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Home My WebLink AboutFND-013-13 Cladiwn REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: September 9, 2013 Resolution#: m By-law#: Report#: FND-013-13 File#: Subject: ACCEPTING CREDIT CARD PAYMENTS FOR CEMETERY RELATED FEES RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-013-13 be received; and 2. THAT Council authorizes an exception to the restricted use of credit cards as a payment method to allow the Municipal Clerk's Department to accept credit card payments to a maximum of $5,000 for cemetery fees to accommodate for legislative changes. Submitted by: Reviewed by' Nancy aylor VBA,CPA,CA, Franklin Wu, Director of Finance/Treasurer Chief Administrative Officer NT/hjl CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379 REPORT NO.: FND-013-13 PAGE 2 1.0 BACKGROUND 11 In August 2009, Council eliminated the option of credit card payments for all non- property tax municipal fees with the exception of Community Services Department for the online payment for recreation program registration In 2009, the estimated savings was $5,000 for the remainder of 2009, which would equate to $15,000 for the whole year Parking tickets are also permitted but only if paid through an online provider that charges an independent administration fee 1 2 In February 2010, credit card payments were extended by Council to advertising and sponsorship fees in order to allow for payment upfront and alleviate collection difficulties Property tax payments have not been permitted by credit card for a number of years due to the excessive cost involved 2.0 COMMENTS 21 Previously, the local funeral homes were able to sell cemetery plots and burial services on behalf of the Municipality, and then remit the funds to the Municipality Pursuant to the Funeral, Bunal and Cemetery Services Act, this practice is no longer available The costs can amount to significant dollars for residents, often times when they are emotionally distraught There are currently four active cemeteries, Bowmanville, Bondhead, St George and Hampton Cemeteries 22 In most circumstances, the customer does not have adequate funds available as the estates involved have not yet been resolved and CPP funds have not yet been received In order to assist our customers in these very emotional times, it would be very beneficial for all parties if Council would lift the restriction and accept credit card payments for cemetery related costs to a maximum of$5,000 The $5,000 threshold is necessary in order to accommodate the fact that many purchase two plots, side by side 3.0 COST IMPLICATIONS 3 1 The Municipality of Clarington is currently in the process of a Banking RFP (request for proposal) and therefore cannot divulge current rates for accepting credit cards payments General examples however can be provided 32 In 2012 there were 71 cremation interments and 76 non-cremation interments with revenues being approximately $176,000 If 50% were purchased with credit REPORT NO.: FND-013-13 PAGE 3 cards it would result in a service charge of approximately $2,300 per year Please see Appendix A for an excerpt from By-Law 2013-006, Cemetery Rates 4.0 CONCURRENCE - Patti Barrie, Municipal Clerk 5.0 CONCLUSION 51 Due to the circumstances involved and the sensitive nature of the issue, it is recommended that credit card payments be accepted by the Municipal Clerk's Department for cemetery services only, to a maximum of$5,000 This number will be indexed over time to match any percentage increases in the cemetery fee schedule as approved by Council from time to time 52 There are some recent opportunities in the retail credit card market that will be explored with the potential for expanded credit card acceptance A further report will be forthcoming to address these options However, it was deemed necessary to address the cemetery issue in a more immediate time frame CONFORMITY WITH STRATEGIC PLAN — Not Applicable The recommendations contained in this report conform to the general intent of the following priorities of the Strategic Plan (Place an "X" in the box for all that apply) Promoting economic development Maintaining financial stability Connecting Clarington Promoting green initiatives Investing in infrastructure Showcasing our community Not in conformity with Strategic Plan Staff Contact Nancy Taylor, BBA, CPA, CA, Director of Finance/Treasurer Attachments Attachment A - Cemetery Fees List of interested parties to be advised of Council's decision None Attachment"A"to FND-013-13 Attachment No 2 to REPORT OPD-001-13 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON SCHEDULE"A"TO BY-LAW 2013-006 CEMETERIES-PROPOSED TARIFF OF RATES FOR 2013 1 SALE OF PLOTS Type of Lot Dimension Dimension 40% Rate(does not include Bowmanville Bondhead Perpetual applicable taxes) Care Rate Single 3'X 9' TX 9' $53680 $1,34201 Bab land 1 5'X 3' 1 6'X 3' $18788 $46971 Cremation 2'X 2' 2'X 2' $18788 $46971 2 SALE OF CREMATION NICHES Columbanum Niche Size 15%Perpetual Rate(does not include Care Rate applicable taxes) Single (including 12"X 12"X 12" $16104 $1,07360 Plaque) Double (including 12"X 12"X 12" $24164 $1,61041 Plaque) 3 INTERMENT Rate(does not include applicable taxes) Adult—Sin le Depth. $73811 Adult—Double Depth $92598 Infant/Child $26841 Cremation $26841 Niche Wall $13420 4 DISINTERMENT CHARGES Rate(does not include applicable taxes Disinterment(adult)including burial at another $1,22286 location in the same cemetery Disinterment(adult)for burial at same location or $1,034 72 at different cemete Disinterment(child)including burial at another $768 83 location in the same.cemetery Disinterment(child)including burial at same $68982 location or different cemetery Disinterment(Infant/cremation)including burial $332 35 at another location In the same cemetery Disinterment(infant/cremation)including burial $22701 at same location or different cemetery 5 HOLIDAY AND OTHER SURCHARGES Rate(does not include applicable taxes) Interment on Saturday,Sunday and Statutory $37751 Holidays fee is additional Disinterment for double depth burial(fee is $2433-1 additional Rental for lowering Device,set up and dressing $91 56 Provincial License Fee(except for cremation $11 00 Cremation Interment on Saturday,Sunday and $13420 Statutory Holidays fee is additional 6 MONUMENT FOUNDATIONS AND SETTING MARKERS Rate(does not include applicable taxes Monument foundation flat fee $31482 Flat Marker Foundations flat fee $19066 Cremation I Baby Markers flat fee $8026 Removal of Monuments $6022 7 ADMINISTRATIVE Transfer Fee_ $2134 Duplicate or Re p lacement Certificate $21 34 Third Paq Sale Transfer $2134] Transfer Back to Municipality $2134 8 PERPETUAL CARE Rate(does not include applicable taxes) Headstone Maintenance $10060 Footstone Maintenance $50 00