED BUDGETS FOR OPERATING PIDS AND TOURISM PID 1875 PID 1 — Downtown is requesting an increase to its rate by $.01 due primarily to a decline in growth in net taxable value and a shortfall of budgeted revenues over a five-year period of time attributed to the amount of properties under protest with the Appraisal Review Board and pending disposition. PID 7— Heritage is decreasing their residential rate by$.01 due to growth in net taxable value equal to 4% and their projected fund balance over their financial reserves in the amount of$361 ,825.00. PID 15 — Sun Valley is requesting an increase to its rate by $.03 due primarily to an increase to its management fee line item as well as increased security patrols by FWPD off-duty officers and the installation of PTZ (pan/tilt surveillance) security cameras. All other PID rates remain the same as previous year. PID Revenue: FY21 BudgeteAl FY22 Estimated Percentage R Revenue Incrmease) Increase/Decrease PID 1- Downtown $ 2,616,166 $ 2,554,608 $ (61,558) -2.4% PID 6- Park Glen $ 1,614,679 $ 1,718,368 $ 103,689 6.4% PID 7- Heritage $ 1,802,016 $ 1,771,828 $ (30,188) -1.7% PID 11-Stockyards $ 193,097 $ 213,615 $ 20,518 10.6% PID 12-Chapel Hill $ 79,451 $ 92,877 $ 13,426 16.9% PID 14-Trinity Bluff $ 73,057 $ 81,048 $ 7,991 10.9% PID 15-Sun Valley $ 96,731 $ 128,314 $ 31,583 32.7% PID 18-Tourism $ 2,800,000 $ 3,950,000 $ 1,150,000 41.1% PID 19- Historic Camp Bowie $ 452,020 $ 446,156 $ (5,864) -1.3% PID 20- East Lancaster $ 256,457 $ 257,384 $ 927 0.4% PID 21- Las Vegas Trail 1 $ - $ 311,851 1 $ 311,851 1 N/A Petition to Expand TPID 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) a sufficient number of the record owners of the real property currently included and proposed to be included in the district have consented to be included in the district by signing the original petition to establish the district or by signing a petition or written consent to include property in the district (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 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10657 To the Mayor and Members of the City Council September 14, 2021 DJA� 4 Page 3 of 3 KW3SUBJECT: UPDATE ON FISCAL YEAR 2022 PROPOSED BUDGETS FOR OPERATING PIDS AND TOURISM PID 1875 within the Tourism PID as determined by the current appraisal roll of the appraisal district. 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 following hotel property to be included in the Tourism PID are: a. Sandman Signature Hotel, 810 Houston Street, Fort Worth, TX 76102 This results in an increase to 79.87\% of the appraised value of taxable real property liable for assessment, 67.29\% for the area of all taxable real property liable for assessment, and 64.29\% of record owners liable for assessment. Because the percentages are still above the 60.00\% threshold, the properties meet the second element. If you have any questions, please call Robert Sturns, Director of Economic Development Department at 817-392-2663. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS