Plymouth City Council amends investment strategy for 30-Year-Old city endowment fund

The Plymouth City Council has unanimously approved amending a three-decade-old endowment fund agreement to allow for better investment returns and reverse or increase the fund's declining balance.

The endowment agreement with the Marshall County Community Foundation, originally established in 1995, has been updated to remove restrictive investment limitations that have caused the fund to shrink over the past 30 years.

City Attorney Jeff Houin explained that the endowment was created with a $1 million contribution from a grant program related to the construction of Plymouth's new hospital.

However, the original agreement contained significant investment restrictions, limiting the fund to only United States Treasury securities or securities of Treasury agencies.

"It is a very secure investment but doesn't have the same rate of return as some of the other investments," Houin said, noting that those limitations are no longer necessary.

The restrictive investment strategy has taken its toll on the fund. Clerk-Treasurer Lynn Gorski reported that on October 30, 2025, the fund balance had declined to $947,079—a reduction of more than $52,000 from the initial $1 million investment over 30 years.

"Theoretically, the funds in the Community Foundation are to grow over time," Houin said, explaining the problem with the current situation.

The endowment earns interest that is distributed annually to support two key city programs: the Commercial Revitalization Rebate Grant Program, which assists business owners with property improvements, and the Older Adult Services transportation services.

The amended agreement allows the Marshall County Community Foundation to reinvest the funds using its standard investment procedures, which are expected to generate higher returns.

"The intent of funds in the Community Foundation is that they will continue to grow even as distributions are made," Houin said. The new investment strategy aims to grow the fund over time rather than deplete it.

Under the revised agreement, the Community Foundation will manage the endowment according to its normal procedures, which should produce a greater interest rate while maintaining appropriate risk management.

The unanimous approval by the Plymouth City Council late last month represents a significant shift in how the city's endowment will be managed. City officials expect the improved investment returns will allow the fund to grow while continuing to support vital community programs.

The change ensures that programs like commercial revitalization grants and senior transportation services will have sustainable funding for years to come.