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HomeMy WebLinkAbout475_Amend Part 11 Ch 2_Cemetery Care Fund PercentageTULSA COUNTY CLERK - JOAN HASTINGS DOC # 94038855 FEE 0.00 RCPT 23415 04/04/94 14:27:03 PGS 2 B/P 5610/2460 -2461 CITY OF OWASSO, OKLAHOMA ORDINANCE NUMBER 475 AN ORDINANCE AMENDING PART 11, PARKS, RECREATION AND CULTURAL AFFAIRS, CHAPTER 2, CEMETERY, SECTION 11 -206, CEMETERY CARE FUND; PURCHASE OF LANDS; INVESTMENT OF FUNDS, OF THE CODE OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, REDUCING FROM TWENTY -FIVE PERCENT (25%) TO TWELVE AND ONE-HALF PERCENT (12.5 %) THE AMOUNT TO BE SEGREGATED AND SET ASIDE FROM ALL MONIES RECEIVED FROM SALE OF LOTS AND INTERMENTS IN THE CEMETERY CARE FUND, DECLARING AN EFFECTIVE DATE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT: Section One: Part 11, Parks, Recreation and Cultural Affairs, Chapter 2, Cemetery, Section 11 -206, Cemetery Care Fund; Purchase of Lands; Investment of Funds, of the Code of Ordinances of the City of Owasso, Oklahoma, shall be amended in the following respects, to -wit: A. In all cemeteries owned by the city where lots are old or charges made for interments, not less than twelve and one -half percent (12.5%) of all meneys, monies received from the sale of lots and interments shall be segregated and set aside as a cemetery care fund. B. The cemetery are fund shall be expended in purchasing lands for cemeteries and for making capital improvements when necessary. The balance of the fund may be invested by the City Council in the manner provided in Section 348.1 of Title 62 of the Oklahoma Statutes for investment of municipal funds.. C. Only the interest from the investments shall be used in improving, caring for and embellishing the lots, walks, drives, parks and other necessary improvements on such cemeteries. Section Two: This ordinance shall, upon passage, become effective thirty (30) days from the date of first publication as provided by law. DATED this 4th day of January, 1994. CITY OF OWASSO, OKLAHOMA By: Bob Randolph, Mayor ATTEST: Sherry Bishop, City Clerk APPROVED AS TO FORM: Ronald D Cates, City Attorney Adfidavit Of Publication STATE OF OIKLAHOMA, TULSA COUNTY, ss.- Bill R. Retherford, oflawfz,,! age, being d-Laly sworn and authorized, says that he is the publisher of the OWASSO REPORTER -1 a weekly Published In The Owasso Repwerowasso, Tuba County, OF OWASSO, OKLAHOMA CITY OF OWASSO, OKLAHOMA ORDINANCE NUMBER 475 AN ORDINANCE AMENDING PART 11, PARKS, RECREATION AND CULTURAL AFFAIRS, CHAPTER 2, CEMETERY, SECTION 11 -206, CEMETERY CARE FUND; PURCHASE OF LANDS; INVESTMENT OF FUNDS, OF THE CODE OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, REDUCING FROM TWENTY -FIVE PERCENT (25%) TO TWELVE AND ONE-HALF PERCENT (12.5 %) THE AMOUNT TO BE SEGREGATED AND SET ASIDE FROM ALL MONIES RECEIVED FROM SALE OF LOTS AND INTERMENTS IN THE CEMETERY CARE FUND, DECLARING AN EFFECTIVE DATE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT: Section One: Part 11, Parks, Recreation and Cultural Affairs, Chapter 2, Cemetery, Section 11 -206, Cemetery Care Fund; Purchase of Lands; Investment of Funds, of the Code of Ordinances of the City of Owasso, Oklahoma, shall be amended in the following respects, to -wit: A. In all cemeteries owned by the city where lots are old or charges made for interments, not less than twelve and one -half percent (12.5%) of all meneys, monies received from the sale of lots and interments shall be segregated and set aside as a cemetery care fund. B. The cemetery are fund shall be expended in purchasing lands for cemeteries and for making capital improvements when necessary. The balance of the fund may be invested by the City Council in the manner provided in Section 348.1 of Title 62 of the Oklahoma Statutes for investment of municipal funds.. C. Only the interest from the investments shall be used in improving, caring for and embellishing the lots, walks, drives, parks and other necessary improvements on such cemeteries. Section Two: This ordinance shall, upon passage, become effective thirty (30) days from the date of first publication as provided by law. DATED this 4th day of January, 1994. CITY OF OWASSO, OKLAHOMA By: Bob Randolph, Mayor ATTEST: Sherry Bishop, City Clerk APPROVED AS TO FORM: Ronald D Cates, City Attorney MEMORANDUM TO: HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: SHERRY BISHOP FINANCE DIRECTOR SUBJECT: ORDINANCE #475 CEMETERY CARE FUND TRANSFER PERCENTAGE DATE: December 30, 1993 BACKGROUND: On December 7, 1993, Council approved a policy change and directed staff to prepare an ordinance relating to the transfer of a percentage of revenue from the general fund to the cemetery care fund. By state statute and city ordinance, a percentage of all monies collected from cemetery lot sales and cemetery interment fees must be set aside in the cemetery care fund. Recent legislation revised the state statute percentage from 25 % to 12.5 %. Ordinance #475 would make the same revision in the city code of ordinances. RECOMMENDATION: Staff recommends Council approval of Ordinance #475, an ordinance reducing the required transfer into the cemetery care fund from 25% of all revenues collected for lot sales and interments to 12.5% of such revenues. ATTACHMENTS: 1. Ordinance #475 2. Memorandum from Mr. Ray dated December 1, 1993 MEMORANDUM TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: RODNEY J RAY CITY MANAGER SUBJECT: REQUEST TO REDUCE TRANSFER TO CEMETERY CARE FUND DATE: December 1, 1993 BACKGROUND: Title 110. S., Section 26 -109, requires that "In all municipally owned cemeteries where lots are sold or charges made for interments, not less that 12.5% of all monies received from the sale of lots and interments shall be segregated and set aside as a permanent fund to be known as the w mom, "Cemetery Care Fund" .see attachment for full statute text) i t 11 the ieeid transfer vyH'gf 1 °innts rciivclx However, the 1993 legislature passed HB 1522 which reduced that required transfer from the original 25% to the current 12.5 %. The November 16th issue of the City Manager's Report contained a memorandum from Ms Bishop (memorandum dated 10/29/93) outlining the 1993 legislative changes relating to the percentage of cemetery revenue required to be placed in the Cemetery Care Fund. The purpose of this agenda item is to propose a change in city policy that would reduce the percentage of money transferred to that fund. Such a reduction is now allowed because of the changes referred to above. The purpose of the Cemetery Care Fund is to require that cities make some arrangements for the long term maintenance and expansion of cemetery facilities. Allowable uses of the funds include the purchase of land and capital improvements for the cemetery. As Ms Bishop has noted in her memorandum (see attached), Owasso's Cemetery Care Fund has a $93,000 cash balance and no long term expansion plans. Therefore, she has recommended that the percentage of monies transferred to the Cemetery Care Fund be reduced to the allowable 12.5%. Based on current budget projections, such a policy change would reduce the total annual transfer from $7750 to $3875. Memorandum Cemetery Care Fund December 1, 1993 Page 2 NOTES & COMMENTS: 1. The revised state law does not prohibit the continued transfer of 25 % should the council desire to retain that policy. 2. The staff is of the opinion that the long term maintenance needs for the existing cemetery can be met with the existing cash balance and an ongoing 12.5 % transfer. The reduction in the amount transferred should not have a significant impact on the operation or maintenance of the facility. 3. Please note that the most recent cemetery study indicates that, at current rates of lot sales and interments, the existing cemetery will have lots for sale for 6.82 more years (until 1999 +) and will conduct interments for another 50.85 years (until 2043). Thus, it is anticipated that revenue will be stable through 1999. Thereafter, there will be a decrease in revenue due to the fact that there will be no lot sales (lot sales make up 65 % of cemetery revenue). 4. It is anticipated that the city will not expand its current cemetery operation or size and will instead rely upon the private sector to meet the citizen demand for cemetery space in the future years. Please note that such opinion is a staff assumption based on discussions conducted over the past six years with various councilors and private sector providers. A change in that assumption would require long term planning and a major commitment of funds, as well as a continuing subsidy for the existing cemetery. RECOMMENDATION: The staff recommends Council approval of a change in the policy relating to the transfer of a percentage of the monies collected from cemetery lot sales and interments and that the staff be directed to prepare an ordinance reducing such transfer to the Cemetery Care Fund from 25% to 12.5 %. ATTACHMENTS: 1. Memorandum from Ms Bishop 2. Title 11, O.S., Article 26 (cemeteries)