10.04 Friends of the Pequot Lakes Library Request

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• Once again, the Attorney states throughout his document that "donations" cannot be returned. The FoPL believes the Attorney is missing the point. The funds in question were not donated to the City. They were sent to the City to be held and invested on behalf of the FoPL. Once it was learned that FoPL could invest the funds directly, it requested the funds be returned. • The funds to be held in a fiduciary capacity were initially invested Certificates of Deposit and identified as Endowment funds. More recently most of those funds have been moved to the Wells Fargo account as CD returns were very low. The September, 2015 deposit also went directly to the Wells account. • Now that FoPL has learned that it can directly invest funds, it would like to have the funds held in a fiduciary capacity returned. • At the end of the day, I think it is fair to say that errors were made along the way by both sides. While FoPL thought that designating funds as Endowment made it clear as to the intent, perhaps that was not the case. And, as pointed out above, the City improperly allocated the Endowment funds to a Donations category. Council Action Requested: The FoPL is requesting the Council to: recognize that funds sent to the City, invested in 4 Certificates of Deposit and identified as Endowment Funds were not donations to the City; recognize that funds sent to the City in the amount of$40,000 in September, 2015 and invested in the Wells Fargo account were not donations to the City; recognize that all of the funds in the two bullet points above were incorrectly allocated to a "donations" account as opposed to a more appropriate fiduciary account to be held for the FoPL; recognize that all of the earnings from these accounts over the time period have, appropriately, been included in the Pequot Lakes Library income account to help pay regular Library expenses; agree that the principal amount should be returned the Friends of the Pequot Lakes Library. Thank you