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AN ORDINANCE TO ESTABLISH A PERMANENT MAINTENANCE TRUST FUND FOR THE CEMETERIES OWNED AND OPERATED BY THE CITY OF JONESBORO AND TO ESTABLISH GUIDELINES FOR THE ADMINISTRATION OF THE TRUST
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JONESBORO, ARKANSAS THAT:
SECTION 1: The permanent maintenance fund is declared to be a trust fund for the purpose of administration, care and maintenance of the cemetery including lots, graves, spaces, crypts, niches, burial rights or otherwise.
SECTION 2: The Finance Committee of the Jonesboro City Council shall act as trustees for the permanent maintenance fund.
SECTION 3: The net interest from the fund shall be paid to and be exclusively used and expended by the City of Jonesboro for the care and maintenance of the cemetery and for no other purpose.
SECTION 4: The principal of the fund shall be invested and remain invested in such securities and funds as are permitted by the laws of Arkansas for the investment of policy reserves of life insurance companies as set forth in State Code 23-60-101 and in the common trust funds of state or national banks.
SECTION 5: However, if the permanent maintenance fund has assets of more than two hundred and fifty thousand dollars ($250,000) they may invest not more than fifty percent (50%) of its assets in non assessable common stocks which are listed on a national securities exchange, preferred stocks meeting the requirements of State Code 23-63-815, and investment trust securities meeting the requirements of 23-63-820, and the diversification restrictions of 23-63-805 shall not apply to investments in investment trust securities.
SECTION 6: In investing these funds, the trustees shall exercise the judgment and care under the circumstances then prevailing which persons of prudence, discretion, and intelligence exercise in management of their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income and capital appreciation as well as the probable safety of their capital.
SECTION 7: A City employee appointed by the trustees shall, on behalf of the City of Jonesboro, deposit designated permanent maintenance funds directly into a savings account or certificate of deposit in a state or national bank or savings and loan association in this state not less than forty five (45) days after collection provided:
1. All funds so deposited are federally insured;
2. The funds are restricted so that the principal amount of the funds cannot be withdrawn without the written approval of, and on a form approved by the City of Jonesboro.
3. Not less than one (1) time a year, interest from the funds may be withdrawn by the individual trustee on behalf of the City of Jonesboro for purposes permitted in this ordinance.
SECTION 8: The City of Jonesboro shall deposit no less than fifty percent (50%) of the gross proceeds of each sale into the permanent maintenance fund. The balance of the gross proceeds from each sale shall be deposited in the ****** fund and used to offset the cost of cemetery maintenance.
SECTION 9: If the City of Jonesboro gives away a grave space or sells a grave space for a price less than the current market price the gross sales proceeds received for a similar grave space in the immediate adjacent or similar location in the cemetery shall be used as the basis to make the required permanent maintenance fund contribution for the gift or reduced price sale.
SECTION 10: It shall be unlawful for any person to fail to place the required contributions into the permanent maintenance fund or to remove any principal of the permanent maintenance fund from the trust.
SECTION 11: Any person who is in willful violation of Section 9 shall be guilty of a felony and upon conviction shall be punished by a fine of not more than six thousand dollars ($6,000) or by imprisonment in the state penitentiary for not more than six (6) years, or by both find and imprisonment.
SECTION 12: The City of Jonesboro shall make and keep accounts and records which shall indicate that it has made the required contributions to the permanent maintenance fund.
SECTION 13: All other ordinances or parts thereof in conflict therewith are hereby repealed.