HomeMy WebLinkAbout07139ORDINANCE NO. 7139
AN ORDINANCE AMENDING THE CITY OF PUEBLO 2004 BUDGET FOR THE WALKING STICK
GOLF COURSE ENTERPRISE FUND BY INCREASING THE OPERATING AND CAPITAL
OUTLAYS AND MAKING APPROPRIATIONS THEREFOR
WHEREAS, in January of 2004, a City Golf Committee identified and recommended
additional operating and capital outlay improvements for Walking Stick Golf Course during their
evaluation of the 2004 golf fee Increase proposal; and
WHEREAS, the identified and recommended operating and capital outlay improvements for
Walking Stick Golf Course are the lease /purchase of 71 new golf carts, water service lines to
course restrooms, replacement of sand in sand trap bunkers, the addition of a fertigation
component to the automated irrigation system, and replacement of the cart paths; and
WHEREAS, the 2004 Walking Stick 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 Walking Stick Golf Course fund and the Elmwood Golf
Course fund are inadequate to fund these projects, an 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 Walking Stick Golf Course Enterprise Fund are
amended as follows:
2004 Adopted 2004 Amended
Revenue $ 1,017,000 $ 1,096,910
Personnel $ 35,154 $ 35,154
Operating 762,900 822,400
Capital Outlay 50,000 75,000
Cart Path Replacement 600,000
$ 848,054 $ 1,532,554
Bond Payment 470,178 470,178
Total Expense $ 1,318,232 $ 2,002,732
Gain /Loss (301,232) (905,822)
Loan From Elmwood 301,232 905,822
Fund Increase /Decrease -0- -0-
SECTION 2.
This Ordinance shall become effective immediately upon final approval and passage.
INTRODUCED April 12, 2004
BY Michael Occhiato
Councilperson
L) -u-
Background Paper for Proposed
ORDINANCE
AGENDA ITEM # �K An
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
WALKING STICK GOLF COURSE ENTERPRISE FUND BY INCREASING THE
OPERATING AND CAPITAL OUTLAYS AND MAKING APPROPRIATIONS
THEREFOR
ISSUE
Should City Council increase the 2004 operating and capital outlay budgets for
the Walking Stick 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 Goff 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 Walking Stick Golf Course in 2004: 1)
lease /purchase 71 new golf carts; 2) install water service lines to outlying course
restrooms; 3) replace sand in sand trap bunkers; 4) install a fertigation
component to the automated irrigation system; and 5) replace the cart path
system on the course with concrete adequate to withstand heavy vehicles and
moving soil.
In order to fund the additional operating and capital outlay improvements the
2004 adopted Walking Stick Golf Course Budget will have to be amended.
Because the retained earnings at both the Walking Stick Course and the
Elmwood Course are entirely depleted this budget increase will mean that cash
for these improvements will have to come from the general fund.
FINANCIAL IMPACT
The cost of the additional operating and capital outlay improvements to Walking
Stick Golf Course are estimated as follows:
• Lease /purchase 71 new golf carts
• Restroom water service lines and
bunker sand
• Irrigation fertigation component
• Cart path replacement
TOTAL ESTIMATED INCREASE
$34,500.00/year
25,000.00
25,000.00
600,000.00
$684,500.00
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 $ 1,017,000 $ 1,096,910
Personnel $ 35,154 $ 35,154
Operating 762,900 822,400
Capital Outlay 50,000 75,000
Cart path replacement 600.000
$ 848,054 $ 1,532,554
Bond Payment 470,178 470,178
$ 1,318,232 $ 2,002,732
Gain /Loss (301,232) (905,822)
Loan From Elmwood (301,232) (905,822)
Fund Increase /Decrease -0- -0-