crown corporation - nova scotia · learning in and about the visual arts, nova scotia’s cultural...

for the fiscal year 2000-01

Crown Corporation B U S I N E S S P L A N S

P R O V I N C E O F N O VA S C O T I A

for the fiscal year 2000-01

Crown Corporation B U S I N E S S P L A N S

P R O V I N C E O F N O VA S C O T I A

PRINTED BY ORDER OF THE HOUSE OF ASSEMBLY

SUBMITTED BYTHE HONOURABLE NEIL J. LEBLANC

MINISTER OF FINANCE

© Crown copyright, Province of Nova Scotia, 2000

Designed and published byCommunications Nova Scotia

ISBN: 0-88871-506-4

Crown Corporation Business Plans

Crown corporation business plans are printedunder authority of Section 73 of the ProvincialFinance Act:

73 Commencing April 1, 1997, a crown corporation shall annually

(a) submit to the House of Assembly for approval during consideration of the Estimates its business plan and any proposed public financing; and

(b) table in the House of Assembly audited financial statements for the preceding fiscal year

The public presentation, annually, of Crown corpo-ration business plans will increase the accountabili-ty to the House of Assembly of organizations gen-erally accepted to be in the public sector butoutside the direct control of government. Businessplans define key elements of Crown corporationssuch as their mission, strategic goals, and corefunctions as well as give indication of performance,priorities, outcome measures, and budgets.

Organizations included in this volume are designated as Crown corporations by theirenabling legislation, by Order in Council, or byapplication of the criteria established underSection 70 (Crown Corporations) of the ProvincialFinance Act.

The approval of business plans as required byclause (a) will be sought through the EstimatesResolutions. Compliance with clause (b) will beachieved throughout the fiscal year as auditedfinancial statements become available.



Contents

Art Gallery of Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Bedford Waterfront Development Corporation Limited . . . . . . . . . . . . . . . . . . . . . . . . . . .21Halifax-Dartmouth Bridge Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35Halifax-Dartmouth Port Development Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47InNOVAcorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49Novaco Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61Nova Scotia Arts Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63Nova Scotia Beef Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73Nova Scotia Business Development Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79Nova Scotia Crop and Livestock Insurance Commission . . . . . . . . . . . . . . . . . . . . . . . . . .87Nova Scotia Farm Loan Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95Nova Scotia Film Development Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109Nova Scotia Fisheries and Aquaculture Loan Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119Nova Scotia Gaming Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127Nova Scotia Government Fund Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147Nova Scotia Harness Racing Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153Nova Scotia Housing Development Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155Nova Scotia Liquor Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .161Nova Scotia Municipal Finance Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189Nova Scotia Power Finance Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .201Nova Scotia Resources Limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .207Rockingham Terminal Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .217Sydney Environmental Resources Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .223Sydney Steel Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .233Tidal Power Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .235Trade Center Limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .237Waterfront Development Corporation Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .251


Art Gallery of Nova ScotiaBusiness Plan 2000–01

Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7Governance, Management, and Staffing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7High-Level Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8Current Planning Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

New Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12Linkages and Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Outcomes and Outcome Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

5

The Art Gallery of Nova Scotia (AGNS) isthe only public art museum in the province.The gallery is an agency of the Province ofNova Scotia for the acquisition, preserva-tion, and exhibition of works of art, holdingthem in trust for the people of Nova Scotia,and for providing education in the visualarts. Its purpose is to set a standard thatpresents the province and its people asmajor contributors to the cultural growth ofthe country as well as the province. Thegallery strives to offer a balanced program,addressing the needs and interests of avariety of community constituencies.

The gallery is in a unique position to bringpeople in contact with original art objectsand to create an environment of lifelonglearning in and about the visual arts, NovaScotia’s cultural history, and the ideas,issues, and concerns that make the arts acentral element in the well-being of a soci-ety and its people. While the gallery has nocompetitors for its core function, it is incompetition with various arts, leisure, andnot-for-profit organizations both for usersand for funding support. The gallery issensitive to its public image and the attrib-utes that are expected from its current and

potential customers; therefore the gallerymust continually strive to provide qualityexhibitions, programs, and services.

Governance, Management,and StaffingThe Art Gallery of Nova Scotia, as anagency of the province, is responsible tothe Department of Tourism and Culture.The gallery is overseen by a Board ofGovernors and employs a full-time staff of21 and part-time staff of approximatelytwo, serving all parts of the operationfrom curatorial to data entry functions.Sessional program instructors (approxi-mately 22 per year) are employed on con-tract, per course basis. Security staff num-ber 10, with occasional part-timeassistance for special events. The Directorreports to the Board of Governors, andfive section heads report to the Director.

Some 225 volunteers assist gallery staff infunctions that range from board member-ship, to fundraising, special events, galleryshop, art sales and rental, informationdesk, membership, and giving tours.

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Art Gallery of Nova Scotia

Introduction

High-Level Core Business FunctionsThe AGNS operates the provincial artgallery to global art museum standards. Ithas the responsibility of connecting peoplethroughout the province with their visualand cultural heritage and current activitiesin the arts. The AGNS holds its collectionin trust for Nova Scotians and is an institu-tion that stimulates lifelong learning in visual arts and culture, through the collection and preservation of art and theoffering of information and ideas throughexhibitions, programs, and services.

Current Planning EnvironmentThe Art Gallery of Nova Scotia managesseveral funds for continued enhancementof the organization and the programs itoffers to the general public. AGNS raisesfrom grants, private donors, corporations,and members 100 per cent of all moniesused for the purchases of artworks. Thesemonies are managed and accounted forthrough the Acquisition Fund. AGNS alsohas an established Endowment Fund,which represents donations for the long-term benefit of the institution. Many ofthese donations have been received withthe donor specifying restricted use; thislimits the gallery to using only the earnedincome from investments. Dependence onmarket performance dictates the value ofearned income in any given year.

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Budget Allotments

The high-level budget allotments are as follows:

Operational Area Allocation

Operations and physical plant $1,061,500

Exhibitions and public programs delivery $ 510,200

Collection management and conservation $ 270,900

Development and marketing initiatives $ 275,000

Total $2,117,600

9

Mission


Major Challenges

• To meet external and internal expecta-tions for increased programming (exhi-bitions; public programs; publications;collection care, maintenance, and devel-opment), including the opening andoperation of the Western Branch of theArt Gallery of Nova Scotia in Yarmouth.

• To provide the level of care required forthe Crown’s assets (the collection) withdiminishing resources.

• To deliver the planned level of executionof programs without compromising theprofessional integrity of museum prac-tice and program quality.

• To increase the level of funding from thepublic, private, and corporate communi-ty to meet the goals of the organization.

• To increase the usage and awareness ofthe gallery and the visual arts and todevelop new audiences.

Strategic GoalsGoal 1• To contribute to the economic growth of

the province through raising the profileof the gallery as a premier tourist desti-nation promoting Nova Scotia’s richvisual and cultural heritage. To reachthis goal the AGNS must increase itspartnership with the tourist sector andlocal area business.

Goal 2• To improve the effectiveness of the

organization through training, team-work, and the application of appropriatetechnologies.

To serve the public

by bringing the visual arts and people

together in an environment which

encourages exploration,

dialogue, and enjoyment.

This will be achieved by providing

leadership in the development

and preservation of quality

collections, exhibitions, and

education and public programs.

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Goal 3• To contribute to a healthy society by

reflecting the cultural diversity of theprovince in programs and services.

Goal 4• To continue to provide accessible

experiences in the arts, which help individuals, develop awareness and self-esteem through lifelong learningand activity in the visual arts, and toincrease the number of users of AGNSprograms and services.

Goal 5• To prepare for the opening of the

Western Branch of the Art Gallery ofNova Scotia in Yarmouth in the springof 2001.

Goal 6• To increase the gallery’s abil ity to

provide greater access to the collectionand information and documentationabout it.

Goal 7• To increase the level of all funding

sources of the gallery—government(provincial and federal, through grants),corporate, private, and earned revenuefrom products and services.

Core BusinessFunctions• To acquire, conserve, maintain, and

exhibit the permanent collection in trustfor the people of Nova Scotia. The col-lection is guided by an acquisition poli-cy and a committee of internal andexternal members. Care of the collec-tion, documentation, maintenance ofrecords, and research pertaining to theart are core responsibilities of thegallery to its clients and the people ofNova Scotia.

• To provide temporary exhibitions (bothfrom the collection and gathered fromexternal sources) that explore thebreadth and depth of visual arts in ourtimes and times passed, through exten-sively researched publications, presen-tation, and animation of the topic. Someexhibitions travel to provincial, regional,national, and international sites.

• To provide art education for learners ofall ages and at all levels of expertisethrough publications, in-gallery infor-mation (labels and brochures), publicprograms, school programs, and pro-grams for children and families. Thegallery provides a unique environmentfor learning about art, as it can providecontact with original artworks (notreproductions) in a wide variety of

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forms. The gallery works in partnershipwith individuals and community groups,schools, teachers, and artists to provideexperiences with art.

• To further develop a diversified fundingbase appropriate for carrying out themandate and mission of a vital provincialinstitution that meets the needs andexpectations of the people of Nova Scotia.

• To provide a resource for information onNova Scotian artists and to play a signif-icant role in the development of culturalindustries.

Priorities for 2000–01The following initiatives will be undertakenby the AGNS to realize its goals andrespond to new challenges:

• The AGNS will be increasing its partner-ships with tourist and business develop-ment organizations in order to promotethe gallery as a primary tourist destina-tion and one that will bring business tothe downtown area and throughout theprovince. The gallery will also bedesigning promotional publications forwide distribution that promote thegallery as a tourist destination.

• The gallery will plan for the WesternBranch of the Art Gallery of Nova Scotia

in Yarmouth. This gallery will add to thecultural and tourist attractions ofWestern Nova Scotia, contributing toeconomic growth through tourism aswell as service to the community.

• In order to address organizational effectiveness, the gallery will be developing and initiating a program ofstaff training that addresses staff understanding of the specific nature ofmuseum operations, efficient use ofavailable technologies, and group development.

• The gallery will be continuing its initiatives to engage curators representingminority groups both in advisory capaci-ties and as developers of exhibitions. In2000–01 the gallery will be in the secondyear of a two-year First Nations curatorialresidency program and will be mountingan exhibition of work by African–NovaScotian women artists, curated by aBlack, female curator. The gallery will alsobe continuing its efforts to include Blackstudents in programs. In partnership withthe Mount Saint Vincent University ArtGallery, the gallery will be touring an exhibition by a Black artist to centresthroughout the province.

• The gallery will be adding images to thecollections database and working onstrategies to make the database accessi-ble to visitors, both real and virtual. Thedata contained by the collectionsrecords will also be increased.

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• The gallery will be aggressively pursu-ing increased corporate and privatesponsorship for programs and projectsin order to both maintain and increasethe scope and quality of exhibitions,programs, and projects.

New ProgramsPlanning for the Western Branchof the Art Gallery of Nova Scotia inYarmouth

The Western Branch of the Art Gallery ofNova Scotia in Yarmouth has been in theplanning stages since 1994 and is in linewith the gallery’s theme of “reaching out.”The Western Branch Gallery is planned toopen in the spring of 2001. When the pro-ject is complete, the gallery will houseboth temporary and permanent collectiongalleries, interactive and educational facili-ties, along with preparation, art storage,offices, a gallery shop, and ancillaryspaces. The building, constructed in 1913,will be restored and with the addition of anannex will provide a facility of approxi-mately 11,000 sq. ft total floor area. Thearchitectural concept is based on thepreservation of the original classical-stylebank building with an adjacent courtyard.

The staff component for the WesternBranch consists of a curator/director,

secretary, preparator, gallery shop manag-er, and casual help. The operating budgetrequirement for 2001–02 is approximately$250,000. The capital campaign for theproject will continue into 2001 with a goalof $2.6 million.

The Western Branch of the AGNS will pro-vide opportunities for artists, art educationfor students of all ages, and developmentof cultural industries throughout south-western Nova Scotia.

NSCAD ARCHIVE

This project presupposes that a significantcollection reflecting and documenting thespirit and status of NSCAD is long overdueand that the Art Gallery of Nova Scotia isits rightful home. During Garry NeillKennedy’s tenure at the college, emphasison a rigorous practice in conceptual andprocess-based art making brought togeth-er a wide range of highly competent resi-dent and visiting faculty in a variety of dis-ciplines including studio, art history,crafts, graphic and environmental design,and art education. This activity will be rec-ognized by the NSCAD ARCHIVE and willbe a valuable resource to students, collec-tors, art teachers, and researchers.

The NSCAD ARCHIVE will be located onthe fourth floor of Gallery North of the Art

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Gallery of Nova Scotia. The construction ofthe facility, with the support of private andcorporate donors, will take place in thespring of 2000 and will open to the publicin the summer of 2000. An operationalplan has been developed and includesdirect participation/partnership with theNova Scotia College of Art and Design.

The NSCAD ARCHIVE will bring acclaim toour community by assuring us an impor-tant place in the documentation ofCanada’s national artistic heritage.

Linkages and PartnershipsThe climate in which museums and artgalleries find themselves has changed dra-matically. The success of a modern artgallery is very dependent on its ability todemonstrate partnerships with other orga-nizations and to achieve more self-suffi-ciency. To operate a public institution, theAGNS needs to continue to position itselfin the development of partnership andlinkages to

• partner with other public galleriesacross Canada and with the NationalGallery of Canada on research, exhibi-tion and art education, production, andcirculation

• form partnerships with the network ofgalleries and museums across NovaScotia

• form partnerships with corporate andindividual sponsors to enhance exhibi-tions and programs

• join with tourism agencies and othermarketing agencies to promote theprovince and its many cultural assets

• generally work with all arts organiza-tions and the Nova Scotia CulturalNetwork to enhance the cultural life ofthe province

• market the gallery as a home for com-munity events and activities, therebyforming linkages with a wider communi-ty and introducing new audiences to theArt Gallery of Nova Scotia.

• the public and private education sectorsat all grade levels

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Outcomes and Outcome Measures

Contribute to economic growth

Outcome Indicator Measure Actual Target Comments• Raise gallery profile as key • Volume of visitors to • Number of inquiries • Unknown • 10% increase These figures would come

tourist destination city/province requesting from Department of information about gallery Tourism and Culture

• Increased program users • Attendance • Numbers of visitors, • 126,000 • 140,000 statistics.program users

• Increased product and • Sales and admissions user revenues income increase

Improve organization effectiveness

Outcome Indicator Measure Actual Target Comments• Training to increase staff • Increased efficiency

knowledge and skills and job satisfaction

• Apply appropriate • Fewer errors and • Numbers of complaints,technologies to tasks duplications of records errors

• More staff access • Access rate of recordsto information

• Improve effectiveness • Reduction in amountof records management of paper files in current

and stored files

Goal 1 �

Goal 2 �

Primary goals here areprogram registration, room bookings, and visitorstatistics, system efficiency and increased access to collection records.

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Reflecting cultural diversity in programs and service

Outcome Indicator Measure Actual Target Comments• Increase relevance of • Increased contribution of • Number of FTEs • 1 FTE on two-year • Also involve a Black

the gallery to citizens and people of cultural minorities term funded by Canadian curatorvisitors of diverse cultures to gallery programs as staff, Canada Council

volunteers, contractees• Increased number of visitors • Number of users • Statistics not kept • Begin to keep statistics

and program users from visible minorities and minority cultural groups

• Increased number of • Number of exhibitions • 1(First Nations) • 1 First Nationsexhibitions that feature • 1 Black Canadianwork by artists of minoritycultural groups

• Number of individual • 5%works in exhibitionsand collection

Accessibility to art and development of lifelong learning

Outcome Indicator Measure Actual Target Comments• Increased valuing of • Increased program use • Number of participants

art and activity of art (particularly adult)for all ages • Increased general visitors • Number of visitors

• Keep programs free • Fee structureand/or very low cost

Plan for the opening of the Western Branch

Outcome Indicator Measure Actual Target Comments• Active facility in Yarmouth • Number of visitors

• Amount of self-generated revenue

Goal 3 �

Goal 4 �

Goal 5 �

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Accessibility to collection information

Outcome Indicator Measure Actual Target Comments• Increased understanding • More complete digital • % of number of

of collection and paper records record increase• Easier access of information • Number of inquiries

by both staff and external clients successfully responded to

• Number of inquiries andsearches carried out by internal and external clientrather than relevant staff

• Increase in information • Number of labels as % • 10% increaseavailable in exhibitions of works on exhibitioni.e., extended label text

Increase number of users

Outcome Indicator Measure Actual Target Comments• Increased access to • Visitor numbers • Number of casual visitors • 94,000 • 10% increase

knowledge and information • Number of program users • 19,000 • 10% increase

Increase funding levels

Outcome Indicator Measure Actual Target Comments• Increased ability to • Increase in sources • Amount of

fulfil mission and mandate and levels of funding provincial allotmentper source • Amount of federal

grant programs• Amount of other grants• Amount sponsorship• Amount of user fees• Amount of earned revenue

(shop, space rentals, services)

Goal 6 �

Goal 7 �

Goal 8 �

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Key Messages

• The AGNS is a great destination for visitors to Nova Scotia to experienceour culture.

• The AGNS is a well run, efficient, andeffective organization.

• The AGNS actively engages NovaScotians of diverse cultural backgrounds.

• The AGNS makes learning about art unin-timidating and interesting for everyone.

• The AGNS is not just a Halifax gallery.

• The AGNS shares the information it hasacquired about art in the collection.

• The AGNS delivers high-quality pro-grams and services in a fiscally respon-sible manner, through a diversifiedfunding profile.

Intended Audience

• Tourists from outside the province aswell as within.

• Other galleries and museums with whomwe partner; other government depart-ments; donors and sponsors; artists.

• Members of minority cultures; other government departments; teachers andstudents; program users and potentialvisitors; artists of diverse ethnic backgrounds.

• Lifelong learners; potential programusers of all ages; general visitors;artists; students.

• Nova Scotians throughout the provincewho see our traveling exhibitions, andcitizens and tourists who are potentialusers of the Western Branch of theAGNS in Yarmouth; artists throughoutthe province.

• Researchers and curators from otherinstitutions and academia; artists; thegeneral public; people who may nevervisit the AGNS but are interested in thecollection.

• Government; donors and sponsors;granting agencies; artists.

Communications

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Human Resources• To develop a strategy for the needed

increase in staff.

• To provide professional developmentopportunities for staff.

• To continue in-house training programfor volunteers.

• To complete Occupational Health andSafety manual update.

• To institute a staff rewards and recogni-tion program.

• To continue working to provide ahealthy, safe, productive environment.

InformationTechnologyThe Collections Management system hasbeen installed and basic records entered.The entry of digital images to the recordsis in progress. The system is scheduled forupgrade to a more powerful system withmore records capability and the possibilityof Internet and kiosk access to records.

The major need for technological supportis a system that integrates course registra-tion, tour bookings, space bookings, andvisitor records and demography and pro-

duces the relevant statistics and forms.This is an urgent need with our currentlevel of activity.

Staff training for all employed technolo-gies is a priority.

Financial Services• To upgrade the financial system to pro-

vide more comprehensive reports.

• To provide financial statements within10 working days after month end.

• To improve monthly cash flow projec-tions.

• To analyse revenues and expendituresand make recommendations forimprovement.

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Budget


Operating BudgetRevenueYears 2000 to 2003

Revenue 2000–01 2001–02 2002–03

Allotment $1,102,900 $ 992,600 $ 992,600Admissions 45,000 50,000 50,000Catalogue sales 5,000 5,000 5,000Programming recoveries 45,000 48,000 50,000Membership 40,000 46,000 53,000Direct mail 65,000 75,000 85,000Special events 80,000 105,000 125,000Sponsorship 425,000 425,000 425,000Advertising 8,000 8,000 8,000Rent shop, café, ASR 45,000 45,000 45,000Business development 25,000 26,000 27,000Interest 9,000 9,000 9,000Gallery services 500 500 500Endowment contribution 215,000 250,000 215,000Insurance acquisition contribution 5,000 5,000 5,000Grants 175,000 200,000 200,000Miscellaneous income 15,000 15,000 15,000

Total Revenue 2,305,400 2,305,100 2,310,100


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Operating BudgetExpendituresYears 2000 to 2003

Expenditures 2000–01 2001–02 2002–03

Salaries & benefits $ 850,000 $ 850,000 $ 850,000Printing & publications 20,000 20,000 20,000Professional fees 20,000 20,000 20,000Travel 35,000 35,000 35,000Stationary, postage 55,000 55,000 55,000Staff development & training 5,000 5,000 5,000Telephone 38,000 38,000 38,000Delivery & shipping 2,500 2,500 2,500Admin promotional 4,500 4,500 4,500Memberships—professional 5,000 5,000 5,000Equipment rental & maintenance 17,500 17,500 17,500Security 177,000 177,000 177,000Insurance 35,000 35,000 35,000Utilities 300,000 300,000 300,000Building maintenance &cleaning 50,000 50,000 50,000Climate control—Honeywell 125,000 125,000 125,000

Elevator maintenance 15,200 15,200 15,200Development/public relations 100,000 100,000 100,000Programming/education 300,000 300,000 300,000Outreach 100,000 100,000 100,000Permanent collection 5,000 5,000 5,000Vehicle 7,000 7,000 7,000Collection management 6,000 6,000 6,000Conservation lab 5,000 5,000 5,000Workshop supplies 15,000 15,000 15,000Technology 5,000 5,000 10,000Miscellaneous 3,500 3,500 3,500Bank/Visa charges 3,500 3,500 3,500

Total Expenditures $2,304,700 $2,304,700 $2,309,700

Surplus/Shortfall $ 700 $ 400 $ 400

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25Strategic Goals and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25Communications Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

Financial History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28Financial Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

Annex A: Financial Statements and Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29Operating Statement and Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29Capital Expenditures and Funding 2000–03 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30Capital funding for South Jetty and Marina Development . . . . . . . . . . . . . . . . . . . . . . . .32Debenture Repayment 2000–03 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33

21


Bedford Waterfront Development Corporation LimitedBusiness Plan 2000–01

IntroductionThe Bedford Waterfront DevelopmentCorporation Limited (BWDCL) is a provin-cial Crown corporation formed in March1999. The BWDCL strives for the highestquality of urban design through coordinat-ing, owning, developing, maintaining, con-trolling, managing, selling, leasing, or oth-erwise dealing with any lands, premises,or undertaking relating to waterfrontdevelopment around the Bedford Basin.

Corporation History

The Bedford Waterfront DevelopmentCorporation (BWDC) was formed in 1988to oversee dredging in the area where theSackville River empties into the BedfordBasin. To accommodate the removed sedi-ment, a containment and berm systemwas constructed adjacent to the existingsewage treatment plant, creating 24 acres(9.7 ha) of land. The BWDC managed theproject using funding provided from feder-al, provincial, and municipal grants andbank financing.

Twelve (4.9 ha) of the 24 acres (9.7 ha)were deeded back to the local authoritiesfor the development of parkland. Theremaining 12 acres (4.9 ha) were dividedinto lots for commercial and residential

development. Sale of the lots began in 1993and was completed by November 1999.

As a result of changes in provincial gov-ernment legislation, the BWDC was dis-solved and the Bedford WaterfrontDevelopment Corporation Limited(BWDCL) was incorporated in March 1999as a provincial Crown corporation.

Location

All building sites and current potential ser-vices are located in the northwest cornerof Bedford Basin with road access fromthe Bedford Highway via Convoy Run.

The business address of the BWDCL is1751 Lower Water Street, The CableWharf, Halifax NS B3J 1S5.

Ownership

Via the creation of the BWDCL, 100,000shares of common stock were authorizedby the Province of Nova Scotia. As ofMarch 2000, three shares are outstandingand have been allocated to the Province ofNova Scotia. They are currently held bythe Deputy Minister of the Department ofEconomic Development

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Bedford Waterfront Development Corporation

Management

The Memorandum of Association and theArticles of Association vest the manage-ment of the BWDCL in an appointed Boardof Directors. The maximum number ofdirectors is nine, including one directorwho is designated as the president.

The Board of Directors operates as a man-agement team and is responsible for theday-to-day operation of the BWDCL, long-term planning, and implementation ofapproved projects. Current board mem-bers have been drawn from diverse pro-fessional and business fields.

As required, the Board of Directors and/orthe President of the Board seek profes-sional advice and opinion to augment theboard’s deliberations. The Board ofDirectors meets on an “as-required” basisto oversee the operations of the BWDCL.In addition to attending meetings, eachboard member is assigned responsibilitiesfor specific areas of the operation of theBWDCL.

Regulations

Operating as a provincial Crown corpora-tion, the BWDCL falls under variousprovincial regulations such as theCompanies Act, the Industrial

Development Act, and the ProvincialFinance Act. The creation and sale of landis regulated by federal, provincial, andmunicipal authorities. The BWDCL hasobtained all required federal and provincialpermits, licences, and bonds required tooperate the corporation. As part of theOrder in Council establishing theCorporation, all contracts are to beapproved by the Department of Justice.

VisionOperate the Bedford WaterfrontDevelopment Corporation Limited (BWDCL)in a competent, professional manner whilemeeting the goals of the corporation and themandate of redeveloping and revitalizing theBedford Basin Waterfront.

The BWDCL’s vision is to enhance thecommunity’s appeal as a desirable place inwhich to live, to invest and to visit by pro-viding public access and use of landsadjacent to the Bedford Basin.

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Mission

Strategic Goals and Objectives Objectives

The near-term (within 12 months) objec-tives are to finish the sale of current devel-opment sites, develop a marina capability,complete current projects, and start theland filling from the South Jetty to aroundCrosby Island necessary for Phase 2development.

The medium-term (12 to 36 months)objectives are to complete the marinadevelopment and complete the in-fillingfrom the South Jetty around Crosby Islandnecessary for the Phase 2 development.Approximately 30 acres (12 ha) of land

will be created, a portion of which will besold to private interests for residential andcommercial development.

If desired, and based on the success ofthe near- and medium-term objectives, thelong-term (greater than 36 months) objec-tive is to acquire additional waterfrontproperties and water lots on the westernside of the Bedford Basin to enable thegeneration of more land for public accessand use. However, an option at that timemay be to wind up BWDCL, since it willhave accomplished its original goals. Thisshould be addressed in 2001.

Strategic Goals

The near-term goals of BWDCL are

Goal 1Monitor the progressive sale of sites 3.2and 4.5.

Goal 2Continue the land in-fill of the westernside of the Bedford Basin along the water-front on an opportunity basis, using pyriticslate.

Goal 3Complete the filling of the caissons thatmake up Convoy Quay and the South Jettywith dredge material.

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“To develop the waterfront

around the Bedford Basin

for the benefit of the public,

working in partnership with

the private sector and

public agencies.”

Goal 4Complete the obligations of the contractdevelopment agreement between HRMand the BWDCL (boat ramp and marina).

Goal 5Complete the accoutrements for ConvoyQuay: lights, power, water, and lighthouse.

Goal 6Begin the development of a marina facility.

The medium-term goals of BWDCL are

Goal 7Complete the development of the marinafacility.

Goal 8Complete Phase 2 of the overall develop-ment by a joint venture arrangement orthrough expropriation of private land. Theobjective of Phase 2 will be refinedthrough public participation meetings andeconomic analysis.

Goal 9Complete the capping of the South Jetty.

The long-term goal of the BWDCL is tocontinue to develop public access alongthe western side of Bedford Basin by leaseor purchase of water lots from the HalifaxPort Authority and other land owners.Access will be in the form of walkways,pathways, bicycle ways, and if the area

allows, additional commercial and residen-tial development.

Communications PlanThe following objectives will guide adver-tising and promotions:• Position BWDCL as the leading service

provider for in-fill materials.

• Coordinate sales literature and demon-stration materials with the sales effortsfor the commercial and retail space.

• Establish an image of BWDCL as anorganization that is professional, reli-able, and positioned in the market forquality marina services.

• Develop an advertising campaign builtaround quality of life and quality of prod-uct themes, emphasizing the location ofthe products, residential, commercial,and marina service. The ad campaignwill be economical, focused, and coordi-nated with on-site developers.

BWDCL recognizes that the marina facility,at this time, requires extensive promotion.This must be done aggressively in a man-ner focused to the local market. Themethod to access this market is wellknown for the local area. BWDCL willadvertise in the local boating news, stores,and boatyards as a method of generating

26


interest in the marina facilities and willestablish a marina website availablethroughout North America.

Advertising Campaign

The BWDCL will continue to participate inlocal boat shows in concert with the manu-facturer of the marina. A scale model hasbeen built, which shows how the NorthJetty and the marina will look after develop-ment. This display will be shown in numer-ous public locations to generate feedbackand public input. Additional meetings willbe held with the public to generate interestin the Phase 2 part of the project.

Public Relations

Publicity efforts are intended to accom-plish the following:

• Promote BWDCL as a supplier of qualitypublic facilities, such as the public mari-na, the walkway, and the parkland area.

• Create public discussion regarding thefuture development phases, includingthe long-term goal of a walkway all theway to the China Town restaurant, andcultural and potential recreational infra-structure.

Publicity Strategy

In 2000–01, BWDCL will focus on the fol-lowing publicity strategies:

• Update the company backgrounder onBWDCL to be used as the primary pub-lic relations tool for all target media edi-torial content. This will also be effectivefor inclusion in press kits, dealer kits,and sales packages. The backgrounderwould include sections on the followingbroad subjects:

– the company

– history

– management philosophy

– achievements

– products and services

– market niches

• Produce a website of high quality, whichwill include text material drawn from thebackgrounder. Content will be updatedevery two months and feature currentactivities and link to other marina web-sites in North America.

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Financials

Financial HistoryThe federal government, the provincialgovernment, and the Town of Bedfordhave invested $10.6 million from 1989 to1995. The remainder of the investmentwas capitalized as a debenture with avalue of $12.4 million. Sale of land hasoccurred since 1993, netting over $1.62million. The parklands and public landsconveyed to the Town of Bedford were val-ued at $6.78 million. The debenture hasbeen adjusted for these transactions andcurrently has a balance remaining of $3.56million. The debenture’s current balancewill be repaid as payments are received onthe sale of existing land or when anticipat-ed recoveries exceed expenditures. Theprovince has continued to provide operat-ing funds in the amount of $150,000 to$170,000 per year for the operation of theBWDCL.

Financial ProjectionsAnnex A shows the following financialstatements for the corporation

• Operating Statement and Budget,1999–2003

• Capital Expenditures and Funding,2000–03

• Debenture Repayment, 1999–2003

These exhibits present BWDCL estimatesto achieve the stated goals and objectivessupporting its mission and vision.Assumptions used in the projectionsreflect a conservative approach to poten-tial revenues and expenditures.

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29

Annex AFinancial Statements and ProjectionsOperating Statement and BudgetCurrent Operating Budget and Three-Year Forecast

Fiscal year ending March 31,

2000 2001 2002 2003Insurance

Director’s liability insurance $3,500 $3,500 $3,500 $3,500

Property liability insurance 1,600 1,600 2,000 2,000

Telephone 1,200 1,200 1,200 1,200

Office rent, Halifax port office 4,000 2,000 2,000 2,000

Delivery costs 200 200 200 200

Office supplies 1,000 1,000 1,000 1,000

Accounting fees 8,100 8,000 8,000 8,000

Secretarial support 2,000 2,000 3,000 3,500

Legal expenses

General 25,000 15,000 15,000 15,000

Special projects 50,000 30,000 0 0

CN rail lease 200 200 200 200

Lease for jetty land 0 0 0 0

Marketing expenses

Jetty opening 16,000

Meeting costs 5,000 5,000 5,000 5,000

Site advertising 0 0 5,000 5,000

Proposal preparation 5,000 5,000 0 0

Land improvement & maintenance

Lot 3.2 0 14,000 10,000 0

Lot 4.5 0 1,100 0 0

Directors fees

Regular meetings 12,000 12,000 15,000 15,000

Extra meetings 40,000 30,000 20,000 20,000

Caisson maintenance 3,500 3,000 1,000 0

Miscellaneous 3,000 3,200 3,400 3,900

Depreciation 2,500 2,000 2,000

Total operating $183,800 $140,000 $97,500 $85,500

Funding from

Nova Scotia Government $(165,000) ($140,000) $(97,500) $(85,500)

Balance from project revenue $18,800 $0 $0 $0



30

Capital Expenditures and Funding, 2000–03Capital Budget: Three-Year Forecast


2000 2001 2002 2003Capital Projects Budgeted Costs

North Jetty (545 ft/165 m)

1. Balance of cement deck 80,000

2 Lighting & wiring 75,000

3 Deck benches, planters, lifesaving equipment 3,000 2,000

4 Miniature lighthouse (tourist/ice-cream kiosk) 40,000 35,000

5 Interior jetty floats (4–30-ft/1.2–9-m floats) 30,000

6 Walkway to jetty & cope wall (500 ft/152 m) 50,000

North Jetty Total Budgeted Costs $208,000 $72,000 $35,000 $0

Marina (pleasure boats maximum capacity 250 boats)

1 Boat floats for rent to adjacent

businesses—20 slips 137,400

2 Boat floats for rent to general public—20 slips 137,400

3 Electrical, water, cable & Internet services

to floats 13,000

4 Security gates, ramps & related float pad

to boats 12,200

5 Boat floats for rent to general public—50 slips/yr. 375,000 375,000

6 Annual marina operating costs 35,000 40,000 40,000

Marina Total Budgeted Costs $0 $335,000 $415,000 $415,000

South Jetty (200 ft/60 m)

1 Cement or timber deck 45,000 300,000

2 Lighting & wiring 25,000

3 Lifesaving equipment 3,000

4 Interior jetty floats (3–30-ft/0.9–9-m floats) 25,000

South Jetty Total Budgeted Costs $45,000 $328,000 $0 $25,000

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Capital Expenditures and Funding, 2000–03Capital Budget: Three-Year Forecast (continued)


2000 2001 2002 2003

South Jetty Land Assembly Completion

1 Walkways Parcel B (400 ft/120 m) 40,000

2 Walkways Parcel C (400 ft/120 m) 80,000

3 Waterfront road to South Jetty (1500 ft/460 m) 300,000

4 Waterfront roadway parking, lighting & curbs 150,000

5 In-fill of land adjacent to South Jetty 100,000 100,000 100,000 200,000

South Jetty Land Assembly

Total Budgeted Costs $100,000 $140,000 $180,000 $650,000

Funding transfer to operating account 18,800

Total capital projects budgeted costs $371,800 $875,000 $630,000 $1,090,000

Capital Projects Funding (See attached for details)

1 North Jetty projects (127,000) (120,000) (40,000) (50,000)

2 Marina 0 (350,000) (342,500) (380,000)

3 South Jetty (200,000) (115,000) (105,000) (50,000)

4 South Jetty land assembly 0 (1,000,000) (1,000,000) (1,000,000)

Total Projected Capital Funding (327,000) (1,585,000) (1,487,500) (1,480,000)

Balance of capital projects unfunded (surplus) 44,800 (710,000) (857,500) (390,000)



32

Capital Funding for North and South Jetties and Marina DevelopmentCapital Budget: Three-Year Forecast


2000 2001 2002 2003Capital Projects Budgeted Funding

North Jetty (545 ft/165 m)

1 Dredge materials 0 0

2 Provincial reallocation of property sale for jetty 117,000

3 Property sale adjustment for walkway 100,000

4 Cruise line rentals 20,000 30,000 40,000

5 Advertising revenue 10,000

6 Summer lease rental revenue, lighthouse kiosk 10,000 10,000

North Jetty Total Budgeted Revenue $127,000 $120,000 $40,000 $50,000

Marina (pleasure boats maximum capacity 250 boats)

1 Sale of long-term lease for pleasure boat slips 300,000 250,000 250,000

2 Sale of annual leases for pleasure boat slips 15,000 52,500 90,000

3 Annual marina maintenance & security 35,000 40,000 40,000

Marina Total Budgeted Revenue $0 $350,000 $342,500 $380,000

South Jetty (200 ft/60 m)

1 Pyritic slate landfill 200,000 80,000 80,000

2 Dredge materials 0 35,000

3 Marina long-term business lease 25,000 50,000

South Jetty Total Budgeted Revenue $200,000 $115,000 $105,000 $50,000

South Jetty Land Assembly Completion

1 Sale of assembled land 1,000,000 1,000,000 1,000,000

South Jetty Land Assembly Total Budgeted Revenue $0 $1,000,000 $1,000,000 $1,000,000

Total capital projects funding $327,000 $1,585,000 $1,487,500 $1,480,000

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Debenture Repayment 2000–03Province of Nova Scotia Debenture: Three-Year Forecast


2000 2001 2002 2003

Opening Balance—Beginning of Fiscal Year $3,562,081 $2,614,081 $1,256,081 ($137,919)

Sale of properties & debenture payouts

Site 3.8 (10,000) (24,000) (314,000)

Site 3.2 (750,000) (700,000) (350,000)

Site 3.2 prov/realloc proceeds for

jetty completion 117,000

Site 4.5 (95,000) (655,000) (750,000)

Site 4.5 property sale adjustment for walkway 100,000

Site 4.4A1YB2 (350,000)

Legal fees and disbursements related

to land sales 40,000 21,000 20,000

Closing Balance—End of Fiscal Year (Surplus) 2,614,081 1,256,081 (137,919) (137,919)


35


Halifax–Dartmouth Bridge CommissionBusiness Plan 2000

ContentsMission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38Performance in 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39Priorities for 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41Communications/Public Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43

Mission

Under provincial legislation, the mandateof the Halifax-Dartmouth BridgeCommission (HDBC) is to construct,maintain, and operate bridges and thenecessary approaches thereto acrossHalifax Harbour.

Since being incorporated in 1950, HDBChas constructed, maintained, and operatedtwo bridges across the harbour. During1999, the Macdonald and MacKay bridgescarried approximately 30 million vehicles.On a per-capita basis (population350,000), they are among the most fre-quently used toll bridges in NorthAmerica.

Strategic GoalsGoal 1Maintain the bridges and approaches intop condition through a continuous main-tenance program.

Goal 2Reduce toll plaza and bridge congestionby increasing MACPASS usage and work-ing with Halifax Regional Municipality(HRM) Traffic Services to ensure smoothtransition of traffic from bridge approach-es and toll plazas to city streets.

Goal 3Ensure the continuing financial stabilityof HDBC through sound financial planningand management.

Goal 4Ensure that public safety and employeesafety are considered in all policies, oper-ations, and initiatives of HDBC.

37

Halifax-Dartmouth Bridge Commission

“To provide safe, convenient

and reliable passage for

all our patrons.”

Core Business FunctionsFinancial Planning andManagement• Develop and implement financial plans

to support annual operating costs andcapital projects and also to ensure themost effective use of long-term borrow-ing and investment capabilities.

• Assess risk and ensure adequate andappropriate insurance coverage.

• Maintain a cohesive and effective sys-tem of internal controls.

Toll Collection and Processing • Sell tokens and transponders, and col-

lect tolls mechanically and electronicallyfor approximately 30 million vehiclesannually.

Inspection and Maintenance • Conduct ongoing monitoring and a thor-

ough annual inspection of the bridges andapproaches to identify immediate, mid-term, and long-range maintenancerequirements and incorporate theserequirements into the maintenance sched-ule and capital improvements program.

Traffic Safety and EmergencyResponse• Monitor bridge traffic and respond

quickly to incidents and accidents asrequired, thereby minimizing traffic dis-ruptions on the structures.Commissionaires and maintenance staffaccomplish this through radar speedenforcement, video monitoring, continu-ous surveillance of the bridge andapproaches, and observance of an over-all emergency response plan.

Winter Roadway Maintenance• Through the use of the roadway ice

detection system and continuousstaffing, ensure prompt attention to iceand snow removal on the bridges andapproaches. This requires a rigorouswinter maintenance schedule, sincesuspension bridges develop ice fasterthan other roadways.

Capital Improvements• Through ongoing review and analysis,

identify and implement improvementsthat will allow HDBC to better fulfil itsmandate.

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Performance in 1999Maintain bridges and approachesin top condition• Completed the Macdonald Bridge

Reconstruction and Third LaneExpansion Project under budget andahead of schedule.

• Conducted annual inspections and car-ried out regular maintenance activitiesas permitted by reconstruction project.These activities included the regularpainting program on both bridges,replacement of several expansion joints,line painting, and repairs to the deckand piers of the MacKay Bridge.

Reduce toll plaza and bridge congestion • Completed and opened the new third

lane on the Macdonald Bridge.

• Constructed and opened the BarringtonStreet access ramp for the MacdonaldBridge.

• Increased MACPASS usage from 8.7 percent of total daily transactions at theend of December 1998 to 19 per cent oftotal daily transactions in December1999. Sixty per cent of all commercialdaily transactions (Class 2,3,4 & 5 vehi-cles) are now MACPASS transactions.During peak periods, MACPASS

accounts for approximately 24 per centof all transactions.

• Designated two toll lanes on theMacdonald Bridge as “MACPASS only”lanes.

• Realigned toll lanes on MacdonaldBridge toll plaza to improve traffic flow.

• The combined effect of increased MAC-PASS usage and the opening of the newthird lane on the Macdonald Bridge hasbeen a significant reduction in toll plazaand bridge congestion. The third lane onthe Macdonald Bridge has surpassedthe expectation of HDBC and its dailycommuters.

Ensure continued financial stability• In 1997, HDBC successfully issued

$100,000,000 of Toll Revenue Bonds at5.95 per cent and arranged with theprovince a l ine of credit for$30,000,000. The Toll Revenue Bondsare secured by an assignment of therevenues of HDBC and are not guaran-teed by the Province of Nova Scotia.The Toll Revenue Bonds are rated AA(low) by Dominion Bond Rating ServiceLimited and A+ by Standard & Poor’sRatings Group. In 1999, HDBC contin-ued to meet the conditions of the bond-holder’s Trust Indenture. As budgeted,HDBC will have sufficient cash flow toensure its financial stability.

39


Ensure public safety and employee safety• Improved public safety and employee

safety through initiatives such as radarspeed enforcement on both bridges andcontinued employee training in areassuch as standard CPR, fall protection,safety for supervisors, traffic controland signage, and accident investigation.

• Installed new safety features on theMacdonald Bridge such as an ice detec-tion system and overhead variable mes-sage signs. Installed electronically con-trolled gates on the Halifax approachesof the Macdonald Bridge (North Streetand Barrington Street access ramp) torestrict traffic to one lane when operat-ing a single lane Dartmouth-bound.Installed a new emergency backup gen-erator with sufficient capacity to operatethese safety systems in the event of apower failure.

• Installed gates on all automatic (non-serviced) toll lanes at the Macdonaldand MacKay bridges. The gates reducetoll violations and also help to reducespeeds on the toll plazas, creating saferconditions for both motorists and HDBCpersonnel in the lanes.

• Reviewed and modified standard procedures for employees crossinglanes safely.

Priorities for 2000Goal 1Maintain bridges and approachesin top condition• Continue annual inspections and mainte-

nance program. The majority of mainte-nance work in 2000 will be carried out onthe MacKay Bridge and will include pierrepairs, deck repairs, expansion jointrepairs, and cable cladding at the decklevel. The Macdonald Bridge will undergoa stringer reinforcement program.

Goal 2

Reduce toll plaza and bridge congestion• Continue marketing activities aimed at

increasing MACPASS usage to 30 percent of daily traffic volume. Increase thenumber of “MACPASS only” lanes asusage permits.

Goal 3Ensure continued financial stability• Manage the financial resources of HDBC

so as to meet the obligations of thebondholder’s Trust Indenture, capitalprojects, and the annual O.M.A. budget.

• Use cash flow of approximately $9 mil-lion for capital projects and investmentaccumulation to reduce the debt.

40


Goal 4Ensure public safety and employee safety • Install new digital video recording sys-

tem on the Macdonald Bridge. This 16-camera system will provide 24-hoursurveil lance of the bridge span,approach ramp, sidewalk, and bicyclelane and allow for quick response toaccidents or incidents anywhere on the bridge.

• Install emergency call boxes on theMacdonald Bridge sidewalk and bicyclelane. The six telephones will be linkeddirectly to the Macdonald Bridge control office.

• Continue to train all full-time employeesin standard first aid.

Human ResourcesHDBC currently employs 25 full-timeadministration and maintenance staff and50 full-time Corps of Commissionairesmembers under contract. During thespring, summer, and fall, HDBC alsoemploys 10 part-time summer gardeningstaff and 35 part-time painting staff.

HDBC has a contract with the Teamsters,Chauffeurs, Warehousemen, Helpers &Miscellaneous Worker (Local 927), which

will be renegotiated in June 2000, and alsowith the International Brotherhood ofPainters & Allied Trades (Local 1439),which will be renegotiated in October 2000.

Training and development of all staff will be ongoing in 2000, with a focus onmanagement development, safety, andcustomer service and information technol-ogy skills.

Communications/Public RelationsThe Bridge Commission will be focusingon four major communications/publicrelations tasks in 2000:

• Continuing communications as requiredwith key stakeholder groups, such asthe province, HRM, bridge users(motorists, pedestrians, cyclists), bond-holders, bridge neighbours (businessand residential), and community part-ners (e.g., HRM Fire Services, HRMPolice Services, Emergency Services,Metro Transit, DND); and developing awebsite to improve stakeholder accessi-bility to information about HDBC.

• Maintaining a positive public image of the HDBC by communicating keymessages through an effective media

41


relations program and by engaging instrategic communications planning tomanage issues that may affect HDBC.

• Developing and implementing a market-ing strategy to increase the use of theMACPASS. The primary target groupwill be current token users.

• Focusing on internal communicationsinitiatives to ensure that employees atevery level are well informed aboutHDBC activities, programs, and policies.

InformationTechnologyHDBC’s in-house computer system is a17-user Compaq system, which includes:

Proliant 2500R Server (1)Deskpro 6000 5/200 (3)Deskpro 6000 5/166 (7)Deskpro 2000 P/133 (5)Wyse 55 Terminal (1)Wyse WinTerm (2)IBM ThinkPad 600IBM ThinkPad 365XD

The host computer operates on a SCOUNIX platform, and the workstations oper-ate in a Windows 95/98 NT environment.

The toll collection system—coin collectionequipment and the electronic toll collec-tion (ETC) component (MACPASS)—includes the following:

Compaq Prosignia 200—plaza servers (2)Pentium lane controllers (24)Electronic lane systems (24)

The two plaza systems connect to ourmain in-house server and download dataon a real-time basis.

The HDBC computer systems operatesoftware applications to support toll col-lection, MACPASS account servicing, sta-tistical analysis, payroll, accounting ser-vices, traffic control, weather monitoring,word processing, and desktop publishing.

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43

BudgetStatement of Income for the Years Ended December 31,

2000 Budget 1999 Estimated 1998 Actual

Revenue

Toll revenue $21,818,075 $21,530,530 $20,920,247

Other rate charges 118,075 104,975 95,000

Investment and sundry income

Capital Fund investment income 57,000 — —

Sinking Fund investment income 38,000 — —

OMA and Debt Service Funds 211,250 202,000 194,348

Other 206,000 220,000 81,647

22,448,400 22,057,505 21,291,242

Expenses

Operating, maintenance and 5,311,800 4,776,405 4,478,392administrative charges (note 3)

Amortization of capital assets 3,000,000 3,000,000 2,261,921

Interest on long term debt and 7,942,200 7,902,200 7,117,097

financing costs (note 2)

16,254,000 15,678,605 13,857,410

Income from operations 6,194,400 6,378,900 7,433,832

Other income

Non-recurring refund of prior year’s GST,

1991 to 1998 inclusive — 651,809 —

Net Income (loss) $ 6,194,400 $ 7,030,709 $ 7,433,832



44

Notes to Statement of Income for Years Ended December 31,Note 1

Accounting policy

The commission, which is a provincially controlled public sector entity, reports as a government business enterprise as defined in the Public Sector Accounting and Auditinghandbook of the Canadian Institute of Chartered Accountants. Government business enterprises are required to use generally accepted accounting principles for profit-orientedentities, which is the basis under which these financial statements are prepared.

Note 2

Interest on long-term debt and financing costs

2000 Budget 1999 Estimated Actual 1998 Actual

Interest on long-term debt $ 5,950,000 $ 5,950,000 $ 5,950,000

Interest on line of credit 1,150,000 1,110,000 324,870

Amortization of financing 842,200 842,200 842,227costs and discounts

$ 7,942,200 $ 7,902,200 $ 7,117,097


Note 3

Operating, maintenance, and administrative charges

2000 Budget 1999 Estimated Actual 1998 Actual

Salaries and full-time wages

Administration $ 420,900 $ 413,350 $ 387,361

Maintenance 538,700 532,000 499,724

Customer Service Centre 155,800 148,750 101,112

Salaries and wages, part time

Painting 475,400 471,200 392,669

Landscaping 39,800 37,650 35,643

Conferences and seminars 22,200 22,000 20,331

Office administration

Administration general 53,500 66,800 69,386

Technology service contracts 75,000 — —

Telecommunications 62,000 49,000 42,876

Other

Operations 1,204,000 1,169,250 1,178,231

Maintenance 1,288,000 936,750 757,648

Administration 846,500 831,155 917,630

Customer Service Centre 130,000 98,500 75,781

Total Charges $ 5,311,800 $ 4,776,405 $ 4,478,392

45

47


Note:

Pending resolution of a strategic develop-ment proposal with respect to the Port ofHalifax, a business plan for theHalifax–Dartmouth Port DevelopmentCommission has not been finalized.

Halifax–Dartmouth Port Development Commission

49


InNOVAcorpBusiness Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52

InNOVAcorp Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52Corporate Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52

Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53

Helping Individual Firms Bring Technologies to Market . . . . . . . . . . . . . . . . . . . . . . . .53Building New Growth Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54

Performance in 1999–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58

Financial Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58Projected Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59Projected Summary Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60

Since opening for business in 1996,InNOVAcorp has made a significant contri-bution to the rapidly growing technologysector in Nova Scotia. It now invests andmanages $15.0 million of venture capitalfunds, operates three technology incuba-tors for new and growing companies, andhas privatized non-core business unitssuch as the scientific and materials testinglabs. Total full-time staffing has decreasedfrom 120 to 78, and provincial funding hasreduced from $4.1 million to $3.2 million.

Management has successfully completedthe first stage of an organizational transi-tion plan; the transformation from aCrown corporation that provides research,development, and testing services to afull-service technology commercializationentity. The InNOVAcorp board, the tech-nology community, and the Province ofNova Scotia are ready for the next stage—the creation of an internationally recog-nized integrated, harmonized system formanaging innovation.

Management has developed a four-yearstrategy that positions InNOVAcorp asNova Scotia’s commercialization agent,investor, and manager of new and rapidly

evolving technology companies in the areaof life sciences and information technology.It includes moving the organization to anew ownership structure that would includethe Province of Nova Scotia, one or more ofits strategic partners such as DalhousieUniversity, and private-sector investors.Appropriate organizational models will beexamined to determine which best suits thestakeholders. Future provincial fundingcould be based on a contracting of servicesmodel, whereby both parties would agreeannually on the value of the economicgrowth services related to the public goodthat InNOVAcorp delivers on behalf of theGovernment of Nova Scotia.

The 2000–01 business plan outlines keysteps required to launch this strategy andcorresponding financial projections for thefiscal year 2000–01 and the subsequentthree years. The plan illustrates losses of$900,000 in the transition year and a significant increase in the corporation’snet income over the next three years. Thisincome growth will result from the development of strategic partnerships thatprovide direct access to high-growth tech-nology opportunities, fund managementfees, and returns on early investments.

51

InNOVAcorp

Introduction

The 2000–01 business plan proposes a$560,000 or 17.7 per cent reduction inprovincial funding and a reduction of$1,170,000 or 37 per cent over the four-year period covered by the strategy. Thisplan immediately reduces provincial-fund-ing dependency and allows the organizationto continue to support Nova Scotia’s eco-nomic growth and development programs.

Millennium year, 2000–01, will be the fifthfull year of InNOVAcorp’s operation. Ourdirection is focused and clear. Our team iscommitted. We welcome the opportunityto develop an improved innovation systemin Nova Scotia that links research, educa-tion, training, incubation, seed and early-stage venture financing, and private sectorentrepreneurs.

Mission

InNOVAcorp VisionInNOVAcorp is a leader in creating valuethrough technology commercialization.

Corporate ValuesWe believe in:

• Customer focus: Our customers are ournumber one priority.

• Communication: Foster open, honest,and two-way exchange of informationand ideas.

• Teamwork: Develop the spirit of cooper-ation among ourselves and with ourpartners.

• Recognition: Appreciate each other’scommitment, enthusiasm, and achieve-ment.

• Integrity: We earn the respect and trustof each other and our customers.

• Personal development: Our people areour greatest asset.

52


To build relationships that

enable technology-based Nova Scotia

firms to compete successfully for

business anywhere in the world.

• Accountability: We uphold our valuesand take responsibility for our choicesand actions.

Strategic GoalsGoal 1Achieve business development via relationships.

Goal 2Build a financially viable organization.

Goal 3Achieve competence in technology commercialization and a reputation forexcellence.

Core BusinessFunctionsInNOVAcorp’s core business function istechnology commercialization. We definetechnology commercialization as addingbusiness expertise to promising ideas,seeing technological concepts through tocommercial success.

Our technology commercialization processworks on two levels:

1. Helping individual firms bring their tech-nologies to commercial markets.

2. Building new growth sectors.

Helping Individual Firms BringTechnologies to Market

InNOVAcorp’s experienced relationshipmanagers assist clients in identifying theirspecific needs. Based on the customer’sunique needs, a customized commercial-ization service package is developed.

Major elements in InNOVAcorp’s commer-cialization process include

• Equity InvestmentInNOVAcorp invests in qualified NovaScotian companies requiring early-stagefinancing. Investment can be made atstart-up or at any point through to first-stage expansion.

• Business IncubationInNOVAcorp offers business incubationservices and facilities to emerging com-panies, allowing them to reach maturitymore quickly and more successfullythan would otherwise be possible.

• Business Development Services InNOVAcorp offers business coun-selling, business planning support, as well as access to an extensive network of affi l iates and business contacts, library and database sourcesto identify industry trends, scientificbreakthroughs, competitive analysis,technical data, and trademark andpatent information, customized to specific needs.

53

InNOVAcorp

Building New Growth Sectors

InNOVAcorp is dedicated to supportingtechnology entrepreneurs and growingknowledge-based industry sectors in NovaScotia, with a focus on life sciences andinformation technology. Industry sectordevelopment functions include

• developing networks, alliances, jointventures, and relationships to supportindustry sector development

• forming teams with public and private-sector participation to pursue businessopportunities for Nova Scotian compa-nies

• building relationships with the objectiveof establishing an investment andfinancing infrastructure tailored to theneeds of technology-based businesses

• collaborating with partners to imple-ment and manage projects that help tocreate new wealth and jobs in NovaScotia and create new opportunities forNova Scotian companies

Performance in1999–2000InNOVAcorp has achieved many signifi-cant objectives and milestones in the1999–2000 business year.

• We expanded the Board of Directorsfrom 2 to 10 individuals, each veryprominent in Nova Scotia and fully com-mitted to InNOVAcorp and its ideals tosignificantly grow the knowledge-basedeconomy in Nova Scotia.

• We established InNOVAcorp as the mostactive venture capital fund in theprovince with six new investments inthe current business year totaling $2.25million of direct investment, including:

– a software development companywith a breakthrough technology in the area of e-mail distribution andmanagement, focused on the smallbusiness and home-office market

– an electronic commerce firm with aproprietary application for the elec-tronic delivery of software via theInternet, focused on the educationalmarket

– a life sciences company with patentedtechnology for extending the shelf lifeof a range of organic materials,focused on the wholesale grocerymarket.

– a Cape Breton multimedia houseengaged in the production of originalanimated content for worldwide dis-tribution in the 7–12 demographic.

– a telecommunications companyfocused on Internet call managementin Western Europe and Asia

54


– a wireless communications companyfocused on developing new point-of-sale applications for a range of retailsectors

• We have made a total of 20 investmentsover the past three years with a project-ed average ROI of 20 per cent.

• We assisted biotech, medical device, andhealth-related information technologycompanies in attracting over $40 millionin new capital investments and creating200 high-value jobs.

• We confirmed key partners for thedevelopment of a private-sector busi-ness alliance of business leaders to pro-mote and grow Atlantic Canada’s infor-mation technology industry capabilitiesand international markets.

• We partnered with National ResearchCouncil, the University College of CapeBreton, and leaders in the Cape Bretoncommunity to develop a proposal for anew information technology lab to meetthe needs of the growing informationtechnology sector in Cape Breton andother parts of Atlantic Canada.

• We formed a business partnership witha Nova Scotian advanced materialsmanufacturer to develop thermal spraycapability in Nova Scotia.

• We established a strategic venture capi-tal alliance with TARA to expand accessto early-stage financing to Nova Scotiatechnology entrepreneurs.

• We partnered with the InformationTechnology Alliance of Canada (ITAC)and the Information Technology IndustryAlliance of Nova Scotia (ITANS) to hostthe next Atlantic region Softworld confer-ence in Halifax in October 2000.

• We incubated 65 resident companiesand affi l iates at our four sites inDartmouth, Truro, and Halifax.

• We graduated two companies from ourTechnology Innovation Centre, sevencompanies expanded, and a total of 49new employees were hired.

• We launched the Bioscience EnterpriseCentre, a world-class business incubator,showcasing 40 technology companies.

• We assisted 10 companies in obtainingISO 9000 registration.

• We provided technical, market, andcompetitive information to over 1,000client inquiries.

• We assisted over 50 companies withproduct development, environmentalsimulation testing, materials testing,and forensic services and provided cus-tom-engineered industrial products tothe global marketplace.

• We privatized our scientific laboratoriesfor chemistry, microbiology, and materi-als testing.

• We recertified our ISO registration, thefirst Crown corporation in Atlantic

55

InNOVAcorp

Canada to successfully achieve this des-ignation.

Priorities for 2000–01Goal 1Achieve business development via relationships.• Create a relationship with Dalhousie

University to become its technologycommercialization partner.

• Work with partners to create a centre formicrobial and comparative genomics, a medical-imaging centre, and an evidence-based medicine initiative.

• Establish a province-wide mentoringnetwork to enhance its commercializa-tion products and services.

Goal 2Build a financially viable organization.• Work aggressively, with private-sector

partners, to market a new technologyventure capital fund to technology-ori-ented investors and secure theseed/early-stage fund for the province.

• Ensure accountability, value for money,and an equitable long-term businessrelationship between InNOVAcorp andthe provincial government that satisfiesthe client’s needs and provides a fairreturn on investment to InNOVAcorp.

• Implement an orderly departure from itsremaining non-core activities, such asadvanced materials engineering andtotal quality services program.

Goal 3Achieve competence in technologycommercialization and a reputa-tion for excellence.• Expand and improve InNOVAcorp’s tech-

nology infrastructure by developing apowerful and content-rich intranet andintegrated virtual delivery platform toassist in delivering services to its technol-ogy clients in Nova Scotia and elsewhere.

• Develop a marketing strategy thatbrands the InNOVAcorp name andimage and is based on differentiatingthe company and its Nova Scotia tech-nology products, services, partners, andits position as a key driver in the eco-nomic growth of the Province.

• Consolidate the management andadministration of its incubators into oneintegrated profit centre division, anddesign creative alternative sources ofpayment for its services.

• Strengthen its linkages and focus onnew IT-related commercialization oppor-tunities, such as e-commerce, distancelearning, and new media.

56


OutcomesAll actions carried out at InNOVAcorp willbe judged against its ability to contributegrowth of $1.5 billion in new exports overthe next five years and the net income ofInNOVAcorp.

InNOVAcorp will achieve the following out-comes in 2000–01:

• Approve eight new equity investmentsin Nova Scotian companies.

• Partner to establish and manage a tech-nology-oriented venture fund.

• Reinforce the InNOVAcorp investmentstrategy to achieve an ROI of greaterthan 15 per cent.

• Partner with Dalhousie University tobecome its technology commercializa-tion partner.

• Develop and launch a province-widementoring network.

• Establish a genomics centre.

• Host Softworld 2000

• Establish the Cape Breton IT InnovationCentre.

• Deliver uniquely tailored strategic infor-mation services to 30 select clients with-in the incubation/investment portfolio.

• Deliver technology development ser-vices to 75 client companies throughthe Industrial Research AssistanceProgram.

• Confirm business case for virtual busi-ness incubation service delivery.

• Establish the InNOVAcorp “brand” in lifesciences and information technology.

• Complete the LSIP growth strategy ofachieving $100 million in exports,attracting $97 million in new capitalinvestments, and creating 540 high-value jobs.

57

InNOVAcorp


58

Financial Summary

1999–2000 2000–01 2001–02 2002–03 2003–04

Revenues

NS funding/services 3,170,000 2,610,000 2,610,000 2,305,000 2,000,000

Contracted services 1,330,000 2,550,000 3,050,000 2,800,000 2,550,000

Operating revenue 1,230,000 1,390,000 2,450,000 3,150,000 4,525,000

Venture Fund –175,000 –800,000 1,075,000 1,500,000 2,000,000

Total Revenues 5,555,000 5,750,000 9,185,000 9,755,000 11,075,000

Expenses

Operating expenses 2,865,000 4,725,000 6,375,000 6,540,000 6,920,000

Corporate expenses 2,160,000 1,795,000 1,795,000 1,795,000 1,795,000

Amortization 580,000 580,000 580,000 580,000 580,000

Total Expenses 5,605,000 7,100,000 8,750,000 8,915,000 9,295,000

Operating Income –50,000 –1,350,000 435,000 840,000 1,780,000

Restructuring costs, net costs –170,000 –1,050,000 –50,000 –50,000 –50,000

Gain on debt forgiveness 1,450,000

Discontinued operations, net 105,000 50,000 510,000 10,000 10,000

–65,000 450,000 460,000 –40,000 –40,000

Net Income –115,000 –900,000 895,000 800,000 1,740,000

Financials

59

Projected Cash Flows1999–2000 to 2003–04

1999–2000 2000–01 2001–02 2002–03 2003–04

Net income –115,000 –900,000 895,000 800,000 1,740,000

Add back non-cash items 755,000 –70,000 1,180,000 1,180,000 1,180,000

Deduct non–operating items –400,000 –170,000 –1,975,000 –2,350,000 –2,975,000

Cash generated/(used)

by operations 240,000 –1,140,000 100,000 –370,000 –55,000

Capital investment, net –150,000 –580,000 –580,000 –580,000 –580,000

Financing activities –60,000 –20,000 –20,000 –20,000 –20,000

Increase/(decrease) in cash 30,000 –1,740,000 –500,000 –970,000 –655,000

Beginning working capital 650,000 680,000 700,000 700,000 700,000

Ending working capital 680,000 –1,060,000 200,000 –270,000 45,000

Working capital financing required 1,760,000 500,000 970,000 655,000

InNOVAcorp


60

Projected Summary BalanceFor years ending March 31 1999–2000 to March 31, 2003–04

1999–2000 2000–01 2001–02 2002–03 2003–04

Assets

Working capital 680,000 700,000 700,000 700,000 700,000

Investments and funds 13,750,000 11,360,000 12,235,000 13,015,000 14,735,000

Capital assets, net 6,860,000 6,860,000 6,860,000 6,860,000 6,860,000

Total assets 21,290,000 18,920,000 19,795,000 20,575,000 22,295,000

Equities

Long-term debt 1,570,000 100,000 80,000 60,000 40,000

Deferred government assistance 650,000 650,000 650,000 650,000 650,000

Share capital and contributed

surplus 19,320,000 19,320,000 19,320,000 19,320,000 19,320,000

Retained earnings –250,000 –1,150,000 –255,000 545,000 2,285,000

21,290,000 18,920,000 19,795,000 20,575,000 22,295,000

61


Novaco LimitedDissolution of Novaco Ltd., 2000–01

The provincial Crown corporation NovacoLimited was established by the NovaScotia Department of Mines (now part ofthe Nova Scotia Department of NaturalResources) in 1970 to assist the provincein the development of an appropriate coalmining industry for Nova Scotia. Withtime, Novaco’s direct involvement withmining in Nova Scotia has lessened assurface coal mining activities by the pri-vate sector have replaced Novaco’s pro-grams of the late 1970s and the 1980s.The corporation has been essentially inac-tive since 1993.

In February 2000, Executive Councilaccepted a proposal from the Departmentof Natural Resources to dissolve the cor-poration, invest the assets in a specialtrust fund under the Provincial FinanceAct, and use the proceeds to carry out along-term project to cap and/or fill aban-doned mine openings on Crown land,

thereby addressing a serious matter ofpublic safety and potential liability to theprovince. The residual assets are presentlyinvested in short-term financial instru-ments that will mature in May 2000. Atthat time, they will be transferred to a spe-cial trust fund, and the corporation will bedissolved.

63


The Nova Scotia Arts CouncilBusiness Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66Core Business Functions and Performance in 1999–2000 . . . . . . . . . . . . . . . . . . . . . . . . .66

Funding Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66Addditional Services to the Cultural Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68Staff Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68Nominating Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68Involvement in Other Culture-Related Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69Nova Scotia Arts Endowment Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69

Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72

The Nova Scotia Arts Council/Conseil desarts de la Nouvelle-Écosse was formed byan act of legislation in January 1996. Thecreation of the Nova Scotia Arts Councilfollowed 20 years of community action tohave an arm’s-length agency that usedpeer review to determine fundingapprovals. The first members of the coun-cil were appointed on May 1 of that yearand met together for the first time inAugust 1996. The remainder of the firstyear (1996–97) was spent in discussingand determining mission, vision, a gover-nance model, and guiding principles, poli-cies, and programs. The recommenda-tions of the Steering Committee werereviewed, and the council studied thosegovernment policies that would affect theArts Council. A search was conducted forsuitable office space, staff job descriptionswere circulated, interviews conducted, andthe process of hiring staff was begun.

The council became fully operational in itssecond year (1997–98), at which timemost of the operating grants to profes-sional arts organizations were transferredfrom the Cultural Affairs Division of theDepartment of Education and Culture to

the council. With the addition of newmonies from the province, grants weremade available to individual professionalartists for the first time. The prestigiousprovincial Portia White Prize wasannounced and awarded, and a NovaScotia Arts Endowment Fund was estab-lished. The council governance manualwas completed and distributed.

Over the next two years financial partner-ships with MTT and the J. W. McConnellFamily Foundation of Montreal resulted inadditional funding for professional artists.A program officer was hired specifically todevelop the areas of arts education andcommunity arts.

The current year (1999–2000) has seen anumber of new initiatives, which aredescribed below.

65

Introduction

Nova Scotia Arts Council

Mission

Strategic Goals (based on the objectives outlined in theact of legislation)

Goal 1To make the arts integral to the lives of allNova Scotians.

Goal 2To foster excellence throughout theprovince.

Goal 3To encourage creative expression by fund-ing activity in the arts.

Goal 4To utilize peer assessment in the determi-nation of artistic merit and the allocationof funding.

Goal 5To educate the public regarding the cultural,social, and economic importance of thearts.

Goal 6To strive for regional, cultural, and devel-opmental equity in the distribution offunding.

Goal 7To carry out research on matters related tothe arts.

Goal 8To establish and administer the NovaScotia Arts Endowment Fund.

Core BusinessFunctions andPerformance in1999–2000

Funding ProgramsThe NSAC funding programs are designedto interact with the various stages ofdevelopment of artists and arts organiza-tions. They respond to creative ideas andprojects, including professional develop-ment of the field.

66


The Nova Scotia Arts Council/Conseil

des arts de la Nouvelle-Écosse is dedi-

cated to making Nova Scotia a place

where artists’ voices are heard

and the arts will thrive.

Grants to Individuals are awarded in theareas of professional development,research, travel, creation, and presentation.

Project Grants to Organizations and SmallGroups are awarded in the areas of pro-duction/presentation, touring, commis-sioning, and professional development.

Operating Grants to Organizations are awarded to offer assistance to theongoing programs of professional artsorganizations.

The Portia White Prize, a provincial prize,is awarded annually to recognize the cul-tural and artistic excellence of a NovaScotian artist who has attained interna-tional professional status and recognition.With a monetary award in the amount of$25,000, it is the most significant prize forculture in Nova Scotia, and among themost prestigious prizes awarded inCanada. Announcement of the recipient ismade in February (or March) of each year.The 1998 recipient was Dr. George ElliottClarke, a distinguished Nova Scotian poet,essayist, and exponent of Black culture. In1999 the prize was awarded to (the late)Georg Tintner, an internationallyacclaimed conductor and ConductorLaureate of Symphony Nova Scotia.

MTT New Media Awards were initiated in1998–99, with funding assured from MTT,to stimulate and recognize projects in newmedia production.

Arts inFusion, a three-year research pro-ject focused on learning through the artsin all subject areas of the curriculum andfunded in part by a grant from the J.W.McConnell Family Foundation, is now inits second year.

In the fall of 1997, NSAC was invited tosubmit a proposal for the nationalArtsSmarts initiative of the McConnellFamily Foundation. The resulting program,Arts inFusion, was developed and plannedin partnership with the Department ofEducation’s English Program Services andthe Cultural Affairs Section of theDepartment of Tourism and Culture and isadministered by NSAC. The results of thefirst year of the program (1998–99) havebeen evaluated by third party assessorsselected by the Department of Education;their report has been reviewed by the ArtsinFusion Advisory Committee. In thespring, a selection committee named nineartists to be added to an existing pool ofprofessional artists who work with theschools in this program, bringing to 26the total number of artists in the pool.

67


During 1998–99, grants were awarded inall funding categories, for all areas of thearts, and to artists and arts organizationsin all parts of the province.

Note: All grants and awards are deter-mined through a peer assessmentprocess.

Additional Services to theCultural CommunityProgram officers regularly visit all parts ofthe province and are available for individ-ual conference by phone or in person.Seminars and workshops, led by individu-als with expertise in the specific areas tobe explored, are offered for operatinggrant clients as well as for other grantapplicants and recipients. This year thestaff organized grant preparation clinics inseveral areas of the province.

A one-day Arts inFusion Conference, heldin October, brought together the schoolsand artists involved in the second year ofthe program to discuss future arts integra-tion projects.

Staff RelationsJob descriptions for all staff membershave been reviewed, all present contractshave been finalized, and an evaluation

process is under way. A manual for per-sonnel administration defining employeestatus has been developed, legally vetted,and approved by council and staff.

Nominating CommitteeThe term of the first-named NominatingCommittee for appointments to the coun-cil expired in August. In accordance withthe act of legislation, the council submit-ted names to the Minister of Tourism andCulture to be considered for the jointlyappointed members of the NominatingCommittee.

CommunicationsCommunication remains a priority area forthe council. To that end brochures contin-ue to be developed, a formal annual reportis published, and the Arts Council’s bian-nual Newsletters are widely distributed. Acouncil website has been designed and isscheduled to be available on-line inDecember.

Press release notices of deadlines,awards, prizes, and special events are reg-ularly made available.

Arts Council staff continue to meet period-ically with their Cultural Affairs staff coun-terparts to discuss areas of overlapping,

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or shared, responsibility. Both share theresults of granting decisions. The LiaisonCommittee, which is the only permanentcommittee of the council, now bringstogether the Chair and Executive Directorof the Arts Council, the Executive Directorof the Heritage and Culture Division, andthe Director of the Cultural Affairs Sectionof the Department of Tourism and Culture.The intent is to assure ongoing communi-cation and discussion between the counciland Cultural Affairs on matters of mutualinterest and concern.

The council has initiated a series of openmeetings to be held across the provincewith interested members of the culturalcommunity. This is in advance of thereview process the council had deter-mined should take place after the thirdyear of operation. Thus far, meetings havebeen held in Halifax and in Cape Breton,18 additional meetings are scheduled forthe spring, to be held in venues across theprovince. All meetings will be conductedby members of the council.

Involvement in Other Culture-Related ActivitiesTo realize the council’s objectives relatingto research and knowledge of matters

affecting the arts, staff and members ofthe Arts Council are active participants inseveral endeavours relating to arts andculture. These include the Cultural SectorStrategy Committee and Conference, theFoundation for Heritage and ArtsStabilization and Enhancement (FHASE),the 1999 Cape Breton CulturalSymposium, the National Symposium onArts Education, provincial and nationalconferences, forums and meetings, peerassessor or advisory roles for variousprovincial and federal agencies and otherarts councils, and membership on nationaland provincial boards. The Chair of NSAChas been invited to sit as an ad hoc mem-ber on the board of the Cultural Network.

In April 1999 NSAC hosted and chaired, inHalifax, a meeting of chairs and directorsof all of the provincial and territorial artscouncils and the Canada Council.

Nova Scotia Arts Endowment FundManagement and growth of theEndowment Fund is a council responsibili-ty. Trustees remain the same: Jim Gogan,Past President and CEO, Empire CompanyLimited, Stellarton; Irving Schwartz,President, Schwartz and Company

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Limited, Sydney; Glenn Squires, CEO,Pacrim Development, Halifax. The councilcontinues to proceed cautiously withfundraising initiatives for the EndowmentFund. Care is taken to neither jeopardizenor infringe upon funding for other cultur-al organizations in Nova Scotia. On theadvice of the trustees, the council hasagreed that, to enable the fund to grow, nomonies will be taken from the interest orcapital gained until an initial goal of onemillion dollars is reached. As an act ofgood faith, all members of the councilhave personally contributed to the fund.

Priorities for 2000–01• Hold open meetings across the province

with representatives of various geo-graphic, ethnic, and cultural communi-ties to solicit feedback on how the coun-cil is fulfilling its mandate. The 18meetings scheduled from March to Junewill all be directed by members of coun-cil, largely at their own expense.

• Conduct a review of policies and prac-tices of the Arts Council.

• Review NSAC programs in light ofreduced government funding.

• Develop a strategic plan to follow onfrom the initial three-year plan submit-ted in the council’s first operational year.

• Continue communication through suchmeans as a newsletter, the web site, andtimely press releases and by respondingto invitations for news and comment inthe publications of other organizations.

• Continue provincial visits, clinics, andworkshops directed by staff in so far aspossible.

• Continue discussions with CulturalAffairs to ensure that all of the culturalcommunity is being served through ourcombined programs.

• Explore potential partnerships with otherorganizations in developing networkingstrategies to facilitate the distribution ofinformation regarding funding opportu-nities and matters affecting the arts.

• Seek additional partnerships that wouldincrease specific project funding for professional artists and arts organi-zations.

• Explore additional and continued part-nerships in the area of arts education.

• Increase the capital of the Nova ScotiaArts Endowment Fund through fundingand investment strategies.

• Negotiate second-term staff contracts.

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71

Members

Douglas Arthur Brown, Marion Bridge

Shelley Fashan, Lake Echo

François Gaudet, Weymouth

Leah Hamilton, Halifax

Sheilagh Hunt, Halifax

Mern O’Brien, Halifax

Ellison Robertson, Sydney

Carol Sincliar, Guysborough

Susan Tileston, Granville

Marianne Ward, Dartmouth

• Actively encourage those with an inter-est in the cultural community to apply tothe Secretary of the Executive Councilfor consideration for nomination to thecouncil.

Human ResourcesStaff of the Nova Scotia Arts Council

Executive Director: Russell Kelley

Program Officer, Grants to Individuals:Peter Kirby

Program Officer, Grants to Organizationsand Small Groups: Pat Kipping

Arts Education/Community Liaison Officer:Darcy Rhyno

Office Manager/Bookkeeper:Margaret Hoyle

Secretary/Receptionist: Amanda Christie

Members of CouncilChair Ninette Babineau, Halifax

Vice-Chair Christopher King, Baddeck

Secretary Gay Hauser, Halifax



Actual Actual Budgeted Projected1997–98 1998–99 1999–00 2000–01

Revenue

Grant revenue from province 1,300,000 1,500,000 1,476,000 1,254,600

Sponsorships 1,589 132,411 118,600 111,000

Earned interest: operating 12,109 19,866 22,000 17,000

Deferred revenue 70,550 52,557 79,650 42,000

Total Revenue 1,384,248 1,704,834 1,696,250 1,424,600

Expenses

Grants to Individuals Programs 385,154 448,447 446,000 380,000

Grants to Organizations Programs 539,900 615,000 615,000 522,000

Other grants, prizes & awards 45,499 140,000 149,109 115,000

Grants Subtotal 970,553 1,203,447 1,210,109 1,017,000

Program Delivery 62,166 148,140 139,842 137,967

Assessment costs—juries 32,404 34,400 34,290 26,700

Program Delivery Subtotal 94,570 182,540 174,132 164,667

Administration

Salaries & benefits 75,735 101,257 116,280 116,280

Board costs 21,963 17,652 20,600 12,600

Rent, Supplies, services, etc. 168,870 120,288 133,129 114,053

Administration Subtotal 266,568 239,197 270,009 242,933

Total Expenses 1,331,691 1,625,184 1,654,250 1,424,600

Surplus(deficit) 52,557 79,650 42,000 —

Nova Scotia Arts Endowment Fund

Opening balance $575,168 $633,772 $675,547 $795,547

Additions 58,604 41,775 120,000 61,000

Closing Balance March 31 $ 633,772 $ 675,547 $ 795,547 $ 856,547

72

Budget

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Nova Scotia Beef Commission

Business Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76Performance in 1999–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77Outcomes and Outcome Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77

Note:

The Nova Scotia Beef Commission held itslast meeting on October 9, 1997. With thereorganization of the Nova ScotiaDepartment of Agriculture and Marketing,the commission’s responsibilities for com-munity pastures, beef test station, andrecord of performance have been trans-ferred to the Production TechnologyBranch of the department, and there areplans to dissolve the commission.

IntroductionThe Nova Scotia Beef Commission operatesunder the auspices of the Nova ScotiaDepartment of Agriculture and Marketing. Itwas established by the Beef CommissionAct on August 1, 1990 and is concernedsolely with expanding and developing thebeef industry in Nova Scotia.

The Nova Scotia beef industry accounts forapproximately 11 per cent of the total farmcash receipts in Nova Scotia and has avalue of $29–36 million per year, dependingon the level of prices received. Withapproximately 2,000 beef producers, thebeef sector has the largest number of pro-ducers of any commodity in the province.

Mission

Strategic GoalsIn conjunction with farm organizationsand the Production Technology Branch ofthe Nova Scotia Department of Agricultureand Marketing:

Goal 1Develop an analysis of the beef industry inNova Scotia, determine the developmentopportunities for the industry, and developa strategy to help the industry achieve itsfull potential.

Goal 2Provide an ongoing review of all programsoffered by the Nova Scotia Department ofAgriculture and Marketing and other agencies affecting the beef industry inNova Scotia, and recommend meanswhereby programs may be better allocatedto meet the objectives defined in the beefdevelopment strategy.

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To encourage and promote the

development of the

Nova Scotia beef industry.

Goal 3Assist the Nova Scotia Cattlemen’sAssociation in revitalizing and strengthen-ing the organization to better serve theNova Scotia beef industry.

Core BusinessFunctions• Advises and makes recommendations

to the Minister on

– the allocation of resources to the beefindustry

– the development and administrationof policies and programs for the beefindustry.

• Carries out such functions to supportthe development of the beef industry asassigned by the Minister or prescribedby regulation.

• Carries out specific projects designed toaddress industry problems and futuredevelopment.

Performance in1999–2000The future work of the commission will bedependent to an extent on the recommen-dations made by the Ministerial Task Force.

Staff of the department/commission willcontinue to:

• Evaluate the effectiveness of the BeefCommission’s structure and explorealternative methods to enhance the beefindustry.

• Provide managerial and support servicesto the Nova Scotia Beef Commission byarranging regular meetings, preparingmeetings, preparing minutes, coordinat-ing the operational aspects of the commission’s mandate and acting assecretary of the commission.

• Continue to explore new and improvedmarketing opportunities for the beefindustry and continue to produce a feedersale price summary on an annual basis.

Priorities for 2000–011. Recommend that the Beef Commission

be dissolved, since the responsibilitiesfor community pastures, beef test sta-tion, and record of performance arenow managed by the ProductionTechnology Branch.

2. Consult with the Cattlemen’s Associationand the Nova Scotia Federation ofAgriculture are a part of the process forthe above recommendation.

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BudgetWith the reorganization of the Nova ScotiaDepartment of Agriculture and Marketing,the Beef Commission budget has beenreduced to $17,500, with some of thecommission’s budget responsibilitiesbeing transferred over to the newProduction Technology Branch for the1999–2000 budget.

The Beef Commission office has beenrelocated from the Dairy Building, NovaScotia Agricultural College Campus, to theHarlow Institute building. The responsibili-ty for the new Beef Commission office hasbeen assigned to the ProductionTechnology Branch, Nova ScotiaDepartment of Agriculture and Marketing.

Human ResourcesThe Beef Commission consists of a five-member board appointed by the Governor-in-Council. Members are selected to repre-sent the various sectors of the beefindustry.

The terms for four board members expiredin the fall of 1997 and to date they havenot been replaced.

The staff of the Livestock Section,Production Technology Branch arepresently looking after the operationalaspects and mandate of the commission.Some work is also done through the useof casual employees.

Much of the work of the commission isaccomplished in cooperation with otherbranches of the Nova Scotia Departmentof Agriculture and Marketing, Agricultureand Agri-Food Canada staff, producerorganizations, and commodity groups.

Regular meetings of the commission areheld as budget funding permits.

Outcomes andOutcome MeasuresIndustry growth and development will beassessed on an ongoing basis by trackingbeef cattle numbers, sector cash farmincome, number of farms, average herdsize, market numbers, and prices.

Specific projects will be assessed on anindividual basis.

Client satisfaction will be assessed on anongoing basis.

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79


Nova Scotia Business Development CorporationBusiness Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82Performance in 1999–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82Funding Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84

Capital Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84Operating Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86

As at March 31, 1999, the Nova ScotiaBusiness Development Corporation(NSBDC) administered a portfolio of morethan 700 accounts having a value of $254million, comprising loans, shares, guaran-tees, other assets, and industrial parks. Inaddition, the NSBDC administers on behalfof Executive Council the IndustrialExpansion Fund (IEF), with a portfolio ofloans, shares, guarantees, and otherassets with a value of $303 mill ion.Detailed information on the corporation’sactivities is contained in the annual report,which is tabled in the Legislature.

The corporation is directed by a 12-mem-ber Board of Directors from the NovaScotia business community who con-tribute their advice and direction to thedecision-making process.

The NSBDC has a staff complement of 22situated in three locations in Nova Scotia:the Halifax head office and Sydney andTruro regional offices.

The NSBDC often takes a lead role in thestructuring of financial packages toencourage business development for newor expanding companies. The arrange-

ments consist of loans or other financialinstruments, investor equity, funding fromother government agencies, and private-sector financing. Historically, 90 per centof the corporation’s activity has beendirected to the manufacturing and pro-cessing sector outside the MetropolitanHalifax area.

The corporation plays a major role inensuring that there is a source of financingwithin the province for start-up business,specialized manufacturing industries, busi-nesses in rural Nova Scotia, and companiesrequiring temporary financial restructuring.Due to the higher risk associated with thesetypes of business, normal commercialfinancing is most often not available. The NSBDC fills this need.

The corporation also serves as a source ofbusiness and financial advice and exper-tise to the Department of EconomicDevelopment and other governmentdepartments.

81

Nova Scotia Business Development Corporation

Introduction

82


Priorities for 2000–011. Stimulate job creation and the

economy throughout Nova Scotia.The Business Development Corporationcontinues to successfully accomplish itsmandate of promoting business growthand resulting employment opportunitiesthrough the provision of appropriatefinancial assistance. The corporationhas enjoyed many successes, and itsfailures have been within acceptablelimits considering the risk profile of theportfolio. We will continue to pursuecurrent policies and practices to carryforward our success.

Based on a detailed analysis of the port-folio the following results have beenachieved:

– NSBDC assistance supports 10,000direct and 17,700 indirect jobs inNova Scotia.

– One in five manufacturing jobs is sup-ported by NSBDC financing.

– NSBDC-assisted companies haveannual sales of $1.3 billion and payemployee wages of over $220 million.

– The operations of the businessessupported by NSBDC result in anadditional $50 million in revenue tothe province annually. After all costsare deducted relating to the opera-

Mission

Performance in1999–2000During the year ended March 31, 1999,the NSBDC approved 51 projects aggre-gating $55.4 million. The companiesassisted employ 2,100 Nova Scotians, pay$47 million annually in wages, and havesales over $200 million. Eighty-nine percent of this assistance was provided out-side Halifax County. The primary sectorsassisted were food processing (45 percent), wood and paper products (29 percent), and metal fabrication (12 per cent).

Year Ending March 31, 2000During the 1999–2000 fiscal year, toFebruary 28, 2000, the corporation hadapproved 39 transactions aggregating$13.2 million.

To encourage business development

and employment opportunities

in the Province by providing

financial and other assistance

4. Develop policy and guidelinesfor providing financial assis-tance to growing sectors of theeconomy such as informationtechnology, life sciences, andadvanced manufacturing.

The corporation was founded during, andits policies reflect, a traditional manufac-turing economy. As the knowledge-basedeconomy expands in Nova Scotia, it isbecoming clear that the corporation mustclarify its role in relation to these newfirms. These firms often have no trackrecord, have little security to offer, andgenerally are more capital intensive thantraditional industries. The question to beaddressed is the risk profile the corpora-tion can assume and still maintain a pru-dent position with taxpayers’ money.

5. Search for new partnershipopportunities with other gov-ernment agencies and the pri-vate sector

On a number of occasions, the corpora-tion has formed strategic alliances withother departments and corporations toseize an opportunity that will result insignificant job creation. We will contin-ue to work with the Investment andTrade Division to attract new businessto Nova Scotia. We will work with theDepartment of Fisheries andAquaculture on aquaculture projectsand maintain our relationship with the

83

tions of the portfolio, the annualreturn to the province is approximate-ly $35 million.

– Fewer than 1 per cent of NSBDCclients would have received financingfrom commercial lenders at the timethe initial loan was made.

2. Continue with our policy ofdeclining financial assistanceto fund any new business thatwill compete directly with an existing Nova Scotia-basedbusiness.

This policy has been in place since theinception of the corporation and hasproven to be effective in ensuring thatassistance is for the net economic bene-fit of the province.

3. Continue to work with RegionalDevelopment Authorities andothers to market the sale andlease of industrial parks andmalls to new and expandingindustries.

The availability of industrial landthroughout the province for immediateoccupancy by business plays a key rolein providing Nova Scotians with theopportunity to find employment in ruralparts of the province.


Sable Offshore Energy Project andInNOVAcorp. As specified in our man-date, we will continue to provide asource of financing to clients of theDepartment of Tourism and Culture. Ourstaff have contributed their energy andexpertise to these joint ventures, whichhave resulted in significant job creation.

Funding Estimates

Capital EstimatesThe amount of financial assistance provid-ed to industry in Nova Scotia in any oneyear varies with the opportunities present-ed and needs identified. Therefore, it isdifficult to specifically target capitalrequirements. However, based on past his-tory and specific projects under reviewand evaluation, an estimate of fundingrequirement can be determined. Normally,the Business Development Corporationhas advanced between $25 million and$30 million per year and has receivedrepayments in the $13–18 million range,although significant variations haveoccurred.

Advances in any particular year may sig-nificantly exceed repayments, as funds areadvanced in their entirety to fund projects,and principal repayments on theseadvances are received over a period of10–15 years.

84



Statutory capital advance estimates and forecasts are outlined below:

Advances

1999–2000 Estimate 1999–2000 Forecast 2000–01 Estimate(millions) (millions) (millions)

Business Development Corporation Fund $55.0 33.7 36.0

Industrial Expansion Fund 30.0 13.0 17.5

Total 85.0 46.7 53.5

Repayments

Business Development Corporation Fund $16.0 17.0 16.0

Industrial Expansion Fund 2.0 0.75 2.0

Total 18.0 17.75 18.0

The BDC estimate is based on the anticipated cashflows associated with $35 million of outstanding commitments from previous years and an additional $20 million for newadvances.

The Industrial Expansion Fund estimate is based on the anticipated cashflows associatedwith $12 million of outstanding commitments (does not include possible $30 million forHalifax Bridge Commission) and an additional $10 million for projects yet to be determined.

85


86

Operating EstimatesThe administration and operations budget of the corporation is provided by theDepartment of Economic Development. Estimated operating budget for 2000–01 is $1.360 million. This budget should be sufficient to provide for the operations of the corporation.

The information on the Business Development Corporation budget is presented below.

Estimate 1999–2000 Forecast 1999–2000 Estimate 2000–01

Administration 159,000 152,000 159,000

Operations 1,410,000 934,000 1,201,000

Total 1,569,000 1,086,000 1,360,000

The forecast for 1999–2000 operations is significantly below estimate because of approximately $500,000 of one-time cost recoveries.


Nova Scotia Crop and Livestock Insurance CommissionBusiness Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94

87

The Nova Scotia Crop InsuranceCommission was established in 1968 andreports directly to the Minister ofAgriculture and Marketing. It providesNova Scotia farmers with insurance plansthat will allow them to manage the finan-cial risk associated with reduced yieldsdue to unmanageable natural perils. TheNova Scotia Crop Insurance Act wasamended in 1978 to provide for theadministration of the Livestock InsuranceProgram and is now cited as the Crop andLivestock Insurance Act.

Crop insurance is a vital component in thecreation of an environment that encourageseconomic development through productionof agricultural crops and is one of the coreprograms in National Safety NetProgramming for agriculture. Under theCanada–Nova Scotia Crop Insurance

Agreement, crop insurance programs arecost-shared with the federal government.Yield and premium rate methodologies areactuarially tested and audited. Fifty per centof the premiums are paid by the insuredproducer, with the federal and provincialgovernments each contributing 25 per cent.Program administration is cost-sharedequally by the two levels of government.Livestock insurance programs are adminis-tered solely by the province with producerspaying 100 per cent of premiums.

The commission delivers its servicesprovince-wide to 760 farm businesseswith a FTE staff of 10.5 centred in Truroand Kentville. The high-level budget allot-ments for the commission are found with-in the budget of the Department ofAgriculture and Marketing (NSDAM) andare as follows:

89

Nova Scotia Crop and Livestock Insurance Commission

Introduction

1998–99 1999–2000 1999–2000 2000–01Actual Estimate Forecast Estimate

Net Provincial Expenditure $450,300 $423,200 $452,300 $423,200

Mission

Strategic Goals In keeping with government’s commitmentto stimulate economic activity and devel-opment, the commission will pursue thefollowing goals in expanding its risk man-agement services in 2000–01:

Goal 1

To increase the benefits package availableto all insured producers. The paymentsmade to producers when a loss eventoccurs should reflect the variable costs ofproduction lost to that point in the grow-ing cycle. These costs should include cropinputs and materials, production labour,and machinery operating costs but will not

include the fixed costs of rental, owner-ship or investment.

Goal 2

To expand the range of protection undercrop insurance to include crops mostdrastically affected by recent droughtexperiences. This will include plans formanaged forage intended for winter feed,vegetable crops, and highly perishablefruits such as raspberries.

Goal 3

To improve service to all clients by replac-ing outdated information architectureswith systems which will enable quickerand more reliable processing of yieldinformation and claim verification data.

Goal 4

To ensure the protection of fund surplusesthrough purchase of reinsurance coverage.

Core BusinessFunctionsThe role of the Crop and LivestockInsurance Commission is to make avail-able, and administer, insurance programsthat will assist Nova Scotia farmers intimes of reduced revenues due to produc-

90


To provide risk management options

for agricultural production in

Nova Scotia, offering programs

that enable agricultural business

managers to offset the risk of

financial loss resulting from reduced

crop yields or loss of livestock

due to insured perils.

tion losses. Its core business functions(and associated activities) are:

Planning and Development– new crop and livestock insurance

program research development

– existing program evaluations andrevisions and regulatory support

– input to NSDAM Safety Net programand policy development

– liaison with Agriculture and Agri-foodCanada (AAFC), the Nova ScotiaDepartment of Agriculture andMarketing (NSDAM), the Nova ScotiaFederation of Agriculture (NSFA), andcommodity organizations

Field Services– sales and promotions, renewals, can-

cellations

– underwriting procedures

– production summary data manage-ment

– claims adjustment and processing

– client services and inquiries

– statistical reports

– claims verification and audit

Finance/Administration– generation of insurance certificates

– premium collections/indemnity payments

– budgets/estimates

– development and execution of financial controls

– purchasing

– payroll processing

– liaison with external auditors

Priorities for 2000–01• Increase the benefits payable to clients

who suffer loss of their crops early inthe growing season. Failure-to-establish(Stage 1 Loss) pay-outs will beincreased to more closely reflect thevariable costs of production lost whencrops fail to develop to maturity. Theimpact on the administration budget isnil. The impact on the insurance fund isminimal, as these types of losses areminor in relation to losses experiencedat final harvest or maturity.

• Initiate insurance coverage for the pro-duction of raspberries. The impact onadministration budget is minimal, asinspection and claim verification will beincorporated to already scheduled travel

91


cycles. The impact on premiums isapproximately $1,000.

• Introduce a new insurance plan for theproduction of forage crops. After threesuccessive years of drought, forage-based sectors are in need of a tool formanaging the risk of crop failures. Thisplan will enable the protection of over120,000 acres (48 500 ha) of forageproduction with a value of $20,000,000.The impact on administration budget isminimal, as production data survey isfunded under a research grant. Initialparticipation is expected to be light, withpremium impact estimated at $10,000in 2000–01.

• Introduce a new insurance plan for pro-duction of vegetables, including cab-bage, carrots, broccoli, cauliflower, let-tuce, brussels sprouts, rutabagas,onions, parsnips, and winter squash,protecting a potential production valueof $500,000. Administration impact isapproximately $5,000 in increased trav-el and casual staff required. Premiumimpact in 2000–01 is estimated at$10,000.

• Proceed with replacing outdated infor-mation architecture to enable more effi-cient data processing and facilitatespeedier claim clearance and faster pay-ments to producers in times of financialstress brought on by crop failure. The

system will be replaced with a platformsupported by the IT-CSU. Phase 1(Functional Requirements and Search) isestimated to cost $60,000 in the comingyear. Purchase and/or development willfollow in 2001–02. This is an allowableexpense under the Canada–Nova ScotiaCrop Insurance Agreement and will becost-shared 50-50.

• Secure the stability of insurance fundreserves through the purchase of pri-vate reinsurance. Participation in thefederal reinsurance fund for Nova Scotiawas suspended in 1997. Should theCrop Insurance Fund be depleted, theprovince would be liable for any indem-nity shortfalls. The recent years ofsevere drought and increased indemnitypayments have highlighted the possibili-ty of a major impact. A reinsurance poli-cy will protect the provincial treasuryfrom potential liabilities. Quotes are cur-rently being developed, but initial esti-mates are that premiums may total$40,000 annually. This is an allowableexpense under the Canada–Nova ScotiaCrop Insurance Agreement and wouldbe cost-shared 50-50.

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Human ResourcesThe Crop and Livestock InsuranceCommission consists of a six-memberboard appointed by the Minister ofAgriculture and Marketing. Board mem-bers’ appointments are normally for twoor three years and are often renewed for asuccessive term(s).

Currently the staff complement includesseven full-time permanent employees. A vacant Agrologist position is a full-timepermanent position. Two full-time casualpositions provide field support. Additionalcasual positions (1.5) are seasonallyrequired for peak summer and fall work-loads.

In keeping with government’s stated com-mitment to offer casual employees perma-nent positions where the nature of theirwork is ongoing, the commission intendsto pursue long-term contracts or perma-nent positions for its field agents who arecurrently classified as casual employees.The complexity of the commission’s infor-mation architecture and the pending devel-opment of a new architecture demandsthat the commission’s priorities includerefilling of a computer services officer

position. This will be done in conjunctionwith the IT-CSU to ensure maximum flexi-bility and IT effectiveness.

Staff training and development continue tobe a priority to meet the stated goals andto continue to improve programs and ser-vices. Staff training relative to require-ments of Occupational Health and Safetyregulations will continue during the nextfiscal year.

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insurance. Administrative costs for otherprograms administered by the commis-sion are not eligible for this cost-sharing.Premiums paid by producers and the fed-eral government are not included in thebudget figures provided.

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BudgetThe commission budget is included in thebudget estimates of the Department of Agriculture and Marketing. The CropInsurance Agreement with AAFC providesfor reimbursement of one-half of theadministrative costs relative to crop

1998–99 1999–2000 1999–2000 2000–01Total Estimate Forecast Estimate

$359,400 $395,900 $372,300 Salaries & benefits $395,900

$204,000 $144,300 $194,400 Operating costs $144,300

$162,900 $155,000 $160,000 Grants & contributions $155,000

$726,300 $695,200 $726,700 Gross expenditures $695,200

$(276,000) $(272,000) $(274,400) Less recoveries $(272,000)

$450,300 $423,200 $452,300 Net expenditures $423,200


Nova Scotia Farm Loan Board Business Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98Strategic Alliances and Linkages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100Performance in 1999–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106Outcomes and Outcome Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107

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The Nova Scotia Farm Loan Board is anagricultural development agency servingthe needs of agriculture and forestrythrough the provision of long-term credit.The board is Canada’s oldest governmentagency, lending exclusively to the agricul-tural industry. The originating legislationfor the board commenced in 1912. Theboard’s most active role in financing ruralNova Scotia is generally considered tohave started in 1932. For more than 67years, the Nova Scotia Farm Loan Boardhas served government through financingdevelopment and providing financial coun-selling for the agricultural industry andrural Nova Scotia. The board furtherserves rural Nova Scotia through theadministration of the Timber Loan Board.

Five individuals who have had successfulcareers in agriculture and business governthe policies and operations of the NovaScotia Farm Loan Board and Timber LoanBoard. The board delegates the responsi-bilities of Nova Scotia’s two primaryresource development agencies to staff.

The board has provided long-term loans toagriculture when no other sources of

financing were available. Most of the agri-cultural industry, as we know it today, hasbeen developed through financing fromthe board.

The need to provide stable and availablecredit has been identified as a priority inrural Nova Scotia in the years ahead. Thisis primarily as a result of:

• continued consolidation and expansionof operations

• relocation of individuals seeking ruralproperties

• ageing population

• importance being placed on the properstewardship of resources by the public

• development opportunities in agri-tourism

• continued development and expansionof farm based value-added businesses

• diversification of farm operations toallow for competitiveness

• identified new opportunities

• change in government programs fromdirect subsidies to risk managementand development programs

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Nova Scotia Farm Loan Board

Introduction

The board continues to provide valuablecredit services to rural Nova Scotia. Theboard’s current loan portfolio totalsapproximately $160 million, involvingmore than 1,427 accounts. This fundingrepresents approximately 64 per cent ofthe long-term debt and 39 per cent of thetotal debt of Nova Scotia’s farmers.

The Timber Loan Board has a portfolio of19 accounts totalling $1.8 million. TheTimber Loan Board assists in the acquisi-tion of forested land for forest productmills. The loans are extended to ensurethat forest mills have a sustainable woodsupply for the future, which increases ormaintains employment levels. Since 1965,when the Timber Loan Board was created,the timber industry has changed dramati-cally. Industry and staff of the Departmentof Natural Resources have identified theneed for changes in regulations. During1998–99 the board reviewed and recom-mended changes in regulations for theTimber Loan Board. These are currentlyunder review by the Department of NaturalResources. The timber industry is animportant part of the board’s activity.Throughout this document, references toagriculture or timber are intended to takeinto consideration both industries and thespecific needs of each industry.

LegislationThe board operates as a Corporation ofthe Crown under the authority of TheAgriculture and Rural Credit Act, RevisedStatutes, Nova Scotia 1989, Chapter 7.This act emphasises rural developmentand the effective use of credit to developrural Nova Scotia.

The Timber Loan Board’s authority is fromregulations made pursuant to the RevisedStatutes of Nova Scotia, 1989, The ForestAct in Section 20 of Chapter 179. This actprovides for credit to acquire forested landfor forest product mills.

Mission

Strategic GoalsThe Nova Scotia government’s objectivesare to stimulate economic growth anddevelopment, support the fundamentals of

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To promote, encourage, and support

the development of agricultural

businesses in Nova Scotia.

a strong society, and strengthen NovaScotia’s human capital for people andcommunities to grow.

The board operates as a corporation of theCrown in concert with the Department ofAgriculture and Marketing.

The strategic goals of the Department ofAgriculture and Marketing are:

1.Encourage the competitiveness of theagriculture and food industry so thatnew employment and income opportu-nities are created.

2.Provide leadership in the developmentof human resources for agriculture,food, and rural communities.

3.Foster a sustainable and environmental-ly responsible agriculture and foodindustry.

The board’s strategic goals support gov-ernment and the department’s goals by

Goal 1• focusing on access to stable, cost-effec-

tive, long-term developmental credit

Goal 2• identifying and analysing growth oppor-

tunities for rural industries

Goal 3• promoting awareness and use of finan-

cially sound business principles

Strategic Alliances and LinkagesStrategic alliances and linkages are a nec-essary component of the daily activity ofthe board to allow for continued develop-ment in agriculture. Over the years theboard has provided supplementary bene-fits through its strategic alliances and link-ages. These occur primarily with theDepartment of Agriculture and Marketingbut have also included other departmentsand other organizations involved in ruralNova Scotia. Some of these alliances willinclude:

• agriculture and forest industry

• Department of Natural Resources

• lending institutions

• Department of Housing and Municipal Affairs

• Department of Finance

• Department of Justice

• Department of Economic Development

• Department of Fisheries and Aquaculture

• Department of Tourism and Culture

• colleges and universities

• Nova Scotia Federation of Agriculture

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• Nova Scotia Community Pasture Board

• Agriculture and Agri-Food Canada

• Canadian Farm Management Institute

• extension to farmers and farm groupsfor educational purposes

• service groups to the public, including:

– legal professions

– appraisal professions

– accounting professions

– agricultural consulting professionals

– other government agencies anddepartments

Core BusinessFunctionsIn order to carry out its mission and thatof the Department of Agriculture andMarketing, the board is involved in the fol-lowing three core businesses:

• Providing finance for the developmentof agricultural and timber businesses.

• Providing financial counselling and/orproject assessments of rural operations.

• Assisting in sourcing the best availablecredit for rural operations.

Performance in1999–2000The province’s agriculture and food indus-try has changed a great deal in the pastdecade. The Nova Scotia Farm Loan Boardrecognizes the positive benefits of change.The board has been proactive in meetingits clients’ needs while providing a rangeof services when, and as, required. Byproviding access to capital the board esti-mates that over 1,200 jobs have beenmaintained and 268 new employmentopportunities have been created in agricul-ture. Information compiled indicates thatlending activity has created over $20 mil-lion in increased client annual cashflow,$8 million directly to construction relatedmaterials plus $4 million to constructionindustry labour.

Initiatives undertaken with respect tospecified goals in 1999–2000 were:

Goal 1: Focus on access to stable, cost-effective,long-term developmental credit

• Provided counsel to 1,446 clients andfor over 250 new applications and pro-jects.

• Extended approximately $25 million inloans to the agriculture and forestry

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industries.

• Continued to restructure loans resultingin savings to clients.

• Investigated providing loan guaranteesthrough the Farm Improvement andMarketing Act.

• Identified potential replacement optionsfor the board’s computerized loanadministration and accounting systems.

• Enhanced administrative servicesthrough the use of new technology.

• Enhanced operational proceduresthrough the incorporation of communi-cation, quality, and service teams.

• Conducted a client survey on board pol-icy and staff service, with returned sur-veys indicating a high degree of satis-faction with board policy and staffservice.

• Enhanced the util ization of client services through the website.

Goal 2:Identify and analyse growth opportuni-ties for the agricultural industry.

• Reviewed and analysed over 250 appli-cations and projects.

• Investigated loan guarantee programsthrough the Farm Improvement andMarketing Cooperatives Act.

• Financed new opportunities in agri-tourism and value-added production.

• Reviewed and forwarded recommenda-tion for regulation changes for theTimber Loan Board.

• Assisted in the review and developmentof recommendations for a New EntrantsProgram with the Department ofAgriculture and Marketing and the NovaScotia Federation of Agriculture.

• Enhanced the util ization of client services through the website.

Goal 3:Promote awareness and use of financial-ly sound business principles.

• Provided educational material and pre-sentations to industry, universities, andother sectors of government.

• Provided financial extension informa-tion, including transition managementand estate-planning seminars for theagricultural community and the NovaScotia Department of Agriculture andMarketing.

• Strengthened strategic alliances with allstakeholders in agriculture to fosterfuture improvements.

• Administered the 1997 Weather-RelatedLoss Provision Program and 1998Weather-Related Programs on behalf ofthe Department of Agriculture andMarketing.

• Assisted with the development andimplementation of the 1999 Accelerated

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Weather-Related Program in concertwith the Department of Agriculture andMarketing and the Nova ScotiaFederation of Agriculture.

• Assisted in the review and developmentof recommendations for a New EntrantsProgram with the Department ofAgriculture and Marketing and the NovaScotia Federation of Agriculture.

Priorities for 2000–01In keeping with strategic goals outlined forthe board, Department of Agriculture andMarketing, and government the followingrepresents the board’s planned actions for2000–01:

Goal 1:Focus on access to stable, cost-effective,long-term developmental credit

• Continue to counsel clients and assessnew proposals by applicants.

• Provide $35 million of lending capital tothe agricultural and timber industries.

• Upon acceptance of recommendedamendments to the Timber Loan Boardregulations, the board implement thenew regulations.

• Continue to review options related toloan guarantees with industry and otherlenders.

• Continue to refine the loan approvalprocess.

• Continue to enhance administration ser-vices through the use of new technolo-gy.

• Assist the Department of Agricultureand Marketing, through a teamapproach, in any way possible, to pro-vide a province-wide program delivery.

• Continue to blend the land lease pro-grams into the loan program.

• Implement a New Entrants Program inconcert with the Nova Scotia Departmentof Agriculture and Marketing.

• Encourage farmers to utilize sound envi-ronmental and business planning prac-tices and procedures.

• Seek authorization for increased lendinglimits for the board.

Goal 2: Identify and analyse growth opportuni-ties for rural industries.

• Continue to review and analyse applica-tions and projects.

• Further review the potential for expan-sion of industry sectors.

• Assist in identifying the specific sectoral

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needs for credit, and work with theDepartment of Agriculture andMarketing and the Department ofNatural Resources to implement theappropriate initiatives.

Goal 3: Promote awareness and use of financial-ly sound business principles

• Continue to counsel existing and newclients.

• Continue to participate with industry,government departments, and otherlenders to improve business and finan-cial information.

• Implement a New Entrants Program inconcert with the Department ofAgriculture and Marketing and the NovaScotia Federation of Agriculture.

• Investigate various options to reducerisk for beginning farmers.

• Participate in transition managementteams with the Department ofAgriculture and Marketing and theCanadian Farm Management Council.

• Explore new lending programs in con-cert with the Department of Agricultureand Marketing and Nova ScotiaFederation of Agriculture.

• Continue to refine systems to enhanceservices through technology basedcommunications.

Human ResourcesThe board is responsible to the Minister ofAgriculture and Marketing. Staff, throughthe Director and Chief Executive Officer,report to the board and to the DeputyMinister of the Department of Agricultureand Marketing. This allows the board tooperate in harmony with the appropriatedepartments in order to achieve its mandate.

In recent years, staff have faced rapidchanges in industry, parallel changes inthe department, with new priorities andchanging job roles and the challenge towork differently. Having a well-trained,highly motivated staff is critical to achiev-ing business plan priorities.

Staff training and development continue tobe a priority to meet the stated goals andcontinue to improve program and servicedelivery. Staff training related to require-ments of Occupational Health and Safetyregulations will continue during the nextfiscal year.

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CommunicationsTo ensure that information concerning theboard’s policies and programs is availableprovince wide, the board will communi-cate through electronic vehicles and arti-cles in rural publications. A website iscontinually updated as the board’s policiesand procedures dictate.

The board will continue to receive clientfeedback through a survey process. Thisis an ongoing process established by theboard. Based on survey results the boardwill continue to improve and modify sys-tems and processes to allow for improvedservice delivery. The returned surveysindicate that clients have a high degree ofsatisfaction with the board’s service (95per cent). The main concern remains forstaff to focus on loan processing and turn-around time. Thus, the board will continueto improve processes and policies toaddress client concerns, where warranted.

To properly determine whether the boardis cost effective, systems are in place totrack activities so that the board canreview its mandate and communicate itsfuture direction for an ever-changingindustry.

InformationTechnologyThe board, as a loan service provider, part-ners with many other financial lendinginstitutions. In order to be successful, theboard must provide its clients with a levelof service that meets or exceeds those ofother lending institutions. The key serviceadvantages of the board are the ability tobe flexible and the ability to provide finan-cial counselling to clients, and the lendingpartners involved, to make the operationsuccessful. Basic client services must keepup with industry standards in order toassist in the success of the individualsinvolved. The board also requires the flexi-bility to adapt to new business practices,as required, through implementation ofnew funding programs or industry change.

The current business processes used bythe board to manage loans are primarilypaper-driven, with many steps involvingmany people. This is particularly evident inthe loan application process.

Current automation of the business con-sists of a single-user PC-based accountingsystem, spreadsheets being used as forms(for calculations), a loan management

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program, a fire insurance application, a lifeinsurance application, and a loss provisionmanagement program. Some of theseexisting applications function as stand-alone systems, with no integration or datasharing.

The accounting system requires dataintegrity support and flexibility to conformwith current business practices andprocesses of the board. Currently, calcula-tions and reports are not available fromthe existing systems, and some functionsmust be performed manually.

A needs assessment has identified newsystem requirements. An integrated loanmanagement system to replace existingstand-alone system components, provideautomation of manual processes, andserve as a tool for streamlining businessprocesses is being investigated.

The board is evaluating potential softwareprograms. Once the evaluations are com-pleted and a suitable program is identified,the board can move forward with theimplementation of an integrated systemthat will meet its business requirements.This will enable the board to be more effi-cient and flexible with respect to clientservices.

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Budget

Nova Scotia Farm Loan Board Budget Recognizing Net Interest AllocationIn keeping with the government’s ongoing commitment to achieve a balanced budget, theboard in previous regulation reviews has moved to a matched funding loan program that wouldallow for cost recovery. The board has been tracking the cost and revenues related to intereston loans established after July 1, 1997. The revenue expense projections related to the boardhave allowed the board to move from reporting net losses of $557,000 in 1998–99 to forecast-ing net revenues of $1,301,000 in 1999–2000. Although it must be recognized that a one-timegain through a demutualization process with the life insurance carrier was received in this fiscalyear, the board projections indicate future positive returns to the province for fiscal 2000–01.

1998–99 1999–2000 Object 2000–01Actual Forecast Projected

$11,332,000 $12,050,000 Interest Revenues (a) $12,000,000

($10,830,000) ($10,420,000) Interest cost ($10,000,000)

$192,000 $ 951,000 Fees and recoveries (b) $450,000

$694,000 $2,581,000 Total Revenue $2,450,000

($662,000) ($774,000) Salaries and benefits ($840,000)

($188,000) ($126,000) Other operating costs ($187,000)

($401,000) ($380,000) Bad debt expense (c) ($400,000)

($1,251,000) ($1,280,000) Total Expenses ($1,427,000)

($557,000) $1,301,000 Net Board Income (d) Excluding Programs $1,023,000

Notes:

a Revenues and expenditures for interest are not shown separately in Provincial Estimates. Interest expense is an imputed valuebased on provincial borrowing costs under an agreement between the Department of Finance and the board and is provided forreporting purposes only. Most interest income and expense are posted to Department of Finance accounts.

The interest expense agreement began in September 1997 and applied only to loans converted to the new program since that time.Interest expense is assumed to be equal to interest revenue for reporting purposes previous to conversion. By mid-1999, all FarmLoan and Timber Loan accounts became subject to this agreement. 1998–99 interest costs are estimated.

b In 1999–2000 a one-time demutualization proceeds were received from the Mutual Group. Funds in excess of requirements for theInsurance Reserve under the self-administered life insurance program are treated as a recovery in the operating accounts.

c Posted to Department of Finance accounts.

d Does not include allocations for the New Entrants to Agriculture Program of $600,000 or Weather-Related Programs of $5.3 millionin fiscal 2000–01. These programs are administered by the board on behalf of the Department of Agriculture and Marketing.

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Outcomes And Outcome MeasuresThe following are outcome measures for the board for fiscal 2000–01.

Focus on access to stable cost-effective long-term developmental credit

Outcome Indicator Measure

• Stable agriculture and • Registered farms in Nova Scotia • Maintenance of farm operationsforest industry • Farm income levels • Increase of farm income levels

• Percentage of write-offs on loan portfolios

• The maintenance and creation • Jobs maintained or created • Return of client survey indicating jobs of jobs in rural Nova Scotia from lending activity maintained and/or growth

• Development of agricultural • Lending activity • Lending activityoperatons

• Targeted new entrances into • New farmers enter and stay • New Entrants Applicationsrural businesses in the agricultural businesses

• Improved lending programs • Utilization of lending programs • Lending activityfor the agricultural and • Surveys of client satisfactionforestry industry

Identify and analyse growth opportunities for agricultural industries


• Lending opportunities • Lending activity by area • Dollars loaned over and sector previous years

• Lending activity occurs • Lending activity by area • New agricultural industries’ start-upsin targeted sectors and sector

StrategicGoal �

StrategicGoal �


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Promoting awareness and use of financially sound business principles


• Successful agri-business • Applications for credit indicating • Accounts successfully paid out operations improved business skills for sound financial business reasons

• Successful pay-out of loan accounts

• Heightened awareness of • Applications for credit indicating • Clients starting new venturesfinancial management skills improved business skills • Accounts successfully paid out

• Beginning farmers in for sound financial business reasonsagri-business

The overall outcome of the board’s activity for 2000–01 is intended to meet the goals of the board, the Department of Agriculture and Marketing, and government. These goals will allow the board to fulfill its mission to promote, encourage, and support the development of agriculture and forestry industries in Nova Scotia.

StrategicGoal �


Nova Scotia Film Development CorporationBusiness Plan 2000–01

ContentsMission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111Performance in 1999–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .114Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115Marketing and Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116Budget 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117

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Mission

Strategic GoalsGoal 1To promote Nova Scotia nationally andinternationally as an ideal business oppor-tunity and location for film, video, and newmedia productions.

Goal 2To promote within the Nova Scotia artisticand business community the opportunitiesin an expanding film and video industry.

Core BusinessFunctionsProgram Funding

The corporation provides funding for filmproduction in the form of contributions,loans, and equity investments.Contributions are also made to industrytraining, marketing, and events. Theseprograms create Nova Scotia property,which ensures that future profit stays inthe province.

Tax Credit Administration

The corporation administrates the NovaScotia Film Tax Credit, a fully refundablecorporate income tax credit.

Information Services (Consultation, Location Services andResource Inventory)

The corporation provides education andconsultation on various issues regardingfilm production and financing in NovaScotia. Industry statistics, trends, anddevelopments are tracked and reported.

The corporation aggressively markets NovaScotia as a film location and produces anannual film and video guide that serves asone of our major marketing tools.

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Nova Scotia Film Development Corporation

To grow the film and video industry

in Nova Scotia by stimulating

investment and employment,

and by promoting Nova Scotia’s

locations, skills and creativity

in global markets.

The corporation arranges BroadcasterForums, which allow local filmmakersaccess to key decision makers in thebroadcast field.

Performance in1999–2000• Commitment of $2.5 million to film and

television projects.

• Investment in projects with an estimat-ed value in excess of $120 million inproduction in Nova Scotia.

• Aggressive marketing to attract guestproduction revenue in excess of $50million.

• Financial assistance in projects includ-ing The Divine Ryans, New WaterfordGirl, Shelter, Loyalties, Blackfly, andmany others, which have won prizes atvarious festivals.

• Implementation of improvements toguidelines and criteria for programapplications.

• Estimated registering of 24 projects forover $6.5 million in tax credits.

• Training of 60 positions under the FilmIndustry Training Assistance Program.

• Provision of $45,000 in assistance tothe Atlantic Film Festival, $20,000 for

the Centre for Art Tapes, $24,000 for theAtlantic Filmmakers Co-operative,$25,000 to the Atlantic Digital MediaFestival, and $30,000 to the MovingImages Group.

• Facilitation of a Film Familiarization Tourfor Los Angeles–based producers.

• Facilitation of a film industry trade mis-sion to New York.

• Hosting of an industry forum to providetraining for the local production com-munity and allow them to pitch televi-sion projects to 10 national broadcast-ers.

• Advance to the implementation stage ofa film school in Nova Scotia.

• Assistance in opening two animationstudios in Nova Scotia with local part-ners and a large Ottawa-based anima-tion company.

• Facilitation in obtaining enhancementsto the Nova Scotia Film Tax Credit.

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Priorities for 2000–01The Nova Scotia Film DevelopmentCorporation focuses on three main goalsto fulfil our mandate:

• growing the local film industry

• attracting guest film projects

• providing the infrastructure required toattain the first two goals

The following actions will be taken toaccomplish these goals:

• Establish a marketing and distributionprogram to assist local producers inmarketing their television and featurefilm products; this has been identifiedas a crucial step in order to further ourthree main goals.

• Increase to 3,000, the number of NovaScotians employed in filmmaking.

• Facilitate the renewal and enhancementof the existing Film Industry Tax Creditto 2004 to ensure stable financing ofindigenous film and television projectsand to remain competitive with theother provinces.

• Strategically invest in Nova Scotian pro-ductions that will increase industryvalue to $200 million.

• Maintain the amount spent on serviceproductions in Nova Scotia at an appro-priate level to facilitate recognition ofNova Scotia as a film location, attractprojects to the regions, and developopportunities to enhance crew exper-tise.

• Increase the recoupment of investmentin films and videos produced in NovaScotia to an appropriate level annually.

• Create opportunities for Nova Scotiaproducers to access key export marketsinternationally to increase co-produc-tions with partners from the UK,Germany, Scandanavia, and USA.

• Maintain regular dialogue with Canadianbroadcasters such as CTV, CBC, City TV,Bravo, History, Discovery, Life, andGlobal to facil itate new broadcastlicences.

• Invest in training to develop film crewexpertise and increase to six the num-ber of qualified crews available for pro-duction.

• Aid in establishing the infrastructure tomaintain a leading market position,including a film school, film lab, andanimation facilities.

• Provide employers in the industry withthe best and most up-to-date govern-ment partnership tools available bymonitoring trends and development in

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the Canadian and international filmindustry.

• Integrate Nova Scotia film productionwith other successful sectors of theNova Scotian entertainment industryand create synergy by providing usefulprograms and services to Nova Scotia’svital new media industry.

• Establish an effective interprovincial lobbyto improve Nova Scotia’s share of nation-al film and video production funding.

• Encourage public/private partnershipopportunities, allowing Nova Scotia pro-ducers to access additional private-sec-tor funds.

Human Resources

Organizational StructureThe corporation’s permanent staff is madeup of a Chief Executive Officer, Director ofFinance and Programs, Director ofTraining and Development, LocationsOfficer, and Office Administrator.

Communications

Key MessageThe Nova Scotia film industry is a highgrowth, multi-million dollar industry thatforms an integral part of Nova Scotia’seconomy. It is a labour-intensive, environ-mentally friendly knowledge-based indus-try that is attractive to our youth and helpsto employ them in their home province.The film industry creates wealth that isspread throughout the whole province andan international profile for Nova Scotiathat positively affects tourism and hasmany other spin-off benefits.

Role of the CorporationThe corporation is uniquely qualified andpositioned to provide stable support tostimulate employment and investment inthe Nova Scotia film industry. The Board ofDirectors of the corporation meets annual-ly to review the corporation’s strategy.

Growth and StrategicAdvantage MessageThe Nova Scotia film industry has grownsignificantly over the past six years from$14 million in 1993 to $119 million in1998–99, and we expect the year ended

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The media attention generated by the filmindustry and the film locations themselvesenhances the promotion of marketing andtourism for the province.

Distribution MediaThe Nova Scotia Film DevelopmentCorporation promotes its initiatives andsuccesses via the following:

• national and international trade events

• advertising and promotion (includingfamiliarization tours)

• Internet website

• annual production resource guide

• annual report

• newspaper and magazine articles

• television interviews

• speaking engagements

InformationTechnologyThe corporation currently operates anindependent local area network consistingof IBM-style machines and a stand-alonePower Mac used to develop the annualproduction guide. The principal uses areword processing, finance and accounting,business spreadsheets, and presentations.

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March 31, 2000 to exceed $150 million.Nova Scotia’s many talented filmmakershave been successful in combining theirtalents with the support of the province ofNova Scotia to generate this growth. Thefilm industry in Canada has significantlyoutperformed the GDP in both service andgoods production industries during thissix-year period.

Employment OpportunitiesBy working with producers who are theemployers in the industry, the corporationhas been able to draw a large amount ofinvestment to the province, which createsdirect jobs in the film industry as well asspin-off benefits. So far this year the filmindustry has created 2,500 direct jobs inNova Scotia. The corporation is alsodirectly involved with the creation of train-ing and professional development projectsand the Nova Scotia Film Industry TaxCredit, all of which work to create mean-ingful long-term jobs for Nova Scotians.

Spin-off Benefits MessageA typical film production budget is nearly50 per cent salaries and wages. Thismeans that money is earned and spentdirectly in the province, which creates highdirect and indirect spending as well asenhanced tax revenues for the province.

All computers are Year 2000 compliant.An Internet website is updated quarterlyand provides links to the international filmindustry including the Filmboard Berlin-Brandenburg, clients, and government.

Marketing andDistributionDistribution and marketing are crucialareas facing all of Canada’s film and televi-sion industry, not just Nova Scotia’s.Currently, all distribution channels aredominated by large American companies,and they are not interested in marketingCanadian films. Our producers can createwonderful films, but if they are not mar-keted and distributed properly, no one willsee them. If NSFDC had the resources toestablish a marketing and distribution pro-gram we would be able to assist our localproducers in getting their film and televi-sion projects to market. Proper marketingand distribution will increase the opportu-nity for recoupment of our investment inthese projects and future profit participa-tion. Marketing and distribution money is

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the least risky money in the film and tele-vision industry. It is the last money paidout and the first money paid back. It isloaned to the film project and paid backfrom the first cash receipts on the project.

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Budget 2000–01Attached is a brief summary budget under three scenarios.

Budget A reflects a status quo investment in an industry that has demonstrated steady growth over the past six years.

Budget B provides for a marketing and distribution fund to assist our producers in selling their film and television projects more successfully. This will, in turn, increase NSFDC’s recoupment and profit participation opportunity.

Budget C reflects a 15 per cent reduction from the prior year’s allocation.

Nova Scotia Film Development CorporationBudget March 31, 2001

Industry Growth (A) Maintain (B) 15% Reduction (C)

ContributionsNova Scotia government

existing programs $4,000,000 $2,790,000 $2,371,500marketing & distribution programs 2,000,000 — —

Recovery equity investments 200,000 200,000 200,000Federal government 90,000 — 90,000Interest income 50,000 25,000 25,000

$6,340,000 $3,015,000 $2,686,500

DisbursementsProgramming $3,771,060 $2,535,020 $2,164,320Marketing & distribution

Specific films/television projects 2,000,000 — —Atlantic film partners 90,000 — 90,000Administrative a 363,940 346,980 319,180Advertising/marketing b 115,000 133,000 113,000

$6,340,000 $3,015,000 $2,686,500



Nova Scotia Film Development CorporationBudget March 31, 2001 (continued)

Industry Growth (A) Maintain (B) 15% Reduction (C)

Administrative ExpensesSalaries and Benefits $274,940 $237,180 237,180

Services and SuppliesTelephone/fax $12,000 $12,000 $12,000Staff training 4,000 3,000 3,000Bank charges 1,500 1,500 1,500Consultants (recoup’t strategic) 10,000 10,000 8,000Courier 5,000 7,000 5,000Dues & fees 3,500 3,500 3,500Insurance 1,500 1,500 1,500Conferences & marketing 5,000 5,000 4,000Board 15,000 35,000 15,000Repairs 3,000 4,000 3,000Capital equipment 2,000 4,000 2,000Office 15,000 12,000 12,000Copier & fax rental 6,000 5,800 6,000Postage 5,000 5,000 5,000Miscellaneous 500 500 500

$89,000 $109,800 $82,000

Total administrative a $363,940 $346,980 $319,180

Advertising/marketing expenses:Business Travel 20,000 35,000 20,000Locations Officer &

Public Relations Coordinator 34,000 38,000 34,000Advertising 25,000 25,000 25,000Familiarization tour 12,000 12,000 10,000Annual report 8,000 8,000 8,000Location scout 10,000 9,000 10,000Photos & location services 6,000 6,000 6,000

b $115,000 $133,000 $113,000

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Nova Scotia Fisheries And Aquaculture Loan BoardBusiness Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122Performance in 1999–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125Outcomes and Outcome Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126

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Nova Scotia is the leading fishing provincein Canada, a nation that is known as a worldfishing power. We are fortunate to have adiversified industry, which can survive andprosper on its strengths while various seg-ments suffer cyclical downturns. Our com-mercial fishery alone has an annual landedvalue of approximately $540 million and amarket value of approximately $900 million;our aquaculture and recreational fisherysectors generate $127 million more. Theindustry is the main employer in manyregions of the province and drives theeconomies of our coastal communities.

As our fishery moves into the 21st century,we must maintain and enhance the tradi-tional components of the industry, whichover time have provided us with success.We must build on these segments, seekingout and developing new opportunities inaquaculture, the recreational fishery,coastal zone management, under-utilizedspecies, and the processing sector.Whether it be with areas of provincial juris-diction or with the marine fisheries, whichare administered federally, personnel fromthe Nova Scotia Fisheries and Aquaculture

Loan Board must play an active role toensure that fisheries policies and manage-ment strategies are good for Nova Scotiaand the industry in this province. Our fish-ery is more than a way of life, it is a suc-cessful business; we must strive to keep itproductive and internationally competitive.

The Nova Scotia Fisheries and AquacultureLoan Board and its predecessor haveserved the province and the fishing indus-try since 1936, by providing developmentfunding. The board operates under theauthority of the Fisheries and CoastalResources Act. This act, by its name,emphasizes the coastal community devel-opment focus of the board’s operations.

Financing the growth of the coastal com-munities in Nova Scotia can best be accom-plished, in continued cooperation withother lenders, through the program andservices of the Nova Scotia Fisheries andAquaculture Loan Board. Through thisboard the Nova Scotia government willensure it has a cost-effective, positive,focused, and beneficial influence on thedevelopment of the fishing and aquaculturalindustries and of coastal Nova Scotia.

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Nova Scotia Fisheries and Aquaculture Loan Board

Introduction

Mission

Strategic GoalsGoal 1Protect the interests of Nova Scotia aspolicies are developed for the managementof the commercial fishery in Nova Scotia.

Goal 2Increase production and market valuefrom the aquaculture industry in NovaScotia.

Goal 3Assist in the development of commercialfisheries that target non-traditional species.

Goal 4Optimize the productivity and competitive-ness of the boatbuilding and harvestingsectors in coastal communities.

Goal 5Ensure compliance with provincial actsand regulations.

Goal 6

Allow licences, individual transferablequotas (ITQs) and enterprise allocations(EAs) to be considered as valued assetsfor the purpose of determining loanarrangements through the Fisheries andAquaculture Loan Board.

Goal 7Replace the older vessels in the fleet withmodern efficient boats or upgrade theseolder vessels to meet today’s safety and efficiency standards.

Goal 8Ensure compliance with federal acts andregulations as they relate to fisheries management.

Core Business Functions• Representing the Nova Scotia fishing

industry at all levels of managementconsultations, such as the CanadianMarine Advisory Council.

• Assisting with the development of newfisheries that target non-traditionalspecies to enhance the harvesting sector.

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To serve, develop and optimize the

harvesting segment of the Nova Scotia

fishing and aquaculture industries,

for the betterment of our

coastal communities and the

province as a whole.

• Administering loans issued through theNova Scotia Fisheries and AquacultureLoan Board.

• Enforcing the Fisheries and CoastalResources Act and regulations.

• Providing technical and extension sup-port for the commercial, aquaculture,and boat building sectors of our fishingindustry.

• Inspecting vessels under constructionand all other vessels financed by theboard to ensure the security of the loanportfolio, which has an estimated assetvalue of $100–$135 million.

Performance in1999–2000

• Lending programs for aquaculture wereadministrated by the loan board, havingbeen transferred from the EconomicRenewal Agency three years ago.

• The board has responsibility for theworking capital loan guarantee program.This is a five-year, $10-million programto assist aquaculturists with their work-ing capital requirements; the program isadministered with the chartered banks.

• The funding of vessels to engage in theharvesting of non-traditional species

such as sea urchins, rock crabs, billfish,and inshore shrimp.

• Initiatives to support coastal communi-ties included funding commercial aqua-culture operations, working with boat-builders to encourage the constructionof world-class fishing vessels, andboard policies that support this sector.

• Loans administered through the LoanBoard are well serviced by clients in thefishing and aquaculture sectors.Successful lending practices aredemonstrated by low delinquency levelsand few customer complaints.

• The Groundfish Loan DefermentProgram was extended until March 31,2001 , which eases the hardships beingsuffered by groundfishers as a result ofquota reductions and area closures.

• User fees have been implemented togenerate revenue for the division.

• The lending budget was fully utilized bythe fishing and aquaculture sectors.

Priorities for 2000–01• To facil itate the replacement and

upgrading of older vessels in each fleet.

• To continue Loan Board collection activ-ities on a consistent basis with fair andequitable treatment for each customer.

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• To have additional members appointedto the Loan Board.

• To minimize write-offs by utilizing wisecredit practices when approving or rec-ommending loans.

• To serve the fishing industry by effec-tively carrying out divisional core func-tions.

• To obtain some of the profit generatedby the loan portfolio from theDepartment of Finance.

• To have the Loan Board’s lending bud-get set at $14.0 million.

Human ResourcesThere are no major human resource initia-tives planned in the fiscal year 2000–01.During the last six/seven years the LoanBoard staff have been reduced from 18 to9 full-time positions, and any further staffreductions would seriously effect thedelivery of Loan Board services to thefishing industry. The board requires theservices of an additional loan officer, andthis problem must be addressed on anurgent basis.

CommunicationsNo major initiatives are planned in thisarea for the 2000–01 fiscal year.

InformationTechnologyAll nine staff members have computers,and three are connected directly to theDepartment of Finance. As part of theDepartment of Fisheries and Aquaculture,the Loan Board has set up a home pageon the department’s website.

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BudgetThe Fisheries and Aquaculture LoanBoard’s operating budget is incorporatedwith the department’s budget each year.The Loan Board participates every year in government’s and the department’sfinancial management and accountability

initiatives. The operating budget for the1999–2000 fiscal year is $489,000, andthe lending budget for the Loan Board isdetermined by government early in eachfiscal year; the amount for 1999–2000 is$14,000,000 net.

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1998–99 1999–2000 Object 2000–01Actual Forecast Estimate

423,730 466,400 Salaries & benefits 466,297

93,865 97,200 Operating costs 128,100

nil nil Grants & contributions nil

517,595 563,600 Gross expenditures 594,397

72,604 75,000 Less: fees & recoveries 106,700

444,991 488,600 Net expenditures 487,697

For the fiscal year 1998–99 principal repayments totalled $9,267,067, and interest

payments totalled $2,944,245.

Outcomes and Outcome Measures• Full utilization of the Loan Board lending

budget, which demonstrates that thedemand for our service exists: grossloans for 1998–99 were $13,916,075.

• The maintaining of approximately 8,900direct and indirect jobs in the province’scoastal communities.

• Low delinquency rates.

• Few customer complaints

• Low write-offs and low Reserve for Badand Doubtful accounts.

• The financing of young fishers andyoung aquaculturists, who are thefuture in an ever-changing industry.

• Consistently high interest revenues.

• Offshore demand for Nova Scotia–builtboats due to quality construction as aresult of rigorous vessel inspections onboard-financed vessels.

• Ninety-three new loans financing 46new vessels constructed; 37 other loanssuch as vessel upgrades, used boat pur-chases, and engine/equipment installa-tions.

• Twenty aquaculture operating capitalloans.

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Nova Scotia Gaming CorporationBusiness Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129Corporate Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1351999–2000 Goals in Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1351999–2000 Financial Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1382000–01 Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1402000–01 Operating Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143

Note: NSGC’s business plan and budgets are significantly dependent on the business plansand budgets of its operators, the Atlantic Lottery Corporation (ALC) and the MetropolitanEntertainment Group (MEG). ALC’s and MEG’s business plans and budgets have beenreceived but are not expected to be approved by NSGC until April 2000.

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IntroductionBackground

The Nova Scotia Gaming Corporation(NSGC) was established in 1995 with theexclusive mandate to conduct and managethe province’s gaming activities. The day-to-day operations of these gaming activi-ties are carried out by its operators, theAtlantic Lottery Corporation (ALC) and theMetropolitan Entertainment Group (MEG).NSGC reviews and approves the annualbusiness plans and related budgets of itsoperators and monitors their performancethroughout the year according to theseplans and budgets. Through the businessplanning process, NSGC defines, amongother things, its priorities for the year.

In March 1999, NSGC served notice to ALCof its intention to withdraw its video lotterybusiness from ALC on November 30, 1999and its ticket lottery business on March 31,2000 and to withdraw as a shareholder onMarch 31, 2000.

On January 21, 2000, an agreement in prin-ciple was reached among the shareholderprovinces whereby NSGC will receive anannual profit adjustment effective fromApril 1, 1999. Based upon the new profit-sharing formula, NSGC’s increase in profits

was initially estimated at $4.9 million for1999–2000. The $4.9-million figure hasbeen subsequently reduced to $4.2 millionfor 1999–2000 based on ALC’s correctionin the original figures. In addition, NSGCwill receive $500,000 from New Brunswickfor the next three years in lieu of a retroac-tive adjustment.

The agreement will better define NSGC’sagency agreements with ALC to reflectALC’s role as operator for NSGC’s ticket lot-tery and video lottery businesses in NovaScotia, subject to NSGC’s oversight anddirection. In addition, an independent reviewof the economy, efficiency, and effective-ness of ALC will be undertaken under thesupervision of ALC’s shareholders.

NSGC’s business plan has been preparedbased upon a continued relationship withALC, assuming a satisfactory completionof the contracts to support the agreementin principle.

Objectives of the Business Plan

The objectives of the 2000–01 businessplan are

• To serve as a blueprint for NSGC’s activ-ities during fiscal 2000–01.

• To define specific goals that will be usedby the corporation and its stakeholdersto measure its performance.

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Nova Scotia Gaming Corporation

Business Plan Period

This business plan is for the fiscal yearApril 1, 2000 to March 31, 2001.

Corporate Overview

Corporate MandateGaming was legalized in 1976 in NovaScotia with the introduction of lottery tick-ets. In 1991, video lottery gaming in theprovince was also legalized. With theestablishment of casinos in 1995, theNova Scotia gaming regime was modern-ized through the introduction of theGaming Control Act. This act separatedthe business of gaming from the regula-tion, study, and evaluation of gaming. Thiswas achieved through the creation of theNova Scotia Alcohol and Gaming Authority(NSAGA) for the regulation, study, andevaluation of gaming and the Nova ScotiaGaming Corporation (NSGC) for the con-duct and management of the business ofgaming.

NSGC’s objectives are defined in theGaming Control Act as follows:

• Develop, undertake, organize, conduct,and manage casinos and other lotteryschemes.

• Provide for the operation of casinos andany business that the corporation con-siders reasonably related to operating acasino.

• Ensure that lottery schemes conductedand managed by the corporation areconducted and managed in accordancewith the Criminal Code of Canada andthe Gaming Control Act and theRegulations.

• Do such other things in respect of lot-tery schemes, as the Minister responsi-ble for Part I of the Gaming Control Actor the Governor in Council may fromtime to time require.

NSGC currently delegates the day-to-dayoperations of its businesses to its twooperators:

1.ALC for video and ticket lotteries

2.MEG for the casino operations in theprovince.

NSGC exercises its conduct and manage-ment mandate as follows:

• Develops policy and strategic directionsfor gaming activities in Nova Scotia.

• Reviews and approves annual businessplans and budgets for its operators.

• Manages performance of its operatorsagainst annual plans and budgets.

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• Ensures compliance with operators’contracts, the Criminal Code of Canada,the Gaming Control Act, and theRegulations.

Business OverviewIntroduction

NSGC currently conducts and managesthe following gaming activities:

• ticket lotteries• video lotteries• casinos

The day-to-day operations of the ticketand video lottery programs of NSGC arecarried out by its operator, ALC. ALC alsooperates similar programs for the otherthree Atlantic provinces. ALC was incorpo-rated in 1976 under the Canada BusinessCorporations Act and is equally owned byNSGC and the three other Atlanticprovinces or their agents.

The casinos in Halifax and Sydney areoperated by MEG, a partnership betweenStarwood Canada Corporation (formerlyITT Sheraton Canada Ltd.) and Purdy’sWharf Development Limited. OnDecember 29, 1999, Starwood Canadatransferred its partnership interest in MEGto Park Place Entertainment Scotia

Limited, a subsidiary of Park PlaceEntertainment Corporation (PPE).

Additionally, NSGC, through the NovaScotia Harness Racing Incorporated(NSHRI), is involved in the marketing, pro-motion, and funding of harness racingthrough the ALC Harness RacingCorporation Incorporated (ALCHRC).

Ticket Lottery Products

ALC employs 492 people, of whomapproximately 300 are located at its headoffice in Moncton, New Brunswick. ALChas 69 employees in Nova Scotia atregional offices in Dartmouth and Sydney.

Through ALC and the Interprovincial LotteryCorporation (ILC), NSGC offers a variety ofticket lottery games to the public in NovaScotia. Table 1 provides an overview ofthese games and Table 2 depicts the distrib-ution of projected gross 1999–2000 salesby game type in Nova Scotia.

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Table 1Current GamesGame Type Games Description

National Games Lotto 6/49 A $1 national lottery game that offers jackpots of $1 million or more.

Super 7 A $2 national lottery game that offers jackpots of no less than $2.5 million.

Regional Games Pik 4 A mini-Keno game using Lotto 6/49 winning numbers.

Atlantic Choice A Keno game drawn three times a week.

TAG A $100,000 spiel game played in conjunction with Lotto 6/49,

Super 7 or Pik 4.

Instant Tickets Various games Scratch ’n Win tickets that let a player know instantly whether it is a

winner and what the prize is. All instant ticket wins are validated on-line.

Breakopen Various games Similar to instant tickets, but no on-line validation is required.

Sport Select Pro-line Player predicts the outcomes of professional sporting events.

Table 21999–2000 Projected Gross Sales Distribution by Game Type

Sales ($m) % of Total Sales

National Games 69.7 35.5%

Regional Games 22.2 11.3%

Instant Tickets 78.4 40.0%

Breakopen 19.6 10.0%

Sport Select 6.3 3.2%

Total 196.2 100.0%

Video LotteryProductsThe video lottery games are contained inindividual video lottery terminals (VLTs) andvary by manufacturer and model of VLTs.

NSGC, through ALC, operates 3,234 VLTsin the province. The VLTs are in operationin liquor licensed establishments 17 hoursper day, seven days a week.

The video lottery retailers are directly ser-viced by an ALC sales staff of six and atechnical service staff of 28, all located inNova Scotia.

The current product mix is as follows:Manufacturer Number of VLTs Age& Model

Spielo LEL 2,425 8–9 years old

VLC 30 8–9 years old

IGT 471 6 years old

Spielo BB101 308 3–4 years old

Total 3,234

With few exceptions, the payout on theseproducts ranges from 90 per cent to 95per cent of the amount played. The fourmost popular games are Swinging Bells,Bonus Joker Poker, Double Bonus, andRed Hot 7s, and they all have a payout of95 per cent. Under the VLT Regulations,the minimum payout percentage in NovaScotia is 80 per cent.

NSGC also supplies, through ALC, approx-imately 400 VLTs to 9 of the 10 FirstNations bands that have entered into gam-ing agreements with the Province of NovaScotia. ALC supplies the VLTs to 8 bandsfor a flat administration fee of $56 per VLTper week. One band continues to operateunder an earlier agreement, which chargedan administration fee based on a percent-age of revenue.

Casinos

NSGC conducts and manages two casinosin the province: Casino Nova Scotia—Halifax and Sydney. The day-to-day opera-tions of both casinos are carried out byNSGC’s operator, MEG.

The Halifax casino is currently housed inan interim facility on the waterfront withinthe Sheraton Halifax hotel. It occupies35,201 dedicated square feet with an addi-tional 13,905 square feet of shared space.Approximately 18,000 square feet is dedi-cated to gaming. It currently operates 34tables offering a variety of games includ-ing Blackjack, Roulette, Let-it-Ride Poker,Caribbean Stud Poker, Mini Baccarat,Baccarat, Red Dog, Double DeckBlackjack, and Big Six. There are 565 slotmachines in denominations of $0.05,$0.25, $1, $2, $5, $25, and $100.

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The Halifax casino employs approximately479 people at its interim facilities. Uponcompletion of the permanent casino, thenumber of employees is expected toincrease to 750–780.

Construction on the permanent Halifaxcasino is scheduled to be completed inApril 2000. The permanent Halifax casinowill be approximately 130,000 square feetof total building area and will include33,000 square feet of dedicated gamingarea, housing 38 tables and 692 slotmachines.

The Sydney casino, located on the islandof Cape Breton, is a permanent facilitywith a sports theme and a relaxed atmos-phere reflecting its location adjacent toCentre 200 sports arena. It occupiesapproximately 41,900 square feet, 15,384of which are dedicated to casino gaming.The facility includes a 104-seat restaurantand 83-seat lounge with a stage suitablefor live entertainment.

The Sydney casino operates 14 tablesoffering Blackjack, Roulette, Let-it-RidePoker, Poker, and Red Dog. There are 353slot machines in denominations of $0.25,$1, $2, $5, and $25.

The Sydney casino employs a total of 226persons.

The Halifax casino operates 24 hours aday, seven days a week. The Sydney casi-no operates 24 hours a day on Fridays andSaturdays and from 11:00 am to 3:00 amSundays through Thursdays. Both casinosare closed on Good Friday, Easter Sunday,Remembrance Day, and Christmas Day.

Harness Racing

Harness racing in Nova Scotia consists ofboth live races at racetracks and racessimulcast from racetracks in and outsideof the Maritime provinces. There are threeracetracks in Nova Scotia: Truro,Inverness, and Tartan Downs (Sydney), aswell as five teletheatres operating in vari-ous locations.

Harness racing has been a decliningindustry in recent years, and many of theracetracks, including those in Nova Scotia,are experiencing financial difficulties. Inorder to revitalize this industry, theCouncil of Maritime Premiers recommend-ed in 1997 that marketing, promotion, andfunding of harness racing for a three-yearperiod be transferred to ALC.

ALCHRC acts as NSHRI’s agent to marketand promote harness racing in Nova

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Scotia. NSHRI manages ALCHRC’s activi-ties through its approval of annual plansand related operating and capital budgets.

NSHRI funds ALCHRC’s involvement inharness racing in Nova Scotia from theNova Scotia Harness Racing Fund, a specialfund created pursuant to the Nova ScotiaHarness Racing Incorporated Regulationsmade under the Provincial Finance Act andthe Gaming Control Act. NSGC contributesto the fund as authorized and directed bythe Minister of Finance.

Mission

As NSGC delegates its day-to-day opera-tions to its operators, ALC and MEG, thismission statement implies the following:

• Both ALC and MEG operate in an effec-tive and efficient manner to maximizetheir revenues to NSGC.

• Both ALC and MEG comply with the

requirements of the Criminal Code ofCanada, the Gaming Control Act and theRegulations.

• Both ALC and MEG respond to the poli-cy and strategic direction provided byNSGC.

The corporation is managed by a Board ofDirectors of three to five persons. The cur-rent board consists of three members. Inaccordance with the Gaming Control Act,the board reports to the Minister ofFinance on a quarterly and annual basis.

1999–2000 Goals in ReviewIn the 1999–2000 business plan, NSGCestablished a number of goals and pro-gram priorities. This section provides anoverview of key goals and the related actu-al performance in 1999–2000.

Corporate Goals1.To achieve a total net income of

$147.2 million (excluding win tax of$15.5 million paid directly to theProvince of Nova Scotia).

Based upon actual results to January31, 2000 (casino) and February 29,2000 (ALC) and projections to year-end,including the adjustments resulting

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To conduct and manage gaming

in Nova Scotia to maximize

net revenues to Nova Scotia

in a responsible manner.

from the agreement in principle withALC, $152.8 million is expected to beachieved (excluding the Casino Win Taxof $16.1 million to be paid directly tothe Province of Nova Scotia).

2.To complete a five-year corporatestrategic plan.

The five-year corporate strategic planwas deferred due to the suspension ofNSGC’s intended withdrawal of its videolottery and ticket lottery businessesfrom ALC. This project will bereassessed following completion of thecontracts to support the agreement inprinciple reached January 21, 2000regarding NSGC’s continued participa-tion in ALC.

3.To have a new CEO in place.

A new CEO has been appointed.

Ticket Lottery Goals4.To achieve revenues of $196.6 million.

This goal may not be achieved, andbased on results to February 29, 2000,ticket lottery revenues are projected tobe $196.2 million.

5.To achieve a net profit of $43.1 million.

Based on results to February 29, 2000,ticket lottery profit is projected to be$44.0 million.

Video Lottery Goals6.To achieve net revenues of $138.8

million.

Based on results to February 29, 2000,net revenues are projected to be $139.4million even though the VLT redeploy-ment initiative, representing an addition-al $1 million in net revenues, has beensuspended. This is due to continuedrevenue increases due to the timely andeffective management of VLT inventory,software upgrades, and increased playerdemand.

7.To achieve a net profit of $97.6 million.

Based on results to February 29, 2000,net profit is expected to be $100.7 million.

8.To achieve a net revenue of $803 perVLT per week.

Net revenue per VLT per week for theperiod April 1, 1999 to February 29,2000 was $820.

Casino Gaming Goals9.To achieve an average net win of $924

per table per day for Halifax and $357for Sydney.

Based upon operating results toJanuary 31, 2000, net win per table forHalifax is currently $919 per day, $5behind budget but $94 ahead of the

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Based upon operating results toJanuary 31, 2000, net win per slot forSydney is currently $202, $11 ahead ofbudget and $10 ahead of the previousyear. Slot revenues for the period todate are $21.6 million, approximately$1.2 million ahead of the prior year. Thenumber of slot machines on average inthe prior year was 351, and 353 for thecurrent year.

11. To complete the construction of thepermanent casino in Halifax not laterthan January 2000.

According to MEG’s current construc-tion schedule, construction is expectedto be completed on April 24, 2000.

Harness Racing Goals12. NSGC’s financial contribution not to

exceed $1.8 million for this year.

This original goal of $1 million infinancial contribution will not beachieved, as it is expected that theactual loss to March 31, 2000 will be$1.8 million. Wagering, and specifical-ly wagering on live races at the race-tracks, is expected to be well belowbudget.

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prior year. However, table revenues of$9.0 million for the year to date are onlyslightly higher than the prior year, byapproximately $100,000. The significantincrease in win per day over the prioryear is due to fewer tables on the floor.The number of tables on average in theprior year was 36, while during the cur-rent year the average is 32.

Based upon operating results toJanuary 31, 2000, net win per table forSydney is currently $302 per day, $55less than budget but $7 ahead of theprevious year. However, table revenuesof $1.2 million for the current period todate are lower than the prior year by$186,000. The increase in net win perday over the prior year is due to fewertables on the floor. The number oftables on average in the prior year was16, while during the current year theaverage is 14.

10. To achieve an average net win of$212 per slot machine per day forHalifax and $191 for Sydney.

Based upon operating results toJanuary 31, 2000, net win per slot forHalifax is currently $214, $2 ahead ofbudget and $16 ahead of the previousyear. Slot revenues for the period todate are $36.8 million approximately$3.3 million ahead of prior year. Thenumber of slot machines on the floor ison average the same as prior year, 568.



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1999–2000 Financial ResultsProjected Operating Results to March 31, 2000 ($,000)

1999–2000 1999–2000 1998–99Revenues Revised Budget Projected Actual

Atlantic Lottery Corporation (1)

Ticket lottery $196,610 $196,239 $187,037

Video lottery 138,821 139,400 130,182

Revised profit allocation –– 4,200 ––

Payment from New Brunswick –– 500 ––

Halifax Casino Nova Scotia

Casino 51,397 53,784 50,192

Beverage, food and other 1,175 1,760 1,317

Late completion fee 1,970 –– ––

Sydney Casino Nova Scotia

Casino 26,005 26,795 25,686

Beverage, food and other 1,765 1,837 1,751

Interest on HST dispute –– 1,193 ––

Interest income –– 207 ––

Total Revenues $417,743 $425,915 $396,165

Expenses

Atlantic Lottery Corporation

Ticket lottery expenses

–Prize expense $101,731 $101,978 $100,632

–Retailer commissions 18,291 18,265 16,743

–Corporate operating costs 33,488 31,962 30,993

Video lottery

–Retailer commissions 29,704 29,750 32,839

–Corporate operating costs 11,474 8,950 8,591

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Projected Operating Results to March 31, 2000 ($,000) (continued)


Casino win tax 10,280 10,757 10,038

Operating 25,819 26,282 25,341

Payments to operator 6,278 7,018 7,026


Casino win tax 5,201 5,359 5,137

Operating 14,564 13,942 13,558

Payments to operator 5,997 6,168 6,459

Special Payments

Responsible Gaming Program –– 539 ––

Harness Racing Fund 1,800 1,800 1,986

NS Gaming Foundation 692 692 762

Sport & Recreation Commission 100 100 100

Department of Agriculture & Marketing 50 50 50

Department of Education and Culture 50 50 50

NSGC management expenses 2,199 2,300 1,630

Ticket and Video Lotteries –– 1,275 ––Repatriation Costs

Total Expenses $267,718 $267,237 $261,935

Net Operating Income $150,025 $158,678 $134,230

Income Guarantee—Repayment to Operator (2,784) (5,866) (1,663)

Net Income $147,241 $152,812 $132,567

Total Payments to Province of Nova Scotia

NSGC net income $147,241 $152,812 $132,567

Casino win tax 15,481 16,116 15,175

$162,722 $168,928 $147,742

(1) On September 15, 1999 NSGC was requested to provide for the Minister of Finance an updated 1999–2000 Operating Budget, which revised net income from $144,974 to $147,241.


2000–01 GoalsCorporate Goals1.To achieve a total net income of

$157.8 million, excluding casino wintax of $19.0 million paid directly to theProvince of Nova Scotia.

2.To complete a five-year CorporateStrategic Plan.

Ticket Lottery Goals3.To achieve a net profit of $58.8

million.

Video Lottery Goals4.To achieve a net profit of $106.8

million.

5.To achieve an average net revenue of$882 per VLT per week.

Casino Gaming Goals6.In Halifax, to achieve an average net

win per table per day in excess of$968. In Sydney, to achieve an averagenet win of $349 per table per day.

7.In Halifax, to achieve an average netwin per slot per day in excess of $222.In Sydney, to achieve an average netwin of $192 per slot per day.

Harness Racing Goals8.To evaluate and implement, where

appropriate, the recommendations ofthe independent review of ALCHRC’scontinued involvement, if any, in theharness racing industry in NovaScotia.

In late March 2000, government made adecision to provide financial support tothe Nova Scotia harness racing industry.The responsibility and accountability forthis support will now reside with theDepartment of Agriculture and Marketing.The financial support will be up to $1 mil-lion for fiscal year 2000–01. The mecha-nism for flowing the money and theaccountability structure to ensure theappropriate disposition of the funds hasnot yet been finalized and will be deter-mined in consultation with stakeholdersover the next two months.

2000–01 ProgramsCorporate Programs1.To amend agency agreements with ALC.

NSGC’s agency agreements with ALCwill be amended to better reflect ALC’srole as the operator for NSGC’s ticketlottery and video lottery businesses inNova Scotia, subject to NSGC’s over-sight and direction. These agreements

140


will reflect Nova Scotia law and NovaScotia policy considerations. Theseagreements will also take into accountcertain functions common to allprovinces, such as human resources,premises, and finance and administra-tion. ALC’s corporate governance will beamended to give effect to the unique-ness of Nova Scotia’s agency relation-ship as well as a common shareholderrelationship as described above.

2.To complete an efficiency study of ALC.

The shareholders of ALC have agreedthat an efficiency study will be conduct-ed by external consultants to ensurethat ALC’s operations are effective andefficient in carrying out its agency role.The external consultants will beengaged by the board of ALC, and thisengagement will be led and managed bythe board.

3.To complete a five-year CorporateStrategic Plan.

In 2000–01, NSGC will continue the cor-porate strategic planning process thatincludes the following key activities:

• define overall corporate directionsincluding the development of a mis-sion statement, values of the organi-zation, and corporate objectives andstrategies

• develop annual goals and programsfor the five-year planning period

• define resource requirements for theimplementation of its strategies andprograms

• develop an implementation plan forNSGC’s new directions and strategies.

4.To complete an organizational review.

One of the corporate programs includedin the 1999–2000 business plan was tocomplete an organizational review andconsider the strategic direction forNSGC. This project was on hold due tothe suspension of NSGC’s intendedwithdrawal from ALC and will resume in2000–01.

5.To implement and enhance theCorporate Communications Strategy.

Public accountability and full and timelydisclosure of information are recognizedas an integral part of NSGC’s business.This year, the corporate communicationsstrategy will be further implemented toaccomplish these business objectives.New initiatives to address publicaccountability and disclosure of infor-mation will include the following items:

• the creation of a corporate website asa means for better communicationwith stakeholders

• the development of a public speakingprogram for the CEO.

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Corporate communications will bedirected at establishing NSGC as aCrown corporation responsible for theconduct and management of the busi-ness of gaming as distinct from:

• the government, which is responsiblefor public policy issues related togaming

• NSAGA, which is responsible for theregulation, licensing, and study ofgaming

• NSGC’s operators, MEG and ALC,which are responsible for the day-to-day operations of NSGC’s gamingbusinesses.

The annual report and the annual busi-ness plan will continue to serve as keyinformation tools for NSGC. Distributionof these key corporate documents willbe expanded. Regular communicationswith stakeholders will be enhanced.

Media relations will remain a priorityand NSGC will provide full and timelydisclosure of information in response tomedia inquiries.

6.To investigate the possibility ofupgrading NSGC’s financial accountingand reporting system.

7.To complete a review of the video andticket lottery regulations.

During 1999–2000, NSGC examinedexisting regulations related to ticket andvideo lotteries and identified areas forpotential regulatory amendment toenhance the existing regime. NSGC willcontinue with this examination in2000–01.

8.To identify and explore businessdevelopment opportunities.

Consistent with NSGC’s mandate tomaximize revenues in a responsiblemanner, NSGC will explore new revenueopportunities and strategies to enhancefuture growth.

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143

2000–01 Operating Budget($000)

2000–01 1999–2000Revenues Budget Projected


Ticket lottery $210,938 $196,239

Video lottery 149,300 139,400

Revised profit allocation –– 4,200

Payment from New Brunswick 500 500


Casino 67,083 53,784

Beverage, food and other 7,711 1,760


Casino 28,110 26,795

Beverage, food and other 1,717 1,837

Interest on HST dispute –– 1,193

Interest income –– 207

Total Revenues $465,359 $425,915

Expenses


Ticket lottery

–Prize expense $110,676 $101,978

–Retailer commissions 16,895 18,265

–Corporate operating costs 24,606 31,962

Video lottery

–Retailer commissions 31,900 29,750

–Corporate operating costs 10,600 8,950

General overhead 9,117 ––



2000–01 Operating Budget ($000) (continued)

2000–01 1999–2000Expenses Budget Projected


Casino win tax 13,417 10,757

Operating 44,180 26,282

Payments to operator 16,855 7,018



Operating 14,754 13,942

Payments to operator 6,023 6,168

Special Payments

Responsible Gaming Program 200 539

Harness Racing Fund –– 1,800

NS Gaming Foundation 608 692

Sport & Recreation Commission 100 100

Department of Agriculture & Marketing 50 50

Department of Education and Culture 50 50

NSGC management expenses 2,500 2,300

Ticket and Video Lotteries –– 1,275

Repatriation Costs

Total Expenses $308,153 $267,237

Net Operating Income $157,206 $158,678

Income Guarantee—

Repayment to Operator 574 (5,866)

Net Income $157,780 $152,812

Total Payments to Province of Nova Scotia

NSGC net income $157,780 $152,812


$176,819 $168,928

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Assumptions/Comments1. ALC has prepared a business plan and budget for

2000–01. The business plan has been approved by theBoard of Directors of ALC, however the operating andcapital budgets have not yet been approved. NSGC’s bud-get is based on the unapproved ALC budget. NSGC’s bud-get will be revised, if warranted, at such time as ALC’soperating and capital budgets are approved by the Boardof Directors of ALC.

2. The budget assumes that the repatriation of the ticket andvideo lotteries will not take place and has incorporatedestimates regarding the Agreement in Principle on therevised profit-sharing arrangement with ALC. As a result,$4.4 million has been included as an estimate of theexpected profit under the new arrangement for 2000–01.Additionally, NSGC is projected to recover $500,000 in thenext three years (2000–01, 2001–02, and 2002–03) fromNew Brunswick in lieu of a retroactive adjustment.

The 1999–2000 projections are presented on the basis ofthe previous profit-sharing formula. NSGC has included aone-line adjustment of $4.2 million to reflect the impact ofthe new formula. The 2000–01 budget is presented on thebasis of the new profit-sharing formula agreed to by theshareholder provinces on January 21, 2000. Accordingly,no line adjustment was required.

The budget includes $1,257,400 in lease expense andother costs related to significant capital projects underway at ALC for Nova Scotia.

3. On December 15, 1999, NSGC wrote to MEG indicatingthat it objected to, and did not approve, specific aspects ofthe operating budget. Based on the information it hadbeen provided to December 15, 1999, NSGC was unableto satisfy itself that the revenues projected and a numberof the expense line items for the Halifax permanent casinocomplex were reasonable and that the budget was thatwhich would be expected to be provided by a reasonableand prudent operator of a first-class casino and relatedfacilities.

NSGC has prepared its 2000–01 operating budget for theHalifax permanent casino for revenue and expense projec-tions by utilizing a growth in gaming revenues over theinterim of 25 per cent and an increase in the food/beverageand other revenues of 10 per cent. The expenses wereadjusted accordingly to reflect a gross operating profit mar-gin of approximately 44.8 per cent. MEG has indicated thatthese projections would be an optimistic outcome for thefirst year of operations for the Halifax permanent casino.

4. Sydney casino revenues and expenses are estimatedbased on MEG’s 2000 business plan and operating budgetadjusted for HST.

5. In late March 2000, government made a decision to pro-vide up to $1 million in financial support to the NovaScotia harness racing industry in 2000–01. These fundsare to be provided by NSGC as directed by government.The 2000–01 Operating Budget does not reflect this pay-ment because NSGC’s net income figure of $157.8 millionhas already been submitted to the Department of Financeto complete the government’s revenue estimates. In orderto reconcile to the estimates, the $ 1-million funding isnot included in NSGC’s expenses at this time. This adjust-ment will, however, be incorporated into the government’sfirst quarter forecast ended June 30, 2000.

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Nova Scotia Government Fund LimitedBusiness Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150Core Business Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151Budgeting Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151

147


IntroductionThe NSGF is a vehicle for foreign investorsto invest in businesses located in NovaScotia while meeting the qualifications ofinvestors as Canadian permanent resi-dents under the Business ImmigrationProgram of the Government of Canada.

The Nova Scotia Government Fund Limited(NSGF) was incorporated on December 16,1994, under the Companies Act (NovaScotia). It was approved by Citizenship andImmigration Canada as a government-administered venture capital fund pursuantto the Immigration Regulations (1978).

Individuals who had successfully operat-ed, controlled, or directed a business orcommercial undertaking were able to sub-scribe to the NSGF subject to a number ofconditions. The minimum investment is$250,000 and cannot be subject to a guar-antee and is not refundable for the mini-mum holding period.

The January 4, 1996 offering memoran-dum imposed certain investment and poli-cy restrictions that have imposed invest-ment difficulties on the NSGF. The offeringstates, “The Fund will be restricted tomaking investments directed to the priva-tization of public services and may include

operation of food services in hospitals,laboratory services to health care facilitiesand other projects that will result in eco-nomic benefit to Nova Scotia.”

Investors who subscribed for one or morenotes could qualify for Canadian perma-nent resident status along with theirspouses and dependents. The maximumoffering was for $35,000,000. The NSGFraised $25,750,000 representing 103investors, of which $18,025,000 isrequired to be invested in qualified pro-jects. The balance ($7,725,000 net of sub-scription and operating costs) is requiredto be invested in liquid Canadian securities.

Federal legislation requires that the fundsbe invested within nine months from dateof receipt and be invested for a five-yearperiod. All investments were to have beenmade by March 1999. The first successfulinvestment was made in July 1999.Qualified investments for the remainderdid not materialize. As a result, theremaining funds were safely placed wherethey could be accessed should a qualifiedinvestment opportunity occur. Immigrantswill receive a return of the their investmentwith the fund (the investors all holdProvince of Nova Scotia unsecuredpromissory notes).

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Nova Scotia Government Fund Limited

Federal guidelines stipulate that the NSGFcan lend only to companies with less than$35,000,000 of assets and that the NSGFinvest in at least two projects. In additionto adhering to federal legislation, invest-ment opportunities are limited to alterna-tive service delivery initiatives as set out inthe prospectus for the initial offering.

The combined federal/provincial require-ments for investment have made thesefunds exceptionally difficult to invest. As aresult, the directors of the NSGF were notable to place the money in qualified invest-ments within the required time frame. Forthe past 22 months, the directors of thefund and senior staff have devoted consid-erable time, money, and effort to trying tobring the fund into compliance. To date, anddespite concentrated effort, only one invest-ment has been made. As the NSGF wasunable to place any of the money within therequired time frame it is in breach of thefederal guidelines. Over 20 projects wereconsidered but for a variety of reasons didnot meet all of the federal and provincial cri-teria for investment. This matter has beenraised with the federal Minister forCitizenship and Immigration. The directorsof the fund are confident that continuingdialogue between the two levels of govern-ment will lead to a satisfactory resolution.

Mission

Strategic GoalsFederal and provincial investment criteriahave limited suitable investments.

In light of the above, the goals for theNSGF for the fiscal year 2000–01 are

Goal 1

To ensure that the funds of all investorsare safely invested.

Goal 2

To direct the Nova Scotia Department ofFinance to continue to invest any moneynot invested in a qualified project in liquidCanadian securities until such time as theinvestors’ promissory notes become due.

Goal 3

To repay investors when their notesbecome due (i.e., starting March 2002).

150


To fund alternative service delivery

initiatives for government.

Goal 4

To take advantage of investment opportu-nities should they arise.

Core BusinessFunctionThe core business function of the NSGF isto invest the funds raised through the offer-ing memorandum in qualified investmentsas outlined by both Citizenship andImmigration and the offering memorandum.

Priorities 2000–01The priority for the near term is to ensurethat the funds belonging to the immigrantinvestors are safely and soundly invested.

Human ResourcesThe NSGF has no employees. Governmentof Nova Scotia employees are involvedwith the investment-related activities.

Budgeting ContextExpenses incurred by the NSGF are offsetagainst interest earned by investments.

151

Nova Scotia Government Fund Limited


Mission Note:

The 2000–01 Business Plan for NovaScotia Harness Racing Incorporated isincluded within the Business Plan of theNova Scotia Gaming Corporation.

153

Nova Scotia Harness Racing Incorporated

To conduct and manage Nova Scotia’s

involvement in the harness racing

industry and to administer the Nova

Scotia Harness Racing Fund

(the “Fund”), a special fund as

defined by s. 2(n) of the Provincial

Finance Act, in accordance with the

Nova Scotia Harness Racing

Incorporated Regulations, through

management and administrative

support provided by the

Nova Scotia Gaming Corporation.


Nova Scotia Housing Development CorporationBusiness Plan 2000–01

ContentsMission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157Performance in 1999–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .158Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .158Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160Outcomes and Outcome Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160

155

157

Nova Scotia Housing Development Corporation

Mission

Strategic GoalsBroadly stated, the goals of the corpora-tion are to support departmental goals topromote and establish housing projectsfor low-income families, seniors, students,and other persons or groups that in theopinion of the department require assis-tance. The corporation does this by

Goal 1

Hold and finance provincially owned socialhousing assets.

Goal 2

Provide financing to the department forhousing programs.

Goal 3

Guarantee loans to purchase or constructsocial housing assets that support thedepartment’s objectives.

Core BusinessFunctionsThe core business functions of the corpo-ration are to

1.Hold title to the physical assets of theprovince’s social housing portfolio.

2.Manage the federal funding for socialhousing pursuant to the Social HousingAgreement of December 1997.

3.Provide mortgage guarantees and/orloans to qualifying sponsors for housingprojects that further the department’sgoals.

4.Manage the funded reserves associatedwith housing programs to protect theprovince from loss through its directand/or contingent liabilities relating toits housing activities and to the SocialHousing Agreement.

5.Generate interest income in excess ofinterest expense.

To support the Department of

Housing and Municipal Affairs

by holding social housing assets

and arranging financing to

obtain social housing assets.

The corporation also provides loan

guarantees to qualifying housing

sponsors with a demonstrated need

and an inability to secure

favourable private-sector financing

without such a guarantee.

158


Performance in1999–2000This was the first full fiscal year in whichthe corporation was responsible for theaccounting for rural and native housingassets, which were transferred to theprovince by the Social Housing TransferAgreement in October 1997. This was atremendous increase in responsibilities,which was met by department staff.

The Housing Development Corporation iseffectively managing its borrowing by refi-nancing debt at lower rates. This has suc-cessfully resulted in an increase in inter-est revenue versus interest expense andindicates that the corporation is effectivelymanaging its debt.

The Office of the Auditor General’s1998–99 Management Letter regardingthe Housing Development Corporationwas very positive. Audit recommenda-tions support plans to consolidate theHousing Development Corporation andthe Housing Development Fund in1999–2000 and to strive for increasedPublic Sector Accounting Board (PSAB)compliance. To this end, a rationale andrecommendation to consolidate the

Housing Development Fund and the NovaScotia Housing Development Corporationis to be submitted to government duringthe 1999–2000 fiscal year.

Priorities for2000–01Priorities for 2000–01 include

• Consolidate the full costs of socialhousing programs and their administra-tion into the financial statements of thecorporation.

• Manage the financial requirements ofthe social housing programs for whichthe corporation was established.

• Develop management reports for inter-nal use that meet the decision-makingneeds of senior management.

• Increase compliance with the PSAB recommendations for public-sectororganizations.

• Monitor and evaluate the financingoptions available to the corporation inan effort to improve the net incomebefore administration fee earned by thecorporation.

• Promote a central financial manage-ment system that will serve the finan-cial reporting and budgeting needs of

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Nova Scotia Housing Development Corporation

the Housing Development Corporation,the department and regional offices,and the housing authorities.

Human ResourcesThe corporation does not have anyemployees.

The corporation’s business is adminis-tered by the staff of the Housing ServicesDivision of the Department of Housingand Municipal Affairs and the FinancialServices Group of the Department ofBusiness and Consumer ServicesCorporate Service Unit.

The Minister of Housing and MunicipalAffairs is the corporation’s Chairman. TheDeputy Minister of Housing and MunicipalAffairs is the corporation’s President.

Financial ServicesFinancial Services are provided to the cor-poration by the Financial Services Groupwithin the Department of Business andConsumer Services Corporate ServiceUnit. The corporation is primarily anaccounting entity, which the FinancialServices Group supports by providingprofessional financial services and advice.

CommunicationsThe corporation issues annual auditedfinancial statements, which are includedin the Public Accounts of the Province ofNova Scotia.

InformationTechnologyThe corporation is continuing to integratethe province’s Corporate FinancialManagement System with the depart-ment’s operating systems.

160


Outcomes andOutcome MeasuresThe success of the corporation is mea-sured by its ability to meet the financialrequirements for past and current provin-cial housing program initiatives.

Its success is also measured by its abilityto generate the net interest revenue estimated at the beginning of the year.Many variables affect whether or not thisrevenue is achieved. Factors affecting theoutcome include the provincial borrowingrate, the personal decision of clients toprepay housing loans, and the interestrates charged by the private sector.

The corporation’s ability to manage thefinancial implications of the social housingtransfer will be measured throughimproved financial disclosure andimproved support for business decisionsmade by the department.

Budget1998–99 1999–2000 1999–2000 2000–01Actual Estimate Forecast Estimate

$1,309,033 $600,000 $1,900,000 Corporation Recovery $1,700,000


161

Nova Scotia Liquor CommissionBusiness Plan 2000–01

ContentsMission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163Strategic Goals and Strategies for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169Financial Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176Key Operating Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177

Human Resources Management Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177Communications Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178Long-range Information Resource Management Plan . . . . . . . . . . . . . . . . . . . . . . . .181Customer Service Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182

Performance Review for 1999–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184

163

MissionThe Nova Scotia Liquor Commission regulates the sale of liquor products underthe authority of the Liquor Control Act.

The management and staff of the NovaScotia Liquor Commission are dedicatedto the principles of the mission statement.

Core BusinessFunctionsCustomer Service• Distribute quality-controlled products

and deliver services that are cost effec-tive, value added, customer oriented,and market driven, through a network ofstrategically positioned retail stores.

Financial Responsibility• Generate revenue for the Province of

Nova Scotia as a retailer through effi-cient financial and properly controlledoperating practices.

Social Responsibility• Ensure that we control the use of bever-

age alcohol and serve our stakeholdersin a socially responsible manner byimplementing and participating in pro-grams that portray responsible-usemessages to the public.

Executive Summary1999–2000 Fiscal Year UpdateThe NSLC, one of the largest retailers inAtlantic Canada, projects that it will delivernet income of $135.9 million for the cur-rent fiscal year, an increase of $4.4 millionover the $131.5 million budgeted for the

Nova Scotia Liquor Commission

• To operate in a socially

responsible manner

• To provide responsive and

progressive consumer service

with a variety of quality-

controlled products in

modern facilities

• To generate revenue as a

retailer through efficient

financial and operating

practices

• To provide our employees

with progressive management,

equality of opportunity and

career development

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year. Both volume and sales dollars areprojected to show an increase versus bud-get for the fiscal year. The excellent1999–2000 fiscal year performance was,in large measure, the result of exceptionalvolume increases in key product cate-gories. Positive response to the many cus-tomer-oriented in-store promotions andmerchandising activities and a favourableeconomic environment combined to pro-duce volume results that were the best inover a decade. Volume in the spirits cate-gory showed moderate growth, while wineand the developing cooler category contin-ued their positive trends. The major influ-ence on current year volume growth wassales increases in the large beer category.This product segment responded, as didother categories, to positive economicconditions and also benefited from theexcellent weather conditions existing inNova Scotia from the early spring to fall.

Sales dollar projections for 1999–2000 of$371.0 million exceed by 5.49 per cent the$351.7 mill ion actually achieved in1998–99. The NSLC has continued itsconservative approach to price increasesto benefit customers and assist in stem-ming the historical volume declines.Ongoing merchandising programs such as

short-term price reductions, monthly dis-play features, and added-value offers thatwere implemented throughout the yearprovided customer value and contributedto the over-achievement of budgeted vol-ume and sales targets. Other major NSLCprojects and programs have been execut-ed as planned for 1999–2000.

Profit targets will exceed budget due toincreases in volume and sales versus bud-get, combined with continued cost con-tainment.

Actual Budget Projection1998–99 1999–2000 1999–2000

Volume (Hectos) 695,292.4 709,311.5 723,552.8

Sales (,000s) 351,662.0 362,984.1 371,021.6

Net Income (,000s) 129,223.4 131,535.0 135,947.0

Business Environment2000–01The NSLC budget for the 2000–01 fiscalyear is based on continued volume growthand the expectation that the positive eco-nomic outlook for the province will materi-alize. The NSLC will continue to focus theresources of the organization on activitiesthat are designed to improve customerservice, achieve volume targets, andimprove revenues. Managing these issuesis of utmost priority, as they are critical tomaintaining both short- and long-term

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NSLC revenue streams. Each 1 per centchange in volume impacts net income byapproximately $1.4 million.

The organization has been in a cost-con-tainment and right-sizing mode for a num-ber of years. These efforts have been verypositive in allowing the organization tocontinue to meet profit targets and benefi-cial in offsetting cost increases in areas ofthe business that are affected by outsideinfluences. Activities in these areas willcontinue, but the impact will be moderateas there are few significant short-term,cost-reduction opportunities without pur-suing substantial structural change in theway the NSLC delivers its services. Labourcontracts are subject to renegotiation andbecome effective with the start of the newfiscal year.

The market and operating environmentdictates that the NSLC pursue a creativeand proactive approach to its various pro-grams while continuing the focus on costcontainment to achieve the major objec-tives of the 2000–01 business plan andbudget:

• commitment to customer service

• deliver a net income of $141.0 million

• focus on sales volume achievement

• strong financial management

• minimize operating costs and increaseeffectiveness

• maintain net income operating ratios inexcess of 36 per cent of sales

The NSLC budget for the fiscal year2000–01 reflects volume increases withimprovements in sales dollars, gross mar-gin, and net income versus prior year pro-jections:

Projected Budget % 1999–2000 2000–01 Change

Volume (Hectos) 723,552.8 729,903.8 0.88

Sales (,000s) 371,021.6 380,623.2 2.59

Gross Margin (,000s) 184,212.2 190,124.2 3.21

Net Income (,000s) 135,947.0 141,047.6 3.75

VolumesThe volume projections (in hectolitres)contained in the 2000–01 budget havebeen forecasted as follows for major NSLCcategories: (Hectos)

Projected Budget % 1999–2000 2000–01 Change

Spirits 50,130.1 50,715.7 1.17

Wine 50,235.5 53,216.1 5.93

Beer 609,696.6 610,777.4 0.18

Coolers 13,490.6 15,194.6 12.63

The wine and cooler categories are showingpositive growth trends, and it is expectedthat this will continue during the 2000–01fiscal year with minimal growth projected


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for other categories. Volume growth projec-tions outlined for the 2000–01 fiscal yearmay appear to be moderate, but they areincreases over the most successful volumeperiod in more than 10 years for the NSLC.Positive economic trends, in-store customermerchandising activities, the impact of out-standing weather on sales in the large beercategory, and the sales impact of the millen-nium year, all combined to positively affectthe 1999–2000 base year on which the bud-get is based.

The NSLC will continue to execute market-ing and merchandising programs that sup-port category trends over both the shortand longer term.

Sales DollarsSales dollars of $380.6 million are budget-ed to show an increase from the projected$371.0 mill ion in fiscal 1999–2000.Budgeted sales dollars reflect categorymix projections and continued plans touse merchandising programs that supportmarket and customer purchase trends inthe various product sectors. Emphasis willcontinue to be placed on exploringincreased volume potential in the wine andcooler segments while maintaining stronglevels of support for the key beer and spir-it categories.

Net Operating IncomeBudgeted net income is projected toincrease in the 2000–01 fiscal year. Thebudgeted increase of $5.1 million willresult in a net income of $141.0 millionversus a projection of $135.9 million forthe current fiscal year, continuing thetrend of increased profit delivery versusthe prior year.

Operating ExpensesTotal net operating expenses of $49.1 mil-lion show a minor increase of 1.7 per centover the $48.3 mill ion projected for1999–2000. There will continue to beupward pressure, although it is expectedto be moderate, on costs associated withthe operation of a retail store network.Management will continue to pursue anyfurther opportunities for either short- orlong-term cost reductions during thecourse of the budget year. The NSLC hasmade significant improvements in costcontainment and efficiency over the pastnumber of years while still investing inretail facility improvement and customerservice programs. Further cost savings ofsignificant magnitude will be increasinglydifficult to achieve as the organization isvery close to its right-sizing targets.

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Capital spending is budgeted at $2.3 mil-lion, a decrease versus the budget of $2.5million for 1999–2000. The bulk of capitalspending at the NSLC is directed at main-tenance and improvements in the storesystem, maintaining the asset value, andprojects that lead to increased efficiencywith relatively short payback periods suchas store rightsizing at time of leaseexpiries, an objective of the NSLC long-range Physical Resource Plan.

The 2000–01 budget has again beendeveloped with a conservative approach toNSLC-initiated price increases. Sales andgross margin performance will be closelymonitored to make sure that the NSLC isnot falling behind target. If sales projec-tions prove to be too aggressive, pricingoptions along with expenditures will bereviewed to ensure that the budgeted netincome is delivered. Normal ongoing pric-ing activity, i.e., manufacturers’ pricechanges, exchange fluctuations, freightadjustments, etc., will continue to beimplemented in the normal fashion. TheNSLC will continue to utilize merchandis-ing programs and work with suppliers tomitigate upward price pressures.

Opportunities/StrategiesThe NSLC’s focus is continuous improve-ment throughout the organization in orderto meet the immediate needs of deliveringthe 2000–01 budget and pursue longer-term opportunities and strategies. Thereare a number of key areas that will beexamined on an ongoing basis.

• Sales activities that reflect a retail stafffocus on volume-building merchandis-ing activities, recognize the needs of dif-ferent segments of the customer base,and provide a product mix that bestaddresses the shopping profile, spaceutilization, and profit opportunities ineach store location.

• Store locations and formats thataddress different customer servicerequirements and are consistent withthe NSLC short- and long-term physicalresource strategic plan.

• Merchandising activities that are con-sistent with a category managementapproach, generate excitement, areresponsive to new trends, meet cus-tomer expectations, and are consistentwith the organization’s revenue-genera-tion objectives.

• Employee training modules that arerelevant, effective, and delivered on atimely basis; directed at organizationalor individual needs; and focused on


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enhancement or support of the keyretail sales activities of the organization.

• Technology improvements that are dri-ven by external and internal customerneeds, support efficiency and profitobjectives, or support more effectivemanagement analysis.

• Organizational Structure and employeecomposition that is team oriented, effec-tive in a changing environment, and flex-ible enough to meet increased demandswith the same or fewer resources.

Long-Term Projections(2000–01 to 2003–04)

Environment

The retailing and marketing environmentfor beverage alcohol products is not projected to undergo any significantchanges during the period of this plan.The beverage alcohol industry is a matureone, with any gains from a total volumeperspective being those of a moderateincremental nature versus significantchanges in overall growth patterns. Thewine and cooler sectors of the industrywill continue to provide some growthopportunities, with increases in the largebeer and spirits segments expected to beminimal.

Projection

This environment continues to point to sta-ble overall trends in volume. Longer-termprojections also continue to reflect moder-ate NSLC-initiated price increases in orderto minimize volume erosion. Ongoingefforts to contain costs are also an integralpart of these projections as are the contin-ued implementation of in-store merchan-dising and promotion programs that pro-vide value to our customers plus generatecompetitive activity for the many productsavailable in the Nova Scotia marketplace.

The NSLC will continue to review progressagainst these assumptions and adjust itsplans accordingly to take advantage of anycustomer service, volume or cost reduc-tion opportunities that may arise. The fouryear projections outlined below are areflection of the current and anticipatedmarket environment and assume a similarNSLC structure during the life of the plan:

2000–01 2001–02 2002–03 2003–04

Volume 729,903.8 736,486.7 743,154.6 748,615.4(Hectos)

Sales ($) 380,623.2 387,128.6 394,783.9 401,831.7

Net 141,047.6 143,808.5 147,137.8 150,160.9Income ($)

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Strategic Goals andStrategies for 2000–01NSLC’s long-term strategy will be to focuson continuous improvement throughoutthe organization in order to meet short-term needs and also to pursue longer-term opportunities and strategies.

Sales/Volume/Net Operating IncomeObjective

To pursue opportunities to increase vol-ume growth and dollar sales in a maturebeverage alcohol market while improvingabsolute profit ratios and expense ratiosfrom the base year.

Strategies

1.Capitalize on the existing growth needsand market development opportunitiesfor wine.

Programs/Projects

Port of Wines Program: Continue tomaximize customer service, revenue,and public relations’ opportunities. Thetarget market for the Port of Wines isbeing strategically redefined to includethe larger general market wine con-sumer. The marketing mix elements of

product/services mix, price, promotion,and place are being fine-tuned to attractthe larger general market wine con-sumer. The merchandising display activ-ity in the Port of Wines satellite storeswill be expanded and an advertisingplan will be developed, as well as a con-sumer product knowledge course.Measurements for success include pos-itive customer comments, increasedvolume in premium profit wines, andprofit per litre in the wine category com-bined with positive public response.

2.Capitalize on the existing growth of thecocktail category.

Programs/Projects

Refreshment Wine Category: Maximizesales volume and gross profit opportu-nities in this new category by expandingthe mix and executing impulse mer-chandising activity, while ensuring thatvisibility in our retail outlets lends itselfto incremental purchases versus canni-balization of other categories. Shelfmanagement planograms and spaceallocations will be defined and devel-oped to accommodate this new catego-ry. Measurements for success includeincreased sales volume and gross profitin this category.

3.Provide high levels of promotional activ-ity for beer and continue to develop thespecialty beer segment in response toconsumer interest.


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Programs/Projects

Beers of World Program: Continue tomaximize gross profit and customersatisfaction in the international beer cat-egory by expanding the mix, stimulatingsupplier promotional activity and ensur-ing that location, visibility, and access tothe category within the retail store arehighly merchandisable. Measurementsfor success include increased sales vol-ume and profit in this category.

4.Keep NSLC-initiated price increases toless than 1 per cent per annum.

Programs/Projects:

Pricing Policy and Procedures: Reviewthe NSLC pricing policy and procedureson a continuing basis to fine-tuneopportunities for increased revenue andto ensure that the liquor industry istreated fairly, with consistent and impar-tial performance. It is important toensure that NSLC pricing policies andprocedures are conducive to providingcustomers with value-priced productswhile maintaining the level of profitrequired to operate the business effec-tively and efficiently. Measurements forsuccess include an annual businessplan review with major suppliers, in-store availability of value-priced alterna-tives, supplier price adjustments includ-ing increases and decreases and regularmonitoring of pricing factors.

5.Develop programs that will move anincreasing share of volume productspositioned in the premium segment oftheir respective categories.

Programs/Projects

Merchandising Management Program:Continue to pursue opportunities toincrease volume and revenue in a social-ly responsible manner by encouragingthe sale of more profitable categoriesand brands, by supporting impulse-atcash-opportunities, by positioning bev-erage alcohol as a meal complementespecially wine and liqueurs, and bypositioning beverage alcohol as a giftitem, such as Father’s Day, Mother’sDay, Christmas, etc. Measurements forsuccess include increased and activeparticipation of all suppliers in the vari-ous programs, increased profit, positivecustomer comments, and increasedmerchandising revenue.

6.Invest capital only in property or tech-nology that increases revenue, reducescosts, or is mandatory to meeting busi-ness objectives.

Programs/Projects

Energy Management Program: Reduceenergy consumption and standardize tonew energy-efficient technologies.Measurements of success includereduced energy costs, reduction of kilo-watt-hours of energy, and meeting

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target dates assigned at the beginningof the program/project and within bud-geted amount. This is an ongoingprocess

Product Management: Enhancements toour process will continue into next yearwith full roll-out of the automated andintegrated product management sys-tem, thereby eliminating the require-ment for repetitive data input and paper-work while providing timely informationretrieval.

The overriding issues for enhancementof this process is the control of proce-dures and operations and the ability toserve the customer, by providing theemployees of the NSLC with informationthat is accurate, timely, and to the point,but at the same time maintaining thefunctionality and flexibility that address-es the unique needs of the NSLC.Measurements for success includereduced lead-time to perform specificsupply chain functions, elimination ofredundant and non-valued-added activi-ties, reduction in manual errors, andestablishment of well-defined measuresof performance.

Bar Code/UPC: Integration of shippingcontainer codes (SCC) and pallet ship-ping container codes (SSCC-18) will beimplemented in conjunction with theProduct Management System discussedabove. This is an industry-wide compli-

ance initiative that is national and inter-national in scope. This phase is heavilygeared to gaining efficiencies through theentire supply chain, including shipping,receiving, cross-docking, and otherwarehousing practices. Milestones willinclude changes to software programs,acquisition of scanning technology forthe warehouse, and supplier partnering.

7.Pursue changes to process and func-tional structure on an opportunisticbasis to increase efficiency.

Programs/Projects

Focused Retail Execution: Develop spe-cific tasks related to improvements ofend-user processes. Measurements forsuccess include increased productivity atthe retail level, reduction in lead times forcompleting identified user processes,and reduction in customer complaints.

Store Business Development Strategies:Continue to review each retail unit toensure we are generating maximum pro-ductivity and are enhancing the store’sretail and social contribution to its specif-ic trading area. Measurements for suc-cess include expense reduction/contain-ment, positive customer comments,increased public awareness of socialresponsibilities, and improved profits.

Distribution Information System: Theprogram is designed to increase produc-tivity and reduce administrative costs by


deliveries, generating maximum servicelevels with improved turnover rates.Measurements for success includehigher inventory turnover rates,increased service percentage, andstronger customer acceptance aboutproduct availability.

Category Management Program:Maximize average gross profit per prod-uct per category, maintain a competitiveretail environment, optimize customersatisfaction in product selection, ensureequitable treatment of all suppliers, andhonour all applicable trade agreements.Defined product mix/shelf sets will bedeveloped for Class I, II, and III storesthat will standardize the products in thecategory for each store type but willinclude the flexibility to add a definednumber of other products to customizethe product selection to the specificmarket. Measures for success includeincreased customer satisfaction inregards to product selection, revenueincrease that is greater than increase involume, listing approval that is consis-tent with predetermined guidelines, anda competitive marketplace.

2.Continue to provide a wide selection ofpromotional purchase opportunities andpursue innovative ways to encouragecustomer purchases.

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eliminating report duplication and redun-dant procedures through the integrationof various divisional and corporate oper-ating systems. Measurements for suc-cess include the amalgamation of vari-ous intra-departmental processes andprocedures, implementation of a divi-sional database system, and decreasedfreight costs by utilizing a forecastingand rating module.

Alternative Retailing Strategies: Continueto develop alternative retailing strategiesto provide an optimum level of servicefor beverage alcohol consumers in theProvince of Nova Scotia. Measurementsfor success include increased positivecustomer comments, increased rev-enues, and improved public image.

Customer ServiceObjective

To pursue opportunities and programsthat will improve customer service andprofitability while also enhancing theimage of the NSLC as a top quality retailer.

Strategies1.Provide a product mix and selection that

is broad enough to meet the majority ofcustomer needs at a reasonable cost.

Programs/Projects

Enhanced Store-Based InventoryManagement: Improve just-in-time

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Programs/Projects

Merchandising Management Program:Continue to pursue opportunities toincrease volume and profit in a sociallyresponsible manner by encouraging thesale of more profitable categories andbrands, by supporting impulse-at cash-opportunities, by positioning beveragealcohol as a meal complement especial-ly wine and liqueurs and by positioningbeverage alcohol as a gift item, such asFather’s Day, Mother’s Day, Christmas,etc. Measurements for success includeincreased and active participation of allsuppliers in the various programs,increased gross profit by way of premi-um profit brands, positive customercomments, and increased merchandis-ing revenue.

3.Provide customer-friendly store loca-tions that offer a mix of full-service andboutique-type operations where appro-priate.

Programs/Projects

Physical Resource Plan: Determine theproper and appropriate location and sizeof our retail outlets, thus ensuring full uti-lization of space. Measurements for suc-cess include increased sales per squarefoot, disposal of surplus space, reductionof occupancy costs, and increased ratioof retail areas to warehouse areas. This isan ongoing program.

Strategic Site Location: Proactively per-form retail organizational review toensure increased customer service andsatisfaction while increasing profitsthrough proper and appropriate storelocation. Measurements for successinclude a standard set of criteria forstore site selection, incremental profit,and improved expense-to-sales ratios atthe new locations.

4.Improve communications to build posi-tive awareness of the many services andprograms offered by the NSLC.

Programs/Projects

Thematic Project: The NSLC will contin-ue to implement thematic promotions toraise public awareness of the directionsof the organization as a modern, effi-cient retailer of beverage alcohol posi-tioned to exceed the needs of the newmillennium consumer. Measures forsuccess include the increased aware-ness of our customers and public of theprogress of the organization.

Tall Ships Merchandising Program:Support the activities of the Tall ShipsFestival in our stores by developing amerchandising Tall Ships display withthe official beverage alcohol suppliers ofthe event, being a centre of communica-tions for the public and our customerson the events of the festival, and sellingthe promotional Tall Ships Passport to


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our customers. Measures for successinclude the increased awareness level ofour customers of the event and thesales of the product on display.

Management and Staff Retail Skil lDevelopment: To implement, as part ofthe ongoing program, key retail man-agement skills and staff customer skillsto ensure store readiness geared toexcellent merchandise availability, in-store displays, and customer service.Measurements for success include train-ing program participation, more positivecustomer comments, implementation ofmerchandising activity, quality of retailoutlet displays, and increased sales withimproved expense ratios.

Website: Continue to enhance the NSLCwebsite as a communication tool amongthe NSLC , its customers, and the pub-lic. Measurements for success includethe number of visitors to the websiteand any website survey results.

Customer Connection: Develop a retailcustomer newsletter that will providecustomers with detailed information onnew products, general product categoryinformation, sales and promotionalactivities, etc. Initially the newsletter willbe piloted in a few retail stores.Eventually it may be delivered to all ourretail stores and/or delivered throughour website. Measurements for successinclude the consumer’s response to thevehicle.

Social Responsibility Programs: Executeongoing social responsibility programsand develop new ones where appropri-ate in order to ensure that the NSLCoperates in a socially responsible man-ner as a core business function.Continue to expand the ColourfulMessages Campaign as a year-roundprogram. Measures for success includeincreased public awareness of theresponsible use of alcohol, continuationof present programs, and alliances withspecial interest groups.

5.Pursue new products or other programsthat will enhance customer satisfaction.

Programs/Projects

Vendor Performance System: Vendorsare a vital component of the NSLC’ssupply chain. This program will developa structured approach to monitoring,evaluating, and reporting a vendor’sperformance in a number of strategicareas. The objective is to identify oppor-tunities for improvement and to gainefficiencies and cost reductions.Measurements for success include areview of the criteria, communicationswith suppliers and their acceptance ofthe criteria, and supplier tracking docu-mentation.

6.Develop and deliver effective and timelyinternal training programs that are retailsales focused and based on organiza-

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tional needs with an emphasis on highpotential candidates.

Programs/Projects

Customer Service Training Modules:Continue to focus on innovativeapproaches to improve customer ser-vice within the store environment. Thisis combined with a commitment to pro-vide a clean, friendly upbeat environ-ment to shop in. Measurements for suc-cess include the completion of modules,enhanced thematic in-store signing,continuous display activity, and positivecustomer comments.



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Financial Forecast($,000s)

Actual % to Actual % to Budget % to Budget % to 1997–98 Sales 1998–99 Sales 1999–2000 Sales 2000–01 Sales

666,312 695,292 723,553 Volume (Hectos) 729,904

331,868 100.0% 351,662 100.0% 371,022 100.0% Sales 380,623 100.0%

167,563 50.5% 176,451 50.2% 186,809 50.4% Cost of Sales 190,499 50.0%

164,305 49.5% 175,211 49.8% 184,212 49.6% Gross Profit 190,124 50%

Expenditures

30,969 9.3% 32,030 9.1% 33,170 8.9% Store Operating Expense 33,767 8.9%

3,563 1.1% 3,774 1.1% 3,725 1.0% Warehousing & Distribution 3,799 1.0%

5,121 1.5% 3,897 1.1% 3,443 0.9% Depreciation Expense 3,468 0.9%

9,890 3.0% 10,461 3.0% 8,439 2.3% Administrative Expense 8,591 2.3%

1,157 0.3% 514 0.1% 1,061 0.3% Other Expense 1,085 0.3%

5,828 1.8% 5,483 1.6% 2,171 0.6% Other Revenue 2,232 0.6%

1,005 0.3% 794 0.2% 598 0.2% ERIP Expense 598 0.2%

45,877 13.8% 45,987 13.1% 48,265 13.0% Total Expenditures 49,077 12.9

118,429 35.7% 129,223 36.7% 135,947 36.6% Net Operating Income 141,047 37.1%

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Key Operating PlansHuman ResourceManagement PlanObjectives• To obtain and retain quality employees,

who are committed to the organization

• To recruit, promote, train, and provide asafe workplace for NSLC employees in amanner consistent with organizationalneeds.

• To provide a set of terms and conditionsof employment for NSLC employeeswhile maintaining the goals of the orga-nization.

Recruitment

The Nova Scotia Liquor Commission willstrive to recruit the best-qualified candi-dates for all positions and continue toensure that our obligations under theEmployment Equity program are met.

Promotions

The NSLC will strive to ensure that staffare promoted on the basis of skill/abilityand will endeavour to promote the best-qualified candidates.

Training and Staff Development

In this period of reduced staff levels it isexceedingly important that all employeesreceive the necessary training to carry outthe functions of their positions.

The NSLC will present the opportunitiesfor staff to receive the necessary tools tocarry out their job duties and to preparethem for advancement.

Occupational Health and Safety

The Nova Scotia Liquor Commission fullysupports occupational health and safetyinitiatives and will continue to ensure thatthe workplace is safe and that the staff aretrained to perform their jobs in a safemanner.

The Nova Scotia Liquor Commission willcontinue to support the Joint OccupationalHealth and Safety Committee and to pro-vide the members with the necessarytools and training to fulfil their mandate.

The NSLC will continue to explore andimplement programs, such as thePrevention/Early Intervention Project, thatwill aid employees in an orderly return towork following an absence.


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Affirmative Action

On December 11, 1996 the Nova ScotiaLiquor Commission entered into anAffirmative Action Agreement with theNova Scotia Human Rights Commissionformalizing an ongoing policy at the NSLC.

The organization is committed to develop-ing, through a combination of recruitment,hiring, and training practices, a work forcethat reflects the composition of the gener-al labour market population.

Negotiations

The NSLC will strive to successfully nego-tiate collective agreements that meet orga-nizational goals by obtaining flexibility ofoperation while continuing to limit costs.

The NSLC will, through the negotiationprocess, provide a relevant set of termsand conditions for employees.

Communications PlanObjectives• To minimize communication problems.

• To maximize communication opportuni-ties.

Strategies• Proactively search for new communica-

tion opportunities.

• Fine-tune and continue to execute com-munication opportunities/vehicles/events with key audiences.

• Fine-tune and continue to execute mediarelations policies and procedures.

• Fine-tune and continue to execute anissues action program.

Programs/ Policies and Procedures

• Issues Action ProgramAll senior management are required toidentify any issues or events in theirarea that might precipitate a mediainquiry. The issue or event must beimmediately documented and sent tothe media spokesperson for review.

• Media Relations Policy and Procedure

– All media inquiries are sent to NSLCmedia spokesperson.

– NSLC operational issues are referredto NSLC management.

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– Government policy issues are referredto the Minister Responsible for theLiquor Control Act, where appropriate.

• Public Relations Program

– Target audiences/communicationvehicles/events.


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Communications Plan

Target Audiences Key Messages Formal Vehicles

Retail Customers The NSLC will strive to provide Consumer Guide; Christmasresponsive and progressive service catalogue; newspaper; radio/TV;with a variety of quality-controlled website (under development).products in modern facilities Customer connection

In-store signage.

Licensee Customers The NSLC shall strive to provide Licensee Line; monthly responsive and progressive service price lists.with a variety of quality-controlled products in modern facilities.

Public The NSLC shall strive to operate in Press releases; editorials.a socially responsible manner. Annual report.

Government The NSLC shall strive to generate Annual financial business planrevenue as a retailer through efficient Annual report.financial and operating practices.

Suppliers The NSLC shall treat the liquor industry Open Line Newsletter.fairly, with consistent and impartial performance in such areas as advertising,shelving policies, in-store merchandising, promotions, listings, and pricing.

Employees The NSLC shall strive to provide Spirited Informer; employee its employees with progressive bulletins.management, equality of opportunity and career development.

Union The NSLC shall encourage open and Human Resources and fair relationships with all union and Division Directors.non-union employees.

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Long-Range InformationResource Management PlanSummary

The Long-Range Information ResourceManagement Plan supports NSLC’s long-range strategy to focus on continuousimprovement throughout the organizationin order to meet short-term needs and topursue longer-term opportunities andstrategies as a retail organization.Information systems (hardware and soft-ware) are supported by the Finance andSystems Division’s Systems Department.Their role is to coordinate all of NSLC’stechnology requirements and needs. Thisensures that there is efficiency, consisten-cy, compatibility, reliability, and overallfunctionality not only throughout theNSLC but also with our stakeholders, cus-tomers, and partners. The strategies andobjectives are reviewed annually to ensurethat they are consistent with organization-al goals and objectives. Keeping up to dateon trends in the industry as well as whatothers in the retail business are doingensures that the most cost-effective solu-tions are recommended and implemented.This includes other government depart-ments as well.

Long-Range Goal:

To develop a fully integrated, efficient and reliable informationsystem infrastructure for the NSLC:a true client/server environment.

Information System ObjectivesHardware: • To ensure that the investment in hard-

ware supports current and future orga-nizational structures and functions thatare required to meet overall goals and strategies.

Software: • All software applications will be compati-

ble to avoid or eliminate duplication ofeffort and duplicate sources of entry.

System Support:• To ensure that system support staff are

technically skilled to effectively providesupport for computer assets, thatappropriate and effective procedures arein place to safeguard information sys-tem assets, and also to ensure the con-tinuity of essential business operations.

Training:Objective: The NSLC will support comput-er literacy training and ensure that usersand system staff are equipped with theappropriate tools and training to best sup-port their functions and work effort.



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Customer Service Plan

Long-Term Objectives Short-Term Strategies Programs

1. To maximize customer 1. a) Develop and set listing Category Managementsatisfaction in product mix and delisting standards Program(in selection, price and based on customer needs (Annual Review)availability). and profit. (Selection)

b) Develop and set service Inventorylevel standards and Management Programinventory turn standards for (Annual Review)stores and warehouse. Develop strategies/plans to meet those goals. (Availability)

c) Encourage competitive Category Managementactivity among suppliers in Programall categories relative to price Merchandisingand value to the consumer. Management Program(Price) (Annual Review)

d) Set sales and gross Sales Managementprofit/category goals for ProgramMerchandising Services (Annual Budget)Division. Develop strategies/plans to meet those goals (Price)

e) Set sales and gross profit/ Sales Managementstore goals for Store ProgramOperations Division. (Annual Budget)(Price)

f) Prioritize expenses in Financial Programterms of customer needs and (Annual Budget)cost containment. (Price)

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Long-Term Objectives Short-Term Strategies Programs2. To provide a stimulating 2. a) Select and execute Select–Merchandisingretail shopping environment displays that will be visually Management Programin store. stimulating and provide value Execute–Merchandising

to the consumer. Management TrainingProgram

b) Design and create exciting Store Design Programand merchandisable retail (Annual Review)shopping environment in stores.

3. To improve customer 3. a) Develop and execute Personal Sellingsatisfaction in commun- personal selling techniques Training Programicating product knowledge supported with product (Annual Review)to customers and other knowledge information forservice-related areas. store staff and other customer

service employees.

b) Develop and execute Customer Serviceinnovative retail services Programsfor customers. (Annual Review)

4. To maximize customer 4. a) Develop and set Store Locationsatisfaction in store location. standards for distance Program

between stores and (Annual Review)profitability standards for stores.

5. To maximize customer 5. a) Develop and set Store Hours Programsatisfaction in store hours. standards for store hours in (Annual Review)

relation to customer traffic, labor costs and sales/hours.

6. To improve customer 6. a) Develop and execute Handling Customersatisfactionin handling techniques in handling Concerns Trainingcustomer concerns for customer concerns for store Programstore staff and other staff and other customer (Annual Review)customer service. service representatives. (Consumer & Licensees)representatives


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Performance Reviewfor 1999–2000Programs/Projects• Develop alternative retailing strategies.

New and innovative customer servicedelivery programs such as the BottleYour Own Wine program, Drive ThruService program, and NSLC retail outletwithin a grocery store program havebeen expanded in recent years withfavourable comments by customers/pub-lic and have contributed to increasedfinancial results and improvement ininternal performance measurements.These types of strategies will continue tobe explored in the future.

• The target market for the Port of Winesis being strategically redefined.

The target market for the Port of Wineswas strategically redefined in the mar-keting mix areas of product/servicesmix, price, promotion, and place andalso to attract the larger general marketwine consumer. This has been evidentin the volume growth in this categoryover the last few years. Our Port ofWine Festival was again successful andexceeded previous years’ results andtarget expectations. The Port of Winesatellite stores have been identified. Theproduct mix has been set. The shelf

planograms are being developed. ThePort of Wines signage is being set up instores. The merchandising display activ-ity in the Port of Wines satellite stores isbeing expanded. Our overall corporateimage was enhanced, and this strategywill continue in the next fiscal year.

• Review Pricing Policy and systems tofine-tune opportunities for increasedrevenue.

All financial objectives have been metand pricing procedures have ensuredthat the liquor industry is treated fairlywith consistent and impartial perfor-mance. Pricing policies were adjusted toensure that customers were providedwith (1) value-priced products and (2)better value on larger-size products,while maintaining a level of profitrequired to operate the business effec-tively and efficiently. This program con-tinues for the 2000–01 fiscal year. Therehave been no NSLC-initiated priceadjustments required. All supplier busi-ness and marketing plans were present-ed and reviewed during the fiscal year.

• Ongoing merchandising managementprogram

Merchandising program activity hasincreased over the last year thereby pro-viding additional revenue for govern-ment and a more exciting retail environ-ment for the customer and supplier.

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Impulse items at cash were expanded.This is an ongoing program.

• Ongoing implementation of the EnergyManagement program.

All stores identified in the plan havebeen completed on target. Savings thatwere identified were realized: kilowattusage. Monitoring of the EnergyManagement Program is an ongoingprogram.

• Product Management

The requirement to obtain a softwaresupplier to form a partnership to exe-cute this program went to market thispast year with the development of arequest for proposal. The contract wasawarded and a detailed GAP analysiswas performed together with a projectmanagement plan and an implementa-tion schedule. Implementation is nowunder way and will extend into nextyear.

• Bar Code/UPC

Phase 1 is now complete with the UPCprogram fully rolled out at store levelwith the new point-of-sale project. Allsuppliers must be in compliance with anational standards document, ensuringthat all products received through theNSLC’s distribution network have validbar code and UPC labeling.

• Improvements of end-user processes;focused retail execution.

Improvements have been made in anumber of retail tasks, in particularthose relating directly with the cus-tomers: inventory and merchandising.Customers benefited from the right mixof products, quantities, and displays.

• Retail activity review for maximum pro-ductivity and social contribution.

Community-oriented programs/projectscontinued to improve corporate imagein many areas of the province. Retail-store-related tasks were assessed toensure that productivity was enhanced,and more time spent with the customer.

• Eliminate report duplication and redun-dant procedures.

The integration of various divisional andcorporate operating systems has beencompleted, resulting in decreasedfreight costs through an accurate fore-casting and rating module. These effortswill continue during the next fiscal year.

• Improvements in Records Management.

The focus for the 1998–99 fiscal periodwas to design a comprehensive anduser-friendly central storage andretrieval system. This will be completedin 1998–99 and includes standardizedsystems with other government depart-ments and a more streamlined systemof record retention.


expenses-to-profit ratios have beenachieved for those stores that were relo-cated as part of this strategy. Examplesare Hollis Street, Bedford Mill Cove, andAmherst liquor boutiques.

• To develop key retail management skillsand staff customer skills.

Training modules were revamped andnew ones developed to meet the goalsof this objective. Participation in thetraining modules doubled from previousyears. The modules will be reviewedand updated on an annual basis.

• To execute ongoing social responsibilityprograms and develop new ones.

The NSLC continued to support ongoingprograms such as Safe Graduation,Don’t Drink and Drive, Blue Thunder,and various other local, provincial andnational programs. One program wasexpanded from one location to all storesin the province: Plan Ahead: Get HomeSafe. The participation has increasedfrom the previous year, and the commit-ment by the schools, RCMP, and NSLCstaff continues. Other liquor jurisdic-tions have been very interested in thiscommunity service program.

• Enhanced Customer Service TrainingModules.

This module was completed during theyear and participation by store staff hasoccurred. In-store displays are very evi-

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• Enhanced store-based inventory man-agement system.

Customer service levels were increasedduring the year as evidenced by internalaudit reviews. Product availability com-plaints have decreased from the previ-ous year.

• Ongoing category management program.

Gross profit per litre objectives havebeen achieved, while maintaining acompetitive retail environment in all cat-egories. These efforts help to optimizecustomer satisfaction and are an ongo-ing program.

• Ongoing Implementation of PhysicalResource plan.

All retail outlets identified for this fiscalyear will be completed as planned. Theright-sizing of our retail outlets hasincreased sales per square foot, allowedfor the disposal of surplus space, reduc-tion of occupancy costs, and increasedratio of retail area to warehouse areas.This program requires continuous eval-uation to ensure that space utilization isoptimized resulting in the right-sizing offacilities.

• Strategic site location research

The criteria for store site selection havebeen refined The criteria are used toincrease customer service and satisfac-tion while increasing profits. Improved

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dent in all store locations. Positive cus-tomer comments have increased overthe last year, and this program will con-tinue for 2000–01.

• Year 2000 compliance plan

External auditors reviewed our progressduring their annual review. Our criticalsystem (POS Retail InformationSystem) was fully tested, and a live testran at our fall Wine Fair with successfulresults. A recovery plan has beendevised in the event of poweroutages/communication failure. A finalinformation bulletin was issued to staffprior to December 31, 1999 to ensurethat all system/applications had beenproperly backed up.

• Ready-to-Drink Cocktails

The volume for the first eight months ofthe fiscal year exceeded previous yearresults. This was attributable not only togeneral market growth, but also thenumber of products now carried inNSLC stores. Visibil ity has beenimproved, which also assisted in vol-ume and sales growth.

• Beers of the World Program

Product mix and selection were expand-ed, and promotional activity in this pro-gram increased from the previous yearby all suppliers. Display units increasedthe visibility for our customers. A “bas-ket carrier” is being tested for launch in


the spring of 2000 to increase the abilityof the consumer to mix and match sin-gle-serve beers in the six-pack carriertitled “Beers of the World.” Volume andgross profit have increased from theprevious year.

• Implementation of Upgraded POSTechnology

Implementation was completed duringthe fiscal year, with further enhance-ments to come in the future. Scanningdevices and integrated debit/credit werealso installed as a major benefit to thesystem implementation. More detailedand analytical reports have been devel-oped for enhanced management deci-sion making, and major customer-seg-mented profitability and sales have alsobeen reported. Further improvementsand upgrades are expected for the nextfiscal year.

• Millennium Project

Activity and preparation for this eventcommenced over a year ago, with astore deployment program distributedto all retail outlets. Merchandising mate-rial emphasized the year 2000 celebra-tion and brought excitement for the newmillennium. Additional sparkling winesand champagnes were purchased toaccommodate the customer demand.Many of these products were presentedat our Port of Wine Festival GrandTasting and Wine Makers Dinner.

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• Merchandising Management Program

The Food for Thought merchandisingprogram has heightened awareness ofwine as a complement to food. The sug-gestions in the colourful display unithave increased volume. The Impulse-at-Cash program has also been successful,offering customer’s sample sizes ofsome of our products. Merchandisingprograms continue to attract suppliersand increase the visibility of products.

• Website

The NSLC website development andinstallation were completed as plannedwith the site now available to all inter-ested parties.

• Vendor Performance System

A criterion for evaluation has beenestablished for communication with oursuppliers. The entire system will becompleted in the next fiscal year.


189

Nova Scotia Municipal Finance CorporationBusiness Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .191Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .192Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .192Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193Performance in 1999–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .194Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .195Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198Outcomes and Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .199

191

IntroductionThe Nova Scotia Municipal FinanceCorporation (MFC) was established by anact of the Legislature of the Province ofNova Scotia in 1979. The MFC concept iswidely used in Canadian provinces andAmerican states as a cost-effective, effi-cient means of raising long-term deben-ture funds to finance municipal capitalprojects. Studies have shown that smallermunicipalities with lower credit ratingsreceive the greatest interest savings fromMFC participation and that all municipali-ties can benefit from savings in the cost ofadministration on outstanding debentureissues.

The corporation’s purpose is to providelow-cost financing to its clients, whichinclude municipalities, municipal enter-prises, school boards, and hospitals. Allmunicipalities, municipal enterprises, andschool boards must finance, and hospitalsmay finance, their external capital require-ments through the corporation.Exceptions occur for capital projects fund-ed directly by the Province of Nova Scotia(e.g., most school board capital projects),short-term financing, and certain projectsfor which funds may be borrowed from

other governments. Under current provin-cial policy, the corporation funds munici-pal and municipal enterprise capital pro-jects and some school board projects.

The affairs of the corporation are managedby a Board of Directors appointed by theGovernor-in-Council. Forty per cent areappointed on the recommendation of theUnion of Nova Scotia Municipalities. Thefull-time staff of the corporation receivessupport and resources from the provincialDepartments of Finance, Justice, andHousing and Municipal Affairs.

As of the 1998–99 fiscal year-end, the cor-poration had $669,451,000 in debenturesissues and $663,797,000 in loans out-standing. Debentures and loans are direct-ly administered by staff of the corporation,with assistance from the Nova ScotiaDepartment of Finance. The corporationalso administers sinking fund trusts val-ued at $159,700,364 on behalf of munici-pal units for non-serial issues.

Nova Scotia Municipal Finance Corporation

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Mission

This is achieved through the issuance ofdebentures. The corporation pools munici-pal borrowing requirements, which elimi-nates the need for individual municipalitiesto negotiate and administer their owndebenture issues. Under the MFC arrange-ment, the debt issuance functions remainin the public-sector domain.

The benefits (both in terms of interestrates and administration of issue expens-es) of pooling individual municipal capital-borrowing requirements would be lost ifeach municipal unit were to access themarket directly. If the province were toraise the funds and make loans directly tomunicipal units, the function wouldbecome provincial and not municipal. Theformation of the MFC was initiated by the1975 “Proposal for Municipal Reform”study sponsored by the Union of NovaScotia Municipalities. Forty per cent of the

Board of Directors is appointed on the rec-ommendation of the UNSM, a reflection ofthe desire to have strong municipal repre-sentation in the affairs of the corporation.

Strategic GoalsGoal 1

To work with clients, the province, and theinvestment community in providing capitalfinancing to our clients at the lowest costof funds available for their particular debtstructure and timing needs.

Goal 2

To explore and develop new methods andproducts for meeting the needs of ourclients through contact with the invest-ment community, the public sector, andacademic research.

Goal 3

To promote responsible and professionalapproaches to municipal capital-projectplanning and financing (jointly with theDepartment of Housing and MunicipalAffairs).

Goal 4

To prudently manage all financial aspectsof the corporation, including credit riskand asset/liability management.

To utilize credit enhancement

and debt-pooling techniques

to meet clients’ approved

funding requirements at the

lowest possible cost.

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Core BusinessFunctionsProviding low-cost funds to clients.• Provide financing for clients’ approved

funding requirements by pooling theserequirements and issuing debentures.Separate issues can be arranged for sin-gle capital projects in amounts sufficientto permit a public issue, provided theydo not preclude a pooled issue for otherclients.

• Administer debt issues and loans to fur-ther reduce client borrowing expenses.This involves the collection and adminis-tration of loans from clients and the pay-ment of interest and principal on deben-tures outstanding. Other administrativefunctions include the management ofcomputerized loan and debenture sys-tems, the issuance of income tax receiptsto investors, budgeting, accounting,reporting, and office administration.

• Administer sinking fund trusts on behalfof clients. A number of the outstandingdebenture issues are of the bullet type,with no principal payments until the endof the term. Sinking fund trusts exist foreach of these debenture series, andthese trusts are administered by thecorporation. The administrationincludes security purchases, administra-

tion of investment income from securi-ties held, analysis of the adequacy ofcurrent levels of installment paymentsto meet loan repayment requirements atmaturity, fund valuation at year-end, andat maturity, reporting and accounting.

Explore improved methods andproducts in meeting client needs.• Maintain communication links with the

investment community, public-sectorfinance practitioners, and academicsand carry out research as required toenable the corporation to respond tochanging client needs.

• Prepare and review policy recommenda-tions regarding the corporation’s use offinancial innovation techniques andinstruments.

• Assist local governments in evaluatingalternative methods of raising capital-project financing including partnershipswith the private sector.

Encourage municipal governmentsto adopt and maintain a profes-sional approach to capital projectplanning and finance.• Educate municipal clients on the topic

of capital finance through seminars andfield visits.

• Work with the Department of Housingand Municipal Affairs in promoting aninformed and responsible approach tocapital planning and finance.

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Prudent financial management• To ensure that an acceptable process is

in place for evaluating the credit worthi-ness of the loans made by the corpora-tion.

• To ensure that the corporation’s assetsand liabilities (as well as those it man-ages in trust) are matched in bothamount and duration).

Performance in1999–2000Providing low-cost funds to clients.

• Issued $86,960,000 in debentures andon-loaned a similar amount to clients.

• Responded to client needs in a timelyfashion by pricing issues within five tosix weeks of formal municipal requests(with the exception of the fall 1999issue, which was delayed due to thetiming of the provincial budget).

• Administered $2,500,000 in short-termfinancing pending issuance of a deben-ture.

• Administered $669 million in outstand-ing debentures, which included the payment of debenture interest.

• Administered $664 million in outstand-ing loans to municipalities, schoolboards, and hospitals.

• Invested and administered pooled sink-ing fund trusts valued at $159 million.

• Compared favourably with otherCanadian MFCs on the basis of adminis-tration costs per loan ($0.25/$1000 vs.$0.38/$1000 average), new issue place-ment ($1.57/$1000 vs. $2.41/$1000),and sinking fund administration costs.

• Undertook a review of the Sinking Fundinvestment policy.

• Prepared an annual assessment of mar-kets, debentures, loans, and corporateactivity.

Explore improved methods andproducts in meeting client needs.• Established a MFC/interdepartmental/

municipal committee to explore munici-pal interest and the practicalities ofdeveloping a pooled lease-financingprogram for Nova Scotian municipali-ties. Preliminary findings were present-ed to stakeholders.

• The corporation was represented in theProvincial/Municipal Roles andResponsibility review initiative estab-lished in 1999.

• The corporation was represented on afinancial evaluation committee for alarge municipal capital project.

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• Meetings were held with the corpora-tion’s lead managers and other mem-bers of the investment community, staffof the Nova Scotia Department ofFinance, and other municipal financecorporations to discuss trends anddevelopments in municipal capitalfinancing.

• Improved the NSMFC website.

Encourage municipalities to adoptand maintain a professionalapproach to capital project plan-ning and finance. • Conducted 12 field visits during the

year.

• Worked with staff of the Department ofHousing and Municipal Affairs and/ormunicipal staff in developing responsesto municipal capital-financing proposals.

• Responded to the information needs ofmunicipalities and the investment com-munity.

Prudent financial management.• Obtained verification of credit worthi-

ness from the Department of Housingand Municipal Affairs prior to setting theparameters for pooled issues.

• Matched the amount, term, and timingof MFC debentures and loans to units.

Priorities for 2000–01Goal 1Providing low-cost funds to clients.• Meet all approved requests for deben-

ture funding by issuing up to$100,000,000 in debentures and on-loaning a similar amount to municipalunits and enterprises.

• Meet the capital funding needs of non-municipal borrowers when requested todo so by the Province of Nova Scotia.

• Meet all requests for short-term financ-ing pending issuance of a debenture.

• Administer $670 million in outstandingdebentures, which includes the paymentof debenture interest.

• Administer $670 million in outstandingloans to municipalities, school boards,and hospitals.

• Invest and administer sinking fundtrusts valued at $150 million.

• Continue to compare favourably withother MFCs on the basis of administra-tion costs per loan, new issue place-ment, and sinking fund administrationcosts-to-service ratios.

• Prepare an annual assessment of mar-kets, debentures, loans, and corporateactivity.

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Goal 2

Explore improved methods andproducts in meeting client needs.• Consult with municipal officials on capi-

tal-financing needs and the preferredfeatures in the debentures issuedthrough the MFC.

• Consult with clients on additional finan-cial services that they may require.

• Establish committees to study the mer-its of financial innovation regarding theintroduction of new products and ser-vices.

• Work with the corporation’s lead man-agers and other members of the invest-ment community, staff of the NovaScotia Department of Finance, othermunicipal finance corporations, andothers involved in municipal capitalfinancing to identify evolving local gov-ernment financial product needs and theoptimum means of satisfying them.

• Maintain the NSMFC website.

Goal 3Encourage municipalities to adoptand maintain a professionalapproach to capital-project plan-ning and finance. • Maintain good communication with

existing and future clients.

• Collaborate with staff of the Departmentof Housing and Municipal Affairs in

developing responses to municipal capi-tal-financing proposals.

• Respond to all inquiries on interest ratelevels, projections, and funding options.

Goal 4Prudent financial management.• Obtain verification of credit worthiness

from the Department of Housing andMunicipal Affairs prior to setting theparameters for pooled issues.

• Match the amount, term, and timing ofMFC debentures and loans to units.

Human ResourcesIn order to provide the level of staffresources required to meet all priorities ofthe Corporation, the following stepsshould be taken:

• Maintain the current emphasis on utiliz-ing up-to-date information technology,which recognizes that improvements intechnology are essential to the effec-tiveness of the operation.

• Maintain staff and resource supportfrom the Departments of Finance,Housing and Municipal Affairs, andJustice in existing operational areas.This support has been excellent in the

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past and continues to be required if allpriorities are to be met.

CommunicationsThe Corporation’s key message is its func-tion; i.e., to provide municipalities, munici-pal enterprises, and other categories ofpublic borrowers selected by the provincewith approved funding at the lowest possi-ble cost. The audience for this message is our client base and the investment community.

InformationTechnologyTechnology is used as an enabler of effi-cient and effective service delivery. Benefitsto the corporation in debt and generaladministration are provided through directconnections to the LAN at the Departmentof Housing and Municipal Affairs and thedebenture and loan administration programat the Department of Finance. It is essentialthat resources continue to be made avail-able for upgrades in equipment and soft-ware as well as staff training.

The corporation has addressed the year2000 computer problem through coopera-tion with the two provincial departmentsthat provide its information technologyservices. There are no outstanding issues.


198

BudgetThe corporation’s administration budget for the next three years is as follows:

Budget Budget Request1999–2000 2000–2001 2001–2002 2002–2003 2003–2004

REVENUES

210,054 Non-Government 245,323 262,695 267,807 272,889

210,054 TOTAL REVENUES 245,323 262,695 267,807 272,889

EXPENDITURES

153,004 Salaries & Benefits 192,819 198,530 204,412 210,469

57,050 Operating Costs 52,505 64,165 63,395 62,420

210,054 TOTAL EXPENDITURES 243,323 262,695 267,807 272,889


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Outcomes and Measures

To provide funding for the approved financing requirements of our clients at regularintervals and at the lowest cost.

Outcome Indicator Measures

• Meeting approved client • Response to approved requests (1) Percentage of formal requests compliedfinancing requirements for financing with through the debenture-issue

immediately following the request(2) Average response time to formal

requests, measured in weeks.

To explore and develop new methods and products for meeting client needs.


• Awareness of new loan features • Amount of communication with Percentage of potential borrowers contactedthat may benefit clients clients, investment community,

academics, and public sector counterparts

To encourage municipal governments to adopt and maintain a responsible approach tocapital project planning and financing (in collaboration with DHMA)


• Optimum use of capital funds • Information on capital planning Percentage of borrowers with a capital and improved community and finance budgeting, planning, and financing strategyinfrastructure

To ensure prudent financial management.


• Matching of assets and liabilities. • Information on MFC pooled Similarity of aggregate amounts, terms,debenture issues and loans and timing of debentures and loans.to municipal clients.

StrategicGoal �

StrategicGoal �

StrategicGoal �

StrategicGoal �

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Nova Scotia Power Finance CorporationBusiness Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .203Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .203Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .203Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204Performance in 1999–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .205Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .205Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .205Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .205

203

IntroductionUnder an Asset Transfer Agreement, datedAugust 10, 1992, NSPC transferred all ofits existing assets, liabilities, and equity,except for long-term debt and related sink-ing funds, to the privatized company, NovaScotia Power Inc. (NSPI), in exchange formatching notes receivable equivalent tooutstanding long-term debt, matchingnotes payable equivalent to sinking fundassets, and an amount of fully paid com-mon shares. The latter were sold in a sec-ondary offering on August 12, 1992.

Subsequent to the reorganization and priva-tization, the business activities of NSPCcontinued under NSPI. Concurrently, theNova Scotia Power Corporation changed itsname to Nova Scotia Power FinanceCorporation (NSPFC). NSPFC retained thelong-term debt, which is guaranteed by theprovince, and the related sinking funds.

Mission


To ensure that all NSPC debt,$2,152,879,732, which is guaranteed bythe province, is either repaid, offset bysinking funds, or defeased as per theagreed schedule to December 31, 1997.

Goal 2

After December 31, 1997, to monitor theadequacy of the defeasance portfolio andto ensure the repayment of all NSPC debtguaranteed by the province.

Nova Scotia Power Finance Corporation

To ensure that the debt of

Nova Scotia Power Corporation

(NSPC) is discharged in an

orderly and timely manner.

Core BusinessFunctionsNSPFC is responsible for monitoring thedebt defeasance and debt repayment bythe NSPI of debt guaranteed by theProvince of Nova Scotia. NSPFC holdsnotes payable by the NSPI in case ofdefault of NSPC debt repayment.

Performance in1999–20001. The Defeasance Agreement required the

defeasance of a minimum of$1,381,600,000 of outstanding NSPCdebt by December 31, 1997. This mini-mum has already been met and sur-passed, $1,440,290,000, having beendefeased by March 31, 1997.

2. The outstanding debt of$1,549,853,900 was reduced to$1,477,800,000 as at March 31, 1999;defeased assets as at March 31, 1999are also $1,477,800,000, thus render-ing the guaranteed debt fully defeased.

Priorities for2000–011. To ensure continuing progress towards

elimination of NSPC debt guaranteed bythe Province of Nova Scotia anddefeased by NSPI.

2. To ensure that the defeasance assetsare of such a quality that the defea-sance program will succeed.

Human ResourcesNova Scotia Power Finance Corporationhas no employees. NSPC executes neces-sary transactions to create and maintainthe defeasance portfolio. The monitoringof NSPI debt defeasance is performed by aBoard of Directors, appointed by theGovernment of Nova Scotia, with staffsupport from the Nova Scotia Departmentof Finance. The accounting firm of Deloitte& Touche certifies the defeasance assetsarranged by NSP.

204


205

Nova Scotia Power Finance Corporation

InformationTechnologyInformation technology services are sup-plied by the Department of Finance.

CommunicationNSPFC will make a public announcementwhen this report is tabled in the NovaScotia Legislature.

BudgetNSPFC has no corporate expenditures.Under terms of the NSPC privatization,NSPI is responsible for expenses of theNSPFC.

Outcomes• Privatization of NSPC.

• Reduced Province of Nova Scotia guaranteed debt.

• Minimizing credit risk so as to protectthe Province of Nova Scotia interests.

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Nova Scotia Resources LimitedBusiness Plan 2000–01

ContentsMission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .209Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .209Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .209Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .210Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .210Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .211Resource Tax Pools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .212Outcomes and Outcome Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .212Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .212Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .214

209

Mission

Strategic GoalsNSR(V)L’s objective is to maximize thevalue of its assets in order to provide theshareholder with a full range of options.To achieve this, the company will:

Goal 1

Increase immediate net revenues throughfull share participation in the currentlyapproved Sable Offshore Energy Project(SOEP).

Goal 2

Pursue further opportunities to increaselonger-term net revenues through joint

venture participation in exploration anddevelopment projects in SignificantDiscovery Licenses (SDLs) in which thecompany has an interest surrounding theSOEP infrastructure.

Goal 3

Pursue opportunities to increase the valueof existing land holdings while reducingat-risk capital to appropriate levels byfarming out interests as appropriate.

Goal 4

Evaluate and participate in the explorationfor and development of selected new oiland gas opportunities offshore andonshore Nova Scotia in areas where exist-ing infrastructure could encourage promptdevelopment.

Core BusinessFunctions

The company’s main business function isto manage the province’s equity interestsin offshore oil and gas development. It hasoperated continuously since 1981. In theearly 1990s NSR(V)L participated in thedevelopment of the Cohasset and Panukeoil fields, resulting in the first offshore oil

Nova Scotia Resources Limited

To profitably manage its asset base

in Nova Scotia’s petroleum and energy

industry by selective participation

in ongoing projects and prudent

investment in future development

opportunities as they arise. This

business is primarily conducted

through Nova Scotia Resources

(Ventures) Limited (NSR(V)L).

production in Canada. This project becamethe springboard that allowed many NovaScotian companies to compete success-fully for work on Hibernia, Terra Nova, andthe Sable Offshore Energy Project. It pro-vided a strong core of competent, trainedNova Scotians who have paved the wayfor the ongoing development of the gasreserves near Sable Island. The projectcontinues to make a very significant con-tribution to the economy of the provincethrough direct employment of highlyskilled Nova Scotians in high-paying jobs.Since December 1997, NSR(V)L has beenfunding its share of the Sable OffshoreEnergy Project, with gas sales scheduledto begin in late 1999.

AssetsThe company’s current assets include:

• A 50 per cent interest in the COPANproject, which is now depleted. Activityfor 2000 will concentrate on abandon-ment of wells and project facilities.

• An 8.4 per cent interest in SOEP, includ-ing gas reserves in six fields, offshoreprocessing facilities, sub-sea pipelines,onshore gas plant. and liquids fraction-ation plant. Production started in late1999. Project facilities have the poten-

tial to earn fees for NSR(V)L by pro-cessing gas from other fields afterSOEP reserves begin to decline.

• An overriding royalty of 2 per cent ofgross revenue, less transportationcosts, on any hydrocarbons producedfrom deep horizons in the Panuke CDA,should current exploration efforts leadto development.

• Interests in 11 other potential oil andgas fields held under SignificantDiscovery Licenses (SDLs) issued bythe Canada–Nova Scotia OffshorePetroleum Board (CNSOPB).

• A 100 per cent interest in ExplorationLicense EL2355 for 55 500 hectaresnorth of Sable Island (known as thePenobscot structure). This licence hasbeen extended until July 1, 2000.

• A significant database of informationrelating to oil and gas explorationprospects off Nova Scotia, as well as adecade of experience with oil and gasdevelopment and operations in theNova Scotia offshore area.

Human ResourcesNSR(V)L operates with minimal staff man-aging daily activities and reporting to aBoard of Directors appointed by the share-holder. All budgets and major expendi-tures are approved at board level.

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Oil and gas technical expertise resides withthe general manager and engineering man-ager supplemented by outside consultantsas required to address specific technical,legal, audit, and tax matters. The companyhas hired a geophysicist on contract, work-ing in Calgary, to assist with the evaluationof the resource potential of SDL lands inproximity to the SOEP development.

The Department of Finance is responsiblefor the management of the company’s bor-rowing program and foreign exchange risk.

CommunicationsAs of December 31, 1999 the COPAN pro-ject has reached the end of its economiclife. Production and related operatingexpenses have terminated for NSR(V)L,although PanCanadian (PCP) may contin-ue some production operations at theirown risk and expense to help offset someof their ongoing exploration costs.Cumulative production for the project is44.4 MMbbl.

After completion and testing of an explo-ration well drilled from the existing Panukeproduction platform in late 1998 in part-nership with PCP, NSR(V)L determined


that continued exploration on the prospectdid not meet the company’s criteria forreturn on investment and exploration risk.Therefore, NSR(V)L farmed out its interestin the prospect to PCP who continues toexplore on the block at their expense. Inreturn, NSR(V)L will receive a royalty onfuture revenues should commercial quanti-ties of hydrocarbons be discovered.

It will be necessary to abandon COPANproject wells and offshore structures in amanner satisfactory to regulatory authori-ties. NSR(V)L will pay its 50 per centshare of these costs when abandonmentgoes ahead. The work scope and timingfor abandonment is being addressed byPCP and will depend on the results of theirongoing exploration program.

As of December 31, 1999, NSR(V)L haspaid approximately $168 million toward itsshare of SOEP. Production started late in1999. NSR(V)L’s share of production for2000 will be approximately 36 MMcfd ofnatural gas and 1600 bbl per day of NGLs.Expenditures of $14 million are expectedin 2000 to complete Tier I wells and facili-ties. Preliminary work in preparation forbringing Tier II fields into production willbegin in 2000.

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NSR(V)L will participate with Mobil, Shell,and Imperial in studies to assess thedevelopment potential of other SDLs in thevicinity of the SOEP facilities. It is antici-pated that one appraisal well will be drilledin 2000.

Resource Tax PoolsThrough expenditures made on explo-ration and production activities, NSR(V)Lhas accumulated approximately $750 mil-lion in resource tax pools. These tax poolswill be applied to reduce future taxableincome generated from the SOEP andother projects.

Outcomes andMeasuresNSR(V)L expects 2000 to show substan-tially improved financial performance.Revenues from SOEP will cover ongoingoperating costs as well as the bulk ofdebt-servicing costs. Requirements forcapital will be significantly reduced over1999 as drilling on SOEP Tier I is complet-ed. Some capital will be required to begindevelopment work on SOEP Tier II fields

and to advance pre-development appraisalof SDLs. Abandonment of the COPANwells and facilities will generate the largestcapital requirement for the year. The com-pany will work with PanCanadian to mini-mize the costs associated with this.

RiskThe company’s financial performance issubject to five main elements of uncertain-ty. These elements can contribute to betterthan projected performance, or alterna-tively, can lead to weak results, dependingon how key uncertainty factors fluctuate.

• Geological. As with any resource explo-ration venture, there is always a signifi-cant risk that exploration activities willnot find sufficient resources to makeproduction economic and recover costs.Once a discovery is made and devel-oped, if the actual reservoir performanceexceeds forecast predictions withrespect to flow rates and reserves, thisleads to higher revenues. Conversely,lower-than-predicted performance leadsto lower revenues. The cash flow projec-tions used in the analysis are at the 50per cent probability level of the range-of-performance predictions.

• Market. If prices are higher than pro-jected, revenues and rates of return

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rise. Conversely, lower-than-expectedprices lead to lower revenues andreturns. Gas prices are expected tostrengthen due to generally risingdemand in the US, but it may take sometime for markets to settle out as SOEPgas, an entirely new major source,works its way into the markets. SOEPproduction of propane and butane willlikely exceed current market demand inthe Maritimes, bringing a downside riskto pricing for these commodities.

• Exchange rates. Fluctuation of theCanadian dollar affects both revenues(since product sales are quoted in USdollars) and debt (since debt is denomi-nated in US dollars). On balance, thedebt impact is greater, given its size inrelation to recent and projected rev-enues.

• Interest rates. Fluctuations of US inter-est rates could enhance or diminish theincome position, depending on theirdirection. For example, rising rateswould increase the debt-servicing costsand reduce income.

• Facility Startup. Revenues are depen-dent upon the successful startup of theSOEP facilities. As with any major grassroots development, it will take sometime to achieve the expected levels ofsystem reliability. Any unexpected prob-lems encountered may have a negativeimpact on revenues.



Budget

Nova Scotia Resources Limited 2000–01 Budget

(Dollars in thousands)

Revenue

Gross gas and liquids production revenue—Sable Offshore Energy $41,618

Royalties (416)

Net Revenue 41,202

Expenses

ProductionSable Offshore Energy 7,391

DepletionSable Offshore Energy 10,300

17,691

Income from operations 23,511

NSRL general & administrative expenses 1,779

Financing charges–Sable Offshore Energy Project 11,800

Net Income from project 9,932

Other Expenditures

Cohasset-Panuke insurance 250

Legal–litigation 800

Financing charges relating to pre-Sable Offshore Energy Project 34,800

Net Income (Loss) (25,918)

Capital Expenditures

Sable Offshore Energy Project Tier 1 14,006

Sable Offshore Energy Project Tier II 2,562

Cohasset/Panuke and other well abandonment 26,536

Future development appraisal activities 6,185

Land acquisition and other exploration 1,000

Total Capital 50,289

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Key Assumptions• Oil price $22.00 US WTI1 per barrel

• Gas price $2.40 US/MMBtu NYMEX 2 price

• Propane price $WTI * 71 per cent

• Butane price $WTI * 86 per cent

• Condensate price $1.00 US premium to WTI per barrel

• Interest rate 6.0 per cent

• Exchange rate $CDN/$US = 1.50

• Oil production nil

• Gas production 36 million standard cubic feet per day3

• Propane production 500 barrels per day3

• Butane production 300 barrels per day3

• Condensate production 800 barrels per day3

Transportation costs vary with the product and the market location and are subtractedfrom commodity prices to obtain producer netback.

Notes:

1. WTI—West Texas Intermediate

2. NYMEX—New York Mercantile Exchange

3. Sales assuming 100 per cent facility availability. For purposes of budgeted revenues,sales are reduced by 5 per cent to allow for normal expected facility downtime duringproject startup.


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Rockingham Terminal Inc.Business Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .219Mandate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .219Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .220Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .220Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .220Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .220Budgeting Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .221Outcomes and Outcome Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .221Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .221Human Resources, Information Technology, and Financial Services . . . . . . . . . . . . . . .221

219

IntroductionRockingham Terminal Inc. (RTI) is a spe-cial-purpose Crown corporation establishedin December 1998 by Order in Council. RTIwas created to advance the development ofa new container terminal in Halifax toaccommodate post-Panamax size ships.

RTI was established to promote, manage,and protect the interests of the Province ofNova Scotia within the context of the com-petitive bidding process commenced byMaersk Inc. and Sea-Land Services Inc.,an alliance of two of the world’s largestcontainer carriers. In May 1998 Maerskand Sea-Land issued a Request forProposals to seven northeast NorthAmerican ports to provide the alliance witha facility capable of handling their post-Panamax ships.

In December 1998 Halifax, the onlyCanadian port in the competition, wasshort-listed along with Baltimore and NewYork/New Jersey. The deadline for thecompetition is open-ended and will bedetermined by Maersk and Sea-Land.

In order to facilitate the development of aproposal, the Province of Nova Scotia, theHalifax Port Corporation (now the Halifax

Port Authority), and the Halifax RegionalMunicipality joined forces as the HalifaxPort Group. Following the short listing ofthe bid, the Province of Nova Scotia creat-ed RTI to act on its behalf during the bid-ding process. The province, through RTI,was the lead partner in all matters associ-ated with the bidding process, facilitydevelopment, and financing.

In May 1999 Maersk/Sea-Land announcedthey would pursue development of a facili-ty elsewhere. RTI therefore wound upoperations and has been dormant sincethe end of the 1999–2000 fiscal year. It ispresently unfunded and inactive pending adecision on the provincial role in anyfuture port development.

MandateRTI is established under the ProvincialFinance Act. Its mandate is to advance thedevelopment of a new container terminalin Halifax to accommodate post-Panamaxships.

Rockingham Terminal Incorporated

Mission


Maximize benefit to the Province of Nova Scotia from the container terminalcompetition.

Goal 2

Ensure that development occurs in aresponsible manner.

Goal 3

Anticipate and address issues relating tothe successful development of the facility.

Goal 4

Ensure that provincial investment resultsin a positive return for Nova Scotia.

Core BusinessFunctions• Financial and strategic management of

any agreement to develop a post-Panamax facility in the Port of Halifax.

• Facility design and development.

• Development of all iances among partners, stakeholders, and other enti-ties involved in the development of thefacility.

• Research and intelligence-gathering onall aspects of the process, including thecollection and analysis of data thatcould be used to enhance the competi-tive advantage of the Port of Halifax.

• Integrated marketing and communica-tions, including the management ofstrategic alliances.

Priorities for 2000–01The single priority for the near term is topreserve work completed in relation to the1999–2000 Maersk/Sea-Land competitionfor possible use in any future development.

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To grow the capacity and strategic

value of the Port of Halifax in the

post-Panamax era.

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Budgeting ContextUnder the Order in Council establishingRTI, the Minister of Finance can lend theCrown corporation up to $1 million for thepurpose of advancing the development ofa new container terminal in Halifax toaccommodate post-Panamax ships.

Outcomes andOutcome MeasuresThe following have been identified as keyoutcomes:

1. Commitment of stakeholders towardsdevelopment of a new facility.

2. Market acceptance of financing mecha-nisms for constructing the facility.

3. Community acceptance and support fordevelopment of the facility.

4. A high degree of local participation inthe development of the facility.

Communications

Key Messages—General Public• The province has a strategic interest in

ensuring that the Port of Halifax isdeveloped.

• Growth and development of the port isultimately in the best interests of allinvolved.

• A coordinated approach offers the high-est probability of success.

• We can build upon the work completedfor the Maersk/Sea-Land bid to developa highly competitive port for the post-Panamax era.

Human Resources,InformationTechnology, andFinancial ServicesFinancial services are provided throughthe Department of Finance. Other aspectsare not applicable since the corporation isdormant.

Rockingham Terminal Incorporated

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Sydney Environmental Resources LimitedCorporate Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .225Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .225Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .226Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .226Performance in 1999–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .227Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .228Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .229Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .229Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .230Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .231

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IntroductionThe company was incorporated under theNova Scotia Companies Act on July 10,1990. The Governor in Council, Province ofNova Scotia, on the report and recommen-dation of the federal Minister of IndustryTrade and Technology and in accordancewith the appropriate acts, approved theestablishment of Sydney EnvironmentalResources Limited, formerly Sydney TarPonds Clean-Up Inc., on March 26, 1991.Sydney Environmental Resources Limiteddischarges obligations of the province tothe Joint Action Group on EnvironmentalClean Up (JAG) with respect to mainte-nance and security of the Sydney Tar Pondsclean-up assets. Additionally, the corpora-tion supports Nova Scotia in the capacity ofgovernment partner in the JAG process andlead agency with respect to a Memorandumof Understanding between JAG and thethree levels of government.

Sydney Environmental Resources Limitedis organized around three units:

• Finance and Administration

• Operations/Maintenance

• Communications.

Mission

Sydney Environmental Resources Limited

To coordinate some areas of Nova

Scotia’s participation within the JAG

process, as well, by virtue of a JAG

directive, to maintain the physical

assets of Sydney Tar Ponds Clean-Up,

inclusive of identifying acceptable

alternative uses for the twin fluidized

boilers that are part of the physical

plant and equipment under the corpo-

ration’s charge; decommissioning

workplace structures in the interests

of health and safety; securing Nova

Scotia’s land holdings within the

Muggah Creek Watershed; and interfac-

ing with bargaining units of Local

1064, United Steelworkers, respecting

labour-force adjustment issues specif-

ic to the steel plant site.

Strategic GoalsSydney Environmental ResourcesLimited’s strategic goals are:

Goal 1

To facilitate discharge of some areas ofNova Scotia’s responsibilities respectingthe JAG process.

Goal 2

To ensure that JAG’s directive to NovaScotia to maintain and secure present andfuture public investment in Sydney TarPonds is upheld.

Goal 3

To decommission workplace structures toensure compliance with health and safetylegislation.

Goal 4

To secure Nova Scotia land holdings with-in the Muggah Creek Watershed and prop-erty under Nova Scotia’s control atFrederick Street, Sydney.

Goal 5

To ensure cooperative, productive labourrelations with United Steelworkers Locals1064 and 1064-02.

Goal 6

To facilitate labour-force transition withrespect to steelworkers.

Goal 7

To maintain an effective working relation-ship with Sydney Steel Corporation.

Goal 8

To communicate with community stake-holders in a manner appropriate toincreasing general awareness of the incin-eration technology and encouraging inter-action and fostering collective decisionmaking.

Goal 9

To assist JAG on issues respectingMuggah Creek Watershed site access.

Core BusinessFunctionsSydney Environmental ResourcesLimited’s core business functions are:

• In response to a JAG directive, maintainclean-up equipment and facilities,secure the site, and adhere to stipula-tions of the hazardous waste destruc-tion permit: Core staff of 15 are cur-rently maintaining the fluidized bedincinerators, electrical generation

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equipment, and bag house, as well asother essential equipment pendingnear-term decisions on utilization ofincineration technology in the destruc-tion of either or both non-hazardousand hazardous waste.

• Decommission workplace structures:To ensure compliance with health andsafety legislation, specially trained andcertified staff will continue to removeasbestos from workplace structures atthe co-generation plant under the direc-tion of the Nova Scotia Department ofLabour and in keeping with approvedtechniques.

• Secure Nova Scotia’s land holdingswithin the Muggah Creek Watershedand at Frederick Street: Core staff ofeight continue to protect Nova Scotia’sinterests at the Coke Ovens site andFrederick Street.

• To assist in facilitating discharge ofNova Scotia’s responsibilities as a gov-ernment partner in the JAG process:Administrative staff in Sydney will con-tinue to work closely with officials ofthe Nova Scotia Department ofTransportation and Public Works in dis-charging Nova Scotia’s obligations toJAG and in implementing theMemorandum of Understandingrespecting JAG.

• Maintain active involvement in labour-force transition respecting steelwork-ers: The company will continue to workclosely with Sydney Steel Corporationand United Steelworkers Locals 1064and 1064-02 to facilitate labour-forceadjustment and to optimize the engage-ment of steelworkers in Nova Scotia’sdelivery of services in the capacity ofJAG partner.

• Consider practical applications of exist-ing incineration technology: The com-pany will actively pursue practicalusage of existing incineration technolo-gy on a commercially self-sustainingbasis and in conformity with environ-mental, health and safety, and fiscalpolicies of Nova Scotia.

Performance in1999–2000• Supported the Joint Action Group on

Environmental Clean Up through theprovision of support staff, informationand documentation, meeting facilities,and Tar Ponds site tours.

• Elevated facilities’ maintenance toensure minimal deterioration. Thisaction was taken in anticipation ofincineration again becoming an optionas part of a community effort to identify

ensure efficient and cost effectiverecommissioning, if so directed.

• Protect Nova Scotia’s interests withrespect to security and safety at theCoke Ovens site and Frederick Street.

• Provide the Nova Scotia Department ofTransportation and Public Works withnecessary support in managing itsinvolvement in the JAG process.

• Intensify decommissioning of work-place structures, largely through theremoval of asbestos, to ensure compli-ance with health and safety legislation.

• Assess human resource needs andmake adjustments in the interest ofimproved cost-effectiveness.

• Negotiate a fair and reasonable collec-tive agreement with unionized person-nel.

• Make provision for the inclusion of flu-idized bed combustion technology inthe technology demonstration programto be initiated as part of the JAGprocess.

• Attempt to secure cost sharing of facili-ties/equipment maintenance by illus-trating to the national government thatby virtue of a JAG directive this serviceis being provided by Nova Scotia, andthe Government of Canada is a partnerin JAG.

• Formalize arrangements with SydneySteel Corporation respecting labour

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an acceptable remedy for Canada’slargest hazardous waste site.

• Supported the Department ofTransportation and Public Works in therelocation of Frederick Street residentsand security of properties.

• Successfully removed hazardous mate-rial, asbestos, from the work site aspart of North America’s largest suchclean-up by volume.

• Expanded security services at the CokeOvens site to include site safety.

• Enhanced communications with newprint material and a WWW site.

• Strengthened relations with UnitedSteelworkers and Sydney SteelCorporation respecting labour forcetransition; and

• Supported the Department ofTransportation and Public Works in thecapacity of lead agency in the imple-mentation of the Memorandum ofUnderstanding with JAG.

Priorities for 2000–01• Support Nova Scotia in discharging its

obligations to JAG within the MOUrespecting clean up of the MuggahCreek Watershed.

• Continue to maintain the assets, in par-ticular the co-generation complex, to

Communication, administration, andrecord-keeping functions will be addressedby 2 non-unionized administrators.Therefore, the total staff complement is 29.

The position of general manager will notbe filled as long as the corporation is inmaintenance rather than operations mode,and the health safety and environmentalfunction will continue part time. At pre-sent, and for the foreseeable future, day-to-day operations will be the responsibilityof a three-person administration team.

CommunicationSydney Environmental Resources Limitedearlier completed a formal communica-tions plan. The primary objectives ofSydney Environmental ResourcesLimited’s communications activities are toapprise community stakeholders of thenature and make-up of the Tar Ponds,Canada’s largest hazardous waste site; tofacilitate understanding of the history ofthe clean-up initiative; to broaden commu-nity knowledge of the risk to human healthfrom the Tar Ponds; to draw attention tothe economic opportunities inherently apart of the clean-up; to assist in makingcomplex technical issues more under-

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force adjustment, develop a plan ofaction, and open discussions with theprovincial government respectingimplementation of the plan.

• Continue dialogue with UnitedSteelworkers and United Mineworkersrespecting possible use of the co-gen-eration complex in clean-up of aban-doned mine sites throughout CapeBreton County as part of the nationalgovernment’s planned rationalization ofthe Cape Breton DevelopmentCorporation.

• Foster open communication with com-munity stakeholders concerning ther-mal destruction technology and itspotential application in the destructionof hazardous waste.

Human ResourcesIt is anticipated that the core businessfunctions of Sydney EnvironmentalResources Limited will be continue to bemet by a complement of 18 unionized,experienced site personnel (5 are remov-ing asbestos) and 1 site supervisor. Acomplement of 6 trained personnel willprovide security at the Coke Ovens site atthe request of JAG, of whom two aremembers of CUPE Local 1675. There are 2personnel at Frederick Street Security.

standable for the average stakeholder; andto optimize the general public’s under-standing of the use and potential of revolv-ing fluidized bed combustion technology.

InformationTechnologyIT hardware and software are in conformitywith guidelines and specifications devel-oped by Nova Scotia. Sydney EnvironmentalResources Limited maintains a simple localarea PC network with shared peripherals.Additionally, the corporation makes use ofthe Internet for e-mail purposes and main-tains a WWW site. As well, the corporationhas conventional faxing capabilities. Thecorporation is Y2K compliant.

On-site IT hardware and software and digi-tal instrumentation systems conform tostandards readied by the project manager,Acres Engineering Limited, in the designof the incineration plant on behalf of theshareholder and complied with by ven-dors.

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231

BudgetExpenditures 2000–01 1999–2000 1998–99

Estimate Forecast ActualTotal Budget $1,506,000 $1,600,000 $1,450,684

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Sydney Steel Corporation

On January 28, 2000 Ernst & Young Inc.was appointed as agent for the Province ofNova Scotia with respect to the manage-ment and divestiture of Sydney SteelCorporation and to solicit offers from par-ties interested in acquiring Sysco’s busi-ness operations and/or assets.Consequently, Sysco has not prepared abusiness plan for the 2000 fiscal year.

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Tidal Power CorporationBusiness Plan 2000–01

Mission

Strategic GoalsGoal 1Provide an information base for the development of tidal energy.

Goal 2Reduce the dependence of Nova Scotiaand Eastern Canada on imported oil.

Goal 3Encourage large scale project develop-ment in Nova Scotia to create jobs andimprove our economy.

Core BusinessFunctions• Research the technical and economic

feasibility of tidal power development.

• Investigate the environmental impact ofbuilding and operating tidal powerschemes.

• Construct a prototype demonstrationtidal generating station at AnnapolisRoyal, Nova Scotia.

Performance in1999–2000Nominal activities. Future under review.

Options for the future of the Corporationwere not presented to Cabinet as plannedduring 1999–2000.

To research and demonstrate

the generation of electrical energy

from the tide of the Bay of Fundy.

Priorities for 2000–01The future of the corporation is under con-sideration. It is anticipated that options willbe presented to Cabinet in the next year.

Human ResourcesSupplied through the Department ofNatural Resources.

CommunicationsFollowing a decision by Cabinet on thefuture of the corporation, the public will beadvised through a press release from theDepartment of Natural Resources.

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Trade Centre LimitedBusiness Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .239Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .241Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .241Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .242Performance in 1999–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .243Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .243Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .244Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .245Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .247Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249

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IntroductionBackground

Trade Centre Limited (TCL) was created inNovember of 1981 by Order in Council as aCrown corporation and also incorporatedunder the Nova Scotia Companies Act. TheProvince of Nova Scotia is the beneficialowner of all shares of the company. Thecompany reports to the Minister ofEconomic Development. The original man-date defined the primary purpose of thecompany as to oversee and administer theactivities related to the Trade Centre com-plex. A secondary purpose is to activelypromote the facility, Halifax, and NovaScotia. In 1982, an agreement was signedbetween the City of Halifax and theProvince of Nova Scotia that gave manage-ment of the Halifax Metro Centre to TCL,though the city was to continue to acceptfinancial responsibility for any and all costsof operation in excess of revenues. Thetwo facilities/properties are indivisiblylinked in all aspects of physical plant andare interdependent in all operations, whichis necessary to achieve maximum efficien-cies in all areas of performance.

In the fall of 1994, Trade Centre Limitedadopted a comprehensive strategic plan tochart a course and guide the direction ofTCL for the next five years. A process forannual review is in place to ensure that thestrategic plan remains vibrant and relevantin the extremely competitive business envi-ronments in which it operates and at thesame time continues to act as an economicgenerator for the Province of Nova Scotia.

As a result of the strategic direction estab-lished, the organization was structuredinto four primary business units and sup-porting resource units with the recognitionthat maximum productivity and efficiencyare achieved through interdependence.

In 1999–2000, another business unit wascreated, namely Events Halifax. Its man-date is to actively seek large sporting andcultural events for Halifax.

As well, in November 1999, Trade CentreLimited was directed by the Governmentof Nova Scotia to take over and managethe facilities at Exhibition Park. It is antici-pated that this transfer of managementwill capitalize on TCL’s expertise in salesand events management in both the meet-ings and conventions industry and theentertainment industry.

Trade Centre Limited

Trade Centre Limited is now embarking onanother five-year plan that will incorporatethese two new entities as an integral partof our operations.

Trade Centre Limited was created and thefacility was constructed to complement,operate, and integrate with the existingHalifax Metro Centre (HMC). The com-bined complex was visualized as an eco-nomic generator and benefactor for boththe City of Halifax and the Province ofNova Scotia in the convention, trade show,sports, and entertainment industries. Thefacility was financed by all three levels ofgovernment—federal, provincial andmunicipal—with an ongoing commitmentby the latter two to fund operating deficitsand capital improvements. However, withtoday’s continued pressure on govern-ments to achieve fiscal responsibility, TCLhas adopted a mandate through strategicplanning to eliminate its need for operat-ing funds subsidies and also to reduce oreliminate, if possible, the need for the moreextensive and continued capital improve-ments funding that is necessary andrequired to maintain and preserve its sta-tus as a world-class facility and destination.

Trade Centre Limited is a unique Crowncorporation comprising six business units.

Of those, TCL operates two properties in asymbiotic relationship and a third separateproperty. Five of the units include a con-vention facility, office tower with fivefloors of leased space, a World TradeCentre, a multi-purpose sports/entertain-ment/trade show complex, and a multi-purpose agricultural complex. The sixthunit, Events Halifax, is dedicated to sellingHalifax as a venue for major sports andcultural events.

TCL operates in highly competitive marketsfor conventions, conferences, meetings, andentertainment; these industries have seendeclining attendance levels, an increase inthe number of convention, entertainmentfacilities in all parts of the world, and thecomplete remodelling of older existing facil-ities to increased capacities.

TCL is unique as a Crown corporation inthat it pays municipal property taxes—com-mercial and occupancy—and is subject toHST taxes on purchases and other applica-ble local, provincial and federal taxes.

It is also unique in that to achieve financialindependence from government, yet still actas an economic generator/benefactor, itsoriginal mandate for construction, it mustalso compete in the industry markets thatits construction was designed to benefit.

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Mission

We will achieve this through the strength,innovation, and commitment of our peopleand deliver this through our businessunits.

Core BusinessFunctionsTrade Centre Limited is the corporate enti-ty that acts as the umbrella for six primarybusiness units and provides the necessarysupport resource units for their operation.The interdependent and physically joinedcomplex provides opportunities to achieveoperational efficiencies and financial sav-ings through this interdependence—mostimportantly acting as a catalyst for “one-stop shopping” for activity planners and

event promoters. The six businessunits/core business functions are:

1. The World Trade and Convention CentreIt provides the necessary facilities andservices to attract meetings, conven-tions, and trade shows that will have amajor impact on the economy of theprovince.

2. The World Trade Office Tower

The office tower provides Class A com-mercial office space to the governmentand private business sector that has asignificant interest in and relationshipto the type of business activity that isgenerated by the facilities.

3. The Atlantic Canada World Trade Centre

As a franchise member of the WorldTrade Centers Association, an organiza-tion of 310 world-wide trade centres, itprovides trade-related services toAtlantic Canadian companies seeking toexpand their operations in the globalmarketplace.

4. The Halifax Metro Centre

Recognized as the premier sports/entertainment and trade show complexin Atlantic Canada, it provides a venuethat complements and enhances thecapability to handle convention andtrade show activities and is the largest


To maximize, for the people of

Nova Scotia, the direct and indirect

economic benefits from the operation

of resources entrusted to our care. The

delivery of our products and services

will exceed customer expectations.

sports/entertainment complex inAtlantic Canada, acting as a main cata-lyst to draw national and internationalsports and entertainment activities tothe Atlantic region.

5. Events Halifax

Events Halifax’s mission is to positionand sell Halifax as a national and inter-national preferred city to host majorsporting and cultural events.

6. Exhibition Park

Trade Centre Limited has recentlyaccepted responsibility for this facility. Itwill be run as an integrated business unitof Trade Centre Limited, identified by itsunique location and market audience.

Strategic GoalsA number of overall strategies for TCLwere identified as necessary to achieve thevisions identified in the mission statementfor each of the business units. The currentstrategies are:

Goal 1

Structure our businesses to ensureaccountability for all aspects of opera-tions.

Goal 2

Ensure the viabil ity of Trade CentreLimited through:

• elimination of annual operatingdeficits

• growth.

Goal 3

Effectively use partnerships and strategicalliances in the delivery of services andgrowth of Trade Centre Limited.

Goal 4

Ensure that the marketing and sales pro-grams are aggressive and innovative inorder to substantiate the growth expecta-tions of all business units.

Goal 5

Optimize the use of technology and tech-niques to ensure our services are deliv-ered in the most efficient and effectivemanner.

Goal 6

Ensure that our physical facilities meet orexceed prevailing customer expectations.

Goal 7

Maintain world-class facilities in Halifax asa world-class destination of choice withworld-class levels of service.

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Performance in1999–2000Event highlights included hosting 1,100attendees for the Federation of CanadianMunicipalities; 1000 attendees for theOperating Room Nurses of Canada; 800attendees for the Fiddles of the WorldInternational Conference & Festival; 700attendees for the US-based NationalInstitute of Governmental Purchasing; 800attendees for the Canadian Association ofFire Chiefs; an international conference onSustainable Development that brought 500attendees from all over the world; and theInternational Bridge Tunnel and TurnpikeConvention.

For Halifax Metro Centre, event highlightsincluded the 21st staging of the NovaScotia International Tattoo, which attracted60,000 visitors over seven shows; Stars onIce, featuring the world’s best internationalfigure skaters; concerts by artists includingAlanis Morrisette, Amanda Marshall, andGreat Big Sea; NCAA basketball; andrecord attendance for all of the MooseheadJunior A Hockey games.

Events Halifax marked its first year of oper-ation and has put in place a 10-year plan

with both short-term event targets andlonger-term goals that would see Halifaxbid for and host the Commonwealth Gamesin the year 2010.

Priorities for 2000–01The attached budget details the financialplan to achieve our goals of financial inde-pendence in the short term for operatingfund subsidies and our ability to con-tribute to our financial needs for capitalimprovement funds in the long term.

These are ambitious goals at a time wherethere has been an unprecedented growthin the number of comparable facilitiesworldwide, providing for a very tough andcompetitive market in an industry that hasalso seen a simultaneous reduction in lev-els of attendance and service requests andresulting declining revenues.

Our continuous efforts to achieve revenuegrowth and devise new products and ser-vices, constant monitoring of those rev-enues, and effective cost controls haveallowed us to accomplish what we have todate, and through an effective and ongo-ing strategic planning process we will


continue to contribute to our future suc-cess.

Tactics• Increase revenue through increased

activities that result from innovativethinking and discovery of new opportu-nities.

• Form partnerships and maintain a leadership role within the hospitalityindustry.

• Strive for the highest standards of ser-vice, constantly investigating new waysto improve actions, resulting in furtherestablishment of the facility’s reputationfor excellence in products and services.

• Continue to focus on achieving anincreasing level of an annual operatingsurplus to generate sufficient reservesto fund our own capital and renovationexpenditure requirements.

• Increase economic impact for the econ-omy of Nova Scotia through increasedactivity in the complex for the benefit ofthe people.

• Maintain the properties as top, compet-itive facilities by providing modernamenities and a safe, comfortable, andwell-maintained environment in whichconventions, meetings, and other eventand entertainment activities can takeplace and tenants may operate theirbusinesses.

• Increase trade opportunities for NovaScotians by being a resource facility andproviding a link to trade activities in theglobal marketplace and as a member ofthe World Trade Centers Association.

• Introduce and conduct innovative tradeeducation programs.

• Maximize and maintain the level of cus-tomer satisfaction and awareness at alllevels of the operation and maintain awell-trained, focused, and customer-oriented staff.

• Continue to be the premier facility inAtlantic Canada for conventions, meet-ings, trade shows, sports, and enter-tainment events, with continued recog-nition as a destination of world-classcapabilities and a place where the worldshould be.

Human ResourcesThe human resources function plays a sig-nificant role in the operation of TCL and itsdiverse business units, which employ over70 full-time employees and more than 250part-time employees. Recognition of andsupport for strategic management of TCL’shuman resources have been a key factor inmeeting the challenges of the diverse busi-nesses we operate.

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The operation of six diverse business unitsrequires a variety of employees having avariety of skills associated with and uniqueto each industry. Extensive and intensiveinitiatives have been embarked upon toestablish and develop personnel policiesand practices in response to our uniqueneeds, in line with our industry counter-parts, employment legislation, and guide-lines established by the Province of Nova Scotia affecting Crown corporations.

TCL recognizes the importance of thisfunction and is committed to the impor-tance of employee relations and humanresource management in operations,strategic planning, and decision making inorder to achieve its corporate objectives. Itis recognized that the manner in which wedeal with our employees will be reflectedin the manner in which they interact withand serve our clients. Our employees arecommitted to delivering a superior prod-uct and superior service. We are proud ofthat product and service, and we areproud of our employees.

Initiatives are ongoing in the followingareas:

• development of standard corporateemployment policies and procedures

• training initiatives that support ourstrategic direction

• performance management system

• workplace health and safety

• employee relations policies and guide-lines

• customer service strategy development

• compensation and benefits review—industry standards/government guide-lines

• rewards development.

Communications Trade Centre Limited has recognized thateffective communications with all ourstakeholders is integral to the ongoingpublic and internal support for the variousinitiatives the organization has embarkedon. Support for the function at the strate-gic level has been critical to communicat-ing the successes that have been achievedover the past five years and to buildingand retaining support for the challenges ofthe next five-year planning span. Majorstakeholders include our employees, ourindustry partners, and our shareholders,the taxpayers of Nova Scotia.

An important priority for theCommunications division is research. Inaddition to the ongoing economic impactstudies that are conducted biennially, TCL


has undertaken a major economic impactanalysis of the wider sports and culturalevents sector for Events Halifax. Surveyingis being conducted on a wide cross-sectionof events from swimming, baseball, andsoccer to canoe racing, equestrian events,and festivals such as the Jazz Festival.Results will be available in late spring 2000and will be used in the bidding process tohelp garner support for events for Halifax.We have also committed to developing acomprehensive customer satisfaction mea-surement and evaluation program that willtarget all the different levels of customers—from attendees at Halifax Metro Centreevents to planners of major conventions.

A major initiative is the continued commit-ment to identifying and tracking the directand indirect economic impact and benefitsarising from the activities of the WorldTrade and Convention Centre and theHalifax Metro Centre. It is important notonly to track these benefits but to commu-nicate them to Nova Scotia taxpayersthrough the news media and as part of ourAnnual Report.

The Annual Report is our formal documentfor public distribution. It represents one ofour vital tools in our efforts not only to tellthe public what we do, but also to share

our successes and accomplishments withthem from one year to the next.

As part of the goal of keeping our stake-holders informed, TCL publishes a bi-monthly newsletter, the Ambassador,which is circulated to the general public,our employees, our industry partners, andthe news media. Our business units alsopublish a number of other newsletters tar-geted to specific groups and audiences,including the Atlantic Canada World TradeCentre Trade Tips, for members; anemployee newsletter; Events Halifax’s A Step Up, for the events community; andnewsletters developed for targeted clientneeds in the sports community.

An ongoing commitment to strong com-munity relations includes facility tours forstudents and community groups. Toursare custom-tailored for students from ele-mentary school to post-secondary, particu-larly students in tourism and hospitalityand event-planning programs. We havealso developed successful community rela-tionships with such groups as MermaidTheatre of Nova Scotia, The Art Gallery ofNova Scotia, and the Senior CitizensSecretariat. We will actively pursue moreof these relationships during the year.

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An annual event in the form of theAmbassador Dinner is held to honour localindividuals who have been essential toattracting their respective event, confer-ence, or convention to our facility and city.These people are integral to TCL’s suc-cess, and recognizing their efforts publiclyis one of the ways to earn their continuedsupport.

An ongoing commitment to advertising—local, regional and national—is required toensure that we maintain a presence in var-ious advertising media that focus on ourbusiness unit markets.

A renewed commitment to a creating aneffective website presence for all of ourbusiness units is a priority for the nextyear. Generating revenue where possible,increasing our visibility, and finding evenmore efficient ways to inform and do busi-ness with our various clients are majorgoals in the development of our websites.

InformationTechnologyInformation technology has been recog-nized in our strategic planning process asa key factor that is necessary to achieve

our corporate goals and objectives and iscrucial to our success in the industries ofeach of our business units. A separatestrategic information technology plan wascreated that integrates with the corporateplan. Recognizing that we have six diversebusiness units and resource units withvery different needs was a key factor inthe development of this plan.

TCL participates in a very competitiveenvironment in each of its business unitsand all have shown rapid advancement inand deployment of information technologyto remain competitive. It is necessary thatwe remain competitive in those environ-ments to ensure our continued success,the use of technology being a key factor.

TCL has adopted the client/server systemstechnology in its operations and those oper-ating systems best suited for software appli-cations that are industry specific, and theuse of other common software applicationsthat offer the best fit to our overall corporatetechnology goals. The industry-specificapplications have given us the competitiveedge and have been critical to our successin operational efficiency, productivity, andrevenue growth. We have stabilized to onehardware platform that has contributed toreduced maintenance costs and that has


given us an uptime ratio that consistentlyexceeds 99 per cent. This level of uptime iscrucial to our operation, and any deteriora-tion would result in lost revenues that wouldhave an exponential impact.

The overall strategy of TCL is to advanceand increase the use of information tech-nology in all areas of operation that can beidentified as deriving a direct productivitybenefit and/or cost-effective solution fromits application.

The use of information technology hasbecome such an integral part of TCL’soperation that it would not be able to func-tion without it in most aspects of its oper-ation and the loss in other areas wouldseverely hinder the operation as a wholeand its ability to generate revenues.

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Budget2001 2000 1999 1998

For the years ended March 31 Estimate Forecast Actual Actual

Revenues $7,523,632 $7,523,632 $7,301,822 $7,561,266

Expenses

Event operations $2,566,560 $2,566,560 $2,495,452 $2,570,928

Salaries and benefits 1,851,243 1,851,243 1,699,374 1,594,478

Operating, maintenanceand administration costs 2,356,700 2,356,700 1,995,502 1,986,710

Taxes and insurance 874,129 874,129 832,504 839,913

7,523,632 7,523,632 6,982,832 6,992,029

Income before other items Nil Nil 318,990 569,237Other income

Gain on disposal of assets Nil Nil 2,040 1,434

Interest income on short term investments 125,000 125,000 158,416 112,670

Pension contribution holiday Nil Nil 87,927 Nil

125,000 125,000 248,383 114,104

Income before depreciation 125,000 125,000 567,373 683,341

Depreciation 1,100,000 1,100,000 1,468,381 1,418,004

Income (Loss) for the year $(975,000) $(975,000) $(901,008) $(734,663)

Note:

Revenues and expenditures of the Halifax Metro Centre are not reflected in this budget. The Halifax Metro Centre is owned by the Halifax Regional

Municipality and operated by Trade Centre Limited under a management agreement. All operating deficits or surpluses accrue to the municipality,

and all capital improvements are funded by the municipality.


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Waterfront Development Corporation LimitedBusiness Plan 2000–01

ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .255Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .255Strategic Goals/Core Business Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256Performance in 1999–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256Priorities for 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .257Beyond 2000–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .259Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .259Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .259Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .260

IntroductionThe mandate of the Waterfront Develop-ment Corporation includes:

• Property acquisition, management anddevelopment within designated areas inHalifax and Dartmouth

• Marketing and promotion designed toattract public use of the waterfronts

• Coordination and planning of the water-fronts of Dartmouth and Halifax, includ-ing the stewardship of harbourfrontassets owned by the province

Milestone Achievements

1976 to 1994Since 1976 over 20 capital projects havebeen completed.

1. Streetscapes and underground services in Halifax and Dartmouth.

2. Extensive harbour walkways.3. Block M parking4. Nathan Green Square5. Dartmouth Alderney Landing6. Dartmouth walkway7. Dartmouth parking8. Dartmouth streetscapes9. McKelvie’s

10. Mother Tucker’s11. Maritime Museum of the Atlantic12. Initial renovations Cable Wharf Centre13. Cable Wharf parking14. South Battery acquisition of lands15. Dartmouth Admiralty Place

residential development

16. Sheraton Hotel17. Summit Place office building18. Halifax Sackville Landing19. Sackville Wharf Interpretation Centre20. Cable Wharf Tour Boat Centre21. Murphy’s Development – Cable Wharf

1994 to PresentFor the past five years WDCL has acceler-ated the pace of development, undertakinga proactive strategy that includes the following achievements:

22. Queen’s Wharf Redevelopment23. Queen’s Wharf and Cable Wharf walkway24. Chebucto Landing expansion of boardwalk25. Walkway south of Salter Street to the Heliport26. G-7 Parking Lot improvements—

landscaping and lighting27. Sheraton Casino28. Dartmouth Parking Facility—Maplehurst29. Waterfront Warehouse30 Acquisition of Fisherman’s Market and

development of Nova Scotian Crystal31. Bishops Landing residential/commercial complex32. Heliport Redevelopment33. South Battery Boardwalk34. Acquisition of Marine Towers

and former Manulife lands35. Acquisition of Cunard property36. Acquisition of Department of Fisheries and Oceans

and RCMP garage37. Demolition of former DFO and RCMP building38. Queen’s Landing parking/event space39 NSPI and Cunard Wharf redevelopment40. Expanded parking at Cunard Property41 Boardwalk expansion at Historic Properties42. Battery Park43 South Battery parking and public plaza44. Plan for Dartmouth Cove45. Signage strategy for Alderney Landing Area

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Waterfront Development Corporation Limited


254

$16.3 MillionInternally Funded Land Purchases by Corporation

$12.8 MillionAdditional Investment by Government

$31.1 MillionInitial Investment by Federal/Provincial Government

$109.2 MillionPrivate Sector Investments

Investment History1976 to Present

Direct Economic Impact of Private-Sector Capital Investment

$45,000,000.

32,000,000.

15,000,000.

15,000,000.

800,000.

400,000.

400,000.

300,000.

250,000.

$109,150,000.

1

2

5 – 9

3

4

1. Sheraton

2. Southwest

3. Summit Place

4. Admiralty Place

5. Mother Tucker’s

6. Secunda

7. Waterfront Warehouse

8. Nova Scotian Crystal

9. Other

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Other Economic Impacts

There is a significant amount of other pri-vate sector investment and spinoffs fromthe initiatives of WDCL. These have notbeen quantified but include such things asprivate investment in boats, ongoing reno-vations, and employment.

A multi-year plan for capital projects wasdeveloped through to the year 2000 andpresented to Cabinet in 1996. This includ-ed over $12 million of additional capitalexpenditures that was planned to befinanced via WDCL internal sources basedon an additional bank loan guarantee witha maximum of $14.5 million (versus $9million previously). The balance of ourbusiness plan was to be funded throughexternal sources including provincialgrants, municipal government contribu-tions, and federal government grants plusinvestment by the private sector in pub-lic/private arrangements.

VisionThe Waterfront Development CorporationLimited will be recognized as NorthAmerica’s leading agency for creating avibrant, living, and working harbourfront.

Values• guardian of the waterfront

• public accessibility

• adherence to highest standards of quality

• preservation of historic elements

• appropriate balance of commercial, residential, and public areas

• respect for the environment

• teamwork and cooperation among staffand volunteers

• consultation and communications withstakeholders

Mission


To serve as guardians of

Greater Halifax Harbour and

to develop properties, coordinate,

plan, promote and act as the

provincial agent to assist other

Nova Scotian waterfronts.

• The South Battery Bishop’s Landingdevelopment by Southwest Propertiesand public plaza area are under construc-tion with scheduled completion in July2001. This includes a residential/com-mercial complex, a public plaza/ parking,area and a public park.

• In October 1999, construction of thewharf and boardwalk area adjacent tothe Nova Scotia Power Plant (Tall ShipsQuay) to connect to a new wharf andboardwalk on the former Cunard prop-erty was completed. Both providemuch-needed deep-water berthing forthe Tall Ships 2000 visit next July.These two wharf areas link the CruiseShip Terminal and Pier 21 on the southto the new Casino site, resulting in oneof the finest and, we believe, thelongest public wharf/boardwalk areas inNorth America, 4.6 kilometres.

• Two new tour boat opportunities,Peggy’s Cove Express and AmphibiousHarbour Hopper.

• Joint HRM/WDCL residential town-house development by Victoria ParkDevelopments between Maitland andKing Street in Dartmouth will be underconstruction.

• Expanded vending opportunities.

• Call for Proposals to examine the feasi-bility of a Marine Centre on the Halifaxwaterfront.

256


Strategic Goals/CoreBusiness FunctionsThe strategic goals and core businessfunctions of the WDCL include:

Goal 1• Property acquisition, management, and

development within designated areas inHalifax and Dartmouth.

Goal 2• Marketing and promotion designed to

attract public use of the waterfronts.

Goal 3• Coordination and planning of the water-

fronts of Dartmouth and Halifax, includ-ing the stewardship of harbourfrontassets owned by the province.

Performance in1999–2000The following represent significant pro-jects and programs undertaken and com-pleted in 1999–2000.

Property Acquisition,Management, and Development • Queens Landing parking and public

plaza was developed for short-term use.

257

• Applied for Millennium Funds to enablethe accomplishment of certain elementsof the business plan.

• Addition to our Tour Boat Centre toinclude “Bluenose Shop,” retailingBluenose and Tall Ships merchandise.

Promotions

• A promotions and marketing plan.

• Continued participation and support to the Buskers, Natal Day, and otherfestivals.

• Coordination of special projects toencourage activity on the waterfront,such as:

– Waterfront Winterfest

– Christmas events and decorations

– Canada Day Parade of Lights

– Acadian Festival

– International Tuna Cup

– Crohn’s & Colitis Heel n’ Wheel-a-Thon

– Heart & Stroke Foundation “Hearts inMotion” walking trail

– Zuppa Circus—outdoor theatre

Coordination and Planning• Member of Tall Ships Nova Scotia/Tall

Ships 2000.

• A new plan for the Halifax waterfront inpartnership with Halifax RegionalMunicipality (HRM).

• A new plan for downtown Dartmouth inpartnership with HRM.

• A plan and development strategy forDartmouth Cove.

• Continued partnerships with DowntownHalifax and Dartmouth business com-missions, i.e., signage, promotions,events.

• Increased and improved washrooms onthe Halifax waterfront.

• A strategy for safety, way-finding, andinterpretative signs for the Halifaxwaterfront.

• Assessment of the economic impact ofWDCL investments/projects.

Priorities for 2000–01Property Acquisition,Management, and Development• Call for proposals for development of

land in Halifax and Dartmouth.

• Finalize Bishops Landing residentialdevelopment and the public plaza andpark.

• Implement the development plan forDartmouth Cove and Canal andMaitland streets through calls for pro-posals or reinvestment and leasing ofproperties.


• Promote/advertise berthing opportuni-ties in Halifax and Dartmouth.

• Implement strategic plan to redeveloplands on the Halifax waterfront.

• Complete feasibility study for a marinecentre.

• Coordinate with HRM on waterfrontpark development at the footings of theMacdonald Bridge, Dartmouth side.

• Negotiate a land exchange solution forthe surplus Coast Guard base inDartmouth.

Marketing and Promotions • Signage initiative to set standards for

both public and private sector for dis-play signs, directional signs, and inter-pretation signs.

• A series of marketing and promotionevents, including a festival to celebratethe continuous boardwalk from Pier21/Cruise Pavilion to the Casino.

• Continued support to Tall Ships 2000by both the Chair and the President ofWDCL serving as directors on the TallShips Nova Scotia board.

• Partnering with the business communi-ty using seed funding from WDCL.

• Continue to expand the Visiting ShipsProgram and partner with the MaritimeMuseum of the Atlantic.

• Host the International Buskers 2000festival.

• Host the 2000 Halifax Natal DayCelebrations.

• Negotiate with Boston for biannual tallship race from Boston to Halifax.

• Continue to take leadership role on aninitiative to promote the use ofGeorge’s, McNabs and Lawlor’s Islands.

• Communications plan to expand publicrelations coverage with media inter-views, paid advertising, and directmailouts.

Coordination and Planning • Continue to establish partnership/policy

agreements with Halifax RegionalMunicipality in areas of maintenanceand planning.

• Continue to establish partnerships withDowntown Halifax and Dartmouth busi-ness commissions.

• Provide a leadership role in initiating aharbour visioning process.

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Beyond 2000–01Property Acquisition,Management, and Development• Call for proposals for development of

waterfront land to implement revisedHalifax Waterfront Plan.

• Continued examination of the need andmarket for a public marina.

• Evaluation of opportunities for a marinecentre and other waterfront attractionsin both Halifax and Dartmouth.

• Re-evaluation of the policy to “leaseonly” versus “sell and lease” waterfrontland.

Marketing and Promotions• Continued development of marketing

and promotion program.

• Encouraging year-round use of openareas for festivals and public events.

Coordination and Planning• Continued surveys on visitation, opin-

ion, perceptions of the waterfronts bythe regional population, local visitors,and tourists.

• Joint planning with HRM on the futureof property associated with theCogswell Interchange.

• Continued involvement in the harbourvision process.

Human ResourcesThe following initiatives are designed tomaintain efficiency and ensure implemen-tation of objectives and reduce cost.

• Continue to assess staffing and con-tracting needs to permit implementa-tion of business plan.

• Continue to evaluate internal and exter-nal public safety measures.

InformationTechnologyWDCL will continue to assess its businessneeds relative to current computer technol-ogy and current investment. This willinclude the need to access geographic infor-mation systems. Continued improvement tothe Internet website will be a priority.


BudgetProspects for the future are good. Fundsavailable for development are expected toaverage $1.2 million annually over thenext three years. Current and projectedbudgets for the years 2000 through 2003are attached. Highlights include:

• $3.4-million program over the next twoyears for capital improvements focusedon providing a higher level of publicfacilities on both sides of the harbour.

• A major joint planning review with HRMis near completion. This plan will resultin proposal calls for key sites that arenow owned by the corporation andhave the potential for commercial andresidential development, includinghotel, retail/commercial developmentsand residential expansion to comple-ment the adjacent public harbour edge.

• An intensive review and negotiationwith HRM to satisfy the business com-munity and the public on parking needsinto the long term and at the same timeprovide taxable development and anability for on ongoing cash flow by thecorporation to sustain the public man-date and non-revenue-generating publicareas that have been developed by thecorporation.

• As part of our land acquisition anddevelopment program in 1996, it wasagreed that the Department ofEconomic Development would con-tribute, depending on budgetary con-siderations determined from year toyear, a maximum of $180,000.00 peryear as a supplementary interestexpense subsidy. This supplementarycontribution has been foregone for eachyear since the agreement, and no call isbeing made on the department for thecontribution for the period covered bythis business plan.

• Discussion will continue with the gov-ernment on the development of strate-gic provincial land in the mandated areain order to achieve debt reduction.

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1998–99 1999–2000 2000–01 2001–2002 2002–2003Actual Forecast Budget Budget Budget

RevenueRent 955,360 1,032,611 996,822 940,826 1,009,247Parking 1,482,818 1,769,453 1,559,443 1,604,666 1,651,246Recoveries 3,430 3,516 3,604 3,694 3,786Interest revenue 12,848 13,169 13,498 13,836 14,182Other 31,680 25,000 25,000 25,000 25,000

2,486,136 2,843,749 2,598,367 2,588,022 2,703,461

Property ExpensesOperating 320,657 360,000 369,000 378,225 387,681Taxes 35,046 55,000 56,375 57,784 59,229Amortization & depreciation 307,931 300,000 300,000 300,000 300,000Non-owned infrastructure 100,000

763,634 715,000 725,375 736,009 746,910Income before other items 1,722,502 2,128,749 1,872,992 1,852,012 1,956,551

Corporate ExpensesDirectors 21,947 45,000 45,000 45,000 45,000Office operation 49,179 50,408 51,669 52,960 54,284Audit 9,000 10,000 10,250 10,506 10,769Consultants 49,749 160,000 135,000 35,000 35,000Legal 47,566 45,000 24,000 24,600 25,215Public Relations 4,686 4,803 4,923 5,046 5,172Promotions 18,390 25,000 25,000 25,000 25,000Salaries & benefits 251,593 281,000 288,025 278,025 284,976Staff expenses 66,252 64,000 65,600 67,240 68,921

518,362 685,212 649,467 543,378 554,337Loan Interest 715,072 748,000 770,000 671,000 698,500Net earnings 489,068 695,537 453,525 637,634 703,714plus: amortization & depreciation 307,931 300,000 300,000 300,000 300,000Funds available for development 796,999 995,537 753,525 937,634 1,003,714

Development Project Exp. 8,612,320 1,042,202 1,426,000 1,513,000 1,560,000

Borrowing for Dev’t. Projects 7,600,000 46,665 672,475 575,366 556,286

Other funds: Development projectsLand sales –– 70,000 2,140,000 –– ––Project grants & recoveries 706,048 317,655 400,000 100,000 ––Nova Scotia gov’t contribution 262,720 302,400 –– –– ––

Total other funds: Dev’t projects 968,768 690,055 2,540,000 100,000 ––Ending cash (1,091,117) (47,727) 19,798 44,433 (11,854)

Increase (decrease) in debt 7,600,000 400,000 (1,800,000) 500,000 500,000

Loan balance, end of year 13,600,000 14,000,000 12,200,000 12,700,000 13,100,000Prime rate –– 6.50% 6.50% 6.50% 6.50%

Notes:

Value of future development sites is approximately $22,000,000, at cost. Market value may differ, depending on the level of development decided upon.

WDCL’s ability to repay its bank loan is dependent on realizing appropriate recoveries from future development.


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