5.1. SR 05-10-2010Item # 5_1.
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MEMORANDUM
TO: City Council
FROM: Lori Johnson, City Administrator
DATE: May 10, 2010
SUBJECT: Request from Orono Cemetery Association
Over the past few years, Jim Nystrom, representing the Orono Cemetery Association, and I
have met several times to discuss his ideas for the future of the Orono Cemetery. He has
been attempting to find a suitable organization to take over the ownership of the cemetery
for various reasons that he will explain at the work session. Although the cemetery is well
maintained and financially solid, he has been unable to find another appropriate organization
willing to accept ownership.
The Orono Cemetery Association wants to discuss with the City Council the possibility of
transferring ownership of the cemetery to the City. The Association needs to transfer the
cemetery to an organization that would guarantee its future in perpetuity. Therefore, the
City has become the organization of last resort. Although cities are allowed to own
cemeteries, it is an endeavor most cities, including Elk River, would not choose to do
voluntarily.
As I stated earlier, cities are allowed to own cemeteries and take ownership via transfer of an
existing cemetery. Minnesota Statute X306.025 states, in summary, that a public cemetery, by
unanimous vote of the board of trustees, may transfer ownership of the lands, along with
other funds and property to the city in which it is located. The city may accept the transfer
and continue to maintain and operate the cemetery. The city is not required to accept a
transfer of the cemetery.
As you can imagine, the ownership of a cemetery brings with it additional, unique demands
that the city is currently not prepared to perform, such as maintenance of the cemetery
grounds, sale of cemetery lots, and all of the administrative, recordkeeping, and financial
functions that go along with owning a cemetery. It also places obligations on the City
Council as the Council must retain complete discretionary control of the cemetery.
Finally, no action is requested on this item at this time. It is important that the Council fully
understand the benefits, obligations, and responsibilities of cemetery ownership before
S:\Public Bodies\Council\Lori\2010\Orono Cemetery 05 10 l0.doc
making a decision on this request. Further, the Council may have suggestions of other
potential owners that the Association could explore. As background information, there axe
two attachments to this memo fox your review: The first attachment is a brief history of the
Orono Cemetery prepared by Jim Nystrom. The second is a copy of Minnesota Statute
X306.025, Transfer of Cemetery to Local Government Unit, which defines the terms under
which a city may accept transfer of the cemetery and the obligations that follow if a city does
accept the transfer and become owner of a cemetery. If you would like additional
information to get a full understanding of cemetery ownership, the League of Minnesota
Cities has prepared a publication entitled "Cemetery Regulation." If you would like a copy
prior to Monday's meeting, please contact me or download it from the League's website.
S:\Public Bodies\Council\Lori\2010\Orono Cemetery 05 10 l0.doc
Su~~'ni~-1-~c~ ~' Jim I~fyS~rv-rn, Orono Cerne~-e~-y l3~arc~ r''lEn~e.r
ORONO CEMETERY ASSOCIATION
BACKGROUND: The Orono Cemetery is one of the oldest institutions in Elk River. It
was established in the village of Orono several years before Minnesota became a state.
The earliest known burial was made in 1854. In the early 1900s, several community
leaders incorporated what was a burial ground into the Orono Cemetery Association. The
Cemetery was incorporated as anon-sectarian, non- profit organization. A set of by-laws
established burial rules and a means of providing funds for perpetual care of the grounds.
CEMETERY GROUNDS: The cemetery covers about seven acres and is surrounded on
three sides by Lake Orono. It is accessed from the south by Boston Street. About one half
of the grounds are developed. The existing developed grounds should last at least five
more years at current burial rates. After that time, a portion of the undeveloped property
will have to be improved.
In 1999, when the City of Elk River removed sedimentation from the bottom of Lake
Orono, a portion of the excavated sand was used to re-contour the surface of the
undeveloped part of the grounds. The same year the City extended a water main to the
cemetery to supply water for an irrigation system.
RECENT HISTORY: According to the Association's by-laws, the business of the
cemetery is directed by a board of directors who are elected by (living) owners of lots.
During the past ten years, the number people interested in the cemetery have diminished
and there have been no longer enough participants to conduct a business meeting. The
Association has valuable assets in land and endowment, but no one to administer them.
The remaining Association members have been looking for an organization that can
continue to perpetuate the operation of the Cemetery.
PRESENT CONCERNS: The Association's members' principle concern is the long term
protection of the Cemetery's assets (land and endowment). The second concern is
simpler; it needs help in keeping records, and receiving, disbursing, and investing funds.
Presently the Cemetery is well served by its caretaker. In the short term, day-to-day work
is being successfully completed.
306.025, 2009 Minnesota Statutes Page 1 of 1
2009 Minnesota Statutes
306.025 TRANSFER OF CEMETERY TO LOCAL GOVERNMENT UNIT.
Subdivision 1. Acceptance. A public cemetery association owning a cemetery may transfer it to a
statutory or home rule charter city, town, or county in which the cemetery is wholly or partly located,
together with all the funds and property of the association, whether the funds are of a trust character or
otherwise. The statutory or home rule charter city, town, or county in which the cemetery is wholly or
partly located may accept a transfer of the cemetery and of its property and funds, and may continue to
operate, maintain, manage, and conduct the cemetery, and to sell lots and provide for the burial of the
dead in the cemetery. Funds received from the cemetery association upon transfer shall be administered
by the statutory or home rule charter city, town, or county for the same purposes and upon the same trusts
for which they were originally established.
Subd. 2. Transfer, how made. To accomplish a transfer, the board of trustees of the cemetery
association shall first adopt a resolution to that effect by a unanimous vote of the members of the board of
trustees, after which the chair or president of the board of trustees and the secretary are authorized to
execute the proper instruments to evidence the transfer. However, the transfer must first have been
authorized by a majority vote of all the members of the association at a regular or special meeting called
for that express purpose.
Subd. 3. Local government unit to accept by resolution. Before the transfer is made, the
governing body of the statutory or home rule charter city, town, or county in which the cemetery is
wholly or partly located shall first adopt a resolution agreeing to accept the transfer of the property and
funds of the association, and agree to continue to operate, maintain, manage, conduct, and control the
cemetery, to sell lots in it, and to administer its funds for the same purposes and upon the same trusts for
which they were originally established.
Subd. 4. Trust fund for perpetual care. If a trust fund for the perpetual care of cemetery lots is
transferred to a statutory or home rule charter city, town, or county under this section, then the fund must
be preserved and kept and used and administered for the same purposes and upon the same trusts as if the
transfer had not been made. Lots for which payment in full for perpetual care has been made to the
cemetery association are entitled to receive perpetual care, and the statutory or home rule charter city,
town, or county shall provide it.
Subd. 5. Rights of lot owners. After transfer, lot owners are entitled to the same rights and
privileges concerning their lots as if the transfer had not been made.
Subd. 6. Maintenance. After the transfer has been made and accepted by the statutory or home rule
charter city, town, or county, the governing body of the statutory or home rule charter city, town, or
county shall operate, maintain, conduct, control, and manage the transferred cemetery. For that purpose it
may appoint a committee of the governing body.
Subd. 7. Rules. The governing body of the statutory or home rule charter city, town, or county may
adopt rules and regulations to conduct, manage, maintain, and operate the cemetery, but the rules may not
infringe upon the rights of persons who were lot owners at the time the transfer was made.
History: 1945 c 188; 1973 c 123 art 5 s 7; 1986 c 444; 1988 c 469 art 5 s 1; 1996 c 413 s 3
https://www.revisor.mn.gov/statutes/?id=306.025 05/03/2010