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HomeMy WebLinkAbout2023-05-24-TPT-min TOWN OF LEXINGTON TRUSTEES OF PUBLIC TRUSTS Minutes of Meeting of May 24, 2023 The meeting was held at 1pm at 42 Adams Street, Lexington, MA. Trustees Alan Fields, David Williams and Susan McClements were present. Lexington resident, Jim Wood, was also present. 1) Approved minutes from 12.8.22 meeting. 2) Jim Wood introduced himself and reported that he was attending the meeting to learn more about the Trustees of Public Trusts and, as a member of the Veterans council, he wanted to hear more about the Pat Flynn youth award. 3) Susan McClements will follow up to schedule a meeting with Mary Ellen Ringo, Director of Development at Cary Memorial Library, about whether there are other funds available for the Children's Room project at the library. David will attend the meeting with Mary Ellen if he is available. 4) David Williams reported that at the beginning of the year the annual distribution of the income balances, as of 12/30/22, were distributed from specific scholarship funds to the Lexington Scholarship Committee, from the Cemetery funds to the Cemetery Committee and to the Garden Club. 5) David also reported that the following seven funds asked that income balances as of 12/30/22 be transferred to principal: Williams Scholarship Fund, Symphony Fund, Alice Hinkle-Prince Estabrook Award Fund, Artis Benevolent Fund, American Legion Celebrations Fund, Leroy S. Brown Fund, Charles E. French Colonial Cemetery Fund 6) As part of a new structure and reporting process, select funds received notice at year end of assets/cash available for the upcoming (2023) year for distribution. 7) Scholarship funds not administered by the Lexington Scholarship Committee were notified at year end what was available for distribution in 2023 when distribution is requested at the end of the summer. 8) David Williams reported that there was some confusion about who was responsible for directing distributions from certain FOLMAD associated funds. FOLMAD is responsible for directing distributions from three funds: Lexington High School Music Endowment Fund, Ellalou Dimmock Prize for Vocal Excellence Fund, and Jeff Leonard Jazz Musician Fund. 9) Online donations may now be made to certain existing funds through the Town of Lexington online donation portal located at https://www.lexingtonma.gov/523/Donate-to-Lexington-Charitable-Funds 10)David Williams reported that Karen Bolster from the Treasurer's office has been promoted and someone new will be taking over her responsibilities in the Treasurer's office. David will speak with that person about Trustee process/matters after they are hired. 11)The planting of a tree in honor of long-time DPW employee Jack O'Shea was done by the DPW. The DPW will notify the family. 12)David Williams proposed that the Trustees consider using the Gilmore Fund to establish a new fund for buying plants for annual planting on traffic islands. This is currently done by the garden club with garden club members donating the plants. The Trustees agreed to discuss this further but took no action at this time. 13)There was a brief discussion about a potential conflict between two youth awards from funds managed by the Trustees. The Charles Ferguson awards is typically made by the Youth Commission each year and in the past has been presented on Patriots Day. The Pat Flynn Award was established this year and given by the Veteran's committee on Patriots Day. No one from the Youth Commission requested funds for the award this year. Decisions about what awards are presented on Patriots Day are the purview of the Celebrations Committee and not for the Trustees to decide or mediate. 14)The Trustees discussed increasing the minimum amount required to establish a new fund from $l OK to $20K, and will continue to consider doing so,but want to be mindful of people wishing to establish scholarship funds for the Lexington Scholarship Committee to distribute. Susan McClements and David Williams expressed concern that the increase would make it difficult for many to raise the funds for a scholarship fund. 15)Alan Fields shared the following report from investment committee: Despite recent signs of a slowing economy, continued inflation concerns, the failure of two regional banks and a continued Federal Reserve policy of rising interest rates,the equity markets were remarkably resilient. With the exception of the Monroe Fund(-0.15)all portfolios generated positive returns. Three,five,ten and since inception periods exceed their benchmarks, results for the first quarter and one year lag . The wide performance disparity between the tech heavy S&P 500 index and the dividend oriented Value index has been unusual.Five stocks Apple,Microsoft, Alphabet, Meta and NVIDIA contributed over 65% of the S&P 500 and the wide disparity was further reflected in the performance of the Russel Growth Index which posted a 14.3% gain versus al.01% gain generated by the Russel Value index. In as much as our funds require a growing income stream, especially when interest rates have been so low, diversification between the two investment styles continues to be a valid prudent strategy for our funds. Meeting adjourned at 2:3Opm. Respectfully submitted, serf, K W Susan K. McClements, Trustee Trustees of Public Trusts