HomeMy WebLinkAboutOrdinance 21933-09-2015 ORDINANCE NO. 21933-09-2015
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN
THE CULTURE AND TOURISM FUND IN THE AMOUNT OF $2,600,000.00, FROM
AVAILABLE FUNDS, FOR THE PURPOSE OF TRANSFERRING SAID FUNDS TO THE
CULTURE AND TOURISM CAPITAL PROJECTS FUND FOR THE ARENA PROJECT;
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 Fund in the amount of$2,600,000.00, from available fund, for the purpose of transferring said funds to
the Culture and Tourism Capital Projects Fund for the Arena Project.
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ordinances and appropriations are hereby expressly repealed.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.
APPROVED AS TO FORM AND LEGALITY:
..'
ocni CElro r. Assistant City Attorney ary J. e ecretary,
ADOPTED AND EFFECTIVE: September 29, 2015
Ordinance No.21933-09-2015
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL. ACTION: Approved on 9129/2015 - Ordinance No. 21932-09.201,5, 21933-09-2015
& 21934-09-2015
DATE: Tuesday, September 29, 2015 REFERENCE NO.: G-18578
LOG NAME: 25TRANSFER FUNDS2015
SUBJECT:
Adopt Ordinance Amending Section -17 of Chapter 32, Article II "Hotel Occupancy Tax" of i Code to
Add Qualified r j c as Allowable Expenditures for Hotel Occupancy Taxes, i se of
from t Debt Proceeds for a Portion of the Fiscal Year 2015 Culture Tourism Debt Service
Payments, end the Fiscal Year 2016 Budget for the Culture and Tourism % City HOT Fund, Authorize
Actions kin g $5,068,858.00 Available in the Culture Tourism Capital Projects Fund for the
Multipurpose r r j ect, Ratify Use of Unspent t Proceeds to Make Available an Additional
$4,044,792.00 for the Arena Project, Thereby Making a Total of
$9,113,650.00 Available for the Arena Project (COUNCIL I I 7)
RECOMMENDATION:
It is recommended that the i Council:
1. Adopt the attached ordinance amending Section 32-17 of Chapter 32, Article II "Hotel Occupancy "
of City Code of the City of Fort Worth (2015) as amended, to be consistent it tte law by adding
qualified projects s allowable expenditures for hotel occupancy taxes in excess of seven percent;
2. Adopt the attached appropriation ordinance increasing i c I Year 2015 receipts r ri i in
the Culture and ouri in the amount of$2,600,000.00 from v it I fund balance for purposes of
making a transfer to the ltr and uris Capital Projects Fund in support of the Arena Project;
3. Authorize the transfer of$2,600,000.00 from ulur and ouris Fund to the Culture Tourism
il Projects Fund in isc I Year 15;
4. Ratify the use and transfer of from unspent roc s from ulture and Tourism
Capital Projects Fund to the Culture and Tourism is cover a portion of the Fiscal Year
2015 debt service payments, thereby r tin surplus in that Fund which will be used to pay debt
service on other outstanding obligations in isc I Year 2016;
5. Amend the i I Year 2016 Budget for the Culture Tourism % City HOT (Hotel c ncy )
Fund by reducing Debt Transfer Out - Principal ® Convention Center and Will Rogers Memorial Center in
amount the of$2,468,858.00 n increasing a i l Transfer® Pay as You Go Capital in the amount of
for use on the r Project;
6. Ratify the use of$4,044,792.00 from unspent debt proceeds in the Culture and Tourism Capital
Projects r the Fiscal Year 2015 pay-as-you-go capital o ion of the Cattle Barn No. 2/Tower Drive
Project, r I isi nrstric in uli Capital Projects Fund in the same amount for
use on the Multipurpose Arena Project; and
7., Adopt the attached r ri tion ordinance increasing receipts and appropriations in the Culture and
Lo ri e: 25TRANSFER FLTNDS2015 Page I of 3
Tourism Capital Projects Fund 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 for the Multipurpose Arena and associated venue project in
accordance with the recently adopted Preliminary Funding Plan (Funding Plan) (Resolution No. 4498-08-
2015). Actions include amending the City Code to take 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 of the City's initial transfer into the project fund, which will occur following ERP go-live and the
establishment of dedicated funds and accounts for the project.
Amending City Code:
Since 1995, the 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 Will Rogers Memorial Center (WRMC). 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 of the 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 bond 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 identified unspent debt
proceeds of$7.7 million from the 2010 Certificates of Obligation (COs) that were issued to fund the
WRMC Multipurpose Equestrian Building at WRMC (project surplus). Following review of FY2015 and
FY2016 budgets and planned expenditures and discussions with bond counsel, Staff proposes the debt
proceeds be programmed as follows:
• $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 third
bullet points above, constitutes a total of$9,113,650.00 that is allocated to the Arena Project by adoption
of this 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 II system. In addition to the 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 will serve 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 $2,600,000.00 3)) GG04 538040 0241000 $2,600,000.00
3)) C302 476004 240000400415 $2,600,000.00
7)) C302 476004 24000"0400415 $5,068,858.00
7)) C302 541200 240000400415 $5,068,858.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Kirk Slaughter (2501)
Additional Information Contact: Betty Tanner (2502)
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