Page 367 - FortWorthFY23AdoptedBudget

Horizon Issues

Facility Maintenance: The number of facility maintenance staff has decreased by 8 since FY2008 (13% reduction
in staff with 56% footprint growth). As the City continues to grow its inventory of new facilities, including the
purchase of the 20-story New City Hall, increased staff is needed to adequately maintain the new and existing
facilities. Facilities have been added to the far northern area of Fort Worth, and with highway construction and
added traffic congestion, travel time between jobs has increased, which results in slower response time to routine
work orders. Staff has been added to the PMD Facilities construction crews to perform capital projects in-house,
but there have been no recent additions to the maintenance or administrative staff. City facilities continue to age
and require more and more preventive and routine maintenance, which in turn creates more administrative work.
Failure to add resources to perform recommended maintenance and associated administrative tasks will result in
capital equipment failures soon and slower turnaround times for material and equipment acquisition.

Real Property Management: The Real Property section is responsible for the management of the City’s real
property asset inventory. This includes the purchase and sale of land rights, developing and maintaining
comprehensive information systems and databases that identify properties that the City owns in fee simple title
(approx. 3,000); property ownership information using internal and online resources of City fee owned property
from numbered (i.e. 1st Street, 28th Street, etc.) streets thru the letter “V” which is completed; and tax-foreclosed
properties held in trust for itself and local taxing entities (approx. 150). Since the inception of the Property
Management Department, Real Property staff has worked with the IT Department to leverage technological
resources to help management identify and track the disposition of these properties. Additionally, the Real
Property Division has reduced the City’s inventory of Tax Foreclosed Properties through conducting three to four
sealed bid sales and approximately ten direct sales each year; eligible City fee owned properties will be offered
for sale via the sealed bid sale or direct sale process potentially generating revenue specific to the City.

Property Lease Management: Continue to compile and manage 80+ property leases, license agreements, and
third-party property management agreements, entering into new agreements when necessary, and assuring that
existing leases and agreements are renewed timely so that City operations and community initiatives are met. The
Lease administration section is working to identify various technology resources to provide efficiency and
effectiveness in tracking the lease assets, assessing space needs and monitoring revenues and expenditures, and
utilizing existing programs, such as the SharePoint database to easily access current contracts, rent rolls, and other
data. Additionally, one of the top priorities is to terminate 3 party building leases to reduce the City’s financial
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burden and transition those departments into the New City Hall.

Mineral Management: The City has an estimated total of 11,400 mineral acres with approximately 9,700 mineral
acres under lease. Leasing of any of the City’s remaining mineral acres for subsurface natural gas drilling continues
to be dependent upon a sustained and remarkable increase in the natural gas market. Assurance of an accurate
royalty revenue stream requires consistent due diligence review of the City’s mineral interest, market price, and
production for the City’s 457 oil and gas leases currently held in a producing status. Lease assignments and
transfers between gas companies, lawsuits, and audits add further complexity to assuring the accuracy of the
City’s royalty revenue stream. Mineral management continues to work to identify and implement improved
technology systems and processes for optimum management of the City’s mineral assets.

Lake Worth Leases: The City is currently managing numerous residential and commercial leases around Lake
Worth. Under the direction of the City Manager’s Office and City Council approval, in FY2017, the City began to
sell all residential leased lots to the current leaseholders. As sales progress, the rent revenue which offsets salaries
and operating expenses in the General Fund will continue to be reduced; however, revenue from Ad Valorem
taxes to the City’s overall General Fund for these Lake Worth properties will be increased in the long term. The
third and final area, known as “Block 9”, requires platting. Staff is finalizing the cost necessary for the completion
of platting to prepare the properties for sale. Additionally, the staff is researching to identify and implement an

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