Page 139 - City of Fort Worth Budget Book

Special Revenue Fund Culture and Tourism 2% CY Tax

FY2024 DISCUSSION AND SIGNIFICANT CHANGES
The adopted FY2023 budget of $7.9M for the Culture and Tourism 2% Hotel Tax (HOT 2%) was based on
collaborative projection efforts between the Fort Worth Convention and Visitors Bureau-Visit Fort Worth (VFW)
and the Public Events Department (PED) in May of 2022 then amended in March 2023 to $8.6M to account for
higher than anticipated collections and revised forecasting by PED financial consultants in December 2022. The
amendment increased planned contributions to fund balance by $741K to $1.59M.

Through May of 2023 tax collections continued to surpass projections, reaching a 30% increase over the same
period of the previous year with the fund forecasted to surpass the amended budget by (4%) reaching $9.04M.
Based on these results and the same collaborative projection efforts between VFW and PED, the proposed
budget increases to $9.5M for FY2024, 20% higher than the adopted FY2023 budget.
The FY2023 expenditure budget was adopted with a $2.74M contribution to venue bond debt service. However,
with the significant revenue increases in both the Venue Tax and the PFZ projections, in November of 2022 the
budget was amended and all HOT 2% transfers to the Venue Debt Fund were eliminated and replaced with other
sources, leaving expenditures of $976K for the Fort Worth Convention Center (FWCC) Legacy debt service and a
$3.37M transfer for improvements and capital expenditures at the FWCC, resulting in a total $4.33M planned
contribution to fund balance for the HOT 2% fund.

The Recommended Budget:
• Increases by $2.3M in debt interest account and increases by $865,000 in debt principal account for debt
obligation $979K for FWCC Legacy debt service and adds $3M for the first year of annual debt service
payments on the new 2023 Combination Tax and Revenue Certificates of Obligation issued in May of
2023 for the FWCC Phase I Expansion
• Decreases by ($1.1M) budget for capital improvements

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