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Home My WebLink About05-27-21 Cemetary Advisory Board Agenda & PacketA.Call meeting to order Virtual Meeting Information This meeting will be held using WebEx, an online video conferencing system. You can join this meeting in WebEx or via phone. • To join using the WebEx platform, use the following link and follow the directions below the link: https://cityofbozeman.webex.com/cityofbozeman/onstage/g.php? MTID=ed4c977672e689e5ff09289fa0058a230 • Within 30 minutes of the meeting start time, click the “Register” link, enter the required information, and click submit. Click “Join Now” to enter the meeting. • To join via Phone dial 1-650-479-3208 Access code: 182 397 6994 B.Disclosures C.Public Service Announcement D.Consent E.Public Comment • To comment in writing on items on the agenda please send an email to kjazdzewski@bozeman.net prior to 5:00 pm on Wednesday, May 26, 2021. • To comment by joining the WebEx meeting you will use an icon on the screen to “raise your hand” during the appropriate time in the agenda. • If you are not able to join the WebEx meeting and would like to provide oral comment you may email a request to kjazdzewski@bozeman.net with your phone number and the item(s) you wish to comment on. City staff will call you during the meeting to provide comment. You may also send the above information via text message to 406-579-0391. Do not email or text your public comment during the meeting. Please state your name and address in an audible tone of voice for the record. This is the time for individuals to comment on matters falling within the purview of the Committee. There will also be an opportunity in conjunction with each action item for comments pertaining to the item. Please limit your comments to three minutes. F.Action Items F.1 Proposed Cemetery Fee Changes for Fiscal Year 2022 (Donald) THE CEMETERY ADVISORY BOARD OF BOZEMAN, MONTANA CAB AGENDA Thursday, May 27, 2021 1 G.FYI/Discussions Mitch Overton to talk about: • Board Consolidation • SWMT Veteran’s Cemetery • Budget • Bridger Ski Foundation • Forestry • Staffing H.Adjournment For more information please contact Kelley Jazdzewski, kjazdzewski@bozeman.net or 582-2906. Committee meetings are open to all members of the public. If you have a disability and require assistance, please contact our ADA coordinator, Mike Gray at 582-3232 (TDD 582-2301). 2 Memorandum REPORT TO:Cemetery Advisory Board FROM:Mitch Overton, Parks and Recreation Director Kristin Donald, Finance Director SUBJECT:Proposed Cemetery Fee Changes for Fiscal Year 2022 MEETING DATE:May 27, 2021 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Recommend the City Commission adopt the Sunset Hills Cemetery Fee Schedule Change as presented. STRATEGIC PLAN:6.5 Parks, Trails & Open Space: Support the maintenance and expansion of an interconnected system of parks, trails and open spaces. BACKGROUND:During FY2018 we reviewed Cemetery fees for the first time since 2011. As part of this review we looked at the fees and the amount of the fees going towards the Perpetual Care Fund. Before 2011 the Perpetual Care Fund had a small balance and needed to be built up and preserved for the future care of the cemetery. In 2011 all lot sale revenue went to the Perpetual Care Fund. With recommendation from the Cemetery Board, the Commission approved 35% of all revenues. In addition, with a long space between fee change fees in the past, fees were increased by 25% in 2011 and 2% for the year’s following. Now that the Perpetual Care Fund is in a good funding place and Cemetery Costs have increased we need to look at the fee rates and the Perpetual Care fund deposit. Currently, taxes are heavily supplementing Cemetery Operations and it is our recommendation that reliance on taxes should decrease. We recommend that tax support move closer to 50% from its current level of nearly 80%. Since the changes made in 2011 and in 2018, the Perpetual Care Fund is healthier and no spending has occurred in the fund. As of the FY20 the Perpetual Care Fund has a balance of over $1.5 million and is earning interest. 3 UNRESOLVED ISSUES:None. ALTERNATIVES:As recommended by the Cemetery Advisory Board members. FISCAL EFFECTS:To make the Cemetery operations rely less on taxes and more on charges for services, while still contributing to the Perpetual Care Fund we are recommending: Increase fees for FY22 by 4% and 3% thereafter along with rounding to the nearest dollar. (how much additional money?) Instead of 35% of all revenues going to the Perpetual Care Fund, have 25% of all lot sales go to the fund. (What is the estimated amount deposited?) These two changes will still keep investing for the long term care of the cemetery and not rely has heavily on taxes for operations. We will monitor and continue to evaluate fees and the Perpetual Care fund. Attachments: Cemetery Board Perpetual Fund memo FY20.pdf Cemetery Memo For Fee Changes .docx Report compiled on: May 21, 2021 4 DATE: February 3, 2021 TO: Cemetery Advisory Board FROM: Kristin Donald, Finance Director SUBJECT: Cemetery Perpetual Fund and Budget Report for Fiscal Year 2020 The City’s Cemetery Perpetual Care Fund most recent audited financial information is for the Fiscal Year ending June 30, 2020 and is contained in the “Balance Sheet” and “Statement of Revenues, Expenditures, and Changes in Fund Balances” attached to this memo. The report was submitted to and accepted by the City Commission on January 12, 2021. A full copy of the Comprehensive Annual Financial Report can be found at: https://www.bozeman.net/government/finance/budget‐and‐financial‐reports The City, once again, received an Unmodified (clean) Audit Opinion from the independent auditors, and had no findings listed in the report. You can see on the following page, revenues came in slight under our estimates for the fiscal year. The fund made no (zero) expenditures; it is accumulating assets for care of the cemetery after closure. The Fund balance at year‐end was $1,522,049, which is an increase of $79,708. 5 168CITY OF BOZEMAN, MONTANASCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUALNONMAJOR GOVERNMENTAL FUNDS (CONTINUED)Year Ended June 30, 2020VariancePositiveBudget Actual (Negative)REVENUESIntergovernmental -$ -$ -$ Charges for services80,000 55,434 (24,566) Interest on investments 10,000 24,274 14,274 Total revenues 90,000 79,708 (10,292) EXPENDITURES - BUDGET UNIT - - - Revenues over (under) expenditures 90,000 79,708 (10,292) OTHER FINANCING SOURCES (USES) - - - Revenues and other sources over(under) expenditures 90,000$ 79,708 (10,292)$ FUND BALANCES, beginning of year 1,442,341 FUND BALANCES, end of year 1,522,049$ Cemetery Perpetual CarePermanent Fund6 Cemetery Fee Changes Background: During FY2018 we reviewed Cemetery fees for the first time since 2011. As part of this review we looked at the fees and the amount of the fees going towards the Perpetual Care Fund. Before 2011 the Perpetual Care Fund had a small balance and needed to be built up and preserved for the future care of the cemetery. In 2011 all lot sale revenue went to the Perpetual Care Fund. With recommendation from the Cemetery Board, the Commission approved 35% of all revenues. In addition, with a long space between fee change fees in the past, fees were increased by 25% in 2011 and 2% for the year’s following. Now that the Perpetual Care Fund is in a good funding place and Cemetery Costs have increased we need to look at the fee rates and the Perpetual Care fund deposit. Currently, taxes are heavily supplementing Cemetery Operations and it is our recommendation that reliance on taxes should decrease. We recommend that tax support move closer to 50% from its current level of nearly 80%: Since the changes made in 2011 and in 2018, the Perpetual Care Fund is healthier and no spending has occurred in the fund. As of the FY20 the Perpetual Care Fund has a balance of over $1.5 million and is earning interest. 13%15%13%17%11%21% 87%85%87%83%89%79% 0% 20% 40% 60% 80% 100% 120% FY16 FY17 FY18 FY19 FY20 FY21 Budget Funding Breakdown for Cemetery Operations % Funded by General Fund Taxes % Funded by Charges for Services 7 Recommendation To make the Cemetery operations rely less on taxes and more on charges for services, while still contributing to the Perpetual Care Fund we are recommending: Increase fees for FY22 by 4% and 3% thereafter along with rounding to the nearest dollar. (how much additional money?) Instead of 35% of all revenues going to the Perpetual Care Fund, have 25% of all lot sales go to the fund. (What is the estimated amount deposited?) These two changes will still keep investing for the long term care of the cemetery and not rely has heavily on taxes for operations. We will monitor and continue to evaluate fees and the Perpetual Care fund. 2010, $544,209 2014, $880,682 2018, $1,311,442 2020, $1,522,049 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Perpetual Care Fund Balance 8