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 Downtown Fort Worth, Inc. (DFWI), to manage the Downtown PID. DFWI has identified the need to increase the budgeted Management Fee line item due to the reclassification of administrative expenditures at the City's direction. Additionally, DFWI has requested to shift funds to the Insurance line item due to an unforeseen increase in their insurance rates. Finally, DFWI has identified a potential year end cost overrun in the Annual Review (Audit) line item related to tax documentation preparation for the District. This increase in appropriations will be completely offset by projected end of year savings and a corresponding decrease in budget, in the Trash Removal (Other Maintenance), Marketing (& Research), Communications/Newsletters, Landscape/Tree Maintenance, Utilities and Security Enhancement line items. Line Items to be Adjusted | Previously Approved FY16 Budget Item | Recommended Mid-Year Adjustment | Amended FY16 Budget Item | Management Fee | $270,750.00 | $22,000.00 | $292,750.00 | Utilities | $12,500.00 | -$2,000.00 | $10,500.00 | Trash Removal (Other Maintenance) | $1,157,390.00 | -$13,000.00 | $1,144,390.00 | Security Enhancement | $67,125.00 | -$2,000.00 | $65,125.00 | Communications/Newsletters | $5,000.00 | -$2,300.00 | $2,700.00 | Marketing (& Research) | $396,507.00 | -$5,200.00 | $391,307.00 | Insurance | $4,700.00 | $1,000.00 | $5,700.00 | Annual Review (Audit) | $15,000.00 | $1,500.00 | $16,500.00 | Total Budget Expenses | $2,345,598.00 | $0.00 | $2,345,598.00 |
Staff recommends an increase of $22,000.00 in the Management Fee line item, an increase of $1,000.00 in the Insurance line item, an increase of $1,500.00 in the Annual Review (Audit) line item, a decrease of $2,000.00 in the Utilities line item, a decrease of $13,000.00 in the Trash Removal (Other Maintenance) line item, a decrease of $2,000.00 in the Security Enhancement line item, a decrease of $2,300.00 in the Communications/Newsletters line item and a decrease of $5,200.00 in the Marketing (& Research) line item for a total net increase of $0.00. All other previously approved line items not mentioned above remain the same. Upon approval of the above recommendations, the total budgeted expenses for Fiscal Year 2016 will remain $2,345,598.00. The revised Budget and Five-Year Service Plan will take effect upon approval by City Council.
This M&C does not request approval of a contract with a business entity. The Downtown PID is located in COUNCIL DISTRICT 2. |