Consideration and Adoption of Ordinance No. 2015-19:  An ordinance of the City Council of the City of Flagstaff, amending the Flagstaff City Code, Section 3-10-001-0007 Cemetery to increase Cemetery fees by 10%. (Cemetery fee increase)

At the April 22, 2015 Council Budget Retreat, the Council expressed support to increase Cemetery fees by 10%. This change would bring the 66% cost recovery to a 73% cost recovery based on the cost established in the City 2009 User Fee Study. The City has provided the required 60 day notification on the City website of this potential fee increase. Staff proposes a December 1, 2015 effective date.

The City of Flagstaff receives approximately $130,000 per year in Cemetery fees.  The proposed fee increase is estimated to generate an additional $13,000 per year in revenue for the General Fund.  

Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics

Yes, Cemetery fees were increased in August of 2009 after Council direction. This was also discussed at the February 2015 and April 2015 budget advances by Council.

 

1) Approve the fee increase to set cost recovery at 73% based on the 2009 User Fee Study and generate an estimated $13,000 new revenue to the General Fund.
2) Do not approve the fee increase leaving cost recovery at 66% based on the 2009 User Fee Study. This option will lower the future recurring revenues in the General Fund and will be adjusted in the fiscal year 2017 budget process. 

The City owns and operates Citizens Cemetery.   The City charges user fees to help pay for costs related to use of the Cemetery.  As part of the City of Flagstaff annual budget process, certain user fees are brought forward to Council for consideration to increase. For FY2016, City staff provided information to Council on the Cemetery fees.

In 2009, the City conducted a user fee study of services provided at Citizens Cemetery. At that time fees were adjusted based on actual costs to provide services. Fees were adjusted to bring the cost recovery to 66%. Historically fees have been charged differently between residents and non-residents. The fees that were adjusted were addressed in the ordinance based on the User Fee study in 2009.  In this current fee structure, we addressed both resident and non-resident fees.   

At the April 22, 2015 City Council Budget retreat, the Council reviewed several user fees. One staff proposal was to consider increasing the Cemetery fees from a 66% recovery to 73% recovery based on the 2009 City of Flagstaff user fee study. This recovery increase results in an approximate 10% increase to existing fees. It is estimated this will generate an additional $13,000 per year in revenue that will be deposited into the General Fund.

At the February Budget Advance there were two Councilmembers in full support and two Councilmembers providing tentative support.  The item was brought before Council again at the April Budget Advance and the majority agreed to impose a fee increase to help fund ongoing expenditures for the fiscal year 2016 budget.  City staff posted the statutorily required 60-day notice on the City website and stated this fee increase would be considered at the October 6, 2015 Council meeting. Staff is recommending that it become effective on December 1, 2015.

The estimated new revenue of $13,000 has been included in the total ongoing resources used to balance the FY2016 City of Flagstaff budget. If this were not approved, expenditures of $13,000 would have to be reduced in the General Fund. Should Council decide not to increase the fees for the Cemetery, the ongoing revenue source will be adjusted with the fiscal year 2017 budget. 

Consult
The public has been notified through the website post that the City is considering this fee increase.  The public will have the opportunity to provide feedback to the Council as the proposed Ordinance is considered by Council for approval.