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RESOLUTION NO. 7993 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS AUTHORIZING THE CLOSE OUT AND ELIMINATION OF THE HILLSIDE MEMORIAL PARK CEMETERY ENDOWMENT FUND TO PERPETUAL CARE FUND WHEREAS, in 1899, Judson and Brown transferred Hillside Memorial Park ("Cemetery") to the Hillside Cemetery Association ("Association"), a private entity; and WHEREAS, as part of that transaction, a deed of trust associated with the transfer required the Association to establish a `reserve fund" and an "U nproverment fund"; and WHEREAS, the improvement fund was established to provide day to day operating capital for the Cemetery, and the interest from the reserve fund was to be used for repairs and maintenance of the Cemetery after all property for intennent purposes was sold; and WHEREAS, in 1918, the City acquired the Cemetery from the Association and, as part of that acquisition, the Association intended that the City agree to and assume all duties and obligations that the Association had promised Judson and Brown, including the improvement fund, which was referred to as an "endowment fund" and the reserve fund which was referred to as a "perpetual care" fund; and WHEREAS, in August 1918, the City Council adopted Ordinance No. 609 which recognized an obligation to continue with the endowment and perpetual care funds, to use such funds for their stated purposes, and to keep such funds as separate accounts; and WHEREAS, the City has continued to keep the funds collected in an Endowment Fund separate from the Cemetery Operating Fund. Upon acquisition of the Cemetery from the Association 111 October 1918, the Perpetual Care Fund balance was $5,705.73. The current value of these funds equals $89,861.22, which are set aside within the Endowment Fund (702-2990) as a reserve to be used for the perpetual care of the property that was acquired in 1918; and WHEREAS, beyond the amount set -aside of $89,861.22, the remaining balance of the "improvement fund" or Endowment Fund, may be utilized for funding ongoing repairs and maintenance of the Cemetery, including capital improvements noted in the Cemetery Business Plan. Future Cemetery improvements would be expended directly from the Cemetery Operating Fund; and WHEREAS, City staff is recomrmending that the City Council approve the closure of the Cernetery's Endowment Fund, transfer the current balances of the Endowment Fund to the Cemetery Operating Fund, and rename the $89,861.22 Reserve -Endowment Trust to Reserve for Perpetual Care to consolidate funds and eliminate existing loans between the Cemetery Operating Fund and Endowment Fund; I 1:1ResolutionslRes 7900-7999\7993 Cemetery Endowment to Perpetual Care Fund (2).doex