Under NH state law every municipality with trust funds must have these funds kept separate from other town funds and in the custody of "Trustees of Trust Funds". In Portsmouth there are three Trustees of Trust Funds, each appointed by the mayor and confirmed by the City Council for a three-year term. In Portsmouth there are three Trustees of Trust Funds, each appointed by the Mayor and confirmed by the City Council for a three-year term. The terms are staggered so that each year a trustee position comes up for appointment. Trustees may serve more than one term.
The main job of the trustees is to (1) be the fiduciary custodian of all the separate trust funds, (2) to provide for the safe-keeping and preservation of the trust fund assets, (3) to invest and manage these funds with "due diligence" and a plan for long-term growth and (4) to provide for the proper disbursement of the trust fund income as per the funds' stipulations.
There are approximately 76 individual trust funds managed by the trustees. These include park funds, scholarship funds, school funds, memorial funds, commemoration funds, library funds and housing funds.
The trust funds are considered assets to the City of Portsmouth and are included in the annual financial statements of the City. The Trustees' meet once each month at open business meetings.