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HomeMy WebLinkAboutOrdinance 26040-03-2023ORDINANCE NO. 26040-03-2023 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE CULTURE & TOURISM VENUE OPERATING FUND, IN THE AMOUNT OF $1,876,617.00, FROM UPDATED 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 Venue Operating Fund, in the amount of $1 ,876,617.00 , from updated 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 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed .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 EFFECTIVE: 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 In creased 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 d ifference for an amended annual operating budget of $49,098,764.00; 2. Adopt the attached appropriation ordinance increasing estimated re ceipts and appropriations in the Culture & Tourism 2 % Hotel Fund Fiscal Year 2023 Operating Budget in th e amount of $741,728.00 for additional a nticipated co lle ctions and increasing budgeted contributions to fund balance by the same amount for an amended annual operating budget of $8,68 1,425.00 ; 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 additional anticipated collections and increasing budgeted contributions to fund balance by the same amount for an amended annual operating budget of $9 ,3 92,701.00 ; 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 co llections 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 Fis cal 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 projections for hotel occupancy tax (HOT), which results in a new calculated base for payment to the Convention & Visitors Bureau (Visit Fort Worth), and higher than anticipated FY2023 venue tax 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 ta x revenues . While the last two years have seen a significant re covery 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 this M&C will amend the Fiscal Year 2023 Adopted Budget as approved in connection with Ordinance 25773-09-2022 , Section 2 . Special Reve nue Funds , as listed on page 7 . Fund / Department Budget Category Culture and Tourism Fund Revenues Hotel Occupan cy Taxes Li ce nse and Permits Charges for Services Use of Money and Property Other Miscellaneous Revenue Recovery of Labor Costs Recovery of Supplies Recove ry of Utiliti es FY2023 Adopted Budget Authority $27,863 ,939.00 This M&C Re c# 1 $6,000.00 $5,043 ,250.00 $8,383,96 1 .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( $215,000.0C Tra nsfer from General Fund (380 Agreement) $2,927 ,456 .00 $2,927,456.0( Use of Fund Ba lance M&C 22-0984 $136 ,000 .00 $136,000.0( Total Revenues $46 ,366 ,717 .00 $2,732 ,04 7 .00 $49 ,098 , 764.0( Expend it ures 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 T ransfer to General Fu nd $943 ,58 1.00 $943,581 .0( T ra nsfer to Capita l Fun d $500,000 .00 $500,000 .0( Transfer to Vehicle and Equipment Replancement Fund $179,155.00 $179,155 .0( Transfer to IT Refres h Cap ita l $44,054 .00 $44,054.0( T ransfe r to Debt Fu nd $798,907 .00 $798 ,907 .0( Cont ri but ion to Fund Ba la nce/Net Position $1,469,521 .00 This M&C Rec# 1 $2,022,580.00 $3 ,492 , 101 .0C Total Expenditures $46 ,366 ,717.00 $2,732 ,047.00 $49 ,098 , 764 .0( Culture and Touris m 2% Hote l Fund (Recommendation 2) T he actio n in t hi s M&C wi ll amend the Fiscal Year 2023 Adopted Budget as ap proved in connection with Ord inance 25773-09-2022, Secti on 2. Special Reven ue Fun ds , as listed on page 8 . Fund / De partment FY2023 Adopted Au t hority Budget Adju stment Revised FY2023 Budget Category Budget Budget Culture and Tourism 2% Hote l Fund Revenues Hotel Occupancy Taxes $7 ,939,697.00 This M&C Rec# 2 $74 1,728.00 $8,681,425 .0( Total Revenues $7 ,939 ,697.00 $741 ,728.00 $8 ,681 ,425.0( Expe nditures T ra nsfer to Capital Fund $3 ,371,000 .00 $3,37 1,0 00 .0( T ransfer to Debt Fund $3 ,7 17,367 .00 M&C 22-0984 -$2 ,740,617.00 $976,750 .0( Contribution to Fund Ba lance/Net Position $851,330.00 M&C 22-0984 $2 ,740,6 17.00 $4 ,333 ,67 5.0( This M&C Rec# 2 $741 ,728 .00 Total Expenditures $7 ,939 ,697.00 $741 ,728.00 $8 ,681 ,425.0( Culture and Touris m Project Finance Zone Fund (Recommendation 3) T he actio n in this M&C w ill a men d th e Fisca l Year 2023 Adopted Budget as approved in connection with Ordinance 25773-09-2022, Section 2 . Spec ia l Revenue Fun ds , as listed on page 8 -9 . Fund / Department FY2023 Adopted Authority Budget Adjustment Revised FY2023 Budget Category Budget Budget Cu lture a nd Tou rism Pro ject Fi na nce Zone Fu nd Reve nu es In te rgovernmenta l Revenue $8 ,229,763.0 0 Thi s M&C Rec 3 $1,162,938.00 $9,392,70 1.0( Total Revenues $8,229,763.00 $9 ,392 , 701.0( Expe nditures Transfer to Debt Fu nd $6,57 1,554.00 M&C 22-0984 $1,658 ,209.00 $8 ,229 ,763.0( Con tri bu ti on to Fund Balance/Net Position $1,658,20 9.00 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( Venue Ope rating Fund (Recommendation 4) Th e actio n in thi s M&C will ame nd th e Fisca l Year 2023 Adopted Budget as approved in co nnect ion wit h Ordinance 25773-09-2022, Section 2 . Specia l Reve nue Fun ds, as li sted o n page 9 . Fund / Department Budget Category Ven ue O peratin g Fund Reven ues Oth er Taxes Sta ll Tax Reven ue T icket Tax Reve nu e FY2023 Adopted Budget Authority $274 ,06 7 .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 $220,6 1 O.OC $4,309,583 .0( Parking Tax Revenue $2,047,469 .00 T his M&C Rec 4 $1,254, 195 .00 $3,30 1,664.0 Total Revenues $5 ,955 ,240 .00 $1 ,876 ,617 .00 $7 ,831 ,857.0 Expend itures T ransfe r 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 ,857.0 1 Adoption of this M&C and the attached ord in ances will revise the FY2023 Amended Budget. A Form 129 5 is not required beca use : Th is M&C does not request approva l of a contract with a business entity. FISCAL INFORMATION/ CERTIFICATION : Th e Directo r of Fina nce certifies tha t upon approval of the recommenda ti ons and adoption of the attached appropriat ion ordinances funds will be avai lable in the Culture & Tour Proj Fin Zone, Venue Operating , Culture & Tourism 2% Hotel and Culture & Tourism O perating Funds . Prior to an expe ndit ure be in g in curred , the Pu blic Events Department has the respo nsibil ity of verifying t he ava il abili ty of f unds . Submitted fo r City Manager's Office by: W illiam Jo hnson 5806 Originating Business Unit Head: Michael Crum 2501 Add itional Information Contact: Andrea Wright 2502