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Board to gather records after complaint that perpetual care funds were used to cover equipment debt
Summary
Board members reported a state police officer registered a complaint about the perpetual care fund; the board said a manager during the emergency-manager period borrowed from the fund to pay equipment indebtedness and that staff indicated the funds are in place and will be returned; the board requested documentation.
A board member told the Benton Harbor Cemetery Board that a state police officer had registered a complaint alleging money from the cemetery’s perpetual care fund was used during the emergency-manager period to pay equipment indebtedness so the equipment could be sold. The member said the manager at that time had arranged a payoff and that staff (via Rhonda) told the board those borrowed funds are now in place and will be returned to the perpetual care fund.
Board members said the sequence of events was confusing and asked staff to collect documentation to share with the state police officer and the board. One board member noted that historically the board had only accessed interest from the perpetual care fund (about $5,000) for operational cushioning, and asked for clarity on whether principal funds had been used and the amounts involved; the transcript records that amount available by interest was $5,000 but does not specify the total amount borrowed from the fund.
The board did not reach a definitive conclusion at the meeting; members asked staff to assemble records showing any transfers or use of perpetual care funds during the emergency-manager period and to report back to the board and the requesting officer.
