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Home My WebLink About2004-02-04-BLT-EC- MIN• 9,1► E l� C 19 =; Cary Memorial L 1874 R II.. STTS All EN • L L-' X 1 NI 0TON • MASSAU- IU5ljTI%S • 02¢20 • 791- 8 62 -62a 4 << 6 IL r• ' 9 AGE i n iv Committee T s �ce�u�� ®f T February 4,2004 • ,' Ca Hall 8:OOAM VA E A f o Cary Memorial Llbra at Car Hall Y 1605 MASSACHUSETTS AVENUE • LEXINCTON • MASSACHUSETTS • 02420 A PHONE: 781- 862 -6288 • WEBSITE: www.carylibrary.org Executive Committee Meeting Board of Library Trustees December 3, 2003 Minutes Chairman Rev. Dr. Peter H. Meek called the meeting to order at 8:10AM. Present from the Executive Committee were: Scott Burson, Vice- Chairman, and William Kennedy. Present from the Trustees: Selectman Peter Kelley. Present from the staff: Carol Mahoney, Director and Cynthia Johnson, Assistant Director. Prese from the Ca Memorial Library Foundation Board: Chairman William J. Dailey, Margery M. Battin, Ke r ry Brandin , Norman Cohen, Dan Fenn, Alan Fields, Chris Roth, and Shirley Stolz. Present from the Foundation staff: Danny Watt. Chairman Mee thanked hanked the Foundation Board members for attending the meeting and all of their work on the Capital Campaign. n. He also stated that once the library was up and running that the Foundation would continue to campaign for the endowment and be an important advocate for the library in the community. General Discussion of the Foundation told the members of the Executive Committee and Trustees that the Bill Dailey,. Chairman Foundation Board wou ld like to update the Trustees on the Capital Campaign and discuss future campaigns #)w that the Building Campaign p is completed. At the current time there is $600,000 outstanding in pledges to ie capital campaign Alan Fields Treasurer of the Foundation plans to transfer $3,490,000 to the town at the to the town primarily end of December. This will leave $260,000 owed p Y from pledges that are not due to be paid until 2005. Ala speaking Alan Fields has been s eakin to John Ryan, Comptroller, about the amount still owed to the town. - The town will go out to bond for $260,000 an Februa ry 2004 and the Foundation will assume responsibility for . servicing the debt ebt. This will cost the Foundation between $6,000 - $7,000 a year. The Board does not foresee any pledges not being paid. With .th • e close of the building campaign, Alan Fields • i ' I s discussed the current state of the library's endowment ... funds. As of November 30, 2003, the Trustees account balance was $852,668. The account has no seen a rirant r nni of nmwth due to the concentration on the building campaign and the general low performance of the y market over the past few ears. There was g eneral, discussion about the Trustees' past history with raising funds for the endowment. The New Century Fpd` was started in the early 90 "s and it intent was to raise a e ndowment fund b the�� turn of the century. The campaign handled by an outside agency million dollars for the a YF and was discontinued at the start of the Capital Campaign for the building. There was some raised $ 150,000 . • feelings left after the New Century Campaign was discontinued. It was felt that discussion about the negative feel• g f Alan • endowment did row during the late 80s and early 90's thanks to the oversight o this has dissipated. The en g 9 ' and the favorable financ a ndowment grew environment of the 90's. The e to $2 m i llion dollars because o the investments, and this gro wth allowed the Trustees to contribute $1 million to the building campaign. • he endowment for the Currently the library receives $48,000 a year from t purchase of adult materials. This P ears ago and has not increased since then. The Trustees budget for the past three figure was -set over 10 y g ' $160,665r. that support ort this budget come from the endowment, State Aid, fines years. has remained at Funds. t a pp • 9 • sources has declined over the years. To fund adequately the adult and fees, and gifts. Each of these. revenue p ast, the r endowment should be providing the library with'between $80,00 -$100,000 a year. In th p .ollection the endo p 9 rustees have had to take more than $48,000 from the endowment to support the budget for the adult collection costs. 1 Executive Committee Board of Library Trustees Minutes (cont.) December 3, 2003_ Comments were made that the Trustees endowment could be considered on "life - support" given its current state. Others felt that the Trustees should not take any further funds out of the endowment to support the adult collection. Norman Cohen asked how much is the town supported budget and what is the difference between what we receive and what the need is. Carol responded that the town budget is $1.4 and we need an additional $100,000. Alan Fields asked if the mission of the endowment is to support the adult collection or more. The discussion then turned toward the future of the Foundation and how to maintain the momentum of the Building Campaign and the interest of everyone who has donated. A worksheet prepared by Danny Watt was distributed. The worksheet reviews the Foundation's commitment to the costs of the construction, Building Fund balance, anticipated receipts, and Foundation expenses. The anticipated total receipts are $3,606,000. The anticipated expenses from January 1, 2004 — March 31, 2004 are $116,000. (See attached worksheet). Peter Meek inquired about the $66,000 cost for expenses. Danny Waft explained that this is for a three -month period and $50,000 ($5,000 & $45,000) will be sent to the Town to cover personnel costs. Peter Kelly raised a question about an annual fund. Scott Burson said that it is clear that we have to ask if we are going to continue to use the endowment for the adult collection and what role an annual fund plays in the support of the endowment fund. Peter Meek sees the annual fund as one thing but the endowment is different. Bill Dailey stated that experience has shown him that if you start raising funds to replace tax money you won't be as successful, however if you call it an endowment it will do much better. Question were raised as to where would the money come from to continue the Foundation office: after the first quarter in 2004. The Trustees? Should there be an annual fund? What is the climate in Lexington given the other needs in the community, such S's LEF and the Historic Society? Alan Fields as.a member of the Public', Trusts Committee Y 9 Y - stated that the continue to row each year even with the downturn-, in the economy. _ believes that there is a cost if you don't take advantage of saying thanks to those who have already given: You wont have their future support. Dan Fenn asked about the role of the Friends of Library and how much: do they generate each year. Carol estimated that is was around $10,000. Dan felt that we had to consider_ how this - would be integrated into library fundraising. _ Danny Watt reported that the Building Campaign had 2,264 donors.. 1,930 of :these :gave comp"Ietdd their -.. pledges and have not made a gift since June 2003 and many felt it important to .contact them immediately in order to keep hem interested. Kerry randin felt that we must structure the next few, ? ears`to ; Fetthe donors to p'Y Y g . continue their interest in.. donating to the library. Chris Roth as the Treasurer. of Lexington .Educatio'n, , . •: Foundation, wanted to clarify for everyone that there are regulations that require non- profis to be very clear on the division between annual fund and endowment. You cannot deposit fund solicited for the annual fund into the endowment and vice -a- versa. Peter Meek proposed that a subcommittee be formed with Peter, Carol, Bill and other. members. of the '; Foundation.`Board o sit down and develop 'a- structure for :going forward with .the.Trustees :and the Foundation i and re ort •back in * Janua ,,' -Bill Dailey felt that we have paid professional .'staff dn' d that is a majo "r difference between .the New - Centu ` Fund and the Buildin Cam ai n. We should move a , ead`' nr!Ut FTC Development y rY g p g. _ ■. Officer and the` Foundation :cant act inde endentl :from the- Trustees but. the -Foundation === Board members want _- the Trustees to be comfortable with an action the Foundation takes. The Foundation! has asked Danny Watt to stay on till ,March .2004 and the Foundation is waiting for the Trustees decision on the Foundation a officre. Goan forward after: March 2004 all of the Foundation funds will have been used. The endowment funds g • - have to be used to. support the Foundation .officee,, The Trustees supported the Foundation Board intent to send the - letter and will get back to the Foundation on a decision regarding usin .endowment funds to support the operating costs for the Foundation office. g g g The meeting adjourned at .9:20AM Respectfully Submitted p y , Carolyn Beckwith