Page 143 - City of Fort Worth Budget Book

Special Revenue Fund Culture and Tourism Proj Fin Zone

FY2024 DISCUSSION AND SIGNIFICANT CHANGES
The addition of four new hotels in the PFZ and continued growth of revenues for hotels in the PFZ during 2023
created a significant driver for increases in the Fund’s growth, as the State does not retain any portion of taxes
generated from those establishments opening after 2013. The FY2023 adopted budget of $8.2M was based on
projections in May of 2022, with no certainty of new hotel openings in the coming fiscal year at that time.
However, based on performance, in March of 2023 the revenue budget was amended to $9.3M, which then
provided for a planned $1.1M contribution to fund balance. Collections as of April 2023 had increased by 58%
compared to the same period in the prior year, creating an FY2023 anticipated total of $12.7M for FY2023 tax
collections and an anticipated contribution of $4.6M to fund balance.

Based on FY2023 performance and revised forecasting by Public Events Department financial consultants, the
FY2024 revenue budget increases to $12.1M, 47.5% higher than the adopted FY2023 budget.

The FY2023 adopted expenditure budget included $6.5M in venue bond debt service, and $1.6M in planned
contributions to fund balance. However, planned contributions to fund balance were eliminated with a budget
amendment in November 2022 increasing the debt service payment to $8.2M, covering 54% of the total $15M
payment. This allowed for the elimination of all contributions from the HOT 2% to venue bond debt service
FY2023.

The FY2024 expenditure budget includes $6.5M in venue bond debt service, covering 43% of the $15M payment,
does not include any capital transfers and provides for a $6.5M planned contribution to fund balance in a strategic
effort to continue building for future debt capacity.
The Recommended Budget:

• Decreases by ($958,009) in debt service to meet department debt obligations
• Increases by $3.9M in revenue collections due to the market performance is strong and recovering back
to before COVID level

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