Antelope Valley Cemetery District, Artesia Cemetery District, Downey Cemetery District, Little Lake Cemetery District, and Wilmington Cemetery District Municipal Service Review (May 2017)

Municipal Service Review Cemetery Districts Adopted May 10, 2017 Chapter One: LAFCO Background Municipal Boundaries The State of California possesses the exclusive power to regulate boundary changes. Cities and special districts do not have the right to change their own boundaries without State approval. The California Constitution (Article XI, Section 2.a) requires the Legislature to “prescribe [a] uniform procedure for city formation and provide for city powers.” The Legislature also has the authority to create, dissolve, or change the governing jurisdiction of special districts because they receive their powers only through State statutes. The Legislature has created a “uniform process” for boundary changes for cities and special districts in the Cortese Knox-Hertzberg Local Government Reorganization Act of 2000 (California Government Code Section 56000 et seq, or “Act”). The Act delegates the Legislature’s boundary powers over cities and special districts to Local Agency Formation Commissions (LAFCOs) established in each county in the State. The Act is the primary law that governs LAFCOs and sets forth the powers and duties of LAFCOs. In addition to the Act, LAFCOs must comply with the following State laws: • California Revenue and Taxation Code Sections 93 and 99. LAFCO considers the revenue and taxation implications of proposals and initiates the property tax negotiation process amongst agencies affected by the proposal. • California Environmental Quality Act (CEQA) (California Public Resources Code Section 21000 et seq) and the related CEQA Guidelines (Title 14, California Code or Regulations Section 15000 et seq). Applications before LAFCO are considered to be “projects” under CEQA, which requires that potential environmental impacts be analyzed prior to Commission action. • Ralph M. Brown Act (California Government Code Section 54950 et seq). Commonly known as the State’s “open meeting law,” the Brown Act insures that the public has adequate opportunity to participate in the LAFCO process. • Political Reform Act (California Government Code Section 81000 et seq). Commissioners, some LAFCO staff, and legal counsel are subject to the Political Reform Act, which requires the filing of annual reports of economic interests. Cemetery Districts MSR Page 2 of 57 What are LAFCO’s? LAFCOs are public agencies with county-wide jurisdiction for the county in which they are located. LAFCOs oversee changes to local government boundaries involving the formation and expansion of cities and special districts. In creating LAFCOs, the Legislature established four priorities: encourage orderly growth and development, promote the logical formation and determination of local agency boundaries, discourage urban sprawl, and preserve open space and prime agricultural lands. Created by the State but with local (not State) appointees, each of the 58 counties in the State of California has a LAFCO. Each LAFCO operates independently of other LAFCOs, and each LAFCO has authority only within its corresponding county. While a LAFCO may purchase services from a county (i.e., legal counsel, employee benefits, payroll processing), LAFCO’s are not County agencies. Local Agency Formation Commission for the County of Los Angeles (“LA LAFCO”) LA LAFCO regulates the boundaries of all 88 incorporated cities within the County of Los Angeles. LAFCO regulates most special district boundaries, including, but not limited to: • California water districts • Cemetery districts • Community service districts (“CSDs”) • County service areas (“CSAs”) • County waterworks districts • Fire protection districts • Hospital and health care districts • Irrigation districts • Library districts • Municipal utility districts • Municipal water districts • Reclamation districts • Recreation and parks districts • Resource conservation districts • Sanitation districts • Water replenishment districts LAFCO does not regulate boundaries for the following public agencies: • Air pollution control districts • Bridge, highway, and thoroughfare districts • Community college districts • Community facility districts (aka “Mello-Roos” districts) • Improvement districts • Mutual water companies Cemetery Districts MSR Page 3 of 57 • Private water companies • Redevelopment agencies • School districts • Special assessment districts • Transit and transportation districts LAFCO does not regulate the boundaries of counties. County boundary adjustments are within the purview of the boards of supervisors for the involved counties. State law specifically prohibits LAFCOs from imposing terms and conditions which “directly regulate land use, property development, or subdivision requirements.” In considering applications, however, State law requires that LAFCO take into account existing and proposed land uses, as well as General Plan and zoning designations, when rendering its decisions. The Local Agency Formation Commission for the County of Los Angeles (LA LAFCO, the Commission, or LAFCO) is composed of nine voting members: • Two members of the Los Angeles County Board of Supervisors (appointed by the Los Angeles County Board of Supervisors); • One member of the Los Angeles City Council (appointed by the Los Angeles City Council President); • Two members of city councils who represent the other 87 cities in the county other than the City of Los Angeles (elected by the City Selection Committee); • Two members who represent independent special districts (elected by the Independent Special Districts Selection Committee); • One member who represents the San Fernando Valley (appointed by the Los Angeles County Board of Supervisors); and • One member who represents the general public (elected by the other 8 members). LAFCO also has six alternate members, one for each of the six categories above. The Commission holds its “regular meetings” at 9:00 a.m. on the second Wednesday of each month. The Commission periodically schedules “special meetings” on a date other than the second Wednesday of the month. Commission meetings are held in Room 381B of the Kenneth Hahn Hall of Administration, located at 500 West Temple Street in downtown Los Angeles. Public notice, including the Commission agenda, is posted at the Commission meeting room and on LAFCO’s web-site (www.lalafco.org). The Commission appoints an Executive Officer and Deputy Executive Officer. A small staff reports to the Executive Officer and Deputy Executive Officer. LAFCO’s office is located at 80 South Lake (Suite 870) in the City of Pasadena. The office is open Monday through Thursday from 7:00 a.m. to 5:00 p.m. The office is closed on Fridays. Cemetery Districts MSR Page 4 of 57 What are LAFCO’s responsibilities? LAFCO oversees changes to local government boundaries involving the formation and expansion of cities and special districts. This includes annexations and detachments of territory to and/or from cities and special districts; incorporations of new cities; formations of new special districts; consolidations of cities or special districts; mergers of special districts with cities; and dissolutions of existing special districts. LAFCO also approves or disapproves proposals from cities and special districts to provide municipal services outside their jurisdictional boundaries (these public agencies can provide services outside of their boundaries under very limited circumstances). An important tool used in implementing the Act is the adoption of a Sphere of Influence (SOI) for a jurisdiction. An SOI is defined by Government Code Section 56425 as “…a plan for the probable physical boundary and service area of a local agency.” An SOI represents an area adjacent to a city or special district where a jurisdiction might be reasonably expected to provide services over the next twenty (20) years. The SOI is generally the territory within which a city or special district is expected to annex. LAFCO determines an initial SOI for each city and special district in the County. The Commission is also empowered to amend and update SOIs. All jurisdictional changes, such as incorporations, annexations, and detachments, must be consistent with the affected agency’s Sphere of Influence, with limited exceptions. Municipal Service Reviews State law also mandates that LAFCO prepares Municipal Service Reviews (MSRs). An MSR is a comprehensive analysis of the municipal services, including an evaluation of existing and future service conditions, provided in a particular region, city, or special district. Related to the preparation of MSRs, and pursuant to State Law, LAFCOs must review and update SOIs “every five years, as necessary.” The Commission adopted MSRs for all cities and special districts in the County prior to the January 1, 2008 deadline (Round One). Some LAFCOs prepare MSRs for each city and special district in their region every five years. Other LAFCOs do not prepare MSRs proactively; rather, when a city, special district, or petitioner wants to expand the boundaries of an SOI, the LAFCO requires that the applicant pay for the preparation of an MSR in advance of the SOI determination. Most LAFCOs take an intermediate approach, above, preparing MSRs for a select group of cities and special districts every five years. This is the approach taken by the Commission (LA LAFCO) at its meeting of March 9, 2011. Staff is currently preparing MSR’s for 9 cities and 14 special districts (Round Two). Staff has completed MSRs for four cities (Compton, Cudahy, Gardena, and Santa Clarita) and three special districts (Huntington Municipal Water District, Palmdale Water District, and Sativa County Water District), all of which have been adopted by the Commission. In preparing MSRs, LAFCOs are required to make seven determinations: • Growth and population projections for the affected area; Cemetery Districts MSR Page 5 of 57 • The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to a city or district’s SOI; • Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs of deficiencies; • Financial ability of agencies to provide services; • Status of, and opportunities for, shared facilities; • Accountability for community service needs, including governmental structure and operational efficiencies; and • Any other matter related to effective or efficient service delivery. Although State law requires the preparation of MSRs, the State does not provide funding to LAFCOs to perform this work. Some MSRs are prepared utilized existing LAFCO staff; in other instances, LAFCO retains a consultant. When consultants are required, LAFCOs utilize a portion of its existing annual budget; additionally, LAFCO may request voluntary contributions from the involved city or special district. (Report continues on Page 6) (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 6 of 57 Chapter Two: Cemetery District Enabling Act (Health & Safety Code Sections 9000 – 9093) The Legislature authorized the creation of public cemetery districts in 1909 to assume responsibility for the ownership, improvement, expansion, and operation of cemeteries, and to meet the cultural, economic, religious, and social needs of California’s diverse communities. While interment customs and practices have changed since the creation of public cemetery districts, communities nevertheless continue to need the means to own, improve, expand, and operate public cemeteries that provide respectful and cost-effective interments. Public cemeteries provide a cost benefit to the residents who live within the boundaries of the district, as public cemeteries tend to be less expensive than private cemeteries. Public cemeteries have limited budgets, are sensitive to raise rates, and are reluctant to have benefit assessments. Public cemeteries are not a one-stop shop for interment services, as public cemeteries are limited within the constraints of the Cemetery District Enabling Act. Governing Body The governing body, which is established by law to administer the operation of a public cemetery district, is composed of three (3) or five (5) trustees, as specified in the petition for the formation of the district. These trustees are appointed by the Board(s) of Supervisors to serve four-year terms. However, the governing body may instead be composed of the board of supervisors, by its resolution, after public hearings are held. Cemetery districts are independent districts with independently elected boards or appointed boards whose directors serve fixed terms, unlike dependent districts that are governed by either a city council or county board of supervisors. If formed pursuant to a consolidation or reorganization of two or more districts into a single district, LAFCO may change the number of directors of the consolidated or reorganized district provided that the resulting number of directors shall be an odd number and not less than five (5) directors. No maximum number of directors is specified. As terms expire, the number of directors shall be reduced through attrition until the number of directors is in conformance with the district’s principal act or larger number specified by LAFCO. Functions The specified powers that the trustee’s may exercise are to own, operate, improve, and maintain a cemetery by the district and provide interment services to residents who live within the boundaries of the district. A cemetery district may also acquire, construct, improve, maintain, or repair a mausoleum or columbarium for the placement of cremated remains. A cemetery district may sell accessories and replacement objects that are necessary or convenient to interments, including but not limited to burial vaults, liners, and flower vases. A cemetery district may also charge a service fee for the placement of grave markers, that identify the interred, but is restricted from selling grave markers. Cemetery Districts MSR Page 7 of 57 Cemetery district provides “at-need” (residents who need a plot at the time of death) and “pre- need” (residents who had already paid for a plot for future interment) sales. These public cemeteries are funded primarily by property tax revenues and from services rendered at the time of burial. Many cemetery districts have endowment funds in reserve accounts to fund the regular care and maintenance of a cemetery property, which is primarily funded through the purchase of a grave or cremation niche determined by the minimum amount set by Health & Safety Code Section 8738. With limited space and limited resources, many of the cemetery districts have installed niche cremation walls (a recessed space in a wall or in a columbarium used to place urns containing human remains) to accommodate its customers. A cemetery district’s Board of Trustee’s shall limit interments to: persons who are residents of the district; persons who are former residents of the district and who acquired interment rights while they were residents of the district; persons who pay property taxes on the property located in the district; persons who formerly paid property tax on the property located in the district and who acquired interment rights while they paid those property taxes. Interment rights means the right to use or control the use of a plot, niche, or other space for the interment of human remains. Residents are entitled to burial costs at reduced rates compared to non-residents of the cemetery district who are subject to approval by the Board of Trustees’ and pay a fifteen percent (15%) out-of-district service charge. Public cemeteries are subject to the provisions of the Ralph M. Brown Act, which governs open meetings and local government organizations. Formation The formation process is initiated by petition, signed by not less than twenty-five percent (25%) of the registered voters within the proposed district. The proposal to form a new district may also be made by the adoption of a resolution of application by the legislative body of any county or city that contains property to be included in the district. Prior to circulating petitions, the proponent shall file with the LAFCO Executive Officer a Notice of Intention that includes the name and mailing address of the proponent(s) and a written statement, not to exceed 500 words in length, setting forth the reasons for the proposal. After filing the Notice of Intention, the petition may be circulated for signatures. After the formation proceedings have been initiated, LAFCO must conduct a noticed public hearing. After hearing public testimony, the Commission may either approve, modify, or deny the proposed formation. If it is approved, the Commission must also adopt terms and conditions for the formation, and establish a sphere of influence for the new district. The proposed formation is then scheduled for a protest hearing. At the protest hearing, the proceedings may be terminated if protested by fifty percent (50%) or more of the registered voters residing within the district. If no majority protest exists, the Commission shall either: Cemetery Districts MSR Page 8 of 57 1. Order the formation subject to approval by the voters; or 2. Order the formation subject to approval by the voters of a special tax or by the property owners of a special benefit assessment. With respect to the proposed boundaries of a cemetery district, the following territory may be included upon formation. 1. Incorporated and/or unincorporated territory; 2. Contiguous or non-contiguous territory; and 3. Within one or more counties. Territory within another public cemetery district or another type of special district that provides cemetery services shall not be included in a public cemetery district. Annexation After a district has been formed, the boundaries of the district may be altered and outlying incorporated or unincorporated territory in one or more counties may be annexed into the district. Proceedings are to be initiated pursuant to Section 56000, et seq. of the Government Code. There are five (5) cemetery districts located in the County of Los Angeles: • Antelope Valley Cemetery District (formerly Lancaster Cemetery District); • Artesia Cemetery District; • Downey Cemetery District; • Little Lake Cemetery District; and • Wilmington Cemetery District. (Report continues on Page 9) (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 9 of 57 Chapter Three: Antelope Valley Cemetery District The cemetery district was originally named the “Lancaster Cemetery District”, and was formed on January 31, 1950. The district changed its name from the “Lancaster Cemetery District” to the “Antelope Valley Cemetery District” on June 8, 2016. The Antelope Valley Cemetery District (AVCD) owns and maintains two (2) cemetery properties: Lancaster Cemetery, located in the City of Lancaster, and Del Sur Cemetery, located in the County unincorporated territory of Del Sur. Burials began at the Lancaster Cemetery in the mid-1890s. The actual cemetery was officially founded in 1902 when property owner and businessman Benjamin Carter donated the land (unincorporated territory) to the County of Los Angeles.1 The cemetery property was later incorporated into the City of Lancaster in 1977. The Antelope Valley Cemetery District provides ground maintenance to the Del Sur Cemetery, a historic cemetery that dates to the 1880s and no burials take place on-site. The purpose of the AVCD is to provide the public with a cemetery within the constraints of the Cemetery District Enabling Act. The AVCD provides residents with “at-need” and “pre-need” sales, endowment care, liners or vaults, cremation sites, burial rights, opening and closing of graves, and setting of grave markers that identify the interred. The population within the boundaries of the AVCD in 2010 was 202,574.2 The AVCD is 697.60 square miles in size with a population density of 290 persons per square mile. Antelope Valley Cemetery District and its Coterminous SOI boundary include the entire City of Lancaster, northern portions of the City of Palmdale, and large areas of unincorporated territory. The AVCD boundary is generally located south of Avenue A at the Kern County Line, west of the San Bernardino County Line, north of Avenue N, and east of 320th Street West (see Existing Antelope Valley Cemetery District Sphere of Influence, Exhibit 1, on Page 10). The AVCD is bisected by the Antelope Valley (State Route 14) Freeway. The topography of the AVCD is mostly flat with some small mountains in various locations. (Report continues on Page 10) (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 10 of 57 Exhibit 1 Existing Antelope Valley Cemetery District Sphere of Influence (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 11 of 57 Antelope Valley Cemetery District Discussion and Determinations Government Code Section 56430 requires LAFCO to “conduct a service review of the municipal services” and to “prepare a written statement of its determinations” relative to several factors. This chapter addresses these factors and includes the recommended determinations. Population Projections According to the United States Census Bureau, the 2010 population of the Antelope Valley Cemetery District was 202,574.3 The AVCD consists of a combination of suburban and rural areas. Given the amount of available vacant land, the population within the boundaries of the Antelope Valley Cemetery District is likely to grow significantly over the next twenty (20) years. Determinations: • Antelope Valley Cemetery District consists of a combination of suburban and rural areas. • Given the amount of vacant land, the population within the boundaries of the Antelope Valley Cemetery District is likely to grow significantly over the next twenty (20) years. Disadvantaged Unincorporated Communities Pursuant to the State’s passage of Senate Bill 244, as of January 1, 2012, LAFCOs are required to make determinations regarding Disadvantaged Unincorporated Communities (DUCs) for an Update of a Sphere of Influence. The law defines a DUC as a community with an annual median household income that is less than eighty percent (80%) of the statewide annual median household income. The law also requires that LAFCOs consider “the location and characteristics of any disadvantaged communities within or contiguous to the sphere of influence” when preparing an MSR. There are DUCs spread throughout the existing boundaries of the AVCD, including seven (7) areas that are DUCs (see Existing Antelope Valley Cemetery District Sphere of Influence with DUCs, Exhibit 2, on Page 13). Of the seven (7) areas, four (4) DUCs are surrounded by the City of Lancaster (Area 1, Area 3, Area 4, and Area 5): Area 1 consists of a combination of residential and vacant land; Area 3 consists of vacant land; and Area 4 and Area 5 consist of a combination of vacant and/or agriculture land. The three (3) remaining DUCs are Area 2, Area 6, and Area 7: Area 2 is a developed community that is composed of a part of unincorporated Quartz Hill; Area 6, which consists of vacant/agricultural land surrounded by the City of Palmdale, is owned by the City of Los Angeles/Los Angeles World Airports (LAWA); and Area 7 Cemetery Districts MSR Page 12 of 57 contains a very large DUC to the north of the cities of Lancaster and Palmdale (abutting Kern County) and east of the cities of Lancaster and Palmdale (abutting San Bernardino County); this DUC includes some development adjacent to the two cities, and large swaths of sparsely populated and/or vacant desert territory. The DUCs in Area 6 and Area 7 extend southerly, outside of the AVCD district boundary and its Coterminous SOI and district boundary. In short, the District includes several DUCs within its existing boundaries. In this regard, the District is already serving residents of several DUCs. While there are two DUCs (Area 6 and Area 7), the boundaries of which are bisected by the District’s southern boundary, this is an inadvertent result of the establishment of District boundaries several decades ago and the establishment of DUCs in early 2012 (as a result of passage of SB 244). The District has not filed any proposals to annex new territory since the adoption of SB 244. Within the area that is proposed to be added to the Antelope Valley Cemetery District’s SOI, there are large areas with DUCs located south and east of the City of Palmdale. Determinations: • There are several DUCs within the existing boundaries of the Antelope Valley Cemetery District, and the District is currently serving residents of these DUCs. • The boundaries of two of these DUCs (Area 6 and Area 7) extend outside the District/SOI boundary (see Exhibit 2, on page 13), which is an inadvertent result of the establishment of District boundaries several decades ago and the establishment of DUCs in early 2012. • By its very nature as a cemetery district, the Antelope Valley Cemetery District does not provide three core governmental services: water, wastewater, and structural fire protection. • Within the area that is proposed to be added to the Antelope Valley Cemetery District’s SOI, there are large areas with DUCs located south and east of the City of Palmdale. The proposed SOI expansion facilitates a future annexation (or annexations) which would provide additional services to landowners and residents within this DUC. (Report continues on Page 13) Cemetery Districts MSR Page 13 of 57 Exhibit 2 Existing Antelope Valley Cemetery District Sphere of Influence with DUCs (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 14 of 57 Present and Planned Capacity of Public Facilities The Antelope Valley Cemetery District owns and maintains two (2) cemetery properties: Lancaster Cemetery and Del Sur Cemetery. Lancaster Cemetery The Lancaster Cemetery has 7,483 filed grave sites with a present capacity of 447 open plots available for in-ground burials and in-ground cremations.4 The Lancaster Cemetery property is eleven (11) acres, and it is surrounded by developed land on all sides. There are currently seven (7) acres that are filled burial plots, and four (4) acres available for future burial plots.5 For Fiscal Year 2014-2015, the AVCD conducted 59 burials (37 full body burials and 29 in-ground cremations and cremation niches).6 The AVCD has a 64-niche columbarium. Of the sixty-four (64), thirty-eight (38) niches are available for cremated remains.7 AVCD has adequate space for in-ground burial lots and cremation niches, and can continue to meet the needs of the community for at least the next ten (10) years. District staff indicated that grounds equipment requires replacement and water lines need to be upgraded. Del Sur Cemetery Del Sur Cemetery is on a 10-acre historic cemetery that dates to the 1880s. There is no official record or documentation, but it is estimated that seventeen (17) to sixty (60) individuals are buried at this site. The Antelope Valley Cemetery District was granted a conservation easement of the Del Sur Cemetery by Sustainable Property Holdings, LLC, to preserve the area in its current condition; and to maintain the historical, visual, and educational values of the cemetery property. The Del Sur Cemetery property, “Grant of Conservation Easement”, was recorded with the Los Angeles County Registrar-Recorder/County Clerk on December 23, 2015. The AVCD provides ground maintenance only. No burials take place on-site.8 Determination: • Antelope Valley Cemetery District has adequate space for in-ground burial plots and cremation niches; and can continue to meet the needs of the community for at least the next ten (10) years. Financial Ability of Agencies to Provide Services The AVCD’s financial statement for Fiscal Year 2014-2015 ending June 30, 2015 reflects $650,613 in revenue and $436,355 in expenses with a year-end balance of $214,258.9 Cemetery Districts MSR Page 15 of 57 Over 50% of the AVCD’s burials for Fiscal Year 2014-2015 were “pre-need” that had been paid many years ago and generate little or no new income, yet the services must still be performed.10 For Fiscal Year 2014-2015, twenty-eight percent (28%) of the AVCD’s income was property tax revenue; thirty-one percent (31%) was investment income and charges for service, such as sales of plots, burials fees, and other sales; and forty-one percent (41%) was from one-time non-recurring donations (recycled water system and land transfer).11 The AVCD has no long-term debt.12 The Endowment Fund for Fiscal Year 2014-2015 is $298,120.13 Given that there are 7,483 filled plots and 26 filled niches, $675,290 should be within AVCD’s Endowment Fund, and it is 44% funded. Additional funding is required to meet the minimum amounts set by Health & Safety Code Section 8738. The AVCD receives funding through the Friends of the Lancaster Cemetery, Incorporated, a non-profit organization formed in 2007 to restore and replace headstones and monuments, conduct veterans’ celebrations, and document and record histories of those interred at the cemetery which enhance the historical relevance of the Lancaster Cemetery. AVCD has been struggling for years financially. To increase additional revenues to the AVCD budget, the AVCD filed an application with LAFCO on March 13, 2017 to annex 420,965± acres or 657.75± square miles into the Antelope Valley Cemetery District’s boundary. Should the annexation be approved by the Commission, it will provide additional property tax revenue to the AVCD. Determinations: • Antelope Valley Cemetery District should make an effort to increase the amount of capital in its Endowment Fund. • On-going and long-term financial challenges have not impeded the Antelope Valley Cemetery District’s ability to provide services to its customers. • Antelope Valley Cemetery District filed an application with LAFCO on March 13, 2017 to annex 420,965± acres or 657.75± square miles into the Antelope Valley Cemetery District’s boundary. Should the annexation be approved by the Commission, it will provide additional property tax revenue to the AVCD. (Report continues on Page 16) Cemetery Districts MSR Page 16 of 57 Status of, and Opportunities for, Shared Facilities Due to the nature of the services provided, there are no apparent opportunities to share facilities with other agencies. Determination: • Due to the nature of the services provided, there are no apparent opportunities to share facilities with other agencies. Accountability for Community Service Needs The AVCD is governed by a three-member Board of Trustees who are appointed by the Board of Supervisors. Board members receive no stipends. The Board meets twelve (12) times a year. There is one (1) full-time District Manager, one (1) full-time office assistant, and three (3) full-time in-house groundskeepers.14 The AVCD has digitized information concerning all its filled gravesites, and this information can be accessed by staff through an on-site computer. Although the AVCD has a well-maintained website, agendas and minutes of monthly Board meetings are not readily-available on the AVCD website. Determination: • Antelope Valley Cemetery District representatives should commit to provide more readily-available agendas and minutes of monthly Board meetings in an on-line format. Other Matters The current District Manager, Dayle DeBry, has been with the AVCD for 10 years. She is currently training an office assistant to succeed her when Ms. DeBry eventually retires from the AVCD. AVCD staff has acknowledged that they need to plan for the retirement of a Grounds Supervisor. Determinations: • The District Manager is currently training an office assistant to succeed her when the District Manager eventually retires from the Antelope Valley Cemetery District. • AVCD staff has acknowledged that they need to plan for the retirement of a Grounds Supervisor. Cemetery Districts MSR Page 17 of 57 Antelope Valley Cemetery District SOI Recommendation Antelope Valley Cemetery District SOI Recommendation: • Expand Antelope Valley Cemetery District’s Sphere of Influence to include the remainder of Antelope Valley as well as the unincorporated communities of Acton and Agua Dulce. The Lancaster Cemetery District’s Existing Coterminous SOI (now known as the Antelope Valley Cemetery District) was established on November 9, 1983. On June 23, 2004, the Commission reconfirmed the Coterminous SOI in the course of adopting the Miscellaneous Government Services Municipal Service Review (see Existing Antelope Valley Cemetery District Sphere of Influence, Exhibit 1, on Page 10). The Antelope Valley Cemetery District filed an application with LAFCO on March 13, 2017 to annex 420,965± acres or 657.75± square miles into the AVCD boundary. LAFCO staff recommends an SOI Amendment to expand the Antelope Valley Cemetery District’s SOI boundary to facilitate the future annexation (see Proposed Antelope Valley Cemetery District Sphere of Influence, Exhibit 3, on Page 18). Discussion/Analysis: As outlined in the legislative intent (Section 56001) of the Act, “the Legislature recognizes that the logical formation and determination of local agency boundaries is an important factor in promoting orderly development.” By including the entire Antelope Valley, the proposed SOI will be a more logical boundary for the AVCD. The proposed boundary includes those portions of Antelope Valley outside its current boundaries: the remaining portion of the City of Palmdale, remaining unincorporated territory in the Antelope Valley, as well as additional population centers in unincorporated Acton and Agua Dulce to the south along the Antelope Valley (State Route 14) Freeway corridor. The proposed expansion of the SOI boundary is consistent with the District’s proposal to annex the same territory into the AVCD. Future annexation of this area would have several benefits: one, it would align the name of the agency with boundaries that include all of the Antelope Valley; two, it would provide much-needed additional property tax revenues to the AVCD; third, it would enable those persons in Antelope Valley, Acton, and Agua Dulce—all of whom are currently outside the AVCD’s current boundaries—to avail themselves of cemetery services without paying an “out-of-district” premium for services; and four, it promotes a more logical boundary for the Antelope Valley Cemetery District. (Report continues on Page 18) Cemetery Districts MSR Page 18 of 57 Exhibit 3 Proposed Antelope Valley Cemetery District Sphere of Influence (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 19 of 57 Chapter Four: Artesia Cemetery District The Artesia Cemetery District (ACD) was formed on September 24, 1928. The cemetery property was donated by the Robinson family to the community in 1880. The first recorded burial was listed in 1866.15 The purpose of the ACD is to provide the public with a cemetery within the constraints of the Cemetery District Enabling Act. The ACD provides residents with “at-need” and “pre-need” sales, endowment care, vaults, cremation sites, cremation urn vaults, burial rights, opening and closing of graves, and the setting of grave markers that identify the interred. The population within the boundaries of the ACD in 2010 was 101,462.16 The ACD is 13.1 square miles in size with a population density of 7,745 persons per square mile. Artesia Cemetery District and its Coterminous SOI boundary include the entire cities of Artesia and Hawaiian Gardens; portions of Cerritos, Lakewood, Long Beach, and Norwalk; and two (2) small areas of unincorporated territory. The ACD boundary is generally located south of Alondra Boulevard, west of Carmenita Road, west of the Orange County Line near Coyote Creek, north of Wardlow Road, and east of the San Gabriel River (see Existing Artesia Cemetery District Sphere of Influence, Exhibit 4, on Page 20). The ACD is bisected by the San Gabriel River (Interstate 605) Freeway and the Artesia (State Route 91) Freeway. The cemetery property is located in the City of Cerritos. The topography of the ACD is relatively flat. (Report continues on Page 20) (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 20 of 57 Exhibit 4 Existing Artesia Cemetery District Sphere of Influence Cemetery Districts MSR Page 21 of 57 Artesia Cemetery District Discussion and Determinations Government Code Section 56430 requires LAFCO to “conduct a service review of the municipal services” and to “prepare a written statement of its determinations” relative to several factors. This chapter addresses these factors and includes the recommended determinations. Population Projections According to the United States Census Bureau, the 2010 population of the Artesia Cemetery District was 101,462.17 The ACD is in an urbanized area that is largely built-out. The population within the SOI boundary within the Artesia Cemetery District is unlikely to grow significantly over the next twenty (20) years. Determinations: • Artesia Cemetery District is an urbanized area that is largely built-out. • The population is unlikely to grow significantly over the next twenty (20) years. Disadvantaged Unincorporated Communities Pursuant to the State’s passage of Senate Bill 244, as of January 1, 2012, LAFCOs are required to make determinations regarding Disadvantaged Unincorporated Communities (DUCs) for an Update of a Sphere of Influence. The law defines a DUC as a community with an annual median household income that is less than eighty percent (80%) of the statewide annual median household income. The law also requires that LAFCOs consider “the location and characteristics of any disadvantaged communities within or contiguous to the sphere of influence” when preparing an MSR. The Artesia Cemetery District contains two (2) small unincorporated areas, but there are no DUCs within those unincorporated areas. There are no DUCs contiguous to the Artesia Cemetery District and its SOI. Determinations: • There is no impact upon the location and characteristic of any Disadvantaged Unincorporated Communities (DUCs) because there are no DUCs within or contiguous to the Artesia Cemetery District and its SOI. • By its very nature as a cemetery district, the Artesia Cemetery District does not provide three core governmental services: water, wastewater, and structural fire protection. Cemetery Districts MSR Page 22 of 57 Present and Planned Capacity of Public Facilities The ACD owns and maintains one cemetery property. The Artesia Cemetery property is eighteen (18) acres, and it is surrounded by developed land on all sides. There are currently fourteen (14) acres that are filled or allocated burial plots, and four (4) acres available for future burial plots.18 The Artesia Cemetery has 6,500 filled or allocated grave sites with a present capacity of 100 open plots available for in-ground burials and 200 available for in-ground cremation remains.19 The ACD has cremation urn monuments that are bench-styled cremation monuments that can hold multiple cremation urns. For Fiscal Year 2014-2015, ACD conducted 73 regular burials, 15 burial cremations, 51 “pre- need” sold, 36 “at-need” sales, and one (1) niche cremation sold.20 The ACD is in the process of having a cremation niche wall constructed on-site, financed through tax dollars. The niche wall can accommodate 342 cremations. The cost of the niche installation is $239,000, and it will be completed in three (3) phases. Staff representatives anticipate having the niche wall constructed on-site by mid-2018.21 Given the existing sales rates, the ACD has adequate space for in-ground burial lots and in- ground cremations and can continue to meet the needs of the community for at least the next ten (10) years. District staff indicated that the existing irrigation system is old and needs to be upgraded. Determination: • Artesia Cemetery District has adequate space of in-ground burial plots and in- ground cremations, and the proposed construction of a cremation niche wall; the ACD can continue to meet the needs of the community for at least the next ten (10) years. Financial Ability of Agencies to Provide Services The ACD’s financial statement for Fiscal Year 2014-2015 ending June 30, 2015 reflects $611,311 in revenue and $601,056 in expenses with a year-end balance of $10,253. 22 For Fiscal Year 2014-2015, thirty-three percent (33%) of the ACD’s income was property tax revenue and the remaining sixty-seven percent (67%) was investment income and charges for service, such as sales of plots, burials fees, and other sales. 23 The ACD has no long-term debt.24 The Endowment Fund for Fiscal Year 2014-2015 is $64,350.25 Cemetery Districts MSR Page 23 of 57 Given that there are 6,500 filled or allocated plots and 10 filled cremation niches (bench-styled cremation monuments), $585,700 should be within the ACD’s Endowment Fund, and it is 11% funded. Additional funding is required to meet the minimum amounts set by Health & Safety Code Section 8738. In prior years, the ACD’s expenses have exceeded revenues. Determinations: • Artesia Cemetery District should make an effort to increase the amount of capital in its Endowment Fund. • On-going and long-term financial challenges have not impeded the Artesia Cemetery District’s ability to provide services to its customers. • In many prior years, the Artesia Cemetery District’s expenses exceeded revenues. Status of, and Opportunities for, Shared Facilities The ACD leases out a portion of the cemetery-owned property as a neighborhood park to the City of Cerritos in exchange for a fifty percent (50%) reduction in the cost of recycled water provided by the City of Cerritos Department of Water & Power. This park is maintained by the City of Cerritos. When additional space is required for grave sites, the ACD will expand their cemetery grounds, incrementally, to include a portion of the park, which can accommodate 2,500 to 3,000 additional open plots.26 Due to the nature of the services provided, there are no additional opportunities to share facilities with other agencies. Determinations: • The Artesia Cemetery District leases out a portion of the cemetery-owned property, as a neighborhood park, in exchange for a fifty percent (50%) reduction in the cost of recycled water provided by the City of Cerritos Department of Water & Power. • Due to the nature of the services provided, there are no additional opportunities to share facilities with other agencies. Accountability for Community Service Needs The ACD is governed by a three-member Board of Trustees who are appointed by the Board of Supervisors. Board members receive a $50 stipend for each meeting attended. The Board meets at least six (6) times a year. There is one (1) part-time District Manager, one (1) full-time Assistant District Manager, two (2) part-time staff person, and three (3) part-time in-house groundskeeper. 27 Cemetery Districts MSR Page 24 of 57 The current District Manager, Joyce Yeutter, has been with the ACD for over 30 years. She is currently training her great-grandson, Robert Yeutter (Assistant District Manager), to succeed her when she retires from the ACD. 28 The ACD launched its website in February of 2017. Staff representatives are working on getting agendas and minutes of monthly Board meetings uploaded on the AVCD website. 29 Determination: • Artesia Cemetery District representatives are in the process of devoting time and resources to developing the Artesia Cemetery District’s website to provide more readily-available information in an on-line format. Other Matters None. Determination: (No additional determinations) (Report continues on Page 25) (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 25 of 57 Artesia Cemetery District SOI Recommendation Artesia Cemetery District SOI Recommendation: • Reconfirm Artesia Cemetery District’s Existing Coterminous Sphere of Influence. The Artesia Cemetery District’s Existing Coterminous SOI was established on November 9, 1983. On June 23, 2004, the Commission reconfirmed Coterminous SOI in the course of adopting the Miscellaneous Government Services Municipal Service Review (see Existing Artesia Cemetery District Sphere of Influence, Exhibit 4, on Page 20). The Artesia Cemetery District has a limited staff, and the District’s Board does not want to make changes to its boundary. Future changes to the SOI boundary is unlikely; LAFCO staff therefore recommends that the Commission reconfirm the existing Coterminous SOI for the Artesia Cemetery District (see Proposed Artesia Cemetery District Sphere of Influence, Exhibit 5, on Page 26). (Report continues on Page 26) (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 26 of 57 Exhibit 5 Proposed Artesia Cemetery District Sphere of Influence Cemetery Districts MSR Page 27 of 57 Chapter Five: Downey Cemetery District The Downey Cemetery District (DCD) was formed in 1928 through a donation of private land by the Downey Cemetery District Association and the Masonic Cemetery.30 The first recorded burial was listed in 1870.31 The purpose of the DCD is to provide the public with a cemetery within the constraints of the Cemetery District Enabling Act. The DCD provides “pre-need” sales of in-ground burials, “pre- need” and “at-need” sales of cremation niches, ground maintenance, opening and closing of graves, and setting of grave markers that identify the interred. The population within the boundaries of the DCD in 2010 was 107,973.32 The DCD is 10.7 square miles in size with a population density of 10,091 persons per square mile. Downey Cemetery District and its Coterminous SOI boundary include portions of the cities of Downey, Paramount, and Bellflower; and two (2) small areas of the City of South Gate. The DCD boundary is generally located south of Florence Avenue, west of the San Gabriel River, north of Somerset Boulevard, and east of the Rio Hondo River (see Existing Downey Cemetery District Sphere of Influence, Exhibit 6, on Page 28). The DCD is bisected by the Century (Interstate 105) Freeway. The cemetery property is located in the City of Downey. The topography of the DCD is relatively flat. (Report continues on Page 28) (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 28 of 57 Exhibit 6 Existing Downey Cemetery District Sphere of Influence Cemetery Districts MSR Page 29 of 57 Downey Cemetery District Discussion and Determinations Government Code Section 56430 requires LAFCO to “conduct a service review of the municipal services” and to “prepare a written statement of its determinations” relative to several factors. This chapter addresses these factors and includes the recommended determinations. Population Projections According to the United States Census Bureau, the 2010 population of the Downey Cemetery District was 107,973.33 The DCD is in an urbanized area that is largely built-out. The population within the SOI boundary within the Downey Cemetery District is unlikely to grow significantly over the next twenty (20) years. Determinations: • Downey Cemetery District is an urbanized area that is largely built-out. • The population is unlikely to grow significantly over the next twenty (20) years. Disadvantaged Unincorporated Communities Pursuant to the State’s passage of Senate Bill 244, as of January 1, 2012, LAFCOs are required to make determinations regarding Disadvantaged Unincorporated Communities (DUCs) for an Update of a Sphere of Influence. The law defines a DUC as a community with an annual median household income that is less than eighty percent (80%) of the statewide annual median household income. The law also requires that LAFCOs consider “the location and characteristics of any disadvantaged communities within or contiguous to the sphere of influence” when preparing an MSR. The Downey Cemetery District does not contain unincorporated areas or DUCs. There are no DUCs contiguous to the Downey Cemetery District and its SOI. Determinations: • There is no impact upon the location and characteristic of any Disadvantaged Unincorporated Communities (DUCs) because there are no unincorporated communities, and therefore no DUCs, within or contiguous to the Downey Cemetery District and its SOI. • By its very nature as a cemetery district, the Downey Cemetery District does not provide three core governmental services: water, wastewater, and structural fire protection. Cemetery Districts MSR Page 30 of 57 Present and Planned Capacity of Public Facilities The DCD owns one cemetery property. The Downey Cemetery property is 10.73 acres, and it is surrounded by developed land on all sides. The City of Downey Department of Public Works maintains the cemetery property through a contract-for-services agreement with the Downey Cemetery District. The Downey Cemetery has approximately 10,000 filled or allocated grave sites with no remaining capacity for “at-need” in-ground burials. The DCD sold out of burial plots in the 1970s.34 As of January 2016, the cemetery has a 486-cremation niche garden with 71 niches sold, and 415 remaining niches available for sale.35 Given the existing sales rates, the DCD has adequate space for cremation niches and can continue to meet the needs of the community for at least the next ten (10 years). Determination: • Downey Cemetery District no longer has grave sites available for sale, but has adequate space for cremation niches and can continue to meet the needs of the community for at least the next ten (10) years. Financial Ability of Agencies to Provide Services The DCD’s financial statement for Fiscal Year 2014-2015 ending June 30, 2015 started with a beginning fiscal year balance of $572,894, reflects $82,519 in revenue and $114,040 in expenses, with a net loss of $31,521 for a fiscal year-end balance of $540,084. 36 For Fiscal Year 2014-2015, ninety percent (90%) of the DCD’s income was property tax revenue, and the remaining ten percent (10%) was investment income and charges for service, such as sales of plots, burials fees, and other sales.37 For Fiscal Year 2014-2015, the Downey Cemetery District’s long-term debt is $50,254. The long-term debt consists of a loan provided by the City of Downey to the DCD for the construction and installation of a niche garden on-site.38 The Endowment Fund for Fiscal Year 2014-2015 is $13,126.39 Given that there are 10,000 filled plots and 71 filled niches, $904,970 should be within the DCD’s Endowment Fund, and it is 1.45 % funded. Additional funding is required to meet the minimum amounts set by Health & Safety Code Section 8738. All burials performed by the DCD are “pre-need” that had been paid many years ago, and generate little or no new income, yet the services must still be performed. Cemetery Districts MSR Page 31 of 57 Due to on-going and long-term financial challenges, the City of Downey (City) has assumed most responsibilities (maintenance, management, and accounting and financial services) of the Downey Cemetery District. For Fiscal Year 2014-2015, the Downey Cemetery District paid $8,181 to the City for contract services.40 Determinations: • Downey Cemetery District should make an effort to increase the amount of capital in its Endowment Fund. • Due to on-going and long-term financial challenges, the City of Downey has assumed most responsibilities (maintenance, management, and accounting and financial services) of the Downey Cemetery District. Status of, and Opportunities for, Shared Facilities The Downey Cemetery District and the City of Downey entered into a contract-for-service agreement on August 22, 1995, whereby the DCD pays a monthly fee to the City of Downey to provide maintenance and care of the cemetery property, provide management, and accounting and financial services.41 City of Downey employees manage the cemetery property, process payroll, provide financial management services, and operate a small office within the Barbara J. Riley Community & Senior Center.42 Due to the nature of the services provided, there are no additional opportunities to share facilities with other agencies. Determinations: • Downey Cemetery District has a contract-for-service agreement with the City of Downey, in which, the City of Downey provides maintenance, management, and accounting and financial services to the Downey Cemetery District. • Due to the nature of the services provided, there are no additional opportunities to share facilities with other agencies. Accountability for Community Service Needs The DCD is governed by a three-member Board of Trustees who are appointed by the Board of Supervisors. Board members receive a $50 stipend for each meeting attended. The Board meets eight (8) to ten (10) times a year. There is one (1) part-time District Coordinator, one (1) part-time administrative clerk, two (2) full-time City of Downey Public Works staff who maintain the cemetery grounds, and one (1) full-time District Director (City of Downey Director of Parks & Recreation) who receives no salary from the Downey Cemetery District budget. DCD staff is paid through the Downey Cemetery District’s Budget.43 Cemetery Districts MSR Page 32 of 57 The DCD’s SOI boundary include a portion of the City of Downey. Residents who live within that portion of the City, and who are within the Downey Cemetery District’s boundary are eligible for services provided by the Downey Cemetery District. Since the word “Downey” appears within the cemetery district name, many people assume that all residents who reside within the City of Downey are eligible for services provided by the DCD. To avoid this confusion and to meet the needs of the community, the entire City of Downey should be within the Downey Cemetery District SOI boundary. The Downey Cemetery District does not maintain its own website. The City of Downey maintains a webpage on the City of Downey’s City Services, Parks & Recreation section of its website. The webpage includes brief history about the Downey Cemetery District, includes a fee schedule, and members of the public can search cemetery records on-line. Agendas and minutes of Board meetings are not readily-available on the website. Determinations: • The City of Downey maintains and provides readily-available information about the Downey Cemetery District in an on-line format. • Downey Cemetery District representatives should commit to provide more readily-available agendas and minutes of Board meetings in an on-line format. Other Matters None. Determination: (No additional determinations) (Report continues on Page 33) Cemetery Districts MSR Page 33 of 57 Downey Cemetery District SOI Recommendation Downey Cemetery District SOI Recommendation: • Expand Downey Cemetery District’s Sphere of Influence to include the remaining portion of the City of Downey. The Downey Cemetery District’s Existing Coterminous SOI was established on November 9, 1983. On June 23, 2004, the Commission reconfirmed the Coterminous SOI in the course of adopting the Miscellaneous Government Services Municipal Service Review (see Existing Downey Cemetery District Sphere of Influence, Exhibit 6, on Page 28). LAFCO staff recommends an SOI Amendment to expand the Downey Cemetery District’s SOI boundary would facilitate and encourage annexation of 2,700± acres or 4.22± square miles, the remainder of the City of Downey, into the DCD. Annexing the remainder of the City of Downey into the DCD would create a more logical boundary and avoid confusion to the public who don’t understand why they live in Downey but do not live within the boundaries of the DCD. Such annexation may, additionally, provide additional property tax revenue for the continued operation and maintenance of the cemetery (see Proposed Downey Cemetery District Sphere of Influence, Exhibit 7, on Page 35). Discussion/Analysis: Given that the DCD contracts with the City of Downey for the maintenance of the cemetery grounds, and accounting and financial services, the City of Downey maintains a DCD webpage through the City of Downey website, and operates a small office within the Barbara J. Riley Community & Senior Center. LAFCO should consider the establishment of a subsidiary district for the continued operation and efficiency of Downey Cemetery District. Pursuant to Government Code Section 57105, an order establishing a district as a subsidiary district may be adopted if the Commission determines: (a) The entire territory of the district is included within the boundaries of a city. OR (b) A portion or portions of the territory of the district are included within the boundaries of a city and that portion or portions meet both of the following requirements: (1) Represent 70 percent (70%) or more of the area of land within the district; and (2) Contain 70 percent (70%) or more of the number of registered voters who reside within the district as shown on the voters’ register in the office of the county clerk or register voters. Cemetery Districts MSR Page 34 of 57 It is recommended that the Commission consider a future review for the establishment of Downey Cemetery District as a subsidiary district of the City of Downey. If successful, the Downey City Council is designated as, and empowered to act as, the board of directors of the cemetery district (Government Code Section 57534). Were LAFCO to establish a subsidiary district, the property tax revenues assigned to the Downey Cemetery District would be allocated to the City. This would address certain inequities that currently exist. For example, the DCD receives approximately $70,000 in property tax revenues, yet it pays the City roughly $8,000 for doing all of the work associated with the cemetery (accounting, payroll, maintenance, and sales). The DCD has a bank account which the City cannot access. Further, the District has control of the land where the cemetery is located. Establishment of a subsidiary district would better match revenues to responsibilities by vesting control of all assets, funds, and decision-making authority to the one party (City of Downey) which is currently performing all of the work required to operate the cemetery. Determination: • LAFCO staff recommends that the Commission consider a future review to establish the Downey Cemetery District as a subsidiary district of the City of Downey. (Report continues on Page 35) (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 35 of 57 Exhibit 7 Proposed Downey Cemetery District Sphere of Influence Cemetery Districts MSR Page 36 of 57 Chapter Six: Little Lake Cemetery District The Little Lake Cemetery District (LLCD) was formed in the 1920s. The first recorded burial was listed in 1872.44 The purpose of the LLCD is to provide the public with a cemetery within the constraints of the Cemetery District Enabling Act. The LLCD provides burials, ground maintenance, opening and closing of graves, cremation grave sites, endowment care, “at-need” and “pre-need” sales, and setting of grave markers to identify the interred. The population within the boundaries of the LLCD in 2010 was 147,857.45 The LLCD is 19.9 square miles in size with a population density of 7,430 persons per square mile. Little Lake Cemetery District and its Coterminous SOI boundary include portions of the cities of Downey, Santa Fe Springs, Norwalk, Bellflower, and La Mirada; and County unincorporated territory. The LLCD boundary is generally located south of Los Nietos Road, west of the Orange County Line, north of Alondra Boulevard, and east of the San Gabriel River (see Existing Little Lake Cemetery District Sphere of Influence, Exhibit 8, on Page 37). The LLCD is bisected by the San Gabriel River (Interstate 605) Freeway and the California Interstate 5 Freeway. The cemetery property is located in the City of Santa Fe Springs. The topography of the LLCD is relatively flat. (Report continues on Page 37) (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 37 of 57 Exhibit 8 Existing Little Lake Cemetery District Sphere of Influence (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 38 of 57 Little Lake Cemetery District Discussion and Determinations Government Code Section 56430 requires LAFCO to “conduct a service review of the municipal services” and to “prepare a written statement of its determinations” relative to several factors. This chapter addresses these factors and includes the recommended determinations. Population Projections According to the United States Census Bureau, the 2010 population of the Little Lake Cemetery District was 147,857.46 The LLCD is in an urbanized area that is largely built-out. The population within the SOI boundary within the Little Lake Cemetery District is unlikely to grow significantly over the next twenty (20) years. Determinations: • Little Lake Cemetery District is an urbanized area that is largely built-out. • The population is unlikely to grow significantly over the next twenty (20) years. Disadvantaged Unincorporated Communities Pursuant to the State’s passage of Senate Bill 244, as of January 1, 2012, LAFCOs are required to make determinations regarding Disadvantaged Unincorporated Communities (DUCs) for an Update of a Sphere of Influence. The law defines a DUC as a community with an annual median household income that is less than eighty percent (80%) of the statewide annual median household income. The law also requires that LAFCOs consider “the location and characteristics of any disadvantaged communities within or contiguous to the sphere of influence” when preparing an MSR. The Little Lake Cemetery District contains one (1) small area of unincorporated territory that is a DUC, located east of the City of Santa Fe Springs (Area 1); it consists of residential, commercial, and light industrial zones. This DUC is part of a larger unincorporated community known as South Whittier. There are two (2) small areas of unincorporated territory that are DUCs, contiguous to the Little Lake Cemetery District and its SOI, located east of the City of Santa Fe Springs (Area 2), and north and west of the City of La Mirada (Area 3), both in South Whittier, that consists of residential, commercial, and light industrial zones (see Existing Little Lake Cemetery District Sphere of Influence with DUCs, Exhibit 9, on page 40). Determinations: • The Little Lake Cemetery District contains one (1) area of unincorporated territory that is a DUC, located east of the City of Santa Fe Springs; it consists of Cemetery Districts MSR Page 39 of 57 residential, commercial, and light industrial zones. This DUC is part of a larger unincorporated community known as South Whittier. There are two (2) small areas of unincorporated territory that are DUCs, contiguous to the Little Lake Cemetery District and its SOI, located east of the City of Santa Fe Springs and north of the City of La Mirada; both in South Whittier, that consists of residential, commercial, and light industrial zones. • By its very nature as a cemetery district, the Little Lake Cemetery District does not provide three core governmental services: water, wastewater, and structural fire protection. (Report continues on Page 40) (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 40 of 57 Exhibit 9 Existing Little Lake Cemetery District Sphere of Influence with DUCs (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 41 of 57 Present and Planned Capacity of Public Facilities The LLCD owns and maintains one cemetery property. The Little Lake Cemetery is 9.7 acres, and it is surrounded by developed land on all sides. The Little Lake Cemetery has 9,500 filled grave sites with a present capacity of 113 open plots available for in-ground burials and in-ground cremations.47 According the LLCD staff, the cemetery is almost filled to capacity for in-ground burials; staff indicates that the district is considering a plan to install a cremation niche wall to serve its customers.48 Given the existing sales rates and proposed construction of a cremation niche wall, the LLCD can continue to meet the needs of the community for at least the next ten (10) years. Determination: • The Little Lake Cemetery is almost filled to capacity for in-ground burials, and with the proposed construction of a cremation niche wall, the LLCD will be able to continue to meet the needs of the community for at least the next ten (10) years. Financial Ability of Agencies to Provide Services The LLCD’s financial statement for Fiscal Year 2014-2015 ending June 30, 2015 started with a beginning fiscal year balance of $ 1,542,929, reflects $341,281 in revenue and $275,166 in expenses for a fiscal year-end balance of $1,609,044.49 For Fiscal Year 2014-2015, thirty-three percent (33%) of the LLCD’s income was property tax revenue, and the remaining sixty-six percent (67%) was investment income and charges for service, such as sales of plots, burials fees, and other sales.50 The LLCD has no long-term debt. 51 The Endowment Fund for Fiscal Year 2014-2015 is 14,870.52 Given that there are 9,500 filled plots, $855,000 should be within the LLCD’s Endowment Fund, and it is 1.7% funded. Additional funding is required to meet the minimum amounts set by Health & Safety Code Section 8738. Determination: • Little Lake Cemetery District should make an effort to increase the amount of capital in its Endowment Fund. Cemetery Districts MSR Page 42 of 57 Status of, and Opportunities for, Shared Facilities Due to the nature of the services provided, there are no apparent opportunities to share facilities with other agencies. Determination: • Due to the nature of the services provided, there are no apparent opportunities to share facilities with other agencies. Accountability for Community Service Needs The LLCD is governed by a three-member Board of Trustees who are appointed by the Board of Supervisors. Board members receive a $50 stipend for each meeting attended. The Board meets six (6) times a year. There is one (1) full-time District Manager who lives on the cemetery property, one (1) full-time in-house groundkeeper, and one (1) part-time in-house groundskeeper. 53 The Little Lake Cemetery District does not have a website. Determination: • Little Lake Cemetery District representatives should consider establishing a website in order to provide more information to the public in an on-line format. Other Matters None. Determination: (No additional determinations) (Report continues on Page 43) Cemetery Districts MSR Page 43 of 57 Little Lake Cemetery District SOI Recommendation Little Lake Cemetery District SOI Recommendation: • Reconfirm Little Lake Cemetery District’s Existing Coterminous Sphere of Influence. The Little Lake Cemetery District’s Existing Coterminous SOI was established on November 9, 1983. On June 23, 2004, the Commission reconfirmed the Coterminous SOI in the course of adopting the Miscellaneous Government Services Municipal Service Review (see Existing Little Lake Cemetery District Sphere of Influence, Exhibit 8, on Page 40). The Little Lake Cemetery District has a limited staff, and the District’s Board does not want to make changes to its boundary. Future changes to the SOI boundary is unlikely; LAFCO staff therefore recommends that the Commission reconfirm the existing Coterminous SOI for the Little Lake Cemetery District (see Proposed Little Lake Cemetery District Sphere of Influence, Exhibit 10, on Page 44). (Report continues on Page 44) (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 44 of 57 Exhibit 10 Proposed Little Lake Cemetery District Sphere of Influence (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 45 of 57 Chapter Seven: Wilmington Cemetery District The Wilmington Cemetery District (WCD) was formed on December 2, 1958. The cemetery was first established in 1857 by Phineas Banning, known as the “The Father of the Port of Los Angeles”. The WCD became a Los Angeles Historic-Cultural Monument (# 414) in 1983. The WCD is the oldest cemetery in the Los Angeles Harbor Area and the second oldest in the City of Los Angeles.54 The purpose of the WCD is to provide the public with a cemetery within the constraints of the Cemetery District Enabling Act. The WCD provides “pre-need” burials, ground maintenance, opening and closing of graves, endowment care, and setting of grave markers to identify the interred. The population within the boundaries of the WCD in 2010 was 51,763.55 The WCD is 4.3 square miles in size with a population density of 12,038 persons per square mile. Wilmington Cemetery District and its Coterminous SOI boundary is within the City of Los Angeles. The WCD boundary is generally located south of the City of Carson, west of Alameda Street, north of Harry Bridges Boulevard, and east of the Harbor (State Route 110) Freeway (see Existing Wilmington Cemetery District Sphere of Influence, Exhibit 11, on Page 46). The WCD is bisected by the Pacific Coast Highway (State Route 1). The cemetery property is located in the Wilmington area within the City of Los Angeles. The topography of the WCD is relatively flat. (Report continues on Page 46) (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 46 of 57 Exhibit 11 Existing Wilmington Cemetery District Sphere of Influence (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 47 of 57 Wilmington Cemetery District Discussion and Determinations Government Code Section 56430 requires LAFCO to “conduct a service review of the municipal services” and to “prepare a written statement of its determinations” relative to several factors. This chapter addresses these factors and includes the recommended determinations. Population Projections According to the United States Census Bureau, the 2010 population of the Wilmington Cemetery District was 51,763.56 The WCD is in an urbanized area that is largely built-out. The population within the SOI boundary within the Wilmington Cemetery District is unlikely to grow significantly over the next twenty (20) years. Determinations: • Wilmington Cemetery District is an urbanized area that is largely built-out. • The population is unlikely to grow significantly over the next twenty (20) years. Disadvantaged Unincorporated Communities Pursuant to the State’s passage of Senate Bill 244, as of January 1, 2012, LAFCOs are required to make determinations regarding Disadvantaged Unincorporated Communities (DUCs) for an Update of a Sphere of Influence. The law defines a DUC as a community with an annual median household income that is less than eighty percent (80%) of the statewide annual median household income. The law also requires that LAFCOs consider “the location and characteristics of any disadvantaged communities within or contiguous to the sphere of influence” when preparing an MSR. The Wilmington Cemetery District does not contain any unincorporated areas or DUCs. There are no DUCs contiguous to the Wilmington Cemetery District and its existing SOI. Within the area that is proposed to be added to the Wilmington Cemetery District’s SOI, there is a small DUC located at the northeast corner of an unincorporated island surrounded by the City of Los Angeles. The proposed SOI expansion facilitates a future annexation (or annexations) which would provide additional services to landowners and residents within this DUC. Determinations: • There is no impact upon the location and characteristic of any Disadvantaged Unincorporated Communities (DUCs) because there are no unincorporated Cemetery Districts MSR Page 48 of 57 communities, and therefore no DUCs, within or contiguous to the Wilmington Cemetery District and its existing SOI. • By its very nature as a cemetery district, the Wilmington Cemetery District does not provide three core governmental services: water, wastewater, and structural fire protection. • Within the area that is proposed to be added to the Antelope Valley Cemetery District’s SOI, there is a small DUC at the northeast corner of an unincorporated island surrounded by the City of Los Angeles. The proposed SOI expansion facilitates a future annexation (or annexations) which would provide additional services to landowners and residents within this DUC. Present and Planned Capacity of Public Facilities The WCD owns and maintains one cemetery property. The Wilmington Cemetery is ten (10) acres, and it is surrounded by developed land on all sides. The Wilmington Cemetery has 9,350 filled grave sites. All cemetery plots are either filled or allocated. The WCD does not provide “at-need” burials since there are no remaining open plots for sales. There are 65 open plots available for “pre-need” burials only.57 The WCD has indicated that the District will contact surviving family members, whose families have already paid for plots, but have not yet utilized their purchased plots. Most of these burial plots date back to the late 1800s. Since, the District is not able to sell allocated plots, by law, that have already been paid, the WCD is hopeful that these families will relinquish or donate those unused burial plots back to the cemetery district, so that the District will have additional open plots available to generate new “pre-need” or “at-need” sales. District representatives have indicated the importance of having a cremation niche wall constructed on-site, but WCD representatives stated there is a lack of funding for the construction of a niche wall at the present time. WCD representatives have indicated that the WCD has an extraordinarily high City of Los Angeles Department of Water and Power water bill. There were previous efforts by the WCD to receive reclaimed water through the City of Los Angeles or through the County of Los Angeles that would reduce water rates, but to no avail. The WCD continues to make efforts to reduce their water usage.58 Determinations: • Wilmington Cemetery District no longer has open plots available for “at-need” sales. Only “pre-need” burials are conducted, as all burial plots have been filled or allocated. • Wilmington Cemetery District representatives are in the process of contacting surviving family members, whose families have already paid for plots, who have not yet utilized their purchased plots. It is hoped that these families will relinquish Cemetery Districts MSR Page 49 of 57 or donate those unused burial plots back to the cemetery district, so that the District will have additional open plots available to generate new “pre-need” or “at-need” sales. • District representatives should continue their efforts to acquire the funding necessary for the construction a cremation niche wall. • At present, the District does not have the capacity to meet on-going and future demands for burials at the Wilmington Cemetery. These demands will be met only if District representatives succeed in developing a cremation niche wall or convincing individuals to relinquish un-used burial plots. Financial Ability of Agencies to Provide Services The WCD’s financial statement for Fiscal Year 2013-2014 ending June 30, 2014 started with a beginning fiscal year balance of $ 264,595, reflects $218,342 in revenue and $247,822 in expenses with a net loss of $29,480 for a fiscal year-end balance of $235,115.59 The WCD receives revenue from a benefit assessment which provides funding for the operation and maintenance for the cemetery property.60 For Fiscal Year 2013-2014, forty-nine percent (49%) of the WCD’s income was from a benefit assessment, twenty-three percent (23%) was in property tax revenue, and the remaining twenty-eight percent (28%) were charges for services, such as burials fees, other sales, and oil royalties.61 The WCD has no long-term debt.62 The WCD started an Endowment Fund in August of 2015. As of November 2016, the Endowment Fund balance is $6,400.63 Given that there are 9,350 filled plots, $841,500 should be within the WCD’s Endowment Fund, and it is 0.76% funded. Additional funding is required to meet the minimum amounts set by Health & Safety Code Section 8738. On-going and long-term financial challenges has limited the WCD’s ability to provide services to its customers. Most of these challenges are because all in-ground burials performed by the WCD are “pre-need” sales that had been paid many years ago, generate little or no new income to the WCD, yet those services still need be to performed. The board of trustees has made efforts to increase its fee schedule to generate additional income. WCD has been struggling for years financially. To increase additional revenues to the WCD budget, and to facilitate and encourage a future annexation of 13,752± acres or 21.49± square miles, LAFCO staff recommends an SOI Amendment to expand the Wilmington Cemetery District’s SOI boundary (a portion of the City of Los Angeles and a small area of unincorporated territory) into the WCD. Should the annexation be approved by the Commission, it will provide additional property tax revenue to the WCD. Cemetery Districts MSR Page 50 of 57 Determinations: • Wilmington Cemetery District should make an effort to increase the amount of capital in its Endowment Fund. • On-going and long-term financial challenges have limited the Wilmington Cemetery District’s ability to provide services to its customers. Most of these challenges are because all in-ground burials performed by the Wilmington Cemetery District are “pre-need” sales that had been paid many years ago, generate little or no new income to the WCD, yet those services still need be to performed. The board of trustees has made efforts to increase its fee schedule to generate additional income. • To increase additional revenues to the WCD budget, Wilmington Cemetery District anticipates filing an application to annex 13,752± acres or 21.49± square miles in the future. Should the annexation be approved by the Commission, it will provide additional property tax revenue to the WCD. Status of, and Opportunities for, Shared Facilities Due to the nature of the services provided, there are no apparent opportunities to share facilities with other agencies. Determination: • Due to the nature of the services provided, there are no apparent opportunities to share facilities with other agencies. Accountability for Community Service Needs The WCD is governed by a five-member Board of Trustees who are appointed by the Board of Supervisors. Board members receive no stipends for meetings attended. The Board meets twelve (12) times a year. There is one (1) part-time office manager, and two (2) full-time groundskeepers.64 The Wilmington Cemetery District does not have a website. Determination: • Wilmington Cemetery District representatives should consider establishing a website in order to provide more information to the public in an on-line format. Other Matters None. Cemetery Districts MSR Page 51 of 57 Determination: (No additional determinations) (Report continues on Page 52) (THIS SPACE INTENTIONALLY LEFT BLANK) Cemetery Districts MSR Page 52 of 57 Wilmington Cemetery District SOI Recommendation Wilmington Cemetery District SOI Recommendation: • Expand Wilmington Cemetery District’s Existing Coterminous Sphere of Influence to include a portion of the City of Los Angeles. The Wilmington Cemetery District’s Existing Coterminous SOI was established on November 9, 1983. On June 23, 2004, the Commission reconfirmed the Coterminous SOI in the course of adopting the Miscellaneous Government Services Municipal Service Review (see Existing Wilmington Cemetery District Sphere of Influence, Exhibit 11, on Page 46). LAFCO staff recommends an SOI Amendment to expand the Wilmington Cemetery District’s SOI boundary to facilitate and encourage annexation of 13,752± acres or 21.49± square miles (a portion of the City of Los Angeles and a small area of unincorporated territory) into the WCD. Staff anticipates the Wilmington Cemetery District will file an application in the future. Should the annexation be approved by the Commission, it will provide additional property tax revenue to the Wilmington Cemetery District (see Proposed Wilmington Cemetery District Sphere of Influence, Exhibit 12, on Page 53). Discussion/Analysis: The proposed boundary follows the City of Los Angeles municipal boundary to the south, east, and west, and north to the Interstate 405 Freeway. The proposed expansion of the SOI boundary is consistent with the proposed future District application to annex the same territory into the WCD. Future annexation of this area would have several benefits: one, it would provide much-needed additional property tax revenues to the WCD; and two, it would enable those persons in a portion of the City of Los Angeles and a small area of unincorporated territory—all of whom are currently outside the WCD’s current boundaries—to avail themselves of cemetery services without paying an “out-of-district” premium for services. (Report continues on Page 53) Cemetery Districts MSR Page 53 of 57 Exhibit 12 Proposed Wilmington Cemetery District Sphere of Influence Cemetery Districts MSR Page 54 of 57 Cemetery Districts Municipal Service Review Footnotes Footnotes: 1. About Us, Antelope Valley Cemetery District, Website; November 2, 2016. 2. 2010 United Stated Census Bureau data. 3. Ibid. 4. Letter from Dayle DeBry, District Manager, Antelope Valley Cemetery District, to Alisha O'Brien; October 26, 2016. 5. Ibid. 6. Lancaster Cemetery District, Audited Financial Statements June 30, 2015, Number of Burials Diminishing Due to Cremations, Page 9. 7. Letter from Dayle DeBry, District Manager, Antelope Valley Cemetery District, to Alisha O'Brien; October 26, 2016. 8. Ibid; and E-mail from Dayle DeBry, District Manager, Antelope Valley Cemetery District, to Alisha O’Brien; November 2, 2016. 9. Lancaster Cemetery District, Audited Financial Statements June 30, 2015, Governmental Fund Balance Sheet – Statement of Net Position, Page 11. 10. Lancaster Cemetery District, Audited Financial Statements June 30, 2015, Revenue, Pages 8 and 9. 11. E-mail from Dayle DeBry, District Manager, Antelope Valley Cemetery District, to Alisha O’Brien; November 15, 2016. 12. Lancaster Cemetery District, Audited Financial Statements June 30, 2015, Debt, Page 10. 13. Lancaster Cemetery District, Audited Financial Statements June 30, 2015, Governmental Fund Balance Sheet – Statement of Net Position, Page 11. 14. E-mail from Dayle DeBry, District Manager, Antelope Valley Cemetery District, to Alisha O’Brien; November 2, 2016. 15. Artesia Cemetery District, Brochure, 2014. Cemetery Districts MSR Page 55 of 57 16. 2010 United States Census Bureau data. 17. Ibid. 18. E-mail for Robert Yeutter, Assistant District Manager, Artesia Cemetery District, to Alisha O'Brien; February 22, 2017. 19. Ibid. 20. Ibid; and Artesia Cemetery District, Yearly Burial Count, Fiscal Year 2014-2015. 21. Telephone conversation with Robert Yeutter, Assistant District Manager, Artesia Cemetery District; February 23, 2017. 22. Artesia Cemetery District, Statement of Activity, Month and-Year-to-Date, June 2015. 23. Ibid. 24. Telephone conversation with Robert Yeutter, Assistant District Manager, Artesia Cemetery District; November 15, 2016. 25. Artesia Cemetery District, Statement of Activity, Month and-Year-to-Date, June 2015. 26. Telephone conversation with Robert Yeutter, Assistant District Manager, Artesia Cemetery District; February 23, 2017. 27. Ibid. 28. Ibid. 29. Ibid. 30. Downey Cemetery District Financial Statements June 30, 2014, Organization and History, Page 17. 31. E-mail from Lorena Arellano, Coordinator, Downey Cemetery District, Brief History of the Downey Cemetery, to Alisha O'Brien; January 11, 2016. 32. 2010 United States Census Bureau data. 33. Ibid. 34. E-mail from Lorena Arellano, District Coordinator, Downey Cemetery District, to Alisha O'Brien; November 16, 2016. 35. E-mail from Lorena Arellano, District Coordinator, Downey Cemetery District, to Alisha O'Brien; January 11, 2016. Cemetery Districts MSR Page 56 of 57 36. Downey Cemetery District, Financial Statements, Fiscal Year 2014-2015, Statement of Activities, Page 11. 37. Ibid. 38. Downey Cemetery District, Financial Statements, Fiscal Year 2014-2015, Long-Term Liabilities, Page 19. 39. Downey Cemetery District, Financial Statements, Fiscal Year 2014-2015, Statement of Net Position, Page 10. 40. Downey Cemetery District, Financial Statements, Fiscal Year 2014-2015, Notes to Financial Statements (Continued), Page 20. 41. Agreement between the Downey Cemetery District and the City of Downey executed on August 22, 1995. 42. E-mail from Lorena Arellano, District Coordinator, Downey Cemetery District, to Alisha O'Brien; November 16, 2016. 43. Ibid. 44. Literature provided by the Little Lake Cemetery District; December 16, 2015. 45. 2010 United States Census Bureau data. 46. Ibid. 47. Telephone conversation with Stan Schnelle, District Manager, Little Lake Cemetery District; December 7, 2016. 48. Telephone conversation with Stan Schnelle, District Manager, Little Lake Cemetery District; November 16, 2016. 49. Little Lake Cemetery District, Financial Statements June 30, 2015 and 2014, Page 5. 50. Ibid. 51. Telephone conversation with Stan Schnelle, District Manager, Little Lake Cemetery District; November 16, 2016. 52. Little Lake Cemetery District, Financial Statements June 30, 2015 and 2014, Page 5. 53. Telephone conversation with Stan Schnelle, District Manager, Little Lake Cemetery District; November 16, 2016. 54. Historic Wilmington Cemetery, Literature provided by the Wilmington Cemetery District, December 10, 2015. Cemetery Districts MSR Page 57 of 57 55. 2010 United States Census Bureau data. 56. Ibid. 57. E-mail from Olivia Cueva-Fernandez, Trustee and Board Secretary, Wilmington Cemetery District, to Alisha O’Brien; November 10, 2016. 58. E-mail from Olivia Cueva-Fernandez, Trustee and Board Secretary, Wilmington Cemetery District, to Alisha O’Brien; November 21, 2016; and telephone conversation with Olivia Cueva-Fernandez; March 15, 2017. 59. Telephone conversation with Stan Schnelle, District Manager, Little Lake Cemetery District; November 16, 2016. 60. 61. Wilmington Cemetery District, Annual Financial Report, Fiscal Year 2013-2014, Basic Financial Statements, Page 8. 62. Wilmington Cemetery District, Annual Financial Report, Fiscal Year 2013-2014, Annual Assessment for Landscape Maintenance Purposes, Page 16. 63. Wilmington Cemetery District, Annual Financial Report, Fiscal Year 2013-2014, Basic Financial Statements, Page 8. 64. E-mail from Olivia Cueva-Fernandez, Trustee and Board Secretary, Wilmington Cemetery District, to Alisha O’Brien; November 21, 2016. 65. Ibid. 66. E-mail from Olivia Cueva-Fernandez, Trustee and Board Secretary, Wilmington Cemetery District, to Alisha O’Brien; November 10, 2016.