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Vaughan Fund Minutes 09/09/2014

Vaughan Fund

September 9, 2014

Chairman David H. Webster called the meeting to order at 6:30pm.  Trustees present included Gerald W. MacPherson, Sr., Jean Demetracopoulos, John C. Kareckas, and Russell H. Abell.  Town Manager Perry Ellsworth was also present.

 Approval of Minutes

 1. 3-25-14:  On a motion by Mrs. Demetracopoulos, seconded by Mr. MacPherson, it was unanimously voted to adopt the minutes as written.

 New Business

 1. The Trustees discussed the current Investment Policy and if changes should be made to the investment allocations.  For the past several years, the practice has been to keep 1/3 in cash equivalent accounts, 1/3 in low risk, and 1/3 in growth funds.

 Mr. Kareckas stated that he would like to see a set amount rather than a percentage ($75,000, instead of the current $100,000) kept in liquid accounts with the remaining funds divided in the low risk and growth funds.  He added that this could better serve the interests of those that receive grants from the Fund.  [The amount available for grants each year is based on a percentage of the Fund’s gains].  In response to Mrs. Demetracopoulos’ question regarding how to rebalance the Fund, Mr. Kareckas suggested that we get a recommendation from Ryan (Hale, of Kennebunk Investments).

 Mr. Ellsworth recommended closing the Edward Jones CD (earning .01%) and transferring it to Kennebunk (currently paying .3%).  He added that he would call Ryan.  He may also be able to recommend other cash equivalent investments other than CD’s to maximize returns.

 Mr. Abell stated that what remains liquid should be based on the ultimate goal for the Fund.

 Mrs. Demetracopoulos stated that she would like to keep at least $75,000 liquid, the extra $25,000 going to the low risk funds, and keep 1/3 of the Fund in growth.

 Mr. MacPherson stated that because of market volatility, he would prefer to keep $100,000 liquid; and maintain the same disbursement policy for grants.

 Mr. Webster stated that as Trustees, they are responsible to get the most for the Fund without getting greedy.

 Mr. Kareckas thanked the other Trustees for their willingness to consider the change.

 ADJOURNMENT

 On a motion by Mr. Kareckas, seconded by Mrs. Demetracopoulos, it was unanimously voted to adjourn the meeting at 7:05pm.

 Attest:

 Barbara Bennett, CCM

Town Clerk