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HomeMy WebLinkAboutOrdinance 26039-03-2023ORDINANCE NO. 26039-03-2023 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE CULTURE & TOURISM PROJECT FINANCE ZONE FUND, IN THE AMOUNT OF $1,162,938.00, FROM ADDITIONAL ANTICIPATED 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 Project Finance Zone Fund, in the amount of $1 ,162 ,938.00, from additional anticipated 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 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 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 EFFECTIVE: March 2 1, 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 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 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 Ta x 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 re ce ipts and appropriations in the Culture & Tourism 2 % Hotel Fund Fiscal Year 2023 Operating Budget in the amount of $741,728.00 for additional anticipated collections and increasing budgeted contributions to fund balance by th e same amount for an amended annual operating budget of $8 ,681,425.00; 3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Culture & Tourism Project Finance Zone Fund 2023 Operating Budget in the amount of $1,162,938.00 for add itional 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 Budgets. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to adjust the Fi scal Year (FY) 2023 amended appropriations for various funds associated with the Public Events Department (PED) to take into account updated , higher projections for hotel occupancy tax (HOT), which results in a new calculated base for payment to the Convention & Vis itors Bureau (Visit Fort Worth), and higher than anticipated FY2023 venue tax collections to date. Public Events has been co llaborating with Financial Management Servi ces, 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 Hote 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 Publi c 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 Fisca l 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 Hote l 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 This M&C Re c# 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 .0C $642 ,611.0( $1, 196 ,000.0( $215 000 Of Transfer from General 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 Revenues $46,366,717.00 $2,732,047.00 $49,098, 764.0( 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 Genera l Fund $943,581.00 $943,581 .0( Transfer to Capi tal Fund $500,000 .00 $500,000 .0( Transfer to Vehicle and Equipment Replancement Fund $179 ,155 .00 $179 ,155 .0( Transfer to IT Refresh Capita l $44,054.00 $44,054.0( Transfer to Debt Fund $798 ,907 .00 $798 ,907.0C Contribution to Fund Balance/Net Position $1,469 ,521 .00 This M&C Re c # 1 $2,022,580 .00 $3,492 , 101.0( Total Expenditures $46,366,717.00 $2,732,047.00 $49,098, 764.0( Culture and Tourism 2% Hotel Fund (Recommendation 2) The action in this M&C will amend the Fiscal Year 2023 Adopted Budget as approved in connection with Ordinance 25773-0 9-2022, Section 2 . Special Revenue Funds, as listed o n page 8 . Fund / Department FY2023 Adopted Author ity Budget Adjustment Revised FY2023 Budget Category Budget Budget 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 Revenues $7,939,697.00 $741,728.00 $8,681,425.0( Expenditures 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 Position $851 ,330.00 M&C 22-0984 $2,740 ,617.00 $4 ,333 ,675.0( This M&C Rec # 2 $741 ,728.00 Total Expenditures $7,939,697.00 $741,728.00 $8,681,425.0( Culture and Tourism Project Finance Zone Fund (Recommendation 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 Authority Budget Adjustment Revised FY2023 Budget Category Budget Budget 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 ,763.0C Contribution to Fund Balance/Net Position $1,658,209 .00 M&C 22-0984 -$1 ,658,209 .00 $1, 162,938.0C This 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) 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 9 . Fund / Department Budget Category Venue Operating Fund Revenues Other Taxes Stall Tax Revenue TicketTax Revenue FY2023 Adopted Budget Authority $274,067.00 This M&C Rec 4 $3 ,633 ,704.00 Th is M&C Rec 4 Budget Adjustment -$53,457.00 $675 ,879.00 Revised FY2023 Budget $220 ,610.0( $4 ,309,583 .0C 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 $7,831,857.0 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 .01 This M&C Rec 4 $1,876,617.00 Total Expenditures $5,955,240.00 $1,876,617.00 $7,831,857.01 Adoption of this M&C and the attached ordinances will revis e the FY2023 Amended 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 approval of the recommendations and adoption of the attached appropriation ordinances funds will be available in the Culture & Tour Proj Fin Zone, Venue Operating , Culture & Tourism 2 % Hotel and Culture & Tourism Operating Funds. Prior to an expenditure being incurred , the Public Events Department has the responsibility of verifying the availability of funds. Submitted for City Manager's Office by: William Johnson 5806 Originating Business Unit Head: Michael Crum 2501 Additional Information Contact: Andrea Wright 2502