January 29, 2019 Audit Finance Committee Meeting
Audit/Finance Committee of the Board of Trustees of Illinois Valley Community College
District No. 513 met at 5:30 p.m. on Tuesday, January 29, 2019 in the Board
Room (C307) at Illinois Valley Community College.
Everett J. Solon, Committee Chair
David O. Mallery
Jay K. McCracken
Board Members Present:
Jane E. Goetz, Board Chair
Others Physically Present:
Cheryl Roelfsema, Vice President for
Business Services and Finance
Deborah Anderson, Vice President for Academic
Mark Grzybowski, Vice President for Student
Bonnie Campbell, Associate Vice President
for Academic Affairs
Fran Brolley, Director of Community
Relations and Development
Kathy Ross, Controller
Mr. Solon called the meeting to order at 5:30 p.m.
PLAN (FY2020 – FY2022)
Cheryl Roelfsema presented the
three-year financial plan covering the fiscal years 2020 through 2022. Ms.
Roelfsema informed that the financial plan is intended to be a guide in
developing the FY2020 budget and carrying out the college’s strategic plan. The
goal is to present a balanced operating budget and the changes in all funds
except Restricted for the next three years. The assumption is that Restricted
Fund revenues will equal Restricted Fund expenditures. Ms. Roelfsema noted that
this plan is optimistic about enrollment growth and cautious on state funding.
She reported that the district’s equalized assessed valuation (EAV) is
projected to increase 1.5 percent each year.
Over the last ten years the average annual increase has been 1.7
percent. The EAV of the Exelon
Generating Station will increase to $460 million from $435 million in tax year
2019 which affects fiscal year 2020 and 2021.
Credit hours are projected to decline to 56,000 in FY2020 and then
increase by one percent each year for FY2021 and FY2022. Ms. Roelfsema noted that budgeted credit
hours for FY2019 were 58,000. Annual
salary increases average 2.5 percent for all three years. The plan includes
adding four faculty members: Agriculture, Cybersecurity, Medical Assistant, and
Industrial Maintenance/Electronics. There are no anticipated retirements. Ms. Roelfsema reported that three of the
positions, Cybersecurity, Medical Assistant and Industrial
Maintenance/Electronics were include in the FY2019 budget but the positions
were not filled. Benefits are projected
to increase by 5.0 percent each year.
Ms. Roelfsema added that overall health care cost increases are driving
this. Contract services and materials
and supplies include a two percent annual inflation rate. Professional development and travel costs are
budgeted at FY2018 actual costs. The
American Federation of Teachers Local 1810 contract provides $1,000 annually
per faculty member for professional development funds starting with FY2020.
Assuming for 80 faculty members, the cost would be $80,000 with the projected
travel budget for each of the three years at $120,000. Capital expenditures in the operating funds
are projected to range from $120,000 to $220,000 which is an increase from
recent years. This will cover upgrades
to IT infrastructure and minor facility upgrades. The Protection, Health and Safety levy will
cover the costs to replace air handlers and chillers in Building C in
FY2020. Caulking the exterior envelop of
Buildings A through E is a potential project for FY2021 and FY2022. A $10,000
match for Project Success is included in each year of the plan. Interest monies from the working cash fund
will be used as a contingency and transferred as needed. There is approximately $225,000 in interest
earning in the working cash fund. In
summary, Ms. Roelfsema noted that the struggle to maintain enrollments is the
highest priority of the college. Over
the next three years it will be important to match personnel with
enrollments. Ms. Roelfsema added that new
programs will need to be considered and current programs evaluated for
Ms. Roelfsema informed that the
administration is recommending no tuition increase at Illinois Valley Community
College in 2019-2020. Dr. Corcoran added that there will not be many community
colleges in the state that will make that statement. IVCC’s $133 rate compares to a peer average
of other community colleges of similar size, location and resources of $133.68
and a state average of $144.36. The committee
recommended that the tuition update be shared with the whole Board.
Course fees are reviewed annually
by program coordinators and deans using approved course fee guidelines. We currently have 365 active courses with
approved course fees. The recommendation is to change 86 course fees for FY2020:
62 increases, 2 new courses, 15 decreases, plus the assignment of a course fee
to 7 existing courses. A list of 86 courses were reviewed by the committee
members. Dr. Corcoran noted that some courses have additional fees because of
consumables, software needed, guest speakers and materials unique to the
course. Ms. Campbell added that the
assignment of fees to existing courses is predominately for Dental Assisting
courses to cover increased cost of materials. The committee recommended that the
fee changes and adjustments be presented to the whole Board.
CAPITAL DEVELOPMENT BOARD TRUST ACCOUNT
The Capital Development Board
(CDB) approved project #810-046-018 for construction of an agriculture program
equipment storage building in September 2018.
The CDB approved $164,790 in deferred maintenance funds with a match
from the college of $60,201. On November
13, 2018 the CDB awarded a contract for design to Demonica Kemper Architects,
LLC. Dominick Demonica met with college employees including agriculture program
faculty to help determine the needs for equipment storage. An orientation meeting was held with the CDB
project manager, Steve Halm, on January 7.
With input from both Steve Halm and Dominick Demonica it was determined
that for the size building that is needed the budget should be $675,000. The design work cannot progress until the
college has committed these funds to the project. In FY2001 monies were transferred from
operating funds to the restricted operations and maintenance fund for future
building projects which were undetermined at that time. The Administration is requesting IVCC Board
authorization to transfer $450,000 to the Capital Development Board trust
account at Midland States Bank from the restricted operations and maintenance
fund so that design work can continue. This will bring the trust account
balance to $460,910. The transfer does
not authorize the project to go beyond the design stage. Dr. Corcoran noted that the building design
will require IVCC Board approval before it can proceed. The committee was in agreement that the
request for transfer of funds be presented to the whole Board.
OTTAWA DOWNTOWN TIF EXTENSION - IGA
The City of Ottawa is asking the
college to support extending the life of the Downtown TIF District for an
additional twelve years. The TIF is
scheduled to expire in 2022. The college
does not have an intergovernmental agreement (IGA) with the City of Ottawa to
share in the tax increment revenues. In
return for support of the TIF district extension, the city has proposed an IGA
which would provide for the following items:
The city would declare as “surplus funds” fifty percent
(50%) of the gross real estate tax increment which would be distributed by
LaSalle County based on each taxing bodies’ tax rate.
The tax increment from any increased assessment
resulting from new construction, expansion, or rehabilitation/renovation
projects pursuant to a redevelopment agreement approved by the city after
January 1, 2019 would be exempt from the fifty percent (50%) surplus
funds. The city would reimburse the
Community College District a sum equal to three percent (3%) of the annual
gross real estate tax increment from the properties.
The committee recommended that
the proposed intergovernmental agreement for the Ottawa Downtown TIF Extension be
presented to the whole Board.
Mr. Solon declared the meeting adjourned at 6:05 p.m.