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HomeMy WebLinkAboutOrdinance 26037-03-2023ORDINANCE NO. 26037-03-2023 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE CULTURE AND TOURISM FUND, IN THE AMOUNT OF $2,596,047.00 FROM ADDITIONAL ANTICIPATED COLLECTIONS IN THE HOTEL OCCUPANCY TAX 7% COLLECTIONS, AND INCREASING APPROPRIATIONS IN THE AMOUNT OF $573,467.00 FOR CONTRACTUAL PAYMENT TO VISIT FORT WORTH AND INCREASING THE CONTRIBUTION TO FUND BALANCE IN THE AMOUNT OF $2,022,580.00; 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 tho se 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 Culture and Tourism Fund, in the amount of $2,596,047 .00 from additional anticipated collections in the Hotel Occupancy Tax 7% collections, increasing appropriations in the amount of $573,467 .00 for contractual payment to Visit Fort Worth and increasing the contribution to fund balance in the amount of $2,022 ,58 0 .0 0 . 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 deci sion, 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 cumulative of Ordinance 25773-09-2022 and all other ordinances and appropriations amending the same except in tho se in stances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance sai d conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: Assistant City Attorney ADOPTED AND EFFECTNE: March 21, 2023 CITY SECRETARY Jannette S. Goodall City Secretary City of Fort Worth, Texas Mayor and Council Communication DATE: 03/21/23 LOG NAME: 25FY23BUDGETAMENDMENT SUBJECT M&C FILE NUMBER: M&C 23-0221 (ALL) Adopt Appropriation Ordinances Increasing Appropriations in Various Public Events Department Funds to Account for Increased Revenues and Amend the Fiscal Year 2023 Adopted Budget RECOMMENDATION: It is recommended that the City Coun c il: 1. Adopt the attached appropriation ordinan ce increasing estimated receipts and appropriations in the Culture & Tourism Fund Fiscal Year 2023 Operating Budget in the amount of $2,596,047.00 for additional anti c ipated collections in the Hotel Occupancy Tax 7% collections, increasing appropriations in the amount of $573,467 .00 for contractual payment to Visit Fort Worth resulting from additional anticipated Hotel Occupancy Tax revenue collections and increasing budgeted contributions to fund balance in the amount of $2,022 ,580 .00 for the net difference for an amended annual operating budget of $49 ,098 ,764.00 ; 2 . Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Culture & Tourism 2 % Hotel Fund Fis cal Year 2023 Operating Budget in the amount of $741,728 .00 for additional anticipated collections and in c reas ing budgeted contributions to fund balance by the same amount for an amended annu a l operating budget of $8 ,681,425 .00 ; 3 . Adopt the attached appropriation ordinance increasing estimated re ceipts and appropriations in the Culture & Tourism Project Finance Zone Fund 2023 Operating Budget in the amount of $1 ,162,938 .00 for additional anticipated collections and increasing budgeted contributions to fund balance by the same amount for an amended annual operating budget of $9 ,392,701 .00; 4 . Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Culture & Tourism Venue Operating Fund Fiscal Year 2023 Operating Budget in the amount of $1 ,876 ,617.00 for increased coll ections and increasing budgeted contributions to fund balance by the same amount for an amended annu a l operating budget of $7 ,831,857 .00 ; and 5. Amend Fiscal Year 2023 Adopted Budg ets . DISCUSSION: The purpose of this Mayor and Council Commun ication (M&C) is to adjust the Fiscal Year (FY) 2023 amended appropriations for various funds associated with the Publ ic Events Department (PED) to ta ke into account updated , higher projections for hotel o cc upancy ta x (HOT), which results in a new calculated base for payment to the Convention & Visitors Bureau (Visit Fort Worth), and higher than anticipated FY2023 venue ta x collections to date . Public Events has been collaborating with Financial Management Services , Treasury Division and working with Hunden Strategic Partners (HSP) and PFM Financial Advisors to update tax revenues . While the last two years have seen a significant recovery period from the pandemic in terms of both hotel rate and occupancy , future Hotel Occupancy Ta x growth is expected to normalize with increased inflation . With new future supply in the market, HSP updated the ta x fund revenues at the end of De cember and the Public Events Department is amending their FY2023 budgets in response to that anticipated growth . Culture & Tourism Fund (Recommendation 1) The action in th is M&C will amend the Fiscal Year 2023 Adopted Budget as approved in connection w ith Ordinan ce 25773-09-2022 , Section 2 . Special Revenue Funds , as listed on page 7 . Fund / Department Budget Category Culture and Tou ri sm Fund Revenues Hotel Occupancy Taxes License and Permits Charges for Services Use of Money and Property Other M iscellaneous Revenue Recovery of Labor Costs Recovery of Supplies Recoverv of Utili ties FY2023 Adopted Budget Authority $27 ,863,939 .00 This M&C Rec# 1 $6 ,000 .00 $5 ,043 ,250 .00 $8,383 ,961 .00 $88,500.00 $642,611 .00 $1,196,000 .00 $215,000.00 Budget Adjustment $2 ,596 ,047 .00 Revised FY2023 Budget $30,459 ,986 .0( $6,000 .0C $5,043 ,250.0( $8,383 ,961.0( $88 ,500.0( $642,611 .0C $1 , 196,000.0C $215 ,000.0( Transfer from Genera l Fund (380 Agreement) $2 ,927,456 .00 $2,927,456.0( Use of Fund Balance M&C 22-0984 $136,000 .00 $136,000.0( Total Revenu es $46,3 66 ,71 7.00 $2,732,047.00 $49 ,098 , 76 4.0( Expenditures Culture and Tourism $42,431,499.00 M&C 22-0984 $136,000.00 $42 ,567,499.0( This M&C Rec# 1 $573,467.00 Transfer to General Fund $943 ,581 .00 $943,581.0( Transfer to Capita l Fund $500,000 .00 $500,000 .0( Transfer to Vehicle and Equipment Replancement Fund $179,155 .00 $179,155.0( Transfer to IT Refresh Capital $44 ,054.00 $44 ,054.0C T ransfer to Debt Fund $798,907.00 $798,907 .0( Contribution to Fund Balance/Net Pos ition $1,469 ,521.00 This M&C Rec # 1 $2 ,022,580 .00 $3,492, 101 .0( Total Ex penditures $4 6,366 ,7 17.0 0 $2,732 ,047 .00 $49 ,098 , 764.0( Cu ltu re a nd Tou rism 2% Hotel Fund (Reco m me ndat ion 2) The action in this M&C will amend the Fiscal Year 2023 Adopted Budget as approved in connection with Ordinance 25773-09-2022, Section 2. Specia l Reve nue Fun ds, as listed on page 8. Fund / Depart me nt FY202 3 Adopted Authority Budg et Ad just me nt Revised FY2023 Bu d get Category Budg et B udg et Culture and Tourism 2% Hotel Fund Revenues Hotel Occupancy Taxes $7 ,939,697.00 This M&C Rec# 2 $741,728.00 $8 ,681,425 .0( Total Reven ue s $7,93 9 ,697.00 $741,728.00 $8,68 1,425.0( Expend itures Transfer to Capital Fund $3,371,000.00 $3 ,371,000 .0( Transfer to Debt Fund $3,717,367.00 M&C 22-0984 -$2,740,617.00 $976,750 .0( Contribution to Fund Balance/Net Pos ition $851,330.00 M&C 22-0984 $2,740 ,617 .00 $4 ,333,675 .0( This M&C Rec# 2 $741,728.00 Total Expend it ures $7,939 ,6 97.0 0 $74 1,728 .0 0 $8,681 ,425.0( C ulture and Touri sm Project Fin a nce Zon e Fu nd (Reco m men dation 3) The action in this M&C will amend the Fiscal Year 2023 Adopted Budget as approved in connection with Ordinance 25773-09-2022 , Section 2. Special Revenue Funds , as listed on page 8-9 . Fund / Department FY2023 Adopted Au t hority Budget Ad j ust ment Revised FY2023 Budget Category Budg et Budg et Culture and Tourism Project Finance Zone Fund Revenues Intergovernmental Revenue $8,229,763.00 This M&C Rec 3 $1,162 ,938.00 $9,392,701.0C Total Revenues $8,229 ,763.00 $9 ,392 , 701.0( Expenditures Transfer to Debt Fund $6,571,554 .00 M&C 22-0984 $1,658 ,209.00 $8,229,763.0( Contribution to Fund Balance/Net Position $1,658 ,209.00 M&C 22-0984 -$1 ,658 ,209.00 $1, 162,938.0( This M&C Rec 3 $1 ,162,938.00 Total Expenditures $8,229 ,763 .00 $1 ,162,938 .00 $9 ,392 , 701 .0( Ve nue Operating Fu nd (Reco m mendation 4) T he action in this M&C will amend the Fisca l Year 2023 Adopted Budget as approved in connection with Ordinance 25773-09-2022, Section 2. Special Revenue Funds, as listed on page 9. Fund/ Dep a rt men t B udget Categ ory Venue Operating Fund Reve nu es Other Taxes Stall Tax Revenue Ticket Tax Revenue FY20 23 Ad opted Budget Aut ho rity $274 ,067.00 This M&C Rec 4 $3 ,633,704 .00 This M&C Rec 4 Budg et Adj ust ment -$53,457.00 $675,879.00 Revised FY2023 B udget $220 ,610.0( $4,309,583 .0( Parking Tax Revenue $2,047,469.00 Th is M&C Rec 4 $1 ,254,195 .00 $3 ,301 ,664 .0( Total Revenues $5,955,240.00 $1,876,617.00 $7,831,857.0( Expenditures Transfer to Venue Debt Fund $5,255 ,547 .00 M&C 22-0984 $699,693 .00 $5 ,955 ,240.0( Contribution to Fund Balance/Net Position $699,693.00 M&C 22-0984 -$699,693 .00 $1,876,617 .0( This M&C Rec 4 $1,876,617.00 Total Expenditures $5,955,240.00 $1 ,876 ,617 .00 $7,831,857.0( Adoption of this M&C and the attached ordinances will revise the FY2023 Amended Budget. A Form 1295 is not required because : This M&C does not requ est approva l of a contract with a bus iness entity . FISCAL INFORMATION/ CERTIFICATION: The Director of Fin ance certifies th at upon approval of the recommendations and adoption of the attached appropriati on ordinances funds will be avai lab le in the Culture & T our Proj Fin Zone , Venue Operating , Cu ltu re & Tourism 2% Hotel and Culture & Tourism Operating Fu nds. Prior to an expend iture being incurred , the Public Events Department has the responsibility of verifying the avai lab ility of funds . Submitted for City Manager's Office by: William John son 5806 Originating Business Unit Head: Michael Crum 2501 Additional Information Contact: Andrea Wright 2502