City may take over Ashland Cemetery

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June 3, 2009

Historical graveyard in financial straights

By CARRIE STAMBAUGH The Daily Independent Wed Jun 03, 2009, 11:25 PM EDT

ASHLAND — Ashland city officials are considering taking over the Ashland Cemetery.

The 106-acre cemetery off Belmont Street operates as a nonprofit and is managed by a board of directors.

The cemetery was incorporated sometime around 1860 but has graves sites dating to the Revolutionary War, according to officials.

Many of the founding fathers of Ashland are buried in the cemetery as are many of the families that played a key role in the founding of Ashland’s major industries and businesses, including the Poages and Blazers.

The ancestors of many current day Ashland residents have also been laid to rest there and many more residents own plots for future burials and interments.

The proposal comes as the cemetery is experiencing financial difficulties because of declining revenues and dwindling interest from the cemetery’s trust fund, which has considerable lost value in the wake of the economic recession.

“Continuing to operate it is not a possibility,” said cemetery board chairman and attorney Richard “Sonny” Martin, who is also the city’s corporation counsel.

He said the board believes the city would be better able to maintain the historic cemetery and ensure it remains a protected asset than a private company would.

“We just feel like this is a very important issue. It’s a very important asset that our community has,” said board member and third generation funeral director Marshall Steen. “We are trying to do what we feel like is the best way to maintain and preserve what we have. This is the best scenario we have come up with.”

Steen and Martin both said it is not unusual for cities to operate cemeteries of this kind. In fact, Martin said he believes there are close to 50 cities in Kentucky that own and operate cemeteries.

Ashland officials would also be able to operate the facility at a lower cost than it requires currently. Under city management, the cemetery would no longer pay accounting fees and its utilities, insurance and repairs and maintenance fees would be significantly reduced.

With those reduced costs, the cemetery’s revenues would be enough to pay the cost of the city absorbing its three full-time employees and make some revenue to contribute to Ashland’s general fund, according to estimates by City Finance Director Tony Grubb.

Grubb has also estimated under city management the cemetery could earn a projected $42,000 during the next fiscal year. The estimates are based on an analysis of three years of the cemetery’s financial statements.

Under city management, the cemetery would also no longer be required to maintain a trust fund for its perpetual care. Currently, 10 percent of the sale of grave sites and crypts is diverted into the fund, which cannot be used for operating costs or to pay off debts. This has contributed to the cemetery’s debt, according to officials.

The facility has approximately $230,000 in debts. If the city takes over, officials will be able to use the roughly $220,000 in the trust fund to help pay off the debt. The remaining debt and a $5,000 prepayment penalty would be paid by the city.

Commissioners are expected to give the city manager permission today to proceed with preparations for the takeover.

CARRIE STAMBAUGH can be reached at cstambaugh

@dailyindependent.com or (606) 326-2653.

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