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HomeMy WebLinkAboutOrdinance 26038-03-2023ORDINANCE NO. 26038-03-2023 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE CULTURE AND TOURISM 2% HOTEL FUND, IN THE AMOUNT OF $741,728.00, FROM ADDITIONAL ANTICIPATED COLLECTIONS IN THE HOTEL OCCUPANCY TAX 2% COLLECTIONS, AND INCREASING THE CONTRIBUTION TO FUND BALANCE BY THE SAME AMOUNT; 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 appropriations in the Culture and Tourism 2% Hotel Fund, in the amount of $741,728.00, from additional anticipated collections in the Hotel Occupancy Tax 2% collections, and increasing the contribution to fund balance by the same amount. 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 shal I 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 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, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: Assistant City Attorney ADOPTED AND EFFECTNE: March 21, 2023 CITY SECRETARY r:::A~ 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 re commended that the City Council : 1. Adopt the attached appropriation ordinance 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 anticipated collections in the Hotel Occupancy Ta x 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 in creasing budgeted co ntributions 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 rec eipts and appropriations in the Culture & Tourism 2 % Hotel Fund Fiscal Year 2023 Operating Budget in the amount of $741,728.00 for additional anticipated co llections and increasing budgeted contributions to fund balance by the same amount for an amended annual operating budget of $8,681,425 .00 ; 3 . Adopt the attached appropriation ordinance increas ing estimated receipts 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 collections and increasing budgeted contributions to fund balance by the same amount for an amended annual operating budget of $7 ,831,857 .00; and 5. Amend Fi scal Year 2023 Adopted Budg ets. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to adjust the Fiscal Year (FY) 2023 amended appropriations for various funds associated with the Public Events Department (PED) to take into account updated, higher proj ections for hotel occupancy tax (HOT), which resu lts in a new calculated base for payment to the Convention & Vis itors Bureau (Visit Fort Worth), and higher than anti c ipated FY2023 venue tax collections to date. Publi c Events has been collaborating with Financial Management Services , Treasury Division and working with Hunden Strategic Partn ers (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 Ho te l Occupancy Ta x growth is expected to normalize with increased inflation . With new future supply in the market, HSP updated the tax fund revenues at the end of December and the Public Events Department is amending their FY2023 budgets in response to that anticipated growth . Culture & Tourism Fund (Recommendation 1) 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 7. Fund / Department Budget Category Culture and Tourism Fund Revenues Hotel Occupancy Taxes License and Permits Charges for Services Use of Money and Property Other Miscellaneous Revenue Recovery of Labor Costs Recovery of Supplies Recovery of Utilities FY2023 Adopted Budget Authority $27 ,863,939 .00 Th is 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 ,000.0( $5,043,250 .0( $8,383,961.0( $88 ,500.0( $642 ,611.0( $1, 196,000.0( $215 ,000.0( Transfer from General Fund (380 Agreement) Use of Fund Ba lan ce Total Revenues Expenditures Cult ure and Tourism Transfer to General Fund Transfer to Capita l Fund Transfer to Ve h icle an d Equipment Replancement Fund Transfer to IT Refresh Capital Transfer to Debt Fund Contribution to Fund Balance /Net Position Total Expenditu res Culture and Tourism 2% Hotel Fund (Recommendation 2) $2,927 ,456 .00 $46 ,366 ,717.00 M&C 22-0984 $42,431,499.00 M&C 2 2-0984 Th is M&C Re c # 1 $943 ,581 .00 $500 ,000 .00 $179 ,155 .00 $44 ,054 .00 $798 ,907 .00 $1 ,469 ,521 .00 Th is M&C Re c # 1 $46 ,366 ,717 .00 $136,000 .00 $2,73 2,047 .00 $136 ,000.00 $573,467 .00 $2 ,022,580 .00 $2 ,732 ,047.00 $2 ,927,456 .0( $136,000 .0( $49 ,098 , 764.0( $42 ,567,499.0( $943 ,581.0( $500 ,000 .0( $179,155 .0( $44 ,054 .0( $798 ,907 .0( $3,492 , 101 .0( $49 ,098 , 764.0( Th e action in this M&C wi ll amend the Fisca l Year 2023 Adopted Budget as approved in connection with Ordinance 25773-09-2022 , Section 2 . Special Reve nu e Fu nds, as listed o n page 8. Fund / Departme nt FY2023 Adopted Authority B udget Adjustment Revised FY2023 Budget Ca tegory Budget Budget Culture a nd Tourism 2% Hote l Fund Revenues Hotel Occupancy Taxes $7 ,939 ,697 .00 This M&C Rec # 2 $741 ,728 .00 $8,681,425 .0( Total Revenue s $7,939 ,697.00 $741 ,728.00 $8 ,681 ,425 .0( Expenditures T ransfer to Capital Fund $3 ,371,000.00 $3,371,000.0( T ra nsfer to Debt Fund $3 ,7 17,367 .00 M&C 22 -0984 -$2 ,740 ,6 17 .00 $976,750 .0( Contrib ution to Fund Ba lance/Net Positio n $851 ,330.00 M&C 22-0984 $2 ,740 ,617.00 $4 ,333,67 5 .0( This M&C Rec # 2 $741,728 .00 Total Expenditu res $7 ,939 ,697 .00 $741 ,728.00 $8,681 ,425.0( Culture and Tourism Project Fi nance Zone Fund (Recommenda~ion 3) T he action in this M&C w ill amend the Fisca l Year 2023 Adopted Budget as approved in connection w ith Ordinance 25773-09-2022 , Sect ion 2 . Specia l Reve nue Funds , as listed o n page 8-9 . Fund/ Department FY2023 Adopted Authority Budget Adjustment Revised FY2023 Budget Category Budget Budget Culture and Tourism Project Finance Zone Fund Reve nues In te rgovern me ntal Revenue $8,229,763 .00 This M&C Rec 3 $1,162,938 .00 $9,392,70 1.0( Total Revenues $8 ,229 ,763.00 $9 ,392 , 701 .0( Expe nd itures Transfer to Debt Fund $6 ,571 ,554 .00 M&C 22-0984 $1 ,658 ,209 .00 $8 ,229 , 763 .0( Contributio n to Fund Balance/Net Position $1,658,209 .00 M&C 22-0984 -$1 ,658 ,209.00 $1 , 162 ,938.0( T his M&C Rec 3 $1,162,938 .00 Total Expenditures $8 ,229 ,763.00 $1 ,162 ,938 .00 $9 ,392 , 701.0( Venue Operating Fund (Recommendation 4) T he acti o n in thi s M&C w ill a mend the Fisca l Year 2023 Adopted Budget as approved in connection with Ordinance 25773-09-2022, Section 2 . S pecia l Revenue Fun ds , as listed on page 9 . Fund / Department Budget Category Venue Operating Fu nd Revenues Other Taxes Sta ll Tax Revenue Ticket Tax Revenue FY2023 Adopted Budget Authority $274 ,06 7 .00 This M&C Rec 4 $3 ,633,704 .00 This M&C Rec 4 Bud get Adjustment -$53,457 .00 $675 ,879.00 Revised FY2023 Budget $220,6 10 .0( $4 ,309 ,583 .0( Parking Tax Revenue $2 ,047,469.00 This M&C Rec 4 $1 ,254,195.00 $3,301,664 .0( Total Revenues $5 ,955 ,240.00 $1,876 ,617 .00 $7 ,83 1,857.0( Expend itures Transfe r to V enue 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( A doption of this M&C and the attached ordinances wi ll revise the FY2023 A mended Budget. 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 approva l of the recommendations and adoption of the attached appropriation ordinances funds will be avai lab le in the Culture & Tour Proj Fin Zone, Venue Operating , Culture & Tourism 2% Hotel and Cu lture & Tourism Operating Fu nds. Prior to an expenditure being incurred, the Pub lic Events Department has the responsibi lity of verifying the availability of funds . Submitted for City Manager's Office by: W illiam J ohnson 5806 Originating Business Unit Head: Michael Crum 2501 Additional Information Contact: A ndrea Wright 2502