[HISTORY: Adopted by the City Council of the City of Northampton 10-18-2018 by Ord. No. 18.146.Amendments noted where applicable.]
Editor's Note: This ordinance also repealed former Ch. 153, Cemeteries, adopted as Ch. 8 of the 1977 Code, as amended.
The purpose of this chapter is to set policies for the investment and expenditure of cemetery trust funds such as the Cemetery Perpetual Care Fund specifically established for the maintenance of City cemeteries in accordance with MGL c. 114, § 19.
The investment of cemetery trust funds shall be conducted by the City's Treasurer/Collector, in accordance with the City's investment policy and in consultation with the City's Trust Fund Committee.
If the City accepts donor-restricted gifts for the cemeteries, said gift funds shall be tracked separately and any time or use restrictions honored to the extent permitted by law.
Determining annual amount available for distribution and expenditure. Funds available for distribution and expenditure from cemetery trust funds shall be determined on a total return basis, i.e., returns derived from dividends and interest as well as realized and unrealized capital gains (losses). The funds available for distribution during any one calendar year will be limited to 3.00% of the trailing 20 quarters (five years) average market value of the nonexpendable principal, ending December 31. The nonexpendable principal shall be defined by the market value of the fund less accumulated expendable balances previously designated as available to be spent. The market value for this purpose will be taken net of investment management fees.
Use of unexpended funds. Any unexpended funds from those available for distribution and expenditure in a given year shall be accrued and shall continue to be considered eligible for expenditure in subsequent years. Expenses related to the management and administration of the cemetery trust funds shall be deducted from the funds available for distribution.
Purposes for expenditure of trust funds. Cemetery trust funds determined available for disbursement and expenditure shall be used solely for the purposes of preservation, care, improvement or embellishment of City cemeteries.
Expenditure subject to appropriation. Any expenditure of cemetery trust funds shall be authorized upon the recommendation of the Mayor and subject to the approval of the City Council.