Town must repay amounts to keep $1 million principal
On March 13, the Urbanna Town Council adopted a policy for using the Taber Fund.
Dr. Charles Taber bequeathed a sum of $256,695 to the Town of Urbanna upon his death on July 17, 1966. The original sum, which has grown to more than $1 million as of the date of this policy (March), was to be used for the benefit of Urbanna and its citizens, states the policy.
For many years, the town council had assumed that only the interest from the Taber Fund could be withdrawn and the principal could not be used.
However, about two years ago when the town council wanted to build a new community swimming pool, a reading of Dr. Taber’s will was interpreted by council to say the principal could be used.
Council withdrew $500,000 from the fund, which at the time was valued at $1.3 million, and agreed to not withdraw annual interest until it had built back up to $1 million, which it did in a short time.
Taber Fund Policy
Council’s action regarding use of the Taber Fund for the pool fostered the need for a new policy for use of these funds.
The new policy allows the town to spend amounts more than $1 million without paying back the funds.
If the town withdraws funds that reduce the balance below $1 million, then those funds must be repaid.
