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Home My WebLink AboutOrdinance 27585-04-2025ORDINANCE NO.27585-04-2025 AN ORDINANCE AMENDING THE FISCAL YEAR 2024-2025 BUDGET AND FIVE- YEAR SERVICE PLAN FOR PUBLIC IMPROVEMENT DISTRICT NO. 7 — HERITAGE; 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 September 26, 2000, the City Council of the City of Fort Worth ("City Council") authorized the establishment of Public Improvement District No. 7 — Heritage ("District"), as a public improvement district in accordance with the Act and Resolution No. 2675; WHEREAS, on September 17, 2024, the City Council adopted Ordinance No. 27160-09-2024, approving the fiscal year 2024-2025 budget, five-year service plan, assessment plan, and tax year 2024 assessment roll for the District; WHEREAS, the City Council desires to amend the fiscal year 2024-2025 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. 27160-09-2024; 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 listed 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 2024-2025. In doing so, the City Council finds that the supplemental services and improvements set forth in the Service PIan 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. Page •i` of 3 SECTION 4. This Ordinance is cumulative of 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 5. The City Secretary is directed to cause a copy of this Ordinance to be recorded in the real property records of Tarrant County, Texas no later than the seventh (7�) day after the adopted date of this Ordinance. SECTION 6. This Ordinance takes effect and 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: I—gLf:Y Collisf2r Larry Collis er {Apr 30, 202515J9 COT) Larry Collister, Sr. Assistant City Attorney M&C: 25-0368 Adopted and Effective. April 22, 2025 ATTEST: Jannette S. Goodall, City Secretary Ordinance No. 27585-04-2025 Page 2 of 3 REVENUES F10 nssessmer"' COt W P41ymaind in Lieu of Sem rces coFW Ana.Mlem Tara: Budgeted Revera4a Use d Fued 6Ysnce Total Revenues EXPENSES hlanaa7emenl Fee 11Ll1tIM Landscaping Common Area Maintenance Security EnnaricA"Mts Advel9smg Public Events Assocuruon fffooyees Capital improvements Anrtuai Renew C,ly AdmrustrVann Fee Total Budgeted Expenses Cantributon to Fund Balance EXHIBIT A AMENDED SERVICE PLAN C ny or Fort worm Fire Year Service Ran FY 25 - FY29 PuWkc improvement District No 7 - heritage MID -YEAR ADJU5TM EStf FY24125 FY25726 FY26rn FY27Y16 FY21112! S 2.14_' 5':i8 S 2.228.208 S 2.317.337 S 2.410.030 S 4506.431 139 Cry? 206.392 205,392 205.392 206.392 18.47 9 18.473 18,473 18473 18473 S 2,419,9Tt S 2AS3.073 S 2,542,202 S 2,WS95 S 2,731.296 401.391 S 2.918.369 S 2.453.073 S 2.542,202 5 2.6U$$S S 2,731"S 5 177,71400 $ 151.011.00 S 154.03122 S 270,486.00 S 206.04000 S 2WASO.60 5 1.176,91000 5 1.216,63200 S 1,257.787,00 S 194.20300 S 196,067a6 S 202,048.80 S 102.500.00 S 104,550.00 S 106.641.00 3 500 00 $ 50000 S 500-00 S 61.We l30 5 83,130.00 $ U.792.60 S 84.804 W 5 113.039,46 S 115130025 S 664,345.IX7 S 1X000.00 S 102.000.00 S 3.000 00 5 3,000.00 5 3.00000 S 47,341.00 S 49,p61.41 S 50.844.03 $ 2 818 369 $ 2-225.051 $ 2-26T.C" $ 167.111 84 $ 160.254 06 $ 214.364.00 S 218.651.00 S 1,300,361.00 S 1.326.36622 S 206,059 78 S 210211.57 S 108.773.82 S 110.949.30 S 500.00 $ 500 0o S 86.4W.45 S 88.210.22 S 117.W6 25 $ 1 19 958-38 S 104,04000 $ 106.120 W S 3.OW 00 $ 3.00,0 00 S 62,991.00 S 54.615.93 $ 2,3511,033 $ 21"li illp 228,022 255.116 283.as" 332.435 Tow Expense S 2.818.369 S 2,453.073 $ 2.542,202 $ 2.63A 695 $ 2.731.296 Net Change in Fund Balance S i487.39t} $ 228,022 S 2$5,116 S 203.862 S 332A39 Beginning f and Balanoe, Est.nated SYra Z 3; d25.791 419.400 545422 9Li1.536 W0.510 Estmated F and Balance, End of Year 418,400 646A22 901.538 1.185.400 1.232.949 Reserve Requirement 310.916 381257 391,917 399.091) C'v" (ndet) Resorve 5 47,454 $ 265,165 S W5,621 5 T85,511 S 1,732,940 'FY2025 Assess{nent Rate = 11 145 Re 5idenL&I: $ 11 is EdmmerC tat The total budgeted costs of the improvements and services for the District for fiscal year 2024-2025 are $2,8I8,369.00. Of this amount, $2,142,508.00 will be funded by assessments collected on privately -owned parcels located in the District. The remainder of the costs will be funded by other revenue sources, including: • $249,997.00 in direct payments from the City for payment in lieu of services, which was appropriated from the General Fund balance by City Council action on September 17, 2024, and by this amendment; and • $18,473.00 in direct payments from the City for payment in lieu of assessments, which was appropriated from the General Fund balance by City Council action on September 17, 2024, and by this amendment; and • $407,391.00 transferred from the unaudited, unassigned fund balance by City council on September 17, 2024, and by this amendment. Ordinance No. 27585-•04-2025 Page 3 of 3 REVENUES AID Assessments' COFW Payment In lieu of Services COFW Assessment Total Budgeted Revenues Use of Fund Balance Total Revenues EXPENSES Management Fee Utilities Landscaping Common Area Maintenance Security Enhancements Advertising Public Events Association Employees Capital Improvements Annual Review City Administration Fee Total Budgeted Expenses Contribution to Fund Balance Total Expense Net Change In Fund Balance Beginning Fund Balance, Estimated (Yrs 2-5) Estimated Fund Balance, End of Year Reserve Requirement Over (Under) Reserve City of Fort worth Five Year Service Plan FY 25 - FY29 Public Improvement District No. 7 -Heritage MID -YEAR ADJUSTMENT FY24125 FY25126 FY26127 FY27128 FY28129 $ 2,142,508 $ 2,228,208 $ 2.317.337 $ 2.410.030 $ 2,506,431 249,997 206,392 206,392 206,392 208,392 18.473 18,473 18.473 18,473 18,473 $ 2,410,978 $ 2,453,073 $ 2,542,202 $ 2,634,895 $ 2,731,296 407,391 - - - - $ 2,818,369 $ 2,453,073 $ 2,642,202 $ 2,634,895 $ 2,731,298 $ 172,T74.00 $ 151,011.00 $ 164,031.22 $ 157,111.84 $ 160,254.08 $ 270,486.00 $ 206,040.00 $ 210,160.80 $ 214,364.00 $ 218,651.00 $ 1,176,910.00 $ 1.216,632.00 $ 1,257,767.00 $ 1,300,361.00 $ 1.326,368.22 $ 194,203.00 $ 198,087.06 $ 202.048.80 $ 206,089.78 $ 210,211.57 $ 102,500.00 $ 104,550.00 $ 106,641.00 $ 108,773.82 $ 110,949.30 $ 500.00 $ 500.00 $ 500,00 $ 500.00 $ 500.00 $ 81,500.00 $ 83,130.00 $ 84,792.60 $ 86,488.45 $ 88,218.22 $ 84,804.00 $ 113,039.46 $ 115,300.25 $ 117,606.25 $ 119,958.38 $ 684,345.00 $ 100,000.00 $ 102,000.00 $ 104,040.00 $ 106,120,80 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 47,347.00 $ 49,061.47 $ 50,844.03 $ 52,697,90 $ 54,625,93 $ 2,818,369 $ 2,225,051 $ 2,287,086 $ 2,351,033 $ 2,398,857 228,022 255,116 283,862 332,439 $ 2,818,369 $ 2.453,073 $ 2,542,202 $ 2,634,895 $ 2,731,206 $ (407,391) $ 228.022 $ 255,116 $ 283,862 $ 332,439 825,791 418,400 646,422 901,538 900,510 418,400 646,422 901,538 1,185,400 1,232,949 370,916 381,257 391,917 399,690 $ 47,484 $ 265,165 $ 509,621 $ 786,511 $ 1,232,949 'FY2025 Assessment Rate = $.145 ResidentlaU $.110 Commercial City of Fort Worth, Texas Mayor and Council Communication DATE: 04/22/25 M&C FILE NUMBER: M&C 25-0368 LOG NAME: 17PID07 MIDYEAR FY25 SUBJECT (CD 4 and CD 10) Adopt Ordinance Amending Public Improvement District 7 — Heritage Fiscal Year 2024-2025 Adopted Budget and Five -Year Service Plan; Authorize the Execution of an Amendment to the Associated Management and Improvement Services Agreement with Castle Group, LLC to Align with these Changes; and Adopt Appropriation Ordinances RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached ordinance amending Public Improvement District 7 — Heritage Fiscal Year 2024-2025 Adopted Budget and Five -Year Service Plan to reflect amendments associated with a mid year review; and direct the City Secretary to record the same in the real property records of Tarrant County, Texas no later than the seventh (7th) day after adoption by the City Council; and 2. Authorize the execution of an amendment to the associated Management and Improvement Services Agreement with Castle Group, LLC (City Secretary Contract No. 62757) to align with these changes; and 3. Adopt the attached appropriation ordinance reallocating estimated receipts and appropriations in the Park & Recreation Department of the General Fund by decreasing appropriations in the General Operating & Maintenance category in the amount of $43,605.00, and increasing appropriations in the Transfers & Other category by the same amount, for the purpose of funding the Fort Worth Public Improvement District 7 — Heritage Fund for the Payment In -Lieu of Services; and 4. Adopt the attached appropriation ordinance reallocating estimated receipts and appropriations in the Public Improvement District 7 — Heritage Fund 1) by increasing in the amount of $43,605.00, transferred from Park and Recreation Department, 2) decreasing the use of fund balance in the amount of $26,891.00, and 3) increasing other contractual services account in the amount of $16,714.00, for the purpose of funding expenditures related to the mid -year adjustment. DISCUSSION: The City of Fort Worth's Department of Economic Development administers the City's Public Improvement Districts (PIDs). The City's PID Policy outlines the need to proactively work with the City's PID management companies to oversee the services being provided within each of the PIDs. PID 7 — Heritage (Heritage P[D) is managed by Castle Group, LLC (Castle). On September 17, 2024, City Council adopted Ordinance No. 27160-09 2024, approving the Fiscal Year (FY) 2024-2025 Budget, Five -Year Service Plan, Assessment Plan, and Tax Year 2024 Assessment Roll for the Heritage PID. On December 10, 2024, following the PID Board's recommendation, the City identified the need for a new management company for the Heritage PID, and after a competitive selection process by the Heritage HOA Board, issued a termination letter to FirstService Residential effective January 31, 2025, selecting Castle Group Texas, LLC as the new management company, pending agreement approval, to serve from February 1, 2025, through September 30, 2025, for the remainder of Fiscal Year 2024-2025. On January 28, 2025, City Council authorized the execution on an agreement with Castle Group, LLC, to provide management of the improvements and services in the PID. After conducting amid -year review of the Heritage PID's budget, City staff and Castle have identified the need to increase. Heritage PID's allocations by $16,714.00 to account for $43,605.00 additional payment in -lieu of services. The additional revenue increase will result in a reduction to the original use of fund balance in the amount of $26,891.00. The primary factors driving expenditure adjustments include increased costs associated with onboarding a new management company and reductions in association employee salaries due to a position structure realignment The City's Payment In -Lieu of Services is a supplement to the PID budget and intended to provide for the standard level of improvements and services as comparable to what would be provided by the City for the taxpayers generally. Revenue Adjustments: Previously Recommended Amended Line Items Approved FY25 Mid Year FY25 Budget Budget Item Adjustment Item PID Assessments $2,142 508.00 $0.00 �$2,142,508.130 COFW �1$206,392.00 Payment in lieu $43,605.00 $249,997.00 of Services CO FW Assessment $18,473.00 $0.00 $18,473.OD Use of Fund Balance $434,282.00 ($26,891.00) $407,391.00 Totals $2,801,655.00 $16,714.00 $2,818,369.00 Expenditure Adjustments: Line Item Previously Approved FY25 Budget Item Recommended Mid -Year Adjustment Amended FY25 Budget Item Management Fee Utilities 1 $148,050.00 $270,486.00 $24,724.00 $0.00 $172,774.00 $270,486.00 Landscaping $1,176,910.00 $0.00 $1,176,910.00 Common Area Maintenance $194,203.001 $0.001 $194,203.00 Security Enhancements $102,500.001 $0.00]1 $102,500.00 Advertising :�1$500.0011 $0.00 $500.00 Public Events 11 $81,500.00 $0.00 $81,500.00 Association Employees I $110,823.00 ($26,019.00) $84,804.00 Insurance 11 $0.0011 $0.0011 $0.00 Capital Improvements 1$666,336.O0 $18,009.00 $684,345.00 Annua[ Review71 $3,0060.0:0]1 $0.00 $3,000.00 City Administration Fee $47,347.001 $0.00 $47,347.00 Totals $2,801,656.0011 $16,714.001 $ 2,818,369.00 Upon approval of the above recommendations, the total budgeted expenses for FY 2024-2025 will be,$2,818,369.00. The revised Budget and Five -Year Service Plan will take effect upon approval by City Council. The City and Castle will amend the existing management contract to reflect the mid year adjustments (City Secretary Contract No. 62757). The Heritage PID is located in COUNCIL DISTRICTS 4 & 10. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION 1 CERTIFICATION: The Director of Finance certifies that funds are currently available in the General Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds will be available in the FWPID #7 — Heritage Fund. Priorto an expenditure being incurred, the Economic Development Department has the responsibility of verifying the availability of funds. Submitted for Ci1y Manager's Offigg-byz ,lesica McEachern 5804 Originating Business Unit Head: Kevin Gunn 2015 Additional Information Contact: Crystal Hinojosa 7808 Expedited