HomeMy WebLinkAboutOrdinance 20765-05-2013 Ordinance No. 20765-05-2013
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE CULTURE AND TOURISM FUND BY $550,000.00 AND
DECREASING THE ASSIGNED CULTURE AND TOURISM FUND BALANCE BY
THE SAME AMOUNT FOR THE PURPOSE OF FUNDING THE FORT WORTH
CONVENTION AND VISITORS BUREAU; PROVIDING FOR A SEVERABILITY
CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES;
REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
BE IT ORDAINED BY 'FHE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2012-2013 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
Culture and Tourism Fund in the amount of$550,000.00 and decreasing the assigned Culture and Tourism
Fund balance by the same amount for the purpose of funding the Fort Worth Convention and Visitors
Bureau.
SECTION 2.
That 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 said rernauiing
provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 20411-09-2012 and 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of said prior ordinances and appropriations are hereby expressly repealed.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 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
Tyler W C
f,
ity Attorney
ADOPTED AND EFFECTIVE: May 21,201.3
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/21/2013 - Ordinance No. 20765-05-2013
DATE: Tuesday, May 21, 2013 REFERENCE NO.: C-26275
LOG NAME: 25CVBALLOCATION13
SUBJECT:
Adopt Supplemental Appropriation Ordinance Increasing Receipts and Appropriations in the Culture and
Tourism Fund in the Amount of$550,000.00 to Fund the Fort Worth Convention and Visitors Bureau (ALL
COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached supplemental appropriation ordinance
increasing estimated receipts and appropriations in the Culture and Tourism Fund in the amount of
$550,000.00 and decreasing the assigned Culture and Tourism Fund balance by the same amount to fund
the Fort Worth Convention and Visitors Bureau.
DISCUSSION:
The purpose of this Mayor and Council Communication is to increase the Fiscal Year 2013 appropriation
in the Culture and Tourism Fund in the amount of$550,000.00 for purposes of making an additional
payment to the Fort Worth Convention and Visitors Bureau (CVB) to restore marketing funding for Fiscal
Year 2013.
In October 2007, the City entered into City Secretary Contract No. 36003 (M&C C-22414), allocating Hotel
Occupancy Tax (HOT) revenues to the CVB for use in marketing the City as a destination for conventions,
equestrian events, motor coach tours, tourism, and other gatherings that would utilize City and private
meeting facilities, hotel rooms, and other tourism and business amenities.
The Agreement calls for a three percent annual increase over the previous fiscal year's budget, contingent
upon approval by the City Council "unless economic conditions warrant a renegotiation . . . of this
amount." In Fiscal Year 2011, due to the economic downturn, the CVB agreed to a 10 percent reduction in
funding. In Fiscal Year 2011, as HOT collections began to recover, a mid-year marketing allocation was
made to the CVB in the amount of$433,000.00. In Fiscal Year 2012, a supplemental appropriation in the
amount of$500,000.00 for marketing was approved based on HOT collections exceeding budget
projections.
During the last several years, the hotel inventory has increased. To address the increased inventory, the
CVB must continue to aggressively market Fort Worth as a premier destination in order to maximize use
of hotel rooms (which generate additional HOT revenues) as well as the City's investment in the
Convention Center and Will Rogers Memorial Center. The CVB has indicated that the increase of funds
for marketing activities that is proposed by this Mayor and Council Communication is critical to the
success of the CVB's marketing campaign.
Due to collections that exceeded budget in Fiscal Year 2012, Staff is recommending an additional
$550,000.00 to the current year CVB operating budget for marketing activities. The increased allocation is
contingent upon actual HOT collections, Public Events facility revenues, and receipts from the DFW
Logname: 25CVBALLOCATION 13 Page 1 of 2
Revenue Share meeting or exceeding the budget. Additionally, the expenses for the Culture and Tourism
Fund must meet the budget expectations. Variations to the revenue or expenses may create an
environment whereby subsequent Fiscal Year 2013 payments to the CVB may be reduced.
This program serves the entire City.
FISCAL_ INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that upon adoption of the attached supplemental
appropriation ordinance, funds will be available in the current operating budget, as appropriated, of the
Culture and Tourism Fund. Upon approval, the assigned fund balance of the Culture and Tourism Fund
will exceed the minimum reserve as outlined in the Financial Management Policy Statements.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
GG04 539120 0241000 $550,000.00 GG04 539120 0241000 $550,000.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Kirk Slaughter (2501)
Additional Information Contact: Betty Tanner (2502)
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