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HomeMy WebLinkAbout07138ORDINANCE NO. 7138 AN ORDINANCE AMENDING THE CITY OF PUEBLO 2004 BUDGET FOR THE ELMWOOD GOLF COURSE ENTERPRISE FUND BY INCREASING THE OPERATING AND CAPITAL OUTLAYS AND APPROPRIATING FUNDS THEREFOR WHEREAS, in January of 2004, a City Golf Committee identified and recommended additional operating and capital outlay improvements for the Elmwood Golf Course during their evaluation of the 2004 golf fee increase proposal; and WHEREAS, the identified and recommended improvements for the Elmwood Golf Course are the lease /purchase of 71 new golf carts, increased operating budget for the 27 hole course, an increase in the capital outlay budget in order to purchase new maintenance equipment, and an increase in the loan to Walking Stick Golf Course as required by ordinance; and WHEREAS, the 2004 Elmwood Golf Course Budget will have to be amended in order to fund the identified recommended operating budget increases and capital outlay improvements; and WHEREAS, reserves in both the Elmwood Golf Course fund and the Walking Stick Golf Course fund are inadequate to fund these projects, an additional advance from the General Fund will be required; now therefore, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The 2004 budget and appropriations for the Elmwood Golf Course Enterprise Fund are amended as follows: 2004 Adopted 2004 Amended Revenue $ 1,107,000 $ 1,284,235 Personnel $ 29,295 $ 29,295 Operating 625,313 684,813 Capital Outlay 40,000 65,000 $ 694,608 $ 779,108 Bond Payment 252,350 252,350 Total Expense $ 946,958 $ 1,031,458 Gain (Loss) $ 160,042 $ 252,777 Transfer to Walking Stick (301,232) (905,822) Reserve Increase (Decrease) (141,190) (653,045) SECTION 2. This Ordinance shall become effective immediately upon final approval and passage. INTRODUCED Aoril12.2004 PASSED AND APPROVED April 26, 2004 ED Background Paper for Proposed ORDINANCE AGENDA ITEM # )T 3' S� DATE: April 12, 2004 DEPARTMENT: PARKS & RECREATION — RICH ZAJAC, DIRECTOR MIKE ZAREMBA, GOLF COURSE MANAGER TITLE AN ORDINANCE AMENDING THE CITY OF PUEBLO 2004 BUDGET FOR THE ELMWOOD GOLF COURSE ENTERPRISE FUND BY INCREASING THE OPERATING AND CAPITAL OUTLAYS AND APPROPRIATING FUNDS THEREFOR ISSUE Should City Council increase the 2004 operating and capital outlay budgets for the Elmwood Golf Course. RECOMMENDATION Approval of this Ordinance. BACKGROUND In December of 2003, City Council directed that a Golf Committee be formed to evaluate the fee increase proposal, the financial status of the golf enterprise funds and identify and recommend operating and capital outlay improvements for the municipal courses. The Golf Committee, City Administration and the Golf Course Manager have mutually agreed and recommend that the following additional operating and capital outlay improvements be made to Elmwood Goff Course in 2004: 1) lease /purchase 71 new golf carts; 2) increase operating budget to improve maintenance for the 27 hole course; and 3) increase capital outlay in order to purchase additional maintenance equipment. In order to fund the additional operating and capital outlay improvements the 2004 adopted Elmwood Golf Course budget will have to be amended. FINANCIAL IMPACT The cost of the additional operating and capital outlay improvements to Elmwood Golf Course are estimated as follows: • Lease /purchase 71 new golf carts $34,500.00 /year • Increase operating /maintenance funds 25,000.00 • Increase capital outlay /new equipment 25,000.00 TOTAL $84,500.00 The estimated annual increase in revenue from the golf fee adjustments that were adopted in February of 2004 will not be sufficient to fund the recommended increased operating and capital outlay improvements. Even with the projected fee increase built in, the golf courses negative reserves are projected to increase by $653,045. The amended golf course operating budget and revised revenue is as follows: 2004 Adopted 2004 Amended Revenue $ 1,107,000 $ 1,284.235 Personnel $ 29,295 $ 29,295 Operating 625,313 684,813 Capital Outlay 40.000 65.000 $ 694,608 $ 779,108 Bond Payment $ 252,350 $ 252.350 $ 946,958 $ 1,031,458 Gain (Loss) $ 160,042 $ 252,777 Loan to Walking Stick (301,232) (905,822) Fund Increase (Decrease) (141,190) (653,045)