Okay guys, I appreciate everyones 2 cents. It has really helped with my knowledge and the process of improving my Kart.
Quick update: I pretty much had to remove the entire jack shaft to get driven pulley off.
I got pulley apart with a flat head screw driver and snap ring pliers.
I moved the green spring from hole 1 to hole 3.
With me standing on the pulley my snap ring pliers and a rubber mallet I reassembled it.
I will put jack shaft back together tonight.
Hopefully my gaskets for my carb comes tomorrow so I can hopefully see an increase in torque on my test drive.
Will keep you updated.
Thanks again everyone.