MSR - 2015

2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 1 COMMISSIONERS Chair Sherwood Darington, Public Member Vice Chair Joe Gunter, City Member Fernando Armenta, County Member, Alternate Matt Gourley, Public Member, Alternate Maria Orozco, City Member, Alternate John Phillips, County Member Warren E. Poitras, Special District Member, Alternate Ralph Rubio, City Member Simón Salinas, County Member Steve Snodgrass, Special District Member Graig R. Stephens, Special District Member STAFF Kate McKenna, AICP, Executive Officer Darren McBain, Senior Analyst Thomas A. McCue, AICP, Senior Analyst Gail Lawrence, Clerk to the Commission Leslie J. Girard, General Counsel LOCAL AGENCY FORMATION COMMISSION OF MONTEREY COUNTY 132 W. Gabilan Street, Suite 102, Salinas, CA 93901 P.O. Box 1369, Salinas, CA 93902 (831)754-5838 www.monterey.lafco.ca.gov 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 2 Table of Contents EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 • Map of Cemetery Districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 • Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 • Table of Summary Area, Population, Burials and Financial Data . . . . . . . . . . . . . . . . . . . . . . . 6 • Report Overview and Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 • Key Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 • Recommended Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 DISTRICT PROFILES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 • Castroville Cemetery District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 • Gonzales Cemetery District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 • Soledad Cemetery District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 • Greenfield Cemetery District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 • King City Cemetery District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 • San Lucas Cemetery District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 • San Ardo Cemetery District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 • Cholame Valley Cemetery District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 • Pajaro Valley Public Cemetery District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 DETERMINATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 • Scope and Summary of Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 • Municipal Service Review Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 • Sphere of Influence Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 APPENDIX . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 • Sources and Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 • Glossary of Cemetery Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 LAFCO of Monterey County 3 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 4 EXECUTIVE SUMMARY INTRODUCTION This report provides information about the services and boundaries of eight public cemetery districts that are located entirely in Monterey County: Castroville, Gonzales, Soledad, Greenfield, King City, San Lucas, San Ardo and Cholame Valley. The report also provides brief information about the Pajaro Valley Public Cemetery District, a multi-county district that is under the jurisdiction of Santa Cruz LAFCO. The California Legislature authorized the creation of public cemetery districts in 1909. Eight cemetery districts were formed entirely in Monterey County. Most were formed to maintain pre-existing cemeteries that were originally built by pioneers, non-profit organizations and religious institutions. All are responsible for owning, maintaining, expanding and operating specific cemeteries within their boundaries. As shown in the map on Page 4, public cemetery districts are concentrated in rural communities in the southern Salinas Valley and North Monterey County. Cemetery districts were first formed in Soledad, Gonzales and King City (the late 1930s), followed by Greenfield (1943) and Castroville, San Ardo and Cholame Valley (1950s). The San Lucas Cemetery District was formed in 1974. The Pajaro Valley Public Cemetery District, centered in Santa Cruz County and serving portions of northern Monterey County, was formed in 1955. Table 1 (Page 6) is a summary of basic information about all nine cemetery districts. The districts serve an area of about 1,300 square miles in Monterey County. Almost 100,000 or 23 percent of Monterey County residents live within the boundaries of a public cemetery district. The eight districts located entirely in Monterey County inter approximately 175 residents a year, and the Pajaro Valley district may inter another 40 Monterey County residents a year. Together, the cemetery districts bury nearly nine percent of the people who die each year in Monterey County.1 Cemetery districts offer residents and property owners inside their boundaries the opportunity for interment in local communities. County residents outside of cemetery districts may receive services from municipal cemeteries (Monterey and Pacific Grove), and from a variety of private and religious cemeteries and cremation services. Veterans in the region will soon have the opportunity for interment at the California Central Coast Veterans Cemetery on the former Fort Ord. This report is for use by the Local Agency Formation Commission of Monterey County in conducting a statutorily required service review and Sphere of Influence update process for the eight cemetery districts under the jurisdiction of this LAFCO. State law (the Cortese-Knox-Hertzberg Act) requires that the Commission conduct a periodic review and update of the Spheres of Influence of all cities and districts in Monterey County (Government Code section 56425(e)). The report is also intended to inform the general public about the districts’ services and accomplishments, as well as the challenges they experience in carrying out their work. In addition, the process of conducting this study served as an outreach opportunity with a goal of assisting districts to operate efficiently and in compliance with State laws. 1 This percentage is based on an estimated 2,436 deaths per year in the County. The County’s population in 2010 was approximately 415,000. The Monterey County Health Department estimates that the mortality rate in the County from 2008 to 2010 was 586.7 people per 100,000 (Monterey County 2013 Community Health Assessment). LAFCO of Monterey County 5 Table 1: Monterey County Cemetery Districts Summary Area, Population, Burials and Financial Data 7 f. 9 h. 5 6 e. Total Net 8 Cemetery a. 4 b. 4 c. d. R e v enues Income g. Endow- Estimated FY 2015-16 Per Current ment District Area P o p ulation (for five years Burials Budgeted Capita Assets C are (sq. mi.) (2010) between per Year Revenue (“d/b”) (6-30-15) Fund FY 2010-11 (6-30-15) and 2014-15) Castroville 44.9 13,024 30-35 $ 163,165 $ 13 $ 237,292 $ 449,700 $ 191,066 Gonzales 153.4 10,649 25 $ 98,000 $ 9 $ (54,549) $ 187,328 $ 29,966 1 Soledad 209.7 17,328 30 $ 131,300 $ 8 $ (67,039) $ 218,371 $ 143,265 Greenfield 102.4 17,411 30 $ 108,200 $ 6 $ 47,745 $ 210,981 $ 127,112 King City 204.1 15,760 50-55 $ 245,521 $ 16 $ 81,731 $ 523,253 $ 342,010 San Lucas 191.4 822 2-3 $ 16,190 $20 $ (47,462) $ 30,598 $ 0 2 Not Not San Ardo 165.2 839 n/a $ 20,380 $24 $ 12,429 available available Cholame Not 181.7 169 1 $ 0 $ $ 4 $0 Valley available Total of 8 Districts Approx. Not Not 1,256.8 76,002 $ 782,756 $ 10 $ 210,151 entirely in 175 applicable applicable Monterey Co. 162.6/ 95,088/ 175-200 Pajaro Valley 3 (47.7 in (18,646 in (approx. 40 $ 938,500 $ 10 Not Not $1.2 Public Monterey Monterey in Monterey available available million County) County) County) Notes and Data Sources: 1. Soledad Cemetery District: The population listed for Soledad excludes an estimate of the institutional prison population: 10,103. 2. San Ardo Cemetery District: The revenues, income and assets listed for the San Ardo Cemetery District are from the State Controller's Office for Fiscal Year 2013-14. No more current data is available. 3. Pajaro Valley Public Cemetery District: This district is briefly discussed in this review. It is under the jurisdiction of Santa Cruz LAFCO, which completed a Service and Sphere Review for the District in April 2015. 4. Area and Population were calculated from the County of Monterey Geographical Information System (GIS) and 2010 US Census Tract data. 5. Estimated Burials per Year were provided by District. 6. Budgeted Revenue can include property tax revenues, sales of cemetery plots, fees for service, interest on district investments, grants and donations. 7. Total Net Income is the difference between revenue and expenditures/expenses over a five-year period as indicated within District audits, “profit and loss statements,” and the California State Controller’s Office. Districts typically include depreciation as an expenditure/expense. The number listed above, with one exception as noted, is the total for the five years from July 1, 2010 through June 30, 2015. 8. Current Assets are shown in District audits and “balance sheets.” Current Assets include cash and investments, net accounts receivable, taxes receivable, current notes receivable, prepaid expenses, and inventory. The principal and interest on a District’s Endowment Care Fund are included within “Current Assets.” Capital assets – land, buildings and equipment – are not Current Assets. 9. Endowment Care Fund is the balance of monies collected by the district from purchasers which is kept in trust for the maintenance and upkeep of the cemetery. This data is contained on district balance sheets for June 30, 2015 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 6 REPORT OVERVIEW AND ORGANIZATION This Executive Summary presents a brief overview of the current study, the study’s key findings, and recommended actions. The District Profiles chapter contains individual profiles for each of the cemetery districts in Monterey County, highlighting each agency’s specific characteristics, opportunities, and challenges. The Determinations chapter is organized by the statutory determinations required for all Municipal Service Reviews and Sphere of Influence studies pursuant to the Cortese-Knox-Hertzberg Act. The chapter provides recommended Municipal Service Review determinations for all eight of the cemetery districts that are located entirely in Monterey County. It also provides Sphere of Influence determinations for these districts. No Sphere changes have been requested by the districts or determined by staff to be warranted at the present time. A brief Appendix contains Sources and Acknowledgements and a Glossary of Cemetery Terms. KEY FINDINGS In 1983, LAFCO first created Spheres of Interest for local agencies, including cemetery districts. At that time, LAFCO noted that “…the Cemetery Districts operate on tight and relatively small budgets and … a considerable amount of work and materials are donated by concerned and caring citizens who live in these districts.” This finding remains as true in 2015 as it was 32 years ago. Following are the key findings of the Municipal Service Review and Sphere of Influence Study: 1. Public cemetery districts in Monterey County were created to address community needs and continue to meet these needs today. Each cemetery district is deeply connected with the community that it serves. Public cemeteries link neighbors with neighbors and allow residents to work together to meet community needs. The cemeteries also link present and past residents of communities in a strong symbolic way. Most of Monterey County’s eight public cemetery districts were formed to maintain pre-existing cemeteries that were originally built by pioneers, non-profit organizations and religious institutions. Often, these districts are the only providers of cemetery services to their local cities and unincorporated communities. All of the cemetery districts in Monterey County continue to actively perform their missions to provide efficient, cost–effective and respectful community services, to the best of their abilities. 2. The business of cemeteries is changing. The percentage of Americans choosing cremation is increasing with 40% of all Americans who died in 2010 being cremated. Cremated remains can be buried, placed in a memorial wall, retained in an urn or scattered. The impact of this cultural change on cemeteries is that fewer full-body burials, or burials LAFCO of Monterey County 7 of any kind, are performed. This change has an impact on the finances of a cemetery, and some of the local cemeteries are adapting by providing facilities to accommodate cremations. Also, establishment of the California Central Coast Veterans Cemetery on the former Fort Ord may slightly reduce the demand for burials in other cemeteries in this region. 3. Many local cemetery districts face sustained financial difficulties. Local cemetery districts experience a wide range of financial conditions and vulnerability. Many districts are challenged by significant financial pressures from limited, or nonexistent, property tax revenues, higher employment costs for any staff or contractors, flat user fees, increasingly complex State requirements, and other factors. Most cemeteries are older facilities and many are in need of, or have already undergone, costly renovations and upgrades to remain functional or current. Six of the eight cemetery districts wholly in Monterey County have experienced at least one year of negative cash flow in the past five years2. Three districts have spent more monies than they received over the entire five-year period from July 2010 through June 2015 as can be seen on Table 1. On the other hand, some of the districts are able to remain financially sound and sustainable. For example, the King City Cemetery District consistently keeps expenditures within revenue and maintains over $500,000 in current assets. 4. Cemetery districts can benefit from partnerships and a sharing of resources. Potential future opportunities for greater efficiency of service delivery are particularly relevant in the Greenfield area. Opportunities are available for the sharing of resources and expertise among cemetery districts. Many of the cemetery districts already take advantage of efficiency and cost-sharing measures, including the shared use of equipment, staff and contracted services. Those districts with more resources are generous with their assistance to districts with fewer resources. Districts with few or no financial resources rely on a tradition of community pride with capable volunteer assistance and fundraising efforts. Cemetery districts are encouraged to continue to work with neighboring special districts, nearby cities and private cemeteries to explore new ways of reducing costs and greater efficiencies, where possible. A December 2015 municipal service review for special districts in the Salinas Valley identified an overlap of local agency services in the Greenfield area. This area is served by the City of Greenfield and four special districts that provide fire prevention, parks and recreation, public assemblage and cemetery services. A strong potential appears to exist for increased collaboration, in the form of shared services or facilities/equipment, sharing of staff or administrative/organizational resources, or other partnerships to meet the community’s needs as efficiently and economically as possible. This issue was also highlighted in a 2006 LAFCO study of the Greenfield area. As a follow-up step, LAFCO staff will recommend the development of a joint workshop of City and special district representatives to review all existing agencies’ services within the Greenfield community and discuss potential future opportunities for greater efficiency. 2 One additional cemetery district received virtually no income and has no expenditures. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 8 5. Requirements for public transparency and accountability have increased, and cemetery districts have made progress in addressing these requirements. Additional measures can and should be taken for full compliance with these requirements. LAFCO can play a role in providing continuing educational and training outreach to assist special district staff and board members. State laws increase in number and complexity each year. Compliance is a challenge for all districts. All of the studied districts are undaunted in their commitment to serve their communities to the best of their abilities. All respond to legal requirements to the extent that their resources permit them to do so. Levels of compliance vary from district to district, and some implement best management practices that go above and beyond the basics. Smaller districts have particular difficulty in keeping up with current requirements for financial and audit reporting, transparency and accountability, the conduct of meetings, personnel practices, insurances, contracting provisions, and Trustee and staff- required training. Some cemetery districts also have difficulties in finding residents to fill all Trustee positions. As a whole, State requirements are a significant responsibility and burden for local agencies. For example, one local cemetery district has budgeted over half of its current year revenues for audit and accounting services. In summary, the eight cemetery districts in Monterey County have achieved varying levels of compliance with applicable State requirements. Small districts often have limited access to resources. Education was a focus of this Service Review and Sphere of Influence Study. Early in the process, LAFCO staff provided all cemetery districts with a summary of State requirements and best practices for the operation of a public agency. Staff also shared information about some of the professional development training and technical assistance resources available to special districts. This information was well received by various District Trustees and staff. Some District representatives spoke of the need for more training about their roles and responsibilities. As a follow-up step, LAFCO staff will recommend that the Commission consider a new work program item for 2016. The recommendation is to compile and distribute a suggested orientation package for new Trustees/Board members and staff members of small special districts and to establish a clearinghouse of professional development training and technical assistance resources. Depending on district representatives’ interests and needs, similar opportunities may exist for an annual board member training update or other information-sharing events. These resources would not be limited to cemetery districts, but would be open to all special districts countywide. 6. Current Spheres of Influence and boundaries for cemetery districts are adequate. Boundaries of cemetery districts in Monterey County have remained substantially unchanged since their formations. There are several reasons for this continuity. First, the original boundaries were large enough to include most of the populated areas. Second, some of the districts adjoin each other and so there are few contiguous parcels available for expansion. Finally, since 1978, State law provides no additional property tax revenues, or other financial incentives, for the expansion of a cemetery district. While several cemetery districts have Spheres of Influence outside of their district boundaries, only the Castroville Cemetery District’s Sphere has a large population beyond the District boundaries. More than 6,100 people in the unincorporated Prunedale area live in the Castroville Cemetery District’s Sphere but are not District residents. At present, the District has no plans for annexation. LAFCO of Monterey County 9 RECOMMENDED ACTIONS Based on the Study’s recommended determinations, the Executive Officer recommends that LAFCO consider and adopt a resolution to: 1. Find that the action is exempt from provisions of the California Environmental Quality Act (CEQA) as “information collection” under Section 15306 of the State CEQA Guidelines and based on the determination that this action does not have the potential for causing a significant effect on the environment (Section 15061(b)(3)); 2. Adopt the 2015 Municipal Service Review and Sphere of Influence Study for the eight public cemetery districts located entirely in Monterey County (Castroville Cemetery District; Cholame Valley Cemetery District; Gonzales Cemetery District; Greenfield Cemetery District; King City Cemetery District; San Ardo Cemetery District; San Lucas Cemetery District; and Soledad Cemetery District), and including a brief discussion of the Pajaro Valley Public Cemetery District for information only, as that multi-county District is under the jurisdiction of the Santa Cruz LAFCO, and 3. Affirm the currently adopted Spheres of Influence of the eight cemetery districts located entirely in Monterey County, with no changes. 4. Authorize the Executive Officer to proceed with implementing two follow-up actions: a. Develop a program of continuing educational and training outreach to assist special district staff and board members countywide, and b. Participate in developing a workshop with Greenfield-area local agencies—including the City of Greenfield, the County of Monterey, the Greenfield Cemetery, Fire Protection, Memorial, and Public Recreation Districts and other interested parties—to explore potential opportunities for greater efficiencies of service delivery. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 10 DISTRICT PROFILES This chapter contains a review of each of the eight cemetery districts located entirely within Monterey County. These districts are the: • Castroville Cemetery District; • Gonzales Cemetery District; • Soledad Cemetery District; • Greenfield Cemetery District; • King City Cemetery District; • San Lucas Cemetery District; • San Ardo Cemetery District, and • Cholame Valley Cemetery District. District profiles begin with an introductory section and a district map. They also include sections for District Boundaries and Sphere of Influence, Facilities and Services, Governance/Transparency and Accountability, Finance, Challenges and Opportunities and a Summary. The profile for the San Ardo Cemetery District is abbreviated because LAFCO has only limited information about this district. In addition, this chapter includes a summary profile of the Pajaro Valley Public Cemetery District. This district serves residents of North Monterey County, although it is primarily located in Santa Cruz County. The Pajaro Valley Public Cemetery District is under the jurisdiction of Santa Cruz LAFCO, which completed a Service and Sphere Review for it in April 2015. LAFCO of Monterey County 11 [This page left blank intentionally.] 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 12 Castroville Cemetery District 8442 Moss Landing Road, Moss Landing, CA 95039 831-633-5186 Castroville Cemetery District – At A Glance Formation Date December 1, 1952 Legal Authority Health & Safety Code, Sections 9000-9093 Five-member governing board whose members are appointed to four-year Board of Trustees terms by the Monterey County Board of Supervisors District Area Approximately 44.9 square miles Sphere of Influence Approximately 11.1 square miles beyond District boundaries Population (2010 est.) 13,024 (with an additional 6,143 in the Sphere of Influence) Budgeted Revenue $163,165 (FY 2015-16) Approximate Annual Revenue Per District $13 Resident General Manager Silvia Vazquez Employees One full-time general manager and one part-time maintenance worker Cemetery 8442 Moss Landing Road, Moss Landing INTRODUCTION The Castroville Cemetery District provides cemetery and burial services for the unincorporated communities of Castroville, Moss Landing, Prunedale, Oak Hills, and Elkhorn. Following formation, the District purchased two adjoining private cemeteries in Moss Landing, one affiliated with the Catholic Church and the other affiliated with Protestant churches. Upon purchase, the cemeteries were merged into a single public cemetery that continues to the serve the District. The District’s cemetery in Moss Landing is the only public cemetery in the North County area. The Cemetery accommodates 30 to 35 burials a year. The District General Manager estimates that the cemetery can accommodate interments for an additional 75 years. LAFCO of Monterey County 13 Moss Landing Cemetery 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 14 DISTRICT BOUNDARIES AND SPHERE OF INFLUENCE The Castroville Cemetery District covers approximately 45 square miles. The Pajaro Valley Public Cemetery District, which is primarily located in Santa Cruz County, borders the Castroville Cemetery District to the north. Portions of the Castroville Cemetery District originally included areas within the City of Marina, but these southern areas were detached in 1978. In 1983, the District’s Sphere of Influence was reduced to exclude land within the City of Marina’s Sphere of Influence. This reduction was made to indicate that while these areas remain in the District, they should be considered for detachment if and when the City annexes the area. This designation on lands within the District boundaries has been shown as a “Sphere Exclusion Area” in LAFCO maps since 1983. The District map in this report continues to show this designation consistent with the Commission’s 1983 direction.3 The Sphere of Influence beyond the District’s boundaries extends over approximately eleven square miles in unincorporated Prunedale and is home to over 6,000 residents. The District is not now considering the annexation of this area. Since the passage of Proposition 13 in 1978, there is little incentive for a cemetery district to request annexation because it brings no new tax revenues. There are also populated areas in Prunedale that are not within the boundaries of a cemetery district. A 2015 Santa Cruz LAFCO study noted that these areas are adjacent to both the Castroville and the Pajaro Valley Public Cemetery Districts and that LAFCO of Monterey County would be examining the possibility of expansion into that area by the Castroville Cemetery District. During the preparation of this service review, LAFCO raised the Castroville possibility of expansion of the Sphere of Moss Landing Influence to the Castroville Cemetery Cemetery District, and District Trustees chose not to pursue it because there would be no attendant tax benefits. This topic may be raised again in the future by one or both of the adjacent cemetery districts. FACILITIES AND SERVICES The District operates a single cemetery in the Moss Landing area on Moss Landing Road. Presently eight acres are developed. An additional five and a half acres to the west and rear of the property remain 3 One parcel is currently in the corporate boundaries of both the City of Marina and the Castroville Cemetery District. This City-owned 405-acre parcel, APN 031-111-036, was annexed to Marina following the City’s incorporation. Detachment from the District was not processed at the time of annexation. The effect of this overlap is negligible because the parcel is exempt from property taxation and is uninhabited. LAFCO of Monterey County 15 undeveloped. The availability of this land enables the District to estimate that it can accommodate interments for at least the next 75 years. The cemetery grounds include a 1,656 square foot office/chapel building, a niche wall for cremains and a maintenance shed. The Cemetery accommodates 30 to 35 burials a year. LAFCO’s 2006 Municipal Services Review noted that the District then accommodated 45 to 50 interments. The District Manager has stated that the decrease is due to societal changes that include an increase in cremations and the practice of scattering ashes. The California Central Coast Veterans Cemetery on the former Fort Ord may slightly reduce the demand for burials at Moss Landing. GOVERNANCE /TRANSPARENCY AND ACCOUNTABILITY The District is governed by a five-member Board of Trustees appointed by the Monterey County Board of Supervisors. The Board meets the second Tuesday of every month at 6:00 in the evening. Most meetings are held at the Castroville Public Library. Meeting agendas are posted in front of the District Office and at the Our Lady of Refuge Catholic Church. The District maintains a Policy Manual and Bylaws that were approved and adopted February 8, 2012. The manual includes a mission statement, general provisions and government and a section on personnel that includes job descriptions, duties and a code of conduct among others. District Trustees are current on the filing of the State-required conflict of interest disclosures (Form 700) and ethics training. The General Manager and Board of Trustees plan to add a reimbursement policy and new sick-leave law changes into the personnel section of the Policy Manual and Bylaws. The District maintains membership in the California Association of Public Cemeteries (CAPC), which allows District staff and Trustees to attend CAPC trainings to gain a greater understanding of best practices, industry standards and changes in State law. FINANCE Revenue sources include property taxes, user fees and interest on investments. The proportion of revenues derived from property taxes was budgeted at 48% for the current fiscal year. Most remaining revenues come from cemetery user fees. In the current fiscal year, approximately 56% of all District expenditures are budgeted for personnel expenditures for a general manager and maintenance worker. The District has no long-term debt. The District is behind in conducting audits of District finances but has continued to submit yearly financial statements to the State Controller’s Office and County Auditor as required by law. At the time of the writing of this report, the District has recently completed an audit for the year ending June 2012 and is in progress on audits through June 2015. The Castroville Community Foundation, started recently through the assistance of former Monterey County Supervisor Louis Calcagno, plans to fundraise for the District. As reported by a Trustee, the Foundation’s structure includes “pro bono” services by a local lawyer and an accountant. A single burial, including the lot, endowment fund, concrete vault, vault handling fee, opening and closing and sales tax costs between $3,256 and $3,556 depending on its location. The burial of a non-District resident would increase this fee by $600. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 16 Through Fiscal Year 2013-14, the District has had a healthy surplus of revenues over expenditures as shown in the table below. The District experienced a slight deficit in the last fiscal year. The District General Manager has identified two reasons for increased costs. The first is that the District has started an Castroville Cemetery District Summary of Revenues and Expenditures, Fiscal Years 2011-12 through 2015-16 Fiscal Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (Data Source) (audited) (audited) (unaudited) (unaudited) (unaudited) (budgeted) Revenues $ 158,810 165,524 141,586 187,555 138,879 163,165 Expenditures $ 79,746 96,118 114,231 122,672 142,295 163,165 NET $ 79,064 69,406 27,355 64,883 (3,416) 0 INCOME Lavorato and Darling, Inc., Castroville Cemetery District, Financial Statements and Independent Auditor’s Reports for the Years Ending June 30, 2012 and 2011, Castroville Cemetery District Profit & Loss Statement (FY 2013-14 and 2014-15), and District Fiscal Year 2015-16 budget. Amounts listed are from both the District’s “Government Fund” and “Fiduciary [Endowment] Fund.” ambitious program of capital improvements including adding gates and trees to the facility. Some of the costs for future capital improvements are now planned for Community Foundation funding, which will reduce the need for ongoing District expenditures. A second increase in expenses has been caused by unexpectedly high costs from the use of contract labor for interments. The District is currently exploring the addition of a staff maintenance worker that would reduce future expenses for contract labor. The table below contains information about the District’s assets. The District has used its significant net income from the early part of this decade to increase its assets. Net assets are an indicator of a District’s Castroville Cemetery District Summary of District Assets, Fiscal Years 2010-2011 through 2014-15 Fiscal Year Ending June 30, 2011 June 30, 2012 June 30, 2013 June 30, 2014 June 30, 2015 (Data Source) (audited) (audited) (unaudited) (unaudited) (unaudited) Current $ 301,836 372,907 418,036 476,080 449,700 Assets Total $ 353,372 424,361 472,514 526,741 515,781 Liabilities $ 66,012 66,012 67,677 85,451 77,923 Total Net Assets $ 123,799 287,360 356,684 387,063 448,818 Lavorato and Darling, Inc., Castroville Cemetery District, Financial Statements and Independent Auditor’s Reports for the Years Ending June 30, 2012 and 2011, Castroville Cemetery District Balance Sheet (FY 2013-14 and 2014-15). Assets listed are from both the District’s “Government Fund” and “Fiduciary [Endowment] Fund.” LAFCO of Monterey County 17 depth of financial resources. The District’s Fiscal Year 2014-15 balance sheet states that $191,066, or 43% of the District’s current assets, are kept in an endowment care fund. Only the interest earned on this State- required trust fund may be used for the care, maintenance, and embellishment of the cemetery. The endowment fund principal must be maintained in perpetuity and is not available to be spent. CHALLENGES AND OPPORTUNITIES Governance and Transparency: The Castroville Cemetery District is governed by a full Board of Trustees and operational policies in place. The District is encouraged to establish some presence on the web, potentially in conjunction with other districts, through a California Special Districts Association service, or independently. Shared Services and Other Partnerships: The District may achieve some organization or financial efficiencies by a sharing of personnel or resources with the adjacent Pajaro Valley Public Cemetery District or one of the other local special districts that provide recreation, water, sewer and harbor services. The District is broadening its fundraising ability through the recently established Castroville Community Foundation. Finance: The District prepares detailed financial reports, but has fallen behind in completing audits since June 30, 2012. The preparation of an audit can be a time-consuming and costly venture for a small district. The District has kept its expenses well within revenues for most of the past five years. Facilities: The 5 ½ acres of undeveloped land adjacent to the cemetery provide ample expansion area and capacity for the cemetery into the foreseeable future. The District has recently completed a niche wall to accommodate cremated remains. Boundaries and Sphere of Influence: The Castroville Cemetery District is the only cemetery district in Monterey County with the opportunity to expand its Sphere of Influence into populated areas or to annex adjacent areas that are within its existing Sphere of Influence. The District Board of Trustees is encouraged to continue to explore any opportunities for advantageous expansion. SUMMARY • The Castroville Cemetery District is providing efficient and effective service to the community through the operation of a single cemetery in the unincorporated Moss Landing community. • The District’s existing Sphere of Influence is adequate to meet the community’s needs. Expansion of the District’s Sphere in Prunedale may be considered in the future. • The District anticipates that it has adequate facilities to meet future needs for approximately at least an additional 75 years. • The District is governed by a full Board of Directors and has experienced a sizable surplus of revenues over expenditures for most of the past five years. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 18 Gonzales Cemetery District P.O. Box 674, Gonzales, CA 93926 831-678-3491 Gonzales Cemetery District – At A Glance Formation Date January 1, 1939 Legal Authority Health & Safety Code, Sections 9000-9093 Five-member governing board whose members are appointed to four-year Board of Trustees terms by the Monterey County Board of Supervisors District Area Approximately 153.4 square miles Sphere of Influence Approximately 7.7 square miles beyond District boundaries Population (2010 est.) 10,649 (with an additional 21 in the Sphere of Influence) Budgeted Revenue $98,000 (FY 2015-16) Approximate Annual Revenue Per District $9 Resident General Manager Dana Guidotti Two full-time caretakers and one on-call part-time caretaker. Financial Employees and recordkeeping work contracted to vendors. Cemetery South Alta Street (Old US Highway 101) at Gloria Court, Gonzales INTRODUCTION The District was established on January 1, 1939. It serves the Gonzales and Chualar area, and covers approximately 153 square miles. The District has a single cemetery located on South Alta Street at the southern tip of the City of Gonzales. There have been no changes to the District’s boundaries since 1983. The District accommodates approximately 25 interments a year. The District has at least twenty years of remaining capacity. LAFCO of Monterey County 19 Gonzales Cemetery 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 20 DISTRICT BOUNDARIES AND SPHERE OF INFLUENCE Since formation, the boundaries of the Gonzales Cemetery District have remained unchanged. In 1983, LAFCO created a Sphere of Influence for the District that filled in the gaps between the Gonzales and Soledad Cemetery Districts. The Sphere of Influence beyond the District’s boundaries is relatively small – 9.2 square miles – and is home to an estimated 21 people. These people would benefit from annexation by being eligible for in-District cemetery fees. There is, however, little incentive for a cemetery district to request annexation, because, since the passage of Proposition 13 in 1978, annexation brings no new tax revenues. The area served by the District is expected to grow significantly in coming years. The Association of Bay Area Governments (AMBAG) projects that the population of the City of Gonzales will grow from 8,187 to 19,333 between 2010 and 2035. This compound annual rate of 3.50% is almost five times the projected County-wide growth rate of 0.71%. This growth was facilitated by a significant expansion of the City’s Sphere of Influence in 2014. This is one of the highest growth rates in the County and would indicate the need for expanded District services in the future. In the preparation of this Service Review and Sphere of Influence Study, LAFCO staff made some minor technical corrections to the District’s map. These corrections are reflected in the map included within this review.4 There is limited potential to expand the District’s Sphere of Influence. Areas to the north are sparsely populated, and the Soledad Cemetery District is adjacent on the south. The District has no plans to expand its Sphere of Influence or annex any portion of its existing Sphere. Since the 1978 passage of Proposition 13, there is no financial incentive for a cemetery district to expand. LAFCO concurs with this assessment. FACILITIES AND SERVICES The Gonzales Cemetery District and the City of Gonzales recently exchanged ownership of parcels of land. The City obtained land immediately south of the cemetery that could be used for a future reconfiguration of the highway interchange. The Cemetery District received adjacent land to the north. The newly acquired land contains approximately two acres and will allow for logical expansion and many years of future capacity. The first burials occurred in the expansion area this year. With this expansion, the District estimates that it has at least 20 more years available for interments. The District is also discussing the construction of a wall that can contain niches for cremains to further extend the cemetery’s capacity. Gonzales Cemetery The District provides for approximately 25 burials in a year. The District provides burial spaces for residents, opening and closing services and grounds 4 Staff noted the 1983 designation of a “Sphere Exclusion Area” over an area that was identified as being within the boundaries of both the Gonzales and Soledad Cemetery Districts. This area was immediately east of the northern tip of the Soledad prisons. After a review of LAFCO and State Board of Equalization records, it was determined that this area was never within in the boundaries of the Gonzales Cemetery District. Staff also made a minor technical correction to eliminate a mapped overlap between the District’s Sphere of Influence and the Soledad Cemetery District’s corporate boundaries. The District map reflects all of these corrections. LAFCO of Monterey County 21 maintenance. The District operates with the two full-time workers and a part-time employee who is called in when there are multiple services at the same time. Accounting services and management of Board meetings are provided contractually. Changes in American interment practices, which include an increasing popularity of cremation and the scattering of ashes, are reducing the need for cemetery burials nationwide. Establishment of the California Central Coast Veterans Cemetery on the former Fort Ord may slightly lessen the demand for burials in other cemeteries in the region. GOVERNANCE /TRANSPARENCY AND ACCOUNTABILITY A five-member Board of Trustees appointed by the Board of Supervisors governs the Gonzales Cemetery District. Although one of these seats had gone unfilled for more than two years, it was recently filled. The Board meets regularly every other month at 6:00 P.M. at the Rabobank Community Room at 100 Alta Street in Gonzales. The District posts its agenda at both the cemetery and at Soledad City Hall. Board Members are current on filing Conflict of Interest disclosures (Form 700) and are working to complete any required ethics trainings. The Board plans to develop a reimbursement and compensation policy. The District has adopted a code of conduct, harassment policy, job descriptions and numerous rules and procedures particular to the operation of the cemetery, such as a customer payment policy, non- resident policy, memorial marker policy, flower placement and holiday schedule. The District has membership in the California Association of Public Cemeteries (CAPC), and the General Manager attends CAPC trainings which allow her to gain a greater understanding of best practices, industry standards and changes in State law. FINANCE The primary source of revenue for the Gonzales Cemetery District is a portion of the County’s one-percent property tax. This source is budgeted to bring in 44% of all District revenues in Fiscal Year 2015-16. The District receives additional revenues from user fees and interest on the District’s reserves. Expenditures include salaries, wages and benefits, and services and supplies. Sixty-two percent of the expenditures budgeted in the current fiscal year are for employee costs, the second higher proportion among cemetery district in the county. The District has no long-term debts. The General Manager files financial information yearly with the State Controller’s Office and the County of Monterey County Auditor-Controller. The District has not engaged an auditor since Fiscal Year 2009, although it is now looking at options for becoming current with this State requirement. In the last two fiscal years, the District has experienced an average deficit between revenues and expenditures of 26%. The District’s current fiscal year budget projects a 14% deficit for the current year. The District is aware of this problem and is exploring both fundraising and cost-cutting measures to make up the shortfall. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 22 Gonzales Cemetery District Summary of Revenues and Expenditures, Fiscal Years 2011-12 through 2015-16 Fiscal Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (Data Source) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (budgeted) Revenues $ 87,747 111,987 102,461 94,224 107,188 98,000 Expenditures $ 115,461 96,216 93,567 116,074 136,840 112,205 NET $ (27,714) 15,771 8,895 (21,849) (29,652) (14,205) INCOME Unaudited District Profit and Loss Statement (FY 2010-11 through 2014-15); District budget (FY 2015-16). “Net Income” is “Net Ordinary Income, which includes expenditures for depreciation, but not capital improvements. A single burial, including the plot, endowment care, vault, and opening and closing costs $2,350. The burial of a non-District resident would increase this fee by $850. The second table presents a summary of District assets. Assets are an indicator of a District’s depth of financial resources. The District’s Fiscal Year 2014-15 balance sheet states that $29,966, or 69% of the District’s current assets, are kept in an endowment care fund. Only the interest earned on this State- required trust fund may be used for the care, maintenance and embellishment of the cemetery. The endowment fund principal must be maintained in perpetuity and is not available to be spent. The table indicates that while the District may currently have adequate resources, these are being eroded by the recent inability of resources to cover expenditures. Gonzales Cemetery District Summary of District Assets, Fiscal Years 2010-2011 through 2014-15 Fiscal Year Ending June 30, 2011 June 30, 2012 June 30, 2013 June 30, 2014 June 30, 2015 (Data Source) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current $ 216,683 220,364 232,971 214,851 187,328 Assets Total $ 285,971 301,647 310,288 292,633 269,116 Liabilities $ 12,057 11,961 11,787 16,326 22,462 Total Net Assets $ 273,915 289,686 298,501 276,307 246,654 Unaudited District Balance Sheets. LAFCO of Monterey County 23 CHALLENGES AND OPPORTUNITIES Governance and Transparency: Efforts should be made to fill the vacant seat that has existed on the Board of Trustees for several years. The District is encouraged to establish some presence on the web, possibly in conjunction with other districts, through a California Special Districts Association service or independently. The District General Manager welcomed the templates and examples of policies, procedures and by-laws that LAFCO shared with the District and intends to work with the Board of Trustees in crafting documents to fit the District’s needs. Shared Services and Other Partnerships: The District currently shares the contractual services of a General Manager with the adjacent Soledad Cemetery District. Other cost saving measures may be explored including the sharing of staffing and equipment with other cemeteries, special districts or the City of Soledad. Finance: The District has experienced deficits in three of the last five fiscal years, and further deficits are anticipated in the current fiscal year budget. A better understanding of District finances would be possible if audits had been conducted over the past six years as required by State law. The District is exploring fundraising to help pay expenditures. Trustees may also want to explore additional cost reductions. SUMMARY • The Gonzales Cemetery District is providing efficient and effective service to the community through the operation of a single cemetery in the City of Gonzales. • The existing District Sphere of Influence is adequate to meet the community’s needs. • Significant population growth is anticipated within the District boundaries in coming decades. The District is positioned to respond to this increased demand for services. • The District anticipates that it has adequate facilities to meet future needs for at least twenty years. • There remains a vacancy on the District Board of Trustees. The District is encouraged to increase efforts to recruit an individual to fill this opening. • The District has not conducted a financial audit of its operations since 2009. Audits provide much- needed information to the public concerning the financial condition of a District. • The District has experienced financial deficits in three of the past five years and projects an additional deficit in the current year budget. LAFCO encourages the District to take steps to reduce expenditures or increase revenues to reverse this trend. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 24 Soledad Cemetery District 1711 Metz Road, (PO Box 56), Soledad, CA 93960 831-678-3491 Soledad Cemetery District – At A Glance Formation Date June 14, 1937 Legal Authority Health & Safety Code, Sections 9000-9093 Five-member governing board whose members are appointed to four-year Board of Trustees terms by the Monterey County Board of Supervisors District Area Approximately 209.7 square miles Sphere of Influence Approximately 66.5 square miles beyond District boundaries 27,431 (with an additional 272 in the Sphere of Influence) Population (2010 est.) 17,328 (excluding the institutional population in State prisons) Budgeted Revenue $131,300 (FY 2015-16) Approximate Annual Revenue Per District $5 ($8 excluding the institutional population in State prisons) Resident General Manager Dana Guidotti One supervisory groundskeeper and two part-time maintenance workers. Employees Financial and management work contracted. Cemetery 1761 Metz Road, Soledad INTRODUCTION The District was formed on June 14, 1937 to serve the southern Salinas Valley. The District maintains one cemetery within the City of Soledad and conducts approximately 30 interments a year. The District estimates that it has another twenty years of burial capacity remaining. LAFCO of Monterey County 25 Soledad Cemetery 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 26 DISTRICT BOUNDARIES AND SPHERE OF INFLUENCE When the District was formed in 1937, it covered an area of approximately 322 square miles. In 1938, a large sparsely populated area east of Greenfield was removed from the boundary. In 1983, an additional area that extended to the Big Sur coast was removed from the District’s boundaries and assigned to the Sphere of Influence. This area included federally-owned areas of the Los Padres National Forest. The Sphere of Influence beyond the District boundaries today is relatively large – 66.5 square miles – although it is home to only approximately 272 people. These people would benefit from annexation by being eligible for in-District cemetery fees. There is, however, little incentive for the District to request annexation because it would receive no additional tax revenues for this expansion. The Salinas Valley area served by the District is expected to grow significantly in coming years. The Association of Bay Area Governments (AMBAG) projects that the population of the City of Soledad will increase from 25,738 to 33,628 between 2010 and 2035. This growth is at a compound annual rate of 1.08%. While this rate is higher than the County-wide projection of 0.71%, it is lower than for surrounding municipalities. The percent increase would be significantly higher rate if the institutional prison population were factored out of the equation5. The District has no plans to expand its Sphere of Influence or annex any portion of its existing Sphere. Since the 1978 passage of Proposition 13, there is no financial incentive for a cemetery district to expand its boundaries. LAFCO concurs with this assessment. The adjacent boundaries of the Gonzales and Greenfield Cemetery Districts limit the potential for expansion of the District Sphere of Influence. FACILITIES AND SERVICES The original cemetery on Metz Road was 8.5 acres in size. The District purchased adjacent acres in 1957 to increase the total acreage to eleven. In order to better utilize space at the Soledad Cemetery cemetery, the District recently processed a request through the courts to “reclaim” plots that had been inactive for at least 50 years. California law provides a judicial process to allow the resale of abandoned plots. With this move, the District estimates that it has another twenty years of capacity remaining. The District has stated that another two acres of property adjacent to the cemetery may be donated by a land owner and developer. While this donation is not a definite thing, and while potential flooding issues need to be addressed, this donation would increase the cemetery’s service life and capacity. 5 The combined population of the adjacent Correctional Training Facility and the Salinas Valley State Prison, which are in the Soledad City limits, was estimated to be 10,103 in 2010. This number of inmates is at, or near, capacity for the two facilities. No significant increase in the institutional population is anticipated. Inmates are not frequently buried at the Soledad Cemetery. LAFCO of Monterey County 27 The District estimates that it accommodates approximately 30 interments a year. The District provides burial space, maintenance of cemetery grounds, and opening and closing services. The District has embarked on a capital improvement program, some of which were financed through fundraising efforts of the Committee for the Beautification of the Soledad Cemetery. The Committee became inactive and was dissolved by the District in 2014. The District has one full-time position that includes the duties of grounds maintenance, sales and customer service. The position was recently filled following a long vacancy. A clerical person is employed part-time. Financial and management services are provided on a contractual basis. Changes in American interment practices, which include an increasing popularity of cremation and the scattering of ashes, are reducing the need for cemetery burials nationwide. Establishment of the California Central Coast Veterans Cemetery on the former Fort Ord may slightly lessen the demand for burials in other cemeteries in the region. GOVERNANCE /TRANSPARENCY AND ACCOUNTABILITY A five-member Board of Trustees appointed by the Board of Supervisors governs the District. There are currently no vacancies on the Board. Regular meetings occur every second Thursday or the month at 8:30 in the morning in the City Council Chambers at 248 Main Street. The District posts agendas for these meetings at the cemetery and Soledad City Hall. Trustees are current with filing State-mandated Conflict of Interest Forms (Form 700s). Trustees are also receiving State-designed training in ethics. The District adopted an employee handbook in August of 2010. The handbook addresses required policies, hiring, leaves of absence, benefits, management, District property, employee conduct, wages, safety and health, and termination. The District also maintains a conflict of interest code and family plot regulations and policies. The District maintains membership in the California Association of Public Cemeteries (CAPC), which allows District staff and Trustees to attend CAPC trainings and to gain a greater understanding of best practices, industry standards and changes in State law. FINANCE The District received 44% of its revenues from property taxes. Other sources of revenue include user fees and interest on the District’s investments. Expenditures include salaries, wages and benefits, and services and supplies. The District devotes 47% of expenditures to employee costs. In 2011, the District took out a loan to finance a tractor to replace one that was stolen. The District is authorized to conduct biennial audits. The District completed its last audit for the two-year period ending on June 30, 2013. The preparation of an audit for the period ending on June 30, 2015 is now underway. A single burial, including the plot, endowment care, vault, and opening and closing costs $2,200 or $2,450 for a reclaimed grave site. The burial of a non-District resident would increase this fee by $1,000 or $150 if the deceased has a family member in the District boundaries. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 28 Expenditures in the last two fiscal years exceeded revenues by over $70,000, or 27% of revenues. This loss was caused by increases in employee health insurance, salary increases and a large purchase of vaults for future needs. The District has adopted a balanced budget that limits expenditures to anticipated revenues. Soledad Cemetery District Summary of Revenues and Expenditures, Fiscal Years 2011-12 through 2015-16 Fiscal Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (Data Source) (audited) (audited) (audited) (unaudited) (unaudited) (budgeted) Revenues $ 130,342 129,747 136,426 124,334 137,032 131,300 Expenditures $ 121,766 138,482 132,746 168,703 159,930 131,300 NET INCOME $ 8,576 (8,735) 3,680 (44,369) (26,191) 0 Hayashi and Wayland, Soledad Cemetery District, Basic Financial Statements for the Years Ending June 30, 2013 and 2012, Soledad Cemetery District Profit & loss Statement (FY 2014-15), and District Fiscal Year 2015-16 budget. The table below outlines the District’s assets. Assets serve as an indicator of a District’s depth of financial resources. The District’s Fiscal Year 2014-15 balance sheet states that $143,265, or 66% of the District’s current assets, are kept in an endowment care fund. Only the interest earned on this State-required trust fund may be used for the care, maintenance and embellishment of the cemetery. The endowment fund principal must be maintained in perpetuity and is not available to be spent. Soledad Cemetery District Summary of District Assets, Fiscal Years 2010-2011 through 2014-15 Fiscal Year Ending June 30, 2011 June 30, 2012 June 30, 2013 June 30, 2014 June 30, 2015 (Data Source) (audited) (audited) (audited) (unaudited) (unaudited) Current $ 239,109 228,616 222,239 202,202 218,371 Assets Total $ 320,662 343,843 348,767 314,046 298,445 Liabilities $ 38,193 70,109 71,353 65,000 50,361 Total Net Assets $ 282,469 273,734 277,414 249,046 248,084 Hayashi and Wayland, Soledad Cemetery District, Basic Financial Statements for the Years Ending June 30, 2013 and 2012 and Soledad Cemetery District Balance Sheet (FY 2014-15). The District carries a long-term debt for the purchase of equipment. This debt requires annual expenditures of approximately $5,700 and will be retired in 2016. LAFCO of Monterey County 29 CHALLENGES AND OPPORTUNITIES Governance and Transparency: The Soledad Cemetery District is governed by a full Board of Trustees, and operational policies are in place. The District General Manager is considering the creation of a website to give the District greater public visibility. Paying for a website could potentially be a shared cost with another cemetery district or districts. Alternately, a low-cost website could be crafted through a program offered by the California Special Districts Association or another organization. Shared Services and Other Partnerships: The District currently shares the contractual services of a General Manager with the adjacent Gonzales Cemetery District. Other cost saving measures may be explored. Finance: Capital improvement expenditures have stretched the budget in the last few years. The District is the only cemetery district in the County with long-term debt, although this debt is scheduled to be retired in 2016. Facilities: The District is interested in the potential donation of two additional acres of land adjacent to the cemetery. In addition to other moves already taken, this would increase the District’s future interment capacity. SUMMARY • The Soledad Cemetery District is providing efficient and effective service to the community through the operation of a single cemetery in the City of Soledad. • The existing District Sphere of Influence is adequate to meet the community’s needs. • Significant population growth is anticipated within the District boundaries in coming decades. The District is positioned to respond to this increased demand for services. • The District anticipates that it has adequate facilities to meet future needs for approximately twenty years. • The District has experienced financial deficits in three of the past five years. LAFCO encourages the District to take steps to reduce expenditures or increase revenues to reverse this trend. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 30 Greenfield Cemetery District P.O. Box 216, Greenfield, 93927 831-674-2254 or 831-674-5562 Greenfield Cemetery District – At A Glance Formation Date November 8, 1943 Legal Authority Health & Safety Code, Sections 9000-9093 Five-member governing board whose members are appointed to four-year Board of Trustees terms by the Monterey County Board of Supervisors District Area Approximately 102.4 square miles Sphere of Influence Same as District Boundaries Population (2010 est.) 17,411 Budgeted Revenue $108,200 (FY 2015-16) Approximate Annual Revenue Per District $6 Resident President Theresa Scattini Employees A caretaker and one part-time worker Holy Trinity Cemetery: Elm Avenue and 10th Street, Greenfield Cemeteries Oak Park Cemetery: Elm Avenue, 2 miles east of Greenfield at Espinoza Road Webpage http://ci.greenfield.ca.us/index.aspx?page=341 INTRODUCTION The Greenfield Cemetery District was formed on November 8, 1943 to serve the Greenfield area. The District maintains two cemeteries. One is located in the City of Greenfield on Elm Street near Holy Trinity Church, and the other is located two miles out of town on Elm Street adjacent to Oak Park. The District accommodates approximately 30 interments in the average year. The District estimates that there are five years of capacity remaining at Holy Trinity and unlimited capacity remaining at Oak Park. LAFCO of Monterey County 31 Oak Park Cemetery Holy Trinity Cemetery 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 32 DISTRICT BOUNDARIES AND SPHERE OF INFLUENCE The Greenfield Cemetery District has boundaries that are coterminous with the Greenfield Public Recreation District, both encompassing 102 square miles. The Greenfield Memorial District also shares territory within these two districts but contains only 42 square miles. There have been no changes to the boundaries of the Greenfield Cemetery District since its formation. The Cemetery District’s Sphere of Influence is also the same as the District boundaries. The area served by the District is expected to grow significantly in coming years. The Association of Bay Area Governments (AMBAG) projects that the City of Greenfield will grow from a population of 16,330 to 23,609 between 2010 and 2035. This would increase the City’s population at a compound annual rate of 1.49%, which is more than double the estimated County- wide growth rate of 0.71%. Holy Trinity Cemetery The District has no plans to expand its Sphere of Influence or annex any portion of its existing Sphere. Since the 1978 passage of Proposition 13, there is no financial incentive for a cemetery district to expand its boundaries. LAFCO concurs with this assessment. The adjacent boundaries of the Soledad and King City Cemetery Districts also limit the potential for expansion of the District Sphere of Influence. FACILITIES AND SERVICES The Greenfield Cemetery District provides burial space, maintenance of cemetery grounds and opening and closing services. The District has one full-time groundskeeper position. When more than one interment is scheduled on a given day, the District requests assistance from the King City Cemetery District. The King City Cemetery District provides this support to several of the small cemetery districts. The District anticipates that the Holy Trinity Cemetery, within the City Limits, only has about five years of capacity left. The Board of Trustees is considering ways extend the cemetery’s capacity and better accommodate cremated remains by acquiring several adjacent undeveloped acres. This land is in the back of Holy Trinity Oak Park Cemetery Catholic Church property. If the City allows this property to be used as a cemetery, the District will begin negotiations with the church. LAFCO of Monterey County 33 The District recently constructed a storage shed at the rear of the Holy Trinity Cemetery. The District estimates that the older cemetery at Oak Park has a remaining capacity of at least 20 to 30 years. Together the District’s two cemeteries accommodate approximately 30 interments a year. Changes in American interment practices, which include an increasing popularity of cremation and the scattering of ashes, are reducing the need for cemetery burials nationwide. Establishment of the California Central Coast Veterans Cemetery on the former Fort Ord may slightly lessen the demand for burials in other cemeteries in the region. GOVERNANCE /TRANSPARENCY AND ACCOUNTABILITY A five-member Board of Trustees appointed by the Board of Supervisors governs the District. While there are currently no vacancies, Board Members commented that it is often difficult to recruit new Members when a vacancy does occur. It was also expressed that training is needed for new Board Members and that new appointees do not benefit from a focused orientation or description of their duties. Trustees are current on filing the State-required conflict of interest disclosures (Form 700) and are working to complete any needed ethics training. The Board meets every second Monday of the month in the Community Room of the TNT Insurance Agency at 140 El Camino Real, Greenfield. The District posts meeting agendas at the Greenfield City Hall. A few years ago, a joint meeting was held by the Greenfield Cemetery and Public Recreation District Boards. The purpose of this meeting was to explore the potential of sharing services and a possible merger of boards and governance structures. Through the middle of 2014, the two districts equally shared the salary of a groundskeeper. A sharing of services could be financially advantageous to both districts. The District is reviewing and updating its bylaws, rules and regulations. The District maintains membership in the California Association of Public Cemeteries (CAPC). This membership allows District staff and Trustees to attend CAPC trainings and to gain a greater understanding of best practices, industry standards and changes in State law. FINANCE Revenues include property taxes, user fees and interest on District funds. Of these sources, property taxes constituted 38% of all revenues budgeted in Fiscal Year 2015-16. This is one of the lowest proportion of revenues from property taxes for any cemetery district in Monterey County. District Trustees plan to meet with Monterey County officials to explore ways the District can receive a larger portion of the area’s taxes. Most remaining revenues come from cemetery user fees. Half of all expenditures budgeted in the current fiscal year are for personnel costs. The District does not maintain debt and was recently able to purchase and construct a storage shed at the Holy Trinity Cemetery through reserves. According to one Board Member when burials drop below 22, from the average of 30, finances become tight and the district has to find cost savings. The difference in revenue can be seen between Fiscal Years 2011- 12 and 2012-13 when the number of plot sales increased from 21 to 36. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 34 A single burial, including the grave site, endowment fund, vault and opening and closing costs $1,870. The burial of a non-District resident would increase costs by $495. Greenfield Cemetery District Summary of Revenues and Expenditures, Fiscal Years 2011-12 through 2015-16 Fiscal Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (Data Source) (audited) (audited) (unaudited) (unaudited) (unaudited) (budgeted) Revenues $ 125,883 91,674 128,516 102,400 129,766 108,200 Expenditures $ 104,050 84,169 102,473 106,371 133,431 117,200 NET INCOME $ 21,833 7,505 26,043 (3,971) (3,665) (9,000) Hayashi and Wayland, Greenfield Cemetery District, Basic Financial Statements for the Years Ending June 30, 2012 and 2011, Greenfield Cemetery District Profit & Loss Statement (FY 2012-13 through 2014-15), and District Fiscal Year 2015-16 budget. The District is scheduled to conduct biennial audits, although the last one prepared was for the two years ending June 30, 2012. The District needs to complete its audit for the two years ending June 30, 2014 to be current. This audit is now in the final stages of production. The District has had to increase their expenditures in recent years to buy a truck and other tools. The District previously shared this equipment with the Greenfield Public Recreation District. The table below outlines the District’s assets. Assets can be an indicator of a District’s depth of financial resources. The District has stated that it has $127,112, or 60% of the District’s current assets, in a restricted endowment care fund. Only the interest earned on this State-required trust fund may be used for the care, maintenance and embellishment of the cemetery. The endowment fund principal must be maintained in perpetuity and is not available to be spent. Greenfield Cemetery District Summary of District Assets, Fiscal Years 2010-2011 through 2014-15 Fiscal Year Ending June 30, 2011 June 30, 2012 June 30, 2013 June 30, 2014 June 30, 2015 (Data Source) (audited) (audited) (unaudited) (unaudited) (unaudited) Current $ 202,175 208,895 241,544 245,433 210,981 Assets Total $ 283,704 285,829 305,616 302,500 296,225 Liabilities $ 35,053 29,673 21,706 22,683 19,892 Total Net Assets $ 248,651 256,156 283,910 279,817 276,333 Hayashi and Wayland, Greenfield Cemetery District, Basic Financial Statements for the Years Ending June 30, 2012 and 2011 and Greenfield Cemetery District Balance Statement (FY 2012-13 through 2014-15). LAFCO of Monterey County 35 CHALLENGES AND OPPORTUNITIES Governance and Transparency: The Greenfield Cemetery District is governed with a full Board of Trustees and operational policies in place. The District is the only cemetery district in the County with an established presence on the web, which is provided through the cooperation of the City of Greenfield. Shared Services and Other Partnerships: The District has a history of sharing services with the Greenfield Public Recreation District, and continues to obtain water from that district for the Oak Park Cemetery. The District obtains interment assistance from the King City Cemetery District when the need arises. The Cemetery District may want to consider if it could benefit from a reinstating a sharing of services with the Recreation District. Alternately there may be cost efficiencies to working with the City of Greenfield, the Greenfield Memorial District, the Greenfield Fire Protection District or adjacent cemetery districts. The large number of local public agencies in the Greenfield area allows for synergies and opportunities for collaboration that do not exist in other areas. Finance: Over the past five years the District has able to pay its expenditures with available revenues, although some years the District experiences a shortfall of revenues compared to expenses. The District will be seeking new or additional ways to supplement its revenue. As an early step, Trustees plan to consider a fee increase of approximately 20% in coming months. The District audit for the two-year period ending June 30, 2014 needs to be completed to meet State requirements. Facilities: The District is pursuing the acquisition of additional land adjacent to Holy Trinity Cemetery. SUMMARY The Greenfield Cemetery District maintains two cemeteries, one which is historically Catholic and the other historically Protestant. Efforts are underway to expand the Holy Trinity Cemetery to meet future community needs. The Board of Trustees currently has no vacancies. While the District has recently had some deficits in expenditures over revenues, these losses are eclipsed by earlier surpluses. • The Greenfield Cemetery District is providing efficient and effective service to the community through the operation of a two cemeteries in the City of Greenfield. • The existing District Sphere of Influence is the same as the District boundaries and is adequate to meet the community’s needs. • Significant population growth is anticipated within the District boundaries in coming decades. The District is positioned to respond to this increased demand for services. • The District anticipates that it has adequate facilities to meet future needs for an indefinite period, although the acquisition of additional land adjacent to Holy Trinity Cemetery is necessary to allow this property to continue to accommodate interments into coming decades. • The District has recently experienced some financial deficits. The District is encouraged to implement measures to ensure that expenditures are kept within revenue. • Additional cooperation with other Greenfield area local agencies may yield cost efficiencies and an overall improvement in government service. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 36 King City Cemetery District 1000 Broadway, King City 831-385-6968 King City Cemetery District – At A Glance Formation Date November 6, 1939 Legal Authority Health & Safety Code, Sections 9000-9093 Five-member governing board whose members are appointed to four-year Board of Trustees terms by the Monterey County Board of Supervisors District Area Approximately 204.1 square miles Sphere of Influence Approximately 53.4 square miles beyond District boundaries Population (2010 est.) 15,760 (with an additional 595 in the Sphere of Influence) Budgeted Revenue $245,521 (FY 2015-16) Approximate Annual Revenue Per District $16 Resident General Manager Jose Galindo Employees One groundskeeper; one manager/groundskeeper; one part-time secretary Cemetery 1010 Broadway Street, King City INTRODUCTION The King City Cemetery was started in July 1898 by the San Bernabe Lodge #358, Independent Order of the Odd Fellows. The King City Cemetery District was organized in 1939. The District’s one cemetery accommodates approximately 50 to 55 burials a year. Based on the maps, undeveloped acreage and historical burials rates, the District estimates that the remaining capacity of the existing cemetery is 25 to 35 years with an additional 150 years in four undeveloped acres. The District also provides staffing and other assistance to a number of cemetery districts in the region. LAFCO of Monterey County 37 King City Cemetery 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 38 DISTRICT BOUNDARIES AND SPHERE OF INFLUENCE Since formation in 1939, there have been no changes to the District boundaries. In 1983, LAFCO created a District Sphere of Influence of approximately 53 square miles around Lockwood. This Sphere, beyond the District’s boundaries, is home to an estimated 595 people. The area served by the District is expected to grow significantly in coming years. The Association of Bay Area Governments (AMBAG) projects that the City of King will grow from a population of 12,874 to 18,620 between 2010 and 2035. This growth would increase the City’s population at a compound annual rate of 1.49%, which is more than double the estimated County-wide growth rate of 0.71%. In the preparation of this Service Review and Sphere of Influence Study, LAFCO staff also made a minor technical correction to eliminate mapped overlaps between the District’s Sphere of Influence and the corporate boundaries of the San Lucas and San Ardo Cemetery Districts. These corrections are reflected in the District map. The District has no plans to expand its Sphere of Influence or annex any portion of its existing Sphere. Since the 1978 passage of Proposition 13, there is no financial incentive for a cemetery district to expand. LAFCO concurs with this assessment. The adjacent boundaries of the Greenfield and San Lucas Cemetery Districts also limit the potential for expansion of the District Sphere of Influence. FACILITIES AND SERVICES The King City Cemetery at 1010 Broadway Street is approximately 14 acres in size. The latest improvement to this facility is a rear access road funded through the District’s general fund. Opposite the new access road, and to the north of the developed cemetery, is an undeveloped area owned by the District that may be used for expansion. Other improvements at the cemetery include an office, a shop, restroom and garage for equipment. A King City niche wall has been added Cemetery to accommodate cremains. The District may begin offering double-depth graves to increase the cemetery’s capacity. The procedure, and the addition of four acres to the cemetery, are estimated to give the cemetery a remaining capacity of around 150 years. The District is considering investing in several new facilities: a non-denominational chapel to allow on- site ceremonies to during inclement weather, a new memorial on the cemetery grounds and possibly an ossuary for mixed cremains. LAFCO of Monterey County 39 The District provides burial space, maintenance of cemetery grounds and opening and closing services. The King City Cemetery District assists the San Lucas and San Ardo Cemetery Districts. The King City Cemetery District also helps with equipment and staff at private cemeteries. Approximately 50 to 55 burials occur at the cemetery every year. The District also owns and uses a state-of-the-art computerized cemetery record keeping and mapping program (Pontem Cemetery Data Manager). Changes in American interment practices, which include an increasing popularity of cremation and the scattering of ashes, are reducing the need for cemetery burials nationwide. Establishment of the California Central Coast Veterans Cemetery on the former Fort Ord may slightly lessen the demand for burials in other cemeteries in the region. GOVERNANCE /TRANSPARENCY AND ACCOUNTABILITY The District is governed by five Trustees, and each is current on the State-mandated ethics training. District Trustees are current with filing their State-mandated conflict-of-interest disclosures and are current on the required ethics training. The District is a member of the California Association of Public Cemeteries (CAPC). Both Trustees and consultant staff have attended CAPC trainings to increase their understanding of best practices, industry standards and changes in State law. The District has prepared an Employee Handbook and is now working to update its policies and procedures and create by-laws. The terms of two trustees ended in July 2015 and the filling of these positions have not been completed, although at least one of the two individuals who had filled these positions is interested in continuing service. The District General Manager does not anticipate that these positions will be vacant long. The Board of Trustees meets the second Friday of every month at noon at the Cemetery District office. The District posts meeting agendas at District office. FINANCE District revenues include property taxes, user fees and interest on District funds. The largest source of revenue is property taxation, which in the Fiscal Year 2015-16 budget accounts for 58% of all revenue. Most remaining revenues come from cemetery user fees. Expenditures include salaries, wages and benefits, and services and supplies. Employee costs total 65% of all costs, the highest percentage among cemetery districts in the County. The District does not maintain a debt. To control expenditures, the District is considering changing its health insurance and worker’s compensation carrier. The District is also authorized to conduct biennial audits that may result in some cost savings compared to an annual audit. The next audit will cover the two years ending on June 30, 2015. A single burial, including the lot, endowment fund, concrete vault, vault handling fee, and opening and closing costs approximately $1,850. The burial of a non-District resident would increase this fee by $500. Information about the District’s revenues and expenditures are shown in the following table. The District has experienced an increasing surplus of revenues over income for each of the last four years. The current fiscal year budget continues the expectation of a budget surplus. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 40 King City Cemetery District: Summary of Revenues and Expenditures, Fiscal Years 2011-12 through 2015-16 Fiscal Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (Data Source) (audited) (audited) (audited) (unaudited) (unaudited) (budgeted) Revenues $ 224,851 222,745 258,173 242,653 245,521 245,521 Expenditures $ 220,568 211,131 234,216 225,426 220,872 220,872 NET INCOME $ 4,283 11,614 23,957 17,228 24,649 24,649 Hayashi and Wayland, King City Cemetery District, Basic Financial Statements for the Years Ending June 30, 2013 and 2012, King City Cemetery District Profit & Loss Statement (FY 2013-14 and 2014-15), and District Fiscal Year 2015-16 budget (based on 2014-15 actuals). The table below shows the District’s assets which are an indicator of the District’s financial strength. The District’s Fiscal Year 2014-15 balance sheet states that $342,010, or 65% of the District’s current assets, is kept in an endowment care fund. Only the interest earned on this State-required trust fund may be used for the care maintenance, and embellishment of the cemetery. The endowment fund principal must be maintained in perpetuity and is not available to be spent. King City Cemetery District Summary of District Assets, Fiscal Years 2010-2011 through 2014-15 Fiscal Year Ending June 30, 2011 June 30, 2012 June 30, 2013 June 30, 2014 June 30, 2015 (Data Source) (audited) (audited) (audited) (unaudited) (unaudited) Current $ 468,497 455,128 478,736 497,128 523,253 Assets Total $ 715,073 725,268 752,561 770,951 797,076 Liabilities $ 22,947 7,975 6,556 9,892 11,052 Total Net Assets $ 92,126 707,098 718,712 742,669 759,899 Hayashi Wayland King City Cemetery District Basic Financial Statements for the Years Ending June 30, 2013 and 2012, unaudited District Balance Sheet for Years ending June, 30 2015 and 2014. CHALLENGES AND OPPORTUNITIES Governance and Transparency: The King City Cemetery District is governed by a full Board of Trustees, and operational policies are in place. The District is encouraged to establish some presence on the web, possibly in conjunction with other cemetery districts, through a California Special Districts Association service, or independently. Shared Services and Other Partnerships: The District currently provides contractual interment services to other neighboring districts. The District is the only Monterey County cemetery district that has equipment and staffing levels needed to provide this assistance. The District is a role model for the provision of cemetery services and provides assistance to other districts in need. LAFCO of Monterey County 41 Facilities: The District offers a range of improvements and is planning to expand to meet expected community needs. Planned improvements include an interfaith chapel and a new memorial. SUMMARY The King City Cemetery District is a financially solvent district that owns and maintains a single cemetery. The District has adequate land for expansion and is considering investing in several new facilities. • The King City Cemetery District is providing efficient and effective service to the community through the operation of a single cemetery in the King City. • The existing District Sphere of Influence is adequate to meet the community’s needs. • Significant population growth is anticipated within the District boundaries in coming decades. The District is positioned to respond to this increased demand for services. • The District anticipates that it has adequate facilities to meet future needs for approximately 25 to 30 years. • There are currently two vacancies on the Board of Trustees. The District does not anticipate that these positions will remain vacant long. • The District regularly experiences surpluses of revenue over expenditures and laudably assists other cemeteries with interments and operations. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 42 San Lucas Cemetery District P.O. Box 115, San Lucas, CA 93954 831-382-4426 San Lucas Cemetery District – At A Glance Formation Date December 3, 1974 Legal Authority Health & Safety Code, Sections 9000-9093 Five-member governing board whose members are appointed to four-year Board of Trustees terms by the Monterey County Board of Supervisors District Area Approximately 191.4 square miles Sphere of Influence Same as the District boundaries Population (2010 est.) 822 Budgeted Revenue $16,190 (FY 2015-16) Approximate Annual Revenue Per District $20 Resident Board Contact Estella Ramirez and Linda Larson Employees None San Lucas Cemetery, at the northeast corner of the intersection of Cemetery Cattlemen Road and Highway 198 INTRODUCTION The San Lucas Cemetery was established in 1890. Upon formation of the San Lucas Cemetery District on December 3, 1974, the Knights of Pythias Lodge deeded the cemetery to the District. As part of the reactivation of the cemetery, the District initiated a series of improvements that included the installation of a water tank, building a fence and landscaping. The cemetery is the location of two or three burials a year. The District has an estimated that it has at least 20 or 30 years of remaining capacity. LAFCO of Monterey County 43 San Lucas Cemetery 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 44 DISTRICT BOUNDARIES AND SPHERE OF INFLUENCE The District covers approximately 190 square miles, and approximately 822 people reside within its boundaries. Since 1974, there have been no changes to the District Boundaries. The District’s Sphere of Influence is coterminous with District boundaries and was established by LAFCO in 1983. The rural community of San Lucas is not anticipated to grow substantially in coming years. The District has no plans to expand its Sphere of Influence or annex any portion of its existing Sphere. Since the 1978 passage of Proposition 13, there is no financial incentive for a cemetery district to do so. LAFCO concurs with this assessment. The adjacent boundaries of the King City and San Ardo Cemetery Districts also limit the potential for expansion of the District Sphere of Influence. FACILITIES AND SERVICES While the San Lucas Cemetery parcel is more than eight acres in size, the area available for the cemetery includes only about three acres. A Union Pacific Railroad easement and tracks cover a large portion of the property. The District recently completed some long-deferred grounds cleanup and maintenance, placed new fencing at the driveway entrance and completed construction of a small storage shed building. The District originally sold cemetery plots as family group plots. However, since space in the developed portion of the cemetery is limited only single plots are now being sold. The District has no staff and obtains landscaping and San Lucas Cemetery maintenance services through a contract. The District experiences no more than two or three interments in an average year. When a burial service is needed, the King City Cemetery District is called upon by one of the Trustees to assist. The King City Cemetery District has provided such assistance to the San Lucas Cemetery District for decades. Changes in American interment practices, which include an increasing popularity of cremation and the scattering of ashes, are reducing the need for cemetery burials nationwide. Establishment of the California Central Coast Veterans Cemetery on the former Fort Ord may slightly lessen the demand for burials in other cemeteries in the region. LAFCO of Monterey County 45 GOVERNANCE /TRANSPARENCY AND ACCOUNTABILITY The District is governed by five Trustees, who are appointed by the Monterey County Board of Supervisors. Only three Trustees are presently seated, and the two vacancies have existed for several years. The Board meets on the third Wednesday of the month at 4:00 pm at the office of the San Lucas Water District. The District posts meeting agendas at the San Lucas Post Office. Trustees are completing their State-required conflict of interest disclosure forms (Form 700s). The District has expressed interest in resources recently provided by LAFCO, such as templates for district bylaws, policies and procedures. The District is also working to improve its recordkeeping and the training of Trustees in best practices and the requirements of State law. FINANCE Due to the lack of recent burial activity, District revenues consist mainly of property taxes. In Fiscal Year 2013-14, fully 95% of revenues were from this source. The District charges a modest $250 for a single grave, although it is currently looking at a substantial increase in this charge to be more consistent with neighboring cemetery district fee schedules. Arrangements for interments are made directly by the family of the deceased and the King City Cemetery District. Fees for interments are passed through to the King City Cemetery District that provides assistance with burials. The District has no employees or employee expenses. As shown in the Table of Revenues and Expenditures, District expenditures have exceeded income in recent years. To lower expenditures, the District recently changed to a new, and less costly, landscaping contract. Monthly rent for the District office has also been reduced this year from $250 to $100. This change reduces the annual deficit, although the current year budget continues to anticipate that expenditures will continue to exceed revenues by almost 50%. The largest two expenditure line items – Audit and Accounting ($9,500) and Maintenance/Grounds ($8,800) – by themselves exceed anticipated revenues of $16,190. Audit costs are for a two-year audit that is scheduled to be completed this year. San Lucas Cemetery District Summary of Revenues and Expenditures, Fiscal Years 2011-12 through 2015-16 Fiscal Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (Data Source) (audited) (audited) (audited) (unaudited) (unaudited) (budgeted) Revenues $ 13,717 15,053 14,502 15,299 $12,917 16,190 Expenditures $ 18,098 22,230 32,810 28,302 $17,510 24,225 NET INCOME $ (4,381) (7,177) (18,308) (13,003) (4,593) (8,035) Hayashi and Wayland, San Lucas Cemetery District, Basic Financial Statements for the Years Ending June 30, 2013 and 2012, San Lucas Cemetery District Special Districts Financial Transactions (FY 2013-14 and 2014-15), and District Fiscal Year 2015-16 budget. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 46 The table below presents a summary of the District’s assets. The imbalance of income and expenditures has caused a rapid decrease in net assets. This decrease in assets is a serious threat to the District’s long- term financial viability. The District does not maintain an endowment fund for the ongoing maintenance of the property. District San Lucas Cemetery District Summary of District Assets, Fiscal Years 2010-2011 through 2014-15 Fiscal Year Ending June 30, 2011 June 30, 2012 June 30, 2013 June 30, 2014 June 30, 2015 (Data Source) (audited) (audited) (audited) (unaudited) (unaudited) Current $ 68,362 61,209 45,019 33,749 30,598 Assets Total $ 82,903 75,536 57,228 44,225 39,670 Liabilities $ 990 800 800 800 800 Total Net Assets $ 81,913 74,736 56,428 43,425 38,870 Hayashi and Wayland, San Lucas Cemetery District, Basic Financial Statements for the Years Ending June 30, 2013 and 2012, and San Lucas Cemetery District Special Districts Financial Transactions (FY 2013-14 and 2014-15). CHALLENGES AND OPPORTUNITIES Governance and Transparency: The small District population presents challenges. It has been difficult for the District to find willing citizens able to fill all five Trustee positions. If the Board were to lose one additional member, it would lack a quorum and would be unable to act. The District is encouraged to establish some presence on the web, possibly in conjunction with other cemetery districts, through a California Special Districts Association service, or independently. Shared Services and Other Partnerships: The District currently uses assistance from the King City Cemetery District for interments. Other opportunities for shared services – and attendant cost efficiencies – are worth exploring. Affiliation with the California Association of Public Cemeteries (CAPC), California Special Districts Association, or other networks would provide useful Board training and educational resources. Scholarships are available to assist small districts in their professional development. Finance: The District is strongly encouraged to modify its expenditures to keep them within revenues in order to remain solvent. The District has consistently overspent its revenues the past five years, and the current year budget anticipates a continuing imbalance. LAFCO of Monterey County 47 SUMMARY • The San Lucas Cemetery District is providing efficient and effective service to the community through the operation of a single cemetery in the unincorporated community of San Lucas. • The existing District Sphere of Influence is the same as District boundaries and is adequate to meet the community’s needs. • The District anticipates that it has adequate facilities to meet future needs for a minimum of 20 or 30 years. • Two of the five seats on the District Board of Trustees are vacant. The District is encouraged to increase efforts to recruit individuals to fill these openings and to ensure that a quorum can be met. • The District has experienced financial deficits for each of the past five years. The District is encouraged to implement measures to ensure that expenditures are covered by District revenue. Firm action is needed to ensure the District’s financial viability. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 48 San Ardo Cemetery District P.O. Box 56, San Ardo, CA 93450 831-627-2500 San Ardo Cemetery District – At A Glance Formation Date August 22, 1957 Legal Authority Health & Safety Code, Sections 9000-9093 Five-member governing board whose members are appointed to four-year Board of Trustees terms by the Monterey County Board of Supervisors District Area Approximately 165.2 square miles Sphere of Influence Approximately 8.4 square miles beyond District boundaries Population (2010 est.) 839 (with an additional 60 in the Sphere of Influence) Revenue $20,380 (as reported for FY 2013-14 by the State Controller’s Office) (FY 2013-14) Approximate Annual Revenue Per District $24 (as reported for FY 2013-14 by the State Controller’s Office) Resident Board Secretary Cindy Beal Employees None San Ardo Cemetery, approximately one-half mile north of town and one- Cemetery quarter mile west of Cattlemen Road INTRODUCTION The San Ardo Cemetery District was formed in 1957 to serve the San Ardo community. District boundaries have not changed since District formation. The District provides burial space and maintains the cemetery grounds. The District opted not to participate in the preparation of this report. Therefore, information in this report is limited and was reported from third party sources. LAFCO of Monterey County 49 San Ardo Cemetery 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 50 DISTRICT BOUNDARIES AND SPHERE OF INFLUENCE The District is approximately 165 square miles in area. LAFCO designated an additional eight square mile Sphere of Influence which extended north to the boundary of the San Lucas Cemetery District. The rural community of San Ardo is not anticipated to grow significantly in coming years. The portion of the Sphere that is beyond the District’s boundaries is relatively small – 8.4 square miles – and is home to only about 60 people. Residents of this outlying area may benefit from annexation by being eligible for in-District cemetery fees. There is, however, little incentive for the District to request annexation because it would receive no additional tax revenues for this expansion. Likewise, there is no incentive and no identified need to expand the District’s Sphere of Influence. FACILITIES AND SERVICES The District maintains one cemetery that is approximately four-tenths of an acre in size. Situated just north of San Ardo, the cemetery is surrounded by agricultural fields and is accessed via dirt roads to the west of Cattlemen Road. The San Ardo Cemetery District provides public interment services for the unincorporated community of San Ardo and the surrounding area. Most management and maintenance services are capably performed San Ardo Cemetery by District Trustees and community volunteers. The King City Cemetery District assists the District with burial services. It is unknown how many burials occur in San Ardo in an average year, or the remaining capacity of the facility. Changes in American interment practices, which include an increasing popularity of cremation and the scattering of ashes, are reducing the need for cemetery burials nationwide. Establishment of the California Central Coast Veterans Cemetery on the former Fort Ord may slightly reduce the demand for burials in other cemeteries in the region. LAFCO of Monterey County 51 GOVERNANCE /TRANSPARENCY AND ACCOUNTABILITY The District is governed by a five-member Board of Trustees who are appointed by the Board of Supervisors. The terms of two Trustees recently expired and are currently vacant, according to the records of the Clerk of the Monterey County Board of Supervisors. FINANCE District revenues are primarily derived from property taxes. In Fiscal Year 2013-14, 89% of all income were from this source. Most remaining revenues are assumed to be derived from cemetery user fees. The District prepares audits every five years with the last one being for the five-year period ending June 30, 2012. The District also reports financial data to the State Controller’s Office as required by law. This data shows that revenues are minimal, and expenditures are generally less than revenues. The District has no employees, although the audit indicated that the over half of District expenditures were for custodian fees. San Ardo Cemetery District Summary of Revenues and Revenues, Fiscal Years 2011-12 through 2015-16 2015-16 Fiscal Year 2010-11 2011-12 2012-13 2013-14 2014-15 (budgeted) Not Not Revenues $ 14,100 17,289 21,295 20,380 Available Available Not Not Expenditures $ 7,844 16,414 21,581 14,796 Available Available NET Not Not $ 6,256 875 (286) 5,584 INCOME Available Available California State Controller’s Office: Special Districts Website Reports The table below shows a summary of the District’s assets. This data, from the State Controller’s Office, includes general cash reserves as well as restricted funds held in the endowment fund. Net assets have slowly increased through the years surveyed. San Ardo Cemetery District Summary of District Assets, Fiscal Years 2010-2011 through 2014-15 Fiscal Year Ending June 30, 2011 June 30, 2012 June 30, 2013 June 30, 2014 June 30, 2015 Assets $ 45,558 46,403 46,117 51,701 Not Available Liabilities $ 0 0 0 0 Not Available Total Net Assets $ 45,558 46,403 46,117 51,701 Not Available California State Controller’s Office: Special Districts Website Reports 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 52 The most recent District audit, for the five year period ending June 30, 2012, indicated that the District’s assets included over $27,000 in General Fund cash and cash equivalents. The District’s endowment fund, including both the permanent fund and accumulated interest income, amounted to 32% of all assets. CHALLENGES AND OPPORTUNITIES / SUMMARY The San Ardo Cemetery District declined to meet with LAFCO staff or share information regarding its services. Based on available financial data from the State Controller’s Office, the District is operating without severe deficits or surpluses and is maintaining a steady level of assets. The District is currently working without a full Board of Trustees. The District is providing efficient and effective service to the community and appears to be meeting this need with a minimum of financial resources and a maximum amount of self-sufficiency and volunteer action. LAFCO of Monterey County 53 [This page left blank intentionally.] 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 54 Cholame Valley Cemetery District Parkfield Route, Box 3580, San Miguel CA 93451 805-463-2343 Cholame Valley Cemetery District – At A Glance Formation Date January 27, 1959 Legal Authority Health & Safety Code, Sections 9000-9093 Three-member governing board whose members are appointed to four- Board of Trustees year terms by the Monterey County Board of Supervisors District Area Approximately 181.7 square miles Sphere of Influence Same as District boundaries Population (2010 est.) 169 Budgeted Revenue $0 (FY 2015-16) Approximate Annual Revenue Per District $0 Resident Board Secretary Marlene Thomason Employees None Two small cemeteries: “Parkfield-Todd,” at the end of Parkfield Cemetery Road, off Cholame Road, approximately two and one-half miles southeast Cemeteries of Parkfield, and “Imusdale,” on Vineyard Canyon Road, approximately 2,000 feet south west of its intersection with Slacks Canyon Road INTRODUCTION Community members formed the Cholame Valley Cemetery District on January 27, 1959 to provide maintenance services to four small cemeteries that had been established in the 1800s. These cemeteries were the Parkfield–Todd, Imusdale, Imus and Red Rock Cemeteries. The Imus and Red Rock Cemeteries are on private property and are no longer maintained by the District. One burial occurs within the District in the average year. The District estimates that it can accommodate additional burials for at least an additional 50 to 75 years. LAFCO of Monterey County 55 Imusdale Cemetery Parkfield-Todd Cemetery 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 56 DISTRICT BOUNDARIES AND SPHERE OF INFLUENCE The District covers approximately 185 square miles and its Sphere of Influence, which was established in 1983, covers the same territory. The Cholame Valley population is not anticipated to grow significantly in coming years. The population of the District is estimated at 169. The District has no plans to expand its Sphere of Influence or annex any portion of its existing Sphere because since the 1978 passage of Proposition 13 there is no financial incentive for a cemetery district to do so. LAFCO concurs with this assessment. FACILITIES AND SERVICES The Cholame Valley Cemetery District was formed on January 27, 1959 for the purpose of providing maintenance services to four small cemeteries that were established in the 1800s. Two of these four cemeteries are still maintained by the District: the Imusdale Cemetery (approximately 1.88 acres in size) and the Parkfield-Todd Cemetery (slightly larger than Imusdale). The District holds title to the Imusdale Cemetery, although ownership of the Parkfield–Todd Cemetery is uncertain. It is referred to as “government land” on County records and may be on a County road right-of-way. The District does not own equipment or buildings. The District has no debt. The District is supported by volunteers, and this arrangement Imusdale Cemetery appears to meet community needs. The District pays for no contracts for any services and survives through the assistance of volunteers for fence mending and other repairs. The District has no fees or rate sheets and offers no direct interment services. Some maintenance such as weeding and clean-up is occasionally provided by the California Department of Forestry and Fire Protection (CALFIRE) through the service of inmates from the California Department of Corrections and Rehabilitation. Changes in American interment practices, which include an increasing popularity of cremation and the scattering of ashes, are reducing the need for cemetery burials nationwide. Establishment of the California Central Coast Veterans Cemetery on the former Fort Ord may slightly reduce the demand for burials in Parkfield-Todd Cemetery other cemeteries in the region. The District estimates that it can accommodate interments for at least an additional 50 or 75 years. LAFCO of Monterey County 57 GOVERNANCE /TRANSPARENCY AND ACCOUNTABILITY The Cholame Cemetery District is governed by a three-person Board of Trustees who are appointed by the Monterey County Board of Supervisors. There are currently no vacancies on the Board. The District Board of Trustees meets quarterly when the Parkfield Community Club gathers. The meetings occur at the Community Club, which is at 68720 Parkfield Coalinga Road. Meeting agendas are posted on the Community Hall bulletin board, District trustees complete annual State Conflict of Interest Forms (Form 700s), and are working to meet all State ethics requirements. The only cemetery district contiguous with the Cholame Cemetery District is the Shandon Cemetery District across the county line in San Luis Obispo County. These districts may in the future want to explore cooperative arrangements. FINANCE The District’s finances are unusual, in that revenues and expenses are close to zero. No property taxes or fees are collected6. No contracts for service are utilized. The District does not collect burial fees. When an interment is needed, the family and friends of the deceased band together with District volunteers to hand dig graves. Occasionally a backhoe is also used. The district does not require the use of burial vaults to enclose coffins. Cholame Valley Cemetery District: Summary of Revenues and Expenditures, Fiscal Years 2011-12 through 2015-16 Fiscal Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (Data Source) (SCO) (SCO) (SCO) (SCO) (District) (District) Revenues $ 2 2 0 0 0 0 Expenditures $ 0 0 0 0 0 0 NET INCOME $ 2 2 0 0 0 0 California State Controller’s Office: Special Districts Website Reports and Data (FY 2010-11 to 2013-14), and Personal Conversation with the District Board Secretary (FY 2014-15 and 2015-16) 6 The District does not receive tax funds because its modest-level operations were funded totally through accumulated cash balances and the interest for the years prior to 1978-79. The District, therefore, does not participate in the Post-Proposition 13 allocated property tax formula. The District remains the only cemetery district in the County which receives no property tax revenue. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 58 The District has received some interest from assets left on the County books since the 1970’s although less than $300 remains in the District account at the end of Fiscal Year 2014. This balance provides a nominal amount of revenue. The District has County approval to submit audits on a five-year cycle, but the last submittal was missed, and the next 5-year submittal date is nearing. The District no longer prepares budgets, as the District hasn’t written a check in recent memory. Financial reports are submitted yearly to the State Controller’s Office and County Auditor-Controller, although most of the blanks are filled with zeros. The District maintains no liability or other insurance. The table below shows the District’s assets. This data is from the State Controller’s Office. The fund balance is consistent with the District finances and operating philosophy. Interest derived from the $272 on balance in Fiscal Year 2010-2011 yielded the $2 reported to the State as revenue income. The increase in the fund balance in Fiscal Year 2012 reflects the addition of the Imusdale Cemetery’s land valuation. Cholame Valley Cemetery District Summary of District Assets, Fiscal Years 2010-2011 through 2014-15 Fiscal Year Ending June 30, 2011 June 30, 2012 June 30, 2013 June 30, 2014 June 30, 2015 (Data Source) (SCO) (SCO) (SCO) (SCO) (District) Assets $ 272 1,774 1,774 1,774 1,774 Liabilities $ 0 0 0 0 0 Total Net Assets $ 272 1,774 1,774 1,774 1,774 California State Controller’s Office: Special Districts Website Reports and Data (FY 2010-11 to 2013-14), and Personal Conversation with the District Board Secretary (FY 2014-15 and 2015-16) CHALLENGES AND OPPORTUNITIES Shared Services and Other Partnerships: The District may want to consider if it could benefit from sharing services or resources with the adjacent Shandon Cemetery District in San Luis Obispo County. Affiliation with the California Association of Public Cemeteries (CAPC), Public Cemetery Alliance, California Special Districts Association, or other networks would provide useful Board training and educational resources. Scholarships are available to assist small districts in their professional development. The District is also encouraged to establish some presence on the web, possibly in conjunction with other cemetery districts, through a California Special Districts Association service, or independently. Finance: The Cholame Cemetery District achieves results without the expenditure of funds. If there were to be a need for monies to maintain the cemeteries, Trustees would need to identify sources. The District maintains no liability insurance; this absence may expose Trustees to risk. LAFCO of Monterey County 59 SUMMARY The Cholame Cemetery District is operated by a three-member Board of Trustees which has no vacancies. While the District maintains two cemeteries, it does so in a way that requires no revenues or expenditures. The informal organization and operations of the District appear to work for the Parkfield/Cholame Valley community. • The Cholame Valley Cemetery District is providing efficient and effective service to the community through the operation of two cemeteries in the unincorporated Parkfield / Cholame Valley area. • The District has found a way to meet community needs without taxes or other revenue. • The existing District Sphere of Influence is the same as the District boundaries and is adequate to meet the community’s needs. • The District anticipates that it has adequate facilities to meet future needs for at least 50 or 75 years. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 60 Pajaro Valley Public Cemetery District 66 Marin Street, Watsonville, CA, 95076 831-722-0310 Pajaro Valley Public Cemetery District – At A Glance Formation Date May 24, 1955 Legal Authority Health & Safety Code, Sections 9000-9093 Five-member governing board whose members are appointed to four-year Board of Trustees terms by the Santa Cruz County Board of Supervisors District Area Approximately 162.6 sq mi (47.7 sq mi in the Monterey County portion) Sphere of Influence Same as the District boundaries Population 95,088 (18,646 in the Monterey County portion) (2010 est.) Budgeted Revenue $938,500 (FY 2015-16) Approximate Annual Revenue Per District $10 Resident Manager Robert Stanford Employees 5.5 full time equivalents Five Cemeteries: Pioneer Cemetery (ocean side of Freedom Blvd. at Marin St.), Watsonville Catholic Cemetery (mountain side of Freedom Blvd. at Cemeteries Alta Vista), Valley Catholic Cemetery (East Lake near Fairgrounds), Valley Public Cemetery (East Lake near Fairgrounds), and Day Valley Cemetery (Meadow Road) Introduction The Pajaro Valley Public Cemetery District covers the Pajaro, Los Lomas and Aromas areas in Monterey County, and extends as far north as Aptos in southern Santa Cruz County. Present boundaries are the same as when the District was formed in 1955. A majority of the District’s geographic area and population are within Santa Cruz County. The Santa Cruz Local Agency Formation Commission is, therefore, the LAFCO of the principal county for this cemetery district and has exclusive jurisdiction over any changes of organization. In April 2015, the Santa Cruz LAFCO approved a Service Review and Sphere of Influence Review for this District. The document was prepared in consultation with LAFCO of Monterey County. Interested readers may contact Santa Cruz LAFCO at 831-454-2055 or http://www.santacruzlafco.org to get a copy of that study. A map and summary description of the District’s services and boundaries are included here, based on information provided by the District and Santa Cruz LAFCO. Our intent is to help readers learn about all local public cemetery service providers and their relationships. LAFCO of Monterey County 61 Day Valley Cemetery Valley Catholic Cemetery Valley Public Cemetery Pioneer Cemetery Watsonville Catholic Cemetery 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 62 District Overview The Pajaro Valley Public Cemetery District is governed by a five-member Board of Trustees, which is appointed by the Santa Cruz County Board of Supervisors. District boundaries straddle the Santa Cruz- Monterey County line, and its Sphere of Influence is coterminous with the current boundaries. The District maintains five cemeteries, all of which are located in Santa Cruz County. These cemeteries average a total of 175 to 200 burials a year. Moderate population growth is projected within the service area over the next 25 years. Only one cemetery, Valley Public Cemetery, has traditional gravesite available for purchase, and the District anticipates approximately 15 years of remaining capacity at Valley Public. The District’s ability to acquire additional property adjacent to existing facilities is limited, and so the District is seeking an additional cemetery site in south Santa Cruz County or north Monterey County. The 2015 Santa Cruz LAFCO study notes that a populated portion of north Monterey County is unserved by any cemetery district and that LAFCO of Monterey County would be examining the possibility of expansion into that area by the Castroville Cemetery District. The Castroville Cemetery District was consulted in the course of the current study and chose not to pursue expansion, as it is financially infeasible to do so. One or both of the cemetery districts adjacent to the unserved Prunedale area may raise this topic again in the future. The District provides burial spaces, maintenance of cemetery grounds, and opening and closing services. The District also has a commendable reputation for assisting other districts and cemeteries when needs arise. For Pioneer Cemetery example, it helped the private Evergreen Cemetery in the City of Santa Cruz to upright headstones after the 1989 Loma Prieta Earthquake. District operations comply with State laws for accountability and transparency, and the District implements best management practices for cost efficiencies. This District is also an active member of both the California Association of Public Cemeteries (CAPC) and the Public Cemetery Alliance (PCA). The Pajaro Valley Public Cemetery District’s finances are sound and sustainable. In Fiscal Year 2015-16, the District has budgeted revenues of $938,500 and expenditures of $1,314,250. This temporary imbalance of expenditures over revenues is due to a current capital improvement program. Net assets of approximately $6 million enable the District to incur short-term budget shortfalls. Among District assets, as of June 30, 2015, are a capital outlay fund of approximately $2.9 million and an endowment fund of approximately $1.2 million.7 In the current year budget, 69% of District revenue comes from property taxes. The District receives additional revenue from user fees and interest from its investments. The major expenditure is for personnel, which accounts for 78% of all budgeted revenues. 7 The endowment fund includes reserved funds of $754,205 and unreserved funds of $414,925. LAFCO of Monterey County 63 Summary In its April 2015 study and Commission action, Santa Cruz LAFCO concluded that the Pajaro Valley Public Cemetery District is providing cemetery services in a cost-effective manner. The principal LAFCO made no changes to the District’s current Sphere of Influence. The Pajaro Valley Public Cemetery District has more residents within its boundaries than any other cemetery district serving Monterey County residents. Its budget, with annual revenues of approximately $1 million, is larger than the combined budgets of the eight cemetery districts that operate solely in Monterey County. This District is in a strong financial position, with the capability and experience to operate multiple facilities consistent with State requirements and best management practices. A key challenge for this District is a lack of available plots, and so an active search is on to locate a new cemetery site within District boundaries. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 64 DETERMINATIONS SCOPE AND SUMMARY OF RECOMMENDATIONS This Chapter contains the recommended Municipal Service and Sphere of Influence determinations for the Castroville, Gonzales, Soledad, Greenfield, King City, San Lucas, San Ardo and Cholame Valley Cemetery Districts. This chapter also contains a recommended written statement of LAFCO’s determinations regarding the four areas required by Government Code section 56425(e). Each recommended determination applies to all eight cemetery districts that are located entirely in Monterey County as a group. Based on the recommended Municipal Service Review Determinations, the Executive Officer recommends that the Commission adopt the Municipal Service Review for all eight cemetery districts. Based on the recommended Sphere of Influence Determinations, the Executive Officer recommends that the Commission affirm the currently adopted Spheres of Influence of the Castroville, Gonzales, Soledad, Greenfield, King City, San Lucas, San Ardo and Cholame Valley Cemetery Districts as shown on the Executive Summary’s map. No change from the status quo is proposed or recommended. MUNICIPAL SERVICE REVIEW DETERMINATIONS The Cortese-Knox-Hertzberg Act requires LAFCO to conduct a review of the municipal services provided by a local agency before updating its Sphere of Influence. This chapter contains a recommended written statement of LAFCO’s Municipal Service Review Determinations regarding the seven areas required by Government Code section 56430(a). Each recommended determination applies to all eight cemetery districts as a group. Individual district profiles are provided earlier in this document. 1. Growth and Population Projections for the Affected Areas The eight cemetery districts entirely in Monterey County cover a combined area of over 1,250 square miles and a population of almost 80,000 people. Except for the Castroville Cemetery District, all of these districts are in the southern Salinas Valley. The four districts centered on the southern Salinas Valley cities – Gonzales, Soledad, Greenfield and King City – are projected to experience rapid population growth in coming decades. 2. The Location and Characteristics of any Disadvantaged Unincorporated Communities within or Contiguous to the Sphere of Influence. The California Department of Water Resources has identified Moss Landing8, King City, San Lucas and San Ardo as disadvantaged community places. All of these areas are located within the boundaries of a cemetery district and, except for King City, all are unincorporated. Additional areas within the southern Salinas Valley are identified as disadvantaged community tracts or block groups. Most of these areas are located within the boundaries of a cemetery district. Cemetery district services are available to disadvantaged residents of Monterey County. 8 Moss Landing is located within the Castroville Cemetery District and is the location of the District’s cemetery. LAFCO of Monterey County 65 3. Present and Planned Capacity of Public Facilities and Adequacy of Public Services, and Infrastructure Needs or Deficiencies As outlined in this Service Review, the eight cemetery districts have adequate space and services to meet current needs. Most districts are actively developing their capacity by acquiring additional land, adding double-depth graves, and constructing niche walls for cremated remains. 4. Financial Ability of Agency to Provide Services Local cemetery districts experience a broad range of financial conditions and vulnerability. Finances are examined in this service review and are highlighted as a Key Finding in the Executive Summary. 5. Status of, and Opportunities for, Shared Facilities Opportunities are available for a sharing of resources and expertise among cemetery districts. An outline of the opportunities and benefits of partnerships and a sharing of resources is contained within a Key Finding in the Executive Summary. 6. Accountability for Community Service Needs, including Government Structure and Operational Efficiencies The eight cemetery districts entirely in Monterey County are independent special districts formed through the provisions of the Public Cemetery District Law (Health & Safety Code section 9000 et seq.) Each was formed to provide the long-term care and management of a cemetery, or cemeteries, within their boundaries. All of the eight districts are governed by a five- or three-person Board of Trustees that are appointed by the Monterey County Board of Supervisors. Expansion of the District is financially unfeasible because since Proposition 13’s passage in 1978, any land annexed to a cemetery district does not pay any property tax to the district. The districts face challenges in complying with all of the State requirements for a local agency. This issue is discussed in the Service Review, and is highlighted as a Key Finding in the Executive Summary. 7. Any Other Matter Related to Effective or Efficient Service Delivery, as Required by Commission Policy The Local Agency Formation Commission of Monterey County has adopted Sphere of Influence Policies and Criteria within its Policies and Procedures Relating to Spheres of Influence and Changes of Organization and Reorganization. These policies and criteria were adopted, in conformance with State law, to meet local needs. These policies stipulate that the designation of Spheres of Influence shall avoid the creation of islands and corridors. There are currently no islands or corridors enclosed by a Cemetery District’s boundaries or Sphere. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 66 SPHERE OF INFLUENCE DETERMINATIONS Following is a recommended written statement of LAFCO’s Sphere of Influence Determinations regarding the four areas required by Government Code section 56425(e). Each recommended determination applies to all eight cemetery districts as a group. Individual profiles of each of the eight districts, and of the Pajaro Valley Public Cemetery District, are presented earlier in this document. 1. The Present and Planned Land Uses in the Area, including Agricultural and Open-Space Lands Land uses within cemetery district boundaries are varied. The districts contain four cities – Gonzales, Soledad, Greenfield and King City. District boundaries also include Census-designated places such as Castroville, Moss Landing, Prunedale, Chualar, San Lucas, San Ardo and Parkfield9. The cities and unincorporated places have a variety of commercial, industrial, institutional and residential uses. Agricultural uses predominate outside of the core areas of the cemetery districts. Five districts have Spheres of Influence beyond their existing boundaries. Most of these areas are very rural and agricultural. The one exception is the Castroville Cemetery District. The Sphere of Influence of this district contains a significant portion of Prunedale, a Census-designated place. The District Sphere, outside of its boundaries, is estimated to be the home of over 6,000 people. The area includes low-density and rural-density residential, commercial and public/quasi-public land uses. 2. The Present and Probable Need for Public Facilities and Services in the Area Cemetery District Trustees are preparing for the burial needs of the future, although these needs are difficult to gauge. The population growth rate for the County’s cemetery districts is expected to increase more rapidly than the County-wide rate of 0.71% over the next 25 years. This is because cemetery district population is centered in the fast-growing Salinas Valley communities of Gonzales, Soledad, Greenfield and King City. These population projections would seem to indicate that the needs for cemetery district facilities and services will rapidly expand. On the other hand, societal trends favoring cremation, and the development of a veteran’s cemetery at the former Fort Ord, may lessen the need for district burial space in coming years. Public cemeteries may grow more rapidly than other cemeteries because they offer benefits to tax-paying district residents. The advantage of living in a cemetery district is that residents have the option of burial in a relatively affordable public cemetery. State law limits most burials within a district cemetery to district residents, taxpayers and immediate family members of those buried in the cemetery. Individuals who live outside the boundaries of a local agency providing cemetery services do not usually have this option. Other burial options include utilizing a private or religious cemetery, or cremation and storing or disbursing the cremains. 3. The Present Capacity of Public Facilities and Adequacy of Public Services that the Agency Provides or is Authorized to Provide The eight cemetery districts that are entirely in Monterey County maintain a total of ten cemeteries. Each of these districts appears to have adequate existing space to accommodate burials for at least 20 additional 9 Castroville, Moss Landing and portions of Prunedale are within the Castroville Cemetery District. Chualar is within the Gonzales Cemetery District. San Lucas and San Ardo are the centers of cemetery districts with the same names. Parkfield is within the Chalome Valley Cemetery District. LAFCO of Monterey County 67 years. One cemetery, within the two-cemetery Greenfield Cemetery District, is estimated to have a remaining capacity of only around five years. The District plans to expand this facility. Other cemeteries in the District are expected to still have adequate space into the end of the current century. Most cemetery districts are actively expanding their capacity through acquiring additional land, adding double-depth graves, and constructing niche walls for cremated remains. To the extent that their finances allow, each cemetery district is adding additional services and amenities to their cemeteries. These amenities include walkways, gates, fences, niche walls for cremains, chapels and memorials. 4. The Existence of any Social or Economic Communities of Interest in the Area if the Commission Determines that they are Relevant to the Agency Each of the cemetery districts serves a distinct social and economic community of interest. 2015 MSR & SPHERE STUDY: CEMETERY DISTRICTS (FINAL) 68 APPENDIX SOURCES AND ACKNOWLEDGEMENTS The information contained in this Municipal Service Review and Sphere of Influence Study has been obtained from many sources. Of critical importance is the information that LAFCO received from Cemetery District Staff and Trustees. The districts provided LAFCO with copies of audits, financial statements, budgets, policies and procedures, agendas, and fee schedules. District representatives met with LAFCO staff and continued to be available for information over the phone and by email. Without their cooperation and assistance, this report would not have been possible. LAFCO was also able to obtain valuable information on the State Controller’s website, as well as the websites of the California Association of Public cemeteries and the Public Cemetery Alliance. LAFCO’s earlier 2005-2007 Municipal Service Reviews were reviewed to provide background information. Population estimates for the cemetery districts were calculated from 2010 U. S. Census data using the County of Monterey’s Geographic Information System (GIS). GLOSSARY OF CEMETERY TERMS Casket/Coffin: A box or chest large enough for burying remains. Cemetery: Land specifically used as a burial ground for the dead. Columbarium: A structure with niches or small spaces which allows for placement of cremated remains in urns or other small containers. It may be outdoors or part of a mausoleum. Cremains: The ashes of a cremated corpse. Cremation: Exposing remains to extreme heat, flame and processing in order to reduce the body to ashes and small bone. Endowment Care Fund: Money collected by the cemetery from the purchasers which is placed in trust for the maintenance and upkeep of the cemetery in the future. Grave: A space in the ground in a cemetery for the burial of remains. Grave Liner: A concrete cover that fits over a casket in a grave. Some liners cover tops and sides of the casket. Others referred to as vaults, completely enclose the casket. Grave liners minimize ground settling. Interment: Burial in the ground, inurnment or entombment. Inurnment: The placing of cremated remains in an urn followed by placement in a niche or some other resting location. Mausoleum: A building in which remains are buried or entombed. Niche: A space in a columbarium, mausoleum or niche wall to hold an urn. Ossuary: A place or receptacle for the bones of the dead. Plot: A small piece of land in a cemetery. Urn: A container to hold cremated remains. It can be placed in a columbarium or mausoleum, buried in the ground, or some other significant spot. Vault: A grave liner that completely encloses a casket. Source: “PlanningAFuneral.com” and “Dictionary.com” LAFCO of Monterey County 69