Mr. Keith Sawdon, the City’s Finance Director, gave an update regarding |
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establishing a perpetual care trust fund for green space and natural features. |
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The concept is to use the longer term investment tools to generate enough |
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earnings to conduct stewardship activities going forward forever. The Green |
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Space Millage funds, which are currently held in a special revenue fund, can |
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legally be transferred into a trust fund. However, certain laws guide certain |
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funds that can be invested via Public Act 20, short-term investments or via |
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Public Act 314, long-term investments. The legal definition of perpetual care is |
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somewhat gray. It could take more than a year to propose language that will |
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amend the investment act to fit Rochester Hills’ purpose of stewardship for |
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green space and natural features. There has been no other municipality in |
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Michigan to create a perpetual care trust fund for this purpose that we know of. |
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The City’s GSAB is on the cutting edge to develop a perpetual care trust fund, |
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which can be done, but will take more effort than originally thought. It could be |
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possible that the goal may not be reached. |
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