TOWN OF HANOVER TRUSTEES OF TRUST FUNDS

Transcription

1 TOWN OF HANOVER TRUSTEES OF TRUST FUNDS Meeting Minutes Tuesday, August 30, 2016 at 7:30 a.m. In attendance: S. Boyle (Trustee), P. Gardent (Trustee), J. Pierson (Trustee); W. Thomas (Wells Fargo); B. McClain (Town Administration) Scheduled to arrive at 8:30 a.m.: F. Bass (SAU #70 Hanover School District) Investment Performance Review Mr. Thomas distributed information to lead a discussion on the performance through June 30, 2016 of the Trustees accounts under his management. The Review Memorandum is attached as part of these minutes. After some general acknowledgement that the accounts out-performed the selected benchmarks for the 6 month period Jan-June 2016, the discussion turned to honing in on a performance presentation that would be most helpful to the Trustees. Trustee Gardent asked that more analysis be provided with the performance update; in sum, he would like information presented to him that will address the public on why the Town s trust assets either out-performed or under-performed the benchmarks. Mr. Thomas referred to the Portfolio X-ray of the fund which provided more information on asset allocation and specific portfolio weightings. Trustee Gardent suggested a performance review format that would start with the Trustee Investment Policy Statement, walk through the actual asset allocation and how this allocation stacks up against the benchmarks. He further suggested a bar chart to graphically portray some of this information, and asked that some information on fund expense ratios also be presented. Mr. Thomas appreciated this feedback as he is eager to provide the performance data in a presentation that the Trustees will find most useful. Mr. Thomas value bias was noted, and Mr. Thomas agreed to articulate his position on value for the Trustees to discuss at an upcoming meeting. Lou and Ann Bressett Memorial Endowment Fund Ms. McClain noted that Town staff and Mr. Thomas had met with Ledyard National Bank to coordinate some of the details to insure a smooth transfer of assets from Ledyard National Bank to Wells Fargo Advisors (for the Hanover Trustees of Trust Funds) to establish the Lou and Ann Bressett Memorial Endowment Fund. The initial transfer will create two accounts at Wells Fargo: one for the Annette D. Bressett Charitable Unitrust proceeds; and one for the Annette D. Bresset Revocable Trust proceeds. Trustees Gardent and Pierson signed the necessary documents to release the assets to Wells Fargo. Mr. Thomas will be following up with additional paperwork to be mailed to their home for signature to complete the necessary paperwork. The Trustees briefly discussed whether the funds should remain separate or be combined at some point in the future. Mr. Thomas noted that he believed that there was some difference in the stated uses of the funds per the trust documents. The Trustees asked that Ms. McClain schedule a meeting for late September 2016 devoted to identifying the open questions and issues they have related to the establishment, use and administration of the Lou and Ann Bressett Memorial Endowment Fund. Ms. McClain will then share these items with Town counsel for resolution and/or further discussion. Review and Approval of Annual State Reports (MS-9, Report of Trust Funds, and MS-10, Report of Common Trust Investments) Ms. McClain noted that these reports are tied back to the various investment statements and were reviewed by the Town s external auditors. Trustee Pierson moved to accept and approve for signature the MS-9, Report of Trust and Capital Reserve Funds, and the MS-10, Report of Common Trust Fund Investments, for the period Page 1

2 ending June 30, 2016; Trustee Boyle seconded the motion, and the motion passed unanimously. The forms were signed by the Trustees for submission to the State, as presented. Other Business Trustee Pierson moved to approve the minutes of the June 23, 2016 Trustees Meetings; Trustee Gardent seconded the motion, and the motion passed unanimously. The Trustees signed the annual fund reports to be distributed to the Hanover and Dresden School Districts, the Hanover Conservation Commission, the Etna Library Trustees, the Parks and Recreation Board, and the Town s General Assistance Coordinator. Bridgman Fund Disbursement Discussion with Dr. Frank Bass, Superintendent of Hanover and Dresden Schools The Trustees welcomed Dr. Bass who joined the meeting promptly at 8:30 a.m. Dr. Bass asked to meet with the Trustees to discuss the as yet unspent $40,000 disbursed for the fiscal year ended June 30, 2016 (as authorized at the March 3, 2015 Hanover School District Meeting). The Trustees wanted the record to reflect that this original disbursement had been certified by the Hanover School District to be spent in accordance with the decree of the Probate Court (i.e., not be used by the Hanover School District to reduce taxes, but to afford advantages in addition thereto to the students of the Hanover School District ). There was general discussion as to whether this disbursement should be returned to the Trustees and disbursed back once the Hanover School District (HSD) had identified suitable uses for these funds. If the projects were going to be identified in the near term, it makes more sense for the HSD to retain the funds and apply to qualifying expenditures; if the projects will not be identified for several months, it may be best to return the funds so they can be reinvested with the Bridgman Fund corpus and continue to work for the HSD. Dr. Bass will work with the Hanover School Board to make this determination and will keep the Trustees apprised. Mr. Thomas noted that the Bridgman Fund had $40,000 in cash assets ready to fulfill the disbursement authorized at the March 1, 2016 Hanover School District Meeting for the fiscal year ended June 30, Dr. Bass confirmed that these funds would not be spent, and the Trustees instructed Mr. Thomas to reinvest these funds. Trustee Gardent mentioned the occasional issue regarding Dresden School District trust funds. Currently, the Hanover Trustees of Trust Funds have been informally advised by the NH Charitable Trust Unit to not serve as Dresden School District Trustees given the bi-state nature of the school district and the possibility of conflicting laws between VT and NH governing trust funds. Consequently, the Trustees wanted Dr. Bass to know that although they have accepted occasional Dresden School District trust funds in the past (most recently, the Rueb Photography Prize, and the Murph Award), they will not be accepting any future Dresden funds without a legal opinion. The Town of Hanover does not plan to initiate any further exploration of this issue, but the Hanover Trustees of Trust Funds want Dr. Bass to know they stand ready to support the School District should they want to explore this notion further with their counsel. Finally, the Trustees wanted Dr. Bass to convey to the Hanover School Board their thanks for being such thoughtful stewardship partners of the Bridgman Fund. The Trustees look forward to attending an upcoming HSD meeting for their annual Bridgman Fund presentation. The meeting was adjourned at 9:00 a.m. Page 2

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