Oklahoma City Zoology Trust

Regular Meeting

Oklahoma City, OK · August 27, 2025

By The City of Oklahoma City Office of the City Clerk at 1:30 pm, Aug 25, 2025 OKLAHOMA CITY ZOOLOGICAL TRUST Meeting Agenda Zoo Administration Building, Savanna Conference Room August 27, 2025 - 4:30 p.m. OKLAHOMA CITY ZOOLOGICAL TRUST MEMBERS Vicki Howard, Chairperson Camal Pennington, Councilperson, Ward 7 Jon Trudgeon, Vice-Chairperson Dustin Fredrick Pama Palmer, Secretary Aimee Salalati David Holt, Mayor Derek Albro Heather Ross, Surrogate to the Mayor Craig Freeman, City Manager Dwight Lawson, PhD, Executive Director/CEO LaShawn Thompson, Surrogate to the City Manager INFORMATION ABOUT OKLAHOMA CITY ZOOLOGICAL TRUST MEETINGS The Oklahoma City Zoological Trust meets on the fourth Wednesday of each month at 4:30 p.m. in the Zoo Administration Building, located at 2000 Remington Place, Oklahoma City, Oklahoma 73111. Free parking is available in the Zoo parking lot. It is the policy of the Oklahoma City Zoological Trust to ensure that communications with participants and members of the public with disabilities are as effective as communications with others. Anyone with a disability who requires an accommodation, a modification of policies or procedures, or an auxiliary aid or service in order to participate in this meeting should contact the Zoo at 405-425-0231 as soon as possible, but not later than 48 hours (not including weekends or holidays) before the scheduled meeting. The Zoo will give primary consideration to the choice of auxiliary aid or service requested by the individual with disability. If you need an alternate format of the agenda or any information provided at said meeting, please contact the Zoo at 405-425-0231 at least 48 hours prior to the scheduled meeting. ADDRESSING THE OKLAHOMA CITY ZOOLOGICAL TRUST Citizens may address the Trust on certain items by signing up to speak and providing the agenda item number, their reason for appearing, and their address, but all comments must be relevant to the item. Citizens may also address the Trust at the end of the agenda under “Citizens to be heard.” Please contact the Zoo at 405- 425-0231 at least 48 hours prior to the meeting, and leave a message that includes your name, the agenda item number, and the reason you would like to speak. Staff will submit requests received to the Chair. Please limit your comments to three (3) minutes or less. The Chair or presiding officer may, in his or her discretion, prohibit a person from addressing the Trust, or have any person removed from the Auditorium, if that person commits any disorderly or disruptive behavior. Disorderly conduct includes, but is not limited to, any of the following: speaking without being recognized by the Chair or presiding officer; continuing to speak after notice that the speaker’s allotted time has expired; presenting comments or material not relevant to the item under discussion; failing to comply with the lawful instructions of the Chair or presiding officer; or engaging in other conduct, activity, or speech that delays, disturbs, interferes, or disrupts the effective or timely conduct of the meeting, or is otherwise violent, threatening, abusive, obscene, or jeopardizes the safety of self or others. A person may also be subject to Page 1 of 72 arrest and removal from the Auditorium for violation of Oklahoma City Municipal Code 2020, § 3081 – Disorderly conduct and/or violation of 21 Okla. Stat. § 280 – Willfully Disturbing, Interfering with or Disrupting State Business, Agency Operations or Employees. TRUST ACTIONS Official action can be taken only on items which appear on the agenda. The Trust may adopt, approve, ratify, deny, defer, recommend, amend, strike, or continue any agenda item. Other actions may also be taken. When more information is needed to act on an item, the Trust may refer the matter to the Executive Director/CEO or the Municipal Counselor. The Trust may also refer items to standing committees of the Trust for additional study. Under certain circumstances, items are deferred to a specific later date or stricken from the agenda entirely. CONSENT DOCKET Items listed under “Consent Docket” are usually approved as a group with the proper motion from a member of the Trust. Members of the Trust may request discussion or separate action on any item on the Consent Docket. For more information about the Oklahoma City Zoological Trust, please call 405-424-3344. Page 2 of 72 AGENDA I. Meeting Minutes A. Minutes of July 23, 2025, Oklahoma City Zoological Trust Meeting ............................ Pages 4-5 II. Staff and/or Committee Updates A. Financial Report of June 2025 ............................................................................................. Pages 6-9 B. Financial Report of July 2025 .......................................................................................... Pages 10-13 C. FY 23-24 Audit Report ..................................................................................................... Pages 14-68 III. Items for Individual Consideration A. Approve Amphitheater Transaction Report by Gate 52 detailing investments to date of $2,290,457.20 in Additional Manager Improvements; Approve Amphitheater Capital Improvements Letter granting Renewal Terms to Gate 52 as written in the Management and Operating Agreement ....................................................................................................... Pages 69-72 IV. Items from Trustees V. Staff Reports A. Executive Director’s Report VI. Citizens to Be Heard VII. Adjournment Page 3 of 72 JOURNAL OF TRUST PROCEEDINGS JULY 23, 2025 Trustees Present: Vicki Howard, Chairperson Jon Trudgeon, Vice-Chairperson Heather Ross, Surrogate to the Mayor Craig Freeman, City Manager Camal Pennington, Councilperson, Ward 7 Derek Albro Dustin Fredrick Staff Present: Dwight Lawson, Executive Director/CEO Rebecca McReynolds, Chief Financial Officer Trevor Leonard, Chief Operations Officer Greg Heanue, Chief Marketing Officer Jennifer D’Agostino, Chief Animal Programs Officer Dahrenda Mitchell, Director of Guest Services and Membership Mandy Heaps, Executive OZS Director Kate Winters, Executive Assistant Others Present: Bailee Richards, Assistant Municipal Counselor, City of Oklahoma City Agenda Topics I. Secretary Pro Tem A. Jon Trudgeon, Trust Vice-Chairperson, appointed as secretary pro tem for this meeting. APPROVED. Moved by Trustee Derek Albro. Seconded by Trustee Craig Freeman. AYES: Trustees Vicki Howard, Jon Trudgeon, Heather Ross, Craig Freeman, Camal Pennington, Dustin Fredrick, Derek Albro. II. Receive Minutes A. Minutes of June 25, 2025 APPROVED. Moved by Trustee Derek Albro. Seconded by Trustee Dustin Fredrick. AYES: Trustees Vicki Howard, Jon Trudgeon, Heather Ross, Craig Freeman, Camal Pennington, Dustin Fredrick, Derek Albro. Page 4 of 72 Oklahoma City Zoological Trust July 23, 2025 Page 2 of 2 III. Receive Staff and/or Committee Updates A. Financial Reports of May 2025. CFO, Rebecca McReynolds, provided a draft of the financial report of June 2025. IV. Items for Individual Consideration A. Resolution of the Oklahoma City Zoological Trust Authorizing contract negotiations with one or more of the ranked consultants for Request for Qualifications (MZ-0080 A&E) Cat Forest Renovation at the Oklahoma City Zoo and Botanical Garden A&E. CEO, Dwight Lawson, presented the resolution authorizing contract negotiations for Project MZ-0080, Cat Forest Renovation. MOVED. Moved by Trustee Jon Trudgeon. Seconded by Trustee Dustin Fredrick. AYES: Trustees Vicki Howard, Jon Trudgeon, Heather Ross, Craig Freeman, Camal Pennington, Dustin Fredrick, Derek Albro. V. Items from Trustees A. Trustees Pennington and Freeman communicated the importance of voting in the upcoming GO Bond election. Trustees Ross and Albro shared their congratulations on baby Xerxes and Trustee Trudgeon shared a congratula- tions to the Zoo on having a great year with record attendance. VI. Staff Reports A. Animal Care – Baby updates: elephant, bat-ear fox kit, two red-crested turacos who have recently fledged in the DMA and we still have more babies on the way. Vet updates: the vet staff received their first voluntary African painted dog blood draw and our female red river hog underwent dental surgery and is doing well with her recovery. B. Human Resources – Turnover for the year was high, however, we are hopeful to lower that number this year. Volunteer program is continuing to thrive. C. PR & Marketing – New attendance record for the 24/25 year! Mathis Bros. promotion in July isn’t doing as well as expected, but we are evaluating. On July 10th we had a joint media event celebrating the Zoo Amphitheatre reno- vations and the unveiling of our new Gayla Peevey statue in the Pachyderm Building. World Elephant Day and World Primate Days are coming up and on September 11th CBS will broadcast the special they filmed during our Mexico monarch trip in February. D. OZS Update – Zoobrew ticket information and sponsorship information was shared. VII. Citizens to be Heard. A. None. VIII. Adjournment There being no further business to come before the Trust, the Chairperson declared the meeting adjourned at 5:12pm. Page 5 of 72 MEMO To: Oklahoma City Zoological Trust From: Dwight Lawson, Rebecca McReynolds Date: July 23, 2025 FY-25 Financial Summary as of June 30, 2025 FY- 25 FY- 25 Variance FY- 24 Variance Act- Variance Attendance: Actuals Budget Amount Variance % Actuals Last Year % Current Month 113,986 134,500 (20,514) -15.3% 113,780 206 0.2% Year to date 1,114,208 1,108,000 6,208 0.6% 1,107,995 6,213 0.6% Operating Revenue: Current Month $1,836,305 $2,037,643 ($201,338) -9.9% $2,005,497 ($169,192) -8.4% Year to date 16,872,784 16,768,082 104,702 0.6% 15,701,749 1,171,035 7.5% Per-Capita Revenue for the month was $16.11. Year to date per capita revenue is $15.14 which is $0.01 more than the budget of $15.13. Other Revenue: Current Month $222,432 $131,590 $90,842 69.0% $259,289 ($36,857) -14.2% Year to date 3,373,787 2,409,528 964,259 40.0% 2,635,610 $738,177 28.0% Operating Expenses: Current Month 2,413,626 2,143,689 $269,937 12.6% 2,877,376 ($463,750) -16.1% Year to date 24,751,497 25,280,263 (528,766) -2.1% 23,169,827 1,581,670 6.8% Operating Profit (Loss): Current Month ($354,889) $25,544 ($380,433) -1489.3% ($612,590) $257,701 -42.1% Year to date ($4,504,926) ($6,102,652) 1,597,726 -26.2% ($4,832,469) 327,543 -6.8% Sales Tax Revenue: Current Month $1,496,013 $1,550,050 ($54,037) -3.5% $1,464,633 $31,380 2.1% Year to date 18,049,159 18,587,270 (538,111) -2.9% 18,126,565 (77,406) -0.4% Net Income (Loss): Current Month $1,141,124 $1,575,593 ($434,469) -27.6% $852,044 $289,080 33.9% Year to date 13,544,233 12,484,617 1,059,616 8.5% 13,294,097 250,136 1.9% Annual YTD Budget Capital/Other: Budget Expenses Remaining % Capital Improvements $500,000 $425,505 $74,496 14.9% Remaining to OZS Fundraising: Annual Budget YTD Income Goal % 2024 Events/Fundraising/Endowments $1,546,390 $4,267,375 ($2,720,985) -176.0% 2024 Zoo Support 1,473,383 1,922,984 (449,601) -30.5% Page 6 of 72 OKLAHOMA CITY ZOOLOGICAL TRUST FY 2024-25 Capital Projects Department Project Name Budget YTD Exp Balance Status Ambassador Animals Outdoor Habitats 17,500.00 19,230.32 (1,730.32) Complete Birds Overwintering Brooder Boxes 1,000.00 1,001.05 (1.05) Complete Events Picnic Table Replacement 10,000.00 - 10,000.00 Removed Guest Experience Plaza Storage 5,500.00 4,321.70 1,178.30 Complete Guest Experience Guest Experience Carpet 25,057.67 21,989.67 3,068.00 Complete Hort/Grounds Green Works 10,000.00 9,970.61 29.39 Complete Hort/Grounds Zero Turn Mowers 8,000.00 9,895.86 (1,895.86) Complete Maintenance Boardwalk Repairs 50,000.00 69,700.02 (19,700.02) Complete Maintenance Roof Replacement 50,000.00 - 50,000.00 Not Started Maintenance Concrete Repair 50,000.00 54,320.00 (4,320.00) Complete Maintenance HVAC 100,000.00 63,667.75 36,332.25 In Process Maintenance Cat Forest Floor 25,000.00 7,395.00 17,605.00 In Process Maintenance Great Escape Floor 25,000.00 - 25,000.00 Not Started Technology ACME Box Office Windows 45,000.00 36,469.10 8,530.90 Complete Technology ACME Hardware Refresh 25,000.00 27,581.65 (2,581.65) Complete Technology CIP Mobile App 50,000.00 21,410.52 28,589.48 Complete Maintenance HVAC - Vet Hospital - 44,972.99 - Complete Commissary Insect Rearing - 490.99 - Complete Hoofstock Feeder Winch - 479.00 - Complete Technology Habitat Cameras - 1,951.80 - Complete Maintenance Hay Shed/Hay Feeder - 1,561.72 - Complete Technology eCommerce Site Updates - 2,250.00 - Complete Animal EcoLeaders-Animal Wellbeing - 25,000.00 - Complete Primates Washing Machine - 1,844.75 - Complete Contingency 2,942.33 - 2,942.33 Total CIP Budget 500,000.00 425,504.50 74,495.50 Other: Contingency Fund $500,000 Department Project Name Budget YTD Exp Balance Status Education Vinyl Padded Folding Chairs 4,800.00 4,728.53 71.47 Complete Hort/Grounds Tree, Plants & Signage 25,000.00 9,410.00 15,590.00 In Process Maintenance Vehicles 50,000.00 55,800.00 (5,800.00) Complete Administration Director Vehicle 64,490.89 64,490.89 - Complete Security ERT Shotguns 7,500.00 5,322.81 2,177.19 In Process Maintenance Finalize AZA Inspection Repairs 67,498.27 67,498.27 - Complete Maintenance Elephant Fan Replacement 24,380.00 22,398.10 1,981.90 Complete Maintenance Cat Forest Siding Replacement 111,535.46 133,435.46 (21,900.00) Complete Maintenance Hail Storm Repairs 100,000.00 111,317.52 (11,317.52) In Process Maintenance Gas Line Repairs - - - Complete Maintenance Contingency - Small Cat Glass 9,600.00 9,699.00 (99.00) Complete Total CIP Budget 464,804.62 484,100.58 15,899.42 Balance Available: 15,899.42 Master Plan/Capital Projects Planned Expenses Balance Status Master Plan Africa/Savana/Entry Plaza 34,948,760.00 35,623,738.56 (674,978.56) Wrapping up punch list Master Plan Shore to Sea 26,000,000.00 4,004,242.59 21,995,757.41 Project redesign Master Plan WellLines/Pump Houses/Tower 1,377,575.00 232,389.94 1,145,185.06 In Process Master Plan Oklahoma City Aquarium 507,800.00 424,906.69 82,893.31 Planning stage Master Plan African Plateau Phase 1 281,400.00 - 281,400.00 Not started Master Plan Reptile/Jungle Gym 2,189,996.00 - 2,189,996.00 Not started Capital Project Solar Lighting-Elephant Bldg 275,000.00 - 275,000.00 Not started Capital Project Elephant Shade Structure 100,000.00 54,642.50 45,357.50 In process Capital Project Splash Pad Remodel - - - Not started Capital Project Amphitheater Improvements 150,000.00 186,107.14 (36,107.14) Complete Capital Project Gayla Peevey Statue 93,800.00 93,800.00 - Complete Capital Project Stingray Bay 4,621.45 4,621.45 - Complete Total 65,928,952.45 40,624,448.87 25,304,503.58 Grants Budget Expenses Balance Status Grant Asphalt Project 250,000.00 - 250,000.00 Awarded - FY 2025 Grant Carport and EV Purchases 282,096.00 - 282,096.00 Awarded Grant OG&E Community Solar Project - - - Not Awarded Grant Rubber Footing Upgrades - - - Not Awarded - May Reapply Grant Worm Bins 5,000.00 2,302.84 2,697.16 Awarded Total 537,096.00 2,302.84 534,793.16 Page 7 of 72 OKLAHOMA CITY ZOOLOGICAL TRUST INCOME STATEMENT SUMMARY FOR THE TWELVE MONTHS ENDING 6/30/2025 CURRENT MONTH YEAR TO DATE ACTUAL BUDGET LAST YR ACTUAL BUDGET LAST YR REVENUES: ADMISSIONS $719,986 $731,673 $577,705 $6,120,409 $5,832,564 $5,164,087 ANIMAL SHOW ADMISSIONS 26,360 34,384 19,224 179,345 208,659 167,127 ANIMAL FEEDINGS 38,861 44,163 37,738 309,986 333,167 254,672 FOOD & BEVERAGE/VENDING 145,338 143,726 135,256 1,438,006 1,284,000 1,246,737 CATERING/RENTALS 16,509 136,000 5,615 CONCERTS 115,812 105,000 140,000 371,478 350,000 370,847 RIDES 64,828 63,750 56,109 445,984 512,082 463,486 MERCHANDISE COMMISSION 66,764 75,262 77,084 665,813 620,000 724,535 STROLLER/RENTALS/WILD ENC 143,254 98,809 95,886 681,491 738,449 708,469 EDUCATION 49,636 63,160 9,336 812,261 980,660 501,020 PROMOTIONS 117,604 126,519 254,981 2,647,309 2,350,000 2,673,450 MEMBERSHIP 343,716 526,877 522,288 3,074,526 3,250,000 3,221,691 OTHER 4,147 7,813 79,890 126,176 172,500 200,014 TOTAL OPERATING REVENUE 1,836,305 2,037,643 2,005,497 16,872,784 16,768,082 15,701,749 COST OF GOODS SOLD 0 0 0 0 0 0 GROSS MARGIN $1,836,305 $2,037,643 $2,005,497 $16,872,784 $16,768,082 $15,701,749 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% OPERATING EXPENSES: SALARIES 1,099,181 1,086,194 1,474,047 12,388,820 12,890,226 11,403,271 BENEFITS 288,988 279,928 277,965 3,441,787 3,365,859 3,137,187 SUPPLIES 109,071 65,460 107,098 822,497 865,012 767,044 UTILITIES 63,403 89,795 70,227 799,775 1,077,540 862,382 OUTSIDE SERVICES 383,583 141,497 302,001 2,662,699 2,248,894 2,470,915 ANIMAL CARE 74,973 59,573 71,939 1,013,997 1,075,267 970,663 OTHER 394,428 421,242 574,099 3,621,923 3,757,465 3,558,365 TOTAL OPERATING EXPENSE 2,413,626 2,143,689 2,877,376 24,751,497 25,280,263 23,169,827 OTHER REVENUES: LEASES 47,023 47,023 47,023 1,433,074 1,404,528 1,404,092 CONTRIBUTIONS 14,781 24,567 42,572 129,508 195,000 162,066 INTEREST 160,628 60,000 169,695 1,811,205 810,000 1,069,452 TOTAL OTHER REVENUE 222,432 131,590 259,289 3,373,787 2,409,528 2,635,610 OPERATING INCOME (LOSS) (354,889) 25,544 (612,590) (4,504,926) (6,102,652) (4,832,469) TRANSFERS NET INCOME (LOSS) ($354,889) $25,544 ($612,590) ($4,504,926) ($6,102,652) ($4,832,469) Page 8 of 72 OKLAHOMA CITY ZOOLOGICAL TRUST BUDGET ANALYSIS FOR THE TWELVE MONTHS ENDING 6/30/2025 CURRENT MONTH YEAR TO DATE ACTUAL BUDGET LAST YR ACTUAL BUDGET LAST YR REVENUES: GUEST EXPERIENCE $1,205,390 $1,191,766 $999,001 $9,841,034 $9,528,922 $8,729,113 GROUP EVENTS 115,812 121,509 140,000 371,478 486,000 376,462 OTHER 515,103 724,369 866,495 6,660,272 6,753,160 6,596,175 TOTAL OPERATING REVENUE 1,836,305 2,037,643 2,005,497 16,872,784 16,768,082 15,701,749 OPERATIONAL EXPEND BY DIVISION: ADMINISTRATIVE 512,929 565,958 546,991 4,937,442 5,225,487 4,729,407 ANIMAL 455,114 427,562 580,969 5,465,127 5,585,967 5,059,529 MARKETING & INTERPRETIVE SVC 235,452 185,313 468,625 2,610,978 2,503,314 2,645,789 BUILDING & GROUNDS 577,843 503,083 617,112 6,054,719 6,439,880 5,649,860 EDUCATION 132,794 110,633 125,771 1,111,049 1,118,017 787,960 VISITOR SERVICES 353,084 234,393 377,827 2,699,093 2,573,431 2,480,506 VETERINARY 146,409 116,746 160,082 1,873,090 1,834,166 1,816,776 TOTAL OPERATING EXPENSE 2,413,626 2,143,689 2,877,376 24,751,497 25,280,263 23,169,827 NET OPERATING REVENUE (577,321) (106,046) (871,879) (7,878,713) (8,512,181) (7,468,078) OTHER REVENUE: SALES TAX FUND REVENUE 1,496,013 1,550,050 1,464,633 18,049,159 18,587,270 18,126,565 CONTRIBUTIONS 14,781 24,567 42,572 129,508 195,000 162,066 OTHER REVENUE 207,651 107,023 216,718 3,244,279 2,214,528 2,473,544 TOTAL OTHER REVENUE 1,718,445 1,681,639 1,723,923 21,422,946 20,996,798 20,762,175 NET REVENUE BEFORE DEPRECIATION AND CAPITAL EXPENDITURES $1,141,124 $1,575,593 $852,044 $13,544,233 $12,484,617 $13,294,097 OPERATING REVENUE/EXPENSE RATIO 76.08% 95.05% 69.70% 68.17% 66.33% 67.77% Page 9 of 72 MEMO To: Oklahoma City Zoological Trust From: Dwight Lawson, Rebecca McReynolds Date: August 27, 2025 FY-26 Financial Summary as of July 31, 2025 FY- 26 FY- 26 Variance FY- 25 Variance Act- Variance Attendance: Actuals Budget Amount Variance % Actuals Last Year % Current Month 87,087 79,800 7,287 9.1% 80,620 6,467 8.0% Year to date 87,087 79,800 7,287 9.1% 80,620 6,467 8.0% Operating Revenue: Current Month $1,465,647 $1,221,106 $244,541 20.0% $1,057,408 $408,239 38.6% Year to date 1,465,647 1,221,106 244,541 20.0% 1,057,408 408,239 38.6% Per-Capita Revenue for the month was $16.83. Year to date per capita revenue is $16.83 which is $1.53 more than the budget of $15.30. Other Revenue: Current Month $544,119 $567,150 ($23,031) -4.1% $513,501 $30,618 6.0% Year to date 544,119 567,150 (23,031) -4.1% 513,501 $30,618 6.0% Operating Expenses: Current Month 2,328,601 2,859,081 ($530,480) -18.6% 1,415,317 $913,284 64.5% Year to date 2,328,601 2,859,081 (530,480) -18.6% 1,415,317 913,284 64.5% Operating Profit (Loss): Current Month ($318,836) ($1,070,824) $751,988 -70.2% $155,592 ($474,428) -304.9% Year to date ($318,836) ($1,070,824) 751,988 -70.2% $155,592 (474,428) -304.9% Sales Tax Revenue: Current Month $1,545,698 $1,493,525 $52,173 3.5% $1,530,807 $14,891 1.0% Year to date 1,545,698 1,493,525 52,173 3.5% 1,530,807 14,891 1.0% Net Income (Loss): Current Month $1,226,863 $422,700 $804,163 190.2% $1,686,399 ($459,536) -27.2% Year to date 1,226,863 422,700 804,163 190.2% 1,686,399 (459,536) -27.2% Annual YTD Budget Capital/Other: Budget Expenses Remaining % Capital Improvements $500,000 $0 $500,000 100.0% Page 10 of 72 OKLAHOMA CITY ZOOLOGICAL TRUST FY 2025-26 Capital Projects Department Project Name Budget YTD Exp Balance Status Carnivore Predator Pass Trees 7,000.00 - 7,000.00 Not Started Grounds/Hort Power Washer 5,000.00 - 5,000.00 Not Started Grounds/Hort Green Works 10,000.00 - 10,000.00 Not Started Grounds/Hort Irrigation 11,430.00 - 11,430.00 Not Started Grounds/Hort Tree Installation 30,000.00 - 30,000.00 Not Started Housekeeping Trash cart replacement 35,000.00 - 35,000.00 Not Started IT New Plaza Sound System 35,000.00 - 35,000.00 Not Started Sam Moore Aviary Painting and Maintenance Siding Replacement 9,800.00 - 9,800.00 Not Started Maintenance Bat Floor Replacement 12,000.00 - 12,000.00 Not Started Maintenance Club Car Lithium Battery Upgrades 20,500.00 - 20,500.00 Not Started Concrete Path Maintenance Repair/Replacement 50,000.00 - 50,000.00 Not Started Boardwalk and Handrail Maintenance Replacement/Repair 75,000.00 - 75,000.00 Not Started Maintenance Perimeter Fence Maintenance Replacement 80,500.00 - 80,500.00 Not Started Maintenance HVAC 100,000.00 - 100,000.00 Not Started Marketing Haunt the Zoo Props 18,000.00 - 18,000.00 Not Started Contingency 770.00 - 770.00 Total CIP Budget 500,000.00 - 500,000.00 Other: Contingency Fund $500,000 Department Project Name Budget YTD Exp Balance Status Administration Small Project Planning 15,000.00 - 15,000.00 Not Started Birds Bald Eagle Shelter 5,000.00 - 5,000.00 Not Started Birds Mesh Netting Over Avian Habitats 9,750.00 - 9,750.00 Not Started Maintenance Lotus Handrails 1,991.01 1,991.01 - In Progress Total CIP Budget 31,741.01 1,991.01 29,750.00 Balance Available: 468,258.99 498,008.99 Master Plan/Capital Projects Planned Expenses Balance Status Master Plan Shore to Sea (MZ-0069/MZ-0070) 26,000,000.00 4,016,241.29 21,983,758.71 RFPs issued Master Plan WellLines/Pump Houses/Tower 1,200,000.00 240,324.44 959,675.56 RFP issued Master Plan Oklahoma City Aquarium 507,800.00 424,906.69 82,893.31 Planning stage Master Plan African Plateau Phase 1 281,400.00 - 281,400.00 Not started Master Plan Reptile/Jungle Gym 2,189,996.00 - 2,189,996.00 Not started Master Plan Cat Forest Updates - - - Not started Capital Project Solar Panels-Elephant Bldg 275,000.00 - 275,000.00 Not started Capital Project Elephant Shade Structure 100,000.00 88,091.24 11,908.76 Not started Capital Project Splash Pad Remodel 200,000.00 - 200,000.00 Not started Capital Project Great Escape HVAC - - In process Capital Project Oklahoma Trails Life Support - - Not started Capital Project Insurance Repairs - - In process Capital Project White Naped Crane Yard - - Not started Capital Project Large Habitat Servicing - - In process Total 30,754,196.00 4,769,563.66 25,984,632.34 Grants Budget Expenses Balance Status Grant Asphalt Project 250,000.00 - 250,000.00 Awarded - FY 2025 Grant Carport and EV Purchases 282,096.00 - 282,096.00 Awarded Total 532,096.00 - 532,096.00 Page 11 of 72 OKLAHOMA CITY ZOOLOGICAL TRUST FS- INCOME STATEMENT SUMMARY FOR THE ONE MONTH ENDING 7/31/2025 CURRENT MONTH YEAR TO DATE ACTUAL BUDGET LAST YR ACTUAL BUDGET LAST YR REVENUES: ADMISSIONS $505,201 $598,125 $514,684 $505,201 $598,125 $514,684 ANIMAL SHOW ADMISSIONS 17,036 9,519 12,751 17,036 9,519 12,751 ANIMAL FEEDINGS 23,077 23,231 31,359 23,077 23,231 31,359 FOOD & BEVERAGE/VENDING 82,182 96,644 91,639 82,182 96,644 91,639 CONCERTS 105,000 105,000 70,000 105,000 105,000 70,000 RIDES 47,018 38,838 47,624 47,018 38,838 47,624 MERCHANDISE COMMISSION 52,334 59,491 60,424 52,334 59,491 60,424 STROLLER/RENTALS/WILD ENC 59,678 56,049 65,793 59,678 56,049 65,793 EDUCATION 63,657 51,510 1,796 63,657 51,510 1,796 PROMOTIONS 44,602 41,989 13,897 44,602 41,989 13,897 MEMBERSHIP 463,477 135,465 145,743 463,477 135,465 145,743 OTHER 2,385 5,246 1,697 2,385 5,246 1,697 TOTAL OPERATING REVENUE 1,465,647 1,221,106 1,057,408 1,465,647 1,221,106 1,057,408 COST OF GOODS SOLD 0 0 0 0 0 0 GROSS MARGIN $1,465,647 $1,221,106 $1,057,408 $1,465,647 $1,221,106 $1,057,408 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% OPERATING EXPENSES: SALARIES 1,192,218 1,587,705 620,381 1,192,218 1,587,705 620,381 BENEFITS 314,352 362,884 109,283 314,352 362,884 109,283 SUPPLIES 41,259 80,198 43,765 41,259 80,198 43,765 UTILITIES 83,080 105,347 69,587 83,080 105,347 69,587 OUTSIDE SERVICES 195,578 224,906 142,095 195,578 224,906 142,095 ANIMAL CARE 83,048 131,753 62,279 83,048 131,753 62,279 OTHER 419,065 366,288 367,926 419,065 366,288 367,926 TOTAL OPERATING EXPENSE 2,328,601 2,859,081 1,415,317 2,328,601 2,859,081 1,415,317 OTHER REVENUES: LEASES 369,484 369,483 406,760 369,484 369,483 406,760 CONTRIBUTIONS 10,928 77,667 13,754 10,928 77,667 13,754 INTEREST 163,706 120,000 92,987 163,706 120,000 92,987 TOTAL OTHER REVENUE 544,119 567,150 513,501 544,119 567,150 513,501 OPERATING INCOME (LOSS) (318,836) (1,070,824) 155,592 (318,836) (1,070,824) 155,592 TRANSFERS NET INCOME (LOSS) ($318,836) ($1,070,824) $155,592 ($318,836) ($1,070,824) $155,592 Page 12 of 72 OKLAHOMA CITY ZOOLOGICAL TRUST BUDGET ANALYSIS FOR THE ONE MONTH ENDING 7/31/2025 CURRENT MONTH YEAR TO DATE ACTUAL BUDGET LAST YR ACTUAL BUDGET LAST YR REVENUES: GUEST EXPERIENCE $786,526 $881,897 $824,273 $786,526 $881,897 $824,273 GROUP EVENTS 105,000 105,000 70,000 105,000 105,000 70,000 OTHER 574,121 234,210 163,133 574,121 234,210 163,133 TOTAL OPERATING REVENUE 1,465,647 1,221,106 1,057,408 1,465,647 1,221,106 1,057,408 OPERATIONAL EXPEND BY DIVISION: ADMINISTRATIVE 609,033 605,509 425,000 609,033 605,509 425,000 ANIMAL 487,702 698,528 278,154 487,702 698,528 278,154 MARKETING & INTERPRETIVE SVC 105,848 161,848 84,361 105,848 161,848 84,361 BUILDING & GROUNDS 529,800 701,011 309,074 529,800 701,011 309,074 EDUCATION 136,693 186,208 59,622 136,693 186,208 59,622 VISITOR SERVICES 274,669 289,848 159,539 274,669 289,848 159,539 VETERINARY 184,856 216,129 99,567 184,856 216,129 99,567 TOTAL OPERATING EXPENSE 2,328,601 2,859,081 1,415,317 2,328,601 2,859,081 1,415,317 NET OPERATING REVENUE (862,954) (1,637,975) (357,909) (862,954) (1,637,975) (357,909) OTHER REVENUE: SALES TAX FUND REVENUE 1,545,698 1,493,525 1,530,807 1,545,698 1,493,525 1,530,807 CONTRIBUTIONS 20,211 77,667 13,754 20,211 77,667 13,754 OTHER REVENUE 533,190 489,483 499,747 533,190 489,483 499,747 TOTAL OTHER REVENUE 2,099,099 2,060,675 2,044,308 2,099,099 2,060,675 2,044,308 NET REVENUE BEFORE DEPRECIATION AND CAPITAL EXPENDITURES $1,236,145 $422,700 $1,686,399 $1,236,145 $422,700 $1,686,399 OPERATING REVENUE/EXPENSE RATIO 62.94% 42.71% 74.71% 62.94% 42.71% 74.71% Page 13 of 72 Board of Trustees Oklahoma City Zoological Trust Oklahoma City, Oklahoma We are pleased to present this report related to our 2024 audit of the Oklahoma City Zoological Trust (Trust) financial statements. Our report summarizes certain matters required by professional standards to be communicated to you in your oversight responsibility for the Trust’s financial reporting process. This report is intended solely for the information and use of the Board of Trustees and management, and is not intended to be, and should not be, used by anyone other than these specified parties. The following required communications summarize our responsibilities regarding the financial statement audit as well as observations from our audit that are significant and relevant to your responsibility to oversee the financial and related compliance reporting process. This letter includes other comments and suggestions with respect to matters that came to our attention in connection with our audit of the Trust’s financial statements. These items are offered as constructive suggestions to be considered part of the ongoing process of modifying and improving the Trust’s practices and procedures. Our Responsibilities We describe our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States to you in our engagement letter dated May 15, 2024. Our audit of the financial statements does not relieve management or those charged with governance of their responsibilities, which are also described in that letter. Planned Scope and Timing of the Audit We have previously issued a separate communication dated July 29, 2024 regarding the planned scope and timing of our audit and identified significant risks. We encountered a delay in the timing of the audit due to ERP accounting system implementation issues and the Trust was not able to transition to the new system. As the Trust did not transfer to the new system, we did not have any audit procedures relating to the new ERP accounting system as originally communicated. We made no other significant changes to the scope of our procedures. Accounting Policies and Practices Preferability of Accounting Policies and Practices - Under generally accepted accounting principles, in certain circumstances, management may select among alternative accounting practices. In our view, in such circumstances, management has selected the preferable accounting practice. Adoption of, or Change in, Accounting Policies - Management has the ultimate responsibility for the appropriateness of the accounting policies used by the Trust. The following is a description of significant accounting policies or their application that were either initially selected or changed during the year:  The Trust entered into a new service concession agreement that was recorded under GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Page 14 of 72 Arrangements, in the current year. The Trust calculated the present value of the guaranteed payments and recorded an initial receivable and deferred inflow of $10,364,231. The Trust also recorded improvements and equipment of $477,674. Significant Accounting Policies - We did not identify any significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Unusual Transactions - We did not identify any significant unusual transactions. Management’s Judgments and Accounting Estimates - Accounting estimates are an integral part of the preparation of financial statements and are based upon management’s current judgment. The process used by management encompasses their knowledge and experience about past and current events, and certain assumptions about future events. You may wish to monitor throughout the year the process used to determine and record these accounting estimates. The following summarizes the significant accounting estimates reflected in the Trust’s June 30, 2024 financial statements.  Claims Liability: Management records an estimate for self-insured medical claims which includes incurred but not reported claims. This estimate is calculated by the Trust using an actuarial report based on historical claims and experience. As a basis for our conclusion, we agreed the total liability reported by the Trust to the actuarial report and compared actual claims paid per the actuarial report to claims incurred by the Trust.  Net Pension Liability: The City’s pension systems contract with an external actuary to develop an estimate for the actuarial value of plan assets as well as the actuarial accrued liability for each plan. The Trust’s portion of the net pension liability is based on their proportional share of the total liability. The valuations performed by the external actuary incorporate a number of assumptions, including among others, a rate of return on investments, projected salary increases, mortality rates and assumptions related to increases in benefits. We performed procedures to test the completeness and accuracy of information provided to the actuary as a basis for their calculations. We also obtained an understanding of the methods and assumptions used by the actuary, evaluating them for compliance with generally accepted accounting principles and consistency from year to year and recalculated the allocation percentage to ensure the accuracy of the Trust’s proportionate share.  Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions (OPEB): The City sponsors a single-employer defined benefit healthcare plan that provides healthcare benefits to retirees and their dependents, including medical, dental, and vision coverage. A portion of the total liability is allocated to the Trust based on total employees. The City hires an external actuary to evaluate and estimate the expense/expenditures and related liabilities. See Note 6 to the basic financial statements. As a basis for our conclusion, we performed procedures to verify the completeness and accuracy of the City data supplied to the actuary as a basis for the actuary’s calculations and recalculated the allocation of the OPEB liability based on the Trust’s proportionate share of the total OPEB liability. This included obtaining evidence to support the reasonableness of the assumptions used by the actuary, such as obtaining census data provided by the actuary and reviewing for reasonableness and completeness. In addition, we obtained the report directly from the actuary, obtained an understanding of the methods and assumptions used by the actuary as well as evaluating the model used by the actuary for appropriateness and compliance with GAAP. Page 15 of 72 2 Audit Adjustments and Uncorrected Misstatements Audit adjustments, other than those that are clearly trivial, proposed by us and recorded by the Trust are summarized below:  Entry to record a voided check for $80,550 resulting in an increase to cash and accounts payable.  Entry to reclassify a receivable that was incorrectly recorded to accounts payable for $1,487,529 resulting in an increase to accounts receivable and accounts payable. Uncorrected misstatements are summarized below. We identified the following uncorrected misstatement that management has concluded is not, individually or in the aggregate, material to the financial statements. We agree with management’s conclusion in that regard. Uncorrected misstatements or matters underlying these uncorrected misstatements could potentially cause future period financial statements to be materially misstated, even if we have concluded that the uncorrected misstatements are immaterial to the financial statements under audit.  Entry to record an unrecorded liability for $29,089 resulting in an increase to accounts payable and expenses. Other Information Included in Annual Reports Our responsibility for other information included in annual reports is to read the information and consider whether its content or the manner of its presentation is materially inconsistent with the financial information covered by our auditor’s report, whether it contains a material misstatement of fact or whether the other information is otherwise misleading. We read the Trust’s required supplementary information and supplementary information. We did not identify material inconsistencies with the audited financial statements. Observations About the Audit Process We did not discuss with management any alternative treatments within generally accepted accounting principles for accounting policies and practices related to material items during the current audit year; we encountered no disagreements with management over the application of significant accounting principles, the basis for management’s judgments on any significant matters, the scope of the audit or significant disclosures to be included in the financial statements; we are not aware of any consultations management had with other accountants about accounting or auditing matters; no significant issues arising from the audit were discussed or the subject of correspondence with management; we did not encounter any difficulties in dealing with management relating to the performance of the audit; and we did not encounter any significant and difficult or contentious matters that required consultation outside the engagement team. Shared Responsibilities for Independence Independence is a joint responsibility and is managed most effectively when management, audit committees, and audit firms work together in considering compliance with AICPA and Government Accountability Office (GAO) independence rules. For Allen, Gibbs & Houlik, L.C. (AGH) to fulfill its professional responsibility to maintain and monitor independence, management, the Board of Trustees, and AGH each play an important role. Page 16 of 72 3 Our Responsibilities  AICPA and GAO rules require independence both of mind and in appearance when providing audit and other attestation services. AGH is to ensure that the AICPA and GAO’s General Requirements for performing non-attest services are adhered to and included in all letters of engagement.  Maintain a system of quality control over compliance with independence rules and firm policies. The Trust’s Responsibilities  Timely inform AGH, before the effective date of transactions or other business changes, of the following: − New affiliates, directors, officers, or persons in financial reporting and compliance oversight roles. − Changes in the reporting entity impacting affiliates such as partnerships, related entities, investments, joint ventures, component units, or jointly governed organizations.  Provide necessary affiliate information such as new or updated structure charts, as well as financial information required to perform materiality calculations needed for making affiliate determinations.  Understand and conclude on the permissibility, prior to the Trust and its affiliates, officers, directors, or persons in a decision-making capacity, engaging in business relationships with AGH.  Not entering into arrangements of nonaudit services resulting in AGH being involved in making management decisions on behalf of the Trust.  Not entering into relationships resulting in AGH, AGH covered persons or their close family members, temporarily or permanently acting as an officer, director, or person in an accounting, financial reporting or compliance oversight role at the Trust. Management Representations In connection with our audit procedures, we have obtained a written management representation letter. This representation letter constitutes written acknowledgments by management that it has the primary responsibility for the fair presentation of the financial statements in conformity with generally accepted accounting principles and also includes the more significant and specific oral representations made by officers and employees during the course of the audit. The letter is intended to reduce the possibility of misunderstandings between us and the Trust and reminds the signing officers to consider seriously whether all material liabilities, commitments and contingencies or other important financial information have been brought to our attention. Other Matters Future Accounting Topics  GASB Statement No. 101, Compensated Absences, better meets the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. This is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The provisions of this statement are effective for financial statements for the Trust’s fiscal year ending June 30, 2025. Page 17 of 72 4  GASB Statement No. 102, Certain Risk Disclosures, will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make an entity vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to an entity's financial condition. The provisions of this statement are effective for financial statements for the Trust's fiscal year ending June 30, 2025.  GASB Statement No. 103, Financial Reporting Model Improvements, improves five key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing an entity’s accountability. The provisions of this statement are effective for financial statements for the Trust’s fiscal year ending June 30, 2026.  GASB Statement No. 104, Disclosure of Certain Capital Assets, improves financial reporting by providing users of financial statements with essential information about certain types of capital assets in order to make informed decisions and assess accountability. Additionally, the disclosure requirements will improve consistency and comparability between entities. This statement requires certain capital assets to be disclosed separately in the capital assets note disclosures including lease assets, intangible right-to-use assets recognized in accordance with Public-Private and Public-Public Partnerships and Availability Payment Arrangements and subscription assets. In addition, intangible assets other than those three types must be disclosed separately by major class. This statement also requires additional disclosures on capital assets held for sale. The provisions of this statement are effective for financial statements for the Trust’s fiscal year ending June 30, 2026. Electronic Fund and Wire Transfers - The risk of loss or fraud around the electronic transfer of cash is significant and has grown exponentially in recent years. Therefore, we suggest the Trust evaluate current controls around these types of transactions to minimize risks associated with electronic payments. In general, the Trust’s processes and controls should:  Maintain dual authorizations over electronic payments.  Develop a formal written policy for generating, approving and executing electronic payments to ensure that all transfers are properly performed, routed, and accounted for. The lack of a formal written agreement can lead to improper transaction recording, whether by accident or fraud, that can result in significant loss to the Trust.  Utilize written agreements with vendors that specifically communicate wire procedures, account numbers, multi-factor authentication requirements, change or update requirements, etc. These agreements should be strictly followed and extremely difficult to change to minimize the risk of fraudulent activity around electronic payments. Your bank or insurance company many times will have best practices and templates that align with the banking procedures or insurance policies already in place. Cybersecurity - Effective cybersecurity risk management continues to be more important than ever in today’s environment. Those charged with governance and executive management (the governance team) face an enormous challenge: to oversee how the organization manages cybersecurity risk. Page 18 of 72 5 An effective cybersecurity risk management program includes assessments of your comprehensive risk, controls and vulnerabilities to provide reasonable, but not absolute, assurance that material breaches are prevented or detected, and mitigated in a timely manner. The combined effects of an organization’s dependency on IT, the complexity of IT networks and business applications, extensive reliance on third parties and human nature (i.e., susceptibility to social engineering) are only likely to increase the need for effective cybersecurity risk management programs. As a best practice, we encourage executive management to be intimately involved with the risk management program and to share the results with the governance team. Comprehensive Policy and Procedure Review - Given the broad and deep scope of your operations, you should consider completing a comprehensive evaluation of the adequacy and effectiveness of the entity’s internal financial policies, processes and procedures, including a comparison to best practices among organizations the same size. For entities that have experienced budget cuts in the finance area or those that have experienced turnover, a periodic review of controls is imperative. Even if your finance team has been stable over the years, we remind you that even the best design of controls is only as good as the people who carryout and execute such controls. Financial policies, procedures and processes are a key element of sound fiscal administration. When policies are effective, they can preserve or enhance the fiscal health and wealth of the organization and create efficiencies for staff members. This comprehensive evaluation could include: 1. Evaluation of existing controls 2. Identification of financial policies that could lead to vulnerability to fraud and/or abuse 3. For those identified weaknesses and risks, recommendations for improvements Closing We will be pleased to respond to any questions you have about this report or set up an introductory meeting to discuss the other recommendations at no charge. We appreciate the opportunity to continue to be of service to the Oklahoma City Zoological Trust. Allen, Gibbs & Houlik, L.C CERTIFIED PUBLIC ACCOUNTANTS Wichita, KS August 1, 2025 Page 19 of 72 6 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2024 AND 2023 WITH INDEPENDENT AUDITOR’S REPORT Page 20 of 72 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2024 AND 2023 WITH INDEPENDENT AUDITOR’S REPORT Page 21 of 72 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma FINANCIAL STATEMENTS Years Ended June 30, 2024 and 2023 TABLE OF CONTENTS Page Independent Auditor’s Report ........................................................................................... 1-3 Management’s Discussion and Analysis ........................................................................... 4-7 Basic Financial Statements: Statements of Net Position ........................................................................................... 8 Statements of Revenues, Expenses and Changes in Net Position ............................... 9 Statements of Cash Flows ........................................................................................... 10 Notes to the Financial Statements................................................................................ 11 - 34 Required Supplementary Information: Defined Benefit Pension Plan ...................................................................................... 35 Other Post-Employment Benefit Plan ........................................................................... 36 - 37 Supplementary Information: Combining Statement of Net Position as of June 30, 2024 ........................................... 38 Combining Statement of Revenues, Expenses and Changes in Net Position for the Year Ended June 30, 2024 ............................................................ 39 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards................................... 40 - 41 This is a copy of the Trust’s annual financial statements reproduced from an electronic file. An original copy of this document is available at the Trust’s office. Page 22 of 72 INDEPENDENT AUDITOR’S REPORT Board of Trustees Oklahoma City Zoological Trust Oklahoma City, Oklahoma Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of the Oklahoma City Zoological Trust (Trust), as of and for the years ended June 30, 2024 and 2023, and the related notes to the financial statements, which collectively comprise the Trust’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the Trust, as of June 30, 2024 and 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Trust and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Trust’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Page 23 of 72 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control. Accordingly, no such opinion is expressed.  evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Trust’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Page 24 of 72 2 Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Trust’s basic financial statements. The supplementary information as listed in the table of contents is presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information as listed in the table of contents is fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 1, 2025 on our consideration of the Trust’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Trust’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Trust’s internal control over financial reporting and compliance. Allen, Gibbs & Houlik, L.C CERTIFIED PUBLIC ACCOUNTANTS Wichita, KS August 1, 2025 Page 25 of 72 3 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma MANAGEMENT’S DISCUSSION AND ANALYSIS Years Ended June 30, 2024 and 2023 Introduction Within this section of the Oklahoma City Zoological Trust’s (Trust) annual financial report, the Trust’s management provides narrative discussion and analysis of the Trust’s financial activities for the years ended June 30, 2024 and 2023. This should be read in conjunction with the accompanying financial statements of the Trust. The Trust is a blended component unit of the City of Oklahoma City, Oklahoma (City). Financial Highlights Trust assets and deferred outflows of resources exceeded liabilities by $141,353,644 (net position) as of June 30, 2024. This compares to the previous year when assets and deferred outflows of resources exceeded liabilities by $130,071,841. Trust liabilities and deferred inflows of resources increased by $6,291,964 to $83,388,375 for fiscal year 2024. Total net position at June 30, 2024, is comprised of the following:  Net investment in capital assets of $103,625,752 includes capital assets, net of accumulated depreciation, reduced for outstanding debt related to the purchase or construction of capital assets. The balance as of June 30, 2023 was $98,282,793.  Restricted for debt service includes investments in trust accounts of $81,212. The balance as of June 30, 2023 was $53,049.  Restricted for health claims of $181,930 includes the cash in trust accounts, net of the related liability for claims incurred but not yet reported. The balance as of June 30, 2023 was $281,906.  Unrestricted of $37,464,750 represents the portion available to maintain the Trust’s continuing obligations to citizens and creditors. The balance as of June 30, 2023 was $31,454,093. Overview of the Financial Statements Management’s discussion and analysis introduced the Trust’s basic financial statements. The basic financial statements include the: 1) statements of net position; 2) statements of revenues, expenses and changes in net position; 3) statements of cash flows; and 4) notes to the financial statements. Additional information to supplement the basic financial statements is also included in this report. Basic Financial Statements These statements provide both long and short-term financial information about the overall status of the Trust. The Trust’s financial reporting uses a perspective similar to that found in the private sector with its basis in full accrual accounting. The statements of net position present information that includes all of the Trust’s assets, deferred outflows of resources, liabilities and deferred inflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial condition of the Trust as a whole is improving or deteriorating. Page 26 of 72 4 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma MANAGEMENT’S DISCUSSION AND ANALYSIS Years Ended June 30, 2024 and 2023 The statement of revenues, expenses and changes in net position reports how the Trust’s net position changed during the current fiscal year. All current year revenues and expenses are included regardless of when cash is received or paid. The statement of cash flows reports the inflows and outflows of the Trust’s cash. Financial Analysis The Trust’s net position at June 30, 2024, is $141,353,644. This is an increase of $11,281,803 from the June 30, 2023 net position of $130,071,841. The overall financial position of the Trust improved during the 2024 and 2023 fiscal years. The following table provides a summary of net position: Summary of Net Position 2024 versus 2023 2023 versus 2022 Am ount Percent Am ount Percent 2024 2023 2022 Change Change Change Change Assets Current and other assets $ 85,459,020 $ 70,755,926 $ 82,323,742 $ 14,703,094 20.8% $ (11,567,816) -14.1% Capital assets 133,577,077 129,157,514 116,120,140 4,419,563 3.4% 13,037,374 11.2% Total assets 219,036,097 199,913,440 198,443,882 19,122,657 9.6% 1,469,558 0.7% Deferred Outflow s of Resources 5,705,922 7,254,812 5,468,426 (1,548,890) -21.3% 1,786,386 32.7% Total assets and deferred outflow s of resources $ 224,742,019 $ 207,168,252 $ 203,912,308 $ 17,573,767 8.5% $ 3,255,944 1.6% Liabilities Current liabilities $ 5,598,886 $ 4,974,046 $ 4,640,671 $ 624,840 12.6% $ 333,375 7.2% Noncurrent liabilities 42,479,704 44,280,674 47,637,350 (1,800,970) -4.1% (3,356,676) -7.0% Total liabilities 48,078,590 49,254,720 52,278,021 (1,176,130) -2.4% (3,023,301) -5.8% Deferred Inflow s of Resources 35,309,785 27,841,691 31,656,013 7,468,094 26.8% (3,814,322) -12.0% Total liabilities and deferred inflow s of resources $ 83,388,375 $ 77,096,411 $ 83,934,034 $ 6,291,964 8.2% $ (6,837,623) -8.1% Net Position Net investment in capital assets $ 103,625,752 $ 98,282,793 $ 82,148,726 $ 5,342,959 5.4% $ 16,134,067 19.6% Restricted for debt service 81,212 53,049 - 28,163 53.1% 53,049 100.0% Restricted for health claims 181,930 281,906 113,636 (99,976) -35.5% 168,270 148.1% Unrestricted 37,464,750 31,454,093 37,715,912 6,010,657 19.1% (6,261,819) -16.6% Total net position $ 141,353,644 $ 130,071,841 $ 119,978,274 $ 11,281,803 8.7% $ 10,093,567 8.4% The increase in current and other assets is due to a new service concessionaire agreement and an increase in the related accounts receivable. The increase in capital assets is due to an increase in construction in progress related to Shore to Sea Exhibit, educational building remodel, and Africa expansion projects. The increase in current liabilities is due to an increase in accounts payable from construction invoices received at year end and the current portion of the bonds payable. The decrease in long-term liabilities is primarily due to payments on outstanding bonds. Page 27 of 72 5 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma MANAGEMENT’S DISCUSSION AND ANALYSIS Years Ended June 30, 2024 and 2023 Summary of Changes in Net Position During 2024, operating revenues increased 21.6% primarily due to an increase in zoo activity revenue. Operating expenses increased 16.6% due to an increase in personnel services expenses and materials and supplies expenses. Investment income increased 62% due to interest rate increases across the board. In fiscal year 1991, voters passed a permanent 1/8 cent sales tax increase dedicated to the Trust. In accordance with state statutes, the state collects the monies and remits them to the City. Monies are paid by the City to the Trust on a monthly basis. During 2024, donations from Oklahoma Zoological Society, Inc. increased by 110.8% due to the capital campaign of the new Expedition Africa exhibit. 2024 versus 2023 2023 versus 2022 Am ount Percent Am ount Percent 2024 2023 2022 Change Change Change Change Operating Revenues $ 17,162,311 $ 14,115,576 $ 13,043,002 $ 3,046,735 21.6% $ 1,072,574 8.2% Nonoperating Revenues Sales tax payments from the City 18,126,565 18,098,610 16,909,008 27,955 0.2% 1,189,602 7.0% Interest revenue - leases 633,673 641,191 646,763 (7,518) -1.2% (5,572) -0.9% Investment income 2,427,166 1,498,456 50,991 928,710 62.0% 1,447,465 2838.7% Grants - 59,928 5,755,135 (59,928) -100.0% (5,695,207) -99.0% Donations 2,297,203 1,089,504 3,319,813 1,207,699 110.8% (2,230,309) -67.2% Total revenue 40,646,918 35,503,265 39,724,712 5,143,653 14.5% (4,221,447) -10.6% Operating Expenses 28,335,751 24,307,165 21,025,554 4,028,586 16.6% 3,281,611 15.6% Nonoperating Expenses Interest expense 1,029,364 1,102,533 1,193,342 (73,169) -6.6% (90,809) -7.6% Total expenses 29,365,115 25,409,698 22,218,896 3,955,417 15.6% 3,190,802 14.4% Change in Net Position 11,281,803 10,093,567 17,505,816 1,188,236 11.8% (7,412,249) -42.3% Net Position, Beginning of Year 130,071,841 119,978,274 102,472,458 10,093,567 8.4% 17,505,816 17.1% Net Position, End of Year $ 141,353,644 $ 130,071,841 $ 119,978,274 $ 11,281,803 8.7% $ 10,093,567 8.4% Capital Assets and Debt Administration The 2017 updated Master Plan envisions spending approximately $71.8M over a 10-year period. Individual elements of the plan and their estimated costs are approximately: the Galapagos Tortoise - $534,000, condor/Raptor Aviary - $1,408,000, Amphibian Plaza - $768,000, Cheetah/Wild Dog Exhibit - $2,162,000, Office/Education - $8,000,000, Africa Savanna Exhibit - $32,000,000, Shore to Sea Exhibit - $27,000,000. Page 28 of 72 6 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma MANAGEMENT’S DISCUSSION AND ANALYSIS Years Ended June 30, 2024 and 2023 Capital Assets, Net of Accumulated Depreciation Capital Assets The Trust’s investment in capital assets, net of accumulated depreciation, as of June 30, 2024, was $133,577,077. The increase of $4,419,563 or 3.4% from June 30, 2023, as compared to $13,037,374 or 11.2% from June 30, 2022, is primarily because of the increase in construction in progress due to the continued Expedition Africa Exhibit and Shore to Sea Exhibit construction. 2024 versus 2023 2023 versus 2022 Am ount Percent Am ount Percent 2024 2023 2022 Change Change Change Change Nondepreciable Assets Construction in progress $ 43,882,665 $ 36,418,137 $ 26,686,931 $ 7,464,528 20.5% $ 9,731,206 36.5% Depreciable Assets Buildings and grounds 71,175,892 73,072,553 68,274,803 (1,896,661) -2.6% 4,797,750 7.0% Improvements 15,998,996 17,154,682 18,335,434 (1,155,686) -6.7% (1,180,752) -6.4% Right-of-use assets 1,768,430 1,816,226 1,864,614 (47,796) -2.6% (48,388) -2.6% Equipment and other 751,094 695,916 958,358 55,178 7.9% (262,442) -27.4% Total $ 133,577,077 $ 129,157,514 $ 116,120,140 $ 4,419,563 3.4% $ 13,037,374 11.2% Long-Term Debt At the end of fiscal years 2024 and 2023, the Trust had total debt outstanding, net of discount and premium, of $29,147,550 and $30,976,486, respectively. This debt is collateralized by the sales tax revenues received from the City. See Note 4 to the accompanying financial statements for more information regarding debt. Outstanding Bonds Payable 2024 versus 2023 2023 versus 2022 Am ount Percent Am ount Percent 2024 2023 2022 Change Change Change Change Bond Payable $ 29,147,550 $ 30,976,486 $ 32,696,974 $ (1,828,936) -5.9% $ (1,720,488) -5.3% Economic Factors Economic factors significantly affecting the City’s economic strength is its central location at the intersections of interstate highways I-35 and I-40; a regional transportation hub in Will Rogers World Airport; ample water supplies; and numerous performing arts, entertainment and recreational facilities. The source for economic data is the Oklahoma State University Center for Applied Economic Research. Contacting the Trust’s Financial Management This financial report is designed to provide a general overview of the Trust’s finances, comply with finance-related laws and regulations and demonstrate commitment to public accountability. If you have questions about this report or would like to request additional information, please contact the Trust’s Finance Department, 2000 Remington Place, Oklahoma City, Oklahoma 73111. Page 29 of 72 7 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma STATEMENTS OF NET POSITION June 30, 2024 and 2023 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 2024 2023 Current Assets Cash $ 25,309,061 $ 24,159,287 Accounts receivable, net of allowance 3,749,720 886,306 Lease receivables 209,093 201,327 Inventories 147,181 129,322 Sales tax receivable from the City 2,378,063 2,494,394 Prepaid expenses 3,644 -- Cash, restricted 248,930 348,906 Total current assets 32,045,692 28,219,542 Noncurrent Assets Investments 28,889,997 26,297,784 Accounts receivable, noncurrent 8,493,824 -- Long-term lease receivables 16,029,507 16,238,600 Capital assets Construction in progress 43,882,665 36,418,137 Other capital assets, net of accumulated depreciation 89,694,412 92,739,377 Total noncurrent assets 186,990,405 171,693,898 Total assets 219,036,097 199,913,440 Deferred Outflows of Resources OPEB liability 2,017,096 2,693,510 Pension plan 3,688,826 4,561,302 Total deferred outflows of resources 5,705,922 7,254,812 $ 224,742,019 $ 207,168,252 Page 30 of 72 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION 2024 2023 Current Liabilities Accounts payable $ 2,488,012 $ 2,845,948 Lease liability 25,322 24,347 Wages and benefits payable 1,074,361 276,562 Compensated absences 149,979 59,140 Bonds payable, current 1,780,000 1,715,000 Bond interest payable 81,212 53,049 Total current liabilities 5,598,886 4,974,046 Noncurrent Liabilities Bonds payable, net 27,367,550 29,261,486 Long-term lease liability 1,842,389 1,867,711 Net pension liability 3,245,935 2,561,421 Net OPEB liability 10,023,830 10,590,056 Total noncurrent liabilities 42,479,704 44,280,674 Total liabilities 48,078,590 49,254,720 Deferred Inflows of Resources OPEB 7,466,306 8,576,967 Pension plan 386,438 647,088 Service concession arrangement 10,266,052 957,564 Leases 17,190,989 17,660,072 Total deferred inflows of resources 35,309,785 27,841,691 Net Position Net investment in capital assets 103,625,752 98,282,793 Restricted for debt service 81,212 53,049 Restricted for health claims 181,930 281,906 Unrestricted 37,464,750 31,454,093 Total net position 141,353,644 130,071,841 $ 224,742,019 $ 207,168,252 The accompanying notes are an integral part of these financial statements. Page 31 of 72 8 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION Years Ended June 30, 2024 and 2023 2024 2023 Operating Revenues Zoo admissions $ 5,158,000 $ 4,200,494 Concessions 3,092,665 1,923,467 Zoo activities 7,134,024 6,331,651 Rent 1,777,622 1,659,964 Total operating revenues 17,162,311 14,115,576 Operating Expenses Personnel services 14,952,304 11,358,365 Maintenance, operations and contractual services 6,442,706 6,715,540 Materials and supplies 2,631,379 2,160,963 Depreciation 4,195,178 4,033,214 Other 114,184 39,083 Total operating expenses 28,335,751 24,307,165 Operating loss (11,173,440) (10,191,589) Nonoperating Revenues (Expenses) Grants -- 59,928 Donations 2,297,203 1,089,504 Investment income 2,427,166 1,498,456 Interest revenue - leases 633,673 641,191 Interest expense (1,029,364) (1,102,533) Sales tax payments from the City 18,126,565 18,098,610 Total nonoperating revenues 22,455,243 20,285,156 Change in net position 11,281,803 10,093,567 Net Position, Beginning of Year 130,071,841 119,978,274 Net Position, End of Year $ 141,353,644 $ 130,071,841 The accompanying notes are an integral part of these financial statements. Page 32 of 72 9 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma STATEMENTS OF CASH FLOWS Years Ended June 30, 2024 and 2023 2024 2023 Operating Activities Cash received from customers $ 5,537,317 $ 14,930,977 Cash payments to suppliers for goods and services (10,371,483) (8,689,856) Cash payments to employees for services (4,936,985) (13,286,669) Net cash flow from operating activities (9,771,151) (7,045,548) Noncapital Financing Activities Sales tax payments from the City 18,242,896 18,010,676 Grants received -- 59,928 Donations received 162,066 432,356 Net cash flow from noncapital financing activities 18,404,962 18,502,960 Capital and Related Financing Activities Acquisition and construction of capital assets (7,333,292) (17,042,516) Amortization of bond premium, net of discount (113,936) (70,488) Principal paid on debt (1,715,000) (1,650,000) Payments on leases (24,347) (23,406) Donations received 2,135,137 657,148 Interest revenue - leases 633,673 641,191 Interest paid on debt (1,001,201) (1,105,785) Net cash flow from capital and related financing activities (7,418,966) (18,593,856) Investing Activities Purchase of investments (2,592,213) (814,346) Investment income 2,427,166 1,498,456 Net cash flow from investing activities (165,047) 684,110 Change in cash 1,049,798 (6,452,334) Cash, Beginning of Year 24,508,193 30,960,527 Cash, End of Year $ 25,557,991 $ 24,508,193 Reconciliation to Cash Unrestricted $ 25,309,061 $ 24,159,287 Restricted 248,930 348,906 Total cash $ 25,557,991 $ 24,508,193 Page 33 of 72 2024 2023 Reconciliation of Operating Loss to Net Cash Flow From Operating Activities Operating loss $ (11,173,440) $ (10,191,589) Adjustments to reconcile operating loss to net cash flow from operating activities Depreciation 4,195,178 4,033,214 Changes in operating assets and liabilities Accounts receivable (11,357,238) 1,141,641 Leases receivable 201,327 193,810 Inventories (17,859) 24,366 Prepaid expenses (3,644) -- Accounts payable (1,161,711) 223,441 Wages and benefits payable 797,799 61,957 Compensated absences 90,839 (116,509) Unearned revenue -- (22,077) Net pension liability/asset 684,514 7,219,366 Deferred outflows/inflows - pension 611,826 (6,999,284) Deferred outflows/inflows - OPEB (434,247) 2,613,805 Deferred inflows - service concession arrangement 8,830,814 (621,486) Deferred inflows - leases (469,083) (520,050) Net OPEB liability (566,226) (4,086,153) Net cash used in operating activities $ (9,771,151) $ (7,045,548) Noncash Capital and Financing Activities Capital asset additions from service concession arrangements $ 477,674 $ -- Capital asset addition included in accounts payable $ 803,775 $ 101,765 The accompanying notes are an integral part of these financial statements. Page 34 of 72 10 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Reporting Entity The Oklahoma City Zoological Trust (Trust) was created by the City of Oklahoma City, Oklahoma (City) on January 7, 1975, under the laws of the State of Oklahoma (State) for the purpose of developing, maintaining, operating and managing the Oklahoma City Zoo (Zoo). Trustees include the Mayor, the City Manager, one member of the City Council and six other persons who are recommended by the Oklahoma Zoological Society, Inc. (Society), selected by the Mayor and approved by the City Council. The City Council also approves the Trust’s sales tax budget. If the Trust terminates, the Trust agreement provides that the assets shall revert to the City. While the Trust is a legally separate entity whose beneficiary is the City, it is a blended component unit of the City reported as a proprietary fund, and the accompanying financial statements are blended in the City’s annual comprehensive financial report, a copy of which may be obtained from the City’s Accounting Services Division. The financial reporting entity, as defined by the Governmental Accounting Standards Board (GASB), consists of the primary government, organizations for which the primary government is financially accountable and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion could cause the financial statements to be misleading or incomplete. The Society is an Oklahoma not-for-profit organization that was created in 1954 to support and promote the Zoo. The Society does this through membership drives, annual fundraising, capital campaigns, marketing special events and public relations. The Society is not included in the accompanying financial statements of the Trust as it does not meet the definition of a component unit. Measurement Focus and Basis of Accounting As a proprietary fund, the Trust is accounted for using the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized when earned, and expenses are recognized when the related liability is incurred. The Trust is organized into accounts in order to achieve sound and efficient financial administration and reporting. Each account is considered a separate accounting entity, while all accounts are combined in the basic financial statements. The accounts include the following:  The operating account is used to account for the Trust’s operations and all financial resources except those accounted for in other accounts.  The designated account, established by the Board of Trustees, is used to account for the resources received in the settlement of the estate of a donor. The donor places no restrictions on the use of the funds. Page 35 of 72 11 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)  The sales tax account is used to account for that portion of the City’s sales tax, which is earmarked specifically for use by the Trust. This account also includes bond funds, which are used for construction. When both restricted and unrestricted resources are available for use, it is the Trust’s policy to use restricted resources first and then unrestricted resources as needed. Restricted assets and liabilities payable from restricted assets that are current in nature are reported with current assets and liabilities in the accompanying financial statements. Operating and Nonoperating Revenues and Expenses Operating income or loss includes revenues and expenses related to the primary, continuing operations of the Trust. Principal operating revenues are charges to customers for sales or services. Principal operating expenses are the cost of providing goods or services and include administrative expenses and depreciation of capital assets. Other revenues and expenses are classified as nonoperating in the accompanying financial statements. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, deferred inflows of resources, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Investments The Board of Trustees formally adopted the City’s deposit and investment policy for unrestricted accounts in addition to policies specified in the zoo’s sales tax revenue note indentures applicable to the Trust’s sales tax fund as restricted by the note indentures. Cash includes only cash deposits in order to appropriately report investment activity. Investments are reported at fair value and are comprised of funds deposited into trustee banks in accordance with the investment policy specified in the debt agreements for restricted deposits and investments. Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction. There is a fair value hierarchy which requires an entity to maximize the use of observable inputs when measuring fair value. The guidance requires three levels of fair value measurement based on the respective inputs. Page 36 of 72 12 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The following describes three levels of inputs that may be used to measure fair value: Level 1 - Inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date; Level 2 - Inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and Level 3 - Inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability and the reporting entity makes estimates and assumptions related to the pricing of the asset or liability including assumptions regarding risk. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The value of the Trust’s investments in money market funds, mutual funds invested in U.S. Treasury securities and U.S. Treasury Notes are valued using quoted market prices, and therefore are classified as Level 1. Accounts Receivable The Trust records accounts receivable for services provided to citizens, schools or corporate customers. The Trust also records receivables for long-term contracts. As of June 30, 2024 and 2023, management has estimated reserves for uncollectable receivables of $0. Leases Receivable Leases receivable are reported for lease arrangements in which the Trust is providing the right for another entity to use its nonfinancial assets as stated in a contract for a period of time in an exchange or exchange like transaction. Management determines the allowance for uncollectible leases by identifying known leases that will not be collected and by estimating the remaining leases that are likely not to be collected. Currently, management has determined that all leases receivable are collectable. Inventories Inventories consist of animal food and certain operating supplies and are valued at cost on the first-in, first-out (FIFO) method. Sales Tax Receivable from the City During fiscal year 1991, voters passed a sales tax increase earmarked specifically for the purpose of funding certain zoo activities. In accordance with state statutes, the state collects the monies and remits them to the City, who accounts for the receipt of the sales taxes and interest earned on related deposits in a separate limited-purpose fund. The Trust records such amounts as a receivable from the City at the time the City earns the taxes. Page 37 of 72 13 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In accordance with the City ordinance authorizing the tax, the Trust records such activity in the sales tax account. Monies are paid by the State to the City on a monthly basis. The funds are invested in the City’s investment pool and are reported in the City’s comprehensive annual financial report. Funds are transferred from the City upon request from the Trust. Capital Assets and Depreciation Capital assets are stated at actual or estimated historical cost, net of accumulated depreciation. Donated capital assets are stated at estimated fair value at the date of donation. Costs incurred during construction of long-lived assets are recorded as construction in progress and are not depreciated until placed in service. Capital assets consist of only those items acquired since the formation of the Trust whose cost is greater than or equal to $50,000. Depreciation is computed using the straight-line method based on the estimated useful lives of the assets as follows: Buildings and grounds 5 - 50 years Improvements 2 - 20 years Equipment and other 3 - 10 years The cost to acquire zoo animals is expensed at the acquisition date. Maintenance and repairs to capital assets are charged to operations, while renewals and betterments are capitalized. When capital assets are disposed of or sold, the cost and applicable accumulated depreciation are removed from the respective accounts, and the resulting gain or loss is recorded in operations. Compensated Absences Employees are granted paid time off (PTO) benefits in varying amounts depending on tenure with the Trust. These benefits accumulate pro rata by two-week periods and must be taken within the calendar year. Employees can elect to carry over a maximum of 40 hours into the next calendar year. PTO benefits are accrued as earned. Sick leave benefits accrue to employees at the rate of five hours per two-week pay period to a maximum accrual of 520 hours. Employees are not entitled to payment of their sick leave balance at termination; therefore, no liability related to sick leave is recorded in the accompanying basic financial statements. Deferred Outflows of Resources/Deferred Inflows of Resources The separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Page 38 of 72 14 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Trust has deferred outflows for pension activity and OPEB activity that qualify for reporting in this category. The Trust has deferred inflows for pension activity, service concession arrangements, lease revenue and OPEB activity that qualify for reporting in this category. See Note 5 for more information on the pension deferred resources, Note 10 for more information on the service concession arrangement deferred resources, Note 6 for more information on OPEB deferred resources, and Note 7 for more information on the lease revenue deferred resources. Defined Benefit Pension Plan The Trust’s full-time employees are eligible to participate in the City’s Employee Retirement System (ERS). For purposes of measuring the net pension asset, deferred outflows of resources and deferred inflows of resources related to pensions and pension expense, information about the fiduciary net position of the ERS and additions to/deductions from the ERS’s fiduciary net position have been determined on the same basis as they are reported by the ERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Postemployment Benefits Other Than Pensions (OPEB) For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City of Oklahoma City Post-Retirement Medical Plan (OPEBT) and additions to/deductions from OPEBT’s fiduciary net position have been determined on the same basis as they are reported by OPEBT. For this purpose, OPEBT recognizes benefit payments when due and payable in accordance with the benefit terms. Net Position Net position of the Trust is classified in three components. The net investment in capital assets consists of capital assets reduced by the outstanding balances of borrowings that are attributable to the acquisition, construction or improvement of those assets. Restricted expendable net position is non-capital assets, the use of which is limited by external constraints imposed by creditors (such as through debt covenants), grantor or donors, including amounts deposited with trustees as required by bond indentures, reduced by the outstanding balances of any related borrowings. Unrestricted net position is remaining assets less remaining liabilities that do not meet the definition of net investment in capital assets or restricted expendable net position. Revenue Recognition Operating revenues are recorded when goods and services are provided. Sales tax revenues are recorded when earned. Donation revenues, predominantly from the Society, are recorded when known and when receipt of revenue is reasonably assured. Page 39 of 72 15 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Contributions Contributions of capital assets received from other entities, including those from other City funds, grants and assistance received from other governmental units for the acquisition of capital assets are recorded as capital contributions. The contributions are valued at acquisition cost. Discounts and Premiums Discounts and premiums are capitalized and amortized over the term of the instrument using a method which approximates the effective interest method. Income Tax The Trust is exempt from federal income tax under Section 115 of the Internal Revenue Code. New Accounting Pronouncements Not Yet Adopted GASB Statement No. 101, Compensated Absences, better meets the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. This is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The provisions of this statement are effective for financial statements for the Trust’s fiscal year ending June 30, 2025. GASB Statement No. 102, Certain Risk Disclosures, will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make an entity vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to an entity's financial condition. The provisions of this statement are effective for financial statements for the Trust's fiscal year ending June 30, 2025. GASB Statement No. 103, Financial Reporting Model Improvements, improves five key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing an entity’s accountability. The provisions of this statement are effective for financial statements for the Trust’s fiscal year ending June 30, 2026. GASB Statement No. 104, Disclosure of Certain Capital Assets, improves financial reporting by providing users of financial statements with essential information about certain types of capital assets in order to make informed decisions and assess accountability. Additionally, the disclosure requirements will improve consistency and comparability between entities. This statement requires certain capital assets to be disclosed separately in the capital assets note disclosures including lease assets, intangible right-to-use assets recognized in accordance with Public-Private and Public-Public Partnerships and Availability Payment Arrangements and subscription assets. In addition, intangible assets other than those three types must be disclosed Page 40 of 72 16 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) separately by major class. This statement also requires additional disclosures on capital assets held for sale. The provisions of this statement are effective for financial statements for the Trust’s fiscal year ending June 30, 2026. Subsequent Events These financial statements considered subsequent events through August 1, 2025, the date the financial statements were available to be issued. 2. DEPOSITS AND INVESTMENTS Deposits Custodial credit risk for deposits is the risk that in the event of a bank failure the Trust’s deposits may not be returned or the Trust will not be able to recover collateral securities in the possession of an outside party. The City/Trust policy requires deposits to be 110% secured by collateral valued at market or par, whichever is lower, less the amount of the Federal Deposit Insurance Corporation (FDIC) insurance. Deposited funds may be invested in certificates of deposit in institutions with an established record of fiscal health and service, as determined by a rating of C- or above by independent rating agencies. Collateral agreements must be approved prior to deposit of funds as provided by law. The City Council approves and designates a list of authorized depository institutions based on evaluation of solicited responses and certifications provided by financial institutions and recommendations of an evaluation committee and/or the City Treasurer. The Trust’s deposits were $25,557,991 and $24,508,193, as of June 30, 2024 and 2023, respectively. All of the Trust’s deposits held by a counterparty were fully insured or collateralized. Investments As of June 30, 2024 and 2023, the Trust had the following investments and maturities: Weighted- Average Fair Value Days to Types of Investments Amount Cost Ratings (1) Maturity (2) Money market funds 2024 $ 28,889,997 $ 28,889,997 AAAm/Aaa-mf 32 2023 $ 26,297,784 $ 26,297,784 AAAm/Aaa-mf 8 (1) Ratings are provided where applicable to indicate associated credit risk. (2) Interest rate risk is estimated using weighted-average days to maturity. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Investing is performed in accordance with investment policies adopted by the City Page 41 of 72 17 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 2. DEPOSITS AND INVESTMENTS (CONTINUED) Council complying with state statutes and the City charter. City/Trust funds may be invested in: 1) direct obligations of the United States government, its agencies or instrumentalities to the payment of which the full faith and credit of the government of the United States is pledged or obligations to the payment of which the full faith and credit of the State of Oklahoma is pledged; 2) Federal agency or U.S. government-sponsored enterprise obligations, participations, or other instruments, including those insured by or fully guaranteed as principal and interest by federal agencies or U.S. government-sponsored enterprises; 3) collateralized or insured certificates of deposit and other evidence of deposits at banks, savings banks, savings and loan associations and credit unions located in the State of Oklahoma when secured by appropriate collateral; 4) repurchase agreements that have underlying collateral of direct obligations or obligations of the United States government, its agencies and instrumentalities; 5) money market funds regulated by the Securities and Exchange Commission and which investments consist of the authorized investments (domestic securities) with restrictions as specified in state law; 6) savings accounts or certificates of savings and loan associations, banks, and credit unions, to the extent the accounts are fully insured by the Federal Deposit Insurance; 7) State and Local Government Series securities (SLGS); 8) City direct debt obligations for which an ad valorem tax may be levied or bonds issued by a public trust of which the City is a beneficiary and judgements rendered against the City by a court of record provided it is a prudent investment; and 9) prime commercial paper with a maturity date less than 180 days which represents less than 10% of the outstanding paper of an issuing corporation. Under the policy, the City/Trust may not invest in reverse repurchase agreements and derivative instruments which are created from, whose value depends on or is derived from, the value of one or more underlying assets or indexes of assets values and/or has no call options prior to the City/Trust’s desired maturity or is a variable rate instrument. Collateralization is further restricted to permitted investments shown previously as items 1 and 2. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Investments held for longer periods are subject to increased risk of adverse interest rate changes. The policy provides that, to the extent practicable, investments are matched with anticipated cash flows. Investments are diversified to minimize the risk of loss resulting from overconcentration of assets in a specific maturity period, a single issuer or an individual class of securities. Unless matched to a specific cash flow, investments are not made in securities matching more than five years from the date of purchase. Certificates of deposit may not be purchased with maturities greater than 365 days from date of purchase. Concentration of credit risk is the risk of loss attributed to the magnitude of the investment in a single issuer. Cumulatively, portfolios may not be invested in any given financial institution in excess of 5% of such institution’s total assets. Additionally, no more than 5% of the total portfolio may be placed with any single financial institution with the exception of repurchase agreements. U.S. government securities, SLGS, repurchase agreements, money market funds, and city judgments are excluded from these restrictions. Page 42 of 72 18 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 2. DEPOSITS AND INVESTMENTS (CONTINUED) Maturity Limitations Investment-Type Limitations Percentage of Percentage of Total Principal Total Invested Principal Maximum % (1) Maximum % (3) 0 - 1 year 100% Repurchase agreements 100% 1 - 3 years 90% U.S. Treasury securities (2) 100% 3 - 5 years 90% Certificates of deposit 50% Money market funds 100% Savings accounts 100% U.S. noncancellable agencies securities 100% U.S. callable agencies securities 20% Prime commercial paper 7.5% Direct debt obligations and judgements 5% Except in instances of specifically matched cash flows, the portfolio is structured as follows: 1) For maturities limited to 0-1 year, the minimum percentages allowed under the policy are 5- 25%. 2) Includes SLGS. 3) For investments listed, there is no minimum percentage specified under the policy. The City/Trust policy also allows surplus cash, certificates of deposit and repurchase agreements to be collateralized with securities with longer maturities if such maturity does not exceed 10 years. Custodial credit risk is the risk that in the event of the failure of the counterparty the Trust will not be able to recover the value of its investments or collateral securities in the possession of an outside party. The City/Trust policy provides that investment collateral is held by a third-party custodian with whom the City has a current custodial agreement in the City’s name or be held in the name of both parties by the Federal Reserve Bank servicing Oklahoma. City policy is more restrictive than the requirements of Oklahoma law found in Title 62 of the Oklahoma Statutes as follows: Statutes allow investment in any agencies or instrumentalities of the U.S. government; negotiable certificates of deposit are permitted investments without collateralization restrictions (limited to 10% of investable funds and not more than half of the 10% may be invested in any one financial institution); prime banker’s acceptances are acceptable investment instruments (limited to 270 days maturity or less and may comprise no more than 10% of investable funds with no more than half of the 10% in any one commercial bank); prime commercial paper is also permitted (restricted to 180 days maturity or less and may not comprise more than 10% of the outstanding paper of an issuing corporation with no more than 7.5% of investable funds permitted to be in commercial paper); purchase of municipal direct debt is not limited to Oklahoma City direct debt and may include Oklahoma counties and school districts. The Trust’s investment policy is more restrictive than the requirements of Oklahoma law found in Title 60 of the Oklahoma Statutes and the standards of the Uniform Prudent Management of Institutional Funds Act of 1972. These statutes restrict public trust investing to the Prudent Investor Rule defined by Title 60 of the Oklahoma Statutes to consider the purposes, terms, Page 43 of 72 19 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 2. DEPOSITS AND INVESTMENTS (CONTINUED) distribution requirements and other circumstances of the Trust and to exercise reasonable care, skill and caution. Investment decisions must be evaluated not in isolation, but in the context of the Trust’s portfolio as a whole and as a part of the overall investment strategy having risk and return objective reasonably suited to the Trust. Trust investments were restricted for the following purposes at June 30, 2024 and 2023: 2024 2023 Restricted cash - health claims $ 248,930 $ 348,906 Restricted investments - construction account 28,889,997 26,297,784 $ 29,138,927 $ 26,646,690 Summary of Fair Values The carrying values of deposits and investments shown above are included in the accompanying statements of net position as follows (fair value leveling is specified in Footnote 1): 2024 2023 Fair value Cash $ 25,557,991 $ 24,508,193 Investments 28,889,997 26,297,784 $ 54,447,988 $ 50,805,977 2024 2023 Included in the following balances sheet captions Cash $ 25,309,061 $ 24,159,287 Cash, restricted 248,930 348,906 Noncurrent restricted investments 28,889,997 26,297,784 $ 54,447,988 $ 50,805,977 Page 44 of 72 20 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 3. CAPITAL ASSETS Capital assets activity for the periods ended June 30, 2024 and 2023 was: Balance, Balance, July 1, 2023 Additions Deletions Transfers June 30, 2024 Depreciable capital assets Buildings and grounds $ 116,242,300 $ 543,800 $ -- $ -- $ 116,786,100 Improvements 30,599,067 337,990 -- -- 30,937,057 Right-of-use assets 1,959,612 -- -- -- 1,959,612 Equipment and other 7,431,892 268,423 -- -- 7,700,315 Total depreciable capital assets 156,232,871 1,150,213 -- -- 157,383,084 Less accumulated depreciation Buildings and grounds 43,169,747 2,440,461 -- -- 45,610,208 Improvements 13,444,385 1,493,676 -- -- 14,938,061 Right-of-use assets 143,386 47,796 -- -- 191,182 Equipment and other 6,735,976 213,245 -- -- 6,949,221 Total accumulated depreciation 63,493,494 4,195,178 -- -- 67,688,672 Depreciable capital assets, net of accumulated depreciation $ 92,739,377 $ (3,044,965) $ -- $ -- $ 89,694,412 Nondepreciable capital assets Construction in progress $ 36,418,137 $ 7,464,528 $ -- $ -- $ 43,882,665 Balance, Balance, July 1, 2022 Additions Deletions Transfers June 30, 2023 Depreciable capital assets Buildings and grounds $ 109,123,639 $ 3,550,332 $ -- $ 3,568,329 $ 116,242,300 Improvements 30,378,346 294,593 73,872 -- 30,599,067 Right-of-use assets 1,959,612 -- -- -- 1,959,612 Equipment and other 7,431,892 -- -- -- 7,431,892 Total depreciable capital assets 148,893,489 3,844,925 73,872 3,568,329 156,232,871 Less accumulated depreciation Buildings and grounds 40,848,836 2,320,911 -- -- 43,169,747 Improvements 12,042,912 1,401,473 -- -- 13,444,385 Right-of-use assets 94,998 48,388 -- -- 143,386 Equipment and other 6,473,534 262,442 -- -- 6,735,976 Total accumulated depreciation 59,460,280 4,033,214 -- -- 63,493,494 Depreciable capital assets, net of accumulated depreciation $ 89,433,209 $ (188,289) $ 73,872 $ 3,568,329 $ 92,739,377 Nondepreciable capital assets Construction in progress $ 26,686,931 $ 13,299,535 $ -- $ (3,568,329) $ 36,418,137 Page 45 of 72 21 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 4. LONG-TERM OBLIGATIONS The following is a summary of long-term obligation transactions, excluding unamortized premiums or discounts, for the years ended June 30, 2024 and 2023: Beginning Ending Current Description and Purpose Balance Additions Deductions Balance Portion 2024 Revenue Bonds Series 2021 - direct placement, net of $4,565,024 premium $ 23,181,024 $ -- $ 1,220,461 $ 21,960,563 $ 1,150,000 Revenue Bonds Series 2019 - direct placement, net of $18,013 discount 7,795,462 -- 608,475 7,186,987 630,000 Lease liability 1,892,058 -- 24,347 1,867,711 25,322 Net pension liability 2,561,421 684,514 -- 3,245,935 -- Net OPEB obligation 10,590,056 -- 566,226 10,023,830 -- $ 46,020,021 $ 684,514 $ 2,419,509 $ 44,285,026 $ 1,805,322 Beginning Ending Current Description and Purpose Balance Additions Deductions Balance Portion 2023 Revenue Bonds Series 2021 - direct placement, net of $4,681,024 premium $ 24,312,987 $ -- $ 1,131,963 $ 23,181,024 $ 1,105,000 Revenue Bonds Series 2019 - direct placement, net of $19,538 discount 8,383,987 -- 588,525 7,795,462 610,000 Lease liability 1,915,464 -- 23,406 1,892,058 24,347 Unearned revenue 22,077 -- 22,077 -- -- Net pension liability -- 2,561,421 -- 2,561,421 -- Net OPEB obligation 14,676,209 -- 4,086,153 10,590,056 -- $ 49,310,724 $ 2,561,421 $ 5,852,124 $ 46,020,021 $ 1,739,347 Revenue Bonds On March 28, 2019, the Trust issued $10,030,000 of direct placement sales tax revenue bank notes, which mature through 2034 (Series 2019 Note), for the purpose of financing the costs of facilities, improvements and equipment for the Oklahoma City Zoo and Botanical Garden. The bonds are collateralized by the sales tax revenues received from the City pursuant to the Bond Indenture. On August 11, 2021, the Trust issued $20,500,000 of direct placement sales tax revenue bonds, which mature through 2036 (Series 2021 Bonds), for the purpose of financing the costs of facilities, improvements and equipment for the Oklahoma City Zoo and Botanical Garden. The bonds are collateralized by the sales tax revenues received from the City pursuant to the Bond Indenture. Page 46 of 72 22 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 4. LONG-TERM OBLIGATIONS (CONTINUED) Proceeds from tax-exempt bonds issued after September 1, 1996, are subject to the 1996 Tax Reform Act. The Trust complies with Internal Revenue Service regulations in order to maintain tax-exempt status on the bonds. The Trust had no arbitrage rebate liability at June 30, 2024 or 2023. Annual debt service requirements to maturity for bonds payable are as follows: Interest Rate Fiscal Year Percentage Principal Interest Total 2025 3.02 - 5.00% $ 1,780,000 $ 974,541 $ 2,754,541 2026 3.02 - 5.00% 1,840,000 909,515 2,749,515 2027 3.02 - 5.00% 1,905,000 842,236 2,747,236 2028 3.02 - 5.00% 1,975,000 772,553 2,747,553 2029 3.02 - 5.00% 2,050,000 700,266 2,750,266 Thereafter 3.02 - 5.00% 15,050,000 2,509,517 17,559,517 $ 24,600,000 $ 6,708,628 $ 31,308,628 Lease Liabilities Amount of Implied Amount Outstanding Date of Amended Original Interest June 30, June 30, Description and Purpose Lease Agreement Agreement Lease Term Rates 2024 2023 Oklahoma Zoological Trust Remington Park Land 9/21/2005 $ 3,300,000 75 years 4.01% $ 1,451,116 $ 1,470,033 City of Nichol Hills Remington Park Land 9/21/2005 945,000 75 years 4.01% 416,595 422,025 $ 4,245,000 $ 1,867,711 $ 1,892,058 The principal and interest requirements to maturity as of June 30, 2024, are as follows: Total to Fiscal Year be Paid Principal Interest 2025 $ 96,301 $ 25,322 $ 70,979 2026 96,301 26,337 69,964 2027 96,301 27,392 68,909 2028 96,301 28,490 67,811 2029 96,301 29,631 66,670 Thereafter 2,877,398 1,730,539 1,146,859 $ 3,358,903 $ 1,867,711 $ 1,491,192 Page 47 of 72 23 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 5. EMPLOYEE RETIREMENT PLAN Plan Description All full-time employees of the Trust are eligible to participate in the City’s Employee Retirement System (ERS), a single-employer defined benefit public retirement system. The executive director and division directors can elect to participate in a 401(a) plan instead of the City’s ERS. The ERS issues a separate stand-alone report that includes the financial statements and required supplementary information. The report can be obtained from the City’s Accounting Services Division at 100 N. Walker, Oklahoma City, Oklahoma 73102. The Trust’s covered payroll approximated $8,930,000 and $8,023,000 for the years ended June 30, 2024 and 2023, respectively. The total payroll for all trust employees approximated $11,353,104 and $9,843,200 for the years ended June 30, 2024 and 2023, respectively. Eligibility, Contribution Methods and Benefit Provisions Year established and governing authority 1958; City Council ordinance Determination of contribution requirements Actuarially determined Employer contributions 7.46% of covered payroll Plan member contributions 6.00% of covered payroll Eligible to participate Full-time trust employees Funding of administrative costs Investment earnings Period required vesting Five years Eligibility for distribution 30 years credited service regardless of age or age 60 with 20 years (pre-March 1967 hires); or 25 years credited service regardless of age or age 65 with five years (post-March 1967 hires); or age 55 with five years on a reduced basis or five years of service, with benefits to begin at age 65 (60 with 10 years if pre-March 1967 hire) Postretirement benefit increases Cost of living adjustments, compounded annually, increases must be approved by the ERS Board Provisions for disability benefits Yes Provisions for death benefits Yes Employer contribution rates are determined by the City Council based on an actuarially determined rate recommended by an independent actuary. Contributions to the ERS from the Trust were $348,820 and $527,266 for the years ended June 30, 2024 and 2023. Page 48 of 72 24 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 5. EMPLOYEE RETIREMENT PLAN (CONTINUED) Pension Asset or Liability, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Net pension assets or liabilities are reported when the ERS’s fiduciary net position exceeds the employer’s total pension liability, or the employer’s proportionate share of the ERS’s fiduciary net position exceeds the employer’s proportionate share of the total liability for cost-sharing, multiple employer plans. Net pension asset (liability) information allocated to the Trust for the years ended June 30, 2024 and 2023 was as follows: June 30, 2024 June 30, 2023 Net pension asset (liability) $ (3,245,935) $ (2,561,421) Measurement date June 30, 2023 June 30, 2022 Valuation date December 31, 2022 December 31, 2021 Proportion 4.36% 4.92% The net pension amount is measured by the ERS each June 30, and the total pension asset/liability used to calculate the net pension amount is determined by an actuarial valuation as of each December 31. Updated procedures are used to roll forward the total pension liability to each June 30. The Trust’s proportion of the collective ERS net pension amount is based on the ratio of the Trust’s contributions to ERS relative to the total employer contributions from all entities participating in the ERS. For the years ended June 30, 2024 and 2023, the Trust recognized pension (income) expense of $1,296,340 and $220,082, respectively. At June 30, 2024 and 2023, the Trust reported deferred outflows of resources and deferred inflows of resources related to the pension plan from the following sources: June 30, 2024 June 30, 2023 Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Differences between expected and actual experience $ 882,040 $ 386,438 $ 380,131 $ 647,088 Changes of assumptions 591,497 -- 1,056,307 -- Net difference between projected and actual earnings on pension plan investments 1,866,469 -- 2,597,598 -- Trust’s contributions made subsequent to the measurement date 348,820 -- 527,266 -- Total $ 3,688,826 $ 386,438 $ 4,561,302 $ 647,088 Page 49 of 72 25 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 5. EMPLOYEE RETIREMENT PLAN (CONTINUED) At June 30, 2024 and 2023, the Trust reported $348,820 and $527,266, respectively, as deferred outflows of resources related to pensions resulting from trust contributions subsequent to the measurement date and prior to year-end that will be recognized as a reduction of the net pension liability at June 30, 2025. Other amounts reported as deferred outflows of resources at June 30, 2024, related to pensions will be recognized in pension expense as follows: 2025 $ 694,065 2026 458,076 2027 1,633,047 2028 60,407 2029 107,973 $ 2,953,568 Actuarial Assumptions The total pension liability in the December 31, 2022 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Investment rate of return 7.00% Discount rate 7.00% Projected salary increases 3.00% to 6.50%, including wage inflation Postretirement benefit increases (maximum) 2.00% Wage inflation 3.00% Mortality MP-2014 Blue Collar mortality tables, with future mortality improvements projects to 2025 using scale MP-2016 The actuarial assumptions used in the December 31, 2022 valuation were based on the results of an actuarial experience study for the period covering January 1, 2014 through December 31, 2018. A report dated January 20, 2020 presented the results of the experience study. Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. These best estimates and the ERS’s target asset allocation are summarized in the following table: Page 50 of 72 26 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 5. EMPLOYEE RETIREMENT PLAN (CONTINUED) Long-Term Expected Real Rate Target of Return Allocation Core bonds 2.58% 3.00% Core plus bonds 2.89% 8.00% Global bonds 2.11% 5.00% Liquid absolute return 3.25% 4.00% U.S. large cap equity 7.17% 18.00% U.S. small cap equity 8.61% 10.00% International developed equity 8.06% 11.00% Emerging market equity 9.33% 6.00% Long / short equity 5.77% 5.00% Private equity 10.55% 15.00% Core real estate 6.54% 10.00% Opportunistic real estate 9.54% 5.00% 100.00% Discount Rate A single discount rate of 7% was used to measure the total pension liability. The single discount rate was based on the expected rate of return on pension plan investments of 7%. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Trust’s Proportionate Share of the Net Pension Asset (Liability) to Changes in the Discount Rate The net pension asset of the Trust has been calculated using a discount rate of 7%. The following presents the net pension asset using a discount rate 1% higher and 1% lower than the current rate. Current 1% Decrease Discount Rate 1% Increase (6%) (7%) (8%) Trust’s net pension asset (liability), June 30, 2024 $ (8,285,275) $ (3,245,935) $ 958,026 Trust’s net pension asset (liability), June 30, 2023 $ (7,960,069) $ (2,561,421) $ 1,941,918 Pension Plan Fiduciary Net Position Detailed information about the pension plan’s fiduciary net position is available in the separately issued ERS financial report. Page 51 of 72 27 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 6. OTHER POST-EMPLOYMENT BENEFITS (OPEB) Plan Description The City provides post-employment health care benefits for retired employees and their dependents through the City of Oklahoma City Post-Retirement Medical Plan (OPEBT), a single- employer defined benefit health care plan. The benefits, coverage levels, employee contributions and employer contributions are governed by the City and can be amended by the City through its personnel manual and union contracts. OPEBT issues a separate report that can be obtained from the City’s Human Resource Department at 420 W. Main, Suite 110, Oklahoma City, Oklahoma 73102. Benefits Provided The City provides postretirement health care benefits to its retirees. OPEBT covers all current retirees who elected postretirement medical coverage and future retired general employees. The City provides subsidized medical benefits either through a fully-insured health plan or through a self-insured Group Indemnity Plan. Benefits include general inpatient and outpatient medical services and prescription drug coverage. General employees are eligible for membership in OPEBT if they retire from the City on or after age 60 with 15 years of service or at any age with 25 years of service if hired before January 1, 2017. General employees that were hired after January 1, 2017 are not eligible to receive premium sharing upon retirement. Coverage for dependents can continue upon the death of the retiree. Spouses of employees who die in active service while eligible for benefits can receive coverage. Contributions The City contributes 50% of the premium as a subsidy toward medical coverage of retirees and their dependents effective January 1, 2021 (previous calendar year was 50%). The retirees and their dependents are responsible for paying the remaining 50% of the premium, effective January 1, 2020 (previous calendar year was 50%). The City also intends to make additional contributions to the irrevocable trust that has been established for the funding of OPEBT’s net OPEB liability. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB The Trust’s net OPEB liability of $10,023,830 and $10,590,056 was measured as of June 30, 2024 and 2023, respectively, and was determined by an actuarial valuation as of that date. The Trust’s proportion of the collective OPEBT net OPEB liability is based on the ratio of the Trust’s total employees relative to the total employees for the City as a whole. For the year ended June 30, 2024 and 2023, the Trust recognized OPEB benefit of $1,000,473 and $1,001,020, respectively. Page 52 of 72 28 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 6. OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED) At June 30, 2024 and 2023, the Trust reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: June 30, 2024 June 30, 2023 Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Net difference between projected and actual earnings on OPEB plan investments $ 87,707 $ -- $ 276,439 $ -- Differences between expected and actual experience 68,454 3,706,204 76,145 4,625,654 Employer contributions 508,595 -- 471,328 -- Changes of assumptions 1,352,340 3,760,102 1,869,598 3,951,313 Total $2,017,096 $7,466,306 $2,693,510 $8,576,967 The $508,595 reported as deferred outflows of resources related to OPEB resulting from Trust contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Deferred Outflows Year ended (Inflows) of June 30: Resources 2025 $ (1,866,261) 2026 (1,801,168) 2027 (1,664,489) 2028 (487,699) 2029 (138,208) $ (5,957,825) Page 53 of 72 29 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 6. OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED) Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the City and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the City and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets consistent with the long-term perspective of the calculations. Measurement date June 30, 2023 Actuarial cost method Entry Age Normal Amortization method Level percentage of payroll Amortization period 30 years, closed Actuarial asset valuation method Four-year smoothed market Actuarial assumptions: Investment rate of return 7.50% Discount Rate 5.38% Inflation 3.00% Projected salary increases 3.00% Initial health care trend rates 7.50% (6.50% for Medicare age) Ultimate health care trend rates 4.50% Mortality table RPH-2014 Blue Collar Headcount-weighted Mortality Table fully generation using Scale MP-2016 (set forward five years for disabled retirees). Discount Rate and Long Term Expected Rate of Return The discount rate used to measure the total OPEB liability was 5.38%. Assets were projected using expected benefit payments and expected asset returns. Expected benefit payments by year were discounted using the expected asset return assumption for years in which the assets were sufficient to pay all benefit payments. Any remaining benefit payments after the net position is exhausted are discounted at the 20-year municipal bond rate. Therefore, the long-term expected rate of return on OPEB investments (7.50%) was applied to years 2022 through 2030 of projected benefit payments and the 20-year municipal bond rate based on a range of indices Page 54 of 72 30 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 6. OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED) from 3.54%-4.09% was applied to projected benefit payments after 2029 to determine the total OPEB liability. The discount rate changed from 5.04% in FY2023 to 5.38% in FY2024. These best estimates and the OPEB’s target asset allocation are summarized in the following table: Long-Term Expected Real Rate Target of Return Allocation Domestic equity 7.50% 60.00% Domestic bonds 2.50% 30.00% International equity 8.50% 10.00% International bonds 3.50% 0.00% Real estate 4.50% 0.00% 100.00% Sensitivity of the net OPEB liability to changes in the discount rate. The following presents the net OPEB liability of the Trust, as well as what the Trust’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (4.38% in 2024 and 4.04% in 2023) or 1-percentage-point higher (6.38% in 2024 and 6.04% in 2023) than the current discount rate: 1% Decrease Discount Rate 1% Increase Net OPEB Liability - 2024 $ 12,229,004 $ 10,023,830 $ 8,258,764 Net OPEB Liability - 2023 $ 12,892,963 $ 10,590,056 $ 8,763,447 Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The following presents the net OPEB liability of the Trust, as well as what the Trust’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (7.50% decreasing to 6.50%) or 1-percentage-point higher (7.50% increasing to 8.50%) than the current healthcare cost trend rates: Healthcare Trend 1% Decrease Rate 1% Increase 6.50% 7.50% 8.50% Net OPEB Liability - 2024 $ 8,109,593 $ 10,023,830 $ 12,453,238 Net OPEB Liability - 2023 $ 8,605,315 $ 10,590,056 $ 13,133,188 The OPEBT issues a publicly available Annual Comprehensive Financial Report (ACFR) which may be obtained from the City’s Accounting Services Division at 100 N. Walker, Oklahoma City, Oklahoma 73102. The ACFR includes the financial statements and required supplementary information of the OPEBT. Page 55 of 72 31 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 7. LESSOR LEASES The Trust has entered into leasing agreements with landowners. In conjunction with the leases stated in Note 4, the Trust has the following lease receivables: The Trust is entitled to receive one-half of 1% of Global Gaming RP, LLC’s total annual handle, as defined in the agreement, that exceeds $187 million and 1% of the gross gaming revenues in excess of $60 million each year. Contingent lease revenue earned during the years ended June 30, 2024 and 2023, approximated $692,397 and $692,885, respectively, and is included in rent revenue on the Statement of Revenues, Expenses and Changes in Net Position. The future payments include in the measurement of the lease receivable at an implied discount rate of 4.01% and are as follows: Total to be Year Ending June 30, Received Principal Interest 2025 $ 835,000 $ 209,093 $ 625,907 2026 835,000 217,160 617,840 2027 835,000 225,538 609,462 2028 835,000 234,240 600,760 2029 835,000 243,277 591,723 2030 – 2034 4,175,000 1,364,627 2,810,373 2035 – 2039 4,175,000 1,648,980 2,526,020 2040 – 2044 4,175,000 1,992,584 2,182,416 2045 – 2049 4,175,000 2,407,786 1,767,214 2050 – 2054 4,175,000 2,909,505 1,265,495 2055 – 2059 4,175,000 3,515,769 659,231 2060 – 2061 1,336,512 1,270,041 66,471 $ 30,561,512 $ 16,238,600 $ 14,322,912 8. RELATED-PARTY TRANSACTIONS During the years ended June 30, 2024 and 2023, the Trust recorded payments from the City derived from sales tax receipts of $18,126,565 and $18,098,610, respectively. The City leases to the Trust real and personal property of the Zoo at no cost to the Trust. This agreement gives the Trust the right to operate and realize the revenues of the Zoo. The City also leases to the Trust the main portion of the Remington Park Race Track site at no cost to the Trust. The City provides certain services to the Trust. Charges for those services for the years ended June 30, 2024 and 2023, are $1,182,892 and $728,491, respectively, and include administrative, insurance, printing, postage and workers’ compensation expenses. The Society leases a small portion of the Remington Park Race Track site to the Trust for $74,821 per year expiring in 2064. Also, for fiscal years 2024 and 2023, the Society provided Page 56 of 72 32 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 8. RELATED-PARTY TRANSACTIONS (CONTINUED) Zoo support and donated approximately $2,162,331 and $440,992, respectively, in Society membership dues, purchase of admission tickets, catering and other payments used to support Zoo operations and activities. Of the amounts provided, the Trust recognized approximately $2,297,200 and $1,089,500 for fiscal years 2024 and 2023, respectively, as donations in the Trust’s financial statements. As of June 30, 2024 and 2023, the Trust had a receivable from (payable to) the Society of approximately $3,533 and ($4,900), respectively. 9. RISK MANAGEMENT The Zoo is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Zoo pays an insurance premium to the City for property loss and workers’ compensation insurance coverage. Significant losses are covered by commercial insurance policies for all other programs except employee health, dental and life insurance. For insured programs, there have been no significant reductions in insurance coverage. Settlement amounts have not exceeded insurance coverage for the current year or the three prior years. Substantially all of the Zoo’s employees and their dependents are eligible to participate in the Zoo’s employee health insurance plan, which includes dental and life insurance. The Zoo is self- insured for health claims of participating employees and dependents up to an annual amount of $65,000 per individual. Commercial stop-loss insurance coverage is purchased for claims in excess of the annual amount. For fiscal year 2024 and 2023 self-insured health claims were $586,047 and $1,163,047, respectively. A provision is accrued for self-insured employee health claims, including both claims reported and claims incurred but not yet reported. The accrual is estimated based on consideration of prior claims experience, recently settled claims, frequency of claims and other economic and social factors. It is reasonably possible that the Zoo’s estimate will change by a material amount in the near term. Activity in the Zoo’s accrued employee health claims liability, included in accounts payable on the accompanying statements of net position, during 2024 and 2023 is summarized as follows: 2024 2023 Balance, beginning of year $ 67,000 $ 79,000 Current year claims incurred and changes in estimates for claims incurred in prior years 586,047 1,151,047 Claims and expenses paid (586,047) (1,163,047) Balance, end of year $ 67,000 $ 67,000 Page 57 of 72 33 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma NOTES TO THE FINANCIAL STATEMENTS 10. SERVICE CONCESSION ARRANGEMENTS Effective November 1, 2023, the Trust entered into a new agreement with SSA Group, LLC (SSA) under which SSA has the exclusive right to provide concession food and beverage services, catering food and beverage services and gift store services through January 15, 2031. The Trust has reported $718,337 in concession commissions through June 30, 2024 under this agreement. The Trust also reported $724,535 in merchandise commissions through June 30, 2024. SSA will pay various commission percentages based on adjusted gross receipts to the Trust (commission percentage ranges from 17-50%). SSA has a guaranteed minimum payment, related to the above commission percentages of $1,700,000 annually when the Trust exceeds 1,000,000 on-site visitors. The present value of these guaranteed payments is estimated to be $9,825,052 as of June 30, 2024. SSA is required to operate and maintain the facilities in accordance with the agreement. As part of the agreement, SSA is required to make $2,000,000 of investments in capital assets and improvements to existing zoo facilities to operate in accordance with the agreement. The balance remaining on this commitment as of June 30, 2024 is $1,522,326. The net book value of the asset improvements totaled $441,000 as of June 30, 2024. The Trust reports a receivable of $9,825,052 and deferred inflow of resources in the amount of $10,266,052 at June 30, 2024 pursuant to the service concession arrangement. The agreement with Lancer Hospitality Oklahoma, LLC (Lancer) was terminated during fiscal year 2024 and Lancer no longer provides food services, catering services and room rentals for the Trust. The Trust reported $333,065 and $1,430,985 in concession commissions through June 30, 2024 and 2023, respectively. Upon termination of the agreement with Lancer, the Trust recognized a gain of $583,403 to reduce the carrying value of the related deferred inflow. The receivable and deferred inflow of resources was $374,161 and $957,564 at June 30, 2023, respectively. Page 58 of 72 34 REQUIRED SUPPLEMENTARY INFORMATION Page 59 of 72 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma Defined Benefit Pension Plan I. Schedule of Proportionate Share Information 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Trust's proportion of the net pension asset 4.36% 4.92% 4.81% 4.67% 4.35% 4.44% 4.46% 4.46% 4.18% 4.31% Trust's proportionate share of the net pension asset (liability) $ (3,245,935) $ (2,561,421) $ 4,657,945 $ 2,209,355 $ 420,543 $ 1,244,139 $ 1,115,826 $ (52,322) $ 1,958,668 $ 2,646,879 Trust's covered-employee payroll $ 8,023,324 $ 7,068,428 $ 7,841,607 $ 8,274,080 $ 6,144,696 $ 6,025,585 $ 8,396,367 $ 5,938,606 $ 4,449,222 $ 4,888,000 Trust's proportionate share of the net pension asset as a percentage of its covered-employee payroll -40.46% -36.24% 59.40% 26.70% 6.84% 20.65% 13.29% -0.88% 44.02% 54.15% Plan fiduciary net position as a percentage of the total pension asset 91.88% 94.00% 111.43% 94.14% 101.30% 103.92% 103.69% 99.82% 107.52% 110.29% *The amounts presented for each fiscal year were determined as of the measurement date. II. Schedule of Employer Contributions 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Contractually required contribution $ 348,820 $ 527,266 $ 523,530 $ 451,992 $ 337,394 $ 312,047 $ 305,688 $ 305,688 $ 327,691 $ 337,384 Contributions in relation to the contractually required contribution 348,820 527,266 523,530 451,992 337,394 312,047 305,688 305,688 327,691 337,384 Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Trust's covered-employee payroll $ 8,930,425 8,023,324 $ 7,068,428 $ 7,841,607 $ 8,274,080 $ 6,144,696 $ 6,025,585 $ 8,396,367 $ 5,938,606 $ 4,449,222 35 Contributions as a percentage of covered-employee payroll 3.91% 6.57% 7.41% 5.76% 4.08% 5.08% 5.07% 3.64% 5.52% 7.58% Page 60 of 72 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma Other Post-Employment Benefit Plan I. Schedule of Proportionate Share Information 2024 2023 2022 2021 2020 2019 2018 Trust's proportion of the OPEB liability 3.82% 3.54% 3.51% 3.50% 3.36% 3.39% 3.61% Trust's proportionate share of the OPEB liability $ 10,023,830 $ 10,590,056 $ 14,676,209 $ 15,535,082 $ 14,288,729 $ 14,266,481 $ 18,841,596 Trust's covered-employee payroll $ 8,023,324 $ 7,068,428 $ 7,841,607 $ 8,274,080 $ 6,144,696 $ 6,025,585 $ 8,396,367 Trust's proportionate share of the net pension asset as a percentage of its covered-employee 124.93% 149.82% 187.16% 187.76% 232.54% 236.77% 224.40% Plan fiduciary net position as a percentage of the total pension asset 26.30% 22.10% 18.70% 13.80% 13.10% 12.00% 8.50% *The amounts presented for each fiscal year were determined as of the measurement date. Notes to Schedules Only the 2018 through 2024 fiscal year information is presented because the 10-year data is not yet available. 36 Page 61 of 72 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma Other Post-Employment Benefit Plan Schedule of Trust Contributions 2024 2023 2022 2021 2020 2019 2018 Contractually required contribution $ 631,633 $ 564,437 $ 641,945 $ 672,214 $ 734,909 853,057 $ 869,950 Contributions in relation to the contractually required contribution 508,608 471,328 467,333 489,311 493,680 493,680 571,000 Contribution deficiency (excess) $ 123,025 $ 93,109 $ 174,612 $ 182,903 $ 241,229 $ 359,377 $ 298,950 Covered-employee payroll $ 8,930,425 $ 8,023,324 $ 7,068,428 $ 7,841,607 $ 8,274,080 $ 6,144,696 $ 6,025,585 Contributions as a percentage of covered-employee payroll 5.70% 5.87% 6.61% 6.24% 5.97% 8.03% 9.48% Notes to Schedules Only the 2018 through 2024 fiscal year information is presented because the 10-year data is not yet available. 37 Page 62 of 72 SUPPLEMENTARY INFORMATION Page 63 of 72 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma COMBINING STATEMENT OF NET POSITION June 30, 2024 Operating Designated Sales Tax Account Account Account Total Current Assets Cash $ 4,452,950 $ 113,363 $ 20,742,748 $ 25,309,061 Accounts receivable, net of allowance 3,749,720 -- -- 3,749,720 Lease receivables 209,093 -- -- 209,093 Inventories 147,181 -- -- 147,181 Sales tax receivable from the City -- -- 2,378,063 2,378,063 Prepaid expenses 3,644 -- -- 3,644 Cash, restricted 248,930 -- -- 248,930 Total current assets 8,811,518 113,363 23,120,811 32,045,692 Noncurrent Assets Investments -- -- 28,889,997 28,889,997 Accounts receivable, noncurrent 8,493,824 -- -- 8,493,824 Long-term lease receivables 16,029,507 -- -- 16,029,507 Capital assets Construction in progress -- -- 43,882,665 43,882,665 Other capital assets, net of accumulated depreciation 5,953,090 -- 83,741,322 89,694,412 Total noncurrent assets 30,476,421 -- 156,513,984 186,990,405 Total assets 39,287,939 113,363 179,634,795 219,036,097 Deferred Outflows of Resources OPEB liability 2,017,096 -- -- 2,017,096 Pension plan 3,688,826 -- -- 3,688,826 Total deferred outflows of resources 5,705,922 -- -- 5,705,922 $ 44,993,861 $ 113,363 $ 179,634,795 $ 224,742,019 Page 64 of 72 Operating Designated Sales Tax Account Account Account Total Current Liabilities Accounts payable $ 2,320,858 $ 41,019 $ 126,135 $ 2,488,012 Lease liability 25,322 -- -- 25,322 Wages and benefits payable 1,074,361 -- -- 1,074,361 Compensated absences 149,979 -- -- 149,979 Bonds payable, current -- -- 1,780,000 1,780,000 Bond interest payable -- -- 81,212 81,212 Total current liabilities 3,570,520 41,019 1,987,347 5,598,886 Noncurrent Liabilities Bonds payable, net -- -- 27,367,550 27,367,550 Long-term lease liability 1,842,389 -- -- 1,842,389 Net pension liabilities 3,245,935 -- -- 3,245,935 Net OPEB liability 10,023,830 -- -- 10,023,830 Total noncurrent liabilities 15,112,154 -- 27,367,550 42,479,704 Total liabilities 18,682,674 41,019 29,354,897 48,078,590 Deferred Inflows of Resources OPEB liability 7,466,306 -- -- 7,466,306 Pension plan 386,438 -- -- 386,438 Service concession arrangement 10,266,052 -- -- 10,266,052 Leases 17,190,989 -- -- 17,190,989 Total deferred inflows of resources 35,309,785 -- -- 35,309,785 Net Position Net investment in capital assets 5,953,090 -- 97,672,662 103,625,752 Restricted for debt service -- -- 81,212 81,212 Restricted for health claims 181,930 -- -- 181,930 Unrestricted (15,133,618) 72,344 52,526,024 37,464,750 Total net position (8,998,598) 72,344 150,279,898 141,353,644 $ 44,993,861 $ 113,363 $ 179,634,795 $ 224,742,019 Page 65 of 72 38 OKLAHOMA CITY ZOOLOGICAL TRUST A Component Unit of the City of Oklahoma City, Oklahoma COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION Year Ended June 30, 2024 Operating Designated Sales Tax Account Account Account Total Operating Revenues Zoo admissions $ 5,158,000 $ -- $ -- $ 5,158,000 Concessions 3,092,665 -- -- 3,092,665 Zoo activities 7,134,024 -- -- 7,134,024 Rent 1,777,622 -- -- 1,777,622 Total operating revenues 17,162,311 -- -- 17,162,311 Operating Expenses Personnel services 14,952,304 -- -- 14,952,304 Maintenance, operations and contractual services 6,442,706 -- -- 6,442,706 Materials and supplies 1,963,112 -- 668,267 2,631,379 Depreciation 519,435 -- 3,675,743 4,195,178 Other 114,184 -- -- 114,184 Total operating expenses 23,991,741 -- 4,344,010 28,335,751 Operating loss (6,829,430) -- (4,344,010) (11,173,440) Nonoperating Revenues (Expenses) Donations 2,297,203 -- -- 2,297,203 Investment income 1,069,452 -- 1,357,714 2,427,166 Interest revenue - leases 633,673 -- -- 633,673 Interest expense (71,954) -- (957,410) (1,029,364) Sales tax payments from the City -- -- 18,126,565 18,126,565 Total nonoperating revenues 3,928,374 -- 18,526,869 22,455,243 Change in net position before transfers (2,901,056) -- 14,182,859 11,281,803 Transfers Between Accounts 4,764,201 (60,134) (4,704,067) -- Change in net position 1,863,145 (60,134) 9,478,792 11,281,803 Net Position, Beginning of Year (10,861,743) 132,478 140,801,106 130,071,841 Net Position, End of Year $ (8,998,598) $ 72,344 $ 150,279,898 $ 141,353,644 Page 66 of 72 39 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Trustees Oklahoma City Zoological Trust Oklahoma City, Oklahoma Independent Auditor’s Report We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Oklahoma City Zoological Trust (Trust), a blended component unit of the City of Oklahoma City, Oklahoma (City), which comprise the statements of net position as of June 30, 2024 and 2023, and the related statements of revenues, expenses and changes in net position and cash flows for the years then ended, and the related notes to the financial statements, and have issued our report thereon dated August 1, 2025. Report on Internal Control over Financial Reporting In planning and performing our audits of the financial statements, we considered the Trust’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Trust’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audits we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Trust’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audits and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Page 67 of 72 Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Trust’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Trust’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Allen, Gibbs & Houlik, L.C CERTIFIED PUBLIC ACCOUNTANTS Wichita, KS August 1, 2025 Page 68 of 72 41 TO: Chair and Trustees of the Oklahoma City Zoological Trust FROM: Dwight Lawson, Executive Director/CEO DATE: August 27, 2025 SUBJECT: Approve Amphitheater Transaction Report by Gate 52 detailing investments to date of $2,290,457.20 in Additional Manager Improvements; Approve Amphitheater Capital Improvements Letter granting Renewal Terms to Gate 52 as written in the Management and Operating Agreement. Background: On January 17, 2024, the Trust approved a Management and Operation Agreement with SL OKC Zoo, LLC (Gate 52). The Agreement is for an initial three-year term with the possibility of renewal terms after Gate 52 invests $1,500,000 in capital improvements to the Amphitheatre. To date, Gate 52 has incurred $3,790,457.20 in Capital Improvements, of which $2,290,457.20 is Additional Manager Improvements. The investments are detailed in the Transaction Report. Gate 52 is seeking approval of the Additional Manager Improvements pursuant to the Agreement. Gate 52 is seeking approval of the three (3), three-year Renewal Terms available to Gate 52 due to the Additional Manager Improvements. The Renewal Terms are exercisable in Gate 52’s discretion pursuant to Agreement. Gate 52 has expressed a very satisfactory partnership with the Oklahoma City Zoo, and they look forward to many years of successful stewardship of the Zoo Amphitheatre. Recommendation: Approve Amphitheatre Transaction Report and Approve Capital Improvements Letter Page 69 of 72 GATE >52 Via Electronic Mail May 27, 2025 Oklahoma City Zoological Trust 2000 Remington Place Oklahoma City, OK 73111 Re: Oklahoma City Zoo Amphitheater Capital Improvements Dear Oklahoma City Zoological Trust: On behalf of SL OK Zoo, LLC, an affiliate of Gate 52 LLC (collectively, "Gate 52"), I want to express how incredibly happy we are to be working with you to manage and operate the Oklahoma City Zoo Amphitheater (the "Venue"). We clearly have an aligned vision, and we look forward to many years of successful stewardship of this historic Venue together. As you know all too well, unfortunately the Venue required significantly more upfront Capital Improvements than either of us anticipated when we entered into the Management and Operating Agreement for the Venue in January 2024 (the "Agreement"). We now believe most of the major issues have been identified and addressed. While the Venue will obviously require regular maintenance, we do not anticipate needing to make significant additional Manager Improvements in the foreseeable future. Since we have reached the point at which most of the upfront Manager Improvements have been completed, we are writing to confirm our mutual understanding that Gate 52 has as of this date incurred $2,290,457.20 in approved, additional Manager Improvements beyond the initial $1,500,000 budgeted (see attached spreadsheet). Therefore, pursuant to Section 7(c) of the Agreement, Gate 52 now has an additional three (3), three (3) year Renewal Terms exercisable in Gate 52's discretion as set forth in Section 3. If you could please sign below, confirming our mutual understanding for our records (and our investors' requirements), we would very much appreciate it. Thank you very much. Sincerely, 3. 13.2025 Rebecca Wickens-Abratte, VP of Operations Date Page 70 of 72 149 S. Reeves Dr., Beverly Hills, CA 90212 GATE ? 52 APPROVED by the Trustees of the Oklahoma City Zoological Trust and signed by its Chairperson this day of _, 2025. ATTEST: By: Trust Secretary Chairperson REVIEWED for form and legality. Assistant Municipal Counselor 149 S. Reeves Dr., Beverly Hills, CA 90212 Page 71 of 72 SL OKC ZOO, LLC Transaction Report TOTAL SPEND 3/11/25 3,790,457.20 BASE TERM INVESTMENT 1,500,000.00 3 YEARS 2024 - 2026 EXTENSION 1 500,000.00 3 YEARS 2027-2030 EXTENSION 2 500,000.00 3 YEARS 2031-2033 EXTENSION 3 500,000.00 3 YEARS 2034-2036 AMOUNT OVER FULL-TERMS 790,457.20 TOTALS BY PROJECT / FACILITY ADA DECK 14,669.54 New structure for ADA compliance BARS (CONCESSIONS STANDS) 11,195.00 Existing stands (paint, minor repairs) BASKETBALL COURT 54,177.94 Backstage artist complex BATHROOM BUILDINGS 1,729,288.71 Full demo, new buildings, underground plumbing overhaul, sidewalks, increased toilet count BOX OFFICE BUILDING 1,120.00 Window install for guest services inside venue and minor repairs CATERING BUILDING 281,566.68 Demo gazebo, new building w/ full kitchen and dining room, two backstage bathrooms CONCESSIONS BUILDING 98,482.92 Removed hood vent, ceiling/wall/floor refinish, hand and dishwashing facilities (per Health Code) ENTIRE VENUE 79,303.83 Reflects all work done on project as a whole (IE:fire system; sewer; electrical; demolition; storage; etc.) EXISTING BUILDINGS 20,750.00 Exterior painting of all remaining buildings (painted to match new facilities) GREEN ROOM BUIDING 37,713.03 Remodeled all dressing rooms - walls, new flooring (FF&E not included in venue improvement numbers) LAWN / PUBLIC AREAS 770,673.38 Dead tree removal throughout, excavation of seating area; installation of irrigation system PERIMETER - VENUE 190,734.21 Removal of old chain-link fence, replacement with steel wall (noise reduction for neighborhood) SIGNAGE - PERMANENT 133,438.74 Installation of new signage over stage; front entry; back stage; etc. STAGE STRUCTURE 16,000.00 Necessary modification to stage grid TOURING BUILDING 216,090.45 New building w/ 3 touring offices, 4 bathrooms (2 with showers) for tours VIP DECK 135,252.77 Demo old deck, replace w/ concrete pad with astroturf and vintage Airstream bar TOTAL SPEND as of 03/11/25 3,790,457.20 Page 72 of 72