BudCom 5/20/2014 (20) welcomed Chairman Silberdick of the Trustees of the Trust Funds
Channel: Citizen Jones
Date: 12/06/2014

from the "draft minutes";
Chairman Latimer welcomed Norman Silberdick, Chairman, and Stephen Falzone of the Trustees of the Trust Funds.  She said they had been invited to talk about the funds they handle.

Mr. Silberdick said they have three types of funds:  Common Trust, Capital Reserve Funds and the Real Estate Trust Fund.  At this time the Real Estate Trust Fund is at $18 million.  The objective is to generate income that goes to the Town.  There are also library trust funds, cemetery trust funds and a cemetery revenue trust fund that comes from the sale of burial plots.

Mr. Silberdick said money is also set aside for Special Education for Hampton Schools and Winnacunnet High School and also Town roads.  These are in short term investments and can be readily liquidated.  The bulk of the Trustees activity is devoted to the Real Estate Trust Fund.  Five years ago this fund dropped to a low of $13 million.  A new investment advisor, Mackensen & Co., was hired.  This firm also handles the bookkeeping for the Trustees.  Last year the Real Estate Trust Fund generated $600,000 that went to the Town to offset the tax rate.  Mr. Silberdick said all monies are with National Advisors Trust Co.  The Trustees comply with all State laws and go for periodic training.

Mr. Ladd asked if there was any flexibility about the amount of fixed income/cash and equities.  Mr. Silberdick said they were flexible.  Mr. LaBranche asked if the Trustees have to pay a tax when funds are moved around.  Mr. Silberdick replied that they do not.

Mr. Ladd asked if there would be any advantage for the Town to borrow for a short-term loan.  Mr. Silberdick said there was not.  The Town can borrow for a lower rate somewhere else.

Chairman Latimer thanked Mr. Silberdick and Mr. Falzone for their information.

A break was called at 8:30 p.m.

The meeting reconvened at 8:40 p.m.