HomeMy WebLinkAboutOrdinance 25075-09-2021 ORDINANCE NO.25075-09-2021
AN ORDINANCE APPROVING AND ADOPTING THE FISCAL YEAR 2021-2022
BUDGET,FIVE-YEAR SERVICE PLAN,ASSESSMENT PLAN,AND TAX YEAR 2021
ASSESSMENT ROLL (TO BE KEPT ON FILE WITH THE CITY SECRETARY) FOR
PUBLIC IMPROVEMENT DISTRICT NO. 1 — DOWNTOWN; LEVYING
ASSESSMENTS FOR THE COST OF CERTAIN IMPROVEMENTS AND SERVICES
PROVIDED IN FORT WORTH PUBLIC IMPROVEMENT DISTRICT NO. 1 DURING
FISCAL YEAR 2021-2022; SETTING CHARGES AND LIENS AGAINST PROPERTY
IN THE DISTRICT AND AGAINST THE OWNERS THEREOF; PROVIDING FOR
THE COLLECTION OF SUCH ASSESSMENTS; RESERVING UNTO THE CITY
COUNCIL THE RIGHT TO ALLOW CREDITS REDUCING THE AMOUNT OF THE
RESPECTIVE ASSESSMENT TO THE EXTENT OF ANY CREDIT GRANTED; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Public Improvement District Assessment Act, Chapter 372 of the Texas Local
Government Code("Act"), allows for the creation of public improvement districts;
WHEREAS, on June 23, 2009,the City Council of the City of Fort Worth("City Council")authorized
the re-establishment of Public Improvement District No. 1 —Downtown ("District"), as a public improvement
district in accordance with the Act and Resolution No. 3756-06-2009, a map of which is attached hereto as
Exhibit A and incorporated herein for all purposes;
WHEREAS, Section 372.013 of the Act, as recently amended by the 87' Texas Legislature through
House Bill No. 1543 (effective September 1, 2021), requires the City Council to annually review and adopt an
ordinance approving the Service Plan ("Service Plan")for the District;
WHEREAS, Sections 372.013 and 372.014 of the Act require the annual Service Plan to (i) cover a
period of at least five years; (ii) define the annual indebtedness and the projected costs for improvements; (iii)
include an Assessment Plan("Assessment Plan");and(iv)include a copy of the notice form required by Section
5.014 of the Texas Property Code (the Service Plan and Assessment Plan are collectively referred to herein as
the"Service and Assessment Plan");
WHEREAS, City Council must review the proposed fiscal year 2021-2022 Service Plan and hold a
public hearing to receive comments and pass on any objections to the 2021 Assessment Plan raised by any owner
of property located within the District and, at the conclusion of the hearing, levy an assessment for the purpose
of providing supplemental services and improvements for the District;
WHEREAS,the Service and Assessment Plan is attached hereto as Exhibit B and incorporated herein
for all purposes;
WHEREAS, City Council desires to approve and adopt the 2021 Assessment Roll that was filed with
the City Secretary and subject to public inspection in the City's official records prior to the public hearing
("Assessment Roll");
WHEREAS, the Service and Assessment Plan and Assessment Roll were previously presented in a
public hearing conducted by the City Council on September 14, 2021 (M&C 21-0629);
WHEREAS,the Service and Assessment Plan and Assessment Roll were once again presented to the
City Council in a public hearing conducted on the 21 st day of September, 2021, at 7:00 p.m. in the Council
Ordinance No.
Page 1 of 9
Chamber in the City Hall in the City of Fort Worth, Texas ("Public Hearing"), notice of which was published
and mailed to all record owners of property in the District, and at such hearing all desiring to be heard were
given a full and fair opportunity to be heard; and
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH,TEXAS THAT:
SECTION 1.
The Public Hearing is hereby closed and any and all protests and objections,whether herein enumerated
or not,are hereby overruled. The Recitals and findings listed above are true and correct and form the basis upon
which this Ordinance is being adopted and are incorporated herein by reference.
SECTION 2.
The City Council hereby approves and adopts the Service and Assessment Plan and Assessment Roll
(to be kept on file with the City Secretary). In doing so,the City Council finds that the supplemental services
and improvements set forth in the Service Plan are feasible and advisable and will serve the needs and desires
of the property owners in the District.
SECTION 3.
The City Council,from all evidence before it, including all information provided to it and considered in
the Public Hearing,finds that the assessments herein described should be made and levied against the respective
parcels of privately-owned property in the District and against the owners of such property and that a
corresponding payment in lieu of assessment should be made for City-owned property. Such assessments and
charges are right,proper, and substantially in proportion to the benefits of the respective parcels of property by
means of the improvements and services in the District for which such assessments are levied and establish
substantial justice,equality,and uniformity between all parties concerned,considering the benefits received and
burdens imposed.The City Council further finds that in each case the property assessed is specially benefited in
enhanced value to the said property by means of the Improvements in the District and for which assessment is
levied and charge made,and further finds that the apportionment of the cost of the Improvements is in accordance
with applicable law. The City Council,from the evidence,further finds that the values of the respective parcels
of property on January 1,2021, are true and correct reflections of the information contained in the records of the
relevant appraisal district.
SECTION 4.
There is hereby levied and assessed against the parcels of privately-owned property in the District,and
against the real and true owners thereof(whether such owners be correctly named herein or not), the sums of
money itemized per parcel of property,and the owners thereof,as far as such owners are known,at the following
rate and method of payment: $0.115 per each $100 of value for property subject to assessment. As it concerns
any City-owned property within the District, the City will contribute a payment-in-lieu-of-assessment that is
based on the same rate as the privately-owned property in the District.
SECTION 5.
Where more than one person or entity owns an interest in any property described herein, each such
person or entity will be personally liable only for its, his, or her pro rats share of the total assessment against
such property in proportion to its, his, or her respective interest to the total ownership of such property, and its,
Ordinance No.25075-09-2021
Page 2 of 9
his, or her respective interest in such property may be released from the assessment lien upon payment of a
proportionate sum.
SECTION 6.
The several sums above mentioned and assessed against the said parcels of property, and owners
thereof, and penalty and interest thereon at the rate prescribed by Chapter 372, Texas Local Government Code
("Public Improvement District Assessment Act"),together with reasonable attorney's fees and cost of collection,
if incurred,are hereby declared to be and are made a lien upon the respective parcels of privately-owned property
against which the same are assessed,and a personal liability and charge against the real and true owners of such
property, whether such owners be correctly named herein or not, and such liens shall be and constitute the first
enforceable lien and claim against the property on which such assessments are levied, and will be a first and
paramount lien thereon, superior to all other liens and claims, except state, county, school district and city ad
valorem taxes.A copy of this ordinance will be filed with the County Clerk of Tarrant County,Texas,and when
so filed constitutes complete and adequate legal notice to the public concerning the liens hereby assessed against
the respective parcels of property and the owners thereof.
The sums so assessed against the respective parcels of property and the owners thereof become due and
payable on or before January 31, 2022, and become delinquent if not paid by February 1, 2022. The entire
amount assessed against each parcel of property bears penalty and interest, from and after February 1, 2022 at
the same rate as prescribed by law for any delinquent ad valorem tax until paid.
SECTION 7.
If default is made in the payment of any assessments,collection thereof will be enforced by suit in any
court of competent jurisdiction,and said City may exercise all of its lawful powers to aid in the enforcement and
collection of said assessments.
SECTION 8.
The total amount assessed against the respective parcels of property, and the owners thereof, is in
accordance with the proceedings of the City hereto and is less than the proportion of the cost allowed and
permitted by applicable law.
SECTION 9.
Although the aforementioned charges have been fixed, levied, and assessed in the respective amounts
herein stated,the City Council hereby reserves the right to reduce the aforementioned assessments by allowing
credits to certain property owners where deemed appropriate and provided that any such allowance does not
result in any inequity or unjust discrimination.
SECTION 10.
Full power to make and levy reassessments and to correct mistakes,errors, invalidities or irregularities
in the assessments are, in accordance with the law in force in this City,vested in the City.
SECTION 11.
In any suit upon any assessment or reassessment, it will be sufficient to allege the substance of the
provision recited in this ordinance and that such recitals are in fact true, and further allegations with reference
Ordinance No.25075-09-2021
Page 3 of 9
to the proceedings relating to such assessment and reassessment shall not be necessary.
SECTION 12.
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 shall remain in full force
and effect.
SECTION 13.
This Ordinance is cumulative of 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 14.
The City Secretary is directed to cause a copy of this Ordinance to be recorded in the real property
records of Tarrant County,Texas no later than the seventh(7')day after the adopted date of this Ordinance.
SECTION 15.
This Ordinance takes effect and will be in full force and effect from and after the date of its passage.
AND IT IS SO ORDAINED.
APPROVED AS TO FORM ATTEST:
AND LEGALITY:
6?
AU /., r"
Tyler F. Wall ,As ' tant City Attorney onald P. Gonzales,Acti ity Secretary
M&C: 21-0700 F�Rr
Adopted and Effective: September 21, 2021
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Ordinance No.25075-09-2021
Page 4 of 9
EXHIBIT A
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Ordinance No.25075-09-2021
Page 5 of 9
EXHIBIT B
SERVICE AND ASSESSMENT PLAN
SERVICE PLAN
FO D City of Fort Worth
i� Five Year Service Plan FY 21-22-FY25.26
Public Improvement District No.1-Fort Worth
FIVE YEAR SERVICE PLAN
FY2122 FY22/23 FY23/24 FY24/25 FY25126
REVENUES
PID Assessments' $2,554,208 $ 2,685,660 $2,775.630 $2,831,143 $2,887,766
COFW Assessment 295,395 295,395 295,395 295,395 295,395
COFW Payment in lieu of Services 161,755 165,000 168,300 171,666 175,099
PID Generated Revenue 153,772 155,000 155,000 155,000 155,000
Total Budgeted Revenues $3,165,130 $ 3,295,780 $3,389,050 $3,447,929 $3,507,985
Use of Fund Balance 60528 - - - -
Total Revenues $3,225,65E $ 3,295,780 $3,389,050 $3,447,929 $3,507,985
EXPENSES
Management Fee S 464,650 $ 465,000 $ 465,000 $ 470,000 $ 475,000
Utilities 11,500 12,D00 13;000 14,000 15,000
Landscaping 90,000 90,000 90,000 100,000 125,000
Maintenance&Operations 1,257,805 1,260,000 1,235,000 1,250.404 1,231,404
Tree Lights 40,13M 20,000 30,000 20,W0 45,000
Security 10,700 10,700 11,981 12,220 12,220
Ambassador Program 685,OD0 690,000 695,000 700,000 724,200
Newsletter 12,500 12,500 12,500 12,500 12,5W
Marketing&Research 401,200 405,000 410,D00 415,000 445,253
Transportation&Planning 186,500 190,D0O 165,000 168,300 171,W6
City Audit 2,500 2,500 2,500 2,500 2,500
City Administrative Fee 63,303 65,916 67,781 68,959 70,160
Total Budgeted Expenses $3,225,658 $ 3,223,616 $3,197,762 $3,233,883 $3,329,903
Contribution to Fund Balance $ - $ 72,164 $ 191,288 $ 214,046 S 178,082
Total Expense $3,225,658 $ 3,295,780 S 3,389,050 S 3,"7,929 S 3,507,985
Net Change in Fund Balance $ (50,528) $ 72,164 $ 191,288 $ 214,046 $ 178,082
Fund Balance,Beginning of Year(Estimated Yrs 2-5) 345,622 285,094 357,258 548,546 762,592
Estimated Fund Balance,End of Year 285,094 357,258 648,546 762,592 940,674
Reserve Requirement 537,377 533,067 539,088 555,095 555,096
Over(Under)Reserve $ (252,283) $ (175,809) $ 9,458 $ 207,497 $ 385,579
•FY2022 Assessment Rate o$.115
Ordinance No.25075-09-2021
Page 6 of 9
Fiscal Year 2021-2022 Budget
The total budgeted costs of the improvements and services for the District for fiscal year 2021-2022 are
$3,225,658.00. Of this amount, $2,554,208.00 will be funded by assessments collected on privately-owned
parcels located in the District. The remainder of the costs will be funded by other revenue sources, including:
• $295,395.00 in direct payments from the City in accordance with Section 372.014(b)of the Texas Local
Government Code, which amount will be a payment in lieu of assessments and will be appropriated
from the General Fund balance by City Council action on September 21, 2021. This amount is arrived
at by multiplying the appraised value of City property within the District by the overall assessment rate
of$0.115 per$100 of value as of January 1, 2021;
• $161,755.00 in direct payments from the City for payment in lieu of services,which will be appropriated
from the General Fund balance by City Council action on September 21, 2021;
• $153,772.00 in revenues generated by District activities; and
• $60,528.00 transferred from the unaudited, unassigned fund balance.
Ordinance No.25075-09-2021
Page 7 of 9
ASSESSMENT PLAN
The cost of each improvement and service provided during a fiscal year will be assessed against real
property within the District benefitting from such improvement or service based on the value of such property,
including the value of structures and other improvements on the property as determined by the applicable
appraisal district. No annual assessment during the term of the District will exceed $.14 per$100 of appraised
value of real property and improvements, unless otherwise approved by law.
The City will levy and assess against the parcels of privately-owned property in the District,and against
the real and true owners thereof,the sums of money itemized per parcel of property, and the owners thereof, as
far as such owners are known, at the following rate and method of payment: $0.115 per each $100 of value for
property subject to assessment. As it concerns any City-owned property within the District, the City will
contribute a payment-in-lieu-of-assessment that is based on the same rate as the privately-owned property in the
District. The current names and addresses of the properties that are subject to assessment, along with the
ordinance levying such assessments, are on file with the City Secretary of the City of Fort Worth. Payment of
assessments by other exempt jurisdictions must be established by contract.
Ordinance No. 25075-09-2021
Page 8 of 9
NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT
TO THE CITY OF FORT WORTH,TEXAS
CONCERNING THE FOLLOWING PROPERTY
(insert property address)
As the purchaser of the real property described above,you are obligated to pay assessments to the City
of Fort Worth, Texas, for the costs of a portion of a public improvement or services project (the "Authorized
Improvements") undertaken for the benefit of the property within Fort Worth Public Improvement District No.
1 - Downtown (the "District") created under Subchapter A, Chapter 372, Local Government Code.
AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED
IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT
PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY
FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS,
ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS.
The exact amount of the assessment may be obtained from the City Secretary of the City of Fort Worth,
Texas. The exact amount of each annual installment will be approved each year by the City Council of the City
of Fort Worth, Texas, in the annual service plan update for the District. More information about the assessments,
including the amounts and due dates, may be obtained from the City Secretary of the City of Fort Worth, Texas.
Your failure to pay any assessment or any annual installment may result in penalties and interest being
added to what you owe or in a lien on and the foreclosure of your property.
The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding
contract for the purchase of the real property at the address described above.
Date:
Signature of Purchaser
Ordinance No.25075-09-2021
Page 9 of 9
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 09/21/21 M&C FILE NUMBER: M&C 21-0700
LOG NAME: 17ED PID01 FY22
SUBJECT
(CD 9)Conduct Public Benefit Hearing for Fort Worth Public Improvement District 1 —Downtown;Adopt the Attached Ordinance(1)Approving
and Adopting the Fiscal Year 2021-2022 Budget,Five-Year Service Plan,Assessment Plan,and Tax Year 2021 Assessment Roll,and(2)Levying
Special Assessments for the 2021 Tax Year at a Rate of$0.115 Per Each$100.00 of Property Value;Authorize Execution of an Agreement with
Downtown Fort Worth, Inc., in the Amount of$464,650.00 to Manage the Public Improvement District; 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 a public benefit hearing concerning the proposed special assessments on the property located in Fort Worth Public Improvement
District 1 -Downtown(Downtown PID)for the 2021 tax year;
2. Adopt the attached ordinance(1)approving and adopting the fiscal year 2021-2022 budget in the amount of$3,225,658.00,five-year
service plan,assessment plan,and tax year 2021 assessment roll(on file with the City Secretary)for the Downtown PID;and(2)levying
special assessments on privately-owned property located in the Downtown PID for the 2021 tax year at a rate of$0.115 per each$100.00 of
property value(SAP and Assessment Ordinance);
3. Direct the City Secretary to record a copy of the SAP and Assessment Ordinance in the real property records of Tarrant County,Texas no
later than the seventh(7th)day after adoption by the City Council;
4. Authorize the execution of an agreement with Downtown Fort Worth,Inc.in the amount of$464,650.00 to provide management of the
improvements and services for the Downtown PID during fiscal year 2021-2022;
5. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Fort Worth Public Improvement District
1 -Downtown Fund in the amount of$3,225,658.00,of which(1)$3,165,130.00 is from available funds;and(2)$60,528.00 is from reducing
the fund balance by the same amount.
DISCUSSION:
On June 23,2009,the Mayor and City Council adopted Resolution No.3756-06-2009 re-establishing Fort Worth Public Improvement District 1 -
Downtown(Downtown PID)
The purpose of this benefit hearing is to receive comments from the public regarding the Fiscal Year 2021-2022 budget and five-year service plan
for the Downtown PID and the proposed assessments to be levied on each property in the Downtown PID for the 2021 tax year. Following the
public hearing,it is recommended that the City Council take the following actions: adopt the attached ordinances(1)approving and adopting the
budget,five-year service plan,assessment plan,and assessment roll;(2)levying the proposed assessments;and(3)appropriating funds.
The improvements and services to be provided in the Downtown PID during the Fiscal Year 2022 and the costs thereof are as follows:
Fiscal Year 2022 Budget
Improvements Total Budgeted Cost
Management Fee $464,650.00
Utilities $11,500.00
Landscaping $90,000.00
Maintenance&Operations $ 1,257,805.00
Tree Lights $40,000.00
Security �— $ 10,700.00
Ambassador Program $685,000.00
Newsletter $ 12,500.00
Marketing&Research $401,200.00
Transportation&Planning $186,500.00
City Audit $2,500.00
City Administrative Fe:e:::=l $63,303.00
Total Expense $3,225,658.00��
The total budgeted costs of the improvements and services are$3,225,658.00. Of this amount,$2,554,208.00 will be funded by assessments
collected on privately-owned parcels located in the Downtown PID by applying a rate of$0.115.The remainder of the costs in the amount of
$610,922.00 will be funded by other revenue sources including:(a)$295,395.00 in direct payments from the City for Payment In-Lieu of
Assessments,which are calculated at the same rate as the privately-owned parcels,(b)$161,755.00 in direct payments from the City for Payment
In-Lieu of Services,(c)$153,772.00 in revenues generated by Downtown PID activities,and(d)$60,528.00 transferred from the unaudited,
unassigned fund balance.
For Fiscal Year 2020-2021 (tax year 2020)the Downtown PID levied an assessment of$0.105 per$100.00 of property value.The PID net taxable
value declined$211,936.00,or 8.10%,requiring the assessment rate to be increased by$0.01 to maintain current levels of service.The
Downtown PID has also experienced a shortfall in projected budgeted revenue during the past five-years due primarily to the number of properties
still under protest at the Appraisal Review Board(ARB)when budgets were approved.This has caused the Downtown PID's reserve levels to fall
below the City's targets. City staff has included an assumed collection rate of 3%in the levy calculation to more accurately estimate projected
revenues. This change effectively reduces projected revenues to accommodate for the levy variances due to protests at the appraisal district.
Therefore,the recommended Fiscal Year 2021-2022(tax year 2021)assessment rate is$0.115 per$100.00 of taxable property value.
On September 14,2021,the City Council conducted a public hearing to receive comments on the proposed 2021-2022 Fiscal Year budget,five-
year service plan,and 2021 assessments for the Downtown PID. Notice of the September 14,2021,benefit hearing and this hearing were
published in the Fort Worth Star-Telegram and mailed to all owners of property on record in the Downtown PID on August 27th,2021 in
accordance with state law.The Downtown PID advisory board recommended approval of the budget.
The Downtown PID is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and the adoption of the Fiscal Year 2021-2022 Budget by the
City Council,funds will be available in the Fiscal Year 2022 operating budget,as appropriated,of the FWPID#1 -Downtown 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: Jay Chapa 5804
Originating Business Unit Head: Robert Stums 2663
Additional Information Contact: Crystal Hinojosa 7808
Expedited