Memorandum

City of Lawrence

City Manager’s Office

TO:	Dave Corliss, City Manager
FROM:	Cynthia Boecker, Assistant City Manager
CC:	Diane Stoddard, Assistant City Manager Ernie Shaw, Interim Parks and Recreation Director Mark Hecker, Park Superintendent Mitch Young, Parks District Supervisor
DATE:	December 3, 2008
RE:	Cemetery Rates

Please include the following item on the City Commission agenda for consideration at the December 9, 2008 meeting.

Authorization of increase in Cemetery Rates

The attached memo provides information on recommended increases to cemetery fees.  Staff compared various cemetery costs in Lawrence to other public and private cemeteries in the region, reviewed costs relating to cemetery services and a history of cemetery fees.  The information presents a policy question:  to what extent do we as a City cover the costs relating to operation and maintenance of cemeteries? In review of operating costs and practices in other communities, staff believes it is appropriate to increase fees to cover some of the costs to operate and maintain cemetery facilities.  However, some costs – particularly those relating to ongoing maintenance – will not be completely covered with rates for new plot openings.  Based on the information presented, staff recommends a phased increase to cemetery rates, increasing fees $50 per year over a five year period.  It is anticipated that approximately $15,000 per year in additional revenue would be generated.  Additional revenues will assist in providing for operations and maintenance expenses now and in the future.

Of note, the City earlier this year received funds in the Memorial Park Cemetery Reserve Account.  These funds totaled just under $243,000.  Improvements totaling $141,000 have been made to the cemetery. 

Staff met with local funeral home operators to obtain feedback on the proposed rates.  While there was support for a rate increase in 2009, it was suggested that further review occur regarding increases beyond one year out.  Staff continues to recommend a multi-year phase in to the proposed fee increases to appropriately forecast future fee increases and make progress on the goal of some level of cost-recovery for cemetery operations

Action Request

Approve an annual increase of $50 in cemetery fees beginning in 2009 and continuing through 2013.