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Ord 18-2006 3/7/2006 ORDINANCE NO. I g-ao ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS AMENDING ORDINANCE 22-89 TO APPROPRIATE FUNDS FROM THE CEMETERY REVENUE FUND IN AN AMOUNT NOT TO EXCEED $8,000; AND AUTHORIZING THE PROPERTY ADMINISTRATOR TO PURCHASE WITH SUCH FUNDS THE VACANT LOTS ADJACENT TO RIVERSIDE CEMETERY AT 312 AND 314 CLIFT STREET; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, it is desirable to achieve self support status for City operation of its cemeteries; and WHEREAS, Riverside Cemetery has no grave spaces available for sale; and continuing requests for spaces suggest if more cemetery land were available that the additional grave space sales will bring in additional revenue leading to the eventual self support status of City cemetery operation. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: SECTION 1. Ordinance 22-89 is hereby amended to appropriate funds from the Cemetery Revenue Fund in an amount not to exceed $8,000; and the Property Administrator is hereby authorized to purchase with such funds the adjacent vacant lots to Riverside Cemetery at 312 and 314 Clift Street; and the purchase will primarily be determined by the required appraisal by an independent, certified real estate appraiser. SECTION 2. It is hereby officially found and determined that the meeting at which this ordinance was passed was open to the public as required by law. PASSED AND APPROVED this the 7th day of March 2006. C--�J MAYOR ATTEST: . � ity Clerk A Plan for Cemetery Operation Self Support By 2025 The goal of this plan is achieve City cemetery operation self support, thus, ending General Fund subsidy. This is believed possible with the expansion of Riverside Cemetery on the east to Clift Street. The expansion will generate additional revenue from grave sales and services that could move the cemetery operation to a perpetual care enterprise by 2025. Weekly requests for purchase of Riverside Cemetery grave spaces suggest demand for additional spaces in Riverside Cemetery for many years to come. Further, because Riverside Cemetery is considered an historical asset to Wichita Falls this action will ensure it is preserved and maintained for posterity. Plan Outline A. Background of City cemetery operation. B. Description of existing Riverside Cemetery property. C. Land acquisition proposal along Clift Street. D. Cost estimate for acquisition. E. Cemetery development proposal. F. Cost estimate for construction. G. Estimated effect on reducing tax subsidy to the cemetery budget. ��� A. The City of Wichita Falls operates and maintains three cemeteries. The reason is the City assumed ownership from private cemetery associations that were no longer able to maintain their cemeteries. The first cemetery the City acquired was Riverside Cemetery in 1892. The second cemetery was Lakeview Cemetery in 1927 when the City acquired the land that is now named University Kiwanis Park. The third cemetery is Rosemont Cemetery acquired in 1974 after the cemetery association requested the City assume control of the cemetery. The purpose of the City acquisition of these cemeteries is to prevent the land from deteriorating into a weedy and area and becoming a public nuisance. Also, because cemeteries can not be acquired privately and developed into alternative uses, it falls on the local government to assume custodial care. This is similar to the policy the City follows for acquisition of tax delinquent vacant lots. It is noted the assumption of maintenance of the cemetery is limited to keeping grass, shrubs, and trees in an acceptable level that complies with City code. Grave markers are private property and are not maintained by the City. It is the desire of the City Council to achieve self support status for the cemetery operation. This goal was moved forward in approximately 1990 when the City Council required all grave space sales revenue be deposited in a special account. This account is for the purpose of growing to a level that the interest earned will pay for the operation of the cemeteries and eliminate the tax subsidy for the cemetery operation. The account balance is $683,200. The opportunity for the expansion of Riverside Cemetery is due to State law that allows existing cemeteries within city limits to expand. However, the law prohibits new cemeteries being established within city limits. Fortunately, the City has for over twenty years acquired five vacant lots on the east side of Riverside Cemetery on Clift Street for the primary purpose of expansion. A secondary purpose is to prevent the vacant lots from becoming a public nuisance. The balances of the lots on Clift Street are herein proposed to be acquired by negotiated purchase as the lots come on the market. B. Description of existing property. 1. The existing cemetery property is bordered by the Wichita River and Trail on the north, by the Central Services Facility on the west, by Seymour Highway on the south, and private and City properties fronting Clift Street on the east. It is 38 acres in size. 2. Map is attached. 3. There are approximately 17,000 individual grave spaces. 4. There are no more adult spaces available. 5. There is no more room for expansion within the cemetery, with the exception of possible sale of carriage ways and walks. A. Land acquisition proposal. 1. Map of area around Clift Street is attached. B. Cost estimate for acquisition. Pro ert Address Tax Number Owner 2005 Tax Valuation 200 Central Freewa -Vacant 4530-070-03 State of Texas ROW $3,270 210 Clift Street-Vacant 4530-070-0100 Michael Patrick 17,250 212 Clift Street-Vacant 4530-071 Robert Patrick 8,280 300 Clift Street-House 0520-029 JM Jones 10,880 302 Clift Street-House 0520-030 Roland Marchand 16,200 304 Clift Street-House 0520-031 Nanc Ra mer 19,251 306 Clift Street-House 0520-032 Jack Jones 23,521 308 Clift Street-Vacant 0520-033 CWF 0 310 Clift Street-Vacant 0520-034 CWF 0 312 Clift Street-Vacant 0520-035 David Owen 2,100 314 Clift Street-Vacant 0520-036 David Owen 2,520 400 Clift Street-House 0520-037 Jack Jones 6,864 402 Clift Street-Vacant 0520-038 Jack Jones 1,680 406 Clift Street-House 0520-040 Rand Lee 10,000 408 Clift Street-House 0520-041 James Simmons 6,475 410 Clift Street-Vacant 0520-042 CWF 0 412 Clift Street-Vacant 0520-043 CWF 0 414 Clift Street-Vacant 0520-044 CWF 0 416-420 Clift Street-Also listed 0520-045 Robert J. and Betty 43,000 as 1712 5 Street Gara es Brown Total $171,291 Probable sale price increased b 15% Total Land Ac uisition Cost $196,985 Schedule for Acquisition. Acquire corner building 2006 Acquire vacant lots 2006 ` Acquire 7 houses 2006 2007 2008 C. Cemetery Development Proposal. Map attached showing fencing, roads, space and block arrangement, and landscaping. D. Cost estimate for construction. En ineerin & Surve in 40 hours 60 $2,400 7 structure removals Demo cost is $3.25/sq. $80,000 ft. and $6.50 /sq. ft. for asbestos. Site clearin $25,000 Fillin and radin $25,000 Concrete Road 1,000' x 25' 4 100,000 Irri ation 2 acres 5,000 10,000 Plantings on borders 400 trees & 500shrubs 45,000 50 Si ns 2 si ns 3,000 Decorative fencin 1,200 t.f. 20 24,000 Total Construction $314,400.00 Total Land Acquisition and $511,385 Construction E. Estimated effect on reducing tax subsidy to the cemetery budget. 1. Maximum revenue in expansion area. Grave Sales Total number of single spaces is 516 @ 850 = $438,600 Total number of two space lots is 884 @ 1,990 =$1,759,160 $2,197,760 Service Fees 2,284 spaces @ 800 = $1,827,200 TOTAL $4, 024, 960 2. Estimated annual maintenance expense. Annual capital debt retirement cost $50,800 (20 years) 1,000 Man hours per year @ 9= $9,000 Equipment $5,000 Suppiies, fuel, and miscellaneous $3,000 TOTAL $67,800 3. Annual revenue estimate. Space sales (32 year life expectancy until sold out) 20 single @ 850 = $17,000 25 two space lots @ 1,990 =$49,750 Service fees (50 years) 10 @ 800 = $8,000 TOTAL $74,750 4. Perpetual Fund balance is $683,199.49 as of October, 2005. 5. Financial Plan for Cemetery Operation Self Support. Financial Plan for Cemetery Operation Self Support Year Expense Revenue Revenue Revenue Tax Perpetual Perpetual Perpetual @ 2% Interment Riverside Riverside Subsidy Fund Fund Fund Fees Expansion Expansion Interest Grave Grave Interment @ 2% Sales Sales Fees Revenue 2005 206,955 70,000 0 136,955 683,200 13,664 56,000 2006 200,000 70,000 0 0 130,000 747,864 14,664 50,000 2007 200,000 70,000 0 0 130,000 818,921 16,057 55,000 2008 204,000 75,000 0 0 129,000 893,439 17,518 57,000 2009 208,080 85,000 65,000 8,000 50,080 972,508 19,069 60,000 2010 212,242 87,000 68,000 8,000 49,242 1,055,198 20,690 62,000 2011 216,487 90,000 70,000 9,000 47,487 1,142,602 22,404 65,000 2012 220,817 93,000 73,000 9,000 45,817 1,236,854 24,252 70,000 2013 225,233 95,000 75,000 10,000 45,233 1,336,051 26,197 73,000 2014 229,738 97,000 78,000 10,000 44,738 1,439,272 28,221 75,000 2015 234,333 105,000 80,000 11,000 38,333 1,549,657 30,385 80,000 2016 239,020 105,000 83,000 12,000 39,020 1,665,310 32,653 83,000 2017 243,800 110,000 85,000 13,000 35,800 1,785,316 35,006 85,000 2018 248,676 110,000 90,000 13,000 35,676 1,912,822 37,506 90,000 2019 253,650 115,000 95,000 15,000 28,650 2,045,938 40,116 93,000 2020 258,723 120,000 100,000 17,000 21,723 2,183,757 42,819 95,000 2021 263,897 123,000 105,000 20,000 15,897 2,326,372 45,615 97,000 2022 269,175 125,000 110,000 20,000 14,175 2,474,899 48,527 100,000 2023 274,559 128,000 115,000 22,000 9,559 2,629,457 51,558 103,000 2024 280,050 132,000 118,000 25,000 5,050 2,789,146 54,689 105,000 2025 285,651 136,000 123,000 27,000 -349 2,957,129 57,983 110,000 ���