HomeMy WebLinkAbout2799 Report of Committee on Trust Funds, March 12, 1906 March 12th 1906 . .
Your Committee on Trust Funds reports as follows .
The town Treasurer reports the following Trust Funds :
Dated.
Carey Library Trustees-------$61000 .00 at 6%. 1883
Carey Library Trustees--------5, 000 .00 " 6X 1887 .
Bridge Fund - ------ -----------3, 000 .00 " 6% 1891
Beals Fund---- -----------------2, 000.00 " 6jo 1892.
Gammell Fund -------- ------- -- 500 .00 " 7`r 1874 .
Gilmore Fund --------- -------- 500 .00 " 5o 1894 .
Cemetery Trust Funds ----- ---9 , 910 .00 " 5% 1877.
25 , 910.00
The Selectmen have also received $2500 .00 from the Geo . 0 . Smith Estate ,
tL-e income of which is to be paid to the Field & Garden Club . This last
sum has been very wisely placed by the Selectmen in the Savings Bank .
We believe it was a mistake in the beginning to allow trust
funds to merge in town receipts and expenses . Under an easy going method
different rates of interest have been fixed , and the trust funds dropped
into the treasury to be spent for expenses that should have been covered
by annual assessments or provided for by a debt with definite terms of
payment . .
The total amount of interest the town pays on these funds is
$1455 .00 . 0n the same amount of the town notes the town would pay $906 .00,
making a difference of $549 . 00 saving in interest . If the town wishes
' to contribute to any of the beneficiaries of the trust funds , the Carey
Library, for instance , it should make an annual appropriation for that
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jpurpose , and then would know clearly what it contributes .
It is not a question of the solvency of the town or of saving
interest , but of treating trust funds according to the strictest standards
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of business morality. No citizen, a trustee of private funds , should say
"I was as solvent as the town when I mixed trust funds with my business . "
without the retort: "The town of Lexington is not in debt to its trust
funds . They are entirel7.r apart from the public business. "
We recommend that a committee be appointed by the town to take
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charge of all the town' s trust funds , and that the town issue a series
of notes vdth the proceeds of which all trust funds shall be paid into
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the hands of this committee .
Whether this committee is appointed or not , we recommend that
hereafter all sums received in trust for cemetery lots be invested in
the Lexington Savings Bank in separate accounts and the income of each
fund be expended on the lot specified , and that the town allow only the
same rate of interest it can collect from the savings bank.
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