View
24
Download
0
Category
Preview:
DESCRIPTION
MOTT COMMUNITY COLLEGE. Budget Resolutions. Board of Trustees Committee of the Whole Meeting June 18, 2014. For Consideration and Vote. FINAL FY13-14 AMENDED BUDGET :. General Fund. Final FY13-14 General Fund Budget. Revenues - PowerPoint PPT Presentation
Citation preview
MOTT COMMUNITY COLLEGEBoard of Trustees
Committee of the Whole MeetingJune 18, 2014
Budget Resolutions
For Consideration and Vote
Final Amended 2013-2014 Budget
Initial 2014-2015 Budget
Millage Authorization (Operating, Debt)
Tuition and Fee Recommendation beginning Winter 2015
FINAL FY13-14 AMENDED BUDGET:
GENERAL FUND
Final FY13-14 General Fund Budget REVENUESOverall upward amendment to revenue is $2.0 Million; 2.28% change from January 2014 amendment
Transfers In
State Aid
Up $400k$350,000 Decrease from Reserves
$1.6 Million for the UAAL Rate Stabilization
Payments
Tuition, Grants,
PropertyTaxes
Final FY13-14 General Fund BudgetEXPENDITURESAmended upward by $1.3 Million; 1.73%
Salaries & Fringe
Benefits
Savings in contracted services, materials & supplies, and utilities,
increase in bad debt expense, equipment
$1.6 Million for the UAAL Rate Stabilization Payments
Non-salary
related expenses
Final FY13-14 General Fund Budget SUMMARY 12-13 ACTUAL 13-14 AMEND
#113-14 AMEND
#2Revenues $ 73,746,195 $ 73,313,454 $ 75,078,928
Expenditures 73,671,482 73,896,751 75,265,897
Excess (Deficit) Revenues Over Expenditures
$ 74,712
$ (583,297) $ (186,969)
Fund Balance – Beginning $ 6,506,447 $ 6,581,160 $ 6,581,160
Fund Balance – Ending $ 6,581,160 $ 5,997,863
$ 6,394,191
Fund Balance Percent* 8.92% 8.18% 8.52%
* Target = 5% - 10% of expenditure budget
Final FY13-14 General Fund BudgetNET RESULTS OF AMENDMENT:
6/30/2014 projected to end with ($187,000) reduction
FUND BALANCE : $400,000 higher than the January Amended Budget
Reserves as Required by Board Policy #3930FUND 01 72 78
Fund Name General Operating Reserve
Maintenance & Replacement Fund
Building & Site Fund
Requires 5-10% of annual operating expenses
1-3% of College depreciated assets
or $3 M
1-3% of College depreciated assets
or $3 M
13-14 Amended Budget Reserve 8.5% $1.6 million $1.8 million
Amount Needed to Fully Fund $1.4 million $1.2 million
Funding Sources2014 -2015State Aid
Tuition
Property Taxes
Debt Operating
THEN and NOW
Tuition32%
Taxes26%
State Aid37%
Other6%
1999-2000
Tuition50%
Taxes24%
State Aid21%
Other6%
2013-2014
State Funding$15,344,107
State Funding$15,306,817
What if Tuition Covered State Aid Losses?
2001
-200
2
2002
-200
3
2003
-200
4
2004
-200
5
2005
-200
6
2006
-200
7
2007
-200
8
2008
-200
9
2009
-201
0
2010
-201
1
2011
-201
2
2012
-201
3
2013
-201
4
$- $20 $40 $60 $80
$100 $120 $140 $160 $180 $200
$61 $63 $69 $71 $76 $80 $82 $85 $87 $94$103
$113 $120
$61$73
$100 $100$115 $121 $129 $130 $133
$147
$167$175 $175
Actual Hypothetical
Projected Property Tax Funding FYE 2010 through FYE 2016
($19.4 Million lost since 2009-2010)
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 $12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
$22,000,000
$24,000,000
$23,266,144.
0
$20,168,704.0
$18,940,451.
0 $17,652,500.
0
$17,228,840.
0
$17,228,840.
0
$17,487,272.
0
$3.1 M $1.3 M $1.3 M$500K
Enrollment and State and Local Funding per Fiscal Year Equated Students (FYES)
2001
-200
2
2002
-200
3
2003
-200
4
2004
-200
5
2005
-200
6
2006
-200
7
2007
-200
8
2008
-200
9
2009
-201
0
2010
-201
1
2011
-201
2
2012
-201
3
$4,000
$4,500
$5,000
$5,500
$6,000
$6,500 Revenue per FYES
Fund
ing
Percentage of Property Tax and State Aid of Total Funding
6/20
00
6/20
01
6/20
02
6/20
03
6/20
04
6/20
05
6/20
06
6/20
07
6/20
08
6/20
09
6/20
10
6/20
11
6/20
12
6/20
13
6/20
14
30%
35%
40%
45%
50%
55%
60%
65%
70%
63%60%
62% 60%59% 58% 57% 56% 56%
54%51%
47%44% 45% 45%
A Comparison to Seven Other Michigan Peer Community CollegesBased on 2012 – 2013 ACS Data
Current Year Comparison of Millage Rates / Property Tax Declines with State Grouping
-9.0%
-8.0%
-7.0%
-6.0%
-5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
-2.5%
-4.6%
-0.3%
-1.7%
-0.9%
-7.7%
-0.7%
-4.5%
Prop
erty
Tax
es
Mill
age
Rate
s
MCC is 3rd Highest Millage Rate, and has the Largest Property Tax Decline
Current Year Comparison of State of Michigan Peer Group Property Tax Revenue
Hen
ry F
ord
Kala
maz
oo V
alle
y
Scho
olcr
aft
Del
ta
Mott
Gra
nd R
apid
s
Was
hten
aw
Way
ne C
ount
y
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
12345678
Comparison of State of Michigan Peer Group Revenue Percentages
Delta Grand Rapids Henry Ford Kalamazoo Mott Schoolcraft Washtenaw Wayne County
0%10%20%30%40%50%60%70%80%90%
100%
21% 17% 24% 22% 19% 17% 13% 15%
32%26% 11%
34%31% 29%
49% 45%
45%53% 63%
41% 47% 51%34% 38%
State Aid Property TaxTuition & Fees All Other
Based on 2012 - 2013 ACS Data
What Have We Done Regarding Controlling/Reducing Costs?
Expenditure Reductions
More Expenditure Reductions
Even More Expenditure Reductions
Federal Student Financial Aid & MCC
Tuition & Financial Aid
2710000072%
23000006%
830000022%
Federal AidOther AidCash Paying
Total aid comprises 78% of MCC’s total tuition revenue
Pell Awards
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Academic Year
Pell Award & Cost of TuitionMOTT COMMUNITY
COLLEGE IN-DISTRICT
(PUBLISHED 13-14)SAGINAW VALLEY STATE
UNIVERSITY IN-STATEPell Awarded $5,730 $5,730
Tuitions & Fees (30 contact hours)
$4,271 $7,985
Books & Supplies $1,000 $1,000
Difference $459 - $3,255
Student receives remaining balance
Student needs unmet
Pell Distribution – 2013/2014
AWARDED
EDUCATIONAL TUITION &
FEES
EDUCATIONAL BOOKS & SUPPLY
CHARGES
NON-EDUCATIONAL $$
GIVEN TO STUDENTS
$ 22,570,894 $ 17,655,767 $ 2,659,748 $ 2,255,3792014/1 to 2014/4 - Preliminary
Approximately 7,282 Students
Available Financial Aid (Pell & American Opportunity Tax Credit)
PellAmerican Opportunity Tax Credit (AOTC) “Pell for Most Everyone Else”
Maximum Award $5,730 $2,500
Enrollment Sliding Scale up to full-time At least Half Time
Income Limits Expected Family Contribution Modified AGI < $80,000 Single < $160,000 MFJ
Program of Study Degree or Certificate-Accredited Institution
Degree or Certificate-Accredited Institution
Can be used for Tuition, fees, books, equipment, supplies, leftover can be for living expenses
Tuition, fees, books, equipment, supplies
Length of Award 6 years 4 years
Other Eligibility Not convicted of a felony drug offense Not convicted of a felony drug offense
Tuition & Fee Recommendation2013 CY RATE
2014 CY RATE
INCREASE
Per Contact Hour
In-District Rate $ 122.50 $ 126.30 $ 3.80
Out of District Rate $ 177.96 $ 183.48 $ 5.52
Out of State Rate $ 253.54 $ 261.40 $ 7.86
Institutional Technology Fee $ 7.02 $ 7.24 $ 0.22
Student Services Fee $ 122.50 $ 126.30 $ 3.80
Student Administrative Fee $ 8.50 $ 8.76 $ 0.26
Tuition & Fees: Local ComparisonCollege
Yearly Tuition & Fees
Mott Community College $ 4,271Saginaw Valley University $ 7,985Eastern Michigan University $ 7,989Baker College – Flint $ 8,280University of Michigan – Flint $ 9,426Oakland University $ 10,613Ferris State University $ 10,950Central Michigan University $ 11,220Davenport University Not ReportedMichigan State University $ 12,862University of Michigan – Ann Arbor $ 13,783Kettering University $ 29,536
MCC’s annual cost is approximately 48% of that of the next most affordable college/university in our area
Cost is based on rates published from the Peterson’s Guide at www.petersons.com as of 6/11/2014.
Proposed Fiscal Year 2014-2015 Budget
Relevant Board Policies3100 BUDGET ADOPTION
• Budget revisions will be brought forward for Board action as necessary, but not less than twice per year.
3920 FINANCIAL STABILITY & 3930 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
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
7-4 Seek and cultivate
alternative resources to supplement
and/or increase existing revenue
streams and funding sources
Proposed FY14-15 General Fund Budget
REVENUES – KEY ASSUMPTIONS
Grants & Other
Property Taxes
Tuition & State
Aid
unchanged$1.5 million in tuition & fees; $430,000 in State Aid
($100,000) decrease in transfers in
Proposed FY14-15 General Fund BudgetEXPENDITURES – KEY ASSUMPTIONS
Salaries & Fringe
Benefits
Additional bad debt expenseNo across the board increases, minimal increase in health insurance (hard cap), and
blended MPSERS rate
Other Expenses
Initial FY14-15 General Fund Budget
13-14 AMEND #2 INITIAL 14-15
Revenues 75,078,928 75,430,356
Expenditures 75,265,897 75,424,741
Excess (Deficit) Revenues Over Expenditures (186,969) 5,615
Fund Balance – Beginning 6,581,160 6,394,191
Fund Balance – Ending 6,394,191 6,399,806
Fund Balance Percent* 8.52% 8.45%
* Target = 5% - 10% of expenditure budget
Proposed “Other Funds” FY14-15 Budgets
Main Point is Impact on Operating Budget
Designated Fund $2.7Million Revenue Budget Scholarships, Student Enrichment, Copy Machines,
Paid Parking, Designated Technology Fee
Auxiliary Enterprise Fund $994,000 Budget $751,750 Net “Profit” Supplements General Fund Catering, Vending, Bookstore, Computer Lab Printing,
Lapeer Campus Auxiliary
Proposed “Other Funds” FY14-15 Budgets
Main Point is Impact on Operating Budget
Debt Retirement Fund Millage rate remains at 0.87 mill to meet debt obligations
Capital Funds repair, upgrade of buildings, equipment, technology & vehicles ($101 million in net value) Instructional Technology Fee = $1.55 Million per year $765,000 per year planned transfer from General Fund
(minimum required annual expenses)
Capital FundingRegional Technology Center
Link to Mission and Strategic PlansMCC’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.”
Capital Asset Funding
Current 10 year needs are approximately $85 million Taxable Values Declining Bond Millage passed in
November 2013 ($50 M) Approx. $1.6 million in tech
fees annually
7 Year Forecast
7 – Year Forecast
Key Assumptions – Revenue Tuition and fee revenue increases at 1.0% each year Property tax revenue remain flat for 1 year with slight
increases (0.5-1.0%) thereafter 0.6410 Mill Voted Operating Millage is renewed for 10
years starting with FY08-09 State appropriations increase at 1% Other revenues increase by 2% each year Total revenue increases by an average of 1.4%
7 – Year Forecast
Key Assumptions - Expenses Salaries and wages increase by 2.5% each year Fringe benefits increase at a rate of 2.0% each year Total expenses increase by avg. of 2.4% each year
7 – Year Forecast
Projected General Fund Balance would be ($12.7) million at end of FY20-21, if current trends continued (Revenue growth of 1.4% vs. expenditure growth of 2.4%)
Based on an average projected gap of $823,000 per year to be filled with budget-balancing solutions
Short-term savings and flexibility continues to be key Long-term strategy of managing total compensation
costs
7 Year Forecast at June 2014REVENUES
AMENDED BUDGET 13-14
INITIAL BUDGET
14-15 15-16 16-17 17-18 18-19 19-20 20-21
Tuition & Fees 36.6 38.2 38.6 38.9 39.3 39.7 40.1 40.5
Property Taxes 17.3 17.3 17.6 18.0 18.4 18.9 19.4 19.9
State Appropriations 16.9 15.7 15.9 16.1 16.2 16.4 16.5 16.7
All Others 4.2 4.2 4.3 4.3 4.4 4.5 4.6 4.7
TOTAL REVENUE 75.1 75.4 76.4 77.3 78.4 79.5 80.7 81.8
Revenue Increase (Decrease) 0.5% 1.2% 1.3% 1.4% 1.4% 1.4% 1.4%
EXPENDITURES
Salaries 40.0 40.3 41.3 42.4 43.4 44.5 45.6 46.7
Fringe Benefits 18.6 17.6 18.0 18.3 18.7 19.1 19.4 19.8
All Others 16.7 17.5 18.0 18.5 19.1 19.6 20.1 20.7
TOTAL EXPENDITURES 75.3 75.4 77.3 79.2 81.2 83.1 85.2 87.3
Expenditure Increase (Decrease) 0.1% 2.6% 2.4% 2.4% 2.4% 2.4% 2.5%
Surplus/(Deficit) (0.19) 0.06 (1.0) (1.9) (2.7) (3.6) (4.5) (5.5)
Fund Balance 6.3 6.4 5.4 3.4 0.7 (2.9) (7.4) (12.9)
Note: the forecast illustrates proforma data if current trends were to continue. The College is obligated to balance its budget each year and will take necessary steps to do so.
MOTT COMMUNITY COLLEGEBoard of Trustees
Committee of the Whole MeetingJune 18, 2014
Questions or Comments?
Larry Gawthrop, CFO (810) 762-0525
larry.gawthrop@mcc.edu
Details Provided with Board Resolutions 1.39 and 1.40
Recommended