ELK GROVE, CA (MPG) - Elk Grove City Council signed off on a balanced budget for the coming fiscal year at its June 26 regular meeting, as well as a cost-sharing agreement with the entity looking to move the Sacramento Zoo to Elk Grove.

Councilmembers have praised the $374-million budget for Fiscal Year 2024-25 as an indication of the city’s financial health. Speaking at the May 22 meeting, City Manager Jason Behrmann said the budget is balanced and funds the city’s reserves, with surpluses projected in the next five years.

City Council tabled its final decision on the budget on June 12 because Councilmember Darren Suen was absent.

At the June 26 meeting, Suen thanked his colleagues for delaying the vote so that he could weigh in. He agreed with Elk Grove resident Lynn Wheat, who, during public comment on June 12, asked for more ways to prevent graffiti, such as by growing ivy on targeted walls. Suen acknowledged concerns raised by Vice-Mayor Rod Brewer that ivy could damage structures.

“The budget reflects our investments in public safety, maintaining or keeping a handle on our homeless population, bolstering and maintaining infrastructure and securing economic development opportunities for the city,” Suen said, motioning to adopt the budget.

Mayor Bobbie Singh-Allen highlighted multiple aspects of the budget, including 15 new full-time positions, including four Elk Grove Police Department personnel funded through the Measure E sales tax; workforce development and small-business initiatives; and investment in the Grant Line Business Park.

City Council approved the budget by a 5-0 vote.

In a further step toward bringing the Sacramento Zoo to Elk Grove, City Council unanimously passed a cost-sharing agreement with the Sacramento Zoological Society, which operates the zoo, as well as budget amendments that allow the city to begin making its own contributions. Contracts with two design firms will flesh out the plans for the area around the zoo site and for the zoo itself. 

City Council in May gave final planning approval for the zoo’s move to southern Elk Grove, also giving comment on the terms of the financial agreement.

The agreement covers Phases 1A and 1B of the zoo plans, filling out 30 acres of the property with the zoo’s core pathway and African animals such as giraffes, rhinoceroses, giraffe-related okapis and primates called geladas.

The overall project, projected to cost about $302 million, is split into four phases, and some funds will come from a future bond issue. The zoological society is responsible for covering 32% of the annual debt-service payment.

The city and the zoological society also plan to enter into a use and operating agreement. In addition, if the city terminates the project before bond funds are received, any donations stored with the city would be returned.

Under the agreement, the zoological society would be required to meet certain fundraising milestones twice a year until Jan. 1, 2027, when it should have raised at least $50 million in donations and pledges. Any donations scheduled for after the final deadline would be discounted by 4%. The society must transfer the full $50 million before bonds can be issued.

The city and the society would collaborate on raising $30 million more for the energy efficiency and animal care elements of the zoo project. They would also create a method of accepting in-kind donations from third parties.

Additions to the capital improvement plan include the building of the zoo, as well as enhancements to the surrounding roadways and utilities, and construction of parking lots and a stormwater basin.

To fund a $107.8-million total contribution, the city will draw from reserve funds for economic and capital development, as well as fund balances in the Laguna and Poppy Ridge community facilities districts and other funds.

SHR Studios, which developed the concept for the new zoo leading up to City Council approval, will continue its design work for the zoo itself. Kimley-Horn and Associates will concentrate on the off-site improvements.

During public comment, Wheat criticized the use of the community facilities district balances, saying residents of the districts don’t know it will happen.

Suen asked how to speed up the project.

“The sooner we can get things approved and move to construction, I think it’s more advantageous to us from a financing standpoint,” Suen said.

Staff said they were looking at the project in stages and coordinating with local agencies to prepare for the necessary approvals.

“I think we’re moving much as we can, as quickly,” said Christopher Jordan, the city’s director of strategic planning and innovation.

Brewer thanked staff for answering his questions regarding funding requirements and the conditions for moving forward in the funding process.

Councilmember Kevin Spease recalled his proposals when City Council commented on the financial agreement in May, which included creating an oversight committee for the bonds. 

Before the bond issue or any on-site work, he also wanted requirements that the zoological society have all $50 million in hand, and that City Council conduct a full project review. 

Finally, he proposed that no on-site improvements happen before the bond issue.

Spease was happy to see the cash-in-hand requirement for the zoological society. Spease said the oversight committee will be considered closer to bond issuance and he voiced his support for the agreement.

Councilmember Sergio Robles praised the “compromise” involved in developing the agreement.

City Council voted 5-0 to approve the item.

In other business, councilmembers heard from participants in the Civic Summer Youth Program, in which high school students met with city officials to learn about public service and how the city operates.