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APPROPRIATION COMMITTEE-2019 ATM
<br /> $270,000 was appropriated to develop designs for the renovation of the existing building or for construction
<br /> a new building.
<br /> At the 2018 Annual Town Meeting an article to appropriate construction funds was indefinitely postponed
<br /> in order to consider citizen requests for the inclusion of a crematory facility as part of the new building.
<br /> The Ad-hoc Crematory Study Committee (CSC) was appointed by the Board of Selectmen in fall 2018.
<br /> The committee made a recommendation, subsequently accepted by the Board of Selectmen, that requires
<br /> the design of the new Westview Cemetery building to be able to accommodate the addition of a crematory
<br /> with up to two retorts and a viewing area for 25 visitors. These design modifications will be made utilizing
<br /> the existing design funds.
<br /> Financing Plan
<br /> The Westview Cemetery building is expected to cost approximately $2.8 million with a 20-year bond du-
<br /> ration for any debt. Two funding scenarios considered assume an interest rate of 4% for bonds. In the first
<br /> scenario, the full construction cost will be debt-financed with a level-payment amortization schedule, to
<br /> best match the inflow of fee revenue. The debt service would be funded from fee revenue from the General
<br /> Fund and the Sale of Cemetery Lots Fund,which has a projected balance of approximately$730,000 at the
<br /> end of FY2019 and would continue to receive new revenue from sales of cemetery lots and burials. This
<br /> funding model anticipates that the need for tax levy supplements to the debt service from FY2031 through
<br /> FY2037. The total tax levy supplement needed to cover the debt service is projected to be approximately
<br /> $115,000 over the life of the debt.
<br /> In the second scenario,the Sale of Cemetery Lots Fund will be used to cash finance part of the$2.8 million
<br /> project, and the remaining$2.1 million will be issued as debt. This alternative has lower interest costs,but
<br /> the timing of payments would require approximately$237,000 in support from the tax levy.
<br /> Cemetery Operating Revenues and Expenses
<br /> When a grave is sold,45%of the revenue is directed to the Sale of Cemetery Lots Fund,and the other 55%
<br /> is transferred to the Cemetery Perpetual Care Trust account which is managed by the Trustees of the Public
<br /> Trust. When a burial is performed, the fee revenue is directed to the General Fund. This General Fund
<br /> revenue supports cemetery operations, including staff costs and operating expenses. In addition, interest
<br /> earned from the Cemetery Perpetual Care Trust Fund is transferred to the General Fund annually to support
<br /> cemetery operations. These two funding sources do not fully cover the Town's cemetery operations, so the
<br /> tax levy makes up the difference.
<br /> Municipalities are directed by law to provide cemeteries and burial services, so it is not unusual that the tax
<br /> levy would partially fund cemetery operations. The annual amount of tax levy support to cemetery opera-
<br /> tions from FY2015 to FY2018 is shown in below.
<br /> FY2015 FY2016 FY2017 FY2018
<br /> Actual Actual Actual Actual
<br /> Cemetery Fee Revenue(General Fund) $133,079 $125,588 $123,190 $162,270
<br /> Interest Income from Cemetery Annual Care $105,000 $105,000 $105,000 $48,500
<br /> Total Cemetery Revenue $238,079 $230,588 $228,190 $210,770
<br /> Cemetery Operations Salaries & Wages $221,437 $241,225 $248,370 $238,714
<br /> Cemetery Operating Expenses $48,868 $75,114 $61,800 $64,201
<br /> Total Cemetery Expenses $270,305 $316,339 $310,170 $302,914
<br /> Tax Levy Support of Cemetery Operations ($32,226) ($85,751) ($81,980) ($92,144)
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