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HomeMy WebLinkAboutOrdinance 27995-09-2025Ordinance No. 1. AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE FORT WORTH PUBLIC IMPROVEMENT 18 -TOURISM FUND FOR FISCAL YEAR 2025-2026 IN THE AMOUNT OF $7,750,000.00,FROM AVAILABLE FUNDS,FOR THE PURPOSE OF FUNDING PUBLIC IMPROVEMENT DISTRICT 18 –TOURISM FUND FY 2025-26 BUDGET; 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 in addition to those amounts allocated to the various City departments for Fiscal Year 2024-2025 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Fort Worth Public Improvement District 18 - Tourism Fund for Fiscal Year 2025-2026 in the amount of $7,750,000.00, from available funds for the purpose of funding Public Improvement District 18 Tourism Fund FY 2025-26 budget. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance 27107-09-2024 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: ___________________________________ Assistant City Attorney CITY SECRETARY _________________________ Jannette S. Goodall City Secretary ADOPTED AND EFFECTIVE: City of Fort Woth Five Year Service PlanPublic Improvement District No. 18 - ToursimFY 25/26FY 26/27REVENUESPID Assessments7,750,000$ 8,000,000$ COFW Payment in lieu of ServicesCOFW AssessmentTotal Budgeted Revenues7,750,000$ 8,000,000$ Use of Fund Balance-$ -$ Total Revenues7,750,000$ 8,000,000$ EXPENSESIncentives & Sales Efforts4,540,050$ 4,687,550$ Marketing & Research (Promotion/Advertisting)2,154,600 2,224,600 Site Visits & Familiarization Tours115,425 119,175 Cultural Enhancements577,125 595,875 Operations & Administration307,800 317,800 City Administrative Fee55,000 55,000 Total Budgeted Expenses7,750,000$ 8,000,000$ Contribution to Fund Balance-$ -$ Total Expense7,750,000$ 8,000,000$ Net Change in Fund Balance-$ -$ Estimated Fund Balance, Beginning of Year7,158,329$ 7,158,329$ Estimated Fund Balance, End of Year7,158,329$ 7,158,329$ Reserve Requirement1,333,600 1,333,600 Over (Under) Reserve5,824,729$ 5,824,729$ City of Fort Woth Budget Narrative Public Improvement District No. 18 - Toursim Revenue Assumptions FY 25/26 PID Assessments are forecasted to increase 4.75% to last year with growth in supply and increased demand related to the FIFA World Cup. Reserves are being held in support of the Convention Center Project - $2.5M in Sales Incentives for Groups and $2.5M for Marketing and Advertising to promote the new expanded Convention Center and city. We anticipate tapping into the reserves next year, in FY 26/27. Incentives & Sales Efforts Budget includes portion for sales incentives which includes purchasing meeting space at the convention center for groups and room night production incentives to book events in Fort Worth. A portion is budgeted for group convention promotions and marketing at trade shows, industry related events and publications. Additionally, a portion is budgeted towards the promotion and incentives to bring Sports related groups and events to the city. Marketing & Research (Promotion/Advertisting) Total budget includes a portion for advertising and promoting the city as a travel destination for group, business, and leisure travel. A portion is budgeted toward PR & Activations to continue to promote the Fort Worth brand. An additiona portion is budgeted for research and analytics to study tourism and travel trends, the impact of marketing efforts and insights on how to make them more impactful. Site Visits & Familiarization Tours Budgeted to bring group convention and meeting planners to Fort Worth to showcase the city, hotels, and convention center to attract future convention bookings. Cultural Enhancements Budgeted for Grants to Fort Worth based non-profit Arts related organizations that create or house events which bring tourists and enhance the city as a destination. Operations & Administration Budgeted for the administration costs related to operating the organization. City Administrative Fee Budgeted for the annual City Administration Fee related to the organization City of Fort Worth, Mayor and DATE: 09/16/25 M&C FILE NUMBER: M&C 25-0820 LOG NAME: 03PID18FY26 SUBJECT (ALL) Conduct Public Benefit Hearing for Fort Worth Public Improvement District 18 - Tourism; Adopt Ordinance (1) Approving and Adopting the Fiscal Year 2025-2026 Budget, Service Plan, Assessment Plan, and Assessment Roll, and (2) Levying Special Assessments for Fiscal Year 2025-2026; and Adopt Attached Appropriation Ordinance (PUBLIC HEARING - a. Staff Available for Questions: Holly Fortes; 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 property located in Fort Worth Public Improvement District 18 - Tourism for Fiscal Year 2025-2026; 2. Adopt the attached ordinance: (1) approving and adopting the Fiscal Year 2025-2026 budget in the amount of $7,750,000.00, service plan, assessment plan, and assessment roll (on file with the City Secretary) for the Tourism PID; and (2) levying special assessments on property located within the Fort Worth Public Improvement District 18 - Tourism (Service 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 the county in which the properties are located no later than the seventh (7th) day after adoption by the City Council; and 4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Fort Worth Public Improvement District 18 - Tourism Fund for Fiscal Year 2025-2026 in the amount of $7,750,000.00, from available funds. DISCUSSION: On August 29, 2017, the Mayor and City Council adopted Resolution No. 4837-08-2017, establishing the Fort Worth Public Improvement District No. 18, Tourism (Tourism PID). The City Council subsequently approved the expansion of the Tourism PID to include additional hotels on August 18, 2020 (Resolution No. 5264-08-2020), April 13, 2021 (Resolution No. 5382-04-2021), September 14, 2021 (Resolution No. 5467-09- 2021), April 4, 2022 (Resolution No. 5561-04-2022), May 14, 2024 (Resolution No. 5958-05-2024), and May 13, 2025 (Resolution No. 6098-05- 2025). The purpose of this benefit hearing is to receive comments from the public regarding the Fiscal Year 2025-2026 budget and service plan for the Tourism PID and the proposed assessments to be levied on each property in the Tourism PID for the 2025-2026 fiscal year. Following the public hearing, it is recommended that the City Council: adopt the attached ordinances (1) approving and adopting the budget, service plan, assessment plan, and assessment roll; (2) levying the proposed assessments; and (3) appropriating funds. The service plan only covers a period of two years because the Tourism PID expires on or about September 30, 2027, so there is no established service plan past the expiration of the Tourism PID. The improvements and services to be provided in the Tourism PID during Fiscal Year 2026 and the associated costs thereof are as follows: Fiscal Year 2026 Budget Improvements Total Budgeted Costs Incentive & Sales Efforts � $4,540,050.00 Marketing and Research (Promotion/Advertising) $2,154,600.00 Site Visits & Familiarization Tours $115,425.00 Cultural Enhancements through Marketing and promotion of the Arts $577,125.00 Operations & Administration $307,800.00 City Administrative Fee $55,000.00 Total Expenses $7,750,000.00 Texas Council Communication The total budgeted costs of the improvements and services are $7,750,000.00, all of which will be funded by the owners/operators of Tourism PID hotels with 100 or more rooms paying a special assessment at a rate of two percent of revenues they receive from a hotel room. The owners/operators may seek reimbursement in an amount equal to the special assessment from hotel guests, with such reimbursement being a mandatory charge that is subject to state and local hotel tax. On August 26, 2025, the City Council conducted a public hearing to receive comments on the proposed Fiscal Year 2025-2026 budget, two-year service plan, and 2025 assessments for the Tourism PID. Notice of the August 26, 2025, benefit hearing and this hearing were published in the Fort Worth Star-Telegram on August 8, 2025, and mailed to all hotel owners on record in the Tourism PID on August 8, 2025, in accordance with state law. In Fiscal Year 2018, the City entered into a contract with the Fort Worth Tourism Public Improvement District Corporation (FWTPIDC) and the Fort Worth Convention and Visitors Bureau (FWCVB) to manage the operations of the Tourism PID. The term of this agreement is commensurate with the term of the Tourism PID; thus, the FWTPIDC and the FWCVB will continue to manage the operations of the Tourism PID for Fiscal Year 2025- 2026. Funding will be budgeted within the FWPID #18 - Tourism Fund for Fiscal Year 2026. The Tourism PID 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 the adoption of the Fiscal Year 2026 Budget by the City Council, funds will be available in the Fiscal Year 2026 operating budget, as appropriated, in the FWPID #18 - Tourism Fund. Prior to any expenditure being incurred, the FWLab Department has the responsibility to validate the availability of funds. Submitted for City Manager's Office bk Originating Business Unit Head: Christianne Simmons 6222 Additional Information Contact: Brady Kirk 8712