Central Michigan University Capital Budget

Transcription

1 Central Michigan University Capital Budget Table of Contents

2 Central Michigan University Capital Budget Table of Contents I. Narrative A. Overview and Process...1 B. Funding Sources...2 C. Capital Expenditures...3 D. Technology Resource Allocations...4 II. Capital Budget Summary...5 III. Restricted Funds...6 IV. Unrestricted Sources of Funds...7 V. Uses of Funds...8 VI. Repayment to the Capital Budget...10 VII. Technology Summary...11 VIII. Multi-Year Projects...13

3 Capital Budget Overview and Process The capital budgeting process is designed to provide a long-term perspective of the capital needs of the university. The annual review and update of the capital budget provides a four year projection concerning capital needs in the areas of capital construction; special maintenance; renovation and remodeling; utilities and infrastructure; life, fire and handicap safety; parking; and major equipment acquisition. The capital budget is designed to present and integrate the capital expenditure needs and funding availability. The sources of funds available for the capital needs are State capital outlay, gifts, the parking services operating budget, the residences and auxiliary services operating budget, the general fund operating budget, and other miscellaneous funding sources. This budget document separates the restricted dollars which must be used for specified projects and then pools the internal revenue sources committed to the capital budget process. The resources that do not have restrictions are pooled in one account per year. A separate pooled account is used for each year of the capital budgeting process. As the President or his designee authorizes the initiation of individual projects, specific project accounts are then created for the expenses and funds are moved to the project account from the pool. Once the project is completed, any excess funds will be moved back to the pooled account to be used for other capital project priorities. 1 This budget documents the capital budget for administrative and Board approval. Approval of this document includes the projects and the multi-year projects included on page 12. The other future year projects are listed as planning information and will be revisited annually for changes in content, priorities, and funding. This comprehensive review of the capital needs and funding sources of the University allows for systematic prioritization on an institutional basis. The capital budget process is useful for documenting capital needs across the university and prioritizing projects within the funding constraints. The priorities are established based on anticipated future funding and a general categorization to do maintenance related projects before new initiatives. Many projects have been recommended but, due to limited resources, cannot be funded at this time. This document includes only items that can likely be done in the four-year future window covered by this budget. The campus has many deferred maintenance needs as documented in a detailed audit of each building that was done in Beginning with , $4,500,000 per year will be dedicated toward addressing these needs. The plan that was approved is a fifteen-year plan. Funding will be from a variety of sources, including the capital budget, general fund, the President s New Initiatives Fund, and residences and auxiliary services.

4 Part of this process involves an opportunity for divisional input regarding institutional capital needs. The process includes an annual window for requests to be presented as part of the overall documentation of needs. The annual process in which new items are brought forward for consideration is based upon the following procedures. The account director submits a project request to the individual vice president via a formal project request/authorization form. Prioritized requests supported by the respective vice president are compiled into one list of institutional priorities by the Budget and Planning Office and forwarded to the Capital Planning Committee, the Vice Presidents, and the President for review and final University prioritization. After the Capital Planning Committee, Vice Presidents, and the President have reviewed and modified the document, a final recommendation is forwarded to the Board of Trustees for approval. Board approval of this capital budget gives the President, or his designee, the authority to move forward with budgetary implementation at his discretion. Individual projects will not move forward for implementation until approved by the President or his designee. As of June 30, 1998 the value of the University facility cost was estimated to be $598,721,428. This includes over 100 buildings, some of which date back to the early part of the century. Most of the utilities link into a utility infrastructure providing heating, ventilation, and in some cases, air conditioning. A number of these facilities also include elevators. Restricted Funds Funding Sources The anticipated restricted sources of funds are coming from the State capital outlay process, bond proceeds from the bond issue in April 1997, a reserve which was set up for the Library project expansion, and gifts for the athletic projects. The State capital outlay for the Library addition and remodeling is shown, based on the approved level of $37,500,000. The project will require a twenty-five percent match or $12,500,000 from the University. Site preparation began in FY , with construction commencing in FY This project includes up to $700,000 of additional unrestricted funds for projects related to the Library addition and remodeling. This is over and above the original budget of $50,000,000. The budget for the Kelly Shorts stadium expansion and the indoor athletic facility approved in January 1997 is shown in this document. The sources of funds for this project are gifts and the bonds that were issued in April In addition, $825,000 from the Capital Budget Pool was added to this budget to raise the total to $28,825,000. 2

5 Other University Resources There are several sources of University dollars being brought together in this section of the capital budget. Sources include funding from the parking services budget, the general fund, the President s New Initiatives Fund, the residences and auxiliary budget, and unused dollars from the prior year capital budget. There are also repayments to the capital budget from items previously funded. Specific funding for deferred maintenance is as follows Capital Budget $2,200,000 $2,200,000 $2,200,000 $2,200,000 New Initiatives 500, General Fund 1,400,000 1,500,000 1,500,000 1,400,000 Auxiliary Rm & Bd 400, , , ,000 $4,500,000 $4,500,000 $4,500,000 $4,500,000 The $4.5 million funding for deferred maintenance stabilizes in with $900,000 from Auxiliary Services and $1.4 million from the general fund. The deferred maintenance expenditure detail includes a contingency of about $600,000 per year as an estimate of the flexibility needed for this new program. This amount will be revisited in the future after some experience with deferred maintenance funding at this level. The years beyond include estimates of the amount of funding that will be spent in each general deferred maintenance category. These amounts will be revised and individual projects will be identified as each year approaches. Repayment to the Capital Budget This is the fourth year that the budget includes a summary of the projects that have been funded and have a repayment to the capital budget for some or all of the dollars that were fronted for the projects. There are four projects that currently fall into this category, and the details of the amount funded and the repayment stream can be seen on the schedule provided. Capital Expenditures Individual projects to be funded by the other University resources have been identified and documented in priority order. Except for the deferred maintenance projects, this capital budget is designed to address projects of $25,000 or more. Facilities Management has been allocated $50,000 each year from this budget to address the small maintenance and emergency projects under $25,000 each. Other small projects under this threshold are to be accommodated via the departmental budgets within the University operating budget. This $25,000 threshold is increasing from $10,000 effective July 1, This change is due to the additional flexibility that centers will have under the operating budget due to Budget Restructuring. The projected carry forward surplus at the end of the four-year window is at the level indicated to allow some flexibility for unforeseen projects that may arise during the year. 3

6 Technology Resource Allocations This is the fourth year that the technology resource allocation summary is also provided in this capital budget. This document provides a summary of the funds which have been specifically approved by the Board of Trustees and committed for technology needs to provide a comprehensive view of these projects. The funding sources for these technology projects are from various areas. This list does not include the numerous individual departmental acquisitions of computer hardware or software. 4

7 CENTRAL MICHIGAN UNIVERSITY CAPITAL BUDGET SUMMARY OF REVENUE AND EXPENDITURES Prior Year Total Projects Estimate In Process REVENUE/FUNDING State Capital Outlay $37,500,000 $0 $12,700,000 $24,800,000 $0 $0 Gifts for Athletic Projects 1,000, , , ,000 59,000 0 Reserve for Library Project 800, , Bond Funds 37,000,000 27,000,000 10,000, Est Interest on Bond Funds 1,700, ,700, Parking Services 4,102, ,025,600 1,025,600 1,025,600 1,025,600 Residences and Auxiliary Services 5,782, ,120,600 1,520,600 1,520,600 1,620,600 Res and Auxiliary Services Maintenance Fund General Fund 10,506, ,064,200 2,514,200 2,514,200 2,414,200 General Fund/New Initiatives 500, , Carry Forward from Prior Years 3,788,532 3,788, Payback from Prior Projects 1,296, , , ,000 0 Est Year End Transfers of Surpluses from Oper Units $0 $0 $0 $0 $0 Total Revenue/Funding $103,976,132 $32,129,532 $31,102,400 $30,464,400 $5,219,400 $5,060,400 CAPITAL EXPENDITURES Restricted Projects $78,000,000 $28,000,000 $25,000,000 $25,000,000 $0 $0 Other Projects 24,025, ,173,870 5,626,500 5,625,300 5,600,000 Total Capital Expenditures $102,025,670 $28,000,000 $32,173,870 $30,626,500 $5,625,300 $5,600,000 Net Surplus (Deficit) $4,129,532 ($1,071,470) ($162,100) ($405,900) ($539,600) Cumulative Surplus (Deficit) $1,950,462 $4,129,532 $3,058,062 $2,895,962 $2,490,062 $1,950,462 5

8 RESTRICTED SOURCES AND USES OF FUNDS FUNDING SOURCE Prior Year Account Total Projects Number Location Estimate In Process State Capital Outlay - Library $37,500,000 $0 $12,700,000 $24,800,000 $0 $0 Bond Funds for Library 10,000, ,000, Interest on Bond Funds 1,700, ,700, Reserve for Library Project 800, , Gifts for Athletic Projects 1,000, , , ,000 59,000 0 Bond Funds for Athletic Projects 27,000,000 27,000, Total Resources $78,000,000 $28,341,000 $24,640,000 $24,960,000 $59,000 $0 USES OF FUNDS Library Project (A) Park Library $50,000,000 $0 $25,000,000 $25,000,000 $0 $0 Athletic Projects (B) 28,000,000 28,000, Total Uses $78,000,000 $28,000,000 $25,000,000 $25,000,000 $0 $0 Net Available Resources $0 $341,000 ($360,000) ($40,000) $59,000 $0 Cumulative Surplus (Deficit) $341,000 ($19,000) ($59,000) $0 $0 (A) In addition to this project budget, an additional $700,000 from unrestricted capital funds have been allocated for related work. (B) The revised budget for this project is up to $28,825,000, with the additional $825,000 advance funded from unrestricted capital funds. 6

9 Unrestricted Sources of Funds Line Account Total No Number Estimate Funding Source 1 Parking Services $4,102,400 $1,025,600 $1,025,600 $1,025,600 $1,025, General Fund ,506,800 3,064,200 2,514,200 2,514,200 2,414, General Fund/New Initiatives , , Residences and Auxiliary Services ,782,400 1,120,600 1,520,600 1,520,600 1,620, Res and Aux Services Maintenance Fund Food Court Payback from Auxiliary Services , , , , Barnard/Tate Payback from Auxiliary Serv , , Robinson Dining Payback from Auxiliary Serv , , , Mainframe Payback from Comp Serv/Util 336, , , Est year end transfers of surplus from operating units Carry Forward Funding from ,788, Total Resources $25,976,132 $6,462,400 $5,504,400 $5,160,400 $5,060,400 7

10 General Uses of Funds Line Univ Total No Project Priority Location Estimate DEFERRED MAINTENANCE PROJECTS 1 Repair and rehabilitate elevator (advance funded) 1 Anspach $65,000 $65,000 2 Replace cold water line (advance funded) 2 Barnes 50,000 50,000 3 Replace windows 3 Barnes 188, ,000 4 Replace roof connecting Bovee UC and Barnes Hall 4 UC/Barnes 16,200 16,200 5 Replace heating and cooling unit ventilators (advance funded) 5 Brooks 30,000 30,000 6 Repair exterior wall masonry, clean and seal (advance funded) 6 Calkins 97,000 97,000 7 Energy management system upgrade - Phase I 7 Campus 65,000 65,000 8 Repair/replace pipe insulation in tunnels at north end of campus 8 Campus 120, ,000 9 Replace water-cooled with air-cooled air conditioners 9 Campus 35,000 35, Resurface drive south of stadium 10 Campus 100, , Replace asphalt sidewalks with concrete walks 11 Campus 50,000 50, Replace old exterior lights with energy efficient fixtures 12 Campus 75,000 75, Replace wiring, feedboxes, etc. for lighting in Warriner Mall 13 Campus 34,500 34, Replace leaking condensate line in main tunnel (advance funded) 14 Central Ener 50,000 50, Replace switchboard panels which serve boilers 15 Central Ener 25,000 25, Replace eave trough and underground storm sewer lines 16 Finch 40,000 40, Replace east end roof 17 IET 30,000 30, Replace leaking water pipes (advance funded) 18 Larzelere 140, , Replace roof 19 Larzelere 81,500 81, Replace north hallway and entrance roof 20 Merrill Dining 36,000 36, Replace roof (advance funded) 21 Merrill 157, , Various repairs to outdoor biology facilities 22 Neithercut 17,000 17, Replace south section of roof 23 Pearce 97,000 97, Replace roof (advance funded) 24 Robinson Di 157, , Dining commons renovation 25 Robinson Di 340, , Repair plumbing (advance funded) 26 Robinson 105, , Repair/modernize elevator (advance funded) 27 Ronan 35,000 35, Repair/replace plaster and paint interior of building 28 Sloan 500, , Replace roof 29 Sloan 150, , Replace windows (advance funded) 30 Sloan 138, , Repair soffits/fascia joints/clean stonework (advance funded) 31 Thorpe 115, , Replace dome roof and replace defective water valves 32 University C 407, , Repair masonry and stonework (advance funded) 33 Warriner 47,000 47, Repair water penetration problem/basement area 34 Warriner 75,000 75, Repair/replace exterior soffits 35 Washington 36,000 36,000 8

11 General Uses of Funds Line Univ Total No Project Priority Location Estimate Replace office and first floor level roofs 36 West 10,300 10, Repair/replace roof - west end 37 Wheeler 21,800 21, Replace roof 38 Wightman 156, , Roofing $1,500,000 $0 $500,000 $500,000 $500, Masonry 900, , , , Mechanical and plumbing 1,200, , , , Electrical 5,550, ,850,000 1,850,000 1,850, Architectural 2,550, , , , Contingency 2,405, , , , , SUBTOTAL DEFERRED MAINTENANCE $18,000,000 $4,500,000 $4,500,000 $4,500,000 $4,500, OTHER PROJECTS 49 Pool of funds for small maintenance projects (<$25,000) 39 Campus $200,000 $50,000 $50,000 $50,000 $50, Annual sidewalk repairs 40 Campus 160,000 40,000 40,000 40,000 40, Annual ADA changes 41 Campus 900, , , , Annual asphalt repair - parking lots, roads 42 Campus 400, , , , , Annual utility/mechanical asbestos abatement 43 Campus 360,000 90,000 90,000 90,000 90, Annual wood floor maintenance 44 Campus 80,000 20,000 20,000 20,000 20, Upton drain, phase 2 45 Campus 78,370 26,570 26,500 25, SAP system upgrade 46 Campus 650, , Pave parking lot 62 and drive (advance funded) 47 Campus 809, , Elevator replacement 48 Ronan 165, , TEPD office move and remodel 49 Ronan 67,700 67, SASW main office remodel 50 Anspach 37,600 37, EACL classroom remodel and multi-media equipment 51 Ronan 92,500 92, Upgrade HVAC system 52 Anspach 25,000 25, Administrative student system replacement 53 Foust 2,000, , , , , SUBTOTAL OTHER PROJECTS $6,025,670 $2,673,870 $1,126,500 $1,125,300 $1,100, TOTAL PROJECTS $24,025,670 $7,173,870 $5,626,500 $5,625,300 $5,600, ANNUAL SURPLUS (DEFICIT) ($711,470) ($122,100) ($464,900) ($539,600) 67 CUMULATIVE SURPLUS (DEFICIT) * $3,077,062 $2,954,962 $2,490,062 $1,950,462 * Includes prior year carryforward plus current year sources, less current year projects. 9

12 Summary of Projects With a Repayment to the Capital Budget Amount Total Funded Project by Capital When Repayment Schedule Total Project Name Amount Budget Funded Repayment Foodcourt Renovation $ 1,600,000 $ 800, $ 114,300 $ 185,700 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 800,000 Barnard/Tate Demolition (a) 1,445,000 1,445, , , , , ,040,000 Mainframe Purchase (b) 1,359, , ,800 15, , , , ,400 Robinson Food Commons (c) 975, , , , ,000 Totals $ 5,379,500 $ 3,772,500 $ 114,300 $ 461,500 $ 375,800 $ 575,800 $ 752,000 $ 444,000 $ 100,000 $ 2,823,400 (a) The net capital budget contribution for this project equals $405,000 for the landscaping and relocation of ROTC as a result of this demolition. (b) The net capital budget contribution for this project equals $204,100 (c) The funding for this project includes $340,000 of the funds earmarked for deferred maintenance, $235,000 from Auxiliary maintenance, renovation and remodeling, and the remaining $400,000 from the general capital budget. Estimated interest charges of $20,000 will flow to the General Fund interest income account. 10

13 Technology Resource Allocation University Supported Capital Projects. Date *all figures in US Dollars Description Base One Time Dec 1995 Mainframe Purchase 1,359,300 Feb 1996 Network Workshop 75,000 Feb 1996 University Advancement Upgrade 164,550 Feb 1996 Network Completion 273,446 Feb 1996 Upgrade Electrical for Network 347,500 Feb 1996 Replace DAVOX 180,000 Apr 1996 Asst Vice Provost position 89,388 Apr 1996 Student Computer and Classroom Improvements 1,000,000 May 1996 Fund Faculty Development for Tech Learn 100,000 Sep 1996 Fund Distance Learning Coordinator 84,598 Sep 1996 Student Computer and Classroom Improvements 750,000 Sep 1996 Education Technology Grant Program 200,000 Sep 1996 Library Technology Plan 100,000 Sep 1996 Technology Teaching and Learning Center 100,000 Sep 1996 Expand Campus Network 1,300,000 Sep 1996 Sep 1996 Mar 1997 Purchase of Additional DASD for Enterprise Server Purchase of Prospect Tracking for Admissions Fund partial implementation of SAP HR and FI Systems 400, ,100 3,496,000 11

14 Apr 1997 Purchase of UNIX Upgrade for IET and Pearce 245,000 Dec 1997 Meridian SL100 Switch Upgrade 700,000 Dec 1997 Purchase Library Information System 400,000 Mar 1998 Expand Campus Network 450,000 Sep 1998 Computer Lab for SAP Systems 200,000 Dec 1998 Campus Network Security 300,000 Mar 1998 Y2K Remediation 412,000 Total $506,586 $12,669,896 12

15 MULTI-YEAR PROJECTS PROJECT APPROVAL TO BE GRANTED WITH THE APPROVAL OF THE CAPITAL BUDGET DOCUMENT Prior Year Line Total Projects No Project Location Estimate in Progress Restricted Fund Projects 3 4 Library Project Park Library $50,000,000 $0 $25,000,000 $25,000,000 $0 $0 5 Athletic Projects 28,000,000 28,000, SUBTOTAL RESTRICTED PROJECTS $78,000,000 $28,000,000 $25,000,000 $25,000,000 $0 $ Unrestricted Fund Projects Additional Library Project site demolition, Park Library $700,000 $700,000 $0 $0 $0 $0 12 relocations, landscaping 13 Dining commons renovation Robinson 975, , , $1,675,000 $1,335,000 $340,000 $0 $0 $0 15 SUBTOTAL UNRESTRICTED PROJECTS TOTAL PROJECTS $79,675,000 $29,335,000 $25,340,000 $25,000,000 $0 $0 13