I thought the National Endowment for the Humanities (NEH) grant was awarded in 2022?  Why isn't it in the bank?

The $655,000 NEH grant was awarded to the Mont Vernon Library Charitable Foundation (MVLCF) in April of 2022 for the library project. The grant required that Mont Vernon raise four dollars for each dollar of federal grant funding received. The town was successful in achieving the full match by raising well over the required $2.62M. NEH’s terms for the grant were that we would be reimbursed according to the 4:1 match, so we would receive 20% of each paid receipt submitted until the $655,000 was fulfilled.  (This avoids the scenario where a town wins the grant, banks the funding and never completes the planned project.) 

What part of the building won't be funded?  What will be cut?

On April 29, 2025, the Mont Vernon Library Charitable Foundation (MVLCF) was notified that the National Endowment for the Humanities (NEH) grant had been terminated effective immediately. The guidance indicates that the project will be reimbursed for 20% of the in-scope costs incurred as of that date. To date, MVLCF has collected $164,000 of the original grant funding of $655,000, leaving $491,000 at risk due to this cancellation. After reviewing all invoices for the project through 4/29, MVLCF will be submitting a request for at least an additional $110,000. While we expect the request to be honored, we will consider this funding at risk until NEH processes the reimbursement since conditions in DC are unpredictable at best. There may be a possibility of seeking reimbursement for materials that are currently on order. If NEH adds the expected $110,000, then the shortfall becomes $381,000 (instead of $491,000). While $381,000 is still a lot of money, it is just  6.4% of the total project. The Library Building Committee is confident that by working with Turnstone, the construction management firm, DSK, the project architect, the Library Trustees and MVLCF, they will be able to combine additional support from MVLCF with available contingencies and make any trade-offs necessary to deliver the new library on schedule this fall. The building will be fully completed. Trade-offs may include further reducing the landscape scope and deferring some purchases that won’t prevent the library from opening and operating effectively.

Is it possible that the  National Endowment for the Humanities (NEH) grant could be reinstated?

Anything is possible. The Library Trustees and their Select Board representative have been in contact with the full NH congressional delegation, the NH State Library, the NH Humanities Council and the Governor’s Office. All are working on our behalf to restore the funding. You may have seen that Senator Maggien Hassan and two members of her staff recently toured the project work site to gather facts to help her in that effort. A lawsuit was also recently filed by the American Council of Learned Societies, American Historical Association, and Modern Language Association, opposing the illegal dismantling of the NEH. Although we are not formally a party to their suit, the suit aims to restore the NEH’s grant programs, divisions, and staff capacity. As a result, it is possible that our grant could be restored because of the suit. Until any of these efforts is successful, the Library Building Committee is working under the assumption that we will only be able to collect the part of the outstanding grant balance (see above) and need to work creatively to complete the project with the available resources.

If we can’t finish the library, can we use the money for the Town Hall?

The Library Building Committee is confident that we will be able to finish the library. Additionally, the bonds that were passed at Town Meeting in 2024 to construct the cemetery access road and the new library cannot be used for any other purpose. Bond funds are required by the bond bank to be used first on any construction project, meaning that all costs paid to date have been paid from the bond. The road is largely complete and the majority of the road funding has been used. 

Funding committed by the Daland Trust or the Mont Vernon Library Charitable Foundation to the library project cannot legally be used for non-library purposes.

Are we going to be asked to pay more in taxes?  Special town meeting?

The tax impact of the library project is limited to the cost to make the payments on the bond that was approved at Town Meeting in 2024. That bond amount cannot change. While it is true that additional funding, with an associated tax impact, could be voted at a special Town Meeting, the Library Building Committee has no plans to request one (See Q2 above). 

The Select Board chose a level principal bond at 3.83% interest. Unlike a traditional mortgage or car payment, in this type of bond the payment declines over time because you pay a set amount of principal + all accumulated interest with each payment. June tax bills will not reflect the cost of the bond payments. The tax impact of the first bond payment will be included in the December bills.

It is a little difficult to parse the specific library payment. Even though they were separate votes at Town Meeting and have different payment schedules, the town is managing them as one bond payment. Based on the current Mont Vernon full valuation, the tax impact of both the cemetery access road and the library will be $215 for the year for a home valued at $500K.

When is the project due to be completed? Is there now a delay?

The project remains on schedule to be completed this fall. Although the potential loss of part of the National Endowment for the Humanities grant is adding many hours of work for the Library Building Committee and their advisors, the termination of the grant is not impacting the project schedule.

How much is the contingency and how much is left? Do we have enough?

All well-managed building projects have what is called a “contingency”. In simple terms, this is money that has been set aside to cover any unexpected issues that arise during construction. While the US federal government reneging on a firm funding commitment wasn’t originally envisioned as a possible contingency for the library project, it is completely appropriate to use the project contingency to cover the cost. Both the construction management company, Turnstone, and the Town of Mont Vernon have contingency funds built into their project management plans. Fortunately, we have used very little of these contingencies to date. Our contract with Turnstone is fixed-price, and most of the materials for the project have already been purchased by the subcontractors. The Library Building Committee (LBC) is working closely with Turnstone to review the contingency funding available to offset some of the National Endowment for the Humanities grant shortfall. The Mont Vernon Library Charitable Foundation is also reviewing their ability to assist in offsetting the gap. Because there is still a need to hold some contingency funding for other potential issues that may arise, the LBC will be reviewing potential trade-offs throughout the balance of the project (see above).

Where can I see the budget/info? Or ask questions? 

The Library Building Committee meets the first Wednesday of every month at 7:00 PM at the Daland Memorial Library. Project costs are reviewed at each meeting.

How will the tariffs impact the building costs? 

The Library Building Committee is monitoring the situation with tariffs closely. We currently expect the impact to be minimal because a significant portion of the project materials are either 1) already on site, 2) ordered with firm pricing and scheduling in place, or 3) held by subcontractors in accordance with their contracts with the construction management firm.