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