Library Expansion Fundraising Hits a Wall

Capital Campaign Raises $1129 in February
Jones Library Trustee Lee Edwards’ report on fundraising results at the March 20 Jones Library Budget Committee meeting was notable for the information that was lacking.

Edwards reported good news for the Friends of the Jones Library Annual Fund that contributes to Library programming.  At the end of February the account stood at $113,863 which compares favorably to the same time last year when the Annual Fund  had raised nearly $20,000 less.

However, her report, listed on the agenda as “Friends’ Annual Fund and Capital Campaign Reports,” was silent on February performance of the Capital Campaign.

A March 1 snapshot of Capital Campaign progress was included in the meeting packet, and by comparing it to the February 1 chart one can calculate February fundraising results.

The chart shows total funds secured for the $46.1 million project at $39,965,683 on March 1.  The prior month’s report shows total funds secured at $39,964,554 on February 1.  Subtraction yields a total of $1,129 raised in the month of February.

At the rate of raising $1,129 per month, it will take the Capital Campaign 6177 months or more than 514 years to raise the library share of project cost.

This income compares with a total of funds to be secured for the project of $6,974,117.  At the rate of raising $1,129 per month, it will take the Capital Campaign 6177 months or more than 514 years to raise the library share of project cost.

A Memorandum of Agreement between the Town of Amherst and Jones Library, Inc. calls for the library’s share of the project cost to be paid in full by one year after a certificate of occupancy is issued for the renovated and expanded building.

The above projection includes a number of unknowns.  Since last October the Capital Campaign has stopped reporting personnel expenses that it pays to its fundraisers and no longer breaks down what portion of its Community Campaign receipts are pledges as opposed to actual gifts.  It is unclear at what rate pledges, some several years old, can be expected to be converted to cash to be remitted to the Town.  Amherst is responsible for repaying all borrowing on behalf of the project, with interest.

As unrealistic as it may appear that the Capital Campaign will meet its obligation, a handful of Town Councilors have dismissed the need for concern.

Councilor and Finance Committee Chair Cathy Schoen has called for better guarantees that Amherst taxpayers will not be stuck with an unexpected financial obligation resulting from rising costs and a fundraising shortfall.  At the February 10 Town Council meeting a majority supported her motion to direct the Town Manager to decline to sign a construction contract unless the Jones Library has secured their share.  The measure was opposed by Town Council President Lynn Griesemer and Councilors Ryan, Hanneke, DeAngelis and Ette.

See related: Town Council Calls for More Assurances on Library Project Funding

Town Council to Review Project Status at March 24 Meeting
A Jones Library Building Project update is on the agenda for the Town Council meeting next Monday, March 24 at 6:30 p.m.  The meeting packet includes a 5-page information sheet that illustrates the challenges and proposed actions by the town to address them.

The answer to how the library will make up any fundraising gap was less than reassuring:

“Many conversations have been held with MassDevelopment and local banks regarding borrowing funds if the need arises. The Trustees will make the best decision when the time comes to ensure the Endowment and Library services continue in perpetuity.”

The library endowment, which is eyed as security against an unachieved fundraising target is currently valued at $9 million,  To support an annual 4% draw of at least $300,000 for operating expenses, an endowment balance of $7.5 million must be maintained.

See related: With Uncertain Fundraising Prospects, Library Project Taps Woodbury Fund

The information sheet also fails to acknowledge that the town’s proposed Section 106 memorandum of agreement does not fully address several recommendations from the Massachusetts Historical Commission and Advisory Council on Historic Preservation.

Completion of the Section 106 review and a subsequent public environmental review are required for the project to receive $2.1 million in grants from the federal National Endowment of the Humanities and the Dept. of Housing and Urban Development.

Councilors have asked for a revised cash flow model showing how the town will pay for the project which has been estimated to require a $1 million to $1.5 million outlay per year for twenty years. 

Answers to questions such as how and when the town can schedule long-planned replacements of the Central Fire Station and DPW facility, what are the options for dealing with a backlog of road repairs, and how can Amherst address a structural deficit in its public education budget depend on this model.  And a serious look at how expanding the Jones Library compares in priority to these competing needs hangs in the balance.

See related: Town Finance and Senior Services Directors Resign