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Home My WebLink About28407-04-2026 - City Council - OrdinanceORDINANCE NO.28407-04-2026 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE PUBLIC IMPROVEMENT DISTRICT 7 — HERITAGE GLEN FUND, FROM (1) AVAILABLE PID GENERATED REVENUE AND (2) AVAILABLE UNRESERVED FUND BALANCE, IN THE AMOUNT OF $162,216.00, FOR THE PURPOSE OF FUNDING MID -YEAR BUGET ADJUSTMENTS; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS THAT: SECTION 1. In addition to those amounts allocated to the various City departments for Fiscal Year 2025-2026 in the Budget of the City Manager, there shall also be increased estimated appropriations in the Public Improvement District 7 — Heritage Fund in the amount of $162,216.00, from (1) available PID generated revenue, and (2) available, unreserved fund balance, for the purpose of funding mid -year budget adjustments. SECTION 2. 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. This ordinance shall be cumulative of Ordinance 27979-09-2025 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: E► l Assistant City Attorney ADOPTED: April 28. 2026 EFFECTIVE: April 28. 2026 Jannette S. Goodall City Secretary Ordinance No. 28407-04-2026 Page 1 City of Fort Worth Five Year Service Plan: Mid -Year Adjustment Public Improvement District No. 7 - Heritage FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 REVENUES PID Assessments $ 2,161,087 $ 2,225,920 $ 2,292,697 $ 2,361,478 $ 2,432,322 COFW Payment in lieu of Services 266,068 274,050 282,272 290,740 299,462 PID Generated Revenue 1,050 1,050 1,050 1,050 1,050 Total Budgeted Revenues $ 2,448,912 $ 2,521,727 $ 2,596,726 $ 2,673,975 $ 2,753,541 Use of Fund Balance $ 563,774 $ 90,648 $ - $ - $ - Total Revenues $ 3,012,686 $ 2,612,374 $ 2,596,726 $ 2,673,975 $ 2,753,541 EXPENSES Management Fee $ 188,818 $ 192,594 $ 196,446 $ 200,375 $ 204,383 Utilities 283,950 289,629 295,422 301,330 307,357 Landscaping 1,293,865 1,319,742 1,346,137 1,373,060 1,400,521 Common Area Maintenance 217,701 222,055 210,058 216,360 222,851 Security Enhancement 105,000 94,000 95,880 97,798 99,754 Advertising 7,700 500 500 500 500 Public Event 92,000 93,840 95,717 97,631 99,584 Association Employees 58,843 60,020 61,220 62,445 63,694 Capital Improvements 709,852 286,559 200,000 206,000 212,180 Annual Review 6,000 3,000 3,000 3,000 3,000 City Administrative Fee 48,957 50,435 51,935 53,480 55,071 Total Budgeted Expenses $ 3,012,686 $ 2,612,374 $ 2,556,315 $ 2,611,978 $ 2,668,893 Contribution to Fund Balance $ - $ - $ 40,411 $ 61,997 $ 84,648 Total Expense $ 3,012,686 $ 2,612,374 $ 2,596,726 $ 2,673,975 $ 2,753,541 Net Change in Fund Balance $ (563,774) $ (90,648) $ 40,411 $ 61,997 $ 84,648 Fund Balance, Beginning of Year $ 1,319,493 $ 755,719 $ 665,071 $ 705,482 $ 767,479 Estimated Fund Balance, End of Year $ 755,719 $ 665,071 $ 705,482 $ 767,479 $ 852,127 Reserve Requirement 435,483 426,138 435,417 444,905 444,905 Over (Under) Reserve $ 320,236 $ 238,933 $ 270,066 $ 322,575 $ 407,223 *FY25/26 Assessment Rate = $.145 Residential/ $.125 Commercial City of Fort Worth, Texas Mayor and Council Communication DATE: 04/28/26 M&C FILE NUMBER: M&C 26-0268 LOG NAME: 03PID07 MIDYEAR FY26 SUBJECT (CD 4 and CD 10) Adopt Ordinance Amending Public Improvement District 7 — Heritage Fiscal Year 2025-2026 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 Ordinance RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached ordinance amending Public Improvement District 7 — Heritage Fiscal Year 2025-2026 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; 2. Authorize the execution of an amendment to the associated Management and Improvement Services Agreement with Castle Group, LLC (City Secretary Contract No. 64268) to align with these changes; and 3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Public Improvement District 7 — Heritage Fund in the amount of $162,216.00: 1) $1,050.00 from available revenue generated by the PID, and 2) $161,166.00 from available, unreserved fund balance, for the purpose of funding mid -year budget adjustments. DISCUSSION: The City of Fort Worth's (COFW) FWLab Department 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 16, 2025, City Council adopted Ordinance No. 27986-09-2025, approving the Fiscal Year (FY) 2025-2026 Budget, Five -Year Service Plan, Assessment Plan, and Tax Year 2025 Assessment Roll for the Heritage PID. After conducting a mid -year review of the Heritage PID's budget, City staff and Castle have identified the need to increase Heritage PID's appropriations by $162,216.00. This adjustment reflects an increase of $1,050.00 in PID generated revenue as well as the use of available fund balance to support program enhancements. The primary factors driving expenditure adjustments include adjusted management fees, additional investments in landscaping, fence, and wall maintenance, and addressing slope failure. In addition to PID Assessments, the Heritage PID also receives funding from the following sources: 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. The City of Fort Worth Payment In -Lieu of Assessment is an allocation to the PID budget for assessments the City would pay on City -owned properties in the Heritage PID, if the City was not a tax-exempt entity. Neither of these revenue sources is changing in the current update to the Five -Year Service Plan. Revenue Adjustments: Previously Line Items Approved FY26 Budget Item PID $2,161,087.00 Assessments COFW Payment In- 266,068.00 Lieu of Services Recommended Amended Mid -Year FY26 Budget Adjustment Item $0.00 $2,161,087.00 0.00 266,068.00 COFW 20,707.00 Assessment 0.00 20,707.00 PID Generated Revenue Use of Fund Balance Totals 0.00 1,050.00 1,050.00 402,608.00 $2,850,470.00 Expenditure Adjustments: Previously 161,166.00 563,774.00 $162,216.00 $3,012,686.00 Approved Recommended Amended FY26 Budget Mid -Year FY26 Budget Line Item Item Adjustment Item Ianagement Fee $185,900.00 $2,918.00 $188,818.00 (Utilities _ 283,850.00 100.00 283,950.00 IlLandscaping 1,268,865.00 25,000.00 1,293,865.00 lCommon Area Maintenance 181,572.00 36,129.00 217,701.00 lSecurity Enhancements 105,000.00 0.00 105,000.00 (Advertising 500.00 7,200.00 7,700.00 (Public Events 85,000.00 7,000.00 92,000.00 IlAssociation Employees 57,974.00 869.00 58,843.00 IlCapital improvements 629,852.00 80,000.00 709,852.00 JAnnual Review 3,000.00 3,000.00 6,000.00 IlCity Administration Fee 48,957.00 0.00 48,957.00 lTotals $2,850,470.00 $162,216.00 $ 3,012,686.00 Upon approval of the above recommendations, the total budgeted expenses for FY2025-2026 will be $3,012,686.00. 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. 64268). Funding will be budgeted within the FWPID #7 — Heritage Fund for Fiscal Year 2026. Funding is available for appropriation in the fund balance of the FWPID# 7 - Heritage Fund. The current balance is $2,211,125.28, after this M&C available balance will be $2,049,959.28. 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 FWPID #7 - Heritage fund and in the unreserved fund balance of the FWPID #7 - Heritage fund and, upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the FWPID #7 - Heritage Fund to support the approval of the contract amendment. Prior to an expenditure being incurred, the FWLab Department has the responsibility of verifying the availability of funds. Submitted for Citv Manaaer's Office bv: Oriainatina Business Unit Head: Christianne Simmons 6222 Additional Information Contact: Brady Kirk 8712