Item 19 - Early Direction for the Fiscal Year 2024-25 Budget (continued from the meeting on 3-19-2024)

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Early Direction for the Fiscal Year 2024-25 Budget April 2, 2024 Page 8 4 1 5 8 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 Measure X sales tax increase would have on auto sales. This 5-year program is currently funded by the General Fund and the agreement is set to expire in March 2024. The dealerships have requested a 10-year extension of the program at $1 million per year. Actual program expenditures since inception and the current year budget follow. FY19-20 $937,500 FY20-21 $860,000 FY21-22 $649,500 FY22-23 $651,500 FY23-24 to date $606,000 FY23-24 budget $1,700,000 Staff does not recommend extending the program. As an alternative, City Council could consider an extension to March 31, 2029 (the last day of the 1.5% Measure X rate), with a smaller funding allocation. Shall staff prepare an extension of the program for City Council consideration and include a Vehicle Incentive Program allocation in the proposed FY 2024-25 budget? City Events The City Events budget for the current year includes a $1,581,640 allocation from recurring revenue and $900,000 from one-time resources. The FY 2024-25 draft proposed budget is $1,605,700 with no one-time allocations. This does not include