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Attachment 1). Due to the need to complete these projects by November 11, 2016, staff will be bringing this back directly to the City Council for final approval in July instead of going through the Parks and Recreation Commission first. Master Plan Fiscal Forecast and Business Plan. The goal of this component of the plan was to establish the framework for developing a business plan for the cemetery. As part of evaluating the Business Plan framework staff completed a review of revenue expectations versus actuals. In the December 2008, based on available data at the time, it was assumed that the City would sell 50 cremains plots and 50 casket plots in the first year, and 25 casket plots and 25 cremains plots each year thereafter. It was projected that the South Hill West inventory would be sold by FY15.The Master Plan projected annual sales of 10 casket plots per year and 8 cremation plots per year. Based on current projected sales volume of 20 plots (casket and cremain) per year, it is now projected that the South Hill West inventory will be complete in approximately 12.5 years. However, effective marketing of the cemetery and the addition of the Veteran's Memorial may increase sales volume. Staff will work with Sales, Management, and Burial Coordination contractor to produce appropriate marketing materials and develop a marketing and sales plan. The Master Plan presented a Financial Forecast of $1,616,780 in total revenue with an annual revenue estimated at $89,000 per year over the next 18 years. The actual revenues since FY11/12 through FY14/15 as shown in Table 1 below, does not support this assumption. After the initial rush in 2011/12 the annual revenue has actually demonstrated a decline. Staff has estimated future revenue at $54,000 annually based on the current trend. Table 1. REVENUE FY 11/12 FY 12/13 FY 13/14 FY 14/15 Casket $78,353 $64,107 $21,690 $38,379 Cremain $23,693 $13,135 $27,452 $19,930 TOTAL $102,046 $77,242 $49,142 $58,309 The current inventory in the South West Hill includes 108 cremain and 143 casket plots with the total revenue $2,220,759.62 (Table 2) Table 2. South Hill West Remaining Inventory Revenue Forecast Plot Type Number of Plots Cost Per Plot Estimated Revenue Casket 143 $11,794.06* $1,686,550.58 Cremain 108 $ 4,946.38* $ 534,209.04 Total Revenue $2,220,759.62 *Note that prices listed above may be adjusted yearly, with the first adjustment occurring on July 1, 2016. Price increases shall be based on the Consumer Price Index for the San Francisco-Oakland-San Jose area (All items category) for the April CPI. Page 8 of 10