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Sumner County discussion centers on Brown House trust funds, mayor says he will seek withdrawal from Vanguard
Summary
Commissioners and public speakers pressed for an audit and faster action on funds held by Vanguard for the Brown House trust; county mayor said he intends to withdraw $500,000 plus interest and move the account to a local firm. No formal legal action was approved at the meeting.
Sumner County commissioners and members of the public spent part of the meeting pressing for a full accounting and faster disbursement of funds held in the Brown House trust by Vanguard.
Public speaker Mike McLeod pointed to the trust instrument’s reporting requirement, saying, “the trustee shall report annually to the board and to some of the county commission concerning the investment of the trust property, operation of the trust, and distributions of the trust property,” and argued the county has never received that reporting. He urged a “full audit and review” of how trust funds have been spent.
Another public speaker, Kevin Baker, said Vanguard had been slow to respond and urged the county to take an offensive legal posture rather than waiting for citizens to sue. Baker said the Brown House “is going to be beyond repair” if progress is not made and pressed the commission for recourse.
During agenda discussion, commissioners reviewed a recent conference call in which Vanguard representatives reportedly said they would respond within 24 to 48 hours but had not provided final documents. The county mayor described his intended steps to retrieve funds: “What I’m gonna do first … I’m gonna say I need to get 500,000 and the interest out of the account in a check to me directly. K? That goes to the county.” The mayor said, after those withdrawals, the plan is to move the account to a local investment or accounting firm to avoid repeat problems and to draw and deliver interest earmarked for the schools.
Commissioners noted that Vanguard’s account contract language and the trust instrument raise questions about who has authority to withdraw funds and how distributions should be handled. Commissioners also discussed whether both trustees must sign for withdrawals; the mayor said his review of the contract indicated a single signatory could effect the withdrawal.
No formal motion to sue Vanguard or the trustees was passed during this agenda item; the item was listed for discussion. Commissioners asked the county mayor to continue pursuing Vanguard and to report back to the commission. Several speakers urged that, if funds are disbursed, the county ensure distributions comply with the trust’s stated purposes for advancing student technology.
Ending: Commissioners retained the item as discussion; the mayor said he would continue to press Vanguard and attempt to secure the immediate withdrawals and a local transfer. The commission requested status follow-up from the mayor and staff rather than taking immediate legal action at this meeting.
