Item 26 - Early Direction for the Fiscal Year 2024-25 Budget

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Early Direction for the Fiscal Year 2024-25 Budget March 19, 2024 Page 7 4 1 3 1 If the City continues providing reduced parking rates, the estimated General Fund subsidy necessary for FY 2024-25 will be $2.2 million. A significant portion of the Parking Enterprise includes Downtown Enhancement with the Clean and Safe program which undertakes functions such as power washing and other debris pick-up. Reinstating rates to fund the Parking Enterprise is important for the atmosphere and upkeep of amenities in Downtown Santa Ana. Shall staff reinstate the downtown parking rates to avoid another General Fund subsidy in Parking Enterprise? Zoo Operations The costs to operate Municipal zoos, aquariums, and museums are typically subsidized, based on the educational and recreational benefits to residents. The Santa Ana Zoo has an annual operations budget of approximately $3 million. This does not include any capital projects such as new or rehabilitated exhibits and safety improvements. Last year, revenue reached $1.8 million, the most ever received. Therefore, the Zoo currently requires an annual subsidy of approximately $1.2 million (or 40%) for recurring operations. In contrast, the City’s General Fund contributes nearly $1.7 million annually to the Bowers Museum for operations. The Zoo continues to find creative ways to increase revenue for a higher level of operations that support accreditation. On February 20, the City Council approved a concession agreement that includes alcohol sales, with the Zoo receiving a revenue share ranging between 6% and 10% of sales. The Zoo is considering implementation of other revenue-generating programs such as yoga in the Zoo and behind-the-scenes animal encounters. The Zoo will host its second Brew at the Zoo event this year. Last year, the Zoo increased admission prices by $1. Due to the extensive ongoing construction that includes the Giant River Otter habitat, staff does not plan to request another admission price increase for FY 2024-25. However, the City may need to consider an admissions increase in the following year. Except for the Orange County Zoo which has an unusual heavily subsidized admission of $2 per person, the Santa Ana Zoo is still a relative bargain when compared to other similar attractions. Any future staff proposal will include details and benchmarking. To provide a recurring allocation for deferred maintenance and other capital needs, staff will consider recommending a Zoo subsidy increase from $1.4 million to $1.7 million with the proposed FY 2024-25 budget. Vehicle Incentive Program In 2019, the City Council approved the Santa Ana Vehicle Incentive Program, which provides a $500 dollar rebate to residents who purchase a new or used vehicle at one of 10 participating Santa Ana auto dealerships. The program was developed at the request of the auto dealers, as they were concerned with the impacts that the November 2018