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Home My WebLink About28406-04-2026 - City Council - OrdinanceORDINANCE NO.28406-04-2026 AN ORDINANCE AMENDING THE FISCAL YEAR 2025-2026 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 16, 2025, the City Council adopted Ordinance No. 27986-09-2025, approving the fiscal year 2025-2026 budget, five-year service plan, assessment plan, and tax year 2025 assessment roll for the District; WHEREAS, the City Council desires to amend the fiscal year 2025-2026 budget and five-year service plan by replacing it with the "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. 27986-09-2025; 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 2025-2026. In doing so, the City Council finds that the supplemental services and improvements set forth in the Service Plan 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 1 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 (71') 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. hI17_Y_8f.MIXI].71- 1►1MIla APPROVED AS TO FORM ATTEST: AND LEGALITY: Trey Qualls, Sr. Assistant City Attorney Jannette S. Goodall, City Secretary M&C: 26-0268 Adopted and Effective:April 28, 2026 d F0RT��aaTT � � �00 000000000 Y� 0 015 f �° oA�� 0vo °_� 0 0 00 �44 11 EXAsaIIZ5a Ordinance No. 28406-04-2026 Page 2 of 3 EXHIBIT A AMENDED SERVICE PLAN City of Fort Woth Five Year Service Plan- Mid -Year Adjustment PtdAC . . . . t District No 7 - Hentage FY25M FY 26127 FY 27,12E FY 28/29 FY 20M REVENUES PID Asse5stnents $ 2,16LO67 S 2,225,920 $ 2.292.697 S 2,361A78 S 2, W,322 Cqf W Payment In lint of Serv.ccs 266.068 274,050 282,272 M.743 299,467 PIDGenerated Revenae 1,050 1.050 1.350 1.050 L350 Total Bufected Revenues $ 2448,912 $ 2.521.727 $ 2.598,72E $2.873.975 S 2,753,541 Use.of Fund 8•ance S 563,774 S 90,fd8 1 1 5 Total Reveues $ 3.012.86E $ 2.81=4 $2,598,72E $2.873.975 S 2,753,541 DEPENSE8 Mana,ttrsentfe,e s 188,81E $ 197.594 s 295.446 i 200,375 S 204,383 utiOles 7WX0 M.629 295.47) 301,3W 307,357 Landscap.ng 1.2931865 L319,742 1,346,137 1,373,0W 1,400,521 CemntatArea Maintenance 217,701 222,055 21D,D58 216,W 722,851 SecutIVf rhancr.nnn 105,000 94,000 95.880 97,74E 99,754 I.tl>.c^.IsnC 7.700 500 5W 500 5W 1`6ulklvent 90,000 93,840 95,717 97.631 99.584 Assocanuntmpiryres 511,84 60,W0 6L720 67,445 63,694 Capdallnvt:nectems 709,W 286,559 200,OOD 206,OOD 212.180 AnnuaiP&%1&r 6,000 3,000 3,000 3,0W 3,01v1 CItVAdminissalive Im 48,957 50.435 51.935 53,480 55,071 Total Budgeted Ecpenses $ 3.012,88E S 2.812, 37A S 2.558, 315 $2.611.978 S 2.er38.893 CcnttpxttantetwicBalance S S -10,411 S 61,997 S 54.ti.t8 Total Expense ; 3.01$8EE S 2.B32,374 S 2.598.72E $2.873-975 $ 2.153.541 Net Change In Fund Balance $ (50,774) S {90,648) S 40,411 S 81.9W S 84.848 1inJBalamr,Bceirru%�ulYear, SL319,493 S 755,719 S 665,071 i 705,482 S 767.479 Estimated find Balance. End of Yew = 755,719 S 665,071 S 705,482 = 767.479 $ 852.127 tlencrve limuuemem 435,483 426,13E 435,417 444,905 444.905 Over (llltder) Reserv9 S 320.23E S 236.9M = 270.00E = 52 An S 407= • FY2S,26 Assess meet Rate = S.145 Re sdenuaU $ 125 Commercial The total budgeted costs of the improvements and services for the District for fiscal year 2025-2026 are $3,012,686.00. Of this amount, $2,161,087.00 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: • $266,068.00 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 16, 2025, and by this amendment; • $1,050.00 in additional funds to be transferred from revenue generated by the PID; and • $563,774.00 transferred from the unaudited, unassigned fund balance by City council on September 16, 2025, and by this amendment. Ordinance No. 28406-04-2026 Page 3 of 3 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