SF Supervisors Approve $8.5M Zoo Bailout

San Francisco supervisors approved an $8.5 million loan on May 19 to keep the San Francisco Zoo operating while city officials press its nonprofit operator to fix financial and management problems. The vote authorized the city to lend the money to the San Francisco Zoological Society, which has run the zoo since 1993. City officials said the zoo is projecting a $12 million deficit over the next two years. The action came weeks after a city audit detailed unauthorized spending and broader management failures at the nearly 100-year-old institution. ### Why did San Francisco step in with a loan now? The San Francisco Board of Supervisors voted unanimously Tuesday to authorize the loan after the zoo’s operator said it needed immediate help to stay afloat. The loan is meant to keep the zoo open as the city pushes for operational changes and monitors whether the Zoological Society can stabilize its finances. (nbcbayarea.com) The San Francisco Zoological Society manages day-to-day operations, maintenance and animal care, but the city owns the zoo’s land, improvements and animals. That ownership structure raised the stakes for City Hall as officials weighed what would happen if the nonprofit could no longer operate the facility. ### What pushed the zoo into a fiscal crisis? (nbcbayarea.com) The zoo’s projected $12 million shortfall over two years has been tied by local reports to weak attendance and rising operating costs. KRON reported that admissions are the zoo’s largest revenue source and that attendance has not returned to pre-pandemic levels. KQED reported that the nonprofit told city officials it needed the money in part to make improvements to the aging zoo. (sf.gov) NBC Bay Area described the institution as nearly 100 years old. ### What did the city audit find? A May 1 performance and management audit of the San Francisco Zoo found that the Zoological Society had spent about $12 million on projects without required city approval, according to local reports summarizing the findings. (kron4.com) The audit also examined zoo finances and operations from 2019 through 2024. The audit was ordered after the Board of Supervisors directed the Budget and Legislative Analyst’s Office in December 2024 to conduct a comprehensive review. (kqed.org) The analyst’s office said written responses were provided by the Zoological Society’s chief executive officer, the Recreation and Park Department’s interim general manager, and the city’s resilience office. (kron4.com) ### What happens if the nonprofit cannot keep running the zoo? An April 7 policy analysis from the Budget and Legislative Analyst’s Office laid out what a collapse of zoo operations could cost the city. The report said the city would have to assume responsibility for the animals and grounds if the San Francisco Zoological Society terminated operations. (media.api.sf.gov) The analyst’s office estimated that a city-managed zoo scenario would cost tens of millions of dollars over three years, with one range running from about $42.5 million to $64.9 million depending on the scenario examined. The report also analyzed a closure scenario in which animals would be relocated over three years. ### How unusual is this arrangement? (sf.gov) The San Francisco Zoological Society has operated the zoo under agreement with the city since 1993, while public ownership of the site and animals has remained with San Francisco. That split left elected officials deciding whether to provide emergency support to a private nonprofit running a public asset. (sf.gov) The Budget and Finance Committee had already handled related legislation in early May, including an ordinance to de-appropriate $2.5 million in open-space acquisition funding and appropriate it to the Recreation and Park Department for a loan to the Zoological Society in fiscal 2025-26. ### What comes next for the zoo? The loan approved on May 19 gives San Francisco Zoo management time to implement changes while city officials maintain scrutiny over the nonprofit’s operations. (sf.gov) Local reports said the funding carries conditions tied to oversight, though the full city legislation governs the exact terms. The next concrete step is continued city review of the Zoological Society’s compliance with audit-driven reforms and the release of loan funds through the city budget process. (media.api.sf.gov) The Board of Supervisors’ action followed the Budget and Finance Committee’s May 6 consideration of the related appropriation measure. (nbcbayarea.com)