HomeMy WebLinkAbout(0110) M&C 21-0707City of Fort Worth,
Mayor and
DATE: 09/21 /21
Texas
Council Communication
LOG NAME: 17ED PID18FY22
SUBJECT
M&C FILE NUMBER: M&C 21-0707
(ALL) Conduct Public Benefit Hearing for the Fort Worth Public Improvement District No. 18 - Tourism; Adopt Attached Ordinance (1) Approving
and Adopting the Fiscal Year 2021-2022 Budget, Six -Year Service Plan, Assessment Plan, and Assessment Roll, and (2) Levying Special
Assessments for Fiscal Year 2021-2022; 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 property located in the Fort Worth Public Improvement
District 18 - Tourism (Tourism PID) for Fiscal Year 2021-2022;
2. Adopt the attached ordinance: (1) approving and adopting the fiscal year 2021-2022 budget in the amount of $3,950,000.00, six -year
service plan, assessment plan, and assessment roll (on file with the City Secretary) for the Tourism PID; and (2) levying special assessments
on property located within the Tourism PID (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 the county in which the
properties are located no later than the seventh (7th) day after adoption by the City Council;
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Fort Worth Public Improvement District
18 - Tourism Fund for Fiscal Year 2021-2022 in the amount of $3,950,000.00, from available funds.
DISCUSSION:
On August 29, 2017, the Mayor and City Council adopted Resolution No. 4837-08-2017, establishing the Fort Worth Public Improvement District
No. 18, Tourism (Tourism PID). The City Council subsequently approved the expansion of the Tourism PID to include additional hotels on August
18, 2020 (Resolution No. 5264-08-2020), April 13, 2021 (Resolution No. 5382-04-2021), and September 14, 2021 (M&C 17ED
PID18EXPANDTPID).
he purpose of this benefit hearing is to receive comments from the public regarding the Fiscal Year 2021-2022 budget and six -year service plan
for the Tourism PID and the proposed assessments to be levied on each property in the Tourism PID for the 2021-2022 fiscal 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, six -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 Tourism PID during Fiscal Year 2022 and the associated costs thereof are as follows:
Fiscal Year 2022 Budget
Improvements
Total Budgeted
Costs
Incentive & Sales Efforts
$1,850,125.00
Marketing and Research (Promotion/Advertising)
$1,363,250.00
Site Visits & Familiarization Tours
$194,750.00
Cultural Enhancements through Marketing and
promotion of the Arts
$292,125.00
Operations & Administration
$194,750.00
City Administrative Fee
$55,000.00
Total Expenses IF
$3,950,000.00
The total budgeted costs of the improvements and services are $3,950,000.00, all of which will be funded by the owners/operators of Tourism PID
hotels with 100 or more rooms paying a special assessment at a rate of two percent of revenues they receive from a hotel room. The
owners/operators may seek reimbursement in an amount equal to the special assessment from hotel guests, with such reimbursement being a
mandatory charge that is subject to state and local hotel tax.
Due to the recent recovery of hotel occupancy in the City of Fort Worth (City), City staff, the Fort Worth Tourism Public Improvement District
Corporation (FWTPIDC), and the Fort Worth Convention and Visitors Bureau (FWCVB) have projected an increase for next year's Tourism PID
assessment revenue of 41 %, or $1,150,000.00, over the Fiscal Year 2020-2021 updated budget. While this is significant growth over the previous
year, the amount is 13%, or $593,200.00, less than Fiscal Year 2018-2019 actual collections.
On September 14, 2021, the City Council conducted a public hearing to receive comments on the proposed Fiscal Year 2021-2022 budget, six -
year service plan, and 2021 assessments for the Tourism PID (M&C 17ED PID18FY22 BENEFIT). Notice of the September 14, 2021, benefit
hearing and this hearing were published in the Fort Worth Star -Telegram on August 27, 2021, and mailed to all hotel owners on record in the
Tourism PID on August 25, 2021, in accordance with state law.
In fiscal year 2018, the City entered into a contract with the FWTPIDC and the FWCVB to manage the operations of the Tourism PID. The term of
this agreement is commensurate with the term of the Tourism PID; thus, the FWTPIDC and the FWCVB will continue to manage the operations of
the Tourism PID for Fiscal Year 2021-2022.
The Tourism PID properties are located in ALL COUNCIL DISTRICTS.
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 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 #18 -Tourism 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 Sturns 2663
Additional Information Contact: Crystal Hinojosa 7808
Expedited