Report to: General Committee Report Date: March 27, 2008

SUBJECT: Cemetery Service Fees

PREPARED BY: Frank Edwards, Ext. 3090

RECOMMENDATION:

That the Fee Schedule for a burial plot be increased to $650.00; and the fee for a cremation plot be increased to $300.00; and,

That staff forward the new Fee Schedule to the Ministry of Government Services, Consumer Protection Branch, Cemeteries Regulation Unit for approval; and further,

That staff be authorized to review the fees every two years and adjust plot fees based on market comparables, as required;

That staff report back to Council by June 24, 2008 with a review of the long term adequacy of the Cemetery Trust Fund;

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

1. Purpose 2. Background 3. Discussion 4. Financial

5. Others (Environmental, Accessibility, Engage 21st, Affected Units) 6. Attachment(s)

PURPOSE:

To increase the burial and cremation plot fees for Town Cemeteries to reflect market comparables.

BACKGROUND:

Under the Cemeteries Act, the Corporation of the Town of Markham is responsible for the administration and maintenance of abandoned cemeteries in the Town. There are presently 17 such cemeteries in the Town. Of these 17 cemeteries, five are still active/open for the purchase of plots and burials and the remaining 12 are considered inactive (See Appendix “A” for more detailed information on the location of the 17 cemeteries, the number of plots taken and the number plots available for purchase). It is important to note that the 12 inactive cemeteries were closed and abandoned at the time the Town assumed or expropriated them. These cemeteries were not opened at the time for the following reasons:

• the location and size of some made it impracticable;
• some were at burial plot capacity;
• no burial location plan was available
• some were pioneer family cemeteries.

The Town provides for single burial plots and cremation plots at the five active cemeteries. As the Fee Schedule for the sale of plots has not been reviewed since 1998, the costs have not kept pace with market comparables.

OPTIONS/ DISCUSSION:

The current fee for a single burial plot at one of the Town’s five active cemeteries is $400.00 and a cremation plot is $200.00. Under the Cemeteries Act, Ontario Regulation 132/92, 40 percent of the fee received must be deposited into a Care and Maintenance Trust Fund administered by the Town. In accordance with the Act, the capital portion of this fund is only to be used for the cemeteries in extraordinary circumstances, such as a natural disaster. As of December 31, 2007, there is $124,978.89 in the Trust Fund. Income from the fund, such as interest earned, can be used for maintenance, security and preservation. The remaining 60 percent of the plot fee is credited to account 210 2109140 (Cemetery Plot Sales) in the operating budget.

Staff has reviewed the burial plot and cremation plot fees for other surrounding municipalities and private cemeteries (see Appendix “B”) and are recommending that the purchase fee for a single burial plot be increased from $400.00 to $650.00 and for a cremation plot from be increased $200.00 to $300.00 based on the average fees from surrounding cemeteries.

Over the past five years the Town has sold 186 burial plots and three cremation plots. This averages to approximately 37 plots per year with a revenue exceeding $8,900.00 (60% of the purchase cost) per year. Increasing the recommended fees would provide additional annual revenue of approximately $5,600.00 to the Town, assuming the Town continues to sell on average 37 plots per year. A chart outlining the budget and actual expenditures and revenue from 2003 to 2007 relative to the operation of Town cemeteries is included as Appendix “C”.

Staff is also recommending that staff be authorized to review the fees every two years and adjust plot fees based on average percentage increase of market comparables.

Under the Cemeteries Act, the Town is required to notify the Ministry of Government Services, Consumer Protection Branch, Cemeteries Regulation Unit of any fee changes related to cemeteries. These changes are subject to their approval. The new fee schedule for plot purchases will come into effect upon Ministry approval.

FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)

Based on the five year average sale of plots, the Town sells approximately 37 plots per year with a revenue exceeding $8,900.00 per year. Increasing the recommended fees would provide additional revenue of over $5,600.00 per year. The increase in revenue will be reflected in the 2009 budget.

The Town has approximately 942 plots remaining (see Appendix A), therefore using the proposed 2008 increase, the total potential revenues would be $612,300 (942 X $650), of which 40% or $244,920 would be deposited in the Trust Fund, and 60% or $367,380 would be transferred to the operating account. Staff will review the long term forecast for the Cemetery Trust Fund for the purpose of determining if the projected Trust Fund balances on deposit will be sufficient to generate sufficient interest income to fund allowable operating expenses, when all the plots have been sold.

Staff will provide this long term adequacy of the Cemetery Trust Fund report to Council before the summer recess.

ENVIRONMENTAL CONSIDERATIONS:

Not applicable

ACCESSIBILITY CONSIDERATIONS:

Not applicable

ENGAGE 21^ST CONSIDERATIONS:

Not applicable

BUSINESS UNITS CONSULTED AND AFFECTED:

Not applicable

________________________ ________________________

Sheila Birrell, Town Clerk Andy Taylor, Commissioner

Corporate Services

ATTACHMENTS:

Appendix “A” – Name and location of cemeteries, number of plots taken and number plots available for purchase

Appendix “B” – Survey of Burial Plot Fees

Appendix “C” – Chart of Cemetery Expenditures and Revenue(2003-2007)

Appendix “A”

Name and Location of Cemetery		No. of plots used or purchased	No. of plots available for purchase
Buttonville 9171 Woodbine Avenue, South of 16th Avenue		802	264
St. John’s Lutheran 8933 Woodbine Avenue, South of 16th Avenue	Not accessible	*Inactive	N/A
Bethel-Lunau 8050 Warden Avenue, North of Highway 407		60	8
St. John’s 7285 Warden Avenue, South of Denison Street		195	120
Hagerman West 7782 Kennedy Road, North of 14th Avenue		69	60
Hagerman East 7791 Kennedy Road, North of 14th Avenue	To capacity	*Inactive	N/A
Eckardt 7872 McCowan Road, North of CNR		328	205
Quantztown 9112 McCowan Road, South of 16th Avenue	No burial plan when assumed	*Inactive	N/A
Cashel 10835 Kennedy Road, North of Elgin Mills Road	No burial plan when assumed	*Inactive	N/A
Raymer 3 Wales Avenue, E/S Highway 48, South of 16th Avenue and end of Wales Avenue	No burial plan when assumed	*Inactive	N/A
Byer 10451 Highway 48, South of Elgin Mills Road	Family cemetery/no access	*Inactive	N/A
First Markham Baptist 10080 Ninth Line, North of Major Mackenzie Drive		242	285
Reesor 9035 Reesor Road, South of 16^th Avenue	Family cemetery	*Inactive	N/A
Clendennen 56 Miramar Drive, N/E Corner of Williamson Road (North of 16^th Avenue and West of 9^th Line)	Family cemetery/ located in parkette	*Inactive	N/A
Boyle Reesor Road, West Side, North of Major Mackenzie	No public access/no burial plan	*Inactive	N/A
Wurtz Reesor Road, East Side, North of Highway 7	No burial plan/no road access	*Inactive	N/A
Thornhill Methodist Normark Drive, West Side, North of Bay Thorn Drive	Located in the park	*Inactive	N/A
Total Plots Used or Purchased Total Plots Available for Purchase		1,696	942

*Inactive: These cemeteries are not open/inactive because:

· the location/size make it impractical to do so;

· they are at burial plot capacity;

· they are pioneer family cemeteries;

· there was no burial location plan available when assumed by the Town.

Appendix “B”

	Burial Plot
	Single Plot	Cremation Plot
Town of Markham	$400.00	$200.00
City of Vaughan	$693.01	$228.29
Town of Richmond Hill	2 dormant cemeteries. No burials
Town of Aurora	Does not administer cemeteries
Town of Newmarket	Does not administer cemeteries
Town of Whitchurch-Stouffville	$940.00	$595.00
Township of King	$460.00	$215.20
Town of East Gwillimbury	Does not administer cemeteries
Town of Georgina	$630.00	$262.50
City of Pickering	Does not administer cemeteries
Town of Ajax	Does not administer cemeteries
Town of Whitby	$695.00	$325.00
City of Oshawa	$628.00	$325.00
Township of Brock	$450.00	$150.00
Township of Uxbridge	Does not administer cemeteries
Township of Scugog	Does not administer cemeteries
Municipality of Clarington	$1,147.37	$401.48
Holy Cross	$1,400.00	$700.00
Christ the King	$1,000.00	$475.00
Thornhill	Cemetery full (all available plots purchased)
Wideman Mennonite	$500.00	$250.00
Melville United	$450.00	no dedicated plots
Elmwood & St. Andrews	$945.00	$420.00
Mount Pleasant	$7,400.00	$1,890.00
Duffin Meadows	$1,354.50	$850.50
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