Kenilworth Park Board supports more oversight after residents question district’s spending

Following months of criticism over how it has managed a charitable account, the Kenilworth Park Board indicated on Thursday, Jan. 16, that it will boost oversight of the funds.

The Marguerite L. Storch Memorial Garden Fund was founded in 1998 “for the purpose of beautifying the (Kenilworth) Park District properties,” according to the park district’s website, and some residents say the district mismanaged the account when it used its funds to support recent capital projects.

The Storch Fund has several conditions attached to it, including that its interest income is to be used every year for beautification projects in consultation with the Kenilworth Garden Club. The funds also must be invested “in a diversified portfolio of financial assets which have the highest possible rating” and produce appreciation to keep up with inflation.

In 2018, according to Park Board President John Hart, the park district changed how it invested, moving to paying “relatively high income to produce sufficient appreciation to keep pace with inflation and the interpretation that we could spend the funds on both (Kenilworth) Assembly Hall and Townley Park.”

The concerns

Concerns surrounding the park district’s spending led community members to confront the park district beginning in November.

According to the original restricted gift agreement associated with the fund, the principal of the gift — which originally was $1 million — “shall be held in perpetuity” and the district should spend the fund’s ordinary income, including interest and dividends.

According to park district documents, since 2018, the Storch Fund’s income totaled approximately $91,000, while the district withdrew $1.12 from the account in that time — including $500,000 for its overhaul of Townley Field and $300,000 for patio and walkway renovations at the assembly hall. The value of the account at the end of 2024 was $1.35 million.

Citing the original fund conditions, resident Lois Stanley told commissioners in November that neither the principal of the gift, or initial amount invested, nor its appreciation, or increase in value, should be spent.

Another criticism Stanley and others expressed was the park district’s use of Storch Fund money for improvements to Townley Field, which they argue does not fit the definition of “beautification” as required by the fund’s conditions for use.

The Storch Fund defines a “beautification project” as including landscaping, horticulture, and structures such as gazebos, fountains, and brick pathways that are not funded in the park district’s budget.

As listed in the Park Board’s November 2024 regular meeting minutes, Board attorney Derke Price said the funds were used appropriately and that the Park Board defines what falls under the term “beautification.”

Moving forward

At the Jan. 16 meeting, Hart reviewed a meeting he had with Stanley and David Joyce, another resident who has raised concerns about the Park Board’s use of the Storch Fund.

As a result of that meeting, Hart suggested making changes to Storch Fund management to ensure that the intentions of the fund are followed.

His primary suggestion was to create an investment committee to recommend any changes to investment strategy and to monitor any investments the fund has.

Hart also suggested an amendment to the original Storch document more clearly identifying what constitutes beautification, “as that can be broadly interpreted, even within the examples provided by the current document.”

Other suggested changes included reaffirming the Kenilworth Garden Club’s input in fund matters and creating a website dedicated solely to the Storch Fund.

While no vote was taken and is not expected for at least a few months, commissioners indicated they were on board with the proposed changes, particularly the investment committee.

“We have been operating as a board under the 2018 policy and I think that, as times change, markets change,” Commissioner David Byrd said. “That is a policy that should be reviewed.”

Marty Peterson-Shaw, co-president of the Kenilworth Garden Club, read a prepared statement on behalf of the club where she outlined what they would like to see happen with the fund. This includes replenishing the principal of the gift, following the investment guidelines and involving the Kenilworth Garden Club more.

“We’re happy to help in whatever way we can,” she said.

Joyce said he and other residents don’t want to focus on blaming anyone for what happened in the past and just want to move on with the Storch Fund the way it was intended.

“We can’t take the playground back, we can’t remove the porch and get the money back,” he said. “But going forward, let’s obey this agreement and the intent of this donor.”

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