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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