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Palm Springs library trustees debate trust-fund rules, form subcommittee to recommend a threshold
Summary
Trustees discussed how to manage roughly $200,000 in undesignated trust funds, weighed leaving investments with the city versus transferring funds to the foundation, and voted to create a treasurer–Deborah Schwartz subcommittee to return a recommendation on spending thresholds and policy.
The Palm Springs Board of Library Trustees on May 6 discussed whether to formalize rules for spending the library trust funds and voted to establish a two-member subcommittee to recommend a threshold and policy.
The conversation opened after staff reviewed the legal framework that governs municipal libraries, citing the California Education Code and the city charter as the governing authorities for trustees’ duties. Staff said the city manages investments for the trust funds and the trustees control how money is spent, while nonprofit partners (the Friends and the Foundation) remain primary fundraisers and stewards for some donor activity.
Trustees and staff described current balances and earmarks. Staff reported the Kropitzer trust balance as $169,665.74, a previously authorized allocation for foundation operations of about $187,600, and an undesignated “future library projects” line of approximately $198,000 — leaving roughly $200,000 of unassigned trust funds under trustee control. The Foundation had separately reported $2,200,000 in capital-campaign pledges and $1,700,000 in cash pledges; foundation staff said invested CDs are expected to generate about $55,000 in interest by next March.
Debate centered on two questions: whether donors should retain the option to give directly to a library trust, and whether the trustees should set a minimum floor or limit spending to investment earnings only. "I would not favor, zeroing out and then to include in any future receipt of donations to a library trust fund," said a committee member, arguing donors should keep the option of a trust fund. Other trustees noted the city’s investment constraints and that a foundation-managed fund could generate higher returns, and suggested keeping a reserve or floor so future boards retain capacity to respond to needs.
Rather than set a policy immediately, trustees unanimously approved a motion to form a subcommittee consisting of the treasurer and Deborah Schwartz to return with a recommendation at a subsequent meeting. The motion passed by roll call vote.
Votes at a glance
- Motion to change next meeting date to June 9 at 5:30 PM (City Hall Annex): approved by roll call; trustees recorded as in favor. - Motion to form a subcommittee of the treasurer and Deborah Schwartz on trust-fund policy: approved by roll call.
The board also received renovation and programming updates and confirmed the next regular meeting for June 9 at 5:30 p.m. in the City Hall Annex before adjourning at 6:45 p.m.
