LR Zoo's intake up, but so are expenses

LITTLE ROCK — The Little Rock Zoo is on track to make more money this year than last, but the projected gains won't be much and won't be nearly enough to help out-pace the facility's expenses.

The projection is no surprise for zoo officials. While revenue increased from 2003 to 2007 before a slight dip last year, expenses increased each year starting in 2004, overreaching the zoo's revenue.

Sarah Lenehan, Little Rock's director of finance, said enterprise departments - revenue-generating ventures such as the zoo, River Market and golf courses - aren't expected to run solely off the money they make.

The operations of these departments "are subsidized by the general fund," she said. "They are an important part of the city's park services, contributing to the quality of life of the citizens of Little Rock."

Susan Altrui, a spokesman for the zoo, said 13 days of rain on Fridays or Saturdays in the spring put a damper on zoo attendance. According to the facility's monthly financial statement, the zoo should've banked more than $1 million in admissions revenue by June 30 compared with the $789,965 actually earned.

Still, Altrui said she's optimistic that the zoo will make more than last year. Total revenue through June 30 without any city subsidy is $1.6 million. Last year, the facility pulled in $2.57 million compared with $2.64 million in 2007.

"Considering the state of the economy last year, our revenue was only about $100,000 less than it was the year before," Altrui said comparing 2007 with 2008. "For 2009 we're on track right now to beat last year's revenue. The problem is we're still not earning enough revenue to out-pace expenses."

Last year, operating expenses for the zoo totaled $5.2 million compared with the facility's revenue of $4.4 million, including the city's subsidy of $1.8 million.

Zoo officials had hoped that the Wild Wonders bird show would draw at least 35,000 more patrons this summer to offset an anticipated dip in city funding, a drop in attendance and an increase in operating expenses.

Earlier this year, the city's 2009 appropriation to the zoo was projected to be cut by about $52,000. That was offset through fuel savings, but later the city Board of Directors voted to cut all enterprise fund budgets by about 5 percent - or $87,837 for the zoo.

The zoo is trimming a little more by making the following cuts:

$28,000 from cafe/concessions,gift shop, membership and guest services budgets.

$10,072 from the education budget.

$20,000 from the animal services budget.

$30,000 from the facilities budget.

"We won't be having a membership drive. We're cutting our part-time help. The cost for feeding the animals is going down, so there are savings there. We've delayed any minor improvement projects until next year," Altrui said. "We won't be able to provide the same level of service that we once did, but I don't think our visitors will be able to detect any difference."

Lenehan wouldn't say if the city would have to make more cuts to help subsidize the zoo or its other enterprise funds from the city's general fund, saying only that "the city will not operate the enterprise funds at a deficit if doing so jeopardizes the stability of the general fund."

Altrui said the zoo's earnings likely would've been less without the bird show, which featured the feathered animals flying freely over the heads of audiences. The show, which is free with admission, ends on Labor Day and cost the zoo $120,000.

She released the results of a survey of 101 zoo patrons who attended the show. Of those, 52 said they visited the zoo specifically to see the show.

"Overall, we're up in paid attendance by about $13,000, but that's not enough. We were hoping for a significant increase," Altrui said. "We're waiting to see how August and September goes. If we hadn't had the bird show, we think we'd be sitting in a worse financial situation than we're in right now."