Mott Community College Board of Trustees Committee of the Whole Meeting

advertisement
Mott Community College
Board of Trustees
Committee of the Whole Meeting
June 27, 2011
BUDGET RESOLUTIONS
FINAL FY10-11 AMENDED
BUDGET:
General Fund
2
Final FY10-11 General Fund Budget
Summary
09-10 Actual
Revenues
10-11 Amend #1
10-11 Amend #2
$ 76,470,893
$ 75,293,170
$ 76,540,428
75,979,329
75,227,729
76,358,646
Expenditures
Excess Revenues Over
Expenditures
$
491,564
$
65,441
$
181,782
Fund Balance – Beginning
$
6,782,315
$
7,273,879
$
7,273,879
Fund Balance – Ending
$
7,273,879
$
7,339,320
$
7,455,661
Fund Balance Percent*
9.57%
*Target = 5% - 10% of Expenditure budget
9.76%
9.76%
3
PROPOSED FY 11-12 BUDGET
4
RELEVANT BOARD POLICIES:
_____________________________________________________________________
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.”
5
STRATEGIC PLAN
_____________________________________________________________________
7-0. Budget/Finance
7-1. Focus on controllable revenues and costs to sustain
our current reputation and facilities and provide funding
for strategic priorities
7-2. Establish short and long-term budget and finance
priorities that provide a balanced approach to the needs of
a learning organization with the flexibility to realign
resources
7-3. Implement a comprehensive strategy to address the
long-term deficit which enables us to continue to provide
affordable high quality education
6
Trends in Funding Sources & Enrollment
40,000
$33,500,000
35,000
Funding
$28,500,000
30,000
$23,500,000
25,000
$18,500,000
20,000
15,000
$13,500,000
10,000
$8,500,000
5,000
$3,500,000
0
State Aid
Property Taxes
Headcount
7
Percentage of Property Tax and
State Aid of Total Funding
70%
60%
63%
60%
62%
60%
59% 58%
57% 56% 56%
50%
54%
51%
47%
06/30/11
06/30/10
06/30/09
06/30/08
06/30/07
06/30/06
06/30/05
06/30/04
06/30/03
06/30/02
06/30/01
06/30/00
06/30/12
44%
40%
8
Enrollment vs Appropriations
FY 06 – FY11
35
35
30
Enrollment
In percents
25
20
Appropriation
s
15
10
3.4
5
5
4.8
-
0
-5
-10
(8.8)
-15
K-12 Schools
Universities
Community Colleges
9
Compensation as a Percentage of
the General Fund Budget
Compensation expense would be $1.96 M higher if it was at 2001 levels as a
percentage of budget.
Ten year average salary increases are 1.62%.
Initial FY11-012 General Fund Budget
Summary
10-11 Amend #2
Revenues
Initial 11-12
$ 76,540,428
$ 76,920,169
76,358,646
78,340,501
$ (1,420,332)
Expenditures
Excess(Deficit) Revenues Over Expenditures
$
181,782
Fund Balance – Beginning
$
7,273,879
$
7,455,661
Fund Balance – Ending
$
7,455,661
$
6,035,329
Fund Balance Percent*
9.76%
7.70%
*Target = 5% - 10% of Expenditure budget
11
PROPOSED “OTHER FUNDS”
FY11-12 BUDGETS
Main Point is Impact on Operating Budget:
Designated Fund $2.67Million Revenue Budget
(Scholarships, Student Enrichment, Copy Machines, Paid Parking,
Designated Technology Fee)
Auxiliary Enterprise Fund--$813,400 Budget
$499,040 Net “profit” supplements General Fund
(Catering, Vending, Bookstore, Computer Lab Printing, Lapeer Campus
Auxiliary)
12
PROPOSED “OTHER FUNDS”
FY11-12 BUDGETS
Main Point is Impact on Operating Budget:
Debt Retirement Fund
Millage Rate resets to 0.87 mill to meet debt obligations
Capital Funds—repair, upgrade of buildings, equipment,
technology, vehicles ($102 million in net value)
Instructional Technology Fee = $1.69 Million per year
$1.45 million per year planned transfer from General
Fund (minimum required annual expenses).
13
BOND FUNDS
(VOTER AUTHORIZED DEBT)
14
Bond Funds
1. County and City Taxable Values will decline by 7% for
2011-2012
2. The Financial Impact (Shortfall) to the Bond Funds will be
$ 850,000 in 11/12.
3. We are legally required to levy a millage rate that will be
sufficient to collect enough dollars to make the current
year required payments
-ORHave enough funds available from other sources to cover
any shortfall from a lower millage rate.
4. Commitment made to voters in 2004 to keep millage at
.69 through 2011. (GF contribution $1.4 million last year)
15
Bonded Debt Payments vs Tax Collections at
.69 Mills
$9,000,000
$8,500,000
8,279,381
8,052,269
$8,000,000
7,835,136
7,735,245
7,571,294
$7,500,000
7,492,450
$7,000,000
$6,500,000
6,596,937
$6,000,000
Debt Payments
Actual/Projected Revenue
16
CAPITAL FUNDING
Link to Mission and
Strategic Plans
• 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.”
MCC Asset Value vs. Time
(Asset Life)
Asset Value
Planned Maintenance
points
New
Premature
End of Life
End of Life
Extended Life
Capital Asset
Funding
•Current 10 year needs are
approximately $78 million
•Taxable Values Declining
• Availability of Bonds?
•Approx. $1.7 million in
tech fees annually
TUITION PROPOSAL
(CALENDAR YEAR 2012)
21
What If Tuition Covered State Aid Losses?
Add in Property tax loss = $250.16
$143.70
$155.00
$135.00
$115.46
$99.61 $99.88
$115.00
$120.92
$164.16
$129.65
$128.65
140.32
$95.00
$75.00
$55.00
$72.50
$61.34
$61.15 $62.85
$69.00 $70.55
Actual
$82.05 $84.70 $86.52
$79.50
$75.80
$93.51
$103.37
Hypothetical
22
Tuition Increases Relative to State Aid
& Property Tax Revenue Decreases
Delta CC
Muskegon CC
Mott CC
9.5%
$(50,000)
$(191,348)
$(358,500)
$(524,900)
5.8%
$(630,000)
($575 K)
($549 K)
2.4%
$(1,500,000)
State Aid
Property Tax
% Tuition Increase
($2.13 M)
Tuition Recommendation
2011 Calendar 2012 Calendar
Year Rate
Year Rate Increase
Per Contact In-District Rate
Hour:
Out of District Rate
Out of State Rate
Institutional Technology Fee
Student Services Fee
$
$
$
$
$
98.68
147.72
197.13
5.65
98.68
$
$
$
$
$
108.05
161.75
215.86
6.19
108.05
$ 9.37
$ 14.03
$ 18.73
$ 0.54
$ 9.37
24
25
7 Year Forecast at June 2011
Revenues
Forecasts:>>>>>>>>>>>>>>>>>>>>>
Amended
Initial
Budget
Budget
2010-2011
2011-2012 2012-13 2013-14 2015-16 2015-16 2016-17 2017-18
Tuition and Fees
37.6
39.9
41.1
42.3
43.5
44.8
46.1
47.4
Property Taxes
20.6
19.1
18.6
18.7
19.1
19.7
20.3
20.9
15.1
14.4
14.4
14.5
14.7
15.0
15.2
15.4
3.2
3.5
3.5
3.6
3.7
3.8
3.8
3.9
76.5
76.9
77.6
79.2
81.1
83.2
85.4
87.6
0.5%
0.9%
2.1%
2.4%
2.6%
2.6%
2.6%
State Appropriations
All Others
Total Revenue
Revenue Increase (Decrease):
Expenditures
Salaries
40.4
40.2
41.2
42.2
43.8
45.4
47.1
48.9
Fringe Benefits
17.3
18.4
18.4
18.4
18.9
19.4
19.9
20.5
All Others
18.6
19.7
20.2
20.8
21.3
21.8
22.5
23.1
76.4
78.3
79.8
81.3
83.9
86.5
89.5
92.5
2.6%
1.9%
1.9%
3.2%
3.1%
3.5%
3.3%
0.18
(1.42)
(2.2)
(2.1)
(2.8)
(3.4)
(4.2)
(4.9)
7.5
6.0
3.7
1.5
(1.3)
(4.7)
(8.9)
(13.7)
Total Expenditures
Expenditure Increase (Decrease):
Surplus/(Deficit):
Fund Balance
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.
26
Mott Community College
Board of Trustees
Meeting
June 27, 2011
For More Information please see Board Resolutions 1.39 and 1.40
Questions? Contact Larry Gawthrop, CFO (810) 762-0525 or [email protected]
Download
Related flashcards
Create flashcards