HomeMy WebLinkAboutOrdinance 25711-09-2022 ORDINANCE NO. 25711-09-2022
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE FISCAL YEAR 2022-2023 FORT WORTH PUBLIC
IMPROVEMENT DISTRICT 1—DOWNTOWN FUND IN THE AMOUNT OF
$3,384,475.00,OF WHICH $3,343,228.00 IS FROM AVAILABLE FUNDS, AND
$41,247.00 IS FROM AVAILABLE UNRESERVED FUND BALANCE, FOR THE
PURPOSE OF PROVIDING IMPROVEMENTS AND SERVICES TO THE PUBLIC
IMPROVEMENT DISTRICT 1-DOWNTOWN; 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 THE 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 2022-2023 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Fiscal
Year 2022-2023 Fort Worth Public Improvement District 1—Downtown Fund in the amount of$3,384,475.00,
of which $3,343,228.00 is from available funds, and $41,247.00 is from available unreserved funds, for the
purpose providing improvements and services to the Public Improvement District 1-Downtown during Fiscal
Year 2022-2023.
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 remaining provisions shall
be and remain in full force and effect.
SECTION 3.
That this ordinance shall be incorporated into the ordinance effecting the budget of the municipal government
of the City of Fort Worth for the ensuing Fiscal Year beginning October 1,2022, and ending September 30,
2023, 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instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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.
APPROVEDLAS TO FORM AND LEGALITY: /�/CITY
� SECRETARY
Nico Arias(Sep 19,2022 08:21 CDT) Jannette S.Goodall(Sep 19,2022 08:29 CD
Assistant City Attorney Jannette S. Goodall
City Secretary o� F�R�
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ADOPTED AND EFFECTIVE: September 13,2022
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City of Fort Worth,Texas
Mayor and Council Communication
DATE: 09/13/22 M&C FILE NUMBER: M&C 22-0670
LOG NAME: 17ED PID01 FY23
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 2022-2023 Budget,Five-Year Service Plan,Assessment Plan,and Tax Year 2022 Assessment Roll,and(2)Levying
Special Assessments for the 2022 Tax Year at a Rate of$0.13 Per Each$100.00 of Property Value;Authorize Execution of an Agreement with
Downtown Fort Worth, Inc., in the Amount of$502,750.00 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 2022 tax year;
2. Adopt the attached ordinance(1)approving and adopting the fiscal year 2022-2023 budget in the amount of$3,384,475.00,five-year
service plan,assessment plan,and tax year 2022 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 2022 tax year at a rate of$0.13 per each$100.00 of
property value(Service and Assessment Plan and Assessment Ordinance);
3. Direct the City Secretary to record a copy of the Service and Assessment Plan 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$502,750.00 to provide management of the
improvements and services for the Downtown PID during fiscal year 2022-2023;
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$3,384,475.00,of which(1)$3,343,228.00 is from available funds and(2)$41,247.00 is from available
unreserved fund balance.
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 2022-2023 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 2022 tax year. Following the
public hearing,it is recommended that the City Council take the following actions: (1)adopt the attached ordinances 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 fiscal year 2023 and the costs thereof are as follows:
Fiscal Year 2023 Budget
Improvements Total Budgeted Cost
Management Fee $502,750.00
Utilities $11,500.00
Landscaping $115,000.00
Maintenance&Operations $ 1,260,110.00
Tree Lights $ 100,000.00
Security $ 10,700.00
Ambassador Program $685,000.00
Newsletter $ 12,500.00
Marketing&Research $417,200.00
Transportation&Planning $200,350.00
City Audit IL $2,500.00
City Administrative Fee $66,865.00
Total Expense u $3,384,475.00�1
The total budgeted costs of the improvements and services are$3,384,475.00. Of this amount,$2,741,826.00 will be funded by assessments
collected on privately-owned parcels located in the Downtown PID by applying a rate of$0.13.The remainder of the costs in the amount of
$642,649.00 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)$156,007.00 in direct payments from the City for Payment
In-Lieu of Services,(c)$150,000.00 in revenues generated by Downtown PID activities,and(d)$41,247.00 transferred from the unaudited,
unassigned fund balance.
For Fiscal Year 2021-2022(tax year 2021)the Downtown PID levied an assessment of$0.115 per$100.00 of property value.The PID estimated
net taxable value declined $69,641,241.00,or 3.04%,requiring the assessment rate to be increased by$0.015 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 decreased
commercial property values and 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 assumes a collection rate of 95%,to more accurately
reflect the estimated revenues after the final impact of protested properties with the PID. This change effectively reduces projected revenues to
accommodate for the levy variances due to protests at the appraisal district. City staff and Downtown Fort Worth Inc.,will continue to monitor
property values and the associated fund balance annually to ensure that the Downtown PID is in compliance with reserve leveles over the duration
of the five-year service plan term. Therefore,the recommended Fiscal Year 2022-2023(tax year 2022)assessment rate is$0.13 per$100.00 of
taxable property value.
STAFF NOTE:Although the Downtown PID Advisory Board was organized as a statutory(or formal)advisory board when the Downtown PID was
re-established in 2009,City staff recently reviewed the composition of board and determined that it no longer met the requirements to remain as
such. The Downtown PID Advisory Board has been informed of this fact and that it is to operate as an informal advisory board pursuant to the
City's PID Policy.
On August 23,2022,the City Council conducted a public hearing to receive comments on the proposed 2022-2023 Fiscal Year budget,five-year
service plan,and 2022 assessments for the Downtown PID. Notice of the August 23,2022, 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 12,2022 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 2022-2023 Budget by the
City Council,funds will be available in the Fiscal Year 2023 operating budget,as appropriated,of the FWPID#1 -Downtown Fund. Prior to any
expenditure being incurred,the Economic Development Department has the responsibility to validate the availability of funds.
Submitted for City Manager's Office by: William Johnson 5806
Originating Business Unit Head: Robert Stums 2663
Additional Information Contact: Crystal Hinojosa 7808
Expedited