Council Wrapup: Tourism PID budget approved

TOURISM PID BUDGET

After a public hearing on Aug. 28, the city council adopted an ordinance to levy special assessments on property in the Tourism Public Improvement District (TPID) for the fiscal year 2018-19. It also approved a budget of almost $5 million and a nine-year service plan for the TPID, and it adopted an ordinance increasing estimated receipts and appropriations in the TPID Fund in the same amount from available funds for the 2018 tax year.

The total budgeted costs of the improvements will be funded by the owners/operators of TPID hotels with 100 or more rooms; they will pay an assessment rate of two percent of revenues they receive from each room.

In August of 2017 the council approved an initiative by the Fort Worth hotel community to create a TPID to boost marketing for conventions, vacations and other activities that bring business here.

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2 PID UPDATES APPROVED

The council on Aug. 28 approved an updated five-year service and assessment plan for fiscal year 2019 for the Walsh Ranch/Quail Valley Public Improvement District. It also adopted an ordinance increasing estimated receipts and appropriations in the PID in the amount of $477,409 from available funds.

This PID was created in late September of 2016 and encompasses about one-fourth of the Walsh property in far west Fort Worth. It is a vehicle for financing certain infrastructure costs.

Full development of the PID will encompass multiple phases over several years.

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State law requires that the city council review and update the service and assessment plan annually to determine the annual budget for improvements within the PID. As outlined in the updated plan, improvements in the amount of $6.35 million, plus interest and administrative costs, are to be funded by special assessments within the PID for the 2018 tax year.

The city agreed to begin the billing and collection process for the PID assessments in Improvement Area No. 1 beginning with the completion of the improvements in that area. The required improvements have been completed except a final Americans with Disabilities Act compliance inspection report from the Texas Department of Licensing and Regulation.

The council also approved an updated five-year service and assessment plan (SAP) for the Rock Creek Ranch PID, along with increasing estimated receipts and appropriations in the amount of $200,050 from available 2018 tax year funds for the purpose of establishing the fiscal year 2018-2019 operating budget in the same amount.

The Rock Creek PID was created in December of 2016 to finance certain authorized improvements in the PID. When the initial SAP was approved by the city in August of 2017, water and sewer were identified as major improvements. On the same day, the council approved the issuance and sale of special assessment revenue bonds in the amount of about $12.6 million.

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When the SAP was updated in early June, certain roadway improvements were identified in the western area. More bonds were approved in the amount $5.15 million.

A portion of the proceeds from each series of bonds was deposited into a capitalized interest account, and a portion of those funds will be used to pay interest on the bonds during the 2018-2019 fiscal year.