HomeMy WebLinkAboutResolution 5853-12-2023 A Resolution
NO. 5853-12-2023
SUPPLEMENTING THE ECONOMIC
DEVELOPMENT INITIATIVES FUND POLICY TO
SPECIFY THE UTILIZATION OF FUNDS THROUGH
FISCAL YEAR 2028
WHEREAS,the City of Fort Worth ("City") has established the Economic Development
Department to, among other things, administer programs that further the public purposes of
development and diversification of the City's economy, the elimination of unemployment and
underemployment in the City, and the development and expansion of commerce in the City;
WHEREAS, in accordance with the most recently adopted Comprehensive Plan, and
consistent with previous Comprehensive Plans, the City has committed to use custom-designed
incentives and partnership programs with private businesses on a case-by-case analysis of
individual projects to help ensure the growth and diversification of the local economy;
WHEREAS, on February 22, 2022, City Council accepted an update to the Fort Worth
Economic Development Strategic Plan that, among other things, recommended the establishment
of a dedicated cash fund to support economic development within the City to be known as the
Economic Development Initiatives Fund("EDIF");
WHEREAS, the purpose of the EDIF is to create a strong, resilient, and growing local
economy and promote the development of the City's industrial base through the sustained support
of targeted programs and strategic investment;
WHEREAS,on March 21,2023,the City Council adopted Resolution No. 5721-03-2023,
establishing a policy governing the EDIF ("Policy"), with the intent that the Policy institute the
means by which the EDIF will be established, funded, and utilized and create the guidelines and
processes for administration thereof; and
WHEREAS,City Council desires to supplement the Policy to specify the manner in which
the funds in the EDIF will be utilized to support economic development programs and activities
through fiscal year 2028.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH,TEXAS:
1. Exhibit A,attached hereto and incorporated herein by reference, is hereby added as
a supplement to the Policy,with the intent to specify the utilization of funds in the EDIF over the
next five fiscal years.
2. This Resolution will take effect on the date of its adoption.
Adopted this 12TH day of December, 2023.
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EXHIBIT A
SUPPLEMENT TO THE EDIF POLICY
UTILIZATION OF FUNDS IN THE EDIF
FISCAL YEARS 2024-2028
Purpose. On March 21, 2023, the City Council adopted Resolution No. 5721-03-2023,
establishing a policy governing the EDIF ("Policy"). The Policy sets forth the general means by
which the EDIF will be established,funded, and utilized and creates the guidelines and processes
for administration thereof, with an overarching goal of supporting and promoting economic
development in the City of Fort Worth("City"). The Policy contemplates that the guidelines and
requirements for utilization of the funds in the EDIF may be more specifically guided by other
associated policies, such as the City's Economic Development Program Policy,or supplements to
the Policy.This document is intended to act as a supplement to the Policy to specify the means by
which funds will be deposited into the EDIF and the manner in which any balance of funds may
be utilized in support of economic development programs or activities for fiscal years 2024-2028.
To the extent that there is a conflict between the Policy and this supplement,then this supplement
will control for the time period covered by the supplement.
General Policies. In addition to those general policies outlined in the Section 4 of the
Policy,the following policies will govern this supplement:
a. Authorization of expenditures from the EDIF are subject to City Council approval
except for those amounts authorized by the City Charter and ordinances that are within the
approval authority of the City Manager or that person's authorized designees.
'I
!' b. The EDIF will be administered by the City's Economic Development Department
or another City department approved by the City Manager.
�i Carry Forward Balance. The carry forward balance will not exceed the current year's
annual budget by 25%without the prior approved obligations of remaining funds in excess of25%.
u Programmatic Funding, For purposes of this supplement, the funds in the EDIF may be
used to fund certain ongoing programs,contracts,or other initiatives as approved by resolution of
the City Council or as incorporated into the City's annual budget ("Programmatic Funding" or
"Programmatic Funds"). These costs may include, but are not limited to, professional services
EI agreements for economic development marketing, funding set-aside for film production projects
(, or administrative contracts for the promotion or development of certain districts.
Fund Utilization. Funds in the EDIF must generally be utilized to serve and adhere to the
goals and objectives of the Economic Development Strategic Plan,as adopted by City Council and
f may be amended from time-to-time. The table below outlines, generally, the types of programs
and activities that are supported by the revenue from the EDIF.
Chapter 380 Economic Development Program Grants to support
business recruitment/retention activities
Catalytic redevelopment projects in Revitalization Target Areas
Expansion of Main St.Program to additional corridors
Marketing/Public Relations Initiatives
Conference Attendance/Project Site Visits
Local Film Incentive Program
Development of Established Innovation Districts
Entrepreneurship ProgramsBusiness A er
ssistance Cent
Interagenc Memberships
Programing and Administration
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City of Fort Worth,Texas
Mayor and Council Communication
DATE: 12/12/23 M&C FILE NUMBER: M&C 23-1048
LOG NAME: 17EDIF POLICY UPDATE
SUBJECT
(ALL)Adopt Resolution Supplementing the Economic Development Initiatives Fund Policy to Specify the Utilization of Funds Through Fiscal Year
2028
RECOMMENDATION:
It is recommended that the City Council adopt the attached resolution supplementing the Economic Development Initiatives Fund Policy to specify
the utilization of funds through fiscal year 2028.
DISCUSSION:
On February 22,2022,City Council accepted an update to the Fort Worth Economic Development Strategic Plan(Plan)(M&C G-19192)that,
among other updates and revisions,called for establishment within the City budget of a dedicated cash fund for the purposes of supporting
economic development in the City.The strategic recommendation was made in response to both the need for more flexible resources for
incentivizing certain projects and to the heightened level of competition seen in the market and the emergence of new funds created in other
communities within the region for promoting economic development,In response to the recommendation,City staff worked with City Council to
evaluate the proposed establishment of such a fund through a dedicated portion of the City's property tax rate and through the use of City Tax
Increment Financing(TIF)contributions upon their termination.While a special revenue fund was established as part of the Fiscal Year 2022 and
Fiscal Year 2023 City budgets,no policy existed recommending such a dedicated fund or one that guides the long-term funding and use of such a
fund for the purpose of supporting economic development.
On March 21,2023,the City Council adopted a Resolution(M&C 23-0212),approving a policy(Policy)for the establishment,long-term funding,
and use of an Economic Development Initiatives Fund(EDIF).The purpose of the EDIF is to create a strong,resilient,and growing local economy
and promote the development of the City's commercial and industrial base through the sustained support of targeted programs and strategic
investment.The Policy recommends that the EDIF is expressly designed to provide long-term annual funding for economic development projects,
programs,and initiatives and their administration.Per the policy,funding for the EDIF would be derived from new revenue derived from Tax
Increment Financing zones that are expiring or that have reduced contributions from the City.
The proposed supplement to the Policy outlines,generally,the types of programs and activities that are approved by the revenue from teh EDIF,
which will be updated and approved annually as part of the annual budget process.
A copy of the Suppement to the EDIF Policy is attached.
The supplement to the Policy will be effective on the date of adoption by the City Council.
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 approval of this recommendation will have no material effect on City funds.
Submitted for City Manager's Office by: William Johnson 5806
Originating Business Unit Head:_ Robert Sturns 2663
Additional Information Contact: Robert Sturns 2663