Sumner hoping to reinvest scholarship money

SUMNER — Sumner could be changing the way it invests its Bicentennial Scholarship funds.

The fund currently contains an impressive $59,786, and anyone in the town can apply for access, be they retirees seeking to enrich their later years or high school graduates on their way to college.

Currently, the funds are invested in CDs, where they bring 3.5 percent yearly returns. At the next town meeting, officials will be asking the town to move the funds to a Maine Community Foundation investment.

The foundation's investment committee's aim, as described on its website, is "building permanent charitable funds to strengthen Maine communities."

According to Town Clerk Susan Runes, the foundation takes money from small towns and invests them in a diversified portfolio. Last year, the foundation offered a 12-percent return on investment.

The amount the scholarship fund can give out every year is limited by how much interest accrues. Town officials aim never to take money from the $59,000 dollar principle but instead grant scholarships with the money earned through interest.

Next year, they hope to award 4 percent of the principle, something that would require a decrease in the fund balance, should the money stay in a CD. Investing with the Maine Community Foundation, should it offer the same growth as last year, would allow them to give out the 4 percent and also add to the fund's balance, increasing future awards.

The selectmen, however, cannot move any of the money without approval of the voters at town meeting.