sr-052350-5aDATE: December 30, 1949
T06 City Pfanager
FROPd Director of Public works
SITBJECTa Proposed Cemetery Expansion
PURPOSE
This report has been prepared pursuant to the informal request of the
City Cauneil that a study be made to determine the economics and feasibility of
expanding the Yloodlawn Cemetery.
SU .AR%
Preliminary investigations indicate that it would be sound economically
and is feasible to consider expansion of the Cemetery. Three possible plans were
coasidarad as followsa
a. Plan 1. baintenance of present Cemetery .without expansion and
the addition of money to the Perpetual Care Fund sufi'icient to
be self-supporting after 30 years.
b. Plan 2. Expansion of Cemetery to include area from Delaware
-Avenue to 'iichigan Avenue batv~een 14th Court and 16th Street.
This plan would extend the life of the Cemetery approximately
18 years® This plan also requires the addition of certain"
monies to the Perpetual Care Fund to be self-supporting after
30 years.
e. Plan 3. Expansion of Cemetery to include area from Delaware
Avenue to Phi chigan Avenue betareen 14th Court and 17th Street.
T'nis plan would extend the life of the Cemetery approximately
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30 years. The Perpetual Cars Fund would be increased after 30
years operation, to be self-supporting from Cemetery revenues
and would result in no expense to the taxpayer
Since Plan 3 extends the life of the Cemetery the longest period of
time, the cost of each of the three plans has been computed to 30 years hence in
order to make a proper comparison of each plan.
The total net cost to the City for oath plan at the and of 30 years,
was found to be as follows:
Plan 1 - ~" 653,904
Plan 2 - ~ 231,101
Plan 3 - None
From the foregoing it can be seen that the studies reveal, with the
assumptions made, that the City would reduce its losses, which would result if no
expansion is made, by approximately X422,603 if the Cemetery is sxpandad as pro-
posed under Plan 2. Plan 3 would result in a break even project and compared with
Plan 1, would save the City X653,704 at the end of 30 years.
Tha following appendices era a part of this report:
Appendix A - Yap showing relation of present Ptoodlawn Ceum tery to
expansion proposed under Plan 2.
Appendix B - ~fap shoring relation of present l7oodlawn Cemetery to
expansion proaosad under Plan 3.
Appendix C - tiap showing details of expansion proposed under Plan 2.
Appendix D - P3ap showing details of expansion proposed under Plan 3.
Appendix E - Comparison between three proposed plans of Cemetery
expansion,
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Appendix F - Detailed summary of estimated annual expenses and
revenues for Plan 2,
Appendix G - Da tailed summary of estimated annual expenses and
revenues for Plan 3.
Appendix H - Table showing the somber of interments per month at
~Ioodlawn Cemetery flrom 1933 to 1949.
Appendix I - Preliminary Cost Estimate for Cemetery Expansion -
Plan Z.
Appendix J - Preliminary Cost Estimate for Cemetery Expansion -
Plan 3.
dppendax % - Cost for interments at other Cemeteries.
Appendix L -Assessed valuations and taxes on lots proposed to ba
aoquired.
TEXT OF REPORT
General History
Woadlawn Cemetery was acquired by the City of Santa s?onica in 1874. The
total capacity of the present Cemetery is 21,538 graves of which 14,547 era-occupied,
4,363 era sold, 2,200 are for sale to fdasons, and 428 era remaining for sale to the
public. The closing and vacating of a portion of Palm Avenue will add 270 to this
number making a total of 698 for sale to the public. At the present rate of use,
this number of graves will meat the need for aporoximatsly two years but with very
limited selection of graves to the publio.
The Elks and Odd Fellows own their Cemetery plots. 1Ghen the fldd Fellows
bought their land they also paid for perpetual care; whereas, the Elks pay for
perpetual care as the graves are used.
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The ~6asonic plot compriaea approximately l~ acres and contains approxi-
mately 2,500 gran®s. This land is held in trust by the City and is being sold at
the rate of approximately 30 graves per year. The perpetual care charge is collect-
ed as the graves .are sold.
The City has sold 4,363 preneed graves for future use which may require
that the Cemetery remain open until these graves are occupied. The use of the
premed graves will extend over a period of time difficult to estimate. The
present rate of use of prenesd graves is approximately 200 per year.
The total amount of the Perpetual Care Fund on September 1, 1949 was
X183'924 which earns X4,598 per year.
It is estimated that four men aan maintain the present Cemetery in
perpetuity with a budget of X16,000. This allows for 1 superintendent, 1 water man'
1 mower operator, and 1 laborer, water X100 per month, and X1000 per year for
msintenanca and repair.
The present operating expenses of the Cemetery are just met with current
revenues. Beginning next year, it appears that, due to reduced sale of graves,
there will be a net operating loss of approximately X5,000 per year and increasing
in about three years to a loss of approximately X11,402 per year 016,000 budget
less X4,598 Perpetual Care Fund interest). This annual operating loss of X11,402
will continue in perpetuity subject only to increases or docreases in future cost
of labor and material. The revenue derived for opening and closing and sale of
concrete boxes for approximately 200 prenead graves per year, is $9,000, which
revenue is adequate to meet the added expense to the City for these burials.
9ppendix A shows the number of interments per month at S9oodlawn Cemetery
from 1933 to 1549. It is believed that interments during the last few years would
-have been oonsiderably more if the City had more of a selection of graves. It will
be noted that the analysis shown on Appendix F and Appendix G anticipates an
interment rate varying from 600 to 500 per year. This is believed aonservative
when population increase and selection of graves is consides•ed. At the present
time, many potential customers do not buy graves at :"7oodlawn be eau se of the poor
selection.
PLAN 1
Under Plan 1, no expansion of the Cemetery would be undertaken. Under
this plan, the City would operate at an annual loss of approximately X11,402
016,000 budget lass X4,598 interest on Perpetual Care Fund}> It would ba necessary
to invest X456,080 in the Perpetual Care Fund to earn the deficiency of X11,402
needed to maintain the present Cemetery in perpetuity. If this sum were paid into
the Perpetual Care Fund over a 30 year period at an interest earning ra'~s of 2~,
.the cost to the City would be X10,388.30 per year or X311,644. During this ssa~
30 years, the City would also pay the X11,402 per year operating loss or X342,060.
The sum of the amount paid into the Perpetual Care Fund plus the operating loss,
would amount to $653,704 a~t~end of 30 yrears> This amount represents the total
cost to the City for Plan 1 at the end of 30 years and since the Perpe teal Care Fund
would amount to X640,000, at that time, it would earn $16,000 per year at 2~ inter-
est, which would place the Cemetery an a self-supporting basis thereafter.
PLAAt 2
Plan 2 proposes to expand-the present Cemetery by acquiring that property
extending from Delavrare Avenue to aSichigan Avenue and from 14th Court to 16th Street.
This area is in the R-2 zone. There are 30 lots comprising 5.16 acres in this area.
Twenty of the lots are improved. 10,400 graves would be added which would extend
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the life of the Cemetery by approximately 18 years. The land and improvements,
less salvage value, are estimated to cost :x132,000 and capital, improvements
x42,800 making a total first cost of~'174,800. See Appendix I for details.
Under Plan 2, grave lots era priced at an average _of x3.15 par square foot
for the land and x1.60 per square foot for deposit in the Perpetual Care :'und. It
is necessary to explain, at this point, that these prices were used in the Plan 2
analysis in order to compare Plan 2 and Plan 3 on the same basis. The reason for
using these particular rates is explained on page ~ under Plan 3. ReferrinP to
Appendix F, it will be seen that the plan results in an operating loss of 815,721
in 18 years, and since the cost of all plans investigated under this report are
computed to 30 years .hence, there must be added to this an additional loss, because
of insufficient Perpetual Care Funds, a€ •5,476 par year for 12 years or x65,712
making a total operating loss after 30 years of X81,433. See Appendix E. Referring
to Appendix E, it will be seen that it-was possible in 18 years to increase the
Perpetual Cara F1~nd from x183,924 to x540,961 and the interest derived therefrom
from X4,598 to x13,524. This amount, however, lacks x5;476 of being enough to
maintain the expanded Cemetery perpetually. Since $760,000 is required in the
Perpetual Care F7znd 30 years 'r_ence for aerpetual Dare, it is necessary to deposit
an additional x219,029 by the end of the 30 year period. '?iith an interest earning
rate of 2~ , this can be done by depositing +x149,668 in said fund in 30 equal annual
payments of x4,988.95 each. Hence Plan 2 results in a total cost to the City at
the end of 30 years of the ,`81,433 operating loss plus the additional $149,668
deposited in the Perpetual Care Fund or a total cost of x231,101.
Plan 2 was investigated further to determine how much the price to be
charged for land and the amount per square foot to ba deposited in the Perpetual
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Care Fund would have to ba increased to operate a break even project for 18 ;ears
and no cast to the City thereafter. It was found that the price to be charged for
grave lots would have to be increased from :;3.15 per square foot to X3.22 per square
foot and the perpetual care charge would be increased from X1.60 per square foot to
X2.40 per square foot. The prices now charged in Pdoodlarm range from X1,00 to X3.00
per square foot for land and X1.00 par square foot for perpetual care. To increase
the price of land and perpetual care to this extent, would increase the total test
of an adult interment, including perpetual care, from X159, proposed under Plan 3,
to X180, which may be excessive and could result in a loss of busirass because of
high prices. See Appendix K for charges made by other cemeteries for adult inter-
ments.
PLAN 3
This plan proposes the expansion of the Cemetery from Delaware Avenue to
4ichigan Avenue and from 14th Court to 17th Street. This property is in the R-2
zone. There are 50 lots comprising 8.6 acres in this area, 38 of these lots are
improved. 17,000 graves would be edded which would extend the life of the Cemetery
by approximately 30 years. The land and improvements, less salvage value, are
estimated to cost X216,000 and capital improvements X66,000 making a total. first
cost of X282,000. See Appendix J for details.
Under Plan 3, the price per square foot for graves and the price per
square foot to be charged for perpetual care, was set at a value that would result
in a break even venture at the end of 30 years. These prices are x'3.15 nar square
foot for graves and v1 .60 per square foot for perpetual care which results in s
total cost of X159 for an adult interment, including the perpetual ea re charge. See
Appendix K for charges made by other cemeteries.
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COP~TCLFJ9IOid5
It is not believed sound economy to consider a plan for expansion of
TToodlawn Cemetery that would result in an operating loss to the City paid for
through taxation, or that did not accumulate sufficient funds at the end of the
operating life of the Cemetery to pay for maintenance in perpetuity. Plan 3,
with the various assumptions and estimates made, is the only plan of the 3 investi-
gated that meets this requirement, unless Flan 2 is to be considered using prices
of X3.22 per square foot for land and X2.40 per square foot for perpetual care.
It should ba noted that if Plan Z d°Jera adopted these prices be cone the minimum
prices and could not be lowered without some support through taxation; whereas,
the rates proposed under Plan 3 could be increased if operating experience proved
this to be desirable.
The assumption and estimates made under Plan 3 era recapped as foilosese
a, Land acquisition costs ~ 216 000
s
b. Capital improvement costs 66,000
c. Rata of use of graves par year 600 to 500
d. Interest rate for borrowed money 3j.
e. Interest rate for loaned money
(perpetual care fund)
f. Average nrico to be charged per
square foot for graves
g. Price to be charged per square foot
for perpetual care
h, Annual budget expanses first 30 years
i. Annual budget expense after 30 years,
excluding pre need interments
s
2 ~'~
~3 3.15
$n 1 .60
X65,000 to X60,000
19,000
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It is believed that these assumptions .and estimates are cons®rvative.
It is desired to point out that in event graves were sold at a faster
rate than estimated, it would be necessary to hold in trust the resulting annual
net inoore to be used to meet operating losses in the latter part of the 30 year
period of operation of the expanded Cemetery.
Other plans could be investigated taking in a larger area; however, this
erould result in complications caused by vacating a portion of 17th Street or hliehigan
Avenus, both of which are through streets.
Plan 3 requires the borroxring of X282,000 now, which, with the assumptions
made in this report, would be paid back with interest at 3j. in 30 years without any
cost to the taxpayers.
These funds could be obtained through general obligation bonds. The
legality of issuing revenue bonds for such purpose is questionable and, if legal,
the bonds may be difficult to market. The officer of one firm contacted stated
that he doubts whether they would bid on such bonds and strongly recommended that
general obligation bonds be considered.
It is the opinion of-the City Attorney that under some circumstances
perpetual care funds may be invested in real estate. Zn event these funds or any
portion were used toward financing the first cost of Cemetery expansion, such use
would not affect the analysis made under this report.
If the City Council is to consider tha expansion of 'vYoodla-a~n Cemetery, it
is recommended that the preliminary estimate of the cost of land acquisition be
verified by a qualified appraiser before proceeding.
P T ICE N,. SING,
D rector of Public l~T k
and City Engineer
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