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90-2079 � ( , I O � i � � �AL Council File ,� Q - 7� � Green Sheet # � RESOLUTION CITY F SAINT PAUL, MINNESOTA � a Presented By Referred To Committee: Date � ' WHEREAS, The Depa�tment of Community Services, Division of Libraries, with the assistance of the City Attomey's Qffice, did petition the District Court for termination of the Herman W. Rietzke Memorial Nonexpendab�le Trust, and WHEREAS, Judg�e Jerome Plunkett did order, based on the evidence that costs of administration of the trust exceed interest jreceived thereby destroying the original intent of the trustor,that the trust shall terminate and ass�ts be Iturned over to the City, and WHEREAS, The trust aaccounts investment earnings were dedicated for purchase of City library books, and WHEREAS, The Libra�y wishes to restore a portion of the 1990 budget for materials which was lost due to the revised budg�t process, and WHEREAS, The Mayo� pursuant to section 10.07.01 of the City Charter, does certify that there are available for apprmpriat�on revenues in excess of those estimated in the 1990 budget, and WHEREAS, The Mayo� recommends the following changes to the 1990 budget: COMMUNTTY S�RVI�ES - LIBRARIES , C�nent Budget Changes Amended Budget Herman H Rietzke Memorial Fund Financing Plan 360-53401- 6b02 Interest; on I�vest 600.00 (600.00) -0- Use of fund ballance =� 6,516.59 1 9 600.00 5,916.59 6,516.59 Spending Plan 360-53401- 0381 Books, Periodicals, etc. 600.00 (600.00) -0- 0536 Residual Eqwity Transfer Out � 6.516.59 G,516.59 600.00 5,916.59 6,516.59 . `�. I o 7 OI� I � � �' AL � �- y�-a q Library Special Rl�venu� Fund C�nent Budget Changes Amended Budget Financing Plan 349-33400- 7501 Residual Equ�ty Transfer In -0- 6,516.59 6,516.59 6602 Interest Earn�d on Invest. -0- 500.00 500.00 All others 304.515.90 =� 304.515.90 304,515.90 7,016.59 311,532.49 Spending Plan , 349-33400- ' 0381 Books, I�eriod�cals, Etc. 207,110.00 7,016.59 214,126.59 All others , 97�405.90 � 97,405.90 304,515.90 7,016.59 311,532.49 RESOLVED, That the �ity Council approves these changes to the 1990 budget. Approval Recommended: i � � Budget D' ctor ea Navs Absent Requested by Departa�ent of: imon oswz z on � Servi c � e m une � s son �'~ BY� � � �� oy Gr�r�zzl Adopted by Council�s Date NOV 2 7 1990 For� App ed by Cit tto ne Adoptio Ce;tified by CQuncil Secretary By. By= Appro ed y Mayor r Submission to Council Approved by Mayor: Date � t` D � � i�OU 7 199QBy: ����-�'�,��-��, sY s ��i'�'.��Z� v PllBUSHED U E C 81990 � , �y�—�o�� 4+�O t T�•; e y CITY OF SA.INT PAUL � _ „ �; OFFICE OF TI� CITY ATTORNEY � ,... • JANE A. MC PEAK, CTTY ATTORNEY ' , 647 Gry Hatl,Saint Paul,Mianesota 55102 JAMES SCHEIBEL '' 612-29s-s131 MAYOR FAX 612-298-5619 September 14, �.990 Mr. Gerald W. $teenberg Director ' Public Lib�ary 90 West Fourth� Street Saint Paul, Mn. Re: Clara F. �tietzke Trust Our File �-90-0109 Dear Mr. Steen�erg: The Proba�e Court, by order dated September 12, 1990, has authorized thelCity to close the trust and to expend the principle remaining qf t e trust assets for library purposes. A copy of the Or.der terminat�ng the trust is attached. At the su gestion of Judge Plunkett, I recommend that you insert an expl nation in the next annual report of the Library explaining tha the Trust was terminated by order of the Court and the City authprized to expend the Trust assets for library purposes. , If yo� hav�e any questions please call me. Very 't ly youri , / JER J. GA , Ass '�s ant ity ;Attorney JJS:� Enc. � I . . � c:�� ,—��—� � P,� . , yo—ao7y �•STATE OF MIINNES A�,C1�G �Q , ����� DISTRICT COURT COUNTY OF FtAMS�Y (�� SECOND JiTDICIAL DISTRICT • ' File No. 235473 � ; . --------------�---------------------- In the Mat�ter �f the Trust • Created under �e Last Will and pRDER , Testament bf C ara Rietzke, also known as C1ara E. W. Rietzke, for the Bek�efi of the City of ' St. Paul, Minn sota. ------------------------------------- The aboveientitled matter came on for hearing on the ,�Z day of �eQ}�•�iM;�.vr,.�_, 1990, in Room ��of the Courthouse in the City of Saint �aul, County of Ramsey, State of Minnesota, before the unders�.gne� Judge. Jerome J. Segal, Assistant City Attorney, appeared om beY�alf of Petitioner City of Saint Paul and testimony was given by I � :.�v( Based upor� the file and evidence adduced at the hearinq,. IT IS ; ORD�RED: 1. �ost� of the administration of the trust exceed the interest r�cei�ed, thereby destroyinq the original intent of the trustor. ' 2. �he tjrust shall terminate and all assets shall be turned � over to the Ci�y of Saint paul. 3 . i?pon �the filing of a receipt of said assets by the City of Saint Paiul, �duly filed, the trust shall terminate Dated: S�,�'' ���- � ���� , � ����� � J�JEROME PLUNKETT Judqe of District Court I ; . , I . �� � ��a��� . . Ana�yst: �tne � ��� RECElVED ���.e�����► Date: 10/26/90 � NOV � 8 1990 NOV 7 1990 I BUDGET OFFICE ANALYSIS �' OF BUDGET AMENDMENTS �q�OR'S OFFIC�� �� � � �`�l��•��� ,� D@p8rtfl�ent: Commu�►ity Services(Libraries) Green Sheet Number: ~9574 ' Green Sheet Date: l0/4/90� Amount of Request: � 57,0�7 Positions Requested: Amount Recommended: Positions Recommended: Funding SourCe: Trust fuhd endowment Subject of Request: A budget amendment has been raquested In order to ezpend the endowment of the Herman Rietzke Menorial Trust Fund,in compliance with a court order. Background: � The Herman Rietzke Trust Fund has ezis ed since 1939. The trust requirements decreed thnt the interest earnings from a principal amount($6,500)be spent on materials to support the library collect on. Based on evidence presentul,a judge has determined that the trust should be closed out and the principal amount be released to the Library. The resolutio attached would accomplisl�two things. First,the budget of the trust fund would be changed to recognize the principal amount as financing an�estsbli the authority to transfer the money from the non-expendable trust fund to the Library's special revenue fund. Second,the Library's special re�+enue fu will be amended to recognize this transfer in and the interest earned to date and add it to all of the Library's other non general fund books and matqrial doll rs. The 1991 budget has been prepflred recognizing this change, no request has been included for the Reitzke Trust. i Major Issues: � none. Fiscal Impact: (Current Y�ar and Following Year) Expending the trust is a one-time,use. Fu4ure years budgets will not include requests for spending the$500-$600 in interest income. Approval of this request will partially relieve the impact di the red�uction in materials made in the; 1990 mid-yetir budget adjustment and in the 1991 proposed budget. Recommendation: I recommend approval. Timing i�essentit�l in this insta�ice.With only two months remaining in the year,any excessive amaunt of time used for review and approval will only reduce the a unt of rne available for impiementation. No boc�ks may be purchased until approval is given. In order for this amendment to take effect,it must be adoptod w�#►ia the lendar yesr 1990. Follow-up Recommended, If Any: If there is insufficient time to permit analysis/approval and implementfltion, a 1991 amendment may be necessary. I i I , ��`Io-�a�9 DEPARTMCNTlOFFlCE�OaINdL' ' ' DATE INITIATEO Communit Service - �'braries 10 4 0 GREEN SHEET No. 45�� CONTACT PER80N 8 PIiONE INITIAU DATE -- I ATE m DEPARTMENT DIRECT�i CITY COUNdI er - N��� CITY ATTORNEY �CITY CLERK MUBT BE ON COUNqI AOENDA BY T� ROUTINO BUDOET dRECTOR �FIN.6 MOT.SEHVICE8 DIR. MAYOR(OR A8818TANT) � F i n a n re TOTAL#�OF SK#NATURE P GES (CLIP ALL LOCATIONS FOR 81GNATUR� ACTION REGUF87ED: Approval of Council Re olution OCT � 5 199U SMVias �►�s:MP►�W a► COUN REPORT OPTIONAL _PLANPtlNO COAAMISSION pVIL RVIG�COMMIS810N '�AlY8T PHONE NO. _(7B CQMMITTEE _STAFF COMIMENTS: A DIS7'RICT COURT SUPPORTS NRMCFI COl1NpL 9 INRIATIPKi PROBLEM.�SSUE. �WMt.WMn.Whsre�WhY). Due to inflation nd f Iling interest rates the Herman Rietzke Memorial Trust Fund, esta6�ished in 19 9, :d es not meet the original intent of the trustor. District Court Ju ge J rome Plunkett has ordered, based on evidence of administrative costs and the ori inal trust, that the trust shall terminate and assets be turned over to the City f Sa nt Paul . �v�wr�s��+ovec: • The Library would be a le to close out the Herman Rietzke Memorial �und and expend the principal ($6,500. 0) on books. The City would co ply ith District Court Order. RECEiVED 90 DISAOVMITMiE3 IF APPFiOVED: None BUD�,�7 Ofr�CE DISADYANTAOES IF NOT APPROVED: N�A _ RECEIVED ;;ounci► C���^��c;h Cerr�ef� �s�� NOV 1319Q0 CITY CLERK TOTAL AMOUNT OF 7,016.59 cosr�suo�r��anc�o� rgs wo ��� Herma Rie zke Memorial Trust ��Y� 53401 FINANqAI INFORAAATION:(OfPWN) Resolution would ove nterest and principal to Li,�rary Special Revenue Fund, to be expended, on books , dW :�.