HomeMy WebLinkAboutCSD-08-096 - Williamsburg Cemetery Section G Development,-
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Community Services
Report To:
Date of Meeting:
Submitted By:
Prepared By:
Wards) Involved:
Date of Report:
Report No.:
Subject:
Community Services Committee
December 1, 2008
Kim Kugler, Director, Enterprise Division
Lorelei Eckel-Braun, Manager Cemeteries
All
November 21, 2008
CSD-08-096
WILLIAMSBURG CEMETERY SECTION G DEVELOPMENT
RECOMMENDATION:
That Council approve the expenditure of $179,000 for the development of section G at
Williamsburg Cemetery to be financed internally from new revenues earned through the sale of
the new lots and niches.
CSD-08-096 - 2 -
BACKGROUND:
Since the opening of Williamsburg in 1995, staff have been working to develop the property in
consort with the conceptual plans approved by council. This phased approach to development
requires strategic investment from time to time based on market demand and consumer trends.
The Cemetery Unit has successfully funded several cemetery developments. The Williamsburg
Dedication Centre/Crematorium ($500,000) was paid back in 2007 and the Williamsburg
Promontory Point Section ($217,000), was scheduled fora 2009 or 2010 payback and was paid
in full in 2006. Currently, there are no outstanding `capital loans' related to phase one cemetery
development.
REPORT:
Detailed plans for the development of section G at Williamsburg Cemetery are now complete.
These plans can be used to develop the section which is located adjacent to the existing natural
wetland for traditional single, double and triple grave monument lots while also incorporating a
circular, cultured stone wall as a feature for a cremation allowing an area for flat and upright
monument options.
This section has been designed to appeal to a broad range of customers. It accommodates the
needs of those wishing traditional burial lots and also provides several different and innovative
concepts for those seeking non-traditional or cremation interments. In providing new and
unique concepts for our families, we have strengthened our ability to meet the needs of our
customers and continue to develop new inventories as other inventories become depleted for
the cemeteries.
FINANCIAL IMPLICATIONS:
The internal financing request in this report is for $179,000 to be used to develop new
inventories within section G. The new inventories will be sold at a premium allowing for a
financial contribution to the operating budget of the Cemetery Unit and a contribution to be
repaid towards the original investment.
The Estimated Development Costs for Section G include:
Landscaping
Consultant
Columbarium
Markers
Wal I Feature
Estimated Interest
$ 8,000
$22,000
$33,000
$ 3,500
$98,000
$14,000
The new inventories over fifteen to twenty years could realize over $1.7 million in operating
dollars to the Cemetery Unit. Repayment of the internal financing is based on using the
incremental revenue generated by premium pricing while the base price will still be allocated to
operating revenue. Utilizing just the incremental revenues, the payback on investment is
expected to take four to six years.
CSD-08-096
-3-
For the first four to six years 35% of the revenues from the new inventories would be applied to
the internal financing and the remaining 65% would be accounted for in the operating budget.
The financial details are outlined in Attachment A.
CONCLUSION:
The development of section G at Williamsburg would result in the establishment of a new
premium priced selection. This unique section, adjacent to a wetland area would provide
customers with a diversity of interment options. This project would be completely self funding.
Kim Kugler,
Interim Director, Enterprise Division
Attachment A -Financial Details
Gross Revenue Projections
Section G Inventory and Potential Revenue
Care Fund Net Operating
Lot Type Size Quantity Cost Premium Gross Revenue Amount Revenue
Upright Child/Infant 3 x 5 122 $ 461 $ 56,242 $ 22,497 $ 33,745
Flat Child/Infant 3 x 3 83 $ 280 $ 23,240 $ 9,296 $ 13,944
Upright Cremation 3 x 3 284 $ 2,237 $ 635,308 $ 254,123 $ 381,185
Upright Triple 9 x 10 12 $ 5,565 $ 66,780 $ 26,712 $ 40,068
Upright Double 6 x 10 333 $ 3,710 $ 1,235,430 $ 494,172 $ 741,258
Upright Single 4 x 10 241 $ 2,544 $ 613,104 $ 245,242 $ 367,862
Flat Single 3 x 10 75 $ 2,008 $ 150,600 $ 60,240 $ 90,360
Reflection Stone Rock 12 $ 5,300 $ 63,600 $ 25,440 $ 38,160
Plaques 16 x 10 12 $ 1,007 $ 12,084 $ 12,084
Installation 12 $ 95 $ 1,140 $ 1,140
Totals $ 2,857,528 $ 1,137,722 $ 1,719,806
Annual Revenue Projections
Section G Proiected Annual Revenues with the loan said in 4 vears
Expected Gross
Sales Cost Premium Revenue
Upright Cremation 6 $ 2,237 $ 13,422 $
Upright Triple 1 $ 5,565 $ 5,565 $
Upright Double 22 $ 3,710 $ 81,620 $
Upright Single 17 $ 2,544 $ 43,248 $
Flat Single 11 $ 2,008 $ 22,088 $
Reflection Stone 1 $ 5,300 $ 5,300 $
Niches 11 $ 2,385 $ 26,235 $
Net annual additional revenue
Section G Proiected Annual Revenues with the loan paid in 5 vears
Expected Gross
Sales Cost Premium Revenue
Upright Cremation 5 $ 2,237 $ 11,185 $
Upright Triple 1 $ 5,565 $ 5,565 $
Upright Double 20 $ 3,710 $ 74,200 $
Upright Single 15 $ 2,544 $ 38,160 $
Flat Single 10 $ 2,008 $ 20,080 $
Reflection Stone 1 $ 5,300 $ 5,300 $
Niches 10 $ 2,385 $ 23,850 $
Net annual additional revenue
Section G Proiected Annual Revenues with the loan said in 6 vears
Expected Gross
Sales Cost Premium Revenue
Upright Cremation 4 $ 2,237 $ 8,948 $
Upright Triple 1 $ 5,565 $ 5,565 $
Upright Double 18 $ 3,710 $ 66,780 $
Upright Single 13 $ 2,544 $ 33,072 $
Flat Single 9 $ 2,008 $ 18,072 $
Reflection Stone 1 $ 5,300 $ 5,300 $
Niches 9 $ 2,385 $ 21,465 $
Care Fund Operating Operating Internal
Amount Revenue Payment Financing
5,369 $ 8,053 $ 4,453 $ 3,600
2,226 $ 3,339 $ 2,739 $ 600
32,648 $ 48,972 $ 35,772 $ 13,200
17,299 $ 25,949 $ 15,749 $ 10,200
8,835 $ 13,253 $ 6,653 $ 6,600
2,120 $ 3,180 $ 2, 580 $ 600
10,494 $ 15,741 $ 9,141 $ 6,600
$ 77,087 $ 41,400
Care Fund Operating Operating Internal
Amount Revenue Payment Financing
4,474 $ 6,711 $ 3,711 $ 3,000
2,226 $ 3,339 $ 2,739 $ 600
29,680 $ 44,520 $ 32,520 $ 12,000
15,264 $ 22,896 $ 13,896 $ 9,000
8,032 $ 12,048 $ 6,048 $ 6,000
2,120 $ 3,180 $ 2,580 $ 600
9,540 $ 14,310 $ 8,310 $ 6,000
$ 69,804 $ 37,200
Care Fund Operating Operating Internal
Amount Revenue Payment Financing
3,579 $ 5,369 $ 2,969 $ 2,400
2,226 $ 3,339 $ 2,739 $ 600
26,712 $ 40,068 $ 29,268 $ 10,800
13,229 $ 19,843 $ 12,043 $ 7,800
7,229 $ 10,843 $ 5,443 $ 5,400
2,120 $ 3,180 $ 2, 580 $ 600
8,586 $ 12,879 $ 7,479 $ 5,400
Net annual additional revenue $ 62,521 $ 33,000