Purpose

This report serves to further address the financial, operational and strategic intentions of WestWorld as identified in the March 26, 1997 WestWorld Business Plan ("Interim Report"). The WestWorld Business Plan will be used by the City of Scottsdale, as noted in the Interim Report, as a complement to the:

• Cost Sharing and Land Use Agreement with the Bureau of Reclamation (BOR)

• WestWorld of Scottsdale, Management and Facility Operations Plan

• WestWorld Fee Schedule, approved and on file with the BOR

• WestWorld Master Plan

This report addresses WestWorld’s broad range of organizational elements, including a strategic plan (vision, mission, critical objectives and strategies), financial impact of the strategic plan, master plan update, accounting methods, financial structures for fund raising, organizational structures, staffing models, programming and marketing. In addition, background, facts/findings, conclusions and recommendations are given for each of the organizational elements.

The WestWorld planning team has completed several of the "Future Steps" identified in the Interim Report and has incorporated the results of those efforts into this report’s "Facts/Findings". Recommendations range from the specific that can be done in the near term future to those that are contingent upon future events. The availability of resources also impacts the recommendations.

The recommendations of this report represent the WestWorld planning team’s best professional judgment, not final policy. This report serves as a stepping stone for the WestWorld/TPC/Stadium Subcommittee review and ultimate presentation to the Scottsdale City Council.

1982

The City of Scottsdale entered into a Recreational Land Use Agreement with the Bureau of Reclamation to operate and develop the Bureau property, now identified as WestWorld.

The City of Scottsdale developed Horseman’s Park as a replacement for the old Cholla Park, which was closed to make room for the runway expansion at Scottsdale Airport.

1983

The City, with the approval and participation of the BOR, constructed two arenas; one dressage arena; arena lights; entry road; parking lot; and moved a building onto the property which would be used as a clubhouse and concession area.

1985

The City moved two additional buildings on to the property that would be used to house an administrative office and business show office onto the property.

1986

The City entered into a Use and Management agreement with K-Lin Corp., to operate and develop the Horseman’s Park facility. This agreement was reviewed and approved by the BOR.

1986

The City, with BOR approval, completed the initial construction of Horseman’s park for $10,000,000. This included grading the entire 385 acres, all infrastructure, six arenas, 10 barns, one Grand Prix field, two polo fields, and utilities for 600 temporary horse stalls for show use.

1987

K-Lin Corporation, with the City and BOR approval, built the covered Equidome arena.

1988

K-Lin Corporation, with the City and BOR approval, constructed what is now called Monterra Catering.

1988

The City submitted a conceptual Master Plan to the BOR for approval. The BOR was clear that this plan was conceptual and would require detailed submittals with all appropriate public input, and City review, in order to be considered by the BOR for implementation.

1993

The BOR requested that the City undertake a detailed review of the 1988 conceptual Master Plan, update it if necessary, and also develop a Facility Operation Plan identifying exactly how all facilities would operate and be available to the public. K-Lin sold its 50% interest in WestWorld to its co-partner, Horseworld Joint Venture (HJV).

1995

The BOR approved the Facility Operation Plan and the revised Master Plan again, with the understanding that any facilities not existing would require appropriate public input and City process review. The BOR withheld approval of the proposed historic village until further information was available.

1995

The City of Scottsdale completed rezoning of WestWorld to a Western Theme Park zoning, and open space zoning, which is appropriate for existing facilities at WestWorld. The Western Theme Park zoning stipulates that any proposal for a historic village or western town must be submitted for Planning Commission and City Council approval.

January 1, 1997

HJV sold its assets and license rights under the Use and Management Agreement for $4,400,000 to the City. This required a transfer of $400,000 from the capital contingency fund for the purchase of the tangible assets, and future debt service payments over a four year period for the purchase of the license rights. The City also has an option for a one time payment with a discount of $400,000.

Several agreements were also negotiated at the time of the City took over the management of WestWorld.

• Agreement #960213, between the City of Scottsdale and HJV, d.b.a. WestWorld of Scottsdale, HJV sold its license rights and tangible and intangible property interests in the WestWorld facility to the City.

• Agreement #960214, between the City of Scottsdale and Pegasus Restaurant and Catering, Inc., ("Pegasus"), d.b.a. WestWorld of Scottsdale, the City granted Pegasus concession rights to operate a restaurant and or catering operation at the WestWorld facility.

• Agreement #960215, between the City of Scottsdale and Capital Realty Corp. (Scottsdale), ("Capital"), the City granted Capital the rights to develop and operate a golf course at the WestWorld facility.

• Agreement #960214 authorized Pegasus to operate a restaurant and catering concession on-site. Agreement #960215 authorized Capital as the golf course concessionaire and requires Capital to finance, develop, construct and operate an 18-hole golf course at the east end of WestWorld. Under these agreements, the City will receive a percentage of the revenues generated.

The City of Scottsdale assumed management responsibility and purchased the fixed assets of WestWorld effective January 1, 1997. The BOR owns the land that WestWorld is situated on. WestWorld now serves as a Scottsdale community asset. The WestWorld planning team sought community input and City staff insight to help shape WestWorld’s strategic plan. Potential financial impacts are identified in the Financial Impact of the Strategic Plan section of this report.

Facts/Findings:

The WestWorld planning committee received community input on WestWorld’s future through several small group discussions. Participants included community members representing the hospitality industry, the equestrian industry, nearby landowners, the Bureau of Reclamation, and other identified stakeholders of WestWorld.

Appendix A, Community WestWorld Discussions, A Summary Document, describes the outcome of this community input effort. The community input was shared with the WestWorld planning team and other key city staff in planning charette and other meetings.

Appendix B, WestWorld Vision, A Planning Charette, describes the outcome of this planning charette effort and its role in the development of the WestWorld vision.

The WestWorld planning team felt it was important to capture the "Givens" or operating premises in order to create a base from which to develop the strategic plan. The planning team also wanted to capture WestWorld’s strengths, weaknesses, opportunities and threats (SWOT), along with its business, physical and regulatory environments. The development of the Givens, SWOT and Environments are result of several planning meetings and are detailed in Appendix C.

Conclusions:

Using the community focus group, WestWorld planning team and other key City staff input, the following have been identified as key considerations for WestWorld’s strategic plan, its future operations and potential further development of the facility:

• WestWorld should maintain a western and equestrian focus

• Need to enhance recreational access for the local equestrian community

• WestWorld should serve as a community center piece and is adjacent to the gateway to the McDowell Mountains

• WestWorld will be surrounded by development and should be a good neighbor

• WestWorld should be a user-friendly equestrian center

• Special events at WestWorld are important

• WestWorld should be a pedestrian friendly facility

• Parking facilities need to be maintained and enhanced

• Additional improvements and the development of a flexible facility are needed to draw new major events

• Prior ownership has deferred facility maintenance and equipment replacement

Recommendations:

The WestWorld planning team recommends the following Strategic Plan - Vision, Mission, Critical Objectives and Strategies:

Vision - WestWorld is a premier, nationally recognized, user friendly equestrian center and special event facility serving our community and target market visitors.

Mission - WestWorld of Scottsdale is dedicated to providing public recreational opportunities and a venue for entertainment activities with an emphasis on equestrian and western theme events to citizens and target market visitors. WestWorld will enhance Scottsdale’s image as the West’s Most Western Town. WestWorld will offer equal public access and excellent customer service.

Critical Objectives and Strategies further detail how WestWorld can apply its human resources and financial resources to accomplish its vision and mission. There are four categories for WestWorld’s critical objectives and strategies.

• Address Operational and Facility Needs and Opportunities

• Establish a Foundation On Which To Build

• Capital Enhancement Opportunities

• Build Out Opportunities

The period of time from the City’s purchase of WestWorld to date represents a great learning period. During this time we have gained greater insights into WestWorld’s operational and facility needs, some of which were not known and/or quantified, even as the 1997-99 biennial budget was developed. Some of these needs may be met within the existing biennial budget. Other needs may require additional funding or may have to be deferred.

We also now have the benefit of having researched like type and competing facilities, including site visits to several facilities. This experience and learning has helped us identify new opportunities. The critical objectives and strategies in support of operational and facility needs and opportunities are:

• Address WestWorld's facility, equipment, safety, and staffing needs to provide a sound operating basis for its future success, by June 1999.

• Address facility maintenance needs

• Pursue sponsorships and secure funding

• Develop and implement a "friends" support group

• Address equipment needs not secured through sponsorships, friends or other means

• Perform a work management study

• Seek supplemental labor pool (i.e., community service workers)

• Install technology network infrastructure

• Examine WestWorld's operational efficiency and effectiveness, by June 1999.

• Develop reservation policies and targeted marketing plan to attract events that support the WestWorld vision

• Perform a rate and fee analysis

• Examine feed and bedding operations

• Develop a manure disposal plan

• Develop a monthly reporting system (i.e., Reno)

• Quantify the economic impact of WestWorld (by event) to the City

• Establish a Foundation On Which To Build. This category relates to WestWorld continuing to operate and meet the current programmed obligations, but improves the facility to meet community equestrian and visitor needs.

This part of the strategic plan is essential in order for WestWorld to establish a foundation for the future and serve as a community centerpiece. Accomplishing either or both of the critical objectives below serves to create a more flexible facility. Flexible refers to WestWorld’s ability to host a multitude of different types of events. Flexible also refers to the number of events WestWorld can host, which is related to the speed in turn around (set up and tear down) time for the next event.

The critical objectives and supporting strategies in support of establishing a foundation on which to build are:

• Create a more user friendly facility that provides year-round, open public access and recreation opportunities for community equestrian users and visitors.

• Develop a combination trailhead and public recreation area east of Brett’s Barn. This would include a minimum of two lighted arenas, a combination meeting room and snack bar (with rest rooms), parking lot and concession. Access would be via Thompson Peak Parkway.

• Relocate the existing Livery Operation to an area adjacent to the new trailhead

• Integrate trailhead, bike paths and horse trails systems, and the desert greenbelt in the WestWorld facility to provide a link to the gateway to the McDowell Mountains (Desert Discovery Center).

• Update infrastructure master plan.

• Address immediate special event needs.

• Bury existing utility pedestals, repair and resurface existing surface areas, improve drainage and add asphalt where appropriate.

• Evaluate what types of surrounding land uses would be compatible with WestWorld operations.

• Consider incorporating compatible land uses into an area specific plan.

• Look for opportunities to create natural buffering.

This category captures the opportunities identified from site visits, research and community input to take the facility to another programming level and further develop the facility’s flexibility and attractiveness. The critical objective and supporting strategies in support of capital enhancement opportunities are:

• Expand weekday uses, the shoulder season and further enhance this venue’s ability to draw new major events and new programming activity.

• Construct an exhibit hall north of the Equidome. This would eliminate the exhibit tents, which in turn would decrease turn around time (no construction or removal of exhibit tents)

• Remodel Equidome, Phase I, which includes concreting dirt exhibit areas, installing folding bleachers on north side, upgrading existing rest room facilities and constructing a permanent show office

• Construct a large event public rest room complex with an RV utility area adjacent to the polo field

• Install four to six ramada style roof structures on the field south of the Equidome and purchase portable stall units to replace temporary stalls and provide additional covered exhibit area

• Cover arena #4 to allow for weather proofing of multiple events

• Develop and implement a landscaping plan

• Build Out Opportunities. This category represents what WestWorld might do to meet maximum facility demands. Proceeding into this category would most likely occur only after the previous success of "Establish a Foundation On Which To Build" and "Capital Enhancement Opportunities". It expands on the Capital Enhancement Opportunities. The critical objective and supporting strategies in support of build out opportunities are:

• Expands weekday uses, the shoulder season and further enhance this venue’s ability to draw new major events and new programming activity.

• Construct three new permanent barns.

• Install 100 new RV locations adjacent to large event rest room facility

·         Asphalt pathways in all permanent barns

• Cover arena #3 to further weather proof for multiple events

• Remodel Equidome, Phase II, which includes adding weather doors, evaporative coolers, heating system, and PA system and folding bleachers south side

Background:

This section of the report serves to quantify the potential financial impact of the recommended Strategic Plan in this report. WestWorld completed its first six months of operations under City management on June 30, 1997. As noted in the Strategic Plan, many of WestWorld’s operational and facility needs and opportunities were not known and/or quantified at the time the budget was prepared. In addition, the 1997-99, biennial operating budget was established without the historical experience of City management. Some of these needs may be met within the existing biennial budget. Other needs will require additional funding or will have to be deferred.

This Business Plan is based on the target assumption that WestWorld strive to achieve a level of revenues that meet operating expenses. WestWorld’s return on investment is reflected in its value as a Scottsdale Community Centerpiece, as an attractive venue for national and international equestrian events and its economic development impact.

Facts/Findings:

Prior ownership has deferred facility maintenance and vehicle and equipment replacement. Strategies are identified in the strategic plan to address these and their potential financial impacts are identified below. In addition, WestWorld has telecommunication needs, which are partially unfunded. Further, capital projects identified have a potentially significant financial impact and are currently unfunded.

Facility Repairs and Improvements:

WestWorld staff has identified approximately $266,000 of facility repair and improvement costs that are either safety related or relate to repairs and improvements that need to take place to prevent further decay of the asset. Appendix D details the projects and their costs.

Vehicles and Equipment:

WestWorld staff has identified "at risk" vehicles and equipment that are in poor condition and require frequent repair. The age of vehicles that are included in the list ranges from 12-29 years. Replacement or leasing of vehicles and equipment are alternatives to the current ongoing repair.

WestWorld has approximately $36,000 budgeted for machinery rental in each year of the 1997-99 budget. WestWorld will rent equipment and vehicles as necessary to meet its current operational needs. Appendix E details WestWorld’s "at risk" vehicles and equipment. This is not a comprehensive list of the vehicles and equipment at WestWorld. A fleet management plan has been developed that evaluates WestWorld’s vehicle and equipment needs.

Telecommunications:

Providing WestWorld with the same data and voice services currently in use at other City locations would cost an estimated $145,000. The new PBX is funded, but there is no budget to fund the TDM system and infrastructure upgrades. Requirements are as follows:

• TDM system (provides voice and data over one high speed line) $15,000

• New PBX (allows for the same phone services as campus locations, with reduced monthly US West costs) $35,000

• Infrastructure upgrades (copper and fiber) $95,000

Capital Projects:

These projects are in support of the vision and represent the input from community focus groups and city staff. The projects are unfunded. $250,000 for "design phase" funding would be required immediately, should the "Foundation on Which To Build" capital projects be expected to be completed by year end 1998.

Risk Management:

Upon acquiring the operations of WestWorld on January 1, 1997, the liability insurance and safety measures in place were reviewed by Risk Management staff. The prior owner carried a General Liability and Property insurance policy that provided first dollar (no deductible or retention) liability insurance protection up to $1,000,000.

The risk exposures of WestWorld operations were assessed and identified to be unique among City operations with significant premises liability risks involved in the various operations and events. As a result of unique exposures and implementing over time Voluntary Protection Program (VPP) safety standards, along with the insurer providing attractive prices to maintain the prior owner’s policy, the policy was deemed to be cost effective and extended rather than place the primary WestWorld exposures in the overall City’s self insurance program.

The cost of the policy is $17,553 for the period 7/1/97 to 6/30/98 for the $1,000,000 liability insurance. Liability protection in excess of said policy is placed in the overall City’s Umbrella insurance program, which has current coverage up to $40,000,000.

City staff continues to work with WestWorld to improve safety measures to bring them up to VPP standards and we will continue to measure the cost effectiveness of purchasing a primary policy as opposed to placing WestWorld into the overall City self insured program.

Conclusions:

WestWorld has a variety of financial resource demands that are not specifically budgeted. WestWorld does have the capacity to address some of the financial resource demands in its 1997-99 budget. The full use of budgeted expenditures is likely to occur and may result in operating losses for those years. Other projects with financial resource demands will not occur if funds are not specifically identified.

Recommendations:

It is recommended that the following actions be taken.

• Facility Repairs and Improvements:

• WestWorld request $265,900 in the current off year operating budget process for facility repairs and improvements

• WestWorld request the necessary funds in future operating budget years for a sound facility maintenance program

• Vehicles and Equipment:

• WestWorld request $192,000 in the current off year operating budget process to fund the recommended fleet management plan

• WestWorld continue to seek support through sponsorships and "friends" programs to help meet vehicle and equipment needs

Telecommunications:

• WestWorld request $110,000 in the upcoming off year capital budget process to meet its telecommunications needs

Capital Projects:

• City Council approve $100,000 in capital contingency funds (current balance is approximately $1 million) to supplement the $150,000 being made available by the Tourism Development Commission for the design phase of "Foundation on Which to Build" capital projects

• WestWorld request $2,250,000 in the upcoming off year capital improvement program budget process to construct the "Foundation on Which to Build" capital projects

• WestWorld further examine potential funding partnerships and/or options for funding capital projects as follows:

• Tourism Development Commission funds for "Foundation On Which To Build"

• The use of MPC bonds with a dedicated revenue source (e.g., cost avoidance for tent rentals for signature events to partially fund the construction of a north exhibit hall)

• Consider a privately funded construction and management of an exhibit hall, where WestWorld would get a percentage of gross receipts

• Risk Management:

• WestWorld should continue to work with the City’s Risk Management division to bring its safety measures up to VPP standards

• It is recommended that WestWorld staff attend mandatory safety training, which is available with Community Maintenance and Recreation

Background:

The current WestWorld Master Plan, approved by and on file with the Bureau of Reclamation (BOR), was prepared when a private sector operator managed WestWorld. The approved Master Plan (updated October 1995) includes provisions for all existing facilities, for a public golf course and for the conceptual development of an Indian Cultural Center, new trailhead and location of livery operation, historic village, and a modified polo field and small outdoor amphitheater.

Facts/Findings:

As a result of the City’s acquisition of WestWorld, and subsequent public discussions, a vision for WestWorld as a user friendly community equestrian center and special event facility has emerged. In support of this vision, community focus groups and city staff have identified a number of possible capital improvements and changes to WestWorld (all unfunded).

This vision, the possibility of new and changed facilities, and the changing circulation patterns to and from WestWorld necessitated by the completion of the Thompson Peak Parkway and the Pima Freeway, highlight the need to update the WestWorld Master Plan.

Conclusion:

A WestWorld Master Plan update begins with 12 years of operating history, an approved Master Plan, an approved Management and Facilities Operations Plan, and this Business Plan. The update, then, will validate the future direction and vision of WestWorld as articulated by the Scottsdale City Council.

Recommendations:

It is recommended that the WestWorld Master Plan on file with the BOR be updated to reflect any approved capital improvements as outlined in the strategic plan of this report.

In addition a facility analysis should take place in conjunction with design of new facilities, and include the following:

• Infrastructure (design and capacity):

• Circulation

• Water & sewer capacity

• Drainage & grading

• Utilities

• Facility Improvements:

• Buildings

• Outdoor facilities

• Parking/service areas

• Thematic Character:

• Architecture

• Landscaping

• Pedestrian scale

• Buffering opportunities

Background:

The WestWorld planning committee has been asked to explore alternative accounting methods to report WestWorld’s results of operations.

Facts/Findings:

General fund accounting is the method currently being used to account for WestWorld. Enterprise accounting is an alternative method that could be used to account for WestWorld.

The treatment of depreciation and debt service in the statement of revenues and expenditures differ in general fund and enterprise accounting in the following ways:

• Depreciation Debt Service

• General Fund Accounting Not recorded Record both principal and interest.

• Enterprise Fund Accounting Recorded Record interest portion only of debt service.

• This different treatment of reporting depreciation and debt service can make a significant impact in the statement of revenue and expenditures, even though the cash flow would be the same under each method for a given year. Appendix G, Statements of Revenues and Expenditures and Cash Flows (illustrative purposes only), is provided to demonstrate the difference of reporting on a general and enterprise fund basis.

• Using the general fund method to account for WestWorld’s results of operations reports a larger loss than the enterprise method, but only as long as WestWorld has debt service. WestWorld’s debt service is complete in 2005-06. Subsequent to the debt retirement, the WestWorld cash flow projections reflect a positive cash flow. The Statement of Revenues and Expenditures, general fund method, more closely reflects WestWorld’s actual cash flow.

• The City’s overall bonding capacity would not be enhanced by reporting WestWorld in an enterprise fund as bonding capacity relates to general obligation bonds and real property assessed valuations. WestWorld’s current debt is municipal property corporation and contractual debt.

Conclusions:

The City needs to not only compare how the results of operations look in deciding on which basis to report WestWorld’s operations and which method more closely reflects actual cash flow, but should also look to the authoritative literature to help guide its decision.

Governmental authoritative literature related to establishing an enterprise fund denotes the following:

• "Once it is determined that an activity should be accounted for in an Enterprise Fund, a separate fund should be established for each distinct service provided by the governmental unit." [Governmental GAAP Guide]

• "Each fund must be accounted for in a separate self-balancing set of accounts for its assets, liabilities, equity, revenues, expenditures or expenses (as appropriate), and transfers." [NCGAS 1, paragraph 21]

• "When the flow of economic resources is applied on an accrual basis for a governmental fund, all assets and liabilities, both current and long-term, would be presented in the fund’s balance sheet." [Governmental GAAP Guide]

• "A major assumption in accounting is that economic activity can be identified with a particular unit of accountability. In other words, the activity of a business enterprise can be kept separate and distinct from its owners and any other business unit." [Intermediate Accounting, Basic Assumptions of Accounting]

• ". . . . The matching principle thus dictates that efforts (expenses) be matched with accomplishments (revenue) if feasible. [Intermediate Accounting, Basic Principles of Accounting]

If presented as an Enterprise Fund, WestWorld would appear in an individual column on the Statement of Retained Earnings, and Balance Sheet; and a Statement of Cash Flows would be required. However, if WestWorld activity is presented as "Governmental", the activity is combined with other city operations into the applicable governmental funds such as General Fund, Debt Service Fund, etc. and a Statement of Cash Flows is not required.

Using the enterprise method of accounting will result in depreciation being recorded for approximately fifteen more years for the original construction costs and approximately twenty years for the fixed assets. This does not include any depreciation for capital improvements or possible additional improvements. The effect of this, given current operating income projections, is a net loss for many years to come. Thus, the use of the enterprise method of accounting for WestWorld would not be appropriate, under its existing organizational structure.

Recommendation:

It is recommended that WestWorld use the general fund method to account for its operations under its current organizational structure.

Background:

One of the financial facts/findings from the WestWorld Research Report was that many of the like type and competing facilities use non-profits, foundations and/or sponsorships to donate resources to support their facility. The City of Scottsdale has a couple of financial structures already in place to facilitate resource donations.

Facts/Findings:

• Trust Fund/Expendable Donations.

The use of the City’s trust fund provides an opportunity for potential donors to make tax deductible contributions for specific uses. The City provides donors a letter and legal opinion as to the tax deductibility of their charitable contribution. This trust fund provides the flexibility to receive donations, deposit the money in a City account and have it available for distribution in a relatively short period of time. The trust fund should be used for those donations where the donor approves of the disbursement of the principal donation. The trust fund should not be used when the donor’s intention is to preserve the principal donation for perpetuity and only the income stream is to be disbursed.

The following steps are required to establish a trust fund in Accounting:

• A memo would need to be sent to the Grants and Trusts Accounting Coordinator describing the intent of the establishment of a WestWorld Trust Fund.

• The intent should be stated in broad terms (e.g., "to support WestWorld"); and

• A person and/or group would need to be identified to authorize expenditures and identified as such in the memo to Accounting. Currently, city staff serve as administrators for several established trust funds.

• Endowments and the Arizona Community Foundation (ACF).

Endowments are donations in which the principal donation is to be preserved in perpetuity and the income stream is to be used or disbursed to support the donation’s original intent. This financial structure provides an alternative to the potential donor who does not want to see the principal donation be disbursed.

The City of Scottsdale has aligned itself with ACF for the purposes of establishing endowments for various community needs. ACF is an 18 year old philanthropy with $100 million in assets.

Its mission is:

• To meet the charitable needs of Arizona’s communities through grants, technical assistance and other services to non-profit organizations

• To accomplish this goal by attracting and managing in perpetuity capital gifts (living and testamentary) from individuals, families, corporations, agencies and private foundations; and

• To exercise leadership on select community issues and advance the cause of organized philanthropy throughout the state.

The City of Scottsdale has aligned itself with ACF by becoming an Affiliate Community Foundation, through the establishment of the Scottsdale Community Endowment Fund.

An affiliate foundation does not have separate tax status, but operates under the umbrella of the ACF, a certified tax-exempt organization under Section 501 (c) (3) of the Internal Revenue (Federal Tax) Code. Donors may specify that funds be earmarked for the partial or exclusive benefit of the community, then gifts are made directly to ACF and are therefore tax deductible.

A separately named fund within the Scottsdale Community Endowment Fund can be established with a minimum donation of $20,000.

• Sponsorships and Other.

The Reno Livestock and Events Center received a sponsorship for a scoreboard. The City of Conyers, GA does the sponsorships for its Georgia International Horse Park, with private companies such as Ford. Other facilities also promote such programs as "Friends of the Park" and "Memorial Tree Program" as ways for people to donate resources to support their facility. In addition, some facilities use separate entities with the sole purpose of promoting the visibility and raising of capital funds to support their facility. The Scottsdale Charros have expressed an interest in being a resource for WestWorld.

Conclusions:

WestWorld’s operating expenses, debt service requirements and capital needs exceed its current revenues. Established trust and endowment funds provide structure to allow for tax deductible donations to benefit WestWorld. Sponsorships and programs such as "Friends of the Park" could benefit WestWorld as well.

Recommendations:

It is recommended that:

• WestWorld coordinate with the City’s Accounting department to establish a trust fund

• WestWorld coordinate with the City’s Endowment Officer to establish an endowment fund within the City’s Affiliate Community Foundation umbrella

• WestWorld explore opportunities to establish sponsorships with private companies to help support WestWorld

• WestWorld consider a community based support group (e.g., Friends of the Park) and similar programs to promote the visibility of, and raise capital for, WestWorld

Background:

The WestWorld planning committee has been asked to explore alternative organizational structures for WestWorld.

Facts/Findings:

• Reno Sparks Convention and Visitors Authority (RSCVA). The only Authority identified in the WestWorld Research Report was the RSCVA, which:

• is governed by Nevada Revised Statutes (244.597 - 244.667)

• transformed over several years from the Washoe County Fair and Recreation Board

• is a separate governmental entity with a general fund, special revenue fund, debt service fund, etc.

• is governed by the same state statutes that govern cities and counties

• is independently audited on a stand alone basis