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.