VIRGINIA BEACH, Va. — As the City of Virginia weighs the future of the Virginia Aquarium, its city council approved a new ordinance on Tuesday that aims to dive further into its finances.
The city owns and operates the aquarium facility, while the Virginia Aquarium Foundation owns the animals and exhibits. Questions have lingered in recent months on how the city should proceed with its funding, as the 40-year-old site needs maintenance.
The new ordinance directs the city manager to further discussions with the Aquarium Foundation to review the Virginia Aquarium and the Foundation's financial information and seek efficiencies in the Aquarium's operation. The city manager will also assess the condition of the Aquarium facility and exhibits and pursue state and federal funding opportunities for the Aquarium.
The ordinance also authorizes the city manager to execute a cost-share agreement with the Foundation to participate in “not to exceed 50%” of the costs associated with a facility inspection contract. The city’s financial contribution will come from a capital project line item already dedicated to renewal and replacement needs at the facility.
Also on Tuesday, City Auditor Lyndon Remias presented the results of an already-completed audit that found the Aquarium had a $3.7 million shortfall in Fiscal Year 2024, in addition to a $3 million shortfall in FY23. The Foundation has been operating in the black, but by smaller amounts, meaning the combined shortfall was $2.875 million in FY24 and $2.6 million in FY23.
Remias recommended the following to City Council:
- City management should work with the City Council and the Foundation to address issues including reviewing the distribution of concession and program revenue and expenditures, reviewing the pros and cons of the Aquarium director and Foundation executive director being the same person, and ensuring accreditation is done under the Aquarium name.
- City management and City Council should work together to include an initiative in the next legislative agenda package to seek federal and state funding for education, conservation, and stranding programs.
- City management should address low morale among Aquarium employees with transparent communication; involve employees in strategic planning; provide reassurance through clear, actionable steps; address concerns about the longevity of the building with a detailed assessment of its condition; and continue to appoint City Council liaisons.