Thanks for the information. Certainly is encouraging as I get my mulch from the city recycling center and it definitely includes cedar, among other things. The course ground is free and the fine ground is .03/lb. so I definitely will continue to use it.
After posting the question about the bed under the tree I did some more reading and discovered I shouldn't really put any kind of bed around a tree as it will eventially damage the roots of the tree. So back to the drawing board