Page 137 - City of Fort Worth Budget Book

Special Revenue Fund Culture and Tourism

The Culture and Tourism Fund also provides the commercial insurance premiums on Dickies Arena, operational
funding for Visit Fort Worth (VFW) - formerly known as the Convention & Visitor’s Bureau (CVB), which includes
the Fort Worth Herd - and administrative support to the Fort Worth Sports Authority.
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 (HOT) 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 2% for capital improvements and meeting existing debt service obligations for the Fort Worth
Convention Center, Will Rogers Memorial Center, and (if necessary) Dickies Arena.

FY2024 DISCUSSION AND SIGNIFICANT CHANGES

The FY2024 revenue budget includes $33.5M (62%) from the 7% HOT allocated to operations, $15.8M (29%) for
PED facilities and the balance of $4.7M (9%) from other sources including the Office of Outdoor Events and other
partnerships. The FY2024 expenditure budget includes $50.7M for operating expenses and a planned
contribution of $3.4M to fund balance for a total of $54.1M. The FY2023 adopted operational budget of $46.4M,
including a planned contribution of $1.4M to fund balance, was amended during the year to expenditures of
$54.4M and $5.3M planned use of fund balance as a result primarily of the need for advanced capital funding of
improvements at WRMC and new contractual stipulations with VFW that were offset by a 9% ($2.5M) increase in
the 7% HOT revenue projections for an amended FY2023 revenue budget of $49.1M.

When comparing operational expenditures for the FY2023 to FY2024, the major contributors to the budget
increase are associated with commercial insurance premiums and other allocations, staff salary and benefits, and
contractual obligations with VFW, which required budget amendments in FY2023. Additionally, economic
development grant rebates for the Omni, Sheraton and Kimpton hotels will increase in FY2024 and the C&T Fund
continues to reimburse Trail Drive Management Company for the Dickies Arena commercial liability insurance
(estimated to be $688K in FY2024).

In FY2024, with the sustained stability of not just recovery but growth to the travel and tourism industry, the Public
Events Department will focus on maintaining facility revenues while major capital improvements are taking place
at with the expansion of the Fort Worth Convention Center and at multiple facilities across the Will Rogers
Memorial Center campus, including the major renovation of the Sheep & Swine Barn.
The Recommended Budget:

• Increases by $2.9M in the other contractual services due to contracts renewed with higher rate because
of inflation.
• Increases by $1.0M in salary and benefits for previously approved costs associated with pay for
performance, step increases, rising health care costs and pension contributions.

• Increases by $922,326 due to the increase of commercial insurance premium.
• Increases by $300,000 to fund the department governance study needs and the cost is offset by the
reduction in Contribution to Fund Balance.

• Increases by $531,900 in the operating and maintenance for covering increase of operation cost, like
electricity cost.
• Increases by $108,590 in VERF transfer out for purchasing vehicles.

• Increases by $60,000 to fund the audit program that both the City and ETF clients believe adds value to
the ETF application process. The cost is offset by the reduction in Contribution to Fund Balance.

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