HomeMy WebLinkAbout2010-06-14 10-214 ORDERCOUNCIL ACTION
Item No. 3 ' , A -1-4
Date: 6/14/2010
Item/Subject: Order, Authorizing Transfer of Home for Aged Women Trust Fund
Principal and Interest to Phillips Strickland House
Responsible Department: Legal
Commentary:
From the late 1800's to early 1900's the City designated as trustee for a number of individuals
bequests to benefit the Home for Aged Women. During this era, it was fairly common for
individuals to bequeath funds to the local government in support of a specific purpose. The City
currently holds six individuals funds to benefit the Home for Aged Women. The principal held is
$43,067 and the unexpended interest to date is $81,383.
Recently, it came to our attention that the Phillips Strickland House (PSH) was created when the
Home for Aged Men and the Home for Aged Women merged in 1975. The Board of Directors of
the PSH is responsible for the management of similar endowment funds.
The PSH has requested that the funds held for the benefit of the Home for Aged Women be
transferred to them to manage in accordance with the original bequests. The attached Order
would authorize the transfer contingent upon the City Solicitor's recommendation that all
pertinent provisions of law have been adhered to.
Manager' Comments:
Associated Information:
Letter from Phillips Strickland House
Budget Approval:
Legal Approval:
Introduced for
X Passage
First Reading
Referral
Department Head
Page _of_
City Manager
Director
City Solicitor
Assigned to Councilor — Weston June 14, 2010
CITY OF BANGOR
(TITLE.) Order, Authorizing Transfer of Home for Aged Women Trust Fund Principal and
Interest to Phillips Strickland House
By the City Council of the City of Bangor.
WHEREAS, the City of Bangor is trustee of a trust in the amount of $43,067 in principal created
by private bequests for the benefit of the Home for Aged Women; and
WHEREAS, the Phillips Strickland House, an organization created through the merger of the
Home for Aged Men and the Home for Aged Women; and
WHEREAS, the Phillips -Strickland House has requested transfer of the trust principal and
interest so that the funds can be invested and administered with other similar endowment
funds held by the organization; and
WHEREAS,
NOW, THEREFORE BE IT ORDERED, THAT the Finance Director is hereby authorized to transfer
and pay over to the officers of the Phillips -Strickland House all principal and unexpended
interest currently held for the benefit of the Home for Aged Women, and authorizing the City
Solicitor to take such actions as necessary to ensure compliance with any applicable provisions
of law.
IN CITY COUNCIL
June 14 2010
Pass
CITY CLERK
ORDER
(TITLE,) -Authorizing Transfer of Home
fnr Aved Women Trust Fund Principal and
�nerest to Phillips Strickland.House
Assigned to Couneitor W t
on)
21 Boyd Street
Bangor, Maine
04401-6560
Tel: (207)941-2820
Fax: (207) 941-2829
Nelson E. Durgin
Executive Director
Karen Higgins
Aministrator
BOARD OF DIRECTORS
Albert A. Gibson
President
Rev. James I. Haddix
Vice President
Barbara E. Gibson
Secretary
Glen Porter, Esq,
Treasurer
Melvin Braverman
Graceann Feher
Richard B. Hanson
James Nichols
Kenneth Rozeboom
Jane R. Shubert
Kristen Strong
Mary Warner, MD
March 30, 2010
Ms Deborah Cyr
Director of Finance
City of Bangor
73 Harlow Street
Bangor, Maine 04401
Dear Debbie:
J. w
It has recently come to my attention that the City of Bangor is maintaining, in
Trust, several accounts established originally for the benefit of the Bangor Home
for Aged Women. Generally known as the Wakefield Trust, the original account
was established by gift from Albert Wakefield in 1887. Subsequently five other
gifts and bequests were added to the fund which has been managed by the City of
Bangor since its inception.
In 1975, the Board of Governors of The Home for Aged Women voted to
merge with the Bangor Home for Aged Men. The newly formed not-for-profit
Corporation was named the Phillips -Strickland Corporation, in honor of the
founders, Mary Phillips and Lysander Strickland. The mission of the former
agencies, to provide housing and services to elderly Bangor area residents would
be continued in a new home. Property at 21 Boyd Street was developed and the
home, Phillips -Strickland House opened in January 1977. All of the Home for
Aged Women residents moved to the new facility which now is licensed by the
State of Maine as a 48 bed Residential Care Facility.
At some point in the mid 20th century, the overseers of The Home for Aged
Women discontinued drawing income from the Wakefield Trust, and no pay-
ments have been made to the Phillips -Strickland House. With 80% of the current
population of Phillips -Strickland House women who are financially dependent on
MaineCare for support, there is an annual unfunded cost of more than $400,000 to
maintain housing and services. The principal and income from the trust,
established to aid indigent elderly women in Bangor is needed to maintain the
continuity of care envisioned by the donors to the trust.
The Board of Directors of Phillips -Strickland House is responsible for the
management of an endowment fund to support the facility's services. I am
requesting that the City of Bangor transfer the principal and accumulated earnings
of the Wakefield Trust to Phillips -Strickland House (PSH) Charities for manage-
ment in accordance with the intent of the original donors. Please consider this
request at your earliest convenience.
Sincerely yours,
n E. Durgin
xecutive Director