MUNICIPALITY OF CHATHAM KENT CEMETERIES BUSINESS PLAN

MUNICIPALITY OF CHATHAM–KENT CEMETERIES BUSINESS PLAN Revised June 30, 2010 TABLE OF CONTENTS 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Executive Su...
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MUNICIPALITY OF CHATHAM–KENT

CEMETERIES BUSINESS PLAN Revised June 30, 2010

TABLE OF CONTENTS 1.0

2.0 3.0

4.0 5.0

6.0

7.0 8.0 9.0

Executive Summary 1.1 Background 1.2 Mission Statement 1.3 Products and Service 1.4 Customers 1.5 Organizational Structure 1.6 Level of Service Goals and Objectives Risk Management - Environment 3.1 Number of Cemeteries 3.2 Land Use/Availability 3.3 Market Share 3.4 Cremations 3.5 Lot Sales 3.6 Care and Maintenance Trust Funds 3.7 Burials 3.8 Cost of Operations 3.9 Tax Base Support 3.10 Business Model 3.11 The Cemeteries Act 3.12 Price Comparison to Other Municipal Cemeteries S.W.O.T. Analysis Recommendations 5.1 Care and Maintenance Funds 5.2 Reduction in Revenues From Lot Sales 5.3 Reduction in Revenues From Open/Close 5.4 Annual Increase in Fees 5.5 Increase in Expense from Grass Contract 5.6 Refunds on Interment Rights 5.7 Increase in Revenues From Premium Rates 5.8 Family Service Counsellor Contract Position 5.9 Sherman Cemetery 5.10 Shrub Program 5.11 Increased Level of Service 5.11.1 Summer Student 5.11.2 Grass Cutting 5.11.3 Volunteers 5.12 Contract for Greenwood Cemetery Financial Information 6.1 Costs and Revenues For Services and Products 6.2 Base Budget Adjustments Consultation with Funeral Directors Measurement Plans Summary

3 3 3 4 4 6 6 6 7 8 8 9 11 12 14 16 17 18 19 20 21 21 21 22 22 22 22 23 23 23 24 24 24 25 26 27 28 29 30

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1.0 EXECUTIVE SUMMARY 1.1 BACKGROUND The Municipality of Chatham-Kent Cemeteries (Municipal Cemeteries) serve the residents of Chatham-Kent and surrounding areas providing a place for families to bury their loved ones. The primary purpose of Cemeteries is the dignified disposition of human remains in accordance with provincial statutes and municipal by-laws. Cemeteries also serve as historical, memorial, spiritual, aesthetic and passive recreation green space. Since the implementation of the 2005 Cemeteries Business Plan several factors and trends have developed or changed. As well, information for Business Planning is now more readily available. These factors allow for this update of the 2005 Cemeteries Business Plan. This Business Plan addresses: • • • •

The mandate of Cemeteries, both operationally and commercially The financial health of Cemeteries Public expectations The future of Cemeteries

in context with our Mission Statement and guiding principles. 1.2 MISSION STATEMENT Chatham-Kent Cemeteries Services are the primary provider of public multi-optional burial site operations and maintenance within the Municipality of Chatham-Kent. Cemeteries, operating on a not-for-profit basis, deliver a limited range of death care industry services responsive to needs identified by the community and that complements services offered by private sector providers. This mission statement reflects our guiding principles: • To operate an efficient and cost effective, basic level of service • To provide quality services to the public • To work collaboratively with the private sector providing death care industry services (Council has directed administration not to compete directly with private sector service providers for the services we are not obligated by the Cemeteries Act to provide) • Where death care industry services are available from the private sector, the role of Cemeteries is to establish and monitor operational practice standards • At all times Cemeteries operate in compliance with the Ontario Cemeteries Act and Chatham-Kent municipal by-laws

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1.3 PRODUCTS AND SERVICES Since the municipal amalgamation in 1998, the Municipality of Chatham-Kent has assumed responsibility for 65 cemeteries: 6 active, (i.e., sell lots), 1 active contract (Greenwood) and 58 inactive, (i.e., do not sell lots), within its boundaries. Formerly these cemeteries were operated and overseen by the previous municipalities or private groups. Current products and services include: • Traditional burial lots • Cremation lots • Indoor mausoleum with crypts and niches • Interment Rights Certificates • Full body and cremation interments • Chapel memorial services • Disinterment services • Death registrations • Cemeteries grounds maintenance • Memorial / dedication products • Point of Cemeteries contact for: Funeral Directors, families, monument dealers and vault dealers Cemeteries provide death care industry services limited to those not conveniently available from the private sector. 1.4 CUSTOMERS Local communities and their residents are the key customers. Families look to Chatham-Kent municipal Cemeteries for pre-need and at-need products and services. Our municipal Cemeteries work closely with the private sector, including: • Funeral homes • Monument dealers • Other death care industry service providers 1.5 ORGANIZATIONAL STRUCTURE Cemeteries are a section of the Community Development and Planning Services department. The following chart provides the current organizational structure including 7.99 (FTE) positions that provide cemetery services within Chatham-Kent, in addition to the Manager, Parks, Cemeteries and Horticulture.

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ORGANIZATIONAL STRUCTURE Manager: Parks, Cemeteries & Horticulture (.2 FTE)

Parks, Cemeteries and Horticulture Assistant (.25 FTE)

Supervisor – Cemetery Operations (1 FTE)

Family Service Counsellor (Coordinator) (1 FTE)

Clerical Assistant (.75 FTE)

Equipment Operators (3 FTE) Public Works Equipment Operators as required (1.79 FTE)

Contractors used for operations at Bothwell & Sherman Contract for operations at Greenwood

Dedicated resources to these activities include a cemetery supervisor, a coordinator, (proposed title change, currently called the Family Services Counsellor). Three dedicated Equipment Operators provide general maintenance at the seven active cemeteries and openings and closing with the assistance of contracted Public Works staff, at Dresden, Maple Leaf (Chatham) and Riverview (Wallaceburg). Opening and closings at Greenwood (Ridgetown) and Evergreen (Blenheim) are contracted through Public Works staff alone. A private contractor is utilized to perform these responsibilities at both Bothwell and Sherman (Thamesville). Administration of the cemeteries also includes a portion of an administrative assistant, a clerical position and the manager who oversees cemetery operations in addition to Parks and Horticulture. Chapels are located at four of the seven active cemeteries and are maintained by the Equipment Operators. Grass cutting for the seven active cemeteries is contracted out to the private sector. The current staff equates to 7.99 FTE’s. The Family Service Counsellor position was created in 2001 to focus on sales at Maple Leaf Cemetery, primarily relating to the new mausoleum and subsequently pre-need lot sales. Since that time there has been a reduced demand for pre-need sales, the mausoleum niches have been fully sold and there has been an increase in the level of work for other cemetery services. The following additional responsibilities have been added to cemeteries: • •

Assuming the contract for Greenwood Cemetery Acquisition of Sherman Cemetery (Section 5.9) 5

• •

Enhanced staffing requirements related to cash handling processes Volunteer co-ordination

Should the development of Columbaria be approved by Council (Section 5.13), there will be additional responsibilities for the construction, marketing and operation of columbaria services. In addition to the aforementioned staff, Cemetery operations hire a summer student (Section 5.11.1) for 353 hours during the months of July and August. The student maintains flowerbeds and shrub plantings. The additional labour associated with preparing and planting the beds has become onerous for full time staff due to the necessity to complete winter grave restoration. Preparation and plantings are done later in the season. The result is that the aesthetics of the cemetery sites are limited early in the season. Concurrently, the responsibilities of the Manager of Parks, Cemeteries and Horticulture, have shifted so that the manager is not spending as much time on Cemetery Operations. The increased workload has been delegated to the Cemetery Supervisor and other staff. The present agreement with the Cemetery volunteers (Section 5.11.3) allows them to uncover and reset flush markers (or broken slab type memorials), raise, level and reposition limestone/marble grave borders and clean slab type memorials. All of this work is performed according to techniques demonstrated by staff and/or other professionals. Restoration that requires assistance beyond the above noted agreement is to be reported to administration for the appropriate assistance. 1.6 LEVEL OF SERVICE Historically, the cemeteries that are currently managed by the Municipality of ChathamKent operated at varying levels of service and economic value. Striking the balance between public expectations and economic value to ensure a consistent level of service across the Municipality continues to be a primary challenge. Cemeteries Services, with guidance from Municipal Council, has established a service/value position that appears acceptable to the citizens of Chatham-Kent.

2.0 GOALS AND OBJECTIVES This Business Plan identifies the following strategic and operational goals and objectives for Cemeteries: • •

• •

Ensure sufficient cemetery property to provide for needs of the community Assure financial efficiency through: - Efficient day to day operational management - Market sensitive pricing (rate) strategy Ensure that the Care and Maintenance Trust Fund is sufficient for the perpetual care needs of the Cemeteries Maintain effective fiscal and administrative control processes 6

• • • •

Monitor the demand for death care products and services in collaboration with local Funeral Directors Continue to target the service level/economic value position expected by the communities Review and update contractual service for Greenwood Cemetery Present the Business Case for the development and implementation of other related services including Columbaria

3.0 RISK MANAGEMENT - ENVIRONMENTS INTERNAL 3.1 NUMBER OF CEMETERIES Upon the municipal amalgamation of 1998 the Municipality of Chatham-Kent assumed responsibility for all municipal active, inactive and abandoned cemeteries within its municipal borders. At January 01, 2010 the Municipality’s portfolio of cemeteries is: Active (municipal) Active (contracted) Inactive/Abandoned -

6 1 58 65 Chapels exist at four of the seven active cemeteries and are available for use by the public. During the 2008 budget deliberations a report was presented to Council in preparation for the acquisition of Sherman Cemetery. A one-time budget request of $24,576 was approved for mapping of the cemetery, re-seeding and repairs of the grounds/fence and inputting the cemetery records into the municipal data system. Final documentation was forwarded to the Ministry of Government Services, Cemetery Branch in 2009 at which time the Registrar General authorized the release of the Care and Maintenance funds to the Municipality. 3.2 LAND USE / AVAILABILITY Future land availability for the seven active cemeteries is critical to enable the Municipality to offer a variety of interment options. Immediate pressure for land expansion of the various cemeteries has decreased. The primary reason is due to the reduction in lot sales since 2006. Contributing factors include the 50% increase in the price of lots in 2005, lack of disposition options, (e.g., Columbaria), the reduction in percentage of municipal burials, (e.g., 65% pre2005 compared to 55% in 2009) and increased use of historic lots.

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The following chart illustrates current land availability at the seven active cemeteries as well as the number of years currently provided for: TABLE 1 – LAND USE / AVAILABILITY PER CEMETERY BOTHWELL

DRESDEN

EVERGEREEN

MAPLE LEAF

RIVERVIEW

GREENWOOD*

SHERMAN

Undeveloped Acres

1.25

2.81

27.77

2.25

1.97

2.54

0.13

Developed Graves Available

118

109

601

365

332

505

52

Population served

8,000

10,000

10,000

47,000

15,000

10,000

7,000

% served

55%

55%

55%

55%

55%

55%

55%

Graves/Acre - full

400

400

400

400

400

400

400

Graves/Acre - cremation

800

800

800

800

800

800

800

Graves available Death Rate/1000 (2006 2009)

783

1,604

15,375

1,562

1,380

1,856

121

1.09%

1.09%

1.09%

1.09%

1.09%

1.09%

1.09%

Avg Cremation % (2)

33.00%

33.00%

33.00%

33.00%

33.00%

33.00%

33.00%

Sales/Registrations %

22.00%

22.00%

22.00%

22.00%

22.00%

22.00%

22.00%

41

67

641

14

38

77

7

YEARS AVAILABLE

* Greenwood Cemetery is a private cemetery operated under contract by Chatham-Kent

Lifecycle funding for land requirements into account current land use and requirements. Presently, the municipal By-Law #168-199, which regulates the operation of cemeteries in the Municipality, allows the following: “A single Adult Grave may contain: 1. A casket containing human remains and the cremated remains of two persons; or 2. The cremated remains of four persons; or 3. Two (2) still-born remains in addition to a casket containing adult human remains; or 4. A 60.96 x 30.48 (24” x 12”) infant container may be buried at the head end of a single grave in which a casket containing human remains has been buried, provided space is available. There is an increased trend in the preference of cremation. Across Ontario, 47% of all deaths are followed by cremation. In Chatham-Kent, 34% of interments in municipal cemeteries are cremations, an increase of 14% over the last ten years. 3.3 MARKET SHARE Historically, the Municipality of Chatham-Kent has been the primary provider of burial sites within the municipality. Over the nine-year period: 2001 – 2009, the percentage of burials in municipal cemeteries has declined in spite of a predictably growing death registration rate:

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TABLE 2 – PERCENTAGE OF BURIALS YEAR

C-K DEATHS

BURIALS

% OF MARKET

2001 2002 2003 2004 2005 2006

1,129 1,128 1,129 1,189 1,189 1,175

676 704 747 673 728 696

60% 62% 66% 57% 61% 59%

2007 2008 2009 2010* 2011* 2012*

1,185 1,121 1,171 1,183 1,195 1,206

711 664 653 647 641 634

60% 59% 56% 55% 54% 53%

2013* 2014*

1,219 1,231

628 622

52% 51%

* projected

Projections through 2014 continue this trend of declining burials in spite of slightly increasing death registrations. These projections have not taken into account demand for columbaria. This gradual decline in market share is demonstrated later in this section, in the declining burials trend. 3.4 CREMATIONS There is an increasing trend in the preference of cremation. Across Ontario, 47% of all deaths are cremated. In Chatham-Kent, 34% of interments in municipal cemeteries are cremations: TABLE 3 – CREMATION PROVINCIAL AVERAGE YEAR

CHATHAM - KENT

PROVINCIAL AVG.

1999

15%

41%

2000

20%

2001

21%

2002

25%

2003

29%

2004

30%

2005

N/A

2006

35%

2007

32%

2008

38%

2009

34%

47%

The following chart illustrates how Chatham-Kent lags the provincial trend towards preference for cremations: 9

TABLE 4 – CREMATION PERCENTAGES Municipality Brantford Cambridge Kitchener Niagara Falls Oakville Owen Sound St. Thomas Waterloo AVERAGE Chatham – Kent

2009 Total Burials 307 550 742 554 273 190 59 423 387 653

2009 Cremation Burials 158 220 329 269 143 87 31 216 182 220

Percentage 51% 40% 44% 49% 52% 46% 53% 51% 47% 34%

Presently, the only option for cremation interments is in ground burials. 3.5 LOT SALES Over the past six years lot sales have declined from 345, in 2004, to 217 lots sold in 2008. Lot sales in 2009 have reversed the declining trend to 252 lots. The following chart illustrates the decline in sales, resulting in revenues declining by $220,341 from the 2005 Business Plan projections. GRAPH 1

MUNICIPAL CEMETERY LOT SALES 1200 1000 800 600 400 200 0 2004

2005

2006

2007

2008

BUSINESS PLAN (2005) LOT SALES

2009

2010*

ACTUAL LOT SALES

Several items have contributed to this decline including: (1) The rush to pre-purchase lots prior to the major price increase in 2005 The sale of lots drastically increased between 2004 and 2005, (i.e., 335 in 2004 to 621 in 2005) – a difference of 286. Administrations suspect this escalation was likely the result of pre-purchases occurring prior to the implementation of the July 1, 2005 fee increase and has had a lingering effect on future sales.

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(2) Annual fee increases from 2005 to present In order to meet the objective of full cost recovery it was necessary to increase fees over and above the annual CPI rates. From 2005 to 2010 cemetery fees have increased a total of 63.9%: TABLE 5 – FEE INCREASES YEAR 2005 2006 2007 2008 2009 2010*

FEE INCREASE 51% 0% 6.2% 4.5% 1.2% 1.0%

(3) Use of family/heritage lots There is an increasing trend in the use of “family” or “heritage” lots, which are either left to someone through a “Will” or if no “Will” is available through Provincial Intestate Law. People are more knowledgeable now of cemetery regulations and the legislation governing use of burial sites. The age of municipal cemeteries contributes to this trend as the volume of heritage lots is greater than most other municipal cemetery operations. Historically the purchase of 8 to 12 graves was common and many of these are still being used by today’s descendants for both traditional and cremation interments. In our consultation with the Funeral Directors, this trend was confirmed. Administration contacted the Registrar of Cemeteries regarding implementation of restrictions on previously purchased lots. Confirmation that the rules and regulations in place at the time of the original sale are the rules that apply to those 'rights' today. In the case where rules and regulations are unknown, cemetery owners are obligated to honour current regulations. (4) Geographic area There are many non-municipal cemetery operations within Chatham-Kent where cemetery services are priced much lower than similar services offered by the Municipality. Since implementing the 2005 Business Plan increases in the price of cemetery services has resulted in a greater price difference between municipal and non-municipal cemetery operations.

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(5) Lack of Services The lack of columbarium services and the corresponding increase in cremation rates is creating a demand/service void. The plans to implement columbarium services will be presented in Section 5.13 of this document. The current Cemeteries base budget lot sales revenue is based on projected lot sales from the original 2005 Cemeteries Business Plan (620 lots in 2010). This revised Business Plan projects lot sales to grow at the same pace as the growth in projected Death Registrations: 2010 – 2014: TABLE 6 – LOT SALES YEAR

LOT SALES

2009* 2010 2011 2012 2013 2014

252* 240 242 245 247 250

3.6 CARE AND MAINTENANCE TRUST FUND The purpose of Care and Maintenance funds are to allow for proper maintenance of the cemetery once revenue sources have diminished. In spite of declining lot sales the Care and Maintenance trust fund continues to grow, however, at a slower pace as illustrated in the following graph. There has been a plateau on the interest earned due to declining rates of return: GRAPH 2

TRUST FUND & INTEREST $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2004

2005

2006

TRUST FUND

2007

2008

2009

2010*

INTEREST EARNED

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Although interest earned has been sustained through the benefit of long-term investments, it cannot continue at these levels with suppressed interest rates: • 2004 5.7% • 2005 4.9% • 2006 4.6% • 2007 4.5% • 2008 4.4% • 2009 4.6% • 2010 4.0% (estimated) The 2010 budget projects a reduction of $12,808 from 2009 to reflect these declining interest rates. In spite of growth in the overall fund, administration anticipates that by 2011 the interest earned annually will begin to decline more substantially if interest rates remain at current levels (yields for maturing investments are currently at 2.3%). TABLE 7 - TRUST FUNDS

YEAR

FUND BALANCE

PROJ'D YIELD

2009* 2010 2011 2012 2013 2014

$3,938,552* $4,061,926 $4,188,404 $4,318,381 $4,452,284 $4,590,231

4.62%* 4.00% 3.50% 3.30% 3.10% 3.20%

*does not include trust fund contributions from columbaria

During our consultation with local funeral directors, it was suggested that administration considered shifting the proportional overall costs for lot sales and interments, that is, decreasing lot fees and increasing burial fees creating cost neutral fees with less exposure to the 40% care and maintenance amount. The proposed fee schedule is weighted towards insuring the sustainability of the Care and Maintenance Fund. The Cemeteries Act requires that defaulted cemeteries and related liabilities transfers to municipal authorities. Therefore, trust funds must be managed to provide for this potential liability. Any significant increase in lot or burial fees risk a reduction in overall revenues as potential customers will seek lower cost options. The annual cost to maintain cemeteries increases over time. The purpose of Care and Maintenance funds are to allow for proper maintenance of the cemetery once revenue sources have diminished. As the Care and Maintenance funds are presently underfunded, a decrease in lot pricing would have a further negative impact on the fund.

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3.7 BURIALS AND COLUMBARIA During the period of time (2004 – 2010) burials were tracking close to original projections but have started to lag over the past 3 years GRAPH 3

MUNICIPAL CEMETERY BURIALS 1,200 1,000 800 600 400 200 0 2004

2005

2006

2007

2008

BUSINESS PLAN (2005) BURIALS

2009

2010*

ACTUAL BURIALS

The current Cemeteries base budget for Opening and Closing revenues is based on projected death rates and 65% market share in the original 2005 Cemeteries Business Plan (770 burials in 2010). Burials are projected to decline at the rate of 1% per year: 2010 – 2014: TABLE 8 - ANNUAL BURIALS YEAR 2009* 2010 2011 2012 2013 2014

BURIALS 653* 647 641 634 628 622

Burial revenues would decline at the rate shown above, plus, yearly CPI. This Business Plan recommends a reduction from the base budget in Opening and Closing revenues of $12,265. Some reasons for this decline are as follows: (1) Non-municipal cemetery operations As mentioned earlier, the 63.9% increase in fees over the last six years has caused a major price differential between municipal and non-municipal cemetery operations. 14

Funeral establishments within the Municipality are experiencing the same economic pressures as others in the bereavement industry and it would follow that they would make customers aware of the various alternatives to municipal cemeteries. (2) Shift towards cremation Cremation interments are less expensive and present no immediate necessity for disposition. Families who choose cremation have the advantage of time: -

time to choose what form of cemetery disposition they prefer, if any at all time to determine whether interment in their present community or a former one is preferred time to determine if they will inter right away or wait until a spouse / partner has been cremated and then make that decision to determine what alternatives there are and make the choice that best addresses their personal needs.

The burials projected, above, do not include columbaria. The addition of columbaria to the municipality’s current cremation options will bring about an increase in the total number of cremation burials, specifically as it relates to the number of niche interments. This will ultimately decrease the percentage span between the municipality and the comparator average, yet will not affect the current rate of full burials During Business Plan discussions, it was suggested that Cemetery staff “Explore other products and services demanded by customers not conveniently available from the private sector.” One of these products was columbaria. In May 2008, staff explored the financial aspects of columbaria and determined there was sufficient financial justification to proceed with further research. In December 2009 Council approved the request to proceed with a request for proposals (RFP) on Columbaria for the Municipality’s active cemeteries. Council requested Greenwood Cemetery be included due to the operating partnership. In 2010 an RFP was sent to eight companies. Administration also consulted with area Funeral Directors who identified a public interest in columbaria at the following cemeteries: Evergreen (Blenheim), Dresden (Dresden), Greenwood (Ridgetown), Maple Leaf (Chatham) and Riverview (Wallaceburg). The Funeral Director servicing Bothwell/Thamesville recommended that columbaria was not required in either community at this time. Administration will continue to monitor this initiative for these two communities. If the recommendation for columbaria in the report is approved the terms for repayment of the capital investment for the Greenwood Cemetery would be incorporated into the revised agreement between Greenwood Cemetery Corporation and the Municipality of Chatham-Kent.

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3.8 COST OF OPERATIONS Chatham-Kent Cemeteries operate on a highly efficient operating cost basis. Comparing Chatham-Kent operating costs (2009) to other Ontario municipal cemetery operating costs for both cost per acre and cost per burial shows Chatham-Kent cost lower: TABLE 9 - MUNICIPAL COMPARATOR OPERATIONAL COSTS

Municipality Brantford Kitchener Niagara Falls Oakville Owen Sound St. Thomas Waterloo AVERAGE Chatham-Kent

No. of Active Cemeteries 3 3 2 1 2 2 2 2.14 7

No. of Burials (2009) 307 742 554 273 190 59 423 364 652

Total Acres 93 195 96 48 40 37 80 84.14 299

Annual Op Costs $567,895 $1,473,558 $1,578,593 $891,200 $309,196 $161,974 $1,441,265 $917,669 $1,130,655

Cost per Acre $6,106 $7,557 $16,444 $18,567 $7,730 $4,378 $18,016 $10,906 $3,781

Cost per Burial $1,850 $1,986 $2,849 $3,264 $1,627 $2,745 $3,407 $2,521 $1,734

The measurement of operating cost/acre is 1/3 of the comparators average, while the cost per burial 2/3 that of the same comparators. Additionally, Chatham-Kent staff maintains 3.6 times the total acreage of the above comparators and 3 times the number of active sites. The effective use of contractors for grass cutting and some burials has contributed to effective cost control. Chatham-Kent’s annual operating costs represent 2009 actual costs with allocations for corporate, departmental, divisional and sectional services. Information provided from other cemeteries regarding annual operating costs has not specified if any allocation for corporate services are included. A similar comparison of staffing efficiencies identifies the same results: TABLE 10 - MUNICIPAL COMPARATORS COST PER STAFF

Municipality

No. of Cemeteries

Total Acres

No. of Active

Active Acres

2009 Burials

No. of Staff*

Acres/ Staff

Burials/ Staff

Brantford Kitchener Niagara Falls Oakville Owen Sound St. Thomas Waterloo AVERAGE

5 6 20 8 2 2 2 6.43

93 195 96 48 40 37 80 84.14

3 3 2 1 2 2 2 2.14

90 120 93 25 40 37 80 69.29

307 742 554 273 190 59 423 364

5 9 11 5 4.25 2 10 6.61

18.60 21.67 8.73 9.60 9.41 18.50 8.00 12.74

61.40 82.44 50.36 54.60 44.71 29.50 42.30 55.09

Chatham-Kent

65

299

7

207

653

7.99

37.42

81.73 16

* Does not include seasonal and summer students.

Operating styles and conditions vary widely among these comparators. Some observations are worth noting: -

The Acres/Staff measurement indicates that Chatham-Kent staff maintains considerably greater acreage per staff member than comparator municipalities. Chatham-Kent’s effective use of private sector grass cutting and some burials contractors account for much of this significant variance.

-

The number of annual burials/ staff (openings and closings) illustrates a more valid comparison of staff efficiencies in the Chatham-Kent Cemeteries and is comparable to the Kitchener operation.

-

Active cemeteries are located within the urban centres where Chatham-Kent cemeteries are municipal wide.

Prior to 2003 extra charges for weekends, holidays and for funerals arriving after 3:30 p.m. Monday through Friday off-set corresponding overtime costs. In December 2003, Council passed the following motion: “The cost of providing the overtime service be absorbed in the Cemeteries operating budget until the Business Plan is completed. The following chart shows the overtime costs for the past seven years: TABLE 11 - OVERTIME COSTS Year 2003 2004 2005 2006 2007 2008 2009

Cost $25,321 $31,472 $36,749 $40,406 $37,989 $42,063 $35,651

The majority of overtime expenses are a direct result of burials during non-traditional hours. 3.9 TAX BASE SUPPORT As a result of the aforementioned information cemeteries have not been able to reach the full cost recovery objective set out in the 2005 Business Plan. Since the implementation of the 2005 Cemeteries Business Plan tax base support for Cemeteries is shown in the following chart:

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TABLE 12 - ANNUAL VARIANCES YEAR (SURPLUS) / DEFICIT 2004 ($17,357) 2005* ($19,209) 2006* $76,001 2007* $126,541 2008* $234,976 2009* $241,450 2010** $257,122 * includes Corporate cost allocations + price increases

CORP COST ALLOCATIONS $0 $0 $161,397 $188,685 $195,422 $204,500 $206,545

Cemetery financial results for the past three years summarized by cost and revenue type are summarized in the following chart: TABLE 13 - FINANCIAL RESULTS

OP COSTS: Wages Benefits Utilities Insurance Fleet Grass Cutting Contracts Service Allocations Telephones - cell Materials Life cycle Heritage Pres. Other REVENUES: Lot Sales Open & Closing Death Registrations Interest Earned Off Hours Revenues Other (Surplus) / Deficit

2007

2008

2009

$350,069 $68,200 $18,475 $3,956 $164,283 $181,434 $6,745 $188,685 $3,837 $19,540 $0 $0 $22,361 $1,027,585

$356,800 $69,084 $20,683 $4,153 $159,149 $177,250 $27,396 $195,422 $3,297 $20,853 $0 $0 $5,299 $1,039,386

$356,318 $69,895 $19,074 $4,336 $157,350 $211,245 $29,801 $204,500 $2,468 $32,219 $38,253 $0 $5,196 $1,130,655

($202,332) ($499,747) ($22,567) ($168,858) $0 ($7,540) ($901,044) $126,541

($140,560) ($465,811) ($22,431) ($173,101) $0 ($2,507) ($804,410) $234,976

($192,647) ($488,115) ($22,959) ($182,428) $0 ($3,055) ($889,205) $241,450

3.10 BUSINESS MODEL A study of cemetery operations in various southern Ontario municipalities demonstrates a variety of: • operating structures • cost self-sustainability • provision of other death care industry products and services 18

TABLE 14 - MUNICIPAL SUBSIDIES MUNICIPALLY SUBSIDIZED MUNICIPALITY Brantford Cambridge Kitchener Niagara Falls Oakville Owen Sound St. Thomas Waterloo Chatham-Kent

STRUCTURE Municipal Municipal Municipal Municipal Municipal Municipal Commissioned Municipal Municipal

YES YES YES YES YES YES NO NO NO

OTHER PRODUCTS NO NO YES NO NO NO YES YES NO

Chatham-Kent has chosen not to employ a competing business model. As summarized in the guiding principles, the Municipality has adopted a model in which it does not compete directly with the private sector to offer death care services. The City of Waterloo Cemetery Operations competes with the private sector by offering a full range of services from traditional cemetery services to cremation, memorial sales, urn sales, and other ancillary products. It operates as a separate business under the umbrella of the municipal structure and is financially self-sustaining. A unique characteristic for cemetery services in Chatham-Kent is the absence of private sector for profit cemetery operations. Given the geographic location, demographics and low population growth projections for Chatham-Kent it is unlikely that private sector cemetery operations will find this market attractive in the future. This Business Plan assumes a continuation of Chatham-Kent municipal cemeteries as the primary provider of burials in Chatham-Kent. Within Chatham-Kent other burial sites are provided by church, religious or family operated cemeteries. A 1997 Privatization Committee Report to Council discouraged the privatization of Maple Leaf Cemetery while increasing revenues, through rates, and decreasing operating costs. EXTERNAL 3.11 THE CEMETERIES ACT Our municipal Cemeteries are governed under the provisions of the Cemetery Act (Revised 1990) of Ontario. All licensed cemeteries in Ontario are required to report annually to the Ministry of Consumer and Business Services – Cemeteries Regulation Section, detailing: • • •

annual census of activities for the previous year proposed fee changes for the upcoming year for Ministry approval application for license renewal for the upcoming year 19



Ministry approval of Cemetery By-laws, Contracts, Terms of Condition, Rules/Regulations and any revisions to such documents used for Cemetery Operations

Chatham-Kent Cemeteries is required to operate in compliance with the Cemeteries Act. It is important to be aware that the Cemeteries Act requires that any abandoned cemetery operation must be assumed by the municipal authority and care and maintenance also becomes the responsibility of that municipal authority. There are 50 non-municipally operated (church, family, community) cemeteries in Chatham-Kent. Experience with the three cemeteries abandoned since 1998 is that none had adequate Care and Maintenance Funds. The existing Chatham-Kent Care and Maintenance Fund does not provide for any liability associated with the 50 non-municipally operated cemeteries. Any future abandonment’s will have Trust Fund implications. Under the Cemeteries Act, (R.S.O. 1990, c. C.4) cemetery owners are obligated to repurchase interment rights if written notice is received from the interment rights holder and the rights have not been used (no activity has occurred). There is no time limit to such requests. This requirement represents an ongoing unknown financial liability for the Municipality. Refunds must be at the original purchase price minus the nonrefundable Care and Maintenance portion. In 2008, the expense for Interment Rights refunds was $18,525 with $1,023 refunded in 2009. Municipal by-laws must also be complied with. Cemeteries operate in compliance with Chatham-Kent municipal by-laws. 3.12 PRICE COMPARISON TO OTHER MUNICIPAL CEMETERIES Following is a comparison of 2009 cemetery fees including those of Chatham-Kent. TABLE 15 - PRICE COMPARISONS

Municipality

Single Grave Upright **

2 Grave Adult Lot

Adult Interment

Cremation Interment

Oakville

$3,340

$6,680

$863

$443

Cambridge

$1,075

$2,150

$821

$253

Kitchener

$1,600

$2,663

$852

$300

Niagara Falls

$970

$1,940

$845

$250

St. Catharines

$1,358

$3,551

$900

$344

St. Thomas

$550

$1,100

$500

$250

Brantford

$1,075

$2,150

$821

$253

Owen Sound

$1,165

$2,060

$770

$285

Waterloo

$1,675

$3,200

$860

$300

Community Average Chatham-Kent

$1,423

$2,833

$804

$298

$1,345

$2,690

$975

$311

Presently, the municipality’s rate for a single adult lot compares favourably with the group average. Some comparator communities charge a premium for single grave lots 20

that permit an upright monument, Chatham-Kent does not. Interment fees in ChathamKent are slightly higher than the group average.

4.0

STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS (SWOT) ANALYSIS Strengths

• • • • • • • • •

Operates with minimal staff Control mechanisms in place for tracking performance Customer service oriented Experienced and knowledgeable staff Increasing volunteer assistance Collection of unusual art & sculpture Diverse cultures of cemeteries Source of genealogical records Encourage non-traditional uses such as wedding photo shoots

Weaknesses • • •

• • • • • •

Opportunities • • • • • • •

Columbaria will provide alternative choices Naturalized areas promote healthy environments Enhanced beautification can promote areas as walking paths/trails Increased use results in reduced vandalism Heritage tourism – promote local culture and history Land opportunities allow for future growth Construction of columbaria at one or more active cemeteries

Provincial mandate restricts marketing initiatives Increases to fee schedules have negative impact Budget limitations affects staffing, maintenance and ability to evolve with trends Multiple agendas cause confusion Failing foundations Lack of public washrooms Large geographic area, resulting in increased operating costs Outstanding re-negotiation of Greenwood Cemetery contract Lack of options for interments for those who choose cremation Threats







• • • •



Municipal population growth is low, resulting in limited opportunity to grow market share Abandonment issues arising from the New Cemetery Act -smaller private operations will find it difficult to meet the standards of the new act and will cease to operate. Declining interest rates negatively impact our investment income from our Care and Maintenance fund Healthier aging population Vandalism Neglect due to insufficient funding Increased trend in cremations and no requirement for interment has negative impact on sales Private cemetery operators offer lower rates

21

5.0 RECOMMENDATIONS 5.1 CARE AND MAINTENANCE FUND Recommendations: Adopt the recommended price model designed: a. to sustain the Municipalities Care and Maintenance fund b. to mitigate the risk of abandonment resulting from the new Cemetery Act and c. to substantially contribute and to the operating costs of the active cemeteries 5.2 REDUCTION IN REVENUES FROM LOT SALES Recommendations: Accept the following projections for the 2010-2014 Cemeteries Business Plan: a. Lot sale revenues would grow at the same rate as registered deaths, plus, yearly CPI b. Adopt the following lot sale projections for the 2010-2014 Cemeteries Business Plan Reference - Table 6 – Lot Sales – Page 11 YEAR LOT SALES* 2009 252 2010 240 2011 242 2012 245 2013 247 2014 250 *lot sales projected above do not include columbaria.

5.3 REDUCTION IN REVENUES FROM OPENINGS / CLOSINGS Recommendations: Accept the following projections for the 2010-2014 Cemeteries Business Plan: a. Opening and Closing volume revenues would decline at the rate of 1.00% per year b. Opening and Closing rate revenues would increase at the yearly CPI c. Adopt the following burial projections for the 2010 – 2014 Cemeteries Business Plan Reference – Table 8 - Burials – Page 14 YEAR 2009 2010 2011 2012 2013 2014

BURIALS* 653 647 641 634 628 622

* burial projections above do not include columbaria 22

5.4 ANNUAL INCREASE IN FEES Recommendation: Fee increases continue to change, annually, at the budgeted CPI rate. Staff considered a concept whereby cemetery fees be reduced to generate higher sales volumes and accordingly more revenue. Any fee decrease would require an equal sales volume increase in order to maintain current revenues. To realize an increase in revenues the volume in sales activities would need to increase even further. The price increase in 2005 changed the purchasing behaviour of consumers. A reduction in fees at this point would not influence that behaviour. In order to attract a cost sensitive market, fees would need to decrease substantially. Decreasing fees without corresponding increases in volume would also further compromise an underfunded Care and Maintenance Fund. Staff also considered the negative impact any reduction in pricing would have on customers who had made cemetery purchases within the past few years and saw this as a potential public relations concern.

5.5 INCREASE IN EXPENSE FROM GRASS CONTRACT Recommendation: Provide a 2010 base budget for the increased amount in the 2009 re-tendered “Surrounding” grass cutting contract. Presently there are two 5-year contracts for seasonal grass cutting: 1. Chatham 2. Surrounding (i.e., all other parts of Chatham-Kent) In 2009, the “Surrounding” contract was re-tendered and approved; this resulted in an additional annual cost of $9,512 for cemetery operations. Each year for the 5-year term of the contract, the price will be increased by the Bank of Canada CPI. 5.6

REFUNDS ON INTERMENT RIGHTS

Recommendation: Provide a 2010 base budget for projected legislated repurchases of interment rights of $5,000.

23

5.7

INCREASE IN REVENUES FROM IMPLEMENTATION OF PREMIUM RATES

Recommendation: Implement premium Opening and Closing fees for interments outside traditional operating hours. Through the implementation of additional charges for weekdays, necessitating work after 5:00 p.m., Saturdays and holiday funerals. it is projected that there will be a positive revenue outcome of $21,776. The fees would be as follows:

TABLE 16 - PREMIUM RATES Interment Type Adult Interment Cremation Interment Child/Infant Interment

Premium Rates* After 5:00 pm Saturday $75/ half hour $240 $75/half hour $120 $75/half hour $120

Holiday $320 $160 $160

*Would require Ministry approval prior to implementation.

At the October 27, 2009 meeting with the Funeral Directors, it was the consensus of those present that premium rates be implemented, but limited to Monday through Friday after 5:00 p.m. and on all Saturdays and holidays to offset a portion of overtime expenses. 5.8

FAMILY SERVICE COUNSELLOR CONTRACT POSITION

Recommendation:

Change the role of the contract Family Services Counsellor to a full time, more generic position, of Cemetery Coordinator. This change will result in a budget reduction of $17,261 through the elimination of commission presently paid on sales and through a savings on benefit coverage. This change would also utilize staff time more effectively. The large geographic area that is involved is a major consideration in the requirement for a Cemetery Coordinator. In addition to pre-need and at-need sales, the Coordinator would assist the Cemetery Supervisor with their duties. As outlined in the Cemeteries Act, (R.S.O. 1990, c. C.4) downloading sales to Funeral Home Directors is prohibited. 5.9 SHERMAN CEMETERY Recommendation: Establish a 2010 base budget for Sherman Cemetery (Thamesville). T

24

he following chart outlines the required operational budget for Sherman Cemetery. TABLE 17 - SHERMAN CEMETERY - THAMESVILLE Sherman Cemetery Base Budget Proposal Revenues: Annual Expenses: Grass cutting $ 5,544 Contracts (open/close) $ 8,009 Other $ 1,162 $14,715 Total Base Dollars Required:

($6,801)

$7,905

5.10 SHRUB PROGRAM Recommendation: Create a 2010 base budget for a shrub trimming/removal program. Presently, the Cemeteries By-law dictates that it is the responsibility of the lot owner to maintain all shrubs installed on their lot. Occasionally staff will remove and/or trim overgrown shrubs as a courtesy. A shrub program would enhance the landscape of the cemeteries as well as relieve maintenance and grass cutting challenges. It is anticipated that revenues of $1,000 will be generated through this program. TABLE 18 - FEE SCHEDULE FOR SHRUB PROGRAM SERVICE Trim Shrubs

SIZE Under 1.5 metres Over 1.5 metres

FEE* $7.50 $12.50

Shrub Removal

Under 1.5 metres $12.50 Over 1.5 metres $17.50 Over 2.0 metres $25.00 *Would require Ministry approval prior to implementation.

5.11 INCREASE IN LEVELS OF SERVICE Recommendations: 5.11.1 Summer Student Increase the 2010 base budget for student hours from 353 (8 weeks per year) to 560 (14 weeks per year) allowing the student to assist with the May and June preparation and planting plus part time pay equity. The change in service level would result in enhanced cemetery horticultural displays as well as keep the cemetery student hours consistent with other 25

municipal student hours. The cost of this increase in student summer hours is $3,893. 5.11.2 Grass Cutting Increase the 2010 base budget for grass cutting in six of the seven active cemeteries from an “A” level (18 cuts per season) to “A+” (22 cuts per season). With a cutting season of 27 weeks (May 1 to November 1), an “A” level service equates to one cut every 1.5 weeks. “A+” would provide four additional cuts per year equating to one cut every 1.23 week allowing for a weekly cut during the months of May, June, September and October with a reduced cut during the hotter months of July and August. The proposed budget for this increased level of service is $19,546. Over the past five years, public complaints have resulted in staff increasing the number of cuts to satisfy the expectations of our customers. 5.11.3 Volunteers Establish a base budget for the volunteer preservation of Cemetery heritage memorials. In November of 2009, Council passed a Notice of Motion recommending that a budget of $10,000 be approved for the preservation of heritage memorials in municipal cemeteries. Administration spoke with volunteers to discuss an appropriate budget that would assist them with future projects. A $10,000 budget would not only assist them with current projects, but will assist in expanding their efforts. During Budget 2010, this amount was approved. 5.12

GREENWOOD CEMETERY

Recommendation: Renegotiate the Greenwood Cemetery Corporation contract to ensure all direct expenses of the Municipality of Chatham-Kent are recovered from revenues. 5.13

COLUMBARIA

Recommendation: Construct columbaria at five of the active seven cemeteries at an estimated one-time cost of $147,941 including cost of foundations and landscaping:

26

Cemetery

# of Niches

# of Units

Amount

Blenheim

80

1

$32,907

Chatham

80

1

$32,907

Dresden

48

1

$24,610

Ridgetown

48

1

$24,610

Wallaceburg

80

1

$32,907 $147,941

Greenwood Cemetery has requested the opportunity to participate in this investment in order to take advantage of the municipal’s volume pricing. Business case analysis’ for these individual columbaria installations are attached to this Business Plan and summarized in the following chart:

Cemetery

# of Niches

Annual Demand

Capital Payback (yrs)

Return on Investment

Blenheim

80

10

2.13

37.95%

Chatham

80

25

0.80

78.34%

Dresden

48

6

2.64

27.97%

Ridgetown

48

6

2.64

27.97%

Wallaceburg

80

15

1.37

51.42%

All columbaria make a positive contribution to the tax base funded Cemeteries deficit, throughout the duration of this business plan, starting in the first year of operations: • • • • •

2010 2011 2012 2013 2014

$ $ $ $ $

0 78,578 82,428 99,973 60,541

27

5.14 WALLACEBURG WATER IMPROVEMENT ASSESSMENT Recommendation: Provide one-time funding for Riverview Cemetery’s share of the local water improvement distribution assessment. During 2010 Riverview Cemetery in Wallaceburg was assessed its one-time share of the Wallace Street water improvement project of $17,716. Administration requests 2010 one-time funding to provide for this item.

6.0

FINANCIAL INFORMATION

6.1 COSTS AND REVENUES FOR SERVICES AND PRODUCTS Using 2007 – 2009 as the projection base for Cemeteries costs and revenues and applying the recommendations from Section 5.0 of this report the following five-year projections are arrived at:

TABLE 19 - CEMETERY FINANCIAL PROJECTIONS 2010

2011

2012

2013

2014

$365,244 $74,348 $20,198 $4,361 $158,924 $216,123 $23,000 $206,545 $3,297 $23,681 $35,858 $10,000 $0 $0 $26,172

$372,568 $75,835 $20,804 $4,492 $161,308 $219,365 $23,345 $209,643 $3,395 $24,036 $36,396 $10,150 $26,720 $5,918 $8,575

$380,951 $77,541 $21,637 $4,672 $164,131 $223,752 $23,812 $213,311 $3,531 $24,457 $37,033 $10,328 $26,720 $4,849 $8,728

$389,523 $79,286 $22,502 $4,858 $167,413 $228,786 $24,348 $217,578 $3,673 $24,946 $37,773 $10,508 $26,720 $3,780 $8,905

$399,261 $81,268 $23,627 $5,101 $170,761 $234,506 $24,956 $221,929 $3,856 $25,445 $38,529 $10,692 $18,493 $2,711 $9,098

TOTAL

$1,167,750

$1,202,549

$1,225,451

$1,250,599

$1,270,235

REVENUES: Lot Sales - net Opening & Closing Death Reg. Fees Interest Earned Columbaria Rev's Other

-$181,605 -$515,067 -$23,421 -$166,940 $0 -$1,000

-$181,883 -$518,265 -$24,010 -$150,732 -$115,630 -$1,015

-$187,067 -$522,777 -$24,674 -$146,530 -$118,521 -$1,033

-$192,891 -$528,635 -$25,420 -$141,917 -$135,110 -$1,053

-$201,039 -$534,569 -$26,187 -$151,034 -$84,353 -$1,074

TOTAL

-$888,034

-$991,536

-$1,000,602

-$1,025,027

-$998,256

(Surplus)/Deficit

$279,716

$211,013

$224,849

$225,572

$271,979

OP: COSTS: Wages Benefits Utilities Insurance Fleet Grass Cutting Contracts Service Allocations Telephones - cell Materials Life cycle Heritage Pres. Columbaria Amort Columbaria Interest Other

28

6.2 BUDGET ADJUSTMENTS Incorporating the financial considerations identified in Sections 5.1 – 5.14 would affect Cemeteries budget as follows:

TABLE 20 – RECOMMENDED 2010 BUDGET ADJUSTMENTS

RECOMMENDED CEMETERY BASE BUDGET ADJUSTMENT

5.2 5.3

2010 Base budget Lot Sales Burials Interest earned Death registrations Fleet Materials Other

$16,416 Volume $220,341 Volume $12,265 Rate $12,808 Volume Volume Volume

-$7,775 $14,899 -$25,263 $2,489 $229,764

Adjusted Business Plan Base Budget 5.5 5.6 5.7 5.8

"Surrounding" grass contract Refunds on interment rights "Off-hours" opening & closing fees Convert Family Service Counsellor Sherman 5.9 Cemetery 5.10 Shrub program 5.11 Level of service Summer Student A+ grass cutting Volunteers (Heritage Preserv.)

$246,180 $9,512 $5,000 -$21,775 -$17,261 $7,905 -$1,000 $3,893 $19,546 $10,000 $15,820

Recommended 2010 Adjusted Base Budget

$262,000

One-time supplemental request - Wallaceburg water improvement assessment

$17,716

Columbaria financial impact not felt until 2011, see Section 5.13. 29

7.0 CONSULTATION WITH FUNERAL DIRECTORS On October 27, 2009, staff met with community Funeral Directors to discuss topics from the report that would affect their respective areas and comments noted are as follows. Hours of Operation The hours of operation are set forth under the CUPE Contract involving both Cemetery and Public Works staff. Therefore any changes must be negotiated at contract renewal. There are a number of variables that also affect each internment and require preparation time in advance of the interment. These factors include: • • • • •

record searches site investigation scheduling of staff co-ordination with others ground and weather conditions

Premium Rates It was the consensus of those present at the meeting that premium rates be implemented, but limited to Monday through Friday after 5:00 p.m. and on all Saturdays and holidays to offset overtime expenses. Green Burials Concern for the environment now influences decisions made concerning disposition. Green burials are defined by the use of non toxic materials and fluids during the funeral/burial process. Individuals are buried with earth friendly products in a naturalized area of the cemetery to reduce their carbon footprint. Cemetery staff will work with local Funeral Directors to monitor the public demand for Green Burial. At Need Financing Discussions with Funeral Directors revealed that some feel this is part of their customer service, while others felt that they should not have to carry bad debt on behalf of municipal burials. Administration suggested that customers had other alternatives for this type of credit (Visa, MasterCard, etc.) and allowing financial support could potentially cause an increase to municipal ‘bad debt’ accounts. Upon careful consideration, administration feels that due to the lack of recourse after interment occurs, it is not in the Municipality’s best interest to extend credit in these situations. 30

Minutes of the October 27, 2009 meeting with Funeral Directors are found in Attachment “A”.

8.0 MEASUREMENT PLANS The key measurable in meeting the Goals and Objectives of this Business Plan are: • • • • •

Land acquisition 3 years prior to need Rate escalation ladder Operating cost control Sale of burial lots and mausoleum crypts and niches Customer Satisfaction

Various mechanisms are in place within the Municipalities’ control systems to track these key measurable and provide regular appraisal towards the success of this Business Plan: TABLE 21 – KEY MEASURABLES KEY MEASURABLE Land Acquisition

TRACKING PROCESS Reports to Council

Pricing

CK TRAAX

Operating Cost Control

Budget Variance Reports

Sales of Lots

CK TRAAX

Customer Satisfaction

CK TRAAX

These control mechanisms will be utilized in tracking the Cemeteries performance to this Business Plan over the next five years.

9.0 SUMMARY This Cemeteries Business Plan supports the Chatham-Kent Corporate Plan in the following sections: A. Accountable and Responsive Government Desired Outcomes: • Increased public satisfaction in our customer service • Use of best practices as standard procedures B. Communication Desired Outcomes: • Fully engaged employee base in the decisions of the organization 31

C. Sustainable Growth Desired Outcomes: • Strong and productive relationships with a wide variety of public, private and notfor-profit agencies D. Capturing Opportunities Desired Outcomes: • Community participation in social, recreational, heritage, cultural and learning activities • Clear understanding throughout the community of standards and targets for heritage protection E. Health and Safety Desired Outcomes: • Trails and green spaces throughout Chatham-Kent • Increase in forest cover and natural areas Cemetery Operations is a vital part of the Chatham-Kent community. This document should provide a financial security over the next five years. As with most Business Plans, a five-year review would be implemented.

32

COLUMBARIUM ANALYSIS EVERGREEN CEMETERY

M ODEL CAPITAL '10 INTEREST RATE OPEN & CLOSE

YEAR 0 1 2 3 4 5 6 7 8 9 10

80-niche $32,907 4.00% $160

NO. OF NICHES INT PER NICHE CARE & M TC % PLAQUE (NET)

80 1.50 15.00% $350

ANN. TAKE-UP INFL RATE NICHE PRICE OFF-SET REVS

10 2.50% $1,500 10.00%

OPENING BALANCE $0 $32,907 $28,794 $24,680 $20,567 $16,454 $12,340 $8,227 $4,113 $0 $0

INTEREST CHARGED $0 $1,316 $1,152 $987 $823 $658 $494 $329 $165 $0 $0

CAPTIAL COST $32,907 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

CAPTAL AM ORT. $0 $4,113 $4,113 $4,113 $4,113 $4,113 $4,113 $4,113 $4,113 $0 $0

CLOSING BALANCE $32,907 $28,794 $24,680 $20,567 $16,454 $12,340 $8,227 $4,113 $0 $0 $0

PAYBACK

2.13

RETURN ON INVESTM ENT >>>>

CASH FLOW -$32,907 -$16,286 $949 $18,808 $37,303 $56,445 $76,246 $96,720 $117,878

37.95%

COLUMBARIUM ANALYSIS MAPLE LEAF CEMETERY

M ODEL CAPITAL '10 INTEREST RATE OPEN & CLOSE

YEAR 0 1 2 3 4 5 6 7 8 9 10

80-niche $32,907 4.00% $160

NO. OF NICHES INT PER NICHE CARE & M TC % PLAQUE (NET)

80 1.50 15.00% $350

ANN. TAKE-UP INFL RATE NICHE PRICE OFF-SET REVS

25 2.50% $1,500 10.00%

OPENING BALANCE $0 $32,907 $22,624 $12,340 $2,057 $0 $0 $0 $0 $0 $0

INTEREST CHARGED $0 $1,316 $905 $494 $82 $0 $0 $0 $0 $0 $0

CAPTIAL COST $32,907 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

CAPTAL AM ORT. $0 $10,284 $10,284 $10,284 $2,057 $0 $0 $0 $0 $0 $0

CLOSING BALANCE $32,907 $22,624 $12,340 $2,057 $0 $0 $0 $0 $0 $0 $0

RETURN ON INVESTM ENT >>>>

PAYBACK

0.80

CASH FLOW -$32,907 $10,621 $55,683 $102,304 $111,881

78.34%

33

COLUMBARIUM ANALYSIS DRESDEN CEMETERY

M ODEL CAPITAL '10 INTEREST RATE OPEN & CLOSE

YEAR 0 1 2 3 4 5 6 7 8 9 10

48-niche $24,610 4.00% $160

NO. OF NICHES INT PER NICHE CARE & M TC % PLAQUE (NET)

48 1.50 15.00% $350

ANN. TAKE-UP INFL RATE NICHE PRICE OFF-SET REVS

6 2.50% $1,500 10.00%

OPENING BALANCE $0 $24,610 $21,534 $18,458 $15,381 $12,305 $9,229 $6,153 $3,076 $0 $0

INTEREST CHARGED $0 $984 $861 $738 $615 $492 $369 $246 $123 $0 $0

CAPTIAL COST $24,610 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

CAPTAL AM ORT. $0 $3,076 $3,076 $3,076 $3,076 $3,076 $3,076 $3,076 $3,076 $0 $0

CLOSING BALANCE $24,610 $21,534 $18,458 $15,381 $12,305 $9,229 $6,153 $3,076 $0 $0 $0

PAYBACK

2.64

RETURN ON INVESTM ENT >>>>

CASH FLOW -$24,610 -$14,832 -$4,661 $5,908 $16,883 $28,271 $40,079 $52,315 $64,985

27.97%

COLUMBARIUM ANALYSIS GREENWOOD CEMETERY

M ODEL CAPITAL '10 INTEREST RATE OPEN & CLOSE

YEAR 0 1 2 3 4 5 6 7 8 9 10

48-niche $24,610 4.00% $160

NO. OF NICHES INT PER NICHE CARE & M TC % PLAQUE (NET)

48 1.50 15.00% $350

ANN. TAKE-UP INFL RATE NICHE PRICE OFF-SET REVS

6 2.50% $1,500 10.00%

OPENING BALANCE $0 $24,610 $21,534 $18,458 $15,381 $12,305 $9,229 $6,153 $3,076 $0 $0

INTEREST CHARGED $0 $984 $861 $738 $615 $492 $369 $246 $123 $0 $0

CAPTIAL COST $24,610 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

CAPTAL AM ORT. $0 $3,076 $3,076 $3,076 $3,076 $3,076 $3,076 $3,076 $3,076 $0 $0

CLOSING BALANCE $24,610 $21,534 $18,458 $15,381 $12,305 $9,229 $6,153 $3,076 $0 $0 $0

RETURN ON INVESTM ENT >>>>

PAYBACK

2.64

CASH FLOW -$24,610 -$14,832 -$4,661 $5,908 $16,883 $28,271 $40,079 $52,315 $64,985

27.97%

34

COLUMBARIUM ANALYSIS RIVERVIEW CEMETERY

M ODEL CAPITAL '10 INTEREST RATE OPEN & CLOSE

YEAR 0 1 2 3 4 5 6 7 8 9 10

80-niche $32,907 4.00% $160

NO. OF NICHES INT PER NICHE CARE & M TC % PLAQUE (NET)

80 1.50 15.00% $350

ANN. TAKE-UP INFL RATE NICHE PRICE OFF-SET REVS

15 2.50% $1,500 10.00%

OPENING BALANCE $0 $32,907 $26,737 $20,567 $14,397 $8,227 $2,057 $0 $0 $0 $0

INTEREST CHARGED $0 $1,316 $1,069 $823 $576 $329 $82 $0 $0 $0 $0

CAPTIAL COST $32,907 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

CAPTAL AM ORT. $0 $6,170 $6,170 $6,170 $6,170 $6,170 $2,057 $0 $0 $0 $0

CLOSING BALANCE $32,907 $26,737 $20,567 $14,397 $8,227 $2,057 $0 $0 $0 $0 $0

RETURN ON INVESTM ENT >>>>

PAYBACK

1.37

CASH FLOW -$32,907 -$7,317 $19,194 $46,640 $75,040 $104,411 $114,477

51.42%

35

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