Report Prepared by: Lindsey Johnson, Recreation Supervisor, Parks and Community Services
Title
SUBJECT: Agreement with Merced Zoological Society
REPORT IN BRIEF
Agreement with Merced Zoological Society to contribute at least $85,000 of the total operating budget for Fiscal Year 2015/2016.
RECOMMENDATION
City Council - Adopt a motion approving the agreement with the Merced Zoological Society for payment of at least $85,000, (approximately 30%) of the total operating budget at the Zoo and authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2015-16 Adopted Budget
DISCUSSION
Since 1994, the City of Merced has entered into annual agreements with the Merced Zoological Society for assistance with the operating costs of the Applegate Park Zoo. Generally, the contributions from the Society are used for operating expenses such as animal health, supplies, landscaping and staff costs. The Merced Zoological Society collects money by charging an entrance fee to the zoo, operating the Bear Creek Nature Store, as well as hosting numerous fundraisers throughout the year.
In June 2015, the City Council approved a budget that included a contribution by the Society of at least $85,000 (approximately 30%). This is the same minimum amount that they were required to contribute last year. The Society continues to support the City as much as possible. For example, last year they were only required to contribute $85,000 to the City, but they ended up contributing $92,647. There have also been other times throughout the last 20 years that their contributions have exceeded what was asked of them. In addition to their monetary contributions, they provide many in-kind services to the Zoo. While they are required to pay at least $85,000 this year, it is expected that they will exceed this amount. The new zookeeper is creating several new programs that will help increase attendance, which will in turn generate increased revenues from admissions.
The proposed operating budget (total budget less capital improvement project expenses) for FY 15/16 is roughly $284,345, so an $85,000 contribution by the Society would amount to approximately 30% of the total operating budget. While the Society will be contributing the same amount as last year, the total percentage of the budget that they are contributing is lower than before, because of the increased zoo budget, due to the addition of a second zookeeper. The City will continue to operate Applegate Park Zoo and will allow the Merced Zoological Society to collect an entrance fee that can be used towards its contribution for expenses.
IMPACT ON CITY RESOURCES
The contributed funds will be placed in Zoo revenue account 024-1205-360.02-00.
ATTACHMENTS
1. Annual Agreement
2. Zoo Financial Report