The City of Fort Worth administers the City's Public Improvement Districts (PIDs), in accordance with Chapter 372 of the Texas Local Government Code. The City Policy and Guidelines provides for Staff to conduct a mid-year review of the annual budget of all PIDs and recommend adjustments as needed so the actual expenditures correspond with budgeted expenses. The City contracts with FirstServices Residential Inc., (FSR) to manage the Park Glen PID. Park Glen has identified the need to increase the beautification efforts throughout the District by increasing the Fence Maintenance and Holiday Lighting budgets. As stated by the Park Glen citizens advisory board, numerous fences in the District are in a state of disrepair and require replacement. FSR has also identified an unexpected charge in Fiscal Year 2016 for services in Fiscal Year 2015 to the Communications (Newsletter) budget that requires an increase in appropriations in order to maintain compliance with City policies regarding annual meeting notification.
According to the City's Policy and Guidelines for Public Improvement Districts, reserves should be maintained to cover the first three months for the fiscal year, approximately 25 percent of assessments, until tax receipts are received. Furthermore, reserves should not exceed 75 percent of average yearly assessments at any time. At the beginning of the fiscal year, prior year unspent assessments for PID 6 were estimated at $898,937.00, or 74.6 percent of the most recent three-year average assessment rate. These unspent revenues from prior years will be utilized to fund the additional expenses in the current fiscal year. Staff recommends increasing appropriations to avoid breaching the 75 percent cap, while also funding needed repairs and expenses in the District.
Line Items to be Adjusted | Previously Approved FY16 Budget Item | Recommended Mid-Year Adjustment | Amended FY16 Budget Item | | Fence Maintenance | $364,319.00 | $200,000.00 | $564,319.00 | | Communications (Newsletter) | $4,000.00 | $4,500.00 | $8,500.00 | | Holiday Lighting | $17,125.00 | $250.00 | $17,375.00 | | Total Budget Expenses | $1,654,154.00 | $204,750.00 | $1,858,904.00 |
Staff recommends an increase of $200,000.00 in the Fence Maintenance line item; an increase of $4,500.00 in the Communications (Newsletter) line item, and an increase of $250.00 in the Holiday Lighting line item for a total increase of $204,750.00. Upon approval, the total budgeted expenses for Fiscal Year 2016 will be $1,858,904.00. This increase in expenses will be offset by a corresponding decrease in the unaudited, unassigned fund balance for the Fort Worth Public Improvement District No. 6 - Park Glen Fund. The revised Budget and Five Year Service Plan will take effect upon approval. The Park Glen PID is located in COUNCIL DISTRICT 4. This M&C does not request approval of a contract with a business entity. |
