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HomeMy WebLinkAbout26-0045 - 2026-03-31 - Informal ReportINFORMAL REPORT TO CITY COUNCIL MEMBERS No. 26-0045 To the Mayor and Members of the City Council March 31, 2026 Page 1 of 3 SUBJECT: UPDATE ON FISCAL YEAR 2026 MID -YEAR ADJUSTMENTS FOR OPERATING PIDS AND TOURISM PID This Informal Report provides an update on the recommended mid -year budget and five-year service plan adjustments for certain operating Public Improvement Districts (PID) as well as a petition to expand the Tourism PID, both of which will be presented to the City Council on April 28, 2026 for consideration. Backqround Information An operating Public Improvement District is a defined geographical area and a tourism Public Improvement District is a noncontiguous area consisting only of hotels. PIDs are established to provide specific types of improvements or maintenance which are financed by assessments against the property owners (operating) or the consideration paid for occupancy of a sleeping room (tourism) within the PID boundaries. The City of Fort Worth FWLab Department administers the City's PIDs in accordance with Chapter 372 of the Texas Local Government Code (TLGC) and the City's established policies. FWLab staff proactively worked with the PID managers and boards to review necessary budgetary adjustments for FY2026. Mid-vear Adiustments Below is a summary of the recommended budget adjustments for each Operating PID: The following PIDs are requesting the use of fund balance for additional expenditures that have been identified during the fiscal year: • PID 1 — Downtown: $48,200.00. The primary changes include increased funding for tree lighting and maintenance, enhanced landscaping, and additional security to support increased visitors during the 2026 World Cup. • PID 6 — Park Glen: $210,500.00. The primary changes include increased funding for updates and improvements to a disc golf course, additional tree plantings, and increased landscape enhancements and maintenance. Adjustments also include a decrease in holiday lighting as new decorations were not needed this year. • PID 7 — Heritage: $162,216.00. The primary changes include a 3% increase to management fee, additional landscape and masonry repairs, and an increase in exposition wall and landscape enhancement projects. • PID 15 — Sun Valley: $31,287.00. The primary changes include increased maintenance costs for security cameras, a permanent entry sign, and street sign toppers. • PID 19 — Historic Camp Bowie: $79,094.00. The primary changes include increases in maintenance for banner poles, landscaping, security, and marketing. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 26-0045 To the Mayor and Members of the City Council March 31, 2026 Page 2 of 3 SUBJECT: UPDATE ON FISCAL YEAR 2026 MID -YEAR ADJUSTMENTS FOR OPERATING PIDS AND TOURISM PID The following PIDs are requesting to reallocate funds to align expenses with actual activities, however, the overall total expenditures are not changing: • PID 11 — Stockyards. The reallocations are attributable primarily to a decrease in anticipated website fees and irrigation plans for trees that are no longer being planted, and an increase in holiday decorations, installment of E. Exchange signage, and the addition of a visitor center monitor to provide district -related information to visitors. • PID 20 — East Lancaster. The reallocations are attributable primarily to an increase in litter abatement contract costs and conducting an additional audit, coupled with a decrease in contribution to fund balance. The following PIDs request a decrease in overall expenditures to align budget with actual expenses: • PID 12 — Chapel Hill: ($2,629.00). The primary changes include a reduction in landscaping scope and cancelled fountain installation plans, and an increase to install new picnic tables and trash cans. • PID 21 — Las Vegas Trail: ($829.00). The primary changes include increasing contribution to fund balance through realigning community center and security expenses. Service Eliqibilitv Criteria Review Over the past year, staff has reviewed and clarified eligible maintenance activities for the use of PID funds within residential HOA communities to ensure consistent application of service standards, particularly where easements, HOA-owned areas, and adjacent public improvements intersect. PIDs 6, 7, and 12 are impacted by this effort. The current midyear adjustments are expected to reflect these clarifications, with formal policy updates to follow later this year to codify and support the framework. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 26-0045 To the Mayor and Members of the City Council March 31, 2026 Page 3 of 3 SUBJECT: UPDATE ON FISCAL YEAR 2026 MID -YEAR ADJUSTMENTS FOR OPERATING PIDS AND TOURISM PID Petition to Expand TPID Section 372.0121 of the TLGC allows the City Council to include additional properties in the Tourism PID if (i) the property is a hotel, and (ii) a sufficient number of record owners of real property currently included and proposed to be included in the TPID have consented to be included by signing the original petition or by signing a petition or written consent to include property in the TPID. The TLGC requires the petition to be signed by the (1) record owners of taxable real property liable for assessment that constitute more than 60.00% of the appraised value, and (2) more than 60% of either (i) all record owners liable for assessment, or (ii) the area of all taxable property liable for assessment within the Tourism PID as determined by the current appraisal roll of the appraisal district. If the addition of the new properties results in these numbers dropping at or below the 60.00% threshold, then the properties may not be added. The owners of the following hotel properties petitioned to be included in the Tourism PID: a. Crescent West 71", 3300 Camp Bowie Blvd, Fort Worth, TX 76107 b. Home 2 Suites, 6730 NW Loop 820, Fort Worth, TX 76135 c. Cambria Hotel, 925 Jerome St, Fort Worth, TX 76104 This results in an increase to 86.30% of the appraised value of taxable real property liable for assessment, 72.04% for the area of all taxable real property liable for assessment, and 69.84% of record owners liable for assessment. Because the percentages are still above the 60.00% threshold, the requirements of the Texas Local Government Code are met. For questions, please contact Brady Kirk, Assistant Director of the FWLab Department, via e-mail to Bradv.Kirk(a)fortworthtexas.gov. Jesus "Jay" Chapa City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS