New acreage allows for future growth, additional plots
The city cemetery has room to grow after council approved the purchase of 4.2 acres of land for cemetery use last week.
At a special meeting Thursday, council approved the purchase of six lots, 1401 through 1419 Old Ranch Road 12, for $2.25 million for the future expansion of the San Marcos Cemetery. The lots, which are owned by Jerry D. Fields and Linda G. Fields, are located in front of the existing cemetery, across the street from Chepo’s and the Valero gas station.
“I am so excited about this I’m going to make a motion to approve,” Mayor Jane Hughson said before the staff presentation.
“I think it’s an excellent opportunity for the city, especially considering we have a tremendous need for the expansion of our current cemetery,” City Manager Bert Lumbreras said.
According to city figures, there is space for about 800 more plots in the cemetery. With average plot sales at 80 per year, that means the cemetery’s useful life would be around eight to 10 more years. Moreover, state law prohibits the establishment of new cemetery land within any municipality’s city limits unless the land connects to an existing cemetery, as these six lots do.
“If we don’t take advantage of expansion at this site, we would literally have to look outside the city to the ETJ (extraterritorial jurisdiction),” Lumbreras said.
The purchase will not only give more space to the cemetery; it also will make the cemetery more profitable.
“We believe and estimate that we could obtain an additional 1,575 to 2,275 — conservatively — additional plots,” Lumbreras said, and those plots could generate between $2.9 and $3.7 million at current prices.
“If you increase rates in the future, then obviously we’re talking more,” he said.
The six lots the city purchased has some existing houses with ongoing leases, and those rental properties will generate revenue for the city while the leases continue, Lumbreras said.
To finance the purchase, Lumbreras recommended that the city delve into its perpetual fund, which holds a little over $1 million, and use $1.2 million from Fiscal Year 2019 capital improvement funds. The CIP expenditure will require a budget amendment.
“This is pretty much our one opportunity,” Hughson said before praising the San Marcos Cemetery for its beauty. “It’s a park. It’s beautiful. If you go up there any afternoon, like today, you’ll probably see some people walking and just sitting and contemplating for a while.”
Assistant City Manager Steve Parker praised city staff for working quickly to get the paperwork ready for council.
“Mr. Fields had a need to close very quickly on this property,” Parker said.
Lumbreras also praised city staff for their work and Fields for his cooperation.
“Mr. Fields has been nothing but very committed to making this work for the city,” he said.
