HomeMy WebLinkAboutOrdinance 27586-04-20250 rd i n a n ce No. 27586-04-2025
AN 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; 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 2024-2025, as enacted by Ordinance 27107-09-
2024, as amended, is hereby further amended to make the following reallocations to 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.
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 j udgment 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 27107-09-2024, 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said prior ordinances and appropriations are hereby expressly repealed.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: CITY SECRETARY
1-am Collis-f r
Larry Cotlister (Apr 30, 2025 15:19 CDT)
Assistant City Attorney
ADOPTED AND EFFECTIVE: April 22, 2025
3annette S. Goodall
City Secretary
_'z:Q6MMni1 w
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
REVENUES
PID Assessments•
$ 2,142,508 $ 2,228,208 $
2,317,337
$ 2,410,030
$ 2,506,431
COFW Payment in lieu of Services
249,997 206,392
206.392
206,392
206.392
COFW Assessment
18,473 18,473
18.473
18,473
18.473
Total Budgeted Revenues
$ 2,410,978 $ 2,453,073 $
2,542,202
$ 2,634,895
$ 2,731,296
Use of Fund Balance
407,391 -
-
-
-
Total Revenues
$ 2,818,369 $ 2,453,073 $
2,542,202
$ 2,63095
$ 2,731,296
EXPENSES
Management Fee
$
172,774.00
$
151,011.00
$
154,031.22
$
157,111.84
$
160,254.08
Utilities
$
270,486.00
S
206,040.00
$
210,160.80
$
214,364.00
$
218,651.00
Landscaping
S
1,176,910.00
$
1,216,632.00
S
1,257,767.00
$
1,300,351.00
$
1,326,368.22
Common Area Maintenance
$
194,203.00
5
198,087.06
$
202,048.80
$
206,089.78
$
210.211.57
Security Enhancements
$
102,500.00
$
104,550.00
$
106,641.00
$
108,773.82
$
110.949.30
Advertising
$
500.00
$
500,00
$
500.00
$
500.00
$
500.00
Public Events
$
81,500.00
$
83,130.00
$
84,792.60
$
86,488.45
$
88,218.22
Association Employees
$
84,804.00
$
113,039.46
$
115,300.25
$
117,606.25
$
119,958.38
Capital Improvements
$
684,345.00
$
100,000.00
$
102,000.00
$
104,040.00
$
106.120.80
Annual Review
$
3,000.00
$
3,000.00
$
3,000.00
$
3,000.00
$
3,000.00
City Administration Fee
$
47,347.00
$
49.061.47
$
50,844.03
S
52,697.90
$
54,625.93
Total Budgeted Expenses
$
2,818,369
$
2,225,051
$
2,287,086
$
2,361,033
$
2,398,867
Contribution to Fend Balance
228.022
255.116
283,862
332,439
Total Expense
$
2,816,369
$
2,453.073
$
2,542,202
$
2,634,895
$
2.731,296
Net Change In Fund Balance
$
(407,391)
$
228,022
$
255,116
$
283,862
$
332,439
Beginning Fund Balance, Estimated (Yrs 2-5)
825,791
418,400
646.422
901,538
900,510
Estimated Fund Balance, End of Year
418,400
646,422
901.538
1.185.400
1,232,949
Reserve Requirement
370,916
381,257
391.917
399,890
Over (Under) Reserve
$
47,484
$
265,165
$
609,621
$
785,511
$
1,232,949
'FY2025 Assessment Rate = $.145 Resldentlall $.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 (71h) 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. 62767) 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 PID) 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 a mid year review of the Heritage P1D'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
$2.142.508.00
$0.00
$2,142,508.00
Assessments
COFW
�L06,392.00
F$249,997.0101
Payment in lieu
$43,605.00
of Services
COFW
Assessment
$t8,473.00
$0.00
$18,473.00
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:
Previously
Approved
Recommended
Amended
FY25 Budget
Mid -Year
FY25 Budget
Line Item
Item
Adjustment
Item
Management Fee
$148,050.001
$24,724.00
$172,774.00
Utilities
I $270,486-001L
$0.001
$270,486.00
Landscaping
$1,176.910.00
$0.00
$1,176,910.00
Common Area Maintenance
$194,203.00
$0.001
$194,203.00
Security Enhancements
1 $102,500.0011
$0.001
$102,500.00
Pudblic Events
'$81,,500.00
$0.00
$81,,500.00
Association Emp[oyees7
Insurance
$110.823.00
$0.0011
($26,019.00)
$0.00
$84,804.0 1
$0.00
Capital Improvements
Annual Review 1
City Administration Fee
$666,336,.001
$3,000.00
$47,347.001
$18,009.00
F $0.001
$0.0011
$684,345.00
$3,000.00
$47,347.00
Totals
.$2,8011,655.0-011
$16,714.0011
$ 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 ! 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. Prior to an expenditure being
incurred, the Economic Development Department has the responsibility of verifying the availability of funds.
Submitted for Cily Manager's
Office b •
Jesica McEachem
5804
Origii3ating Business
Unit Head:
Kevin Gunn
2015
Additional Information
Contact:,
Crystal Hinojosa
7808
Expedited