HomeMy WebLinkAbout2016-069 (Amend 98-75 Library Trust Fund) RESOLUTION NO. 2016-069
A RESOLUTION AMENDING RESOLUTION 98-75,
RESOLUTION ESTABLISHING LIBRARY TRUST FUND
WHEREAS, during a review of accounts held by the City of Stillwater in Trust or for the benefit
of the Stillwater Public Library it was revealed that the balance funds in the Minerva Fund (the
"Minerva Fund") was less than was deposited in that fund, even though the fund was created
with the restriction that interest only be"spent on uses central to the Library's mission, and:
WHEREAS, the Minerva Fund was established by City Council Resolution 98-75 with an initial
deposit to the Fund of $63,700, part of which was the sum of $50,000 which had been
bequeathed to the Library by the Estate of Lolita Paulson as an unrestricted gift (the "Paulson
Gift"), and;
WHEREAS, when the Library Board requested that the Paulson Gift be held in the Minerva
Fund, the Library Board was unaware of the condition that the City Council would include in
Resolution 98-75, that interest only could be spent for Library purposes since the Paulson Gift
was unrestricted, and:
WHEREAS, on December 12th, 2006 at a regular meeting of the Library Board, action was
taken to request the City to move the $50,000 Paulson Gift from the Minerva Fund to the
Construction Fund, since the Library Board was unaware of the "interest only" restriction that
were contained in the Resolution, and;
WHEREAS, after due consideration the City granted the request of the Library Board and
released the Paulson Gift funds to the Construction Fund for the payment of construction costs
associated with the Library expansion construction, and;
WHEREAS, the correction of Resolution 98-75 is necessary to recognize the true intent of the
Library Board and the City Council since neither intended that a gift with no restrictions be
placed in a Fund that allowed only the spending of interest;
NOW THEREFORE BE IT RESOLVED, as follows:
1. That Resolution 98-75 be amended to restate the third paragraph to read as
follows: "WHEREAS, except for the funds from the Lolita Paulson estate in the amount
of$50,000, the balance of the initial deposit have been given to the Library by donors
who requested that the funds be invested and that only the interest be spent on uses
central to the Library's mission; and that the funds from Paulson Gift remain unrestricted
to allow that both principal and interest of the Paulson Fund be spent of uses central to
the Library's mission, and; that this amendment be effective NUNC PRO TUNC on the
7th of April, 1998.
Enacted by the City Council of the City of Stillwater this 22nd day of March, 2016.
CITY OF STI LWATER
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Ted Kozlowski, or
ATTEST:
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Diane F. Ward, Clerk