Hastings
District Council: HB Crematorium Committee Meeting
Te Rārangi Take
Report to HB Crematorium Committee
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Nā:
From:
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Sonia Sussmilch,
Assistant Manager - Crematorium
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Te Take:
Subject:
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Report to HB Crematorium
Committee
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1.0 Executive Summary
– Te Kaupapa Me Te
Whakarāpopototanga
//hdcfp1/data/Infocouncil/Templates/report_guidance.pdfThe
purpose of this report is to update the HB Crematorium Committee regarding
operations at the HB Crematorium and Chapel for the previous financial year
from 1st July 2022 to 31st June 2023, as well as the last
six months of the new financial year from 1st July 2023 to 31st
December 2023.
1.1 The 2022 – 2023
year in summary:
· Crematorium
and Chapel usage is steadily increasing year on year due to the following
factors:
An aging and growing population in
Hawke’s Bay, as well as people choosing cremation over burial due to the
cost of burials.
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2.0 Recommendations -
Ngā Tūtohunga
That the HB
Crematorium Committee receive the report titled Report to HB Crematorium
Committee dated 5 March 2024.
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3.0 Background – Te Horopaki
3.1 The table below shows
the number of cremations and a breakdown of service types for the 2022 –
2023 financial year and the past six months of the current financial year.
3.2 These numbers show an
increase as mentioned in the Executive Summary and if numbers for the rest of
the year reflects the numbers for the last six months, cremations will end up
around the 950 mark. The current consent only allows for 1000 cremations
per year.
3.3 Cremator Maintenance:
· The
Cremator floor (Hearth) was replaced by Pyrotek during the first week of May
2023 at a cost of $54,000 NZD.
· The
Preventative Maintenance Inspection of the Cremator was done by Neil Lunniss,
contracted by Matthews International on the 1st of November 2023.
This is done as one of the consent conditions.
· The
roof of the Cremator is deteriorating fast and will need replacing this year.
Pyrotek undertook an inspection on the 19th of February 2024 and are
confident that it can continue to be used until July this year. Pyrotek
will inspect it again around May this year and a date for the replacement of
the roof will then be arranged.
3.4 Cremator Consent
– AUTH – 121897-01: Air Discharge Permit
· Air
Discharge Testing done during March 2023, was submitted to the Hawke’s
Bay Regional Council (“HBRC”) in April 2023. Testing again showed
that certain levels are very close to the compliance limits.
· Cremation
data for the financial year 2022 – 2023, was submitted to the HBRC in
July 2023 as per consent conditions. Prior to that, the yearly visit from the
HBRC took place to go through procedures.
· The
PMI results were submitted to the HBRC in December 2023, once it was received
from Neil Lunniss.
· Currently
the Council is awaiting the HBRC’s approval for the 2022 – 2023
year.
· Air
Discharge Testing completed by Matthew Newby from Source Testing New Zealand on
30th and 31st January 2024, results will be available soon
for submission to the HBRC.
3.5 Occupational Health
Monitoring and Risks
· All
staff are evaluated yearly by Hastings District Council’s contracted
Occupational Health Nurse, no concerns were raised in regard to the last round
of testing.
· A
contractor was engaged to look at upgrading the extractor fan in the Cremulator
room, which will do away with the wearing of facemasks by staff dealing with
the preparation of ashes. An inspection was undertaken and feedback is due to
come from the contractor.
3.6 Financials: Summary
for 2022/23 Financial Year
· Last year’s
revenue was close to budget whereas this year’s revenue is $45,619 ahead
of budget ($393,123 v $347,504), with fees and charges for use of the
crematorium being the driver. This is due to a spike in cremation numbers
during the last 3 months of 2023.
· Last year’s
expenditure was close to budget and this year’s expenditure is slightly
favourable ($231,234 spend vs $247,257 budget), with low use of
contracted services being the main driver. Gas spend has significantly
overspent budget due to gas price.
· A scissor lift
purchased this year has incurred an unbudgeted rate funded spend, but this
reflects a difference in the timing of replacements than the budget had
planned.
· Crematorium ran an
Operating surplus of $82,704 for the 2022-23 year, close to the $85,261
operating surplus budgeted.
· For the current
year, 2024-25, the crematorium has run an Operating surplus of $108,339 being
favourable against the $42,631 Operating surplus budgeted.
· The Crematorium
Reserve balance as at 31 December 2023 is $84,450.
· The table attached
shows the Revenue Expenditure Report, the amounts in bold above are represented
in the table.
4.0 Discussion – Te Matapakitanga
4.1 Fees and Charges
– Crematorium & Chapel
· Fees and Charges
– 2024 -2025 Financial Year:
The proposed fees
and charges increase of 5%, as suggested by the finance team, keeps the
crematorium revenue in line with expenditure for the next financial year.
4.2 Operating Hours -
Crematorium and Chapel
· Most neighbouring
local authorities do not deliver services on Sundays and Public Holidays, and
if they do the fees reflect it. Any booking is also dependent on the
availability of staff.
Hawke’s Bay
Crematorium allows bookings on any day except for Christmas Day and New
Year’s Day. Officers therefore request the input and guidance of
the HB Crematorium Committee regarding current operating hours and an alignment
with other Council’s in this regard.
4.3 Chapel used for a
service only
· Booking chapel
without a burial or a cremation following the service, should there be a
different charge?
4.4 Procedures regarding
Cremation Delivery bookings
· More funeral
directors/families are not following procedures during deliveries and recently
a complaint was received. The crematorium wants to prevent this happening
in future and hence need to discuss the procedure and any changes to be
implemented.
4.5 Chapel services
running over the booking slot
· More services are
running over the allotted booking time and this is unfair to other users.
Can consideration be given to implementing a penalty fee in this regard?
5.0 General Knowledge
· Terry
Longley & Son, Tong & Peryer and Howard and Gannon Funeral Services
have sold to Propel which is an Australasian owned company.
· Propel
have a history of accruing their own cremator.
· If
Propel have their own cremator, council expects a decrease in cremations of
around 410 per year, based on the last two financial years.
· It
is anticipated that this situation would take a few years to become
operational.
Attachments:
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1⇩
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Crematorium Financial Report - December 2023
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CG-17-19-00001
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