HomeMy WebLinkAbout20194595.tiffRESOLUTION
RE: APPROVE CREATION OF THE WELD COUNTY TRUST FUND
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, Weld County on September 30, 2019 sold property and equipment
associated with the NCMC hospital, and
WHEREAS, the Weld Trust, a Colorado nonprofit corporation recognized by the Internal
Revenue Service as exempt charitable organization under Internal Revenue Code section
501(c)(3), was created to deposit the county's proceeds from the NCMC sale, and
WHEREAS, on September 30, 2019, the Board of County Commissioners of Weld County
and The Weld Trust, a Colorado nonprofit corporation, formerly known as NCMC, Inc. ("Weld
Trust") entered into a restricted fund agreement, and
WHEREAS, in accordance with the restricted fund agreement the Weld County fund shall
be established on the books of Weld Trust as a restricted fund and will be known as the Weld
County Fund (Fund #7400), and
WHEREAS, the Weld County Fund shall include the proceeds from the NCMC sale
transaction ($59,546,220), and all other gifts, grants, contributions and other revenues received
and accepted by Weld Trust for inclusion in the Weld County Fund, and all income and gains
received with respect thereto, and
WHEREAS, until otherwise amended as provided in the restricted fund agreement, and
so long as such mission and purposes are consistent with Weld Trust's charitable purposes, the
purpose of the Weld County Fund shall be to support the charitable purposes and programs of
The Weld County Bright Futures program ("Bright Futures"), which provides financial assistance
to students who pursue post -secondary education or training from an accredited higher education
institution or certified training program. The Bright Futures program is available to Weld County
residents according to the provisions of the Bright Futures program, and
WHEREAS, so long as the Weld County Fund exists, Weld Trust shall render reports at
least annually to the Weld County Board of County Commissioners showing the assets held by
the Weld Trust and all receipts, disbursements and distributions during the period covered by the
applicable report. All records of Weld Trust related to its management of the Weld County Fund
shall be available at all reasonable times for inspection or audit by the Weld County Board of
County Commissioners, or a person that the Weld County Board of County Commissioners has
designated by written notice to Weld Trust, and
WHEREAS, all assets for the Weld County Fund held as part of the Weld Trust shall be
invested by Weld Trust in accordance with its general investment policies and objectives as in
effect from time to time. Weld County Fund assets may be commingled with other assets of Weld
Trust for investment purposes, provided that accurate accounts are kept of the Weld County
Fund's share of any such commingled investments, and
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WHEREAS, the Director of Finance and Administration is recommending that Weld
County's share of the Weld Trust, known as Weld County Fund be recognized on the financial
books and financial reports of Weld County government as an identifiable trust fund to specifically
identify Weld County's share of the Weld Trust (Weld County Fund) in a separate trust fund for
accountability and transparency, and
WHEREAS, the Director of Finance and Administration is recommending that Weld
County approve the creation of the Weld County Fund Trust Fund (Fund #7400) on the books of
Weld County, and
WHEREAS, the Director of Finance and Administration is recommending the Board of
County Commissioners of Weld County approve the attached policies and procedures (Exhibit A)
to provide policy direction to administer the Weld County Fund Trust Fund.
NOW, THEREFORE, BE IT RESOLVED by the Board of Weld County Commissioners
that the Weld County Fund Trust Fund (Fund #7400) be created on the books of Accounting and
the County Treasurer for the purposes of accounting for the funds for Weld County's share of the
Weld Trust (Weld County Fund), and
BE IT RESOLVED by the Board of Weld County Commissioners that the attached policies
and procedures (Exhibit A) to provide policy direction to administer the Weld County Fund Trust
Fund are hereby approved.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 23rd day of October, A.D., 2019.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST:
Weld County Clerk to the Board
Mike Freeman, P —Tem
BY:
eputy Clerk to the Board
Sean P. Conway
APPRO AS TO FO
K. James
Steve Moreno
y • tt: ey
Date of signature: (°/211
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Exhibit A
WELD COUNTY TRUST FUND POLICIES AND
PROCEDURES
Purpose of Fund. Until otherwise amended as provided in the September 30, 2019, agreement
with The Weld Trust, a Colorado nonprofit corporation, formerly known as NCMC, Inc. ("Weld
Trust"), and so long as such mission and purposes are consistent with Weld Trust's charitable
purposes, the purpose of the Weld County Trust Fund ("Weld County Fund") shall be to support
the charitable purposes and programs of The Weld County Bright Futures program ("Bright
Futures"), which provides financial assistance to students who pursue post -secondary education
or training from an accredited higher education institution or certified training program. The Bright
Futures program is available to Weld County residents according to the provisions established by
the Weld County Board of County Commissioners and Greeley/Weld County Economic
Development Action Partnership, Inc., a Colorado nonprofit corporation ("Upstate"), which has
been appointed by the Weld County Board of County Commissioners to administer the Bright
Futures program.
Property Constituting Fund. The Weld County Fund shall include the property from the NCMC
sale transaction, and all other gifts, grants, contributions and other revenues received and
accepted by Weld Trust for inclusion in the Weld County Fund, and all income and gains received
with respect thereto.
Use of Fund Assets.
(a) Distributions. Distributions from the Weld County Fund shall be made, and checks
shall be issued in support of Bright Futures solely as directed by the Weld County
Board of County Commissioners or a person that the Weld County Board of County
Commissioners has designated by written notice to Weld Trust to provide such
directions. It is anticipated that Weld Trust will only distribute net income of the
Weld County Fund.
(b) General Restrictions. The administration of the Weld County Fund, pursuant to
the September 30, 2019 agreement with the Weld Trust, shall at all times be
subject to the provisions of the Articles of Incorporation and the bylaws of Weld
Trust. The Weld County Board of County Commissioners acknowledges that
under such governing documents of Weld Trust and applicable tax regulations,
Weld Trust shall have the power to modify any restriction or condition on the
distribution of funds for any specified charitable purposes or designated
organization if in its sole judgment (without the approval of the Weld County Board
of County Commissioners or any other person) such restriction or condition
becomes, in effect, unnecessary, incapable of fulfillment or inconsistent with the
charitable status of Weld Trust. In taking any action pursuant to this subparagraph,
Weld Trust will act in good faith. Weld Trust will provide the Weld County Board
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of County Commissioners with written notice at least 30 days prior to taking any
action pursuant to this paragraph.
Reports and Access to Records. So long as the Weld County Fund exists, Weld Trust shall render
reports at least annually no later than January 31St each and every year to the Weld County Board
of County Commissioners showing the assets held by the Weld County Fund and all receipts,
disbursements and distributions during the period covered by the applicable report. All records
of Weld Trust related to its management of the Weld County Fund shall be available at all
reasonable times for inspection or audit by the Weld County Board of County Commissioners, or
a person that the Weld County Board of County Commissioners has designated by written notice
to Weld Trust.
Weld County's share of the Weld Trust, known as Weld County Fund, will be recognized on the
financial books and financial reports of Weld County government as an identifiable trust fund to
specifically identify Weld County's share of the Weld Trust (Weld County Fund) in a separate trust
fund for accountability and transparency. As a result, the Board of Weld County Commissioners
on October 23, 2019, by resolution created the Weld County Fund Trust Fund (Fund #7400) on
the books of Weld County Accounting and the Weld County Treasurer for the purposes of
accounting for the funds for Weld County's share of the Weld Trust (Weld County Fund).
Investments. All assets held as part of Weld County Fund shall be invested by Weld Trust in
accordance with its general investment policies and objectives as in effect from time to time. Weld
County Fund assets may be commingled with other assets of Weld Trust for investment purposes,
provided that accurate accounts are kept of Weld County Fund's share of any such commingled
investments.
Although the funds may be commingled it is planned that the investment institution (First National
Bank) will provide separate accounts and reports for the Weld County Fund monthly to make it
easier to track the fund's investments and income.
Initially, the Weld County Fund portfolio will include a $42,006,026 promissory note earning 5%
per annum due and payable December 1, 2027, with amortization payment made monthly. The
remaining portfolio ($17,540,194) will be invested in equities, since the promissory note covers
the fixed income portion of the portfolio. The Director of Finance and Administration and the Weld
County Treasurer will work with the Weld Trust Finance Committee to develop an investment
policy for Weld County Fund to be approved by the Weld County Board of County Commissioners.
Administration Fees and Expenses. Weld Trust shall be entitled to pay or reimburse itself for all
reasonable expenses incurred by Weld Trust in establishing and administering Weld County
Fund.
Management of Fund's Principal and Annual Allocation Planning Goals.
a) The Weld County Trust's principal will not be disbursed. The Weld County Fund will only
distribute net income of Weld County Fund.
b) The Weld County Trust's principal will be grown to at least have Weld County Fund
principal keep pace with inflation.
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c) Only the net income of the Weld County Trust shall be distributed. The net income shall
be calculated annually by taking the year-end principal balance amount less the sum of
the beginning principal balance, plus the principal times the average inflation rate for the
last prior five years. (Year-end Principal — Beginning Principal - (Beginning Principal time
average last prior five years' inflation rate) = Net Income). Inflation rates used shall be the
same rates as the annual TABOR calculation rates per Colorado Department of Local
Affairs.
d) The amount for annual net income distribution shall be calculated by the Weld County
Director of Finance and Administration. Weld County Board of County Commissioners
may approve an amount for distribution up to the net income amount and any excess net
income from prior years not previously distributed. A letter signed by the Chair of the Weld
County Board of County Commissioners authorizing the distribution amount shall be sent
to the Weld Trust administrator for payment.
Bright Futures Funding. Payments from Weld County Fund to the Bright Futures program shall
be deposited into the Bright Futures Trust Fund (Fund #7018) for payment of grants to students.
Any change to these policies and procedures shall be approved by the Weld County Board of
County Commissioners by resolution.
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