Sorry about the doom-and-gloom headline. But this bears watching. The Sacramento Bee reports today: “Sacramento is set to host a premier international track and field event next year that officials say could pump $24 million into the local economy and draw thousands of athletes from more than 81 countries. But first, local organizers say they need more than a half-million dollars in start-up money from the City Council and Board of Supervisors.” Given the budget crisis everywhere, we need to be concerned that geezers will get the boot. But here’s why I’m not gonna panic: Sacramento has already sunk tens of thousands of dollars into the 2011 meet. Pulling the plug now would be a signal of much bigger issues. Stay tuned and hope this problem evaporates.

Here’s the story in the SacBee:

Championship track and field event in Sacramento hinges on city and county loan votes
lkalb@sacbee.com
Published Tuesday, Mar. 16, 2010

Sacramento is set to host a premier international track and field event next year that officials say could pump $24 million into the local economy and draw thousands of athletes from more than 81 countries.

But first, local organizers say they need more than a half-million dollars in start-up money from the City Council and Board of Supervisors.

The City Council has found a funding source, and the $400,000 requested is expected to be approved tonight without much opposition.

Getting money from the county’s general fund is more problematic, officials said, given that it is facing an estimated deficit of $118 million for the fiscal year beginning July 1.

At stake is the World Masters Athletics Championships – scheduled to be held July 6-17, 2011, with 5,000 athletes ages 35 to 90 and older.

Sacramento beat out international competition in September 2007. The track and field events will be held at Sacramento State and Sacramento City and American River colleges.

A nonprofit arm of the Sacramento Sports Commission is seeking $550,000 in loans from both the city and county of Sacramento to prepare for the event.

The commission’s executive director, John McCasey, said the event would give a $24 million boost to the local economy through hotel taxes, sales taxes, restaurant patronage and parking.

The funds anticipated from track and field entry fees alone should more than cover the costs to plan and prepare for the event, McCasey said.

But those proceeds won’t land in planners’ coffers until mid-May 2011 – well after preparations must begin. That means the commission’s nonprofit arm, the Sacramento Region Sports Education Foundation, would need bridge loans to meet short-term cash flow needs.

The city loan of $400,000 is on tonight’s consent calendar at the 6 p.m. council meeting.

Amy Williams, city spokeswoman, said the money would come from the city’s parking fund. Because that fund doesn’t restrict how the money is used, it can go for purposes other than parking operations and maintenance.

Besides, she said, thousands of visitors would be staying in downtown hotels, eating in local restaurants and boosting revenues in local parking garages.

Meanwhile, Sacramento County Economic Development Director Rob Leonard said the most probable source of its $150,000 bridge loan would be the county’s general fund.

The county’s projected $118 million general fund shortfall next fiscal year makes competition for those dollars stiff.

“This is where a lot of things have to be worked out very carefully, in terms of timing – in terms of when money would go out and when money would come back in,” Leonard said.

To seek county supervisors’ approval, the loan would have to be refined so that it doesn’t “induce stress to the county’s general fund,” he said. “That would be the goal.”

The city of Sacramento also faces a general fund deficit, about $40 million in the next fiscal year. But the general fund would be unaffected by the loan.

Repayment of city funds would occur in two years, at 4 percent interest.

Local track and field enthusiasts can get a taste of what to expect this summer when the top U.S. masters athletes compete. The Sports Commission in December 2007 won its bid to host the 2010 USA Masters Outdoor Track & Field Championships July 22-25 at Sacramento State.