ST. NINIAN’S CEMETERY

1 ST. ninian S CEMETERY SUSTAINABILITY ACTION PLAN JUNE 2017 Prepared by Sustainability Committee Members: Father Donald MacGillivray Donald MacDonald Doug MacDonald Doug MacLellan Celia Picard Trina MacDonald July 2017 St. ninian s CEMETERY Sustainability Action Plan 2 TABLE OF CONTENTS Executive CEMETERY Sustainability and perpetual Investment Pricing Structure / Plot Financial Structural Capital Awareness and Promotion of the APPENDIX A Interest Income Projections APPENDIX B Dividend Income Projections APPENDIX C Comparative Burial Cost Analysis APPENDIX D Recommended Plot Layout APPENDIX E - Projected perpetual Care Sales APPENDIX F 10 Year Comparative & 5 Year Projection APPENDIX G 5 Year Projection with Changes to By-Laws St.

2 ninian s CEMETERY Sustainability Action Plan 3 EXECUTIVE SUMMARY BACKGROUND The objects, aims and purposes of the St. ninian s CEMETERY Care Company, as per By-Law Article and as outlined in the 1957 incorporation documents, is to: (a) Manage, care for, protect, improve, ornament and conduct St. ninian s CEMETERY at Antigonish, Nova Scotia. (b) Promote the beautification, preservation, improvement and embellishment of St. ninian s CEMETERY REPORT OBJECTIVES The ad-hoc St. ninian s CEMETERY Sustainability Committee was established to review the April 2016 Xavier Consulting Sustainability report recommendations and develop an action to improve the ability of St. ninian s Care Company to meet the demands of parishioners for CEMETERY services on a sustainable, perpetual basis. This action plan will be reviewed and adopted, in whole or in part, by the St.

3 ninian s Care Company for implementation. The key elements, the first three of which were discussed in the Xavier Report, reviewed by this Sustainability Action plan are as follows; 1. Investment Strategy 2. Pricing & Plot Structure 3. Columbarium 4. Financial Analysis 5. Structural Issues 6. Capital Improvements 7. Awareness and Promotion of CEMETERY This sustainability action plan will address the key elements outlined above by taking into consideration and expanding upon the following rationale: 1. The most basic objective of the CEMETERY should be to meet parishioners demands for CEMETERY services. This would include, but not limited, to public consultation. These demands are changing rapidly and the CEMETERY Care Co. must develop a proactive approach to ensure its on-going relevance and financial sustainability. As such, a financial plan which ensures that the CEMETERY is managed on a financially sustainable basis is essential.

4 St. ninian s CEMETERY Sustainability Action Plan 4 2. There has been a major shift underway towards cremations and away from traditional burials, currently reaching near a 50/50 split in 2015. Developing varying services and applicable rates for individuals choosing to be cremated is essential for long term survival. St. ninian s is behind most other cemeteries in offering cremation internment services. 3. There is a need to invest in capital improvements and enhanced CEMETERY maintenance. Any future plans for the CEMETERY must be supported by a functional and attractive site. 4. The visibility and profile of the CEMETERY among parishioners and awareness of how it is operated / managed is very concerning and should be addressed. This is especially important to ensure that parishioners become aware of new services for individuals choosing cremation.

5 The historical and cultural significance of the CEMETERY should be promoted through a web site and other social media options. Such promotion would not only raise the profile of the CEMETERY but also could lead to an increase in donations and the use of services. 5. The pricing framework for CEMETERY perpetual care services by St. ninian s Care Company is much lower than the pricing structure of other cemeteries in Nova Scotia. More income can be generated for the CEMETERY Care Co. through new service offerings and increased prices. A new services schedule and pricing proposal will be developed by this committee that would secure the financial sustainability of the CEMETERY . 6. The delegation of authorities, roles and responsibilities, between the parish and CEMETERY Care Company are problematic and inhibit the efficient and effective provision of CEMETERY services.

6 It is the opinion of the Sustainability Committee that the company has not been operating in an overall deficit situation when considering the total revenue generation versus expenditures. However, strictly taking into consideration Article of the current by-laws which states The intent of these perpetual Care Trust Funds is to provide revenue in a sufficient annual amount to cover all normal operating expenses of the CEMETERY then the company has been operating in a deficit situation. This will be expanded upon later in this report. St. ninian s CEMETERY Sustainability Action Plan 5 CEMETERY SUSTAINABILITY It is necessary to define what constitutes CEMETERY sustainability and how it relates to the perpetual care definition and purpose of the CEMETERY Care Company so that the context of the report can be fully appreciated. SOCIAL, ECONOMIC & ENVIRONMENTAL SUSTAINABILITY Cemeteries are sustainable when they address three important and inter-connected pillars of sustainability: 1.

7 Social, 2. Economic, and 3. Environmental A CEMETERY is socially sustainable when: It becomes a community / parish amenity, a permanent repository of stories and culture contributing to a sense of place A sacred space is created and the spiritual needs of current and future generations are met, and The community / parish are convinced of the intrinsic value of the CEMETERY . A CEMETERY is economically sustainable when: Net revenues are positive or are moving towards cost recovery; perpetual care fund planning is in place and on target to meet future maintenance needs; A range of options and services are provided; New services and technologies are incorporated, and Expectations are met within budget without negatively affecting the environment. A CEMETERY is environmentally sustainable when; Wherever possible local products and materials are used and products are recycled; Negative effect on the environment is reduced or almost eliminated; The CEMETERY contributes positively to the surrounding environment; The CEMETERY helps to promote respect for the environment, and There is a plan for land use and re-use.

8 BARRIERS TO SUSTAINABILITY CEMETERY policies that lack creativity and flexibility mean that the CEMETERY may fail to meet the needs of the community / parish members. St. ninian s CEMETERY Sustainability Action Plan 6 ACTIONS TOWARDS SUSTAINABILITY General Develop more effective information materials on CEMETERY business and burial options. Distribute information to parishioners to educate them and create demand. Increase education and public awareness. Develop a better understanding, through consultation, of what parishioners desire, including what they wish to choose for burial options and CEMETERY services / improvements. Expand the range of services. Work with community groups / historical societies. Reclaim empty or un-occupied grave plots; Social Make CEMETERY a place for the living; Integrate CEMETERY into the community; Work with Heritage related groups - community history; Economic Ensure pricing of CEMETERY services is not prohibitive for most people; Allow more than one interment, either full body or cremated remains; Operate on a cost recovery basis, with provision for the future operation of the site.

9 Environmental Use local materials whenever possible; Operate in an environmentally sensitive manner and; Contribute positively to the environment by improving green spaces and perimeter areas. perpetual CARE The term " perpetual care" in cemeteries has come to mean the providing of funds, to be held in perpetual trust, the income of which is to be expended in keeping up forever the necessary care of the individual lots and graves, and the maintenance, repair and future renewal of the borders, roadways, buildings and other CEMETERY structures. St. ninian s CEMETERY Sustainability Action Plan 7 INVESTMENT STRATEGY REVIEW OF INVESTMENT ANALYSIS BY XAVIER CONSULTING The Xavier Sustainability report identified that, at that time, the investment strategy was not generating sufficient returns for the amount of funds that were being invested, which was causing the company to run an operational deficit.

10 It was recommended that a return rate of 5% be targeted. This was based on the fact that it would be a combination of the required return to cover costs while at the same time being fairly easy return with low risks. ACTION PLAN As a result of the Xavier report recommendations there were new amendments and additions to By-Law regulations for Section Investments, which were adopted effective December 16, 2015. An investment committee has been formed and as GIC s come due the funds are being used to purchase non-guaranteed investment such as common stocks, preferred stocks, REITs or corporation bonds. Currently the Investment Committee has purchased various investments with an average annual dividend yield rate of The overall focus has been on selecting a diverse portfolio that focuses not only on investments which will yield high dividend returns but also investments which are expected to have high future gains.