HomeMy WebLinkAboutOrdinance 21932-09-2015 ORDINANCE NO. 21932-09-2015
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN
THE CULTURE AND TOURISM CAPITAL PROJECTS FUND IN THE AMOUNT OF
$5,068,858.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF FUNDING THE
VENUE PROJECT THAT INCLUDES THE NEW MULTIPURPOSE ARENA ADJACENT TO
THE WILL ROGERS MEMORIAL CENTER; 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 2014-2015 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Culture and
Tourism Capital Projects Fund in the amount of$5,068,858.00, from available funds, for the purpose of funding
the Venue Project that includes the new Multipurpose Arena adjacent to the Will Rogers Memorial Center.
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 No. 21457-09-2014 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ordinances and appropriations are hereby expressly repealed.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.
APPROVE AS TO FORM AND LEGALITY:
I
Denis McElroy, Assistant City Attorney a J. Ci y.._ecretary
ADOPTED AND EFFECTIVE: September 29, 2015
Ordinance No. 21932-09-2015
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/29/2015 - Ordinance No. 21932-09-2016, 21933-09-2015
& 21934-09-2015
DATE: Tuesday, September 29, 2015 REFERENCE NO.. G-18578
LOG NAME: 25TRANSFER FUNDS2015
SUBJECT:
Adopt Ordinance Amending Section 32-17 of Chapter 32, Article 11 "Hotell Occupancy Tax" of City Code to
Add Qualified Projects as Allowable Expenditures for Hotel Occupancy Taxes, Ratify Use of$2,468,858.00
from Unspent Debt Proceeds for a Portion of the Fiscal Year 2015 Culture and Tourism Debt Service
Payments, Amend the Fiscal Year 2016 Budget fort e Culture and Tourism 2% it HOT Fund, Authorize
Actions Making $5,068,858,,00 Available in the Culture and Tourism Capital Projects Fund for the
Multipurpose Arena Project, Ratify Use of Unspent Debt Proceeds to Make Available an Additional
$4,044,792.00 for the Arena Project, and Adopt Appropriation Ordinances, Thereby Making a Total of
$9,113,650.00 Available fort e Arena Project (COUNCIL DISTRICT 7)
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RECOMMENDATION:
It is recommended that the City Council"
1. Adopt the attached ordinance amending Section 32-17 of Chapter 32, Article 11 "Hotel Occupancy Tax"
of City Code of the City of Fort Worth (2015) as amended, to be consistent with State law by adding
qualified projects as allowable expenditures for hotel occupancy taxes in excess of seven percent-,
2. Adopt the attached appropriation ordinance increasing Fiscal Year 2015 receipts and appropriations in
the Culture and Tourism Fund in the amount of$2,600,000,00 from available fund balance for purposes of
making a transfer tot Culture and Tourism Capital Projects Fund in support of the Arena Project;
3. Authorize the transfer of$2,600000,00 from the Culture and Tourism Fund t o t he Culture and Tourism
Capital Projects Fund in Fiscal Year 2015;
4. Ratify the use and transfer of$2,468,858,00 from unspent debt proceeds from the Culture and Tourism
Capital Projects Fund to the Culture and Tourism Debt Service Fund to cover a portion oft Fiscal Year
2015 debt service payments, thereby creating a surplus in that Fund which will be used to pay debt
service on other outstanding obligations in Fiscal Year 2016;
5. Amend the Fiscal Year 2016 Budget for the Culture and Tourism 2% City HOT (Hotel Occupancy Tax)
Fund by reducing Debt Transfer Out- Principal - Convention Center and VVill Rogers Memorial Center in
the amount of$2,468,858.00 and increasing Capital Transfer- Pay as You Go Capital in the amount of
$2,468,858,,00 for use on the Arena Project-
6. Ratify the use of$4,044,792.00 from unspent debt proceeds in the Culture and Tourism Capital
Projects Fund fort Fiscal Year 2015 pay-as-you-go capital portion oft Cattle Barn No. 2/1-ower Drive
Project, replenishing unrestricted cash in the Public Events Capital Projects Fund in the same amount for
use on the Multipurpose Arena Project; and
7. Adopt the attached appropriation ordinance increasing receipts and appropriations in the Culture and
[.,ognante: 251TRANSFER.FUNDS2015 Pagel of
Tourism Capital Projects and in the amount of$5,068,858,00 from transferred revenues, resulting in a
total of$9,113,650.00 being available in the Capital Projects Fund for the Arena Project in Fiscal Year
2015.
.............
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take actions and realign resources in
order to facilitate the City's initial funding fort e Multipurpose Arena and associated venue project in
accordance with the recently, adopted Preliminary Funding Plan (Funding Plan) (Resolution No. 4491 -06-
15). Actions include amending the City Code t o t ake advantage of recent state-law changes that
provide greater flexibility in the use of a portion of the City's Hotel Occupancy Tax (HOT) revenue and
reallocating certain expenditures among available funding sources in order to free up resources in
preparation oft City's initial transfer into the project fund, which will occur following ERP go-live and the
establishment of dedicated funds and accounts fort e project,
Amending City Code.
Since 1 City has been authorized to collect HOT at the rate of nine percent of the cost of a
room. However, the use of revenues from HOT imposed at a rate of more than seven percent is limited
under state law. In 2013, state law was amended to expand the list of allowed uses to include a "qualified
project,"which is a defined concept that encompasses the Venue Project that includes the New
Multipurpose Arena adjacent to the all Rogers Memorial Center (WRIVIC). Approval of this M&C will
amend the Code of the City of Fort Worth to add qualified projects as allowable expenditures for hotel
occupancy taxes in excess of seven percent.
Reallocating Resources.
This M&C will also take actions to begin implementation oft e Council-approved funding plan adopted via
Resolution No. 4498-08-2015. The Funding Plan anticipated initial funding and on-going contributions for
the Arena. The initial allocation of funds involves adjusting the programming of unspent on proceeds,
excess capital project funding, fund balance, and current revenue.
Unspent Debt Proceeds and Related Issues:
Earlier this year in the process of cleaning-up capital projects and funds, Staff identifi ed unspent debt
proceeds of$7.7 million from the 2010 Certificates of Obligation (COs) that were issued to fund the
WRIVIC Multipurpose Equestrian Building at WR (project surplus). Following review of FY2015 and
FY2016 budgets and planned expenditures and discussions with and counsel, Staff proposes the debt
proceeds be programmed as folIows.
• $456,569.80 — Previously spent on Cattle Barn No. 2 Change Order(M&C C-27290) and miscellaneous
eligible capital projects
• $4,044,792.00 ® Be substituted as the funding source for eligible FY2015 pay-as-you-go capital projects
at WRMC, thereby creating excess capital funding in that amount in the Culture and Tourism Capital
Projects Fund originally budgeted for those projects (Recommendation 5)
• $2,468,858— Substituted as the funding for FY2015 debt service payments on the 2010 COs, creating a
surplus in the Debt Service Fund to make FY2016 debt service payments on other debt and make
available that same amount in the Culture, and Tourism City 2% HOT Fund originally budgeted for those
payments (Recommendation 4 and 6)
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• $1,178,194.00 —To be transferred in FY2016 for debt service payments on the 2010 COs in accordance
with adopted FY2016 budget (October 27)
Fund Balance:
As of this date, the Culture and Tourism Fund has available excess fund balance for the appropriation and
transfer of$2.6 million to the Culture and Tourism Capital Projects Fund for the arena project. Approval of
this M&C (Recommendations 2, 3, and 7) moves that amount to the Capital Projects Fund as a holding
place until dedicated project funds and accounts are established for the project following ERP go-live.
The transferred fund balance when added with to the $6,513,584.00 identified in the second and it
bullet points above, constitutes a total of$9,113,650.00 that is allocated to the Arena Project by adoption
oft is M&C.
Next Steps:
On October 27, 2015, Staff anticipates bringing back an M&C to move money from the Culture and
Tourism Capital Projects Fund to dedicated project funds and the accounts that will be established
following go-live of the ERP 11 system. In addition tot money identified and allocated in this M&C, Staff
anticipates that an additional $3,085,609.00 in fund balance will be available in the Culture and Tourism
Fund following the close of FY2015, meaning a total anticipated transfer of$12,199,250.00 is expected to
be recommended on that date.
That M&C will also move the remaining unspent debt proceeds identified in the final bullet point above to
the Debt Service Fund for the purpose of paying a portion of the FY2016 debt as anticipated by the
FY2016 budget.
The project is physically located in COUNCIL DISTRICT 7, but ills Fort Worth residents in ALL
COUNCIL DISTRICTS,,
...........
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations,
funds will be available in the current capital budget, as appropriated, of the Culture and Tourism Capital
Projects Fund and the Culture and Tourism Operating Fund.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
2)) GG04 538040 0241000 V&Q_0000.QQ 3
JLGQ04 538040 0241000 $I �o 0 0-Mo
3)) C302 476004 240000400415 2 600.000.00
C302 476004 24000040C?415 J:,063,356.00
7)) C302 541200 240000400415 5 068,858,00
. ...............
CERTIFICATIONS:
Submitted for City Manager's Office.,by: Susan Alanis (81 80)
Originating Department Head: Kirk Slaughter (2 1)
Additional Information Contact: Betty 'Tanner (2502)
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