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Committee approves donor‑designated memorial fund agreement with Waukesha County Community Foundation
Summary
The finance committee approved a donor‑designated fund agreement with the Waukesha County Community Foundation to manage the Waukesha Christmas Parade Permanent Memorial Fund; staff outlined a distribution policy that would yield roughly $24,000 annually on a roughly $519,000 portfolio under a 4.5% draw assumption.
The Waukesha City Finance Committee voted unanimously May 27 to approve a donor‑designated fund agreement with the Waukesha County Community Foundation to establish a permanent memorial fund for the Waukesha Christmas Parade.
Tony (staff) told the committee the foundation received a state grant and additional gifts that will be part of the donor‑designated fund. Tony said he did not have an exact figure at the hearing but referenced about $519,000 in the packet when describing the fund’s size and said the foundation’s distribution policy sets a payout at 4.5% of the fund’s average assets. "It is 4.5% of the average assets that are being managed. So in this case, if it's $519,000 that are within that fund, it comes out to roughly dollars 24,000 a year," Tony said.
Tony also described the foundation’s pooled endowment structure and a fee of 0.25% each quarter (1% annually) charged for investment management. He said the foundation’s return goal on average is 7.5% after expenses.
City staff explained how the memorial maintenance would be managed: a parade memorial maintenance project team would include a representative from the mayor/city administrator’s office, engineering/public works and parks, recreation & forestry; that team would meet at least annually to define maintenance needs and costs. Tony said any expenses paid from the fund would follow the city’s purchasing policy and that distribution requests to the foundation are handled under the foundation’s approval rules; the foundation could grant exceptions if annual needs exceed the standard distribution rate.
Committee members asked whether the fund structure preserves donors’ tax deductibility. Tony said donations to the community foundation fund allow donors to claim charitable deductions in ways the city could not if donors gave directly to the city. Alderman Lemke questioned the fee (about 1% annually) and whether an index fund would be simpler; Tony replied the foundation’s standard practices and tax‑deduction treatment for donors drive the choice.
Alderperson Helvin Slaven moved to approve the agreement and Alderperson Molson seconded. The motion passed by unanimous voice vote.
