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Department of Parks and Recreation
Reference: An Ordinance approving a Loan Agreement between the Brighton Cemetery Perpetual Care Fund and the City of Brighton Cemetery Fund in the amount of $150,000 for the purpose of constructing Cremation Gardens at Elmwood and Fairview Cemeteries
To: Mayor Richard N. McLean and Members of City Council
Through: Manuel Esquibel, City Manager
Prepared By: Gary Wardle, Director Parks and Recreation
Date Prepared: February 6, 2015
PURPOSE
An Ordinance Approving a Loan Agreement between the City of Brighton Cemetery Perpetual Care Fund and the City of Brighton Cemetery Fund to allow the City to design and construct Cremation Spreading Gardens in Elmwood Cemetery and Fairview Cemetery.
BACKGROUND
The City of Brighton operates 2 Cemeteries for the residents of Brighton and surrounding neighbors, Elmwood and Fairview.
Currently the operation of the Cemeteries is subsidized by the City General Fund in the amount of $113,000 per year.
The goal of the proposal is to increase revenue from cemetery sales to reduce/eliminate the subsidy and have the Cemetery operate as an Enterprise Fund.
One way to increase business in the Cemeteries is to increase cremation sales.
• Over the last 3 years the City has averaged 130 burials a year, this includes all burials (casket and cremation).
• Over the last 3 years the City have averaged 49 cremation burials a year.
• The local funeral home has averaged 327 burials a year over the last 3 years (183 cremations and 144 full burials), 65% of City business comes from Tabor
• 60% of the funeral home business is cremations currently.
• The City is only burying on average 20% of the funeral home cremation business.
• 80% of the funeral home cremations are not being buried and going home.
• The City is missing out on a significant part of the funeral market. After talking with local funeral directors and owners, they tell me the City needs less expensive options for cremations. Creating more Cremation options with different price points will help the city capture more Cremation burials
PERPETUAL CARE FUND
The cost of burials at the Cemeteries includes a payment for the Perpetual Care Fund. Currently the Perpetual Fund has $1,500,000. These funds are intended to maintain and operate the Cemeteries in the future.
Staff is recommending that the Perpetual Care Fund loan $150,000 to the Cemetery Fund to develop new cremation options for the citizens of Brighton. The funds will be used to design, develop, purchase and install new cremation items in a Spreading Garden at both Elmwood and Fairview Cemeteries. The work will be done with a combination of outside contractors and in house staff working together to develop new cremation gardens and options. It is estimated that the spreading gardens will be complete in 2016.
The sales of the new products in the Spreading Garden will be used to repay the loan plus interest. It is suggested the Interest on the loan be 2% simple interest on the unpaid balance annually. The cost for the sites in the spreading garden will also include a Perpetual Care fee. The repayment is anticipated to be complete in 20 years.
FINANCIAL IMPACT
Use $150,000 from Cemetery Perpetual Care fund to construct the Cremation Gardens
STAFF RECOMMENDATION
Staff recommends the approval of the Ordinance to create a Loan Agreement between the City of Brighton Perpetual Fund and the City of
Brighton Cemetery Fund in the amount of $150,000 to design and construct a Cremation Garden in Elmwood Cemetery and Fairview Cemetery
OPTIONS FOR COUNCIL CONSIDERATION
Approve the Ordinance on first Reading
Not approve the Ordinance
ATTACHMENTS
1. Ordinance