14 - Return of Funds to the Cecil FoundationItem No. 14
Memorandum
TO: Mayor, Mayor Pro Tem, and City Council
Grayson Path, City Manager
FROM: Stephanie H. Harris, City Attorney
SUBJECT: Return of Funds to the Cecil Foundation
DATE: January 22, 2024
BACKGROUND: As you may recall, in December of 2021, concurrent with the RAM
Foundation's (RAM) donation of $300,000.00 to the city for the use in the city's HOME program
to further RAM'S program of making affordable housing available to the city's residents, the
Philip and Sally Cecil Foundation, Inc. (Cecil) made a donation of $200,000.00 for the same
purpose. In conjunction with that donation, the parties entered into a memorandum of
understanding (MOU) which provided that the city would continue its annual funding for the
program and would exhaust those budgeted funds prior to accessing the donated funds. The MOU
also provided that after the expiration of three years, Cecil would be able to review the use of the
donated funds, and, if less than half of the funds had been used, recoup all of the unused funds.
STATUS OF ISSUE: Since the city's acceptance of the donation and the execution of the MOU,
the city has not had occasion to tap into the donated funds for the stated purpose. Cecil has allowed
funds to go towards the city's current housing study, in the amount of $33,210.00. Given that none
of those funds have been used for the original purpose in the last 2+ years, Cecil has requested that
the balance of the donation be returned for use in other projects.
On January 22"d, the Council agreed to a similar request for a return of a portion of the RAM
donation. At that time, Council approved a revision to the MOU with RAM provided for partial
return of funds and set up the mechanism by which such requests will be handled. In this instance,
since the MOU is not a binding legal document and as Cecil has requested a return of the balance
of the funds in excess of the $33,210.00 committed to the housing study, there is no need to amend
the agreement. I have prepared the attached resolution for your consideration to serve as
documentation of the return of funds for accounting and any other necessary purpose. The amount
to be refunded will be $166,790.00
BUDGET: No impact.
RECOMMENDATION: Move to approve a resolution authorizing the return of $166,790.00 of
the Philip and Sally Cecil Foundation, Inc.'s 2021 $200,000.00 donation.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
APPROVING THE RETURN OF A PORTION OF A $200,000.00 DONATION
FROM THE PHILIP AND SALLY CECIL FOUNDATION, INC. IN THE AMOUNT
OF $166,790.00; MAKING OTHER FINDINGS AND PROVISIONS RELATED
TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, in December of 2021, the Philip and Sally Cecil Foundation, Inc. ("Cecil") donated
the sum of $200,000.00 (the "Cecil funds") to the City to assist in alleviating the need for affordable
housing within the corporate limits of the City through the administration of the HOME programs;
and
WHEREAS, since that time, Cecil agreed to the application of a portion of those funds to be
applied towards the cost of a city-wide housing study; and
WHEREAS, on December 13, 2021, the City Council of the City of Paris, Texas accepted Cecil's
donation by Resolution No. 2021-049; and
WHEREAS, to date, a portion of the Cecil funds in the amount of $33,210.00 has been applied
towards the cost of said housing study; and
WHEREAS, to date, the City has not had occasion to access the Cecil funds for the HOME
programs; and
WHEREAS, Cecil has requested the return of the balance of the Cecil funds to have available
for use in the community for other projects; and
WHEREAS, the City Council has considered the request and finds the return of the balance of
the Cecil funds to be in the best interest of the City's residents;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all things
approved and are incorporated herein for all purposes.
Section 2. That the City Council of the City of Paris, Texas approves the return of a portion of
the Cecil funds in the amount of One Hundred Sixty -Six Thousand Seven Hundred Ninety and No/100
Dollars ($166,790.00) to the Philip and Sally Cecil Foundation, Inc. and authorizes the Finance
Director to promptly.remit same.
Section 3. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED on this 26th day of February, 2024.
Reginald B. Hughes, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney