HomeMy WebLinkAbout2020-08-20 Commissioner of Trust Funds Minutes r
Town of Reading R E G E I V h, D
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Board - committee - Commission - Council: "21 ING" 24 PM 2: 58
Commissioners of Trust Funds
Date: 2020-08-20 Time: 7:00 PM
Building: Reading Town Hall Location:
Address: 16 Lowell Street Session: Open Session
Purpose: General Business Version: Final
Attendees: Members - Present:
Neil Cohen, Mark Dockser, Jahn Daly, Elizabeth Klepeis, and Endri Kume
Members - Not Present:
Others Present:
Minutes Respectfully Submitted By: Endri Kume
Topics of Discussion:
Mr. Cohen called the meeting to order at 7:04 PM. This was a virtual Zoom meeting.
Open Session for topics not reasonably anticipated 48 hours in advance of the
meeting
None
Meeting Notes
Minutes from May 27th, 2020, were approved as follows:
On a motion by Ms Klepeis seconded by Mr. Daly, the Minutes of the 5/27/2020 meeting
were approved as amended, by a vote of 5-0.
Review Cash Flow, Scholarships/Awards and Trust Balances Reports
Mr. Cohen asked Mr. Kume if he had an update on the Elderly Service position formerly
occupied by Jane Burns. Mr. Kume explained that there was restructuring in the
Department of Public Services, where the division of Elderly Service was located. There was
a new Assistant Department Head who was hired, and this position would cover some of the
responsibilities that Ms. Burns had in her capacity. The position for Elderly Services
Coordinator was still vacant, and Mr. Kume informed the Chair that it was not listed yet on
the HR website. Mr. Dockser added that as a member of the Council on Aging, he told the
board that this restructure would only allow a partial position and not a full time. The
Council on Aging had asked Mr. Dockser to bring this issue in front of the Town Meeting and
add some more funds, and for the budget year 2021, this had passed, and now it was a full-
time position. Mr. Kume informed the Commissioners that he had researched and addressed
the $6000 receipt, which was a clerical error and was fixed.
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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.
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Reading Response Program
Ms. Klepeis provided a brief overview to Mr. Dockser of the Reading Response program, how
it worked, and the primary services. The main goal for the Reading Response Program was
to be up to date with what the need was and provide a solution or support for that need. Mr.
Dockser mentioned that he had become aware that due to Covid-19, some seniors couldn't
go to the doctor for their routine check. He wondered if there was a possibility of purchasing
some blood pressure monitor, especially now that travel to doctors was minimal. Mr. Daly
asked how much a blood pressure monitor typically costs, and Mr. Dockser stated well
under $100. Ms. Klepeis asked if we know that these were financially needy people, and Mr.
Dockser responded that he did not know. Ms. Klepeis suggested that this request was a
better fit for Counsel on Aging as they were less restricted on spending their funds.
Next Meeting
The next meeting was scheduled for November 19'^, 2020, at 7 p.m.
On a motion by Ms Kleoeis seconded by Mr. Daly, the Commissioners voted to adiourn its
meetina at 8.26 o m by a vote of 5-0
Respectfully submitted, Secretary
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