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HomeMy WebLinkAboutResolution No. 4167, Amending the Cemetery Fees Charged Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Thom White, Park and Cemetery Superintendent Chuck Winn, Assistant City Manager SUBJECT: Resolution 4167- Sunset Hills Cemetery fee increase MEETING DATE: May 18, 2009 RECOMMENDATION: Staff recommends the City Commission approve Resolution 4167, amending the fees charged for the Sunset Hills Cemetery. BACKGROUND: Currently, Cemetery Fees recover approximately 23% of Cemetery Division costs from the Charges for Services related to the cemetery. The remaining 77% of the Cemetery Division budget is subsidized by the General Fund. At the May 15, 2006 Commission meeting the City Commission adopted a fee schedule with the goal of 25% cost recovery. Since that time, division costs have slowly grown to the point that we are now recovering less than 25%. An average of 10% of revenue is placed in the Perpetual Care Fund and interest from this fund is returned to the General Fund. Interest to date for FY09 is $12,000, with 2 months remaining. FY08 interest was $24,000. This difference is reflective of current economic conditions and those effects on interest rates. Because Personnel costs are the largest single element of the Cemetery division budget, increases in wages and benefits have a significant effect on how much fees need to be increased to maintain the 75% General Fund subsidy. For every 1% increase in personnel costs, cemetery revenue must increase 3% in order to keep our 25% cost-recovery scenario, without any other increases in operating costs. Staff recommends a 10% rate increase be established beginning on July 1, 2009, with an additional 10% increase on July 1, 2010. In our estimation, this will enable the Cemetery Division to maintain the 75% General Fund subsidy. Cemetery Board: The Cemetery Advisory Board was advised during their September 11, 2008 meeting that the City’s goal is to reduce the amount of subsidy from the General Fund for the Cemetery operation and maintenance. At their February 2, 2009 meeting, the Cemetery Advisory Board voted and approved a one year 6% increase of cemetery fees, commencing in 100 fiscal year 2010. The intent behind the one year increase was to gradually increase fees, though the Board is mindful of the Commission’s direction for decreased subsidy of the general fund. Staff is recommending a 10% increase for each of the next 2 years to maintain a 25% budget recovery. FISCAL EFFECTS: These fee increases would become effective on July 1st of each of the following fiscal years, bringing in a total of approximately $115,000 in FY10 and $125,000 in FY11. Increases in fee revenue are dependent on how many lots and cemetery services are purchased each year. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, _________________________________ ____________________________ Thom White, Park and Cemetery Superintendent Chuck Winn, Assistant City Manager Attachments: *Resolution No. 4167 *Proposed Cemetery Fee schedule *Revenue, Expenditure, and Subsidy estimates chart 101 - 1 - COMMISSION RESOLUTION NO. 4167 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING THE CEMETERY FEES CHARGED FOR THE SUNSET HILLS CEMETERY. WHEREAS, the City Commission did, on the 7th day of April 1986, adopt Ordinance No. 1200, establishing the Cemetery Board, which is an advisory board to the Bozeman City Commission; and WHEREAS, the Cemetery Board was created for the purpose of assisting the Commission in the operation of the Sunset Hills Cemetery by making investigations and giving recommendations; and WHEREAS, the City Commission did, on the 15th day of November 1999 adopt Commission Resolution No. 3335, establishing the fees recommended by the Cemetery Board for the sale of niches in the columbarium; and WHEREAS, the City Commission did, on the 20th day of March 2000, adopt Commission Resolution No. 3351, establishing the fees recommended by the Cemetery Board; and WHEREAS, the City Commission did, on the 28th day of April 2003, adopt Commission Resolution No. 3590, establishing the fees recommended by the Cemetery Board; and WHEREAS, the City Commission did, on the 15th day of May 2006, adopt Commission Resolution No. 3816, establishing the fees recommended by the Cemetery Board; and WHEREAS, at its meeting held on the 4th day of May 2006, the Cemetery Board did vote to recommend that specified fees for maintenance and opening and closing of lots be increased. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana: 102 - 2 - Section 1 That the following schedule of fees shall be effective for the sale of cemetery lots and other cemetery activities, on July 1, 2009 and July 1, 2010 as described: 103 - 3 - Description July 1, 2009 July 1, 2010 Deed & Current Maintenance Fees (General Fund - 010) Regular Lot 530.20$ 583.22$ Ashes lot 346.50$ 381.15$ Infant lot 59.40$ 65.34$ Columbarium 470.80$ 517.88$ Second Urn 148.50$ 163.35$ Perpetual Care Maintenance (Permanent Fund - 800)-$ Regular Lot 58.30$ 64.13$ Ashes lot 38.50$ 42.35$ Infant lot 6.60$ 7.26$ Wooden Box 27.50$ 30.25$ Columbarium 51.70$ 56.87$ Second Urn 16.50$ 18.15$ Opening & Closing Regular Lot Weekdays 440.00$ 484.00$ Saturdays, Sundays, evenings, holidays 632.50$ 695.75$ Ashes Lot Weekdays 220.00$ 242.00$ Saturdays, Sundays, evenings, holidays 313.50$ 344.85$ Infant Lots Weekdays 88.00$ 96.80$ Saturdays, Sundays, evenings, holidays 126.50$ 139.15$ County & MSU Weekdays 220.00$ 242.00$ Saturdays, Sundays, evenings, holidays 313.50$ 344.85$ Columbarium Weekdays 110.00$ 121.00$ Saturdays, Sundays, evenings, holidays 165.00$ 181.50$ Miscellaneous Fees Disinternment Triple Opening &Triple Opening & closing Fee closing Fee Reinterment Triple Opening &Triple Opening & closing Fee closing Fee Extra depth burial Double Opening &Double Opening & closing Fee closing Fee Monument Setting Permit 16.50$ 18.15$ Monument Setting Permit for Veteran No Fee No Fee Administrative Fee for Reconveyence to City 27.50$ 30.25$ Lowering Device Rental 33.00$ 36.30$ Disinterment/reinterment within one week of original interment 385.00$ 423.50$ County interment for infants or ashes 55.00$ 60.50$ Payment in lieu of vault 385.00$ 423.50$ 104 - 4 - Section 2 Pursuant to Section 2.76.050 of the Bozeman Municipal Code, the Director of Finance, or his designee, shall receive and have custody of all cemetery monies. PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 18th day of May 2009. _____________________________________ KAAREN JACOBSON Mayor ATTEST: _____________________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 105 CEMETERY DIVISIONREVENUE, EXPENDITURE AND SUBSIDY ESTIMATESRevenue From Cemetery Activities FY09 Budget Expenditures of Cemetery Division FY09 BudgetSale of Plots 53,950$ Personnel 338,543$ Cemetery Admin Fees - Operations 137,381 Grave Permits 40,000 Capital 12,000 Monument Set Fees 1,500 Disinterment Fees 1,200 96,650 Interest From Perpetual Care Fund 16,000 Total Revenue from Cemetery Activities 112,650$ Total Expenditures for Cemetery Activities 487,924$ Difference between Rev & Expenditures (375,274)$ 77% subsidyRevenue From Cemetery Activities FY10 Estimate Expenditures of Cemetery Division FY10 EstimateSale of Plots 55,820$ Personnel 328,845$ Cemetery Admin Fees - Operations 96,995 Grave Permits 40,318$ Capital 38,000 Monument Set Fees 1,650$ Disinterment Fees 1,320$ 99,108 Interest From Perpetual Care Fund 16,000 Total Revenue from Cemetery Activities 115,108$ Total Expenditures for Cemetery Activities 463,840$ Difference between Rev & Expenditures (348,732)$ 75% subsidy%yRevenue From Cemetery Activities FY11 Estimate Expenditures of Cemetery Division FY11 EstimateSale of Plots 61,401$ Personnel 341,999$ Cemetery Admin Fees -$ Operations 99,905 Grave Permits 44,350$ Capital 39,140 Monument Set Fees 1,815$ Disinterment Fees 1,452$ 109,019 Interest From Perpetual Care Fund 16,000 Total Revenue from Cemetery Activities 125,019$ Total Expenditures for Cemetery Activities 481,044$ Difference between Rev & Expenditures (356,025)$ 74% subsidy106 107