ST. NINIAN S CEMETERY SUSTAINABILITY ACTION PLAN JUNE 2017

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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

2 TABLE OF CONTENTS Executive Summary...3 Cemetery Sustainability and Perpetual Care...5 Investment Strategy.. 7 Pricing Structure / Plot Options Financial Analysis...15 Columbarium..17 Structural Issues...20 Capital Improvements...21 Awareness and Promotion of the Cemetery...23 Recommendations.. 24 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. Ninian s Cemetery Sustainability Action Plan 2

3 EXECUTIVE SUMMARY BACKGROUND The objects, aims and purposes of the St. Ninian s Cemetery Care Company, as per By-Law Article 3.1 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. 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. St. Ninian s Cemetery Sustainability Action Plan 3

4 2. There has been a major shift underway towards cremations and away from traditional burials, currently reaching near a 50/50 split in 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. 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. 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 12.2 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 4

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. 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. 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 5

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. 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 6

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. 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 11.4 Investments, which were adopted effective December 16, 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 3.08%. 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. PROJECTED INVESTMENT INCOME For the purposes of this report a projection of interest and dividend income was prepared to work into a five year plan. APPENDIX A Projected Interest Income shows expected interest income over the next five years based on the assumption that GIC s will be converted to non-guaranteed investments as they come due. Interest was calculated based on the interest rate of the GIC and prorated in the final year to the date of maturity. The Investment Policy of St. Ninian s Cemetery Care Company states that at least 20% of the Corporations cash and trust funds must be in instruments of the type that are guaranteed by the Government of Canada, the Canada Deposit Insurance Corporation, a Province of Canada or one of the five largest Canadian chartered banks. For this reason the last three GICs to mature which have a principal amount of $168,000 will remain in GIC s. (At this time the cost of Investment and GIC s combined is approximately $837,000 of which 20% is $167,400.) APPENDIX B Projected Dividend Income shows projected dividend income over the next five years based on the same assumption as above, that as GIC s come due they will be used to purchase nonguaranteed investments (with the exception of the last three GIC s to mature.) Dividend income of our St. Ninian s Cemetery Sustainability Action Plan 7

8 current fourteen investment holdings were calculated based on a Projected Income document from Scotiabank, which included the cost and expected annual dividend yield. To calculate the projected income of the money to be invested from the GIC s a projected average annual yield of 3% was used (the average of the 14 investments we currently hold is 3.08%) and was prorated based on the maturity date of the GIC in the first year. Investments are estimated to grow at a rate of 5% annually which includes interest and dividend income and unrealized gains. Any unrealized gains will not be reflected in the Cemetery financial statements as far as providing any income/cash unless stocks are sold throughout the year in which case a gain on investment will be recorded as revenue. The overall investment strategy although very beneficial for the long term, will not provide the income needed to get the Cemetery Care Company into a surplus situation unless stocks are sold for a capital gain. For that reason it is recommended by the Sustainability Committee that in addition to this change in Investment Strategy, other methods of increasing revenue will need to be pursued. St. Ninian s Cemetery Sustainability Action Plan 8

9 PRICING STRUCTURE & PLOT OPTIONS REVIEW OF PRICING ANALYSIS BY XAVIER CONSULTING In April, 2016 Xavier Consulting completed a report entitled St. Ninian s Cemetery Care Sustainability Report. Research completed for the report included a review of prices for Cemetery Lots in Nova Scotia. Due to the fact that finding smaller cemeteries in small towns like Antigonish that provided perpetual care was difficult, their selection for comparative purposes included cemeteries from larger towns like Bedford, Sydney, Sackville and Halifax. Prices for both Single Burial Lots and Cremation Lots were reviewed in the Xavier Consulting Report. These prices are depicted in Figure 1. Figure 1 Prices for Traditional Burial and Cremation Lots across Nova Scotia, Xavier Consulting, April, 2016 $2, $1, $1, $1, $1, $1, $ $ $ $ $- St. Ninian's $ $1, $ $ $1, $ $1, $1, Brookside Bedford Halifax Regional Municipality Pleasant Hill (Lower Sackville) Catholic Cemetery of Single Lot Traditional Burial Cremation LotsHalifax $1, $1, $ Resurrection Cemetery (Sydney Forks) Source: Xavier Consulting, April, 2016, Table 1, p. 12 Upon further review of the pricing analysis by Xavier Consulting by the Sustainability Committee it was discovered that there were a couple of issues with the cemeteries and figures used for comparison purposes by Xavier Consulting. First it was noted that several of the cemeteries used for comparison are in the city of Halifax and given the difference is population and the fact they are run by larger for-profit companies and do not have any real attachments to a specific community or parish it is not advantageous to compare their prices to St. Ninian s Cemetery. In addition to this some of the prices in the Figure 1 included Opening & Closing costs or HST where as other prices did not. This made the prices of some cemeteries seem more inflated than they are in reality and therefor are not comparable. St. Ninian s Cemetery Sustainability Action Plan 9

10 For these reasons the pricing analysis by Xavier Consulting was not considered to be a true reflection of the local industry average and a new Comparative Pricing Analysis was performed that omitted the larger for profit cemeteries in Halifax. COMPARATIVE PRICES The Sustainability Committee reviewed and compared prices across Nova Scotia and although it is not always possible to obtain direct comparisons, due to variations in sizes of plots, number of interments per plot, openings and closings, HST, etc. Prices were broken down to include opening/closing costs and HST (when applicable) for a more accurate comparison of the total cost to the consumer of a burial rather than the revenue generated. There were three specific cemeteries in Nova Scotia, all of which provide perpetual care that were analyzed and compared to the current pricing structure of St. Ninian s Cemetery. Details of burial options offered at each cemetery, the cost of a grave lot and opening/closing costs of the three cemeteries in addition to St. Ninian s Cemetery can be found in Appendix C. The average cost for the various burial options (including opening/closing costs and HST if applicable) of the three cemeteries analyzed are broken out in the tables in Appendix C and are compared to St. Ninian s Cemetery s current prices in Figure 2 below. For the purposes of comparing burial costs with the average of the three cemeteries we considered only one burial in the lot just to give us an idea of where we fell in relation to the other cemeteries. Figure 2 Average Cost of a Burial Compared with St. Ninian s Cemetery $2,500 $2,277 $2,000 $1,979 $1,963 $1,500 $1,000 $1,200 $950 $1,189 $1,482 Average St. Ninian's $500 $0 Full Traditional Burial Lot Full Size Cremation Lot Smaller Cremation Lot (1 urn) $- $- $- Smaller Cremation Lot (2 urns) Columbarium Niche (2 urns) St. Ninian s Cemetery Sustainability Action Plan 10

11 The new comparative pricing analysis still identifies the issue that the cemetery plots at St. Ninian s Cemetery are underpriced based on the current pricing structure in relation to other cemeteries throughout Nova Scotia. Furthermore the analysis highlights that St. Ninian s Cemetery offers far less burial options to parishioners than other cemeteries. Overall conclusion from the above analysis is that prices of St. Ninian s grave lots should be increased and more burial options should be offered. ACTION PLAN RECOMMENDED PRICING & PLOT OPTIONS With an increase in plot prices it was recommended by Xavier Consulting that there would be a decrease in operating deficits of the company by increasing the amount in the trust fund. The recommendation was that the company increase prices by a minimum of $250, however, it was also stated that a $400-$500 (66.6% to 83.3%) increase would be more optimal. An increase of $400 over the current price of $600 would provide for a 66.6% price increase for a full 5 X 10 plot with one traditional burial and one cremation. With respect to cremation plots, which are also 5 X 10 for two cremations the current price is $600 as well and the report recommended a price increase of $150 to $200 or approximately 33%. The Xavier report indicated that increase in prices would loosen constraints that the cemetery is in and be the best case scenario for the company to improve financial results. Again, they indicated that this increase in revenue stream would provide extra funds for operating expenses as well as an increased pool of cash, which could be utilized for general appearance improvements of the cemetery. Taking all of the above into consideration the Sustainability Committee has come up with a recommended pricing and plot structure that will help increase cash flow. Considering that cremations are increasing, and the fact that at some point the St. Ninian s Cemetery Care Co. is going to run out of space, the Action Plan presented in this document recommends not only changes to prices, but also changes to Lot sizes for cremations and the number of ashes allowed to be buried in a Grave. The committee proceeded to develop an overall pricing strategy specifically for traditional and cremation plots while maximizing the utilization of the cemetery property and still providing choices for parishioners. Figure 3 below and the referenced appendices outline this proposed pricing strategy: St. Ninian s Cemetery Sustainability Action Plan 11

12 Figure 3 New Pricing and Plot Size Recommendations Full Size 5 X 10 Plots (See Appendix D ) New Plots Base Additional Maximum Foundation Price Urns Potential Comments on Base Price Casket + 1 urn $1,000 $100 Up to $400 $2, % increase for base price compared to existing $600 No casket-2 urns $1,000 $100 Up to $400 $1, % increase for base price compared to existing $600 Previously Purchased or Unoccupied Plots Casket & 1 urn Free $100 or N/A Up to $400 $1,300 Maximum assumes foundation required Single Plot (2.5 X 6 ) 24 Marker Only Double Plot (5 X 6 ) 40 Monument Smaller Cremation Plots (See Appendix D ) Base Additional Maximum Foundation Price Urns Potential Comments on Base Price $500 $100 None $600 Correlates to 66% increase over ½ of 5 X 10 existing lot of $300 $800 $100 None $900 33% increase over 5 X 10 lot that was $600 It must be noted that the smaller Cremations Lots in Figure 3 would be in a separate part of the cemetery and would require either grave markers or a smaller grave monument, due to space limitations. For more detail on lot layout please refer to Appendix D. Again, as noted above for the purposes of comparing new recommended burial costs with the average of the three cemeteries originally looked at, we considered only one burial in the lot just to give us an idea of where we fell in relation to the other cemeteries. St. Ninian s Cemetery Sustainability Action Plan 12

13 Figure 4 Suggested prices vs Average $2,500 $2,277 $2,000 $1,979 $1,963 $1,800 $1,500 $1,000 $1,600 $1,350 $1,189 $850 $1,482 $1,150 Average St. Ninian's $500 $0 Full Traditional Lot Full Size Cremation Lot Smaller Cremation Lot (1 urn) Smaller Cremation Lot (2 urns) Columbarium Niche (2 urns) The graph above indicates that even with relatively significant increases in our lot pricing St. Ninian s Cemetery would still be cheaper than the other cemeteries in our area that offer perpetual care. REVENUE PROJECTIONS Based on the recommended prices above a Projection of Trust Sales was prepared in order to see how much extra revenue would be generated as a result of the price increases. In Figure 5 below lot sales from the last five years were analyzed to get an idea of the average number of individual lots purchased each year. Figure 5: Average Lots sold Individual Lot Sold as: Average Average (5 Years) (4 Years) Single Lots Double Lots Triple Lots Quadruple Lots Quintuple Lots Total Individual Lots Sold 85* St. Ninian s Cemetery Sustainability Action Plan 13

14 After analyzing the data above it is important to note that 2013 was a very high year for lot sales due to a notice in the bulletin that lot prices would be increasing. Including 2013 sales gives us an inflated number that is not accurate, so therefore the average used for pricing projection purchases was an average of the last four years rather than five. On average there are approximately 37 individual grave lots purchased each year. This number was used to project prices with the new pricing structure. We also had to consider which portion of lots purchased was being purchased for cremations vs casket burials. This is difficult to know for sure as the intent when parishioners purchase pre-arranged grave lots is not always known, so Burial Statistics from the last five years were used to project future sales patterns. Figure 6 Burial Statistics Category Total Caskets Cremations Total Burials Cremations - % 24% 27% 32% 32% 50% *49% 35% *2016 is only up to Aug/16. Financial forecasts provided are estimates based on a set of assumptions. The following assumptions were made in the Projecting Perpetual Care Revenue: Assumed that with increased prices, an increase in cremations and the changes to the Plot Options that we would not likely sell many lots in bundles of 4 or 5 and that even triple lot sales would decrease. Assumed that cremations were to be approximately 50% in the upcoming year and continue to increase each year thereafter. No way to really predict the exact increments in increase discussion was had and 13% increase over the next five years was deemed reasonable given past increases. Assumed approximately 40% of cremations would want to be in the cremation section with the smaller lots and the remaining 60% would prefer to be in the general section with family or because they wanted to have larger headstone. Appendix E depicts the projected Perpetual Care Revenue for the next five years. As indicated in the table in Appendix E, even with an increase in the price of lots, due to projected increase in cremations it will lead to a decrease in sales over time. Based on this it is recommended that other options, such as a Columbarium, which cater more towards cremations, are investigated and possibly pursued. St. Ninian s Cemetery Sustainability Action Plan 14

15 FINANCIAL ANALYSIS REVIEW A 10 Year Comparative Financial Analysis was compiled which revealed that the Cemetery Care Company has not had an operating surplus on the books since the year Average revenue and expenses from the last five years were calculated. This information was combined with the projections prepared throughout this report to prepare a Five Year Projection to give an estimate of where the company is expected to be heading over the next five years. Appendix F 10 Year Comparative and 5 Year Projection is based on the same accounting model as it stands today, with the exception of the increase in price of lots, in order to show us where the company would be in five years if no changes are made to our financial structure. This analysis provides the following insight: Even with the new Investment Strategy, and if the company adopts the perpetual care pricing increases recommended in this report but still continues to treat 100% of perpetual care sales as trust funds, the deficit will very slowly start to decrease. (Assuming no stocks are sold for gains throughout the year as this is too hard to predict) However by 2022 there will still be a relatively significant annual deficit. This projection will leave absolutely no additional money for capital projects over the next five years. Even with an increase in prices due to the fact that cremations expect to be on the rise, perpetual care sales are expected to decrease over the next five year period. If we consider the addition of a columbarium in which we will receive a much larger % of the total cost of a burial, our perpetual care sales would actually be expected to increase over the next five years. The overall recommendation of the Sustainability Committee based on these Projections is that changes need to be made in order for the Cemetery Care Company to remain sustainable in the future. St. Ninian s Cemetery Sustainability Action Plan 15

16 APPENDIX G Recommended 5 Year Projection provides a 5 Year Projections taking into consideration the following recommended changes, which would require a change to the current By-Laws of the Company: Rather than investing 100% of perpetual care sales into the trust fund it is recommended that only 25% of perpetual care sales gets treated as trust funds where it is expected to grow at a rate of 5% annually. The remaining 75% of perpetual care sales gets taken into Operating Revenue to help cover operating expenses of the cemetery. This change would allow the company to have a healthy surplus at the end of each fiscal year and it is recommended that the remaining surplus be set aside into a savings account for current or future capital projects (depending on priority.) It is recommended that the Cemetery take on certain expenses relating to the Vault, such as snow plowing expenses. No matter what it is going to be difficult to accumulate savings without an increase in donations and bequest, which is something that the Sustainability Committee feels need to be better promoted. St. Ninian s Cemetery Sustainability Action Plan 16

17 COLUMBARIUM REVIEW The benefits of acquiring a Columbarium to hold cremation urns include: A Columbarium would provide parishioners who choose to be cremated with an additional interment option. Provision of interment options for cremated remains is increasingly important given the fact that more and more parishioners are choosing to be cremated. A Columbarium would be an efficient use of space. As available real estate in the Cemetery diminishes it is important to consider other options in order to maximize the utilization of the space available. In the long run, it is cheaper to invest in a Columbarium than to procure additional land or develop property across the highway in order to acquire more space for traditional and / or cremation burial plots. The cost of cremation and a niche in the Columbarium for two urns is less expensive for the parishioners than the cost of a grave plot, opening and closing of grave and a headstone. Revenue generation would stay with the Cemetery Company versus going to the monument company and / or the grave digger. A Columbarium also would be far less expensive to maintain than traditional grave plots thus minimizing maintenance costs and increasing revenues. The Xavier report looked at the possibility of acquiring a Columbarium due to the fact that cremations have been trending upwards and it would be another optional service for the parishioners. However, their conclusion was that it was not feasible due to the current business structure with respect to the trust fund. Their recommendation with the current business structure and point in time was to hold off on purchasing a columbarium and to put that money into investments in order to increase the percentage return from the trust. The Sustainability Committee has done some research and had discussions with other locations which have Columbariums. Resurrection Cemetery installed their first columbarium with 72 niches in 2006 at a cost of $26,000 plus $5,000 in site preparation. It was 90% full within eight years and in 2014 they purchased another 72 niche columbarium for $30,000 plus $4,500 in site work costs. They currently charge $1,737 per niche. Halifax Cemetery purchased a 72 niche columbarium in 2013 for a cost of around $48,000 and have only sold 20 niches as of spring 2017, however, the reasoning that they explained was that the in ground cremation internment was cheaper ($2,000 for four cremations in a 3 X 3 lot) or they allow one full casket and three cremations in a 40 X 10 lot for $2,990 and charge $500 to open and close a cremation site. They charge $2,500 plus a maintenance fee for a niche. St. Ninian s Cemetery Sustainability Action Plan 17

18 As the Halifax Cemetery is not a good comparison for a location like Antigonish, the Moser River Cemetery on the Eastern Shore was also contacted as they had installed a 32 niche columbarium in 2017 at an estimated cost of $17,000 (unsure if HST was included). This cost was covered through a donation by a parishioner. The cost of a niche in this columbarium is $1,200. Brookside Cemetery in Bedford charges $2,000 per niche. ACTION PLAN It is the recommendation of the Sustainability Committee that additional discussion / education occur within the parish community to determine the level of interest and feasibility that may be there for this interment option. This can be accomplished through parish public meetings / presentations, surveys and particularly through social media / web site development which will be discussed later in this report. However, it is not a matter of if a columbarium should be procured but more a matter of when one should be acquired. It is the recommendation of the committee that a price of $1,700 per niche be charged once a columbarium is in place. As mentioned in the Xavier report, due to the current business structure / by-laws with respect to the trust fund it is difficult to fund such an acquisition. It is the recommendation of this report that the current business structure / by-laws be reviewed and updated to provide more flexibility in the management of the cemetery. As well, it may be necessary to look at other means of planning and financing a columbarium. Some options are as follows: Niche Allocation: Assuming that once constructed the columbarium will most likely be the only one in the surrounding area of Antigonish, consideration should be afforded by the parish / Cemetery Board to accepting cremations from outside St. Ninian s Parish as many people may prefer interment in a columbarium. This would increase the demand for niches in the columbarium and subsequently greatly increase revenues. Pre-sales: Many organizations pre-sell niches to start the project off. Selling niches may also encourage subsequent sales: 1) Sales provide a form of social proof to prospects. 2) There is now less availability within the columbarium. Parishioners will not know that niches are selling unless they are told: through a newsletter, etc.. When they see blank face plates, they may assume that the niches haven t sold. Fundraisers: A fundraiser is a great one-time event that provides entertainment and benefits a good cause at the same time. Events can include dinners, fairs, lectures, etc. If the fundraiser appeals to a larger audience and just benefits the columbarium project, funds from outside of the initial base will be garnered and expose more people to the project, possibly even people outside the parish. Capital Campaign: A capital campaign is a long-term campaign to raise funds for large physical assets. In the case of a columbarium, it would include the structure(s) and site development. Capital campaigns have the ability to attract larger donations. St. Ninian s Cemetery Sustainability Action Plan 18

19 Sponsorships: Often people are willing to sponsor a specific item or area in return for a naming opportunity. This could involve pavers, benches or even the entire garden. On-going Donations: Sometimes it is more practical for people to donate funds to the project over time. It is helpful to set up a giving program with an official title, specific cause, periodic dollar amount and payment schedule. In fact, it s common to have multiple giving programs at various dollar amounts allowing many people to become part of the organization. Benefactors: A columbarium project is often anchored by a single large donor who may be an individual or a family. Money is common in this situation. Estate Donations: Some people in the parish may consider donating some portion of their estate to the company through estate planning for a specific purpose such as a columbarium. These are funds that will arrive in the future and contribute to the maintenance and/or expansion of the project. Donations In-kind: While some parishioners may not have spare funds, they may be able to donate time and materials towards the project. Business owners, especially, often donate (and deduct) services, materials or used equipment. This is often used for landscaping, campaign materials and other pieces of the project that would normally have to be purchased. Outside Funding: Loans haven't been mentioned until now. Since loans cost money, they should be the last recourse. Leveraging one of our strongest assets, volunteers in our parish, to help fundraise should provide a good chance of raising ample funds without a loan. Regardless of which mix of fundraising tools utilized, it is important to have: an overall goal, donation levels, and a plan to thank donors. The more communication, planning and participation involved in the objective, the more successful and rewarding it will be for the company and the parish at large. St. Ninian s Cemetery Sustainability Action Plan 19

20 STRUCTURAL ISSUES REVIEW As it stands today, the cemetery property is owned by the parish and the Cemetery Care Company is only responsible for the operation and maintenance of the Cemetery. However, there exists no documentation (M.O.U. or Lease) which formally outlines what responsibilities belong with the parish versus the Care Company. For example, maintenance of the vault and snow plowing is covered by the parish and until several years ago so was road maintenance. Currently, the Care Company has taken on responsibility for the road maintenance, primarily consisting of gravelling and drainage. Capital improvements to the cemetery have been virtually non-existent in recent years due to a lack of dedicated funds ear-marked for this purpose. The parish owns the assets of the cemetery and is therefore responsible for these assets. However, the parish has many deferred maintenance priorities for its limited funds and spending for cemetery improvement is not among the top priorities. The Cemetery Care Company has not invested in capital improvements because it does not own the cemetery assets and because revenues generated by selling Lots at the cemetery are allocated to a Trust Fund and are therefore not available for either significant maintenance and / or capital improvements of the cemetery. The position of some board members of the Cemetery Care Company is that the parish should be funding any and all capital improvements due to the fact that the parish owns the assets of the Cemetery. However, the parish is not prepared to implement capital improvements at the cemetery as its priority is funding maintenance and improvements for the Cathedral. In addition, the parish feels the Cemetery Care Company has sufficient funds, or can develop sufficient funds, to do capital improvements. The result of this impasse is that capital improvements have not been undertaken at the Cemetery due to a lack of funds and this sheds a negative view of the cemetery care by the parishioners. ACTION PLAN The impasse between the parish and the Cemetery Care Company with respect to allocating funds for essential capital improvements must be resolved. The Board of the Cemetery Care Company and the parish must negotiate a resolution to this impasse so as to allocate a percentage of funds necessary for capital improvements. This agreement should be formally documented for current and future generations. The recommendation of this report is that as any funds for either the cathedral property or the cemetery all come from the parishioners, then the Cemetery Care Company should take a pro-active role in assuming all expenditures associated with the cemetery. St. Ninian s Cemetery Sustainability Action Plan 20

21 CAPITAL IMPROVEMENTS REVIEW The breakdown of authorities and responsibilities between the parish and the Cemetery Care Company has caused a funding vacuum for maintenance and improvement of the cemetery. As a result the cemetery and its roads and grounds have deteriorated over the years. It must be noted that this is in direct contravention of Article 3.1 (b) of the by-laws Promote the beautification, preservation, improvement and embellishment of St. Ninian s Cemetery. The parish has not contributed to any significant capital improvements of the cemetery for years now and based on their current and future maintenance requirements of the cathedral the parish will not be in a position to contribute into the future. ACTION PLAN There are approximately 1,998 linear metres (2 Km) of roadway in the cemetery with 196 metres (9%) being asphalt that is in poor condition. Priority one should be to at least repave the first 67 metres from the old TCH to the first intersection of the east/west road. The cemetery lands and road committee should develop a plan to carry out these improvements, obtain cost estimates and bring back to board for implementation approval. Second long term priority should be to pave the remaining (200 metres) of the primary centre road to the very back (south end) of the cemetery. Again the lands and road committee will need to develop a long term plan and associated cost estimate. Many monuments in the Cemetery are falling over. Either the families of relatives or, if none found, the Cemetery Company should make an effort to re-establish fallen monuments. Failure to do so will be in contravention of Article 3 of the by-laws. It is interesting to note that some cemeteries include a monument fee in their perpetual care fee to maintain monuments level and plumb. The company should take action to study this issue and propose options to rectify the problem over the long term. At some point, a legal property survey should be completed to establish property boundaries and a Master Plan developed for the cemetery to establish various areas for different burial types and location for future columbarium construction. This could also include establishment of guiding principles and key objectives. Depending on age of current lawn tractor and other equipment it will most likely be necessary to replace some of this equipment over the next five years. The costs associated with these purchases are currently identified in by-laws as being procured from the Trust Fund but, in reality, funds should be coming out of a capital fund. In addition, at some point in time the current backhoe will not be available. St. Ninian s Cemetery Sustainability Action Plan 21

22 The amount of remaining unutilized property for burials is finite and, at some point in the future, additional land will have to be purchased and/or current wooded land on both sides of the new highway prepared for future utilization. The small parcel of land to the right as you enter the cemetery (directly across from vault) would be the ideal location for cremation burials, a Columbarium and other more user friendly/park like development. The university appears to own this land and would be beneficial for the Cemetery to try to obtain it. Enhanced signage, perhaps an historical plaque, and posting of the cemetery plot plan is something for consideration. Additional flower beds and small shrubberies to enhance the attractiveness and appeal of the Cemetery grounds should be considered as well. St. Ninian s Cemetery Sustainability Action Plan 22

23 AWARENESS & PROMOTION REVIEW The level of visibility, knowledge, and profile of the cemetery and, in particular, the St. Ninian s Cemetery Care Company, among parishioners is very low. As an example, many parishioners know that the company has substantial financial assets but do not understand the concept of the trust fund and that the interest generated from the fund must cover the operational expenses. As such, you often hear the misguided fact in the parish that the company has lots of money but don t want to spend it. Also, there is no clear method to inform parishioners of what the policies, price structure, internment options, etc. associated with the cemetery are, and as such it creates confusion and potential conflicts in the operation of the cemetery. It is especially important to ensure that parishioners become aware of new services for individuals choosing cremation. The historical and cultural significance of the cemetery should also be promoted. 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. ACTION PLAN The Cemetery Care Company must become much more open and transparent in all aspects of its operations including, and most importantly, the financial aspect. It is recommended that this be accomplished in several ways; however, the most urgent is the development of a St Ninian s Cemetery Care Company web site and the utilization of other social media in the promotion of the cemetery and education of the parishioners. In addition the Care Company currently has no central electronic site where company business documents (minutes, financial reports, property documents, etc.) can be stored and viewed by Board members. This should either be included as a component of the web site development, with security features, or independently. It is the recommendation of this report that the company take immediate action to approve the development of a Cemetery Care Company web site. St. Ninian s Cemetery Sustainability Action Plan 23

24 RECOMMENDATIONS After consideration and review of all of the above the Sustainability Committee has come up with the following recommendations for consideration by the Board of Directors; 1. Investment Strategy Recommendation to supporting the ongoing investment strategy being implemented by the Investment Committee and to strive to attain a return of 5% over time. 2. Pricing Structure and Plot Plans Recommendation to accept new pricing policy and plot plan alternative layouts as presented in this report. 3. Financial Analysis Recommendation to review / amend the by-laws to permit changes in financial structure that would allow 75% of perpetual care sales to be recognized as operating revenue and the remaining 25% be treated as trust funds as shown in Appendix G. 4. Columbarium Recommendation to take affirmative action in aggressively pursuing the development of a columbarium to determine demand for this type of service and associated feasibility through education and public consultation. 5. Structural Issues Recommendation to set up a meeting with the parish finance council to negotiate and document an agreement that outlines roles and responsibilities with Cemetery Care Company assuming all financial responsibilities of the cemetery 6. Capital Improvements Recommendation to accept the capital items outlined, develop a prioritization list and long term plan for implementation. 7. Awareness and Promotion of Cemetery Recommendation to immediately proceed with the development of a web site and at some point a parish consultation meeting to educate the parishioners, receive feedback and generate additional public interest. St. Ninian s Cemetery Sustainability Action Plan 24

25 APPENDIX A PROJECTED INTEREST INCOME Held By Principal Due Date Interest Rate Principal Amount Interest Income Expected Due in Fiscal 2018 Bank of Nova Scotia 2-May % 50, Bank of Nova Scotia 17-May % 19, Bank of Nova Scotia 28-Jun % 20, Bank of Nova Scotia 13-Aug % 24, Bank of Nova Scotia 20-Nov % 20, Montreal Trust 14-Jan % 108,000 2, $241,900 $3, Due in Fiscal 2019 Bank of Nova Scotia 02-Feb % 5, Bank of Nova Scotia 4-Mar % 21, Bank of Nova Scotia 15-May % 11, Bank of Nova Scotia 21-May % 19, Bank of Nova Scotia 13-Jul % 11, Bank of Nova Scotia 2-Jan % 32, Bank of Nova Scotia 27-Jan % 26, $126,300 $3,303 $1, Due in Fiscal 2020 Bank of Nova Scotia 22-May % 19, Bank of Nova Scotia 10-Jun % 8, $27,900 $717 $717 $ To Remain in GIC s Bank of Nova Scotia 17-Sep % 33, Bank of Nova Scotia 7-Jan % 64,000 1,632 1,632 1,632 1,632 1,632 Bank of Nova Scotia 26-Jan % 71,000 1,562 1,562 1,562 1,562 1,562 $168,000 $4,019 $4,019 $4,019 $4,019 $4,019 Interest Income Projection $11,902 $6,670 $4,246 $4,019 $4,019

26 APPENDIX B PROJECTED DIVIDEND INCOME Stock Projected Annual Yield Cost Projected Annual Income Current Holdings Algonquin Power 5.68% 20,033 1,138 1,138 1,138 1,138 1,138 Alimentatoin Couche-Tard 0.60% 19, Brookfield Asset Management 1.70% 20, BCE Inc 4.90% 19, Canadian National Railway 2.22% 20, Canadian Tire 1.88% 19, Manualife Financial 4.28% 19, Royal Bank 4.45% 21, TD Bank 4.56% 19, ETF - XIC 2.75% 25, ETF - XIU 2.67% 24, EFT - XSP 2.06% 40, Vanguard US Hedged 1.39% 50, Bank of Nova Scotia 4.01% 20, Average Rate of Return 3.08% $342,438 $9,402 $9,809 $9,809 $9,809 $9,809 Available for Investment in 2018 Bank of Nova Scotia 3.00% 20, Bank of Nova Scotia 3.00% 24, Bank of Nova Scotia 3.00% 20, Montreal Trust 3.00% 108, ,240 3,240 3,240 3,240 $172,200 $964 $5,166 $5,166 $5,166 $5,166 Available for Investment in 2019 Bank of Nova Scotia 3.00% 5, Bank of Nova Scotia 3.00% 21, Bank of Nova Scotia 3.00% 11, Bank of Nova Scotia 3.00% 19, Bank of Nova Scotia 3.00% 11, Bank of Nova Scotia 3.00% 32, Bank of Nova Scotia 3.00% 26, $126,300 $- $1,643 $3,789 $3,789 $3,789 Available for Investment in 2020 Bank of Nova Scotia 3.00% 19, Bank of Nova Scotia 3.00% 8, $27,900 $- $- $570 $837 $837 Perpetual Care Sales Reinvested 100% Reinvested 3.00% $154,500 $- $963 $1,911 $2,841 $3,738 25% Reinvested No Columbarium 3.00% $38,525 $- $239 $475 $706 $933 25% Reinvested With Columbarium 3.00% $40,800 $- $239 $487 $730 $978

27 Total Projected Dividend Income: Ref. Projected Dividend Income: B-1 With 100% P/C Reinvested No Columbarium $10,366 $17,580 $21,245 $22,442 $23,339 B-2 With 25% P/C Reinvested No Columbarium $10,366 $16,857 $19,809 $20,307 $20,534 B-3 With 25% P/C Reinvested With Columbarium $10,366 $16,857 $19,821 $20,331 $20,575

28 APPENDIX C COMARATIVE BURIAL COST ANALYSIS St. Ninian s Cemetery in Antigonish, NS (Not-for Profit) Options Offered (as of June 2017) Grave Lot Opening Total Full Traditional Burial Plot (1 casket & 1 cremation) $600 $600 $1,200 Cremations Full Size Lot (up to 2 cremations) $600 $350 $950 *Important to note that in our case John MacPherson gets the revenue from opening/closing not the Cemetery. Felt it was more accurate to compare total cost to the consumer rather than the total revenue to the cemetery. Resurrection Cemetery in Sydney Forks, NS (Not-for Profit) Options Offered (as of June 2017) Grave Lot Opening Total Full Traditional Burial Plot (1 casket & 1 cremation) $1,737 Inc. $1,737 Cremations Full Size Lot (up to 4 cremations) $1,491 Inc. $1,491 Cremations - Smaller Lot ( 1 cremation) $879 Inc. $879 Cremations - Smaller Lot (2 cremations) $1,758 Inc. $1,758 Columbarium Niche (up to 2 urns) $1,775 - $1,775 *Note Figures include HST Brookside Bedford Cemetery in Lower Sackville, NS (Not-for Profit) Options Offered (as of June 2017) Grave Lot Opening Total Full Traditional Burial Plot (1 casket & 2 cremations) $1,350 $1,100 $2,450 Cremations Full Size Lot (up to 3 cremations) $1,350 $450 $1,800 Cremations - Smaller Lot (2 cremations) $800 $450 $1,250 Columbarium Niche (up to 2 urns) $2,000 $150 $2,150 Pleasant Hill Cemetery, in Lower Sackville, NS (For-Profit) Options Offered (as of June 2017) Grave Lot Opening Total Full Traditional Burial Plot (1 casket & 4 cremation) $1,725 $920 $2,645 Cremations Full Size Lot (up to 4 cremations) $1,725 $920 $2,645 Cremations - Smaller Lot (2 cremations) $920 $517 $1,437 Columbarium s are planned for the future *Note Figures include HST