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Home My WebLink AboutOrdinance 26111-04-2023ORDINANCE NO. 26111-04-2023 AN ORDINANCE AMENDING THE FISCAL YEAR 2022-2023 BUDGET AND FIVE- YEAR SERVICE PLAN FOR PUBLIC IMPROVEMENT DISTRICT NO. 18 - TOURISM; MAKING THIS ORDINANCE CUMULATIVE OF ALL OTHER ORDINANCES; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Public Improvement District Assessment Act, Chapter 372 of the Texas Local Government Code ("Act"), allows for the creation of public improvement districts; WHEREAS, on August 29, 2017, the City Council of the C ity of Fort Worth ("City Counci l") adopted Resolution No. 4837-08-2017, establishing Public Improvement District No. 18 -Tourism ("PID") in accordance with Section 372 .0035 and other app li cable sections of the Code; WHEREAS, on September 13 , 2022, City Council adopted Ordinance No. 25724-09-2022 , approving the fiscal year (FY) 2022-2023 Budget, Five -Year Service Plan, Assessment Plan, and Tax Year 2022 Assessment Roll for the Tourism PID; WHEREAS, the City Council desires to amend the fiscal year 2022-2023 budget and five-year service plan ("Amended Service Plan"), which is attached hereto as Exhibit A and incorporated herein for all purposes; WHEREAS, the Amended Service Plan is intended to supersede the Service Plan set out in Ordinance No . 25724-09 -2022; and WHEREAS, the Amended Service Plan will not affect the previously adopted Assessment Plan or Assessment Roll. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS THAT: SECTION 1. The Recitals and findings li sted above are true and correct and form the basis upon which this Ordinance is being adopted and are incorporated herein by reference. SECTION 2. The City Council hereby approves and adopts the Amended Service Plan for fiscal year 2022-2023. In doing so, the City Council finds that the supplemental services and improvements set forth in the Service Plan are feasible and advisable and will serve the needs and desires of the property owners in the District. SECTION 3. 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 shall remain in full force and effect. Ordinance No. 26111-04-2023 Page 1 of3 SECTION 4. This Ordinance is cumulative of a ll oth er o rdin ances and appropriations amend in g the same except in those instances where the provisions of this Ordinance are in direct conflict w ith such other ordinances and appropriations, in which in stance said conflicti ng provisions of said prior ordinances and appropriatio ns are hereby expressly repealed . SECTION 5. The City Secretary is directed to cause a co py of this Ordinance to be recorded in the real property records of Tarrant Co un ty, Texas no later than the seventh (7 th) day after the adopted date of this Ordinance. SECTION 6. This Ordinance takes effect a nd will be in full force and effect from and after the date of its passage. AND IT IS SO ORDAINED. APPROVED AS TO FORM AND LEGALITY: Nico Aria s(May 1, 2023 09:06 CDT ) Nico Arias, Assistant C ity Attorney M&C: 23 -0 311 Adopted and Effecti ve: Apri l 25, 2023 ATTEST: r 1 ..13.:o:-o..• il Jannette Goodall , City Secretary Ordinance No. 261 1 I -04-2023 Page 2 of 3 REV6N ES !'ID A.sse!iSIDe!lls Total f\m<la Availab le ror uae EXPEJ,ISES ln.oentiws & 5.5~ E.troru EXHIBIT A AMENDED SERVICE PLAN Clly Of FOIi Worth a-Y-Fl'i"I Year S&JV1ce Pl am Publl>c bqpn>Vl<MlltDhtrlctNo. 18 • Toudsm Flecal 'fur 221'2) 1tlrougb 2&127 FY22,!23 FYZ31'2-4 S .ll,350..000 s 5,725,000 s $ e.ss 000 $ 5,725,000 $ s 2,. "'625 i 2,633,,l!SD $ M,/b:ting •D<l Ri,...,rd, (Prorn0l'i<,-b' ""'1¥.rli!iing ) 2,15E.2Sl t ,934,SJD Sile ViJS ib &: S:-:am1 ri.nt'lion OU':P.; ?•D-7 ~0 233,JOD Cu ll.'Jr::o l Enhonccmen1" th,cugll IV'..,_itc<!li1113 o:nd l'<"m<lil ion 0 I !he Am 4&4..525 425,Wil qpea,iam. & A.dm irutr.!1 ian 253.SDJ G,y A.chniri..~,iv.c Fee 55,!lDJ To!al Baagltld EXpenaea $ $ 5 ,72 5,,1100 $ CO!lll1t ID FIJOO B !ance Total Exptn-$ 8.)511,.00CI $ 5 ,725.1100 .. Nat orung• n Funa Balance $ (2.1 011,.000} $ * Rm:! 8alan.Qe, Beg'nnlng ce 'fear (Eilln:G!Ed Yrs 2--5 ) s_,.4,!Jz.ro, 3,Jce,~ EElltnJt~:l FUna B;mn~. En:l Of Ye 3 ,362,.2(6 J,:» ,205 R5a\le~t 564,,3«1 1,001,1]34 Offr jUIIOlr) R ... rw $ :Z..407.14e $ 2,31:1.172 .. FY24125 FY2512C FY2&1.27 6,005;000 S 6,2.15;000 s 6,430,000 ,OOIS,000 $ ~15,000 $ ,430.000 a:re.2so S :!..S2~.0lllll s J ,1!!23.125 1162.~00 2,.155 ,000 2,231,2&1 2 97.~ JM,000 :!.1<1 .7&1 ~ .. :!S il ~62,000 41a.12s 2El7.~0 0 Jlle,000 :!.1a,150 $,fiOD $, 55,000 ~000 $ '215 ,000 $ ,430,000 ,OC<S,000 $ '215,000 $ ~430.000 $ $ J,~:000 J,..i'OZ,20., 3,.M2,20a 3,JE2 ,206 3.362,206 3,:l62,2'J6 1 ·36 ,1!4 1 1.0·71,Ea 1 111l7 1,S3 1 2,.32C.,1G5 $ 2.230,325 $ 2,,290 ,S25 The total budgeted costs of the improvements and services for the District for fiscal year 2022-2023 are $8,350,000.00 and wi ll be funded by Hote ls liable for assessment in the District. Ordinance No . 26111-04-2023 Page 3 of3 City of Fort Worth, Texas Mayor and Council Communication DA TE: 04/25/23 M&C FILE NUMBER: M&C 23-03 11 LOG NAME: 17PID18 MIDYEARFY23 SUBJECT (ALL) Adopt Ordinance Amending the Fiscal Year 2022-2023 Adopted Budget and Five-Year Service Plan for Public Improvement District 18 - Tourism and Adopt Appropriation Ordinance RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached ordinance amending the Fiscal Year 2022-2023 Budget and Five-Year Service Plan for Public Improvement District 18 - Tourism to reflect amendments associated with a mid-year review and direct the City Secretary to record the same in the real property records ofTarrant County, Texas no later than the seventh (7th) day after adoption by the City Council ; and 2. Adopt the attached appropriation ordinance increasing appropriations in the Fort Worth Public Improvement District 18 -Tourism Fund in the amount of $2 ,895 ,000 .00 , for the purpose of funding mid-year budget adjustments . DISCUSSION: The City of Fort Worth 's Department of Economic Development administers the City's Public Improvement Districts (PIDs). The City 's PIO Policy outlines the need to proactively work with the City 's PIO management companies to oversee the services being provided within each of the PIDs . PIO 18 -Tourism (Tourism PIO) is managed by Fort Worth Tourism Public Improvement District Corporation (FWTPIDC) and the Fort Worth Convention and Visitors Bureau (FWCVB). On September 13 , 2022 , City Council adopted Ordinance No . 25724-09-2022 , approving the Fiscal Year (FY) 2022-2023 Budget , Five-Year Service Plan , Assessment Plan , and Tax Year 2022 Assessment Roll for the Tourism PIO. After conducting a mid-year review of the Tourism PID 's budget, City staff and FWTPIDC and FWCVB have identified the need to increase the Tou rism PIO Budget by $2 ,895 ,000 .00 to align expenses with actual activities that are attributable primarily to rev ised assessment collect ion forecast for the current fiscal year and to reclaim additional revenue from prior fiscal year over the adopted budget allocation . The Tourism PIO is funded through a 2% assessment on the consideration received from occupan cy of any sleeping room furnished by a hotel in the Tourism PIO . Due to the most recent forecast analysis , Tourism PIO assessment revenue is now projected to be 14 .57 % or $795 ,000.00 more than orig inally budgeted. The additional increase of $2 ,100,000 .00 will be a contribution to fund balance as a result of additional revenue from the prior fiscal year. The budgeted expenses show an increase in each category line item for the current fiscal year service plan (see table below). Revenue Adjustments : Line Items to be Adjusted PIO . Recommended Amended Previously Approved M"d y FY23 Budget Item I -ear FY23 Budget Adjustment Item $5 ,455 ,000 .00 $5,455,000.00 $2,89 Expenditure Adjustments : Line Items to Previously Approved Recommended Amended Mid-Year FY23 Budget be Adjusted FY23 Budget Item Adjustment Item Incentives & $2 ,565 ,000 .00 $'<77 l':?t; ()() $2 ,942 ,625 .00 Sales Efforts Marketing and Research $1 ,890 ,000 .00 $278 ,250 .00 $278 ,250.00 (Promotion/ Advertising) Site Visits & Familiarization $270 ,000 .00 $39 ,750 .00 $39 ,750 .00 Tours Cultural Enhancements through $405 ,000 .00 $59 ,625.00 $59 ,625 .00 Marketing and promotion of the Arts Operations & $270 ,000 .00 $39 ,750 .00 $39 ,750 .00 Administration City Administrative $55 ,000 .00 $0.00 $0.00 Fee Contribution to $0.00 $2 ,100 ,000.00 $2 ,100 ,000 .00 Fund Balance !Totals I $5,455,00.00 $2,895,000.00 $8,350,000~ Staff supports FWTPIDC 's and FWCVB 's recommended mid-year budget adjustments . Upon approval of the above recommendations , the total budgeted expenses for FY 2022-2023 will be $8 ,350,000 .00 . This mid-year budget adjustment will decrease the unaudited , unassigned fund balance by a total of $2 ,895 ,000.00. The revised Budget and Five-Year Service Plan will take effect upon approval by City Council. The proposed changes to the Tourism PID 's FY 2022-2023 budget complies with the City 's reserve requirements. Funding is available for appropriation in the fund balance of the FWPID #18 -Tou rism Fund . The beginning balance is $5 ,462 ,205.87 , after this M&C , available balance will be $2 ,567 ,205 .87 . The Tourism PIO properties are located in ALL COUNCIL DISTRICTS . 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 above recommendations and adoption of the attached appropriation ordinance , funds will be available in the current operating budget , as appropriated , in the FWPID #18 -Tourism Fund . Prio r 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 Sturns 2663 Additional Information Contact: Crystal Hinojosa 7808