Historic Endowment Fund misunderstood

 

Annual grants for 2015 from the Mangawhai Endowment Lands Account (MELA or Endowment Fund) to local organisations are to be decided this month by the Kaipara District Council Commissioners together with two local appointed community members, Joanna Roberts and Alan Russek.

A total of $129,560 will be available for distribution this year, compared to the $111,500 distributed to six local non-profit organizations (from a total of 12 applications) in 2014, and $55,104 in 2013.

The Endowment Fund is a much misunderstood and maligned activity of the Kaipara District Council. Claims have been made that funds from the account were “stolen” to pay for the Mangawhai sewage system, while claims have been made that the council will need to top up funds that have been used for other purposes.

Nothing can be further from the truth.
* The latest figures published by the council indicate the MELA account has undistributed funds of $4,725,595. The closing balance of the Fund at June 30, 2013 was $5,542,595, less a provision of $817,000, representing an adverse adjustment in the market value of three properties still owned by the Fund.

* Interest earned (at 3.20%) to the year June 30, 2013 was $138,750. Rental income from the retained properties still owned by the Fund was $23,889, meaning total income for the year was $162,639.

* The amount available for distribution was therefore $162,639.

* After retaining $33,079 (to add back to capital for future distributions), the Fund therefore had $129,560 available for distribution.

There is no actual separate “Endowment Fund Account” within the Kaipara District Council. But throughout the history of the MELA, there never was a separate account, so nothing has changed.

Fund has early origins
The history of the Mangawhai Endowment Lands and the associated Fund dates back to 1864 when “the Superintendent of the province of Auckland did reserve and set apart, for the improvement of the Harbour of Mangawhai, the several allotments of land mentioned and set forth in the schedule attached… .”

Rentals from more than 80 leased properties were used to erect a wharf in Mangawhai harbour in 1880 with wharf charges used to supplement the Fund’s income.

Over the next 100 years the Fund had various “owners” including the Mangawhai Road Board, the Mangawhai Harbour Board and the Otamatea County. During this latter period, funds were used for county projects in Mangawhai, such as road sealing, reserves and construction of the causeway that linked the Heads with Mangawhai Village.

Today the Mangawhai Endowment Lands Account is managed under the Mangawhai Lands Empowering Act 1966 which ensures the funds are to be kept for use in the Mangawhai “district.” The definition of “district” is the area of and adjacent to the endowment lands as previously vested in the Harbour Board and now vested in the Kaipara District Council, and any area adjoining the Mangawhai Harbour.

Over the years all but three “parcels” of endowment land has been sold, increasing the cash component of the Fund.

Funds to benefit Mangawhai
A turning point in the future of distributions from the Fund came in the late 1980’s when the council conducted a wide-ranging ratepayer consultation on the future use of fund moneys. Although it was quite clear from the empowering legislation that the council was able to use the funds for roading and “council works” the decision was made not to continue with council works projects.

Now applications for Endowment Land Account funds must benefit or tend to benefit the lands, with the “lands” defined as the original endowment lands (Mangawhai Heads, The Spit and Tern Point) and land adjacent to the harbour.

Grants will only be made to organisations located within or providing benefits with the Mangawhai District whose principal functions and/or activities are of a not-for-profit nature.

The Kaipara Council receives approximately 10 to 12 applications for funds from MELA each year. The closing date for applications for 2015 grants was last December. The Kaipara Council regularly publishes details of MELA application deadlines.

Last year’s grants recipients were:
Mangawhai Harbour Restoration Society $30,000; Fairy Tern Charitable Trust $5,500; The Mangawhai Tracks Trust $4,500; Mangawhai Park steering committee $18,000; Library Hall $7,500; Historical Society (Museum) $40,000; Domain Society $6,000.

By Peter Nicholas