| * To date, the hard part of working on the trust document has been done which |
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| cost about $1,000.00 and has been paid by the fund. The investment |
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| management fee would be approximately .27%, which is respectable. Currently |
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| green space funds are earning roughly .2% which is not keeping pace with |
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| inflation. The current principal in green space funds is about $6 million which |
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| could last less than 30 years. Under a perpetual care trust, it could last forever. |
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| The trust would be accumulated with other invested funds for valuation and to |
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| achieve a lower management fee, but would be maintained as a separate |
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| account and have it's own separate report. |
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| * A question was raised regarding page 6, Sec. 2.5. Administration, paragraph |
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| (e) of the trust document and how the role of the Board of Trustees affect the |
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| role of GSAB. Mr. Sawdon explained that the trust document fits the November |
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| 2013 ballot question that the residents approved. The Board of Trustees act in |
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| good faith and become fiduciaries. Fiduciaries play a fairly restricted role. |
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| GSAB will provide input to the Trust Board through the GSAB representative |
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| that will serve on the Trust Board. The Trust Board will consist of a GSAB |
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| member, a City Council member and the Finance Director. Mr. Hartner added |
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| that GSAB will receive input from city staff and residents and examine projects |
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| and priorities annually and recommend a budget to the Trust Board and |
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| ultimately to City Council for final approval. The Trust Board is not intended to |
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| usurp the role of GSAB but protect the assets in the trust. |
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| * A question was raised regarding page 2, paragraph 4, of the trust document |
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| that defines Green Space Properties to include parks and natural areas. As |
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| discussed earlier, the definition includes parks to qualify for use of PA 314. The |
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| trust document defines how the funds are to be used and cannot be |
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| extrapolated to include park activities. It was suggested that the definition |
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| should be linked with the green space ballot language by having the paragraph |
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| read as follows: "Green Space Properties are parks and natural areas owned |
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| and/or controlled by the City which consist of green spaces and natural |
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| features, including but not limited to significant watercourses and land held |
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| under conservation easements "consistent with the ballot language adopted |
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| by the voters on November 5, 2013." |
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