What Happened?
The zoo in Evansville, Indiana, is investigating a potential public-private funding model that would increase access to capital for upgrades and expansions, while reducing the costs for taxpayers. The zoo has an annual budget of more than $4 million, but only brought in $1 million in revenue last year.
The Goal
The 90-year-old establishment has experienced declines in attendance since 2009, after a $15 million exhibit was constructed. To maintain and update the 50-acre government-owned zoo, officials are considering increasing contributions from the private sector to offset declining revenue. To revive attendance, zoo officials feel new exhibits must be constructed to entice residents.
Evansville will not be the first city in the U.S. to propose a public-private partnership to support facilities such as zoos. About 80 percent of accredited zoos in North America use a governance model that divides costs and responsibilities between the local government and private entities. Aside from charitable giving, many zoos have found success in connecting with corporate sponsorships to ensure a consistent flow of capital into maintenance and new projects.
NC Zoo Plan
The zoo in Asheboro, North Carolina, is also in need of additional funding to support significant repairs and upgrades to the infrastructure and attractions. Over the next 10 years, the zoo will require $60 million to maintain the facility, $40 million of which will come from state bond funds.
To keep in competition with other zoos in the region, park leaders said a backlog of maintenance problems will need to be addressed as well as construction of new exhibits. Zoos continually take on more animals, and developments must be made to accommodate the new arrivals.
The park will need $40 million in state bonds issued, as well as $20 million in private funding through donations to the Zoo Society to maintain the zoo. The facility has a 10-year plan of upgrades and additions to increase attendance and revenue. Without the additional private funding, however, many of these projects will be put on hold.
North Carolina can sell bonds for the zoo as part of a larger bond package that requires state legislature approval. However, state bonds may not contribute enough capital to the zoo to address the most immediate of needs. The park’s annual budget is about $18 million which is barely enough to maintain existing infrastructure, much less start new construction.
There is a Special Zoo Fund that collects capital when revenue exceeds expectations. The fund currently has $2.2 million that has already been accounted for planned projects.
Other Options
Many cities have sought federal grants to preserve institutions such as museums, libraries or parks. The Institute of Museum and Library Services, for example, supports a variety of museums including zoos through two different resources:
- Museums for America Grant This grant funds new and ongoing museum activities and programs. The grant can last up to 3 years, ranging from $5,000 to $150,000.
- Heritage Preservation Conservation Assessment Program This program provides general conservation assessment of museum’s collections, environmental conditions and site to aid in future planning.
Profitable Partnerships
Gov1 has reported on several successful public-private partnerships that spur construction and redevelopments amid tight budgets. Additionally, other parks & recreation departments around the US are using sponsorships and privatization to fight budget cuts.