Page 217 - FortWorthFY23AdoptedBudget

Special Revenue Fund

The fund also provides for the operations of Visit Fort Worth (VFW), formerly known as the Convention & Visitor’s
Bureau (CVB), and the Fort Worth Herd.

In FY2010, the Public Events Department (PED) moved from the General Fund to the Culture & Tourism Fund. This
was completed to align the department’s revenues and expenditures, particularly with regard to the relational
impact PED’s activities have on the Hotel Occupancy Tax.

The Hotel Occupancy Tax captures revenues collected from hotels, motels, bed & breakfasts, inns, short-term
rentals, as well as condominiums, apartments, and houses rented for less than 30 consecutive days. The current
hotel occupancy tax rate of 15% levied on every room night charge is split 7% for the City, 6% for the State, and
the remaining 2% is primarily for capital improvements and to meet existing debt service obligations for the Fort
Worth Convention Center, Will Rogers Memorial Center, and if necessary Dickies Arena.

FY2023 DISCUSSION AND SIGNIFICANT CHANGES

The Culture and Tourism Fund is a Special Revenue Fund that requires revenues and expenses to balance. When
comparing FY2023 to the FY2022 budget, the major contributor to the 13% increase in the expenditure budget is
associated with the increased cost of routine operating expenses such as commercial insurance premiums and
other allocations, staff salary and benefits, utilities, temporary labor and operating and maintenance goods and
supplies.

The recovery of the travel and tourism industry directly impacts the 16% increase in revenues with the anticipated
collection of HOT in FY2023 exceeding pre-pandemic levels. As the majority of recoverable business lost during
the pandemic was recaptured during FY2022 for the Fort Worth Convention Center. Revenue is expected to be
slightly lower in FY2023, returning to pre-pandemic levels, while business at Will Rogers Memorial Center, which
increased from FY2019 to FY2022 is anticipated to grow in FY2023 with the addition of new events.

The 7% portion of HOT generates 60% of the operating fund revenue for FY2023. Additionally, economic
development grant rebates for the Omni and Sheraton hotels will increase in FY2023 including the addition of the
Kimpton Hotel. Finally, the Culture and Tourism Fund continue to manage the contract with Visit Fort Worth and
will also continue to reimburse Trail Drive Management Company for the Dickies Arena commercial liability
insurance (estimated to be $491K in FY2023).

In FY2023, with the financial impact of the COVID-19 pandemic behind it, the challenge for the Public Events
Department will be to build debt capacity for future large capital projects while continuing to maintain the venues
under its management and deliver “Best in Class” experiences to our clients.

The Adopted Budget:
· Increases by $249,422 and three authorized positions to assist with facility management. The cost is offset
by the reduction in Contribution to Fund Balance.
· Increases by $2.66 million for adjustments due to inflationary and growth factors as well as contractual
commitments.
· Increases by $1.69 million in General Operating & Maintenance for previously approved costs associated
with risk management and IT solutions allocation costs.
· Increases by $518,196 in salary and benefits for previously approved costs associated with pay for
performance, group health, and pension.

Page 217 of 623