MAY 13, 2006

The 164th meeting of the Board of Directors of the Capital District Kiwanis Foundation was held on May 13, 2006 at the Fredericksburg Holiday Inn and Conference Center in Fredericksburg, Virginia. The meeting was called to order at 10:00 Am by President Hank Brodsky. President –Elect Joe Maranto led the Pledge of Allegiance and Trustee Dale Larson gave the Invocation.

Introduction of Guests by President Brodsky- Doris Rodgers Montgomery, Division 1 Lt. Governor; Harry Kreimelmeyer, Division 22 Trustee- Elect

Roll Call indicated the following were in attendance:
Hank Brodsky              Joe Maranto               Charles Adams         Marion Allen
Yvonne Holley             Warren Kane                Bob Cressy              Bernice Oden
Roy Sheets                 Don Jones                   Roger Diehl               Neal Behan
Charles Bowie              H. L. Marks                 Stan Miller                  Dale Larson  
Paul Gates                  Larry Plant                   Tom Varner                                      

Minutes of the last meeting, February 18, 2006- Additions to correct the minutes were presented by Bob Cressy. Motion to approve the minutes as corrected was made by Tom Varner. Second by Bernice Oden. Motion passed.
Treasurer’s Report- presented by Marion Allen, II- Copies of the Treasurer’s report were distributed to the Board and are made a permanent part of the minutes. Treasurer Allen stated the total current assets are $90,823.09. Total liabilities & net  assets are $615,594.84.  Per member contributions total $9150. Raffle sales in 3 regions were $7206.50. Grants were given in the amount of $6500. Expenses totaled $9799.43.  Net Assets are 4595,845.26. Investments in Savings Certificates are $176,998.45. Mutual Bonds and other investments are $302, 915.62. A motion to approve the Treasurer’s Report was made by Larry Plant and seconded by Bernice Oden. Motion passed

Committee Reports
Life Memberships- Secretary Adams reported  9 new members since February 25, 2006.
Caring Corner- Charles Adams reported on behalf of Ron Reynolds that we need to get items for sale and the Silent Auction at the District Convention in August,
Ducky Derby- Larry Plant reported that the ducks need to be numbered at the Convention by 2:30 PM on Saturday, August 19, 2006. The Ducky Derby will be held at 3:00 PM. All funds from the Derby and the Caring Corner need to be given to Treasurer Allen.
Founder’s Society-Roger Diehl/Bob Cressy   The Society needs 200 members to reach its goal of $200,000. Trustees need to get on the agenda to speak about the Founder’s Society at their DCM. Hank, Roger and Bob will make presentations about the Founder’s Society. Work on Challenge grants to increase donations. The late Sid Hais donated $10,000 to the Foundation.

New Business
Financial Report- Bob Cressy reported that the market has done well- close to six year highs on major markets. Close to all time high on the DOW. All investments are up. Mutual funds- cost in the treasurer’s report show capital gains and dividends received.  We have CD’s  that are coming due:one in February needs to be replaced, one in May and one in November. CD rates are up-5.1 for 15 months and 5.2 for 18 months. Excess cash in BOA is part of our fixed income. $40,000 of $88,000 is put in short term CD’s to be available. FBW is at 4.05% and 4.10 %. Changes recommend to move from one mutual fund to another for no cost- net asset value. Dollar for dollar to move in the same family at not cost. MFS has been mediocre since 9/11. Move ½ into MSF fund and other ½ into American Small Cap fund. There is a cost  for this. Charlie Bowie asked about the reinvestment of dividends.  All mutual funds are in automatic reinvestment of capital gains. It could be spent, but we are trying to grow the base over time. It could be put into the general account for expanded grants of youth service projects. Only the mutual funds are reinvested. We can take cash as needed and continue to reinvest mutual fund dividends.

Advisor to District Finance Committee from CDKF- A motion was made by Larry Plant and seconded by Don Jones to have Stan Miller serve as a member of the Finance Committee. Hl Marks made a motion to call the question which passed and the vote to accept Stan Miller passed- 18 yes, 1 no.

Financial Advisor- Bob Cressy will step down when a replacement has been named due to his duties as Governor-Elect. Effective June 1, 2006, Bob will step down and recommends that Simon Hamilton, a non Kiwanian, from FBW be appointed as our Financial Advisor. He will be introduced to President Brodsky later in May. His reappointment will be on an annual basis and he will fill the vacancy until September 30th at which time he could be reappointed. Motion was made by Larry Plant to have a Financial Advisor. Second by HL Marks. Motion passed.  A motion was then made by Roger Diehl to have an “Account Representative” instead of a Financial Advisor. Second by HL Marks. Motion passed.  HL Marks made a motion that Simon Hamilton be the Account Representative until September 30, 2006. Second by Charlie Bowie. The question was called by Tom Varner and the motion failed –7 yes, 9 no.

A motion was then made by Hl Marks to appoint Simon Hamilton as Account Representative until September 30, 2007. Second by Neal Behan. Motion passed- 11 yes, 4 no, 1 abstention.

Bylaws Report by Tom Varner. The CDKF incorporation papers came directly from the State of Virginia. Tom has volunteered to draft necessary policy statements. Board members should review the Bylaws which were distributed to make any recommendations at our next meeting.

There being no further business to be brought before the Board, the meeting was adjourned by President Brodsky.

Respectfully submitted,
Charles P. “Charlie” Adams, Executive Secretary
Capital District Kiwanis Foundation