During our Council Meeting on May 13, 2015, there was much interest expressed by many residents about the management of the Loving Care Funds. I have selected an applicable section of the President’s Report written by Past President Ted Nelson for the December 2011 edition of the Lake Hunter Herald. The dollar figures may have changed over the past 4 years, but the process remains the same:
In the November Hunter Herald, I said that I would discuss the several funds under the exclusive care, custody, and control of the FPHI Board of Directors. These Funds are A) The Loving Care Endowment Fund (LCEF); B) the Loving Care Fund (LCF); and C) the Special Capital Projects Fund (SCPF). I shall try to define these funds, their interrelationships, their purposes, magnitudes, and methods of administration.
I have a mental picture of these three funds and their interrelationships as follows: I picture three barrels that are sitting on three different levels of platforms. The left-most barrel is on the highest platform and has a ring painted around the barrel near its top. On that ring are the letters LCEF and these numbers: $3,098,093.00. A hose emerges from the line painted on this LCEF barrel that connects to the next barrel to the right, which sits on a lower level and has LCF on the line around it. The numbers on this barrel’s line are: $4,055,490.00.
Out of the LCF barrel’s painted line is a hose that connects to the third and last barrel, to the right again, that sits on the lowest level. No line is painted on this lowest barrel, but it has the letters SCPF painted on it. No hose emerges from the lowest barrel. The past practice, as determined by the Board of Directors of FPHI, calls for the “harvesting” of monies that are above the two levels prescribed for LCEF and LCF and indicated by the painted lines on the barrels: the excess(s) would flow down into the bottom barrel (SCPF). Similarly, if the level in either or both of the upper barrels was at or below the specified level as indicated by the painted line around the barrel, no monies would flow downward and to the right from them.
The balance in the SCPF on 9/30/2011 was $851,319.00. The use of these funds is described by earlier vote(s) of the Board of Directors. A few years ago funds were taken from this account to increase the capacity of the Health Center from 40 to 48 beds. The monies in the LCEF are to remain intact or “untouchable”: Earnings from the LCEF, only when the “corpus” exceeds $3,098,093.00, may flow into the LCF. The same is true of the threshold number of the LCF. The primary purpose of the LCF is to assist those Residents of FPH who have depleted their financial resources and need supplementary funding to remain at FPH. (President’s Report, December 2011 Lake Hunter Herald by Ted Nelson, President, Residents Association 2010-2011)
I’ll provide additional information next month.
– Robert Bourquein, President