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HomeMy WebLinkAbout2002-04-08 02-167 ORDINANCEItem No. 02-167 Date: April S. 2002 Item/Subject: ORDINANCE, Amending the Code of the City of Bangor, § 45-9 -- Sophia Kirstein Student Loan Fund Responsible Departmal Legal In 1926 the Kirstein family created the Sophia Klrstein Student Loan Fund, giRing $10,000 to the City of Bangor for the fund. The City Council accepted the gHt and enacted what is new § 45-9 of the Code of the City of Bangor, Sophia Klrsteln Student Loan Fund. The ordinance provided that the money from the fund would be loaned to worthy boys and girls of the City of Bangor to help finance their education. A Board of Trustee; was appointed to manage the fund. At the March 11, 2002 meeting of the Board of Tn6tees, it was unanimously voted to ask the City to amend the ordinance to change It from a loan fund to a scholarship fund. Because of the ones Involved in colleNan loans, Me Board of Trustees has determined that it is net financially feasible to operate the fund as a student loan fund. The current balance of the fund Is approximately $124,000. The Board will continue to use the same cdteda for the granting of scholarships as trey did for the granting of loans. D Managers Comments: I N^a^U City Manager Associated Information: Budget Approval: Finance Director Inuced for vassage First Reading page 1 of 3 Refemal 02-162 ro Anigned ro Councilor Treble April 8, 2002 aN CITY OF BANGOR (TITLE.) ORDINANCE, Amending the Code of the Civ of Rancor. S 45-9 -- Sophia K'rstein Student Loan Fund Be If Gid~ by th MyClaunc9affae Cffyrle` a ,, asl;Pha : WHEREAS, in 1926 the City Council of the City of Bangor accepted a gift of $10,000 from the Kniumin family for the Sophia Kirstein Student Loan Fwd; and WHEREAS, pursuant to the wishes of the Kirstein family, the fund has been used to give loans to students of the City of Bangor or help finance their education; and WHEREAS, because of costs involved in collecting loans Ne Board of Trustees of the Sophia Khania Student Loan Fund bas determined that it is no longer financially feasible; and WHEREAS, the Board of Trustees of the Sophia Kustem Student Loon Fund has requested that it be permitted in give scholarships from the fund, rather than loans, NOW, THEREFORE, the Code of the City of Bangor, § 45-9 is amended as follows: §45-9. Sophia Khstein Student loan Scholarship Fund The fond of $10,000 heretofore donated for the creation of a memorial to Sophia Kirstein, and to be known and designated as the "Sophia Kirstein Student faen Scholarship Fund', shell he forever held in trust by said city in the manner and for the objects hereinafter provided. A. Use of hand. The principal and interest of this fund is to be leas,A used for scholarships to worthy boys and girls of the Cityof Bangorm help finance theta education. stay boy or girl who has been a resident of the City of Bangor for three years prior to time application for lean a scholarship is made and who is a resident of said city at the time he or she makes application may apply to the Trustees for a leen scholarship from this fund. B. Administration and reinvestment of fond. The administration and reinvestment of this fund is left entirely to the Trustees, subject to certain rules and regulations which have been submitted by the donors and which have been ratified by ation of the City Council. C. Council members not eligible for board membership. No member of the City Council shall be eligible to the office of a member of this Brand, and 02-16) the election to the City Council ofarry member of the Trustees shell create a vacancy in said (bard, and arty sensory arising in said Board shall, for fro unexpired term, be filled in the mmmr above presented by the City Council. D. Trustees swom in office. The Trustees shall be swom to the fa'thful performance of their duties under the limit and shall receive no compensation therefor. E. Charter provisions. Trustees shall be appointed as provided for by Section 13, Article V of the City Charter. F. Approval of Trustees for investments. The City Treasurer shall make no investments of or expenditures of my portion of said income without the approval of said lord of Trustees. G. Chair appointed. Upon appointment, said Trustees will elect from their number one member as Chair for a term not in exceed sic years. Said Trustees are in have power to receive funds or property, an be held in trust, from any source where such funds or property is given for the advancement of education or for my city improvement or betterment. (See down's suggestion filed in office of the City Clerk) H. Annualreportto CityCouncil: Said BoardofTrusteesshall annually present to the City Council, at the close of the municipal year, a report of its action muter said tmst, with a specific statement of all receipts and disbursements on ancient of said principal income for the year ending, hrofar as said statement can be made wiNout disclosing the mares of the borrowers. Note: Deletionsarelinedfirrengh andaddtionsveunderlined. IN Gin cOYNCIL April N. 2002 First gassing Referred to Finance Comittee I CLNBH IN CITY CrAll April 22, 2002 Motion Made and Seconded for Passage Vote: 9 yes Councilors voting yes: Allen. Haldacci. gravity. Farah®. Farrington, Nealley. Palmer. foramen S Tremble Passed CLTY CLIuuK V # 02-167 O ROINANCR (TITLE,) Amending the Code of the City of Rangor. §45-9—Sophia Kirstein Studeast Loan Fund (First Reading) Assigned! to Councilor _