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MOTT COMMUNITY COLLEGEBoard of Trustees
Committee of the Whole MeetingJune 22, 2015
Budget Resolutions
For Consideration and Vote
Final Amended 2014-2015 Budget
Initial 2015-2016 Budget
Millage Authorization (Operating, Debt)
Tuition and Fee Recommendation beginning Winter 2016
FINAL FY14-15 AMENDED BUDGET:
GENERAL FUND
Final FY14-15 General Fund Budget REVENUESOverall downward amendment to revenue is $137,000; (-0.18%) change from February 2015 amendment
Tuition and Fees Grants
and Other
$150 thousand due to lower than anticipated
enrollment & contact hour decrease
$13 thousand due to slightly higher activity
than expected
Final FY14-15 General Fund BudgetEXPENDITURESAmended downward by $233,000; (-0.31%)
Savings in contracted services, materials & supplies, and bad
debt expense
$170,529 due to course section management and release of open position
pool
$146 thousand net, increase of $150,000 to
capital outlay and a reduction of $3,500 in
designated scholarships.
Non-salary
related expenses Transfers
Salary & Fringe
Benefits
Final FY14-15 General Fund Budget SUMMARY 13-14 ACTUAL 14-15 AMEND
#114-15 AMEND
#2Revenues $ 74,945,931 $ 75,699,657 $ 75,562,182
Expenditures 75,239,218 75,538,814 75,305,519
Excess (Deficit) Revenues Over Expenditures $ (293,287)
$ 160,843
$ 256,663
Budgeted Increase in Net Assets 0.00 0.00 (250,000)
Final Surplus $ 0.00 $ 0.00 $ 6,663
Net Assets– Beginning $ 6,581,160 $ 6,287,877 $ 6,287,877
Net Assets – Ending $ 6,287,873 $ 6,448,720 $ 6,544,540
Net Asset Balance Percent* 8.36% 8.54% 8.69%* Target = 5% - 10% of expenditure budget
Final FY14-15 General Fund BudgetNET RESULTS OF AMENDMENT:
6/30/2015 projected to end with $256,663 increase in Net Assets
NET ASSETS: $95,820 higher than the February Amended Budget
MCC
MCC RECENT FINANCIAL/OPERATING TRENDS
8
Funding Sources2015 -2016State Aid
Tuition
Property Taxes
Debt Operating
THEN and NOW
Tuition32%
Taxes26%
State Aid37%
Other6%
1999-2000
Tuition49%
Taxes24%
State Aid21%
Other5%
2014-2015
State Funding$15,344,107
State Funding$15,813,494
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
$17,663,093.
0
$3.1 M $1.3 M $1.3 M$500K
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
6/20
15
30%
35%
40%
45%
50%
55%
60%
65%
70%
63%60%
62% 60%59% 58% 57% 56% 56%
54%51%
47%44% 45% 45% 44%
Rise in Costs
2008 2009 2010 2011 2012 2013 2014$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000$70,832,466$72,489,551
$76,470,893$76,710,281$76,601,289$73,601,067$74,763,342
$61,093,002$65,088,368
$70,704,988$72,951,477$74,877,760$72,349,849$73,380,220
Total Revenue
MCC 13
% Budget to Cover Fixed/Variable Costs
2008 2009 2010 2011 2012 2013 201480.0%
82.0%
84.0%
86.0%
88.0%
90.0%
92.0%
94.0%
96.0%
98.0%
100.0%
86.3%
89.8%
92.5%
95.1%
97.8% 98.3% 98.2%
MCC 14
Salaries/Benefits as % of Budget
2008 2009 2010 2011 2012 2013 2014
67% 70% 70% 71% 73% 75% 76%
Salaries/Bene...
2008 2009 2010 2011 2012 2013 2014
69% 74% 76% 79% 81% 82% 83%
Salaries/Benefits/Temps/OT/Contra...
+4% +6% +8% +8% +7% +7%+2%
MCC 15
Tuition & Financial Aid
2820600071%
25700006%
910700023%
Federal AidOther AidCash Paying
Total aid comprises 77% of MCC’s total tuition revenue
Pell Awards
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014$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 FOR 14-15)EASTERN MICHIGAN
UNIVERSITY Pell Awarded (14-15) $5,730 $5,730
Tuitions & Fees (30 contact hours)
$4,402 $8,244
Books & Supplies $1,000 $1,000
Difference $328 - $3,514
Student receives remaining balance
Student needs unmet
Pell Distribution – 2014/2015
AWARDED
EDUCATIONAL TUITION &
FEES
EDUCATIONAL BOOKS & SUPPLY
CHARGES
REMAINING AWARD RETURNED TO
STUDENTS$ 20,033,668 $ 16,346,346 $ 2,179,537 $ 1,507,786
2015/1 to 2015/4 - Preliminary
Approximately 6,500 Students
Deferred Maintenance
Planned maintenance not performed when scheduled
Usually lack of funding – liability to college Leads to earlier asset replacement due to
premature end of life
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.”
MCC
2015 2016 2017 2018 2019 2020 2021 2022$0.0
$10,000,000.0
$20,000,000.0
$30,000,000.0
$40,000,000.0
$50,000,000.0
$60,000,000.0
$70,000,000.0
$80,000,000.0
$90,000,000.0
83400000
$6,666,666.7
$43,400,000
Total Unfunded Deferred Bond
Deferred Maintenance w/o ITS (72)
22*Does not include maintenance issues that will accumulate annually
Reserve Savings Levels Mandated by Board Policy
MCC 23
Depreciated Assets 06/30/2014
Expenditures 06/30/15
$93,244,035
$72,500,000
$7,250,000General Fund
(01)5 – 10%
$725,000Rainy Day (02)
1%
$5,594,642Capital Reserve
(72 & 78)1 - 3% +
+= $13,569,642
$10,191,43506/30/2014
Actual Balance
Projected Reserve Balances
24
June 30, 2014Actual
$6,287,873 GF
$750,000 Rainy Day
$3,226,911Capital Reserve
Balance $10,264,7841Lapeer Installment Purchase Payment
MCC
Michigan Community College Fund Balances (Peer Group)
25
PEER GROUP
General (01) Plant (72 & 78) Total1 General (01) Total1
Delta 6,768,400$ 25,118,731$ 49,434,549$ 10.87% 79.37%Grand Rapids 11,121,515$ 8,593,822$ 29,936,555$ 10.65% 28.68%Henry Ford (2013) 11,855,466$ 20,661,699$ 39,951,101$ 16.85% 56.79%Kalamazoo Valley 13,002,709$ 32,009,908$ 49,730,317$ 25.13% 96.12%Mott 6,287,873$ 5,994,151$ 13,558,250$ 8.52% 18.37%Schoolcraft 11,855,466$ 20,661,699$ 39,967,151$ 16.81% 56.67%Wastenaw 16,241,960$ 7,464,108$ 24,017,933$ 18.03% 26.66%Total 77,133,389$ 120,504,118$ 246,595,856$ 14.74% 47.13%
Overall State Average - All CC's 22.21% 35.00%
Fund Balances Fund Balance %
1Total includes General Fund, Auxiliary Fund, Designated Funds and Plant Funds
Enrollment Trends 2008 – 2016
2010 2011 2012 2013 2014 2015 20160
50,000
100,000
150,000
200,000
250,000
300,000
350,000
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000 Contact Hours
16% -2%
-15%
-6%-10%
-7%projected
-4%
Und
uplic
ate
d H
ead C
ount
Conta
ct H
ou
rs
MCC 26
MCC
THE IMMEDIATE STRATEGIC PLAN
27
Recruiting & Branding/Mar
keting
Dual Enrollment
EC Strategy
Proposed Fiscal Year 2015-2016 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
Long Term 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
Current Year Budget PrioritiesPlanned Decrease in Hiring $ (452,000)
Reduction in Contracted Services $ (680,475)
Reduction in Federal Work Study $ (270,000)
Reduction in Bad Debts $ (215,000)
Reduction in Internal Food $ ( 25,000)
Transfer to Maintenance and Replacement $ 230,000
Transfer to Capital Reserves $ 100,000 Add to General Fund Fund Balance $ 250,000
Tuition & Fee Recommendation2015 CY RATE
2016 CY RATE
INCREASE
Per: Contact Hour
In-District Rate $ 126.30 $ 130.34 $ 4.04
Out of District Rate $ 183.48 $ 183.48 $ 0.00
Out of State Rate $ 261.40 $ 261.40 $ 0.00
Institutional Technology Fee $ 7.24 $ 7.47 $ 0.23
Student Administrative Fee $ 8.76 $ 9.04 $ 0.28
Per: Semester
Student Services Fee $ 126.30 $130.34 $ 4.04
Tuition & Fees: Local ComparisonCollege
Yearly Tuition & Fees (14-15)
Mott Community College $ 4,402Eastern Michigan University $ 8,244Saginaw Valley University $ 8,253Baker College – Flint $ 8,460University of Michigan – Flint $ 9,720Oakland University $ 10,613Ferris State University $ 11,190Central Michigan University $ 11,550University of Michigan – Ann Arbor $ 13,158Michigan State University $ 13,200Davenport University – Grand Rapids $ 14,472Kettering University $ 36,980
MCC’s annual cost is approximately one half of the next lowest cost college/university in our area
Cost is based on rates published from the Peterson’s Guide at www.petersons.com as of 6/11/2015.
Proposed FY15-16 General Fund Budget
REVENUES – KEY ASSUMPTIONS
Grants & OtherProperty
Taxes & State Aid
$225,000 property taxes and $148,000 for State Aid
($1.2) million in tuition & fees; enrollment decline
Decrease in Grants & Other mostly due to a
decrease in transfers in; $51,000 increase in
Ballenger Trust
Tuition and Fees
Proposed FY15-16 General Fund BudgetEXPENDITURES – KEY ASSUMPTIONS
Increase of $490,000 with the majority of the increase in transfers to Maintenance & Replacement and capital
reserves
($453,000) No across the board increases, minimal
increase in health insurance (hard cap), and
blended MPSERS rate
Other Expenses
Salaries & Fringes
Contracted Services,
Materials & Supplies, & Equipment
($680,475) in contracted services; ($84,000) in
materials and ($76,000) for equipment
Initial FY15-16 General Fund Budget
14-15 AMEND #2 INITIAL 15-16
Revenues $ 75,562,182 $ 74,602,968
Expenditures 75,305,519 74,352,968
Excess (Deficit) Revenues Over Expenditures $ 256,663 $ 250,000
Budgeted Increase in Net Assets (250,000) (250,000)
Final Surplus $ 6,663 $ 0.00
Fund Balance – Beginning $ 6,287,877 $ 6,694,540
Fund Balance – Ending $ 6,544,540 $ 6,944,540
Fund Balance Percent* 8.69% 9.34%
* Target = 5% - 10% of expenditure budget
Proposed “Other Funds” FY15-16 Budgets
Designated Fund $2.5 Million Revenue Budget Scholarships, Student Enrichment, Copy Machines,
Paid Parking, Designated Technology Fee
Auxiliary Enterprise Fund $913,000 Budget $587,500 Net “Profit” Supplements General Fund Catering, Vending, Bookstore, Computer Lab Printing,
Lapeer Campus Auxiliary
Proposed “Other Funds” FY15-16 Budgets
Debt Retirement Fund Millage rate remains at 0.87 mill to meet debt
obligations
Capital Funds repair, upgrade of buildings, equipment, technology & vehicles Instructional Technology Fee = $1.47 Million per year $995,000 per year planned transfer from General Fund
(minimum required annual expenses plus reserves)
A Comparison to Seven Other Michigan Peer Community CollegesBased on 2013 – 2014 ACS Data
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
$- $5,000,000
$10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000
Current Year Comparison of State Aid
Scho
olcr
aft
Kala
maz
oo V
alle
y
Was
hten
aw
Del
ta
Mott
Way
ne C
ount
y
Gra
nd R
apid
s
Hen
ry F
ord
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
MOTT COMMUNITY COLLEGEBoard of Trustees
Committee of the Whole MeetingJune 22, 2015
Questions or Comments?
Larry Gawthrop, CFO (810) 762-0525
Details Provided with Board Resolutions 1.39 and 1.40