2020-08-20 Commissioner of Trust Funds Minutes

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Mr. Cohen asked who was making contributions to the Parker Hospital Trust funds, and Mr. Kume mentioned that those are some of the copayments for the services rendered. Ms. Klepeis added that the Commissioners had financial guidelines. Based on these guidelines, copayments were determined. Mr. Cohen noticed that one of the hospital funds had a $15 increase as a bequest. Mr. Kume confirmed that it looked incorrect and would research and adjust that accordingly. Ms. Cohen pointed out to Mr. Dockser the Scholarship funds and stated that they were approved in the previous meeting. He noted that some of the amounts were slightly different due to timing. Mr. Dockser asked if some of the Library Award could go towards purchasing technology. Ms. Klepeis replied that they were very specific and could only be used for what the donor had intended when they made the original bequest. Mr. Dockser asked when it comes to the Hospital Trust Funds, can these funds support an initiative or a center, and the funds would go towards nurses or anything related to health? What can we do and how to discuss using some of these funds. He was confident that at some point, this discussion about funding would come up. Ms. Klepeis mentioned that the restriction on the hospital funds is that the clients had to show financial hardship to benefit from this program. Also, the program needs to be in the medical-related field. Mr. Dockser asked about the process to request funds and if the first step would be to present to the Commissioners. Mr. Cohen confirmed and added that the Town Counsel would have to be involved to ensure we are not going against the cy press judgment and donor bequest. Mr. Daly gave a short overview of the investment activities. We still had to replace the few bonds that mature, and Mr. Lee, the broker, is searching for a replacement. With all the maturities that we had and the upcoming ones in the next two months, we are looking at reinvesting around $795K. Mr. Daly informed the Commissioners that the broker was having some difficulties replacing the bonds due to the yield guidelines that we had in place. We lowered the guidelines to 2.25%; however, he noted that we own most of the bonds at the 2.25% yield. Mr. Daly suggested that we adjusted the policy and lowered it to 2.000/x, considering the current situation with COVID and how it impacted the market. On a motion by Ms Klepeis seconded by Mr. Dockser the bond yield guideline was changed from 2.250% to 2.00% by a vote of 5-0 Mr. Daly informed the Commissioners that the bond portfolio has been improving to some extent. Simons Properties was one of the bonds that had gone down; however, it was up this month. The portfolio is doing well overall, and we have committed the broker to find replacement bonds. Next, Mr. Daly suggested raising some cash from the profits that the portfolio had from the SPDRs. Mr. Dockser asked if we were taxed on the gain, and Mr. Cohen responded that we were not taxed on them. Mr. Cohen asked Mr. Kume how much we sold last year, and Mr. Kume stated around $200K. Ms. Klepeis suggested to do $250K this year and made the following motion: On a motion by Ms Klepeis seconded by Mr. Daly, the following SPDRs were sold 152 shares bought on 5/10/13 150 shares bought on 5/17/13 152 shares bought on 5/24/13 150 shares bought on 5/31/13 and 151 shares bought on 6/7/13 for a total of approximately $250K by a vote of 5-0. Mr. Daly suggested to discuss reinvestment strategy. Mr. Cohen informed Mr. Dockser that we usually reinvest the proceeds back in the market and this consistency generates cash. The discussion at hand was for the time frame to reinvest the funds over 3,4 or 6 months. After a short discussion the following motion was made: On a motion by Mr. Klepeis second by Mr. Dockser, the reinvestment of approximately $250K was decided to be completed over six months with a purchase of SPDRs roughly $42K every month by a vote of 5-0. Page 1 2