mott community college board of trustees regular board meeting june 25, 2012
DESCRIPTION
Mott Community College Board of Trustees Regular Board Meeting June 25, 2012. BUDGET RESOLUTIONS. For Consideration and Vote. Final Amended 2011-2012 Budget Millage Authorization (Operating, Debt) Tuition Recommendation beginning Winter 2013 Initial 2012-2013 Budget. - PowerPoint PPT PresentationTRANSCRIPT
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Mott Community College
Board of TrusteesRegular Board Meeting
June 25, 2012
BUDGET RESOLUTIONS
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For Consideration and Vote• Final Amended 2011-2012 Budget• Millage Authorization (Operating,
Debt)• Tuition Recommendation beginning
Winter 2013• Initial 2012-2013 Budget
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FINAL FY11-12 AMENDED BUDGET:
General Fund
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Final FY11-12 General Fund Budget
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REVENUES:Tuition & Fees -$588 thousand, -1.5% adj. credit-side enrollment and projections down for Winter and Spring 2012
Property Taxes -$185 thousand due to projected increased delinquencies
State Aid no change
Other Revenue $354 thousand (auxiliary revenue increased)
=Overall downward amendment to revenue is -$356 thousand
-.47% change from January 2012 amendment
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Final FY11-12 General Fund Budget
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EXPENDITURES:
Amended downward by $770 thousand, a 1% change:
Salaries & Wages and Fringe Benefits --continued holds on open positions.
Non-salary related expenses -- savings in contracted services and material and supplies, with increases in utilities.
Transfers -- increase of designated scholarships and transfers amongst sites to reflect actual anticipated activity.
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Final FY11-12 General Fund Budget
10-11 Actual 11-12 Amend #1 11-12 Amend #2
Revenues $ 76,710,276 $ 76,390,963 $ 76,035,286
Expenditures 76,518,073 77,609,947 76,839,675
Excess (Deficit) Revenues Over Expenditures
$ 192,203 $ (1,218,984) $ (804,389)
Fund Balance – Beginning $ 7,273,879 $ 7,466,082 $ 7,466,082
Fund Balance – Ending $ 7,466,082 $ 6,247,098 $ 6,661,693
Fund Balance Percent* 9.76% 8.05% 8.67%
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Summary
*Target = 5% - 10% of Expenditure budget
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PROPOSED FY 12-13 BUDGET
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3100 Budget Adoption. “Budget revisions will be brought forward for Board action as necessary, but not less than twice per year in January and June.”
3920,3930 Financial Stability, Fiscal Reserves. “The College will designate and set aside appropriate fund reserves to support plans for long-term capital and operating commitments.”
5100 Compensation Philosophy. “The Board has determined based on long-term budget projections, and other related budget data, that total compensation/ benefits should not exceed 77% of the total operating budget.”
RELEVANT BOARD POLICIES:_____________________________________________________________________
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PROPOSED FY12-13 BUDGET
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No Change in Budget Principles. Uncertainty still remains.
Budget must support Strategic Plans
Minimize/offset impact on Students
Avoid overall reduction in Staffing
Maintain Fund Balance/Reserves
Maintain flexibility in Budget
Balanced Approach
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PROPOSED FY12-13 BUDGET
Key Assumptions Revenues
Property Taxes $ 1,287,950State Aid $ 637,810Tuition $ 1,612,930
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PROPOSED FY12-13 BUDGET
Key Assumptions Expenditures
Transfers $ 569,640Salaries, Wages and Fringe Benefits $ 489,000Contracted Services $ 286,720Utilities and Insurance $ 220,200
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Initial FY12-013 General Fund Budget
11-12 Amend #2 Initial 12-13
Revenues $ 76,035,286 $ 76,845,892
Expenditures 76,839,675 76,840,772
Excess(Deficit) Revenues Over Expenditures $ (804,389) $ 5,120
Fund Balance – Beginning $ 7,466,082 $ 6,661,693
Fund Balance – Ending $ 6,661,693 $ 6,666,813
Fund Balance Percent* 8.67% 8.68%
Summary
*Target = 5% - 10% of Expenditure budget
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PROPOSED “OTHER FUNDS” FY12-13 BUDGETS
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Main Point is Impact on Operating Budget:
Designated Fund $2.61Million Revenue Budget
(Scholarships, Student Enrichment, Copy Machines, Paid Parking, Designated Technology Fee)
Auxiliary Enterprise Fund--$1 Million Budget$728,940 Net “profit” supplements General Fund
(Catering, Vending, Bookstore, Computer Lab Printing, Lapeer Campus Auxiliary)
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PROPOSED “OTHER FUNDS” FY12-13 BUDGETS
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Main Point is Impact on Operating Budget:
Debt Retirement FundMillage Rate remains at 0.87 mill to meet debt obligations
Capital Funds—repair, upgrade of buildings, equipment, technology, vehicles ($104 million in net value)
Instructional Technology Fee = $1.66 Million per year
$1.24 million per year planned transfer from General Fund (minimum required annual expenses).
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CAPITAL FUNDING
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• MCC’s mission statement directs the college to…
“maintain its campuses, state-of-the-art equipment, and other physical resources that support quality higher education. The college will provide the appropriate services, programs, and facilities to help students reach their maximum potential.”
Link to Mission and Strategic Plans
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Ass
et V
alu
e
New End of LifePremature End of Life
MCC Asset Value vs. Time
(Asset Life)Planned Maintenance points
Extended Life
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Deferred Maintenance
• Planned maintenance not performed when scheduled
• Usually lack of funding • Leads to earlier asset
replacement due to premature end of life
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Deferred Replacement
• Planned asset replacement not performed when scheduled – Usually lack of funding
• “Run-to-failure” mode of operation – Uses capital that should be
scheduled for other purposes
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Capital Asset Funding• Current 10 year needs
are approximately $85 million
• Taxable Values Declining
• Availability of Bonds?
• Approx. $1.7 million in tech fees annually
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TUITION PROPOSAL(CALENDAR YEAR 2013)
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$61.15
$70.55$86.52
$103.37
$61.34
$99.88
$133.30
$168.82
$60.00
$70.00
$80.00
$90.00
$100.00
$110.00
$120.00
$130.00
$140.00
$150.00
$160.00
$170.00
2001-2002 2004-2005 2009-2010 2011-2012
Actual
Hypothetical
What if Tuition Covered State Aid Losses?Add in Property tax loss =
$219.87
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Tuition Recommendation
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2012 Calendar
Year Rate
2013 Calendar
Year Rate IncreasePer Contact In-District Rate 108.05$ 117.23$ 9.18$ Hour: Out of District Rate 161.75$ 170.93$ 9.18$
Out of State Rate 215.49$ 243.00$ 27.51$ Institutional Technology Fee 6.19$ 6.72$ 0.53$ Student Services Fee 108.05$ 117.23$ 9.18$
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Tuition & Fees: Local ComparisonCollege Yearly Tuition & Fees
Mott CC 3,644 Saginaw Valley University 8,134 Eastern Michigan University 8,637University of Michigan - Flint 9,182 Oakland University 9,938 Baker College - Flint 10,080 Ferris State University 10,440 Central Michigan University 10,950 University of Michigan – Ann Arbor 12,634Michigan State University 12,821Davenport University 15,150 ITT Technical of Flint 31,272Kettering University 33,946
Cost as based on in district/state rates from the College’s web sites
MCC’s annual cost is approximately 45% of that of the next most affordable college/university in our
area.24
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7 Year Forecast at June 2012
Forecasts:>>>>>>>>>>>>>>>>>>>
Note: the forecast illustrates proforma data if current trends were to continue. The College is obligated to balance it’s budget each year and will take necessary steps to do
so.29
Revenues
Amended
Budget
2011-2012
Initial
Budget
2012-2013 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Tuition and Fees 39.0 40.6 42.2 43.9 45.6 47.4 49.2 51.1
Property Taxes 18.9 17.7 17.1 17.1 17.4 17.6 17.9 18.4
State Appropriations 14.4 15.0 15.5 15.9 16.3 16.6 16.9 17.2
All Others 3.7 3.5 3.6 3.7 3.7 3.8 3.9 4.0
Total Revenue 76.0 76.8 78.4 80.6 83.0 85.4 87.9 90.7
Revenue I ncrease (Decrease): 1.0% 2.1% 2.8% 2.9% 2.9% 3.0% 3.2%
Expenditures
Salaries 39.5 40.6 41.8 43.4 45.1 46.8 48.6 50.4
Fringe Benefi ts 17.6 17.0 17.8 18.6 19.4 20.3 21.2 22.2
All Others 19.7 19.2 20.4 20.9 21.4 21.9 22.4 23.0
Total Expenditures 76.8 76.8 80.0 82.9 85.9 89.0 92.2 95.6
Expenditure I ncrease (Decrease): -0.1% 4.1% 3.6% 3.6% 3.6% 3.6% 3.6%
Surplus/(Deficit): -0.80 0.01 (1.6) (2.3) (2.9) (3.6) (4.3) (4.9)
Fund Balance 6.7 6.7 5.1 2.8 (0.1) (3.7) (8.0) (12.9)
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Mott Community College
Board of TrusteesCommittee of the Whole
MeetingJune 25, 2012
Questions or Comments?
For More Info.: Contact Larry Gawthrop, CFO (810) 762-0525 or [email protected]
Details Provided with Board Resolutions 1.39 and 1.40