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HomeMy WebLinkAbout08311ORDINANCE NO. 8311 AN ORDINANCE AMENDING THE CITY OF PUEBLO 2011 BUDGET FOR THE HONOR FARM PROPERTIES ENTERPRISE FUND BY BUDGETING AND APPROPRIATING OPERATING FUNDS FOR THE OPERATION OF THE DRAG RACING OPERATION WHEREAS, for years the drag racing events at Pueblo Motorsports Park have been organized, managed, and operated by a private contractor; and WHEREAS, on December 31, 2010, the private contractor has indicated to the City that they no longer want to be binding to their contract, leaving drag racing events to be organized, managed, and operated by the City Parks and Recreation staff; and WHEREAS, City Council, on February 14, 2011, directed the Director of Parks and Recreation to prepare operation, revenue and capital outlay budgets for the Pueblo Motorsports Park’s Drag Racing Operation; and WHEREAS, for the Honor Farm Properties Enterprise Fund to operate the Drag Racing Operation, appropriation for the operating budget as well as the estimated revenues to be generated will require an amendment to the 2011 Honor Farm Properties Enterprise Fund; now therefore, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The estimated revenues of the Honor Farm Properties Enterprise Fund, is hereby increased by $300,000 for fees and charges associated with the drag strip operation. SECTION 2 In addition to the amounts already appropriated in the 2011 operating budget of the Honor Farm Properties Enterprise Fund, the amount of $250,000 is hereby budgeted and appropriated thereto. SECTION 3 This ordinance shall become effective immediately upon final passage and approval. INTRODUCED: February 14, 2011 BY: Judy Weaver COUNCILPERSON PASSED AND APROVED: February 28, 2011 Background Paper for Proposed ORDINANCE February 14, 2011 DATE: AGENDA ITEM # R-12 DEPARTMENT: PARKS AND RECREATION, CREIGHTON WRIGHT, DIRECTOR FINANCE DEPARTMENT, SAM AZAD, DIRECTOR TITLE AN ORDINANCE AMENDING THE CITY OF PUEBLO 2011 BUDGET FOR THE HONOR FARM PROPERTIES ENTERPRISE FUND BY BUDGETING AND APPROPRIATING OPERATING FUNDS FOR THE OPERATION OF THE DRAG RACING OPERATION ISSUE Should City Council increase the 2011 operating and revenue budgets for the Honor Farm Properties Enterprise Fund to cover expenses in the operation and management of the Drag Strip at Pueblo Motorsports Park? RECOMMENDATION Approval of the Ordinance. BACKGROUND Approval of this item is contingent upon passage of the Agreement to Terminate Solutions Management LLC Drag Racing agreement. The contractor responsible for the operation and management of the drag strip at PMP requested termination of the contract effective December 31, 2010. The reason for the requested termination of the contract was due to the City’s wish to manage drag racing in the future. In order to fund the additional operating expenses to operate the drag strip at PMP, the 2011 adopted Honor Farm Properties Enterprise Fund budget will have to be amended. Revenue from fees and charges associated with drag strip events is expected to cover all operating expenses associated with drag racing. FINANCIAL IMPACT The total cost of operating the Drag Strip at Pueblo Motorsports Park for the balance of the 2011 season is estimated to be $250,000. Estimated revenue from fees and charges associated with events at the drag strip is expected to be $300,000.