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HomeMy WebLinkAboutOrdinance 27155-09-2024Ordinance No. 271.55-09-2024 AN ORDINANCE ADJUSTING ESTIMATED RECEIPTS AND APPROPRIATIONS BY INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE FORT WORTH PUBLIC IMPROVEMENT DISTRICT 1 - DOWNTOWN FUND IN THE AMOUNT OF $3,614,051.00, FROM AVAILABLE FUNDS; 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 the budget of the City of Fort Worth for Fiscal Year 2023-2024, as enacted by Ordinance 26453-09- 2023, as amended, is hereby further amended to make the following adjustments to estimated receipts and appropriations by increasing estimated receipts and appropriations in the Fort Worth Public Improvement District 1- Downtown Fund in the amount of $3,614,051.00, from available funds. 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 26453-09-2023 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: September 17, 2024 CITY SECRETARY Jannette S. Goodall City Secretary 0 oV� i 0 �`o 064 o 0 ���� 0,00 *a FORT WORTH City of Fort Worth Five Year Service Plan FY 24-25 - FY28.29 Public Improvement District No. 1 - Fort Worth FIVE YEAR SERVICE PLAN 10 FY24125 FY25126 FY26127 FY27128 FY28129 REVENUES PID Assessments' $ 3,001,274 $ 3,061,299 $ 3,122,525 $ 3,184,976 $ 3,248,675 COFW Assessment 366.346 371,477 371,477 371,477 371,477 COFW Payment in lieu of Services 156,431 156,431 156,431 156,431 156,431 PID Generated Revenue 90,000 90,000 90,000 90,000 90,000 Total Budgeted Revenues $ 3,614,051 $ 3,679,207 $ 3,740,432 $ 3,802,883 $ 3,866,583 Use of Fund Balance - - - Total Revenues $ 3,614,051 $ 3,679,207 $ 3,740,432 $ 3,802,883 $ 3,866,583 EXPENSES Management Fee $ 593,750 $ 605,625 $ 635,906 $ 667,702 $ 701,087 Utilities 12,500 10,000 13,000 14,000 15.000 Landscaping 125,000 200,000 140,000 200,000 200,000 Maintenance & Operations 1,330,970 1.280,000 1,300,000 1,330,000 1.430,000 Tree Lights 50,000 30,000 30,000 30,000 100,000 Security 13.200 10, 700 11,981 12,220 12,220 Ambassador Program 647,000 659,940 673.139 686,602 700,334 Newsletter 9,001) 10,000 10,000 10,000 10.000 Marketing & Research 510,200 470.200 493,710 500.000 550,000 Transportation & Planning 222,100 207,100 217,455 228,328 239,744 - City Audit 3,000 3,000 3,000 3,000 3,000 City Administrative Fee 72,281 73,584 74,809 76,058 77,332 Total Budgeted Expenses $ 3,589,001 $ 3,560,149 $ 3,603,000 $ 3,757,909 $ 4,038,716 Contribution to Fund Balance $ 25,050 $ 119,058 $ 137,433 $ 44,974 $ (172,133) Total Expense $ 3,614,051 $ 3,679,207 $ 3,740,432 $ 3,802,883 $ 3,866,583 Net Change in Fund Balance $ 25,050 $ 119,058 $ 137,433 $ 44,974 $ (172,133) Estimated Fund Balance, Beginning of Year 350,858 375,908 494,966 632,399 848,297 Estimated Fund Balance, End of Year 375,908 494,966 632.399 677,373 676,164 Reserve Requirement 593,477 600,620 626.443 673.254 673.254 Over (Under) Reserve $ (217,569) $ (1053654) $ 5,955 $ 4,119 $ 2,910 `FY2025 Assessment Rate = $.13 WHITE SETTLEMENT Harrold F— i L3Q In a c Trinity NO `^ 7 2 � 377 Heritage ��`,� FLU Paddock �FO Flm rt�p "ect C, z o svarti, Q 0 Square 77H � � Burk Federal CY Burnett Pldln —,30TH w Peter S;n,fll --- —�� City Tye-, Water Gardens 1f3n Haynes Memorial tANCASTER m z z VICKERY FORT WORTH PI D 1: Downtown Source: Planning and Data Analytics Date: July 2020 K:Copyright 2020 City of Fort Worth. unauthorized reproduction is a violation of applicable laws.Thisproduct is for informational purposes and may not have been prepared for or be suitable for legal, engineering, or surveyirg purposes. it does not represent an on -the -ground survey and represents only the approximate relative location of property boundaries The City of Fort Worth assumes no responsibility for the accuracy of said data. 0 500 1,000 2,000 Feet N City of Fort Worth, Texas Mayor and Council Communication DATE: 09117/24 M&C FILE NUMBER: M&C 24-0770 LOG NAME: 17ED PID01FY25 SUBJECT (CD 9) Conduct Public Benefit Hearing for Fort Worth Public Improvement District 1 — Downtown; Adopt the Attached Ordinance (1) Approving and Adopting the Fiscal Year 2024-2025 Budget, Five -Year Service Plan, Assessment Plan, and Tax Year 2024 Assessment Roll, and (2) Levying Special Assessments for the 2024 Tax Year at a Rate of $0.13 Per Each $100.00 of Property Value; Authorize Execution of an Agreement with Downtown Fort Worth, Inc., in the Amount of $593,750.00 to Manage the Public Improvement District; and Adopt Attached Appropriation Ordinance (PUBLIC HEARING - a. Report of City Staff. Lacey Ruiz; b. Public Comment; c. Council Action: Close Public Hearing and Act on M&C) RECOMMENDATION: It is recommended that the City Council: 1. Conduct a public benefit hearing concerning the proposed special assessments on the property located in Fort Worth Public Improvement District 1 - Downtown (Downtown PID) for the 2024 tax year, 2. Adopt the attached ordinance (1) approving and adopting the Fiscal Year 2024-2025 budget in the amount of $3,614,051.00, five-year service plan, assessment plan, and tax year 2024 assessment roll (on file with the City Secretary) for the Downtown PID; and (2) levying special assessments on privately -owned property located in the Downtown PID for the 2024 tax year at a rate of $0.13 per each $100.00 of property value (Service and Assessment Plan and Assessment Ordinance); 3. Direct the City Secretary to record a copy of the Service and Assessment Plan and Assessment Ordinance in the real property records of Tarrant County, Texas no later than the seventh (7th) day after adoption by the City Council; 4. Authorize the execution of an agreement with Downtown Fort Worth, Inc. in the amount of $593,750.00 to provide management of the improvements and services for the Downtown PID during Fiscal Year 2024-2025; and 5. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Fort Worth Public Improvement District 1 - Downtown Fund in the amount of $3,614,051.00, from available funds. DISCUSSION: On June 23, 2009, the Mayor and City Council adopted Resolution No. 3756-06 2009 re-establishing Fort Worth Public Improvement District 1 - Downtown (Downtown PID). The purpose of this benefit hearing is to receive comments from the public regarding the Fiscal Year 2024-2025 budget and five-year service plan for the Downtown PID and the proposed assessments to be levied on each property in the Downtown PID for the 2024 tax year. Following the public hearing, it is recommended that the City Council take the following actions: (1) adopt the attached ordinances approving and adopting the budget, five-year service plan, assessment plan, and assessment roll; (2) levying the proposed assessments; and (3) appropriating funds. The improvements and services to be provided in the Downtown PID during fiscal year 2025 and the costs thereof are as follows: Fiscal Year 2025 Budget Improvements Total Budgeted Cost Management Fee $ 593,750.00 Utilities $ 12,500.00 Landscaping $ 125,000.00 Maintenance & Operations $ 1,330,970.00 Tree Lights $ 50.000.00 Security $ 13,200.00 Ambassador Program $ 647,000.00 Newsletter $ 9,000.00 Marketing & Research $ 510,200.00 Transportation & Planning City Audit $ 222,100.00 $ 3,000.00 City Administrative Fee $ 72,281.00 Contribution to Fund Balance $ 25,050.00 Total Expense $ 3,614,051.0d The total budgeted costs of the improvements and services are $3,614,051.00. Of this amount, $3,001,274.00 will be funded by assessments collected on privately -owned parcels located in the Downtown PID by applying a rate of $0.13. The remainder of the costs in the amount of $612,777.00 will be funded by other revenue sources including: (a) $366,346.00 in direct payments from the City for Payment In -Lieu of Assessments, which are calculated at the same rate as the privately -owned parcels, (b) $156,431.00 in direct payments from the City for Payment In -Lieu of Services, (c) $90,000.00 in revenues generated by Downtown PID activities. For Fiscal Year 2023-2024 (tax year 2023), the Downtown PID levied an assessment of $0.13 per $100.00 of property value. The Downtown P1D's estimated net taxable value increased by $90,511,018.00, or 3.76%, allowing the assessment rate to remain at $0.13 to maintain current service levels. However, the Downtown PID has experienced a shortfall in projected budgeted revenue over the past five years, primarily due to decreased commercial property values and numerous properties under protest at the Appraisal Review Board (ARB) at the time of budget approval. This situation has caused the Downtown PID's reserve levels to fall below the City's targets. City staff assumes a collection rate of 92.5%, to more accurately reflect the estimated revenues after accounting for the final impact of protested properties within the Downtown PID. This adjustment effectively reduces projected revenues to accommodate levy variances due to protests at the appraisal district. City staff and Downtown Fort Worth Inc., will continue to monitor property values and the associated fund balance annually to ensure that the Downtown PID monitor compliance with reserve levels over the duration of the five-year service plan term. Therefore, the recommended Fiscal Year 2024-2025 (tax year 2024) assessment rate is $0.13 per $100.00 of taxable property value. On August 27, 2024, the City Council conducted a public hearing to receive comments on the proposed 2024-2025 Fiscal Year budget, five-year service plan, and 2024 assessments for the Downtown PID. Notice of the August 27, 2024, benefit hearing and this hearing were published in the Fort Worth Star -Telegram and mailed to all owners of property on record in the Downtown PID on August 16, 2024 in accordance with state law. The Downtown PID Advisory Board recommended approval of the budget. Funding will be budgeted within the FWPID #1 - Downtown Fund for Fiscal Year 2025. The Downtown PID is located in COUNCIL DISTRICT 9. FISCAL INFORMATION_! CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations and the adoption of the Fiscal Year 2025 Budget by the City Council, funds will be available in the Fiscal Year 2025 operating budget, as appropriated, in the FWPID #1 - Downtown Fund. Prior to any expenditure being incurred, the Economic Development Department has the responsibility to validate the availability of funds. Submitted for City Office by_ William Johnson 5806 -Manager's Originating Business Unit Head: Robert Sturns 2663 Additional Information Contacl: Lacey Ruiz 2608