CC Staff Report 11-10-2014 Approve Resolution Establishing Cemetery Fund0
CITY OF
CAANHAS3EN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone 952.227.11 80
Fax. 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone, 952.227.1130
Fax: 952.2271110
Public Works
7901 Park Place
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Website
www.d.chanhassennn.us
E7-10
MEMORANDUM
TO: Mayor & City Council
FROM: Greg Sticha, Finance Director
DATE: November 10, 2014 &4 G°
SUBJ: Approve Resolution Establishing a Cemetery Fund
PROPOSED MOTION:
The City Council approves the attached resolution establishing a cemetery fund;
and a transfer of $33,344 from the city's General Fund to a new Special
Revenue Fund to be named Cemetery Fund.
Approval requires a simple majority vote of the City Council.
BACKGROUND
During the past year city council has had multiple meetings discussing the expansion
of the city -owned Chanhassen Pioneer Cemetery. As part of that discussion, staff
concluded that approximately $22,800 would be needed for improvements to allow
just over 300 new grave sites.
Staff then began researching the financial accounting history of the cemetery receipts
and expenses since its creation. Based on this research it appears all of the receipts
and majority of expenses were accounted for in the city's General Fund. Staff then
either estimated or found documentation on plot revenue, maintenance expenses,
capital expenses and interest owed since its inception (see attached spreadsheet).
After reviewing the available financial documentation and making accounting
estimates on some other items, staff determined that there would be just over a
$33,000 balance if a special revenue fund had been created at its inception. Since all
of the transactions were accounted for in the city's General Fund, any revenues that
exceeded expenses would have been part of the Retained General Fund Balance.
Staff also prepared a number of calculations to establish pricing of grave plots and
internment fees. The attached spreadsheet breaks down that analysis based on current
market conditions of surrounding community pricing and taking into account the
long -term financial viability of the established fund.
Chanhassen is a Community for Life - Providing forTodayand Planning forTomorrow
Mayor & City Council
Establish Cemetery Fund
November 20, 2014
Page 2
Staff recommends that the City Council adopt the attached resolution and approve the transfer of
$33,344. Approval requires a simple majority vote of the City Council.
ATTACHMENTS
1. Resolution establishing Cemetery Fund.
2. Accounting analysis of past transactions and future estimated fund balances.
E\gregs \counci1\2014 \establish cemetery fund memo 11- 24.doex
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: November 10, 2014 RESOLUTION NO: 2014-
MOTION BY:
BY:
RESOLUTION ESTABLISHING A CEMETERY FUND
WHEREAS, the city council has had multiple meetings discussing the expansion of the
city -owned Chanhassen Pioneer Cemetery; and
WHEREAS, as part of those discussions, staff researched and concluded that
approximately $22,800 would be needed for improvements to allow just over 300 new grave
sites; and
WHEREAS, a Special Revenue Fund will need to be set up by the city's Finance Director
to account for all revenues and expense associated with the cemetery; and
WHEREAS, that special revenue fund will be named "Cemetery Fund #202"; and
WHEREAS, funds receipted into this fund in the form of Plot Fees and Internment Fees
will be restricted for the use of maintaining the cemetery grounds and for future capital
improvements as needed.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Chanhassen,
Minnesota, that a Special Revenue Fund be established and named Cemetery Fund #202; and the
Finance Director is authorized to transfer the amounts as shown in the following table:
Transfer from
Transfer to
I Amount
101 General Fund
202 Cemetery Fund
1 $33,344
Passed and adopted by the Chanhassen City Council this 10th day of November, 2014.
ATTEST:
Todd Gerhardt, City Manager
YES
Thomas A. Furlong, Mayor
NO ABSENT
fdgregs \cmmci1\2014\resolmion establishing cemetery fund 11- 24.docx
City of Chanhassen
Cemetery Fund Analysis (Starting at $400 /plot)
Fund 6 positive uMB: 2112
Estimated Initial
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Fund Balance
10,544
Beginning Fund Balance
10,544
10,172
14,990
19,824
24,671
29,675
34,714
41,376
48,571
55,905
63,381
70,996
80,791
90,787
100,986
Estimated Revenue (Plot Fees)
-
4,800
4,800
4,800
4,800
4,800
6,120
6,120
6,120
6,120
6,120
7,800
7,800
7,800
7,800
Estimated Revenue (internment Fee)
200
900
900
900
900
900
1,140
1,140
1,140
1,140
1,140
1,440
1,440
1,440
1,440
Estimated Opereting Expenses
(722)
(1,104)
(1,159)
(1,217)
(1,278)
(1,342)
(1,409)
(1,479)
(1,553)
(1,631)
(1,713)
(1,798)
(1,888)
(1,983)
(2,082)
Estimated Capital Improvements
Year End Fund Balance
10,022
14,768
19,531
24,306
29,093
34,033
40,565
47,156
54,278
61,535
68,928
78,438
88,143
98,044
108,144
Interest Earned
150
222
293
365
582
681
811
1,415
1,628
1,846
2,068
2,353
2,644
2,941
3,244
Beginning Balance Calculation
Funds Received from priorto 1987 16,000
Plot Revenue since e7 49,400 227 plots sold since 1987 @ $200/plot + 80 internment fee's @ $50/each
Interest owed since 87 11,700 Calculated on avg$15,000 balance at 3% interest earned per year
Main[ expense since 87 (15, 200) Calculated at a 2% increase since 1987 getting to the final current cost at $722 /Year
Capital since 87 (28,556)
Capital needed to Add Plots (11,800)
Pavers/Roadway (11,000)
Balance carried forward 10,544 Tsf from General fund
Potential Future Graves 314 Lose 30 plots in order to not eliminate a couple of trees on site
Revenue estimates (based on annual Increase of 5% /year, Increase accumulated and enacted once every 5 years)
Plot Fees Rates (selling 12 plot s /year, total of 314 plots available)
2015 -2019 qOp
2020 -2024 510
2025 -2029 650
2030 -2034 830
2034 -2041 1060
Internment Fee Rates (6 per year, total of 559)
2015 -2019 150
2020 -2024 190
2025 -2029 240
2030 -2034 310
2035 - 2039 400
2040 -2044 510
2045 -2049 650
2050 -2054 830
2055 -2059 1060
2060 -2064 1350
2065 -2069 1720
2070 -2074 2200
2075 -2079 2810
2080 -2084 3590
2085 -2089 4580
2090 -2094 5850
2095 -2099 7470
2100 -2104 9530
2105 -2108 12170
Interest l ncome
2014 -2017 1.50%
2018-2020 2.0056
2021- Beyond 3.00% -
Operating Expense Increases at 5% /year
Capital Improvement Schedule (3% Increase per year, accumulated and increase enacted every 15 years)
2030
2045 (23,000)
2060 (35,000)
2075 (53,000)
2090 (80,000)
2105 (121,000)
2120 (183,000)
2135 (276,000)
2150 (419,000)