HomeMy WebLinkAboutFIN-05-045 - Trust Fund Agreements - Donation of Funds for the Support of Arts & Culture
)
db
KITCHENER
Financial Services
~
Report To:
Date of Meeting:
Submitted By:
Prepared By:
Ward(s) Involved:
Date of Report:
Report No.:
Subject:
Mayor Carl Zehr and Members of Council
December 12, 2005
Pauline Houston
Pauline Houston
All
December 6, 2005
FIN-05-045
Trust Fund Agreements - Donation of Funds for the Support of
Arts and Culture in the City of Kitchener
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute a Deed of Gift Agreement with the
Kitchener Waterloo Community Foundation and 1258703 Ontario Limited and an
Advisor Agreement with 1258703 Ontario Limited, both to the satisfaction of the City
Solicitor and City Treasurer, for the purposes of the City holding funds in trust to be
disbursed for the benefit of arts and culture within the City of Kitchener.
REPORT:
City Staff were approached to consider holding donation funds in trust to be disbursed
to arts and culture organizations and/or grants/scholarships to individuals within the City
of Kitchener, as outlined in the attached "Advisor Agreement". As a municipality, the
City of Kitchener can hold the funds in trust for a longer period of time, compared to the
time period required for the Community Foundation. This arrangement, therefore allows
the "advisor" more flexibility in terms of timing of release of funds to the ultimate
recipients. The proposed time period that the City would hold the funds in trust is a
maxi mu m of five years.
Although these agreements do not provide any direct financial benefit to the Corporation
of the City of Kitchener, there is substantial benefit to the arts community as a whole
within the City of Kitchener, which the City would normally provide direct program
support or grant support as part of our Arts and Culture mandate. As a result, in Staff's
opinion, this agreement has benefit to all parties and is worthy of the City's support.
The agreements as drafted by the donor have been reviewed by Lesley MacDonald,
City Solicitor, who is in agreement with the above recommendation.
FINANCIAL IMPLICATIONS:
The funds, held in trust will be invested in accordance with the City's investment policy.
All investment income earned on these funds will accrue to the trust fund. No
administrative fees will be charged. The administrative time and cost to invest disperse
and report on these funds is considered minimal and will be absorbed by the existing
operating budget of the Financial Services Department.
Pauline Houston, CA
General Manager of Financial Services &
City Treasurer
PH/mf