New London council cautious over Fed cuts

NEW LONDON – The New London Common Council unanimously approved a grant agreement for the state of Wisconsin Flexible Facilities Program despite it including language indicating the $3.9 million grant for the library renovation project is not guaranteed.
The approval came at a Feb. 27 joint meeting between the council and the New London Public Library & Museum Board. With the grant agreement, the city will proceed forward with the library renovation project.
Prior to the discussion, New London City Administrator Chad Hoerth reminded the council that in October, the city of New London was awarded a $3.9 million Flexible Facilities Program Grant for the library renovation project. The grant was awarded through the Wisconsin Department of Administration (DOA).
“The council did vote to accept the grant, and authorize the mayor to execute the agreement and other documents for the grants,” said Hoerth.
Hoerth said the city received the grant agreement last week from the DOA, but an additional statement was added to the agreement that wasn’t in the draft agreement that the city received in December.

The additional statement in the agreement reads, “The funds awarded under this agreement are dependent on the availability from the funding source, including federal funding sources. And termination of this agreement for lack of available funding shall be without penalty. The departments have no obligation to reimburse or compensate grantee for expenses due to award funds not being provided by those funding sources. Federal funds under this agreement provided by the U.S. Department of Treasury Capital Projects Fund Flexible Facilities Program and are subject to the continued availability of the funding from the U.S. Department of Treasury.”
After contacting a representative from the state of Wisconsin, Hoerth said no further information was available. Hoerth was able to confirm that the funds for the grant come from the United States Treasury Department, and not from the state of Wisconsin.
“Once we submit reimbursement requests for our project to the state, the state then sends reimbursement requests to the federal level, and it’s a pass-through program,” said Hoerth.
According to Hoerth, the representative told him that “despite the Trump Administration’s recent activities, the U.S. Treasury told the state to proceed with the program as planned.”
After doing some research, Hoerth said the U.S. Department of Treasury’s Capital Projects Fund is a $10 billion fund that funds projects throughout the United States. He added that nothing related to the grant program refers to DEI, gender equity, or green energy.
“Any of those big items that are targets for the Trump Administration right now,” said Hoerth. “Nothing in this grant, that I see, are those big items.”
He added, “You have thousands of these projects nationwide going on right now, if they cut the funding to this, you’re going to have a lot of upset states, and a lot of upset municipalities moving forward.”
Hoerth said he wanted to make sure the council was aware of the situation regarding the grant funding.
New London City Attorney Keith Steckbauer said the program supplying the grant for the library renovation project was not listed as a program the Trump Administration had tried to cut.
“I think it’s good for us that it’s (grant funding) from the Department of Treasury,” said Steckbauer. “To me, it looks like an abundance caution that the state is giving us.”
New London Mayor Mark Herter said he was recently in Washington D.C. representing the city of New London and New London Utilities, and he had the opportunity to speak with both Wisconsin senators about grant funding.
Herter said Senator Ron Johnson told him, “If your business plan is based off of federal money, change your business plan.”
Herter said Senator Tammy Baldwin didn’t understand what the grant process was, and wasn’t aware of the Flexible Facilities Grant. After Baldwin researched it more, she spoke with Herter about it.
Ald. John Hass asked what would happen if the city moved forward with the library renovation project, but the grant funds were later not available.
Ald. BaLynda Croy echoed that question.
“I don’t want to see us turn down grant monies because of fear mongering, and that’s what I feel like is happening to this whole country right now,” Croy said. “That we would turn down $4 million because we’re scared we might not get it in 12 months. Additionally, none of us want to see the library project not move forward. So, what’s the contingency plan if it’s not fear mongering?”
New London Finance Director Judy Radke said borrowing the money for the library renovation project would mean a lot of debt for the city.
“It would be detrimental to the city to take on that kind of debt overnight,” said Radke. “And it would definitely shut down most of what we’re moving forward on right now.”
Ald. David Dorsey asked if it was possible for the city to have a referendum to ask taxpayers to pay for the library renovation after the project was started and the city then found out the grant funds were not available.
Radke said that would be possible.
“I think the citizens would be more apt to understand we had the money, it got jerked away from us by the federal government, now this is what we need to do,” said Dorsey.
Croysaid she understands the concerns regarding the availability of the grant funds, but said, “It is time for this city to have this project completed.”