Page 27 - FortWorthFY22AdoptedBudget

Executive Message

In FY2021, 118 positions were eliminated and unfilled positions were held vacant in response to the uncertainty
of economic conditions due to the pandemic. Fortunately, the City did not experience the prolonged negative
impact anticipated; instead, the demand for city services has increased. To accommodate the delivery of a high
service level, 66 positions have been added to the FY2022 budget.

As staff worked to allocate limited resources, the inclusion or exclusion of various citywide expenditures, revenue
opportunities, individual programs, and existing service levels were all evaluated against these strategies.

As the City navigated through unprecedented territory throughout the budget development process, staff
updated city executive leadership on the performance of the FY2021 budget. To facilitate this process, the City
conducted comprehensive citywide forecasts for months five and eight of the fiscal year to monitor current
performance and to assist in the development of the upcoming budget. Also, the staff developed 7-year
projections based on the last recession to understand the possible financial impacts of COVID-19.

SIGNIFICANT ISSUES

Before highlighting specifics of the FY2022 budget, included below are topics that received significant attention
during the budget development process.

COVID-19

In December 2019, the coronavirus, now designated as COVID-19, was detected in China and by March of 2020
was declared a worldwide pandemic by the World Health Organization (WHO). On March 13, 2020, President
Donald Trump, Governor Greg Abbott, and Tarrant County Judge Glen Whitley issued emergency declarations for
their respective jurisdictions. On March 21, 2020, Fort Worth Mayor, Betsy Price, also issued a declaration for the
City to implement social distancing and gathering restrictions, among other requirements. The effect was
immediate and created unprecedented economic impacts and uncertainty.

The City mobilized and pivoted resources to address city organizational needs and, most importantly, community
expectations. While the City is preparing for fewer resources short-term, long-term growth is still expected, albeit
at a slower pace than seen prior to the pandemic.

Despite these challenges, the City maintains a positive outlook on long-range financial planning. Slightly slower
growth of revenue for the next several years is anticipated due to lingering impacts from COVID-19 and from
changes at the legislative level. Strong economic growth is expected to continue, but we do not anticipate a return
to pre-pandemic growth rates. Financial planning will focus on existing land use, capital infrastructure
development and maintenance, and operating within the bounds of anticipated revenues. Highlights of Fort
Worth economic conditions include one of the fastest-growing populations of the top US cities correlating well to
continued job growth. Fort Worth has seen strong advances in education and jobs, diversity of culture and
industry, an unemployment rate lower than the US and Texas averages, a median household income above
national and state averages, and a prime median age which allows for a robust workforce. As economic conditions
change in response to COVID-19, the City stands ready to address the needs and expectations of its residents.

American Rescue Plan Act of 2021
In March 2021, the President signed the American Rescue Plan Act (ARPA), providing aid and relief to various
sectors of the United States (U.S.) economy. The City of Fort Worth's allocation from these funds totals
$173,745,090, of which a first tranche (50%), in the amount of $86,872,545 was received on May 19, 2021. The
second half of these funds will be received on or after May 19, 2022, in accordance with U.S. Treasury guidelines.

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