Monroe County Community College Proposed Budget FOR THE FISCAL YEAR

Transcription

1 Monroe County Community College Proposed Budget FOR THE FISCAL YEAR Proposed to the Monroe County Community College Board of Trustees JUNE 27, 2016

2 Proposed Budget Table of Contents Table of Contents Table of Contents Table of Contents... i List of Tables and Figures List of Tables and Figures... iii Chapter 1 Introduction...1 Chronology... 3 Fact Sheet... 4 Mission Documents... 7 Strategic Plan Chapter 2 Proposed Budget Fund Definitions Proposed Budget Chapter 3 General Fund General Comments General Fund Revenues Tuition and Fees State Appropriations Property Taxes Other Income General Fund Expenses Unrestricted Net Position Renovation Projects Capital Outlay Chapter 4 Retirement Designated Fund Description of Fund Proposed Budget Chapter 5 Designated Fund Description of Fund Monroe County Community College i

3 Proposed Budget Table of Contents Proposed Budget Proposed Expenses Software and Hardware Chapter 6 Auxiliary Activities Fund Description of Fund Listing of Campus/Community Events Proposed Budget Chapter 7 Restricted Fund Description of Fund Grant Descriptions Proposed Budget Revenue Sources Chapter 8 Unexpended Plant Fund Description of Fund Proposed Budget HVAC Project Capital Outlay Project Fiscal Year Chapter 9 Maintenance and Replacement Fund Description of Fund Projects Proposed Budget Year Maintenance and Improvement Millage Chapter 10 Other Funds Student Loan Fund Student Loan Fund Three Year Summary Endowment Fund Endowment Fund Three Year Summary Physical Properties Fund Physical Properties Fund Three Year Summary Chapter 11 Appendix Appendix A Listing of Activity Classifications Appendix B General Fund Budget Report by Cost Center Monroe County Community College ii

4 Proposed Budget Tables and Figures List of Tables and Figures Chapter 1 Table 1.1 Enrollment - Credit... 5 Table 1.2 Enrollment Non-Credit... 5 Table 1.3 Staffing Levels... 6 Table 1.4 Full-time Positions on Organizational Chart Not Funded... 6 Chapter 2 Table Proposed Budget Chapter 3 Table 3.1 General Fund Revenues Table 3.2 General Fund Revenues Percentage of Total Table 3.3 History of Wage Adjustments (Mgt., Prof. Staff, FT and PT Support Staff) Table 3.4 History of Wage Adjustments (Faculty) Table 3.5 History of Wage Adjustments (Maintenance) Table 3.6 General Fund Revenues and Expenses Table 3.7 Revenues and Expenses Total Operations Table 3.8 General Fund Revenues by Source Table 3.9 Revenue Source by Percentage of Total Table 3.10 General Fund Revenue History Figure 3.1 GF Revenue by Source Table 3.11 MCCC Tuition Rate Increases Table 3.12 Expenses by Activity Table 3.13 Percentage of Total Expense Figure 3.2 Percentage of Total Expenses Table 3.14 Expenses by Category Table 3.15 Expense by Category Percentage of Total Figure 3.3 Expense by Category Percentage of Total Table 3.16 Transfers from the General Fund Table 3.17 Unrestricted Net Position Figure 3.4 Total Unrestricted Net Position Table 3.18 Requested Renovation Projects Table 3.19 Requested Capital Outlay Table 3.20 Capital Outlay Expenditures by Area Table 3.21 Capital Outlay - Perkins Chapter 4 Table 4.1 Retirement Designated Fund Proposed Budget Chapter 5 Figure 5.1 Technology Spending Table 5.1 Designated Fund Financial History Table 5.2 Designated Fund Institutional Technology Fund Proposed Budget Table 5.3 Proposed Expenses Software and Hardware Monroe County Community College iii

5 Proposed Budget Tables and Figures Chapter 6 Table 6.1 Auxiliary Activities Fund Technology and Capital Outlay Table 6.2 Campus/Community Events Table 6.3 Auxiliary Activities Fund Proposed Budget Chapter 7 Table 7.1 Restricted Fund Proposed Budget Table 7.2 Restricted Fund Revenue Sources Chapter 8 Table 8.1 Unexpended Plant Fund Proposed Budget Table 8.2 HVAC Project Payment Schedule Chapter 9 Table Projects Table 9.2 Maintenance and Replacement Fund Proposed Budget Table 9.3 List of Maintenance and Improvement Projects Chapter 10 Table 10.1 Student Loan Fund Three Year Summary Table 10.2 Endowment Fund Three Year Summary Table 10.3 Physical Properties Fund Three Year Summary Chapter 11 Appendix A Activity Classifications General Fund Appendix B General Fund Budget Report by Cost Center Monroe County Community College iv

6 CHAPTER 1 Introduction 1 CHAPTER INTRODUCTION Monroe County Community College is a public, non-profit, higher education institution established for the residents of Monroe County. Its mission is to enrich and transform lives by providing opportunity and excellence in higher education. The College offers freshman and sophomore associate degree and certificate programs for transfer courses and career programs. It also provides training and retraining opportunities for business and industry and works to promote the educational, economic, social, and cultural well-being of Monroe County and its citizens. The academic calendar year for the College is based on semesters. There are approximately 4,000 credit and non-credit students attending the College during the fall and winter semesters. Classes are also offered during the spring and summer, but attendance is considerably less at these times. The College s fiscal year is from July 1 to June 30. In addition to various audits for grants and state programs and reporting, College financial operations are annually audited by independent auditors for federally funded programs and for the College s annual financial statements. The results of these audits have been excellent, with no major findings or exceptions. The College is part of a state-wide community college system along with 27 other community colleges; however, the policy-making body for the College is a locally elected, seven-member Board of Trustees. Among its responsibilities, the Board decides on property matters, selects the president, approves wage schedules, determines tuition rates, establishes a variety of operational policies, and adopts annual operating budgets. This publication is the administration s formal proposal to the Board for the adoption of next year s budget. Work to prepare next year s budget recommendation officially begins in December as departments and budgetary units compile their data in keeping with the College s Strategic Plan. The requests work their way to the Vice Presidents and President, and then the Board of Trustees for final approval. Many adjustments are made during this process as data is compared and reviewed and new information is received. Throughout the process, information is requested and reviewed back and forth between individual departments and the Budget Team. Special presentations on projected revenue and proposed requests are made to the Board and to the faculty and staff as needed. The result of all this planning and preparation is a proposed General Fund budget in which projected expenses match projected revenues. Monroe County Community College 1

7 CHAPTER 1 Introduction The first ten chapters of this document represent the proposed budgets for the College s General Fund, Retirement Designated Fund, Designated Fund, Auxiliary Activities Fund, Restricted Fund, Unexpended Plant Fund, Maintenance and Replacement Fund, and Other Funds (Student Loan Fund, the Endowment Fund, and the Physical Properties Fund). The appendix contains backup information on the General Fund to assist in the explanation and comparative analysis of this fund. Each back-up chapter contains similar information, usually providing a brief description of the fund, a three-year table of revenues and expenses and often some additional information related to only that fund. The majority of the College s day-to-day financial operations are reported in the General Fund, including receipt of major revenues. Chapters on other funds will include explanations and information on other activities particular to those funds, including a listing of events, funding from outside grants, and a listing of major plant projects. Through the establishment of projections, controls, and review, the annual operating budget lays the foundation for the College to fulfill its mission and strategic objectives. Suzanne M. Wetzel Vice President of Administration and Treasurer AJ Fischer Director of Financial Services Monroe County Community College 2

8 CHAPTER 1 Introduction Budget Preparation CHRONOLOGY : Departments/Divisions begin work on budget requests : Instructions and Calendar sent to all Administrators : Financial Update Meeting Update on Budget : Copies of the Project Request Forms Due to Director of Campus Planning and Facilities : Budget Requests Due to Administration Office : Grant Budgets Due to Administration Office : Special Board Meeting: Tuition Rates for Approved : Financial Update Meeting Update on Budget : Board Study Meeting Discussion of proposed Budget : Public Hearing on Budget : Board Meeting Recommended Resolution to Adopt Budget on Agenda : Financial Update Meeting Presentation of Budget to College : Fiscal Year Begins Monroe County Community College 3

9 CHAPTER 1 Introduction Fact Sheet Legal Name: The Community College District of Monroe County, Michigan. History: Curriculum: Monroe County Community College is a public two-year institution of higher education. On June 29, 1964, the College was approved by the electors of Monroe County. On July 3, 1964, the College was granted statutory authority under the provisions of Michigan s Public Act No. 188 of 1955 to function as a community college. The College offers transfer and occupational programs as well as training for business and industry and professional and personal enrichment programs through lifelong learning. Accreditation: The College is accredited by the Higher Learning Commission (HLC). The College s next Year 10 reaffirmation of accreditation visit will occur during the fiscal year. President: Board: Campus: Kojo A. Quartey, Ph.D. Dr. Quartey began at the College on August 1, 2013 and is the College s fifth president. The College has a 7 member board, all elected by voters of the College District (Monroe County, Michigan). Current members are: Joseph N. Bellino, Jr., Chair Mary Kay Thayer, Vice Chair Dr. James E. DeVries, Secretary Lynette M. Dowler, Trustee Edward R. Feldman, Trustee Aaron N. Mason, Trustee Marjorie A. Kreps, Trustee (The College s Vice President of Administration serves as Board Treasurer) The College has nine major buildings on its 208 acre Main Campus at 1555 South Raisinville Road and one major building at its 25 acre Whitman Center at 7777 Lewis Avenue in Bedford Township. The College s acre property located at 1004 West Hurd Road in Frenchtown Township is being sold with the sale anticipated to close in July Fiscal Year: July 1 through June 30 Funding Sources: The College is supported by property tax monies from Monroe County, annual appropriations from the State of Michigan, and revenue received from student tuition and fees. The mix is approximately percent, percent, and percent, respectively. The original voted millage rate for operations was 1.25 mils. In August 1980 the Monroe County electorate increased this to 2.25 mils; however, tax revenue from the voter-approved 2.25 mills of taxes for operations are limited to mils by the Monroe County Community College 4

10 CHAPTER 1 Introduction Headlee calculations. Taxes are also limited due to numerous tax increment financing plans and abatements approved by the cities and townships, Board of Review adjustments, and Michigan Tax Tribunal judgments. The College has no bonded indebtedness; however, the College now as a long-term debt obligation for the HVAC project. Enrollment Credit Credit Hours Credit Hours Credit Hours Billable Contact Hours Billable Contact Hours Billable Contact Hours Headcount Headcount Headcount Summer ,189 1,442 1,734 1,227 1,483 1,830 Fall 3,192 3,482 3,777 27,011 29,571 32,814 30,957 33,555 36,982 Winter 3,012 3,266 3,592 24,423 27,193 30,252 28,305 31,427 34,743 Spring ,006 3,265 3,821 4,365 3,720 4,307 5,055 Totals: 7,344 8,043 8,854 55,888 62,027 69,165 64,209 70,772 78,610 Table 1.1 Enrollment Non-Credit (Revised 6/17/16) Total Enrollment Fall 2015 Winter 2016 Spring/Summer 2016* Annual Totals* Unduplicated Headcount Total Contact Hours Total Enrollment Unduplicated Headcount Total Contact Hours LL Learnng: Main 745 X 8, X 10, X 7, ,119 X 26, LL Learning: Whitman 22 X X X - 40 X LL Learning: Online 33 X 5, X 4, X X 10, LL Learning: Off Campus 9 X X X X Contracted Training 121 X 1, X 3, X 1, X 7, B & I Training 191 X 2, X 1, X 5, X 9, Total 1, , , , , ,618 2,026 54, Total Enrollment Unduplicated Headcount Total Contact Hours Total Enrollment Unduplicated Headcount Total Contact Hours Spring/Summer enrollments incomplete (as of 6/17/16) Table 1.2 Monroe County Community College 5

11 CHAPTER 1 Introduction Staffing Levels Budgeted Staffing Levels₁ Budgeted Staffing Levels₁ Budgeted Staffing Levels₁ Positions on Org. Chart not funded in Budget Full-time Faculty Full-time Support Staff Full-time Professional Staff Full time Administrators₂ Full-time Maintenance Total Full-time Positions Adjunct Faculty 161₃ 129₄ TBD Part-time Support Staff Student Assistants 97₃ 79₄ TBD ₁Includes grant funded positions ₂Does not include President ₃Winter 2015 Active Positions ₄Winter 2016 Paid Employees Table 1.3 Full-time Positions on Organizational Chart not funded in Budget Classification Title Faculty Professor of Counseling Faculty Professor of English Faculty Professor of Computer Information Systems Support Staff Coordinator of Grants and Major Gifts Administrator Dean of Corporate and Community Services Administrator Director of Whitman Center Maintenance General Maintenance Worker Table 1.4 Monroe County Community College 6

12 CHAPTER 1 Introduction Mission Documents Mission: Monroe County Community College enriches and transforms lives by providing opportunity and excellence in higher education. Vision: Monroe County Community College will be an innovative and progressive higher education institution and our community s first choice for quality post-secondary education. Core Values: Monroe County Community College is dedicated to these core values Comprehensive educational offerings Instructional excellence Transformational learning Cultivation of informed and participating citizens Entrepreneurial and responsive leadership to community needs Cultural enrichment Affordability Accessibility Valuing human diversity Ethical integrity Accountability to students and stakeholders A source of pride for the residents of Monroe County Educational Objectives: MCCC provides higher educational opportunities to the community through 1. Offering freshman and sophomore college level programs in the liberal arts, sciences, and pre-professional fields for students who plan to transfer to four-year colleges and universities; 2. Offering one- and two-year occupational and/or career programs for students preparing for employment in technical, business, or health-related fields; 3. Providing general education courses and experiences integrated throughout the curriculum which will enable students to write and communicate effectively, utilize mathematics, and employ appropriate methods of critical thinking and problem solving; 4. Providing intellectual, cultural, and personal development for adults in a wide range of lifelong learning opportunities; 5. Working with governmental agencies and employers to develop training and retraining programs to meet the needs of an evolving economy; 6. Providing a strong complement of comprehensive support services to assist students in pursuit of their educational goals; 7. Collaborating with school systems, civic groups, educational institutions, individuals, employers, and other constituencies to offer educational services and opportunities. Monroe County Community College 7

13 CHAPTER 1 Introduction Strategic Plan Strategic Initiative #1 Educational Excellence The core of MCCC s mission is to provide educational excellence by facilitating high-quality teaching and learning. To this purpose, the following strategies have been identified: Instructional Excellence Develop and Facilitate effective pedagogical practices. Student Services Provide wraparound services to support student success and assist students with challenges they encounter while pursuing their goals. Higher Educational Opportunities Support and develop a wide variety of educational opportunities. Campus Environment Continue to develop and maintain a safe, accessible, welcoming and student-focused learning environment. Diversity Expose learners to diversity. Technology Provide and promote the use of technology. Strategic Initiative #2 Evidenced-based Culture In support of MCCC s mission, create an evidence-based culture by committing to data-driven planning, evaluation and decision making. To this purpose, the following strategies have been identified. Planning Gather data as evidence to establish institutional strategic planning priorities. Assessment Establish processes that will provide reliable evidence of student learning. Evaluation Implement valid and reliable methods for evaluating performance across all areas, departments and divisions. Strategic Initiative #3 Resource Management Sound resource management will play a critical role in supporting MCCC s Mission. To this purpose, the following strategies have been identified. Integrity Support transparency, disclosure, stewardship and understanding of resource management. Physical Resources Effectively utilize and maintain current facilities while continuously assessing future need. Accessibility Maintain an affordable tuition rate, and promote, create, and expand scholarship opportunities and financial aid programs. Human Resources Attract, support and retain a highly-qualified and diverse workforce. Financial Resources Effectively manage college financial resources and pursue alternative funding. Monroe County Community College 8

14 CHAPTER 1 Introduction Strategic Initiative #4 Governance The governance practices of MCCC are essential to fulfilling its mission. To this purpose, the following strategies have been identified. Shared Governance Evaluate the college governance system to ensure two-way communication and accountability in decision making. Communication Disseminate information through an inclusive communication model. Transparency Embrace a decision-making model that fosters transparency, trust and accountability. Engagement Increase participation by all stakeholders in the governance process. Strategic Initiative #5 Partnerships In support of MCCC s mission, the college will seek opportunities to increase collaborative partnerships with the community. To this purpose, the following strategies have been identified. Community Engagement Establish pathways to increase collaboration. Service Learning Provide learning opportunities that promote volunteerism and community service. Accountability Demonstrate ways the college responds to the community s learning needs. Monroe County Community College 9

15 CHAPTER 2 Proposed Budget 2 CHAPTER PROPOSED BUDGET FUND DEFINITIONS General Fund Used to record and report transactions related to academic and instructional programs and their administration. Retirement Designated Fund Used to record and report the MPSERS UAAL (Unfunded Actuarial Accrued Liability) Rate Stabilization and the College s proportional share of the MPSERS net pension liability. Designated Fund Used to record and report the cost of campus technology equipment and software. Auxiliary Fund Used to account for transactions of those activities that deliver a product or perform a service to students, community, or staff and are essential elements in support of the educational program (bookstore, food service, childcare, campus/community events). Restricted Fund Used to account for transactions resulting from revenues received by the College from outside donors or agencies, in which the College does not have absolute control over the expenses (Federal, state, and other grants and gifts). Student Loan Fund Used to account for loans made to students to assist them in meeting various college expenses including both restricted and unrestricted student loans. Endowment Fund Used to account for gifts of which the principal may not be expended. Two types of endowments are reported in this fund: true endowments (principal must stay intact) and quasi-endowments. Unexpended Plant Fund Used to account for the construction of new facilities. Maintenance and Replacement Fund Used to account for major repairs and maintenance of College facilities. Physical Properties Fund Used to account for the value of all land, land improvements, buildings, building improvements, and equipment owned by the College. This fund is used to capitalize and depreciate these assets. Monroe County Community College 10

16 CHAPTER 2 Proposed Budget PROPOSED BUDGET Unexpended Plant Fund Maintenance & Replacement Fund General Fund Retirement Designated Fund Designated Fund Auxiliary Fund Restricted Fund Loan Fund Endowment Fund Physical Properties Total Revenue Tuition and fees $ 8,519,450 $ 1,226,280 $ (2,830,000) $ 6,915,730 Property taxes $ 12,400,000 $ 12,400,000 State appropriations $ 4,676,700 $ 1,400,000 $ 6,076,700 State capital appropriations $ - Federal grants $ 4,865,000 $ 4,865,000 State grants $ 90,000 $ 90,000 Auxiliary sales and services $ (10,000) $ 1,417,300 $ (410,000) $ 997,300 Gifts - Capital Campaign $ 150,000 $ 150,000 Other $ 261,650 $ 244,000 $ 500 $ 316,755 $ 10,000 $ 832,905 Total Revenue $ 25,847,800 $ 1,400,000 $ 1,226,280 $ 1,417,300 $ 1,959,000 $ 500 $ 316,755 $ 10,000 $ 150,000 $ - $ 32,327,635 Expenses Instruction $ 11,433,635 $ 659,394 $ 227,555 $ 220,000 $ (205,000) $ 12,335,584 Information Technology $ 1,148,064 $ 69,238 $ 820,664 $ 2,000 $ (260,000) $ 1,779,966 Public Service $ 195,677 $ 12,289 $ 2,000 $ 107,000 $ 36,000 $ 352,966 Instructional Support $ 3,534,796 $ 218,969 $ 129,364 $ 78,000 $ (30,000) $ 3,931,129 Student Services $ 2,701,555 $ 155,468 $ 28,890 $ 1,216,550 $ 1,590,000 $ 500 $ 5,692,963 Administration $ 3,212,840 $ 160,543 $ 28,319 $ 29,500 $ 16,380 $ (5,200) $ 3,442,382 Physical Plant $ 3,321,233 $ 124,099 $ 30,878 $ 6,000 $ 10,030,610 $ 468,870 $ (10,036,309) $ 3,945,381 Depreciation $ 1,900,000 $ 1,900,000 Total Expenses $ 25,547,800 $ 1,400,000 $ 1,267,670 $ 1,323,550 $ 1,961,500 $ 500 $ 16,380 $ 10,030,610 $ 468,870 $ (8,636,509) $ 33,380,371 Revenue over/(under) expenses $ 300,000 $ - $ (41,390) $ 93,750 $ (2,500) $ - $ 300,375 $ (10,020,610) $ (318,870) $ 8,636,509 $ (1,052,736) Transfers Transfer In $ 2,500 $ 800,000 $ 13,355 $ 815,855 Tranfer Out $ 800,000 $ 2,500 $ 13,355 $ 815,855 Net Transfers $ (800,000) $ - $ - $ (2,500) $ 2,500 $ - $ (13,355) $ 800,000 $ 13,355 $ - $ - Net Increase/(Decrease) $ (500,000) $ - $ (41,390) $ 91,250 $ - $ - $ 287,020 $ (9,220,610) $ (305,515) $ 8,636,509 $ (1,052,736) Projected Net Position 6/30/16 $ 5,500,687 $ (29,467,803) $ 269,638 $ 1,149,602 $ 143,684 $ 18,066 $ 246,329 $ (5,966,356) $ 449,532 $ 41,263,354 $ 13,606,733 Projected Net Position 6/30/17 $ 5,000,687 $ (29,467,803) $ 228,248 $ 1,240,852 $ 143,684 $ 18,066 $ 533,349 $ (15,186,966) $ 144,017 $ 49,899,863 $ 12,553,997 Table 2.1 Monroe County Community College 11

17 CHAPTER 3 General Fund 3 CHAPTER GENERAL FUND General Comments The College s General fund is used to record and report transactions related to academic and instructional programs and their administration. Activities necessary for providing this service are grouped into seven classifications: Instruction, Information Services, Public Service, Instructional Support, Student Services, Institutional Administration, and Physical Plant Operations. The primary revenue sources that provide funding for these activities are tuition, property taxes, and state appropriations. A combination of increases and decreases has resulted in a 1.19 percent decrease in General Fund revenues for next year when compared to the budgeted revenues. However, when comparing projected revenues to budgeted revenues, it results in a 1.17 percent increase in General Fund revenues for next year. Tuition and Fees Audited Budget Projected Projected vs. Budget Budget Budget vs. Projected 8,767,177 8,938,750 8,438,000 (500,750) 8,519,450 81,450 Property Taxes 11,968,333 12,400,000 12,300,000 (100,000) 12,400, ,000 State Appropriations* 5,533,326 4,605,600 4,605, ,676,700 71,100 Other 200, , ,000 (8,450) 251,650 46,650 TOTAL REVENUE 26,469,039 26,157,800 25,548,600 (609,200) 25,847, ,200 * Audited includes State Appropriation for UAAL Rate Stabilization ($997,337) Table 3.1 Monroe County Community College 12

18 CHAPTER 3 General Fund Tuition and fee revenue is budgeted to increase.97 percent (as compared to projected actual revenue) due to an approximate 5 percent tuition rate increase approved by the Board in April However, billable contact hours are projected to decline 5 percent. Property tax values are basically flat in Monroe County and as a result, property tax revenues are budgeted at the exact same amount as budgeted in FY and state appropriations are expected to increase by 1.5 percent ($71,100). Table 3.2 demonstrates the annual percentages each revenue source represents of total General Fund revenues over 23 years. Requested expenses in next year s General Fund budget represent a 1.8 percent decrease over the current year s budgeted expenses. There are seven full-time positions at the College that are on the organizational chart but are not being filled during the fiscal year: Professor of Counseling, Professor of English, Professor of Computer Information Systems, Coordinator of Grants and Major Gifts, Dean of Corporate and Community Services, Director of the Whitman Center, and General Maintenance Worker. In total, Table 3.2 General Fund Revenues Percentage of Total FY T & F Taxes State Other Total % 56.9% 20.0% 2.6% 100.0% % 56.8% 20.5% 2.5% 100.0% % 55.7% 21.3% 3.2% 100.0% % 55.4% 21.8% 3.3% 100.0% % 55.6% 21.7% 3.0% 100.0% % 54.4% 22.3% 3.9% 100.0% % 54.3% 23.7% 2.8% 100.0% % 54.5% 23.1% 1.9% 100.0% % 55.6% 21.9% 1.6% 100.0% % 56.4% 19.4% 1.2% 100.0% % 55.2% 19.1% 1.8% 100.0% % 55.3% 17.7% 2.6% 100.0% % 55.3% 17.7% 2.6% 100.0% % 54.0% 17.7% 2.5% 100.0% % 54.3% 16.4% 1.4% 100.0% % 50.9% 15.9% 0.9% 100.0% % 48.5% 16.1% 1.0% 100.0% % 47.6% 16.1% 0.9% 100.0% % 45.6% 16.7% 1.0% 100.0% % 45.1% 18.6% 1.0% 100.0% % 47.0% 17.8% 0.8% 100.0% 15-16* 34.2% 47.4% 17.6% 0.8% 100.0% 16-17* 33.0% 48.0% 18.0% 1.0% 100.0% *Budgeted ** Budgeted and adjusted to remove UAAL the budget includes a full-time employee workforce reduction of 2 FTE (full-time equivalent). The proposed budget includes, per the Agreement with the MCCC Maintenance Association, a 1 percent increase in the maintenance employees compensation. A 1 percent increase is being proposed to the salary schedules for the administrators, professional staff, support staff, part-time support staff, and adjunct faculty. In addition, full-time administrators, professional staff, and support staff who are eligible would receive step advances. There are no salary adjustments for full-time faculty included in the budget as the current Master Agreement expires on August 23, 2016, and a new Master Agreement is currently being negotiated. Student assistant wages are budgeted at minimum wage which will increase in January The following tables illustrate the wage adjustments by employee group from through : Monroe County Community College 13

19 CHAPTER 3 General Fund Management Salary Schedule FY Steps Percentage Off-Schedule Salary Schedule Freeze Professional Staff FY Steps Percentage Off-Schedule Salary Schedule Freeze X 3% New X 3% X X X 1% X $500 X X $500 X X 1%** X X $500* X X 1% X 1% Note: Employee group created in January 2012 (Steps not given in ) X X 1%** X X 1% Support Staff FY Steps Percentage Off-Schedule Salary Schedule Freeze Part-time Support Staff FY Percentage Off-Schedule Salary Schedule Freeze X 3% % X 3% % X X X $500 X $250/$125 X $500 X $250/$125 X X $500* X $250/$125 X X 1% % X X X 1% % X 1% % * $500 Off-Schedule to full-time employees at top step of salary schedule ** 1% Off-Schedule to full-time administrators/professional staff at 12th step; excludes VPs Table 3.3 Full-time Faculty FY Steps Percentage Off-Schedule Salary Schedule Freeze X-Contr. Rate Teaching X-Contr. Rate Stu. & Info. Serv. Spr/Sum X- Contr. Rate Teaching Spr/Sum X- Contr. Rate Stu. & Info. Serv. Drama (per semester) Agora (per semester) Literary Arts Mag. Club Advisors X 3% $60.63 $34.80 $60.63 $34.80 $1, $ $ $1, X 3% $62.45 $35.84 $62.45 $35.84 $1, $ $ $1, X 3% $64.32 $36.92 $64.32 $36.92 $1, $ $ $1, X 3% $66.25 $38.03 $66.25 $38.03 $1, $ $ $1, X $500* X $66.25 $38.03 $66.25 $38.03 $1, $ $ $1, X $1,000* X $66.25 $38.03 $66.25 $38.03 $1, $ $ $1, X $500* X $66.25 $38.03 $66.25 $38.03 $1, $ $ $1, X 1% $500 $66.91 $38.41 $66.91 $38.41 $1, $ $ $1, X 1% $67.58 $38.79 $67.58 $38.79 $1, $ $1, $1, X 1% $68.26 $39.18 $68.26 $39.18 $1, $ $1, $1, * Off-Schedule paid to faculty members on Step 12 of salary schedule Table 3.4 Monroe County Community College 14

20 CHAPTER 3 General Fund Maintenance Staff FY Steps Percentage Off-Schedule Hourly Rate Freeze NA 3% NA X NA X NA $500 X NA $500 X NA $500 X NA 1% $ NA 1% $ NA 1% Table 3.5 As has become the norm, during , the organization was analyzed and a number of changes were made in how the college is organized and staffed. In order to balance the budget, numerous cuts and adjustments were made throughout the various cost centers and activities. While the budget does include one renovation project and some capital outlay purchases, they are limited and do not address all of the identified needs. As proposed, the budget still does not address all of the needs that currently exist including the ability to add new programs and services and address new demands. The budget includes a recommended transfer to the Unexpended Plant Fund of $800,000. The transfer represents $300,000 from estimated General Fund revenues and, pending the audit results,$500,000 from additions to unrestricted net position resulting from revenues being greater than expenses. The General Fund does not reflect all of the College s expenditure needs. The Technology Fund and the Maintenance and Replacement Fund must always be considered within this analysis. The Technology Fund receives funding from the Technology Fee charged per billable contact hour. The Maintenance and Replacement Fund does not have a revenue source except for funding transferred from the General Fund (and gift revenues from the CTC Campaign). In addition, the College now as a long-term debt obligation for the HVAC project. Interest and principal payments in FY will total $1,004, (See Table 8.2 for the complete payment schedule). In order to meet cash flow needs in November and December of each year, the College continues to borrow shortterm Tax Anticipation Notes in October. It is anticipated that this will again be necessary in FY Following is a summary of next year s proposed General Fund budget, which indicates that projected expenses will be equal to projected revenues and that the revenues greater than expenditures. In addition, it is recommended that any additions to unrestricted net position following the audit be transferred to the Unexpended Plant Fund to be used for payments on the HVAC project loans. Monroe County Community College 15

21 CHAPTER 3 General Fund GENERAL FUND REVENUES AND EXPENSES Table to Budget Budget Difference Revenue: $ % Tuition & Fees $ 8,938,750 $ 8,519,450 $ (419,300) -4.69% Property Taxes 12,400,000 12,400, % State Appropriation* 4,605,600 4,676,700 71, % Investment Income 6,500 5,200 (1,300) % Other 206, ,450 39, % Total $ 26,157,800 $ 25,847,800 $ (310,000) -1.19% Expenses: Full-time Faculty $ 5,252,406 $ 5,138,689 $ (113,717) -2.17% Extra-contractual Faculty 711, ,513 (36,977) -5.20% Part-time Faculty 1,722,745 1,741,491 18, % Faculty Wages $ 7,686,641 $ 7,554,693 $ (131,948) -1.72% Administration 2,521,124 2,565,472 44, % Professional Staff 278, ,307 16, % Support Staff 2,566,325 2,664,975 98, % Maintenance 922, ,320 3, % Student Assistants 176, ,454 21, % Opt Out 24,000 19,500 (4,500) -18.8% Total Wages $ 14,175,786 $ 14,224,721 $ 48, % Fringe Benefits 6,972,496 6,976,007 3, % Total Wages & Fringes $ 21,148,282 $ 21,200,728 $ 52, % Services 915, ,539 (64,657) -7.06% Supplies 1,434,952 1,222,139 (212,813) % Rent/Utilities/Insurance 1,133,432 1,127,462 (5,970) -0.53% Other 1,031,077 1,002,557 (28,520) -2.77% Capital Outlay 302,373 74,375 (227,998) % Contingency 50,000 70,000 20, % Total Expenses $ 26,015,312 $ 25,547,800 $ (467,512) -1.80% Transfers In Transfers Out 942, ,000 (142,488) Total Expenses & Transfers $ 26,957,800 $ 26,347,800 $ (610,000) -2.26% Revenue Greater / (Less) Than Expenses & Transfers $ (800,000) $ (500,000) * and State Appropriations excludes UAAL of $1,200,000 and $1,400,000 respectively Monroe County Community College 16

22 CHAPTER 3 General Fund REVENUES AND EXPENSES TOTAL OPERATIONS (Does Not Include Transfers) FY G/F TECH M&R TOTAL Revenues Expenses 22,158,528 20,722, , , ,314 1,653,849 22,646,266 22,710,030 R E 1,436,164 3,607 (1,503,535) (63,764) Revenues Expenses 22,805,372 21,642, , , ,039 1,580,325 23,316,541 23,816,469 R E 1,163,102 (247,744) (1,415,286) (499,928) Revenues Expenses 24,954,789 23,457, , , , ,779 25,619,790 25,164,700 R E 1,496,810 (209,917) (750,803) 455, Revenues Expenses 25,250,192 24,974, , ,268 98, ,121 25,873,627 26,665,253 R E 275,328 (277,678) (789,276) (791,626) Revenues Expenses 25,993,591 24,731, , ,528 45,170 1,200,238 26,650,403 26,496,196 R E 1,262,161 47,114 (1,155,068) 154, Revenues Expenses 25,747,947 25,389, , ,975 25, ,474 26,365,114 27,014,521 R E 358,875 (363,852) (644,430) (649,407) Revenues Expenses 25,499,175 25,564, , ,107 3, ,413 26,044,027 26,327,744 R E (65,049) 76,834 (295,502) (283,717) Revenues Expenses 25,842,937 25,530, , , , ,024 26,784,423 26,618,617 R E 312,353 45,477 (192,024) 165, Revenues Expenses 26,678,371 26,138, , , , ,928 27,908,947 27,477,355 R E 539,537 1,983 (109,928) 431, Revenues Expenses 26,469,039 25,330, , , , ,903 27,911,129 26,579,006 R E 1,138,604 35, ,097 1,332, * Revenues Expenses 26,157,800 26,015,312 1,342,862 1,379, , ,000 27,925,662 28,074,630 R E 142,488 (36,456) (255,000) (148,968) 16-17* Revenues Expenses 25,847,800 25,547,800 1,226,280 1,267, , ,870 27,224,080 27,284,340 R E 300,000 (41,390) (318,870) (60,260) *Note: FY and FY are budget amounts Table 3.7 Monroe County Community College 17

23 CHAPTER 3 General Fund GENERAL FUND REVENUE BY SOURCE Revenues Increase / Actual Budget Proposed (Decrease) % Change Tuition & Fees $ 8,767,177 $ 8,938,750 $ 8,519,450 $ (419,300) -4.69% Property Taxes 11,968,333 12,400,000 12,400, % State Appropriations 4,535,989 4,605,600 4,676,700 71, % State Appropriations - UAAL 997, % Other 200, , ,650 38, % Totals: $ 26,469,039 $ 26,157,800 $ 25,847,800 $ (310,000) -1.19% Table 3.8 REVENUE SOURCE BY PERCENTAGE OF TOTAL Revenues Actual Budget Proposed Tuition & Fees 33.12% 34.17% 32.96% Property Taxes 45.22% 47.40% 47.97% State Appropriations 17.14% 17.61% 18.09% State Appropriations - UAAL 3.77% 0.00% 0.00% Other 0.76% 0.82% 0.97% % % % Table 3.9 Monroe County Community College 18

24 CHAPTER 3 General Fund The following table offers an analysis of the College General Fund revenue history. GENERAL FUND REVENUE HISTORY YEAR T & F TAXES STATE OTHER TOTAL ,767,177 11,968,333 5,533, ,203 26,469, ,408,614 12,025,044 4,970, ,900 26,678, ,402,222 11,672,059 4,525, ,342 25,842, ,015,089 12,134,618 4,094, ,468 25,499, ,866,987 12,474,876 4,143, ,203 25,747, ,388,824 13,234,336 4,143, ,562 25,993, ,060,488 13,698,173 4,143, ,651 25,250, ,445,359 13,468,676 4,418, ,854 24,954, ,895,887 12,864,794 3,313, ,191 22,805, ,415,485 12,259,020 3,922, ,923 22,158, ,063,807 11,684,119 4,049, ,498 21,173, ,582,859 11,244,481 3,855, ,846 19,917, ,113,045 10,939,319 4,305, ,728 19,678, ,959,052 10,518,389 4,462, ,696 19,305, ,537,634 10,037,409 4,378, ,321 18,478, ,482,756 9,838,512 4,008, ,032 18,020, ,330,164 9,390,077 3,664, ,131 16,897, ,166,654 8,970,521 3,534, ,791 16,200, ,058,341 8,588,273 3,279, ,700 15,408, ,942,789 8,337,066 3,015, ,986 14,698, ,791,235 7,767,911 2,731, ,262 13,641, ,698,031 7,830,308 2,644, ,001 13,443, ,510,835 7,520,854 2,587, ,086 12,930, ,145,950 7,387,254 2,736, ,018 12,580, ,753,745 6,981,544 2,270, ,039 11,363, ,591,282 6,542,416 2,225, ,311 10,741, ,369,865 6,256,248 2,019, ,416 9,985, ,347,578 5,992,466 1,953, ,377 9,617, ,183,986 5,598,548 1,836, ,093 8,938, ,117,012 5,041,087 1,705, ,367 8,154, ,163,861 4,803,871 1,556, ,636 7,857, ,144,236 4,562,125 1,429, ,697 7,431, ,121,179 4,362,457 1,276, ,276 7,013, ,211 4,079,066 1,275, ,912 6,523, ,561 3,525,398 1,310, ,712 5,908, ,369 1,765,876 1,409, ,004 4,109,821 Monroe County Community College 19

25 CHAPTER 3 General Fund YEAR T & F TAXES STATE OTHER TOTAL ,305 1,562,838 1,284, ,334 3,768, ,461 1,390,090 1,155, ,595 3,519, ,093 1,345,478 1,051, ,011 3,304, ,828 1,235, , ,897 3,026, ,506 1,114, , ,300 2,783, , , , ,428 2,382, , , , ,479 2,176, , , , ,763 2,126, , , ,752 91,445 1,855, , , , ,547 1,856, , , ,199 91,922 1,420, , , ,865 51,320 1,026, , , ,160 53, , , , , , ,410 Table 3.10 Figure 3.1 Monroe County Community College 20

26 CHAPTER 3 General Fund GENERAL FUND REVENUES Tuition and Fees Tuition and fees revenue represents tuition from both credit classes and non-credit classes such as lifelong learning courses and the contracted training conducted for business and industry. Fee revenue is generated by charges for such items as lab materials, transcripts and registration fees. The four academic semesters in the College s next fiscal year are: Summer 2016, Fall 2016, Winter 2017, and Spring The College s Board of Trustees has the sole right and responsibility to set and change tuition rates for the College. The Board has always made a concerted and earnest effort to maintain the affordability for both current and future students attending MCCC. A tuition and fee revenue amount of $8,519,450 is being projected for next year s budget. This represents a decrease of $419,300 or 4.69 percent as compared to the current year s budget. When compared to projected tuition and fee revenue, this is a $81,450 increase or a.97 percent increase over the current year. The business office is projecting a 5 percent decrease in credit enrollment in On April 4, 2016, the Board of Trustees approved a percent increase for resident tuition rates, a percent increase for non-resident rates, and an percent increase for out-of-state rates. Table 3.8 shows the rate increases over the past fifteen years for credit classes for the three tuition rate categories: resident (property owned in Monroe County); non-resident (residing in the state of Michigan, but outside of Monroe County); and out-of-state (residing outside of Michigan). MCCC TUITION RATE INCREASES Beginning Resident Non-Resident Out-of-State Fall 2002 $51 (+$3 = 4.1%) $84 (+$3 = 3.7%) $92 (+$3 = 3.4%) Fall 2003 $53 (+$2 = 3.9%) $87 (+$3 = 3.7%) $95 (+$3 = 3.3%) Fall 2004* $54 (+$1 = 1.9%) $92 (+$5 = 5.7%) $101 (+$6 = 6.3%) Fall 2005 $58 (+$4 = 7.4%) $98 (+$6 = 6.5%) $108 (+$7 = 6.9%) Fall 2006 $60 (+$2 = 3.4%) $104 (+$6 = 6.1%) $115 (+$7 = 6.5%) Fall 2007 $64 (+$4 = 6.7%) $110 (+$6 = 5.8%) $122 (+$7 = 6.1%) Fall 2008 $67 (+$3 = 4.7%) $115 (+$5 = 4.6%) $128 (+$6 = 4.9%) Fall 2009** $67 $115 $128 Fall 2010 $72 (+$5 = 7.5%) $124 (+$9 = 7.9%) $138 (+$10 = 7.9%) Fall 2011 $77 (+$5 = 7.0%) $132 (+$8 = 6.5%) $147 (+$9 = 6.5%) Fall 2012 $84 (+$7 = 9.1%) $144 (+$12 = 9.1%) $160 (+$13 = 8.85%) Fall 2013 $92 (+$8 = 9.5%) $158 (+$14 = 9.7%) $176 (+$16 = 10%) Fall 2014 $95 (+$3 = 3.3%) $163 (+$5 = 3.2%) $181 (+$6 = 3.4%) Fall 2015 $102 (+$7 = 7.37%) $177 (+$14 = 8.59%) $197 (+$16 = 8.84%) Fall 2016 $107 (+$5 = 4.9%) $186 (+$9 = 5.09%) $207 (+$10 = 5.08%) *Year of State tuition restraint incentive; **Conversion from credit hour to billable contact hour basis Table 3.11 Monroe County Community College 21

27 CHAPTER 3 General Fund State Appropriations In FY , MCCC s state funding represented 23.7 percent of the total General Fund revenues. In the FY budget, state appropriations represent 18 percent of total General Fund revenues. While MCCC may never see a return to the level reached in FY , the FY budget includes an anticipated increase of 1.54 percent in state funding for operations which equates to $71,100. State funding for community colleges for next year as approved allocates a 1.6 percent increase to MCCC over FY appropriations. This increase is slightly above the 1.4 percent average increase for Michigan community colleges in FY Beginning in 2012, Public Act 300 instituted several reforms to the Michigan Public School Employees Retirement System (MPSERS), one of which was to cap the employer s share of the Unfunded Actuarial Accrued Liability (UAAL) on reported payroll at percent. As a result, per section 147c of the Education Omnibus Budget, the balance of retirement cost are funded with state appropriations, referred to as MPSERS UAAL Rate Stabilization payments. These funds are allocated and distributed to the College on a monthly basis, and in turn, the College is invoiced monthly by the Office of Retirement Services and pays these funds to the retirement system. The UAAL Rate Stabilization funds have been removed from the General Fund are now being recorded in the Retirement Designated Fund. The anticipated UAAL revenues and expenditures allocation for is $1.4 million. The UAAL Rate Stabilization Rates for the College were $589,099 in , $997,337 in , and $1,236,589 in Property Taxes For Monroe County Community College, the taxation district is Monroe County. As such, all millage elections for the College must be approved by the county electorate. In 1964, county voters approved a 1.25 mill levy to create the College. In 1980, a 1 mill increase was approved. The rate remained at 2.25 mills until 1994 when revised tax legislation (the Headlee Amendment) introduced a rollback provision. Such rollbacks are calculated annually and are required when the increase in adjusted property tax values exceed the rate of inflation. The current millage rate for the College is mills, and the 2.25 millage rate can only be reinstated by a vote of the Monroe County electorate. In November of 2014, Monroe County residents were asked to approve an additional 1 mill property tax levy in support of College operations. The millage request was denied. In November 2016, the College will request voter approval for a.95 mill property tax levy for a period of 5 years to be used for critical maintenance and renovation projects. For the fiscal year, no increase in property tax revenues is projected. While it appears that property values in Monroe County have stabilized, the property tax revenues are approximately $1.3 million less than the property tax revenues received by the College in (the peak year for MCCC property tax revenues). Monroe County Community College 22

28 CHAPTER 3 General Fund Other Income The budget includes a percent increase ($39,500) in Other Income due to additional rental income. On July 1, 2016, rental agreements with the Monroe County Intermediate School District s Head Start Program and with Spring Arbor University will begin. The Head Start Program is leasing the College s former Child Care Center in the Welch Health Education Building and Spring Arbor University is leasing office and classroom space at the Whitman Center. Other Income represents revenue generated by the following activities: Other Revenue: Grant Reimbursements 17,000 - Indirect Cost Recoveries 20,000 25,000 Culinary Sales 15,000 15,000 Non-Tuition Fees and Fines 6,750 3,750 Rent of Facilities and Land 123, ,000 Alumni Dues and Events 9,700 9,500 Other Events and Workshops 11,000 8,500 Bookstore Scholarship (10,000) (10,000) Miscellanenous 14,500 11, , ,450 Monroe County Community College 23

29 CHAPTER 3 General Fund GENERAL FUND EXPENSES The following pages outline expenses by activity, expenses by category, renovation projects, and capital outlay purchases. GENERAL FUND EXPENSES BY ACTIVITIES to Actual Actual Budget Proposed Difference Expenses $ % Instruction $ 12,082,535 $ 11,921,754 $ 12,050,668 $ 11,433,635 $ (617,033) -5.12% Information Technology 1,096,071 1,050,491 1,073,427 1,148,064 74, % Public Service 200, , , ,677 28, % Instructional Support 3,653,835 3,457,716 3,499,451 3,534,796 35, % Student Services 2,687,436 2,714,000 2,558,084 2,701, , % Institutional Administration 3,111,809 2,936,249 3,167,565 3,212,840 45, % Physical Plant Operations 3,306,595 3,048,006 3,498,811 3,321,233 (177,578) -5.08% Total Expenses $ 26,138,834 $ 25,330,435 $ 26,015,312 $ 25,547,800 $ (467,512) -1.80% Transfer from Auxiliary Fund $ - $ (20,286) $ - $ - $ - Transfer to Unexpended Fund , , ,000 Transfers to Restricted Fund ,000 - (1,000) Transfers to M&R ,488 - Total Transfers to and (from) funds $ 547 $ (19,642) $ 942,488 $ 800,000 $ (142,488) Total Expenses and Transfers $ 26,139,381 $ 25,310,793 $ 26,957,800 $ 26,347,800 $ (610,000) -2.26% Table 3.12 Monroe County Community College 24

30 CHAPTER 3 General Fund PERCENTAGE OF TOTAL EXPENSES Actual Budget Proposed Instruction 47.06% 46.32% 44.75% Information Technology 4.15% 4.13% 4.49% Public Service 0.80% 0.64% 0.77% Instructional Support 13.65% 13.45% 13.84% Student Services 10.71% 9.83% 10.57% Institutional Administration 11.59% 12.18% 12.58% Physical Plant Operations 12.03% 13.45% 13.00% Total % % % Table 3.13 Figure 3.2 Monroe County Community College 25

31 CHAPTER 3 General Fund GENERAL FUND EXPENSES BY CATEGORY to Actual Budget Budget Difference Expenses $ % Full-time Faculty $ 5,335,600 $ 5,252,406 $ 5,138,689 $ (113,717) -2.17% Extra-contractual Faculty 722, , ,513 (36,977) -5.20% Part-time Faculty 1,541,209 1,722,745 1,741,491 18, % Faculty Wages $ 7,598,970 $ 7,686,641 $ 7,554,693 $ (131,948) -1.72% Administration 2,519,027 2,521,124 2,565,472 44, % Professional 188, , ,307 16, % Support Staff 2,512,663 2,566,325 2,664,975 98, % Maintenance 886, , ,320 3, % Student Assistants 176, , ,454 21, % Opt Out 23,755 24,000 19,500 (4,500) % Total Wages $ 13,906,145 $ 14,175,786 $ 14,224,721 $ 48, % Fringe Benefits 7,639,407 6,972,496 6,976,007 3, % Total Wages & Fringes $ 21,545,553 $ 21,148,282 $ 21,200,728 $ 52, % Services 819, , ,539 (64,657) -7.06% Supplies 1,201,968 1,434,952 1,222,139 (212,813) % Rents/Utilities/Insurances 893,260 1,133,432 1,127,462 (5,970) -0.53% Other 870,033 1,031,077 1,002,557 (28,520) -2.77% Capital Outlay - 302,373 74,375 (227,998) % Contingency - 50,000 70,000 20, % Total Expenses $ 25,330,435 $ 26,015,312 $ 25,547,800 $ (467,512) -1.80% Net Transfers (19,642) 942, ,000 (142,488) Total Expenses and Transfers $ 25,310,793 $ 26,957,800 $ 26,347,800 $ (610,000) -2.26% Table 3.14 Monroe County Community College 26

32 CHAPTER 3 General Fund EXPENSE BY CATEGORY PERCENTAGE OF TOTAL Actual Budget Budget Full-time Faculty 21.06% 20.19% 20.11% Extra-contractual Faculty 2.85% 2.73% 2.64% Part-time Faculty 6.08% 6.62% 6.82% Total Faculty 30.00% 29.55% 29.57% Administration 9.94% 9.69% 10.04% Professional 0.74% 1.07% 1.16% Support Staff 9.92% 9.86% 10.43% Maintenance 3.50% 3.55% 3.63% Student Assistants 0.70% 0.68% 0.78% Opt Out 0.09% 0.09% 0.08% Total Wages 54.90% 54.49% 55.68% Fringe Benefits 30.16% 26.80% 27.31% Total Wages & Fringes 85.06% 81.29% 82.98% Services 3.24% 3.52% 3.33% Supplies 4.75% 5.52% 4.78% Rents/Utilities/Insurances 3.53% 4.36% 4.41% Other 3.43% 3.96% 3.92% Capital Outlay 0.00% 1.16% 0.29% Contingency 0.00% 0.19% 0.27% Total Expenses % % % Table 3.15 (above); Figure 3.3 (below) Monroe County Community College 27

33 CHAPTER 3 General Fund TRANSFERS FROM THE GENERAL FUND TRANSFERS FROM THE GENERAL FUND TO/(FROM): Designated Auxiliary Restricted Endowment M & R Unexpended Total FY Fund Fund Fund Fund Fund Plant Fund Transfers $ 100,000 $ 74,291 $ 500,000 $ 674, ,000 20, ,000 1,265, , ,000 1,500,000 2,017, ,698 2,111,000 2,130, ,967 1,000,000 1,015, ,000,000 18,091 1,018, ,950 1,000,000 1,000,000 2,019, ,560 3,700,000 3,717, ,954 21, ,000 1,000,000 1,025, ,134 25, ,000,000 19,667 1,019, (17,002) 1,000, , ,114 1, ,778 (45,000) (29,222) (215,000) 1,234 4,371,685 4,157, $ (20,286) $ 1,400 $ (18,886) Total $ 2,545,000 $ (235,286) $ 299,232 $ 455,000 $ 12,611,000 $ 5,371,685 $ 21,046,631 BUDGETED/APPROVED TRANSFERS FROM THE GENERAL FUND TO/(FROM): , , ,245 1,300, , ,000 Total $ 2,545,000 $ (235,286) $ 300,232 $ 455,000 $ 13,052,488 $ 7,029,930 $ 23,147,364 Table 3.16 Monroe County Community College 28

34 CHAPTER 3 General Fund UNRESTRICTED NET POSITION The College has designated the use of unrestricted net position (often referred to as Reserves ) as follows: 6/30/12 Actual 6/30/13 Actual 6/30/2014 Actual 6/30/2015 Actual 6/30/2016 Projected 6/30/2017 Projected UNRESTRICTED NET POSITION Designations for Unrestricted Net Position: Working Capital 3,935,577 4,461,697 5,000,687 6,158,932 5,500,687 5,000,687 Contingencies Technology Equipment 151, , , , , ,248 Auxiliary Activities 875, ,694 1,044,506 1,175,603 1,149,602 1,240,852 Student Loans 18,245 18,355 18,515 18,515 18,066 18,066 Quasi-Endowment 7,810 8,266 8,697 9,334 9,690 10,090 Construction 5,654, (5,966,356) (15,186,966) Major Maintenance and Renovation 480, , , , , ,017 Undesignated Unrestricted Net Position without Pension Liability 11,123,506 5,800,070 6,477,000 7,977,717 1,430,859 (8,545,006) MPSERS Net Pension Liability (Retirement) (29,467,803) (29,467,803) (29,467,803) Total Unrestricted Net Position 11,123,506 5,800,070 6,477,000 (21,490,086) (28,036,944) (38,012,809) Table 3.17 *Projected Figure 3.4 Monroe County Community College 29

35 CHAPTER 3 General Fund The General Fund budget includes funding for one renovation project listed below. RENOVATION PROJECTS Fund Cost Center Number Item Budget Request Refinish Dance/Aerobics Room Floor 5, TOTAL 5, Table 3.18 Monroe County Community College 30

36 CHAPTER 3 General Fund The General Fund budget includes funding for capital outlay purchases as listed below. REQUESTED CAPITAL OUTLAY Fund Cost Center Number Item Budget Request Replace Reach-In Refrigerator $ 2, Analytical Balance 3, Chairs (2) E-101 and W-174; Sit-Stand Workstation E-101 2, Culinary: Speakers for A Vinal Cutter Fanuc Memory Cards Auto Retractable Hose Miller Arc Station Weld Table (30FX) Strong Hand Nomad Portable Weld Table Radiation Samples Lab Vehicles 10, Welder for Auto Srvice 2, Auto Service: Cabinets and Shelving Units 5, Auto Service: Work Benches and Carts 2, Auto Service: Misc. Specialty Tools 11, Overbed Tables IV Poles Simulator Intradermal Injection MaxSlide (2/set) Digital Diaper Scale Avea Ventilator 17, CCS - Office Chairs (8) 1,600 TOTAL INSTRUCTION $ 59, Fitness Center $ 5,200 TOTAL STUDENT SERVICES $ 5, Radio Heavy-duty Manhole Magnet /2 Ft. Western Pro Plow for F-150 5, spray-on Bed Lining for dump Truck 2,305 TOTAL ADMINISTRATION $ 9,645 TOTAL CAPITAL OUTLAY $ 74,375 Table 3.19 Monroe County Community College 31

37 CHAPTER 3 General Fund Budget CAPITAL OUTLAY EXPENDITURES BY AREA Requests Instruction $ 59,530 Student Services $ 5,200 Administration $ 9,645 President/HR/Foundation $ - TOTAL FUNDED IN GENERAL FUND $ 74,375 Table 3.20 Cost Center Number Item CAPITAL OUTLAY PERKINS Budget Request D Connexion CadMouse 1, Wilton Drill Press 20" 4, Drill Chucks Mohn - Metalworking Belt Sander Miller 210DX CPS Weld Machine 3, CK Flexloc TIG Torch (CKFL 15) 1, PLCs 2, GPS System 3, Auto Service: Electrical Training Boards 1, Auto Service: Electrical Test Equipment 2, Auto Service: Emissions Analyzer 2, Auto Service: Scan Tools 2, Mobile Storate Cabinet & Handle (36X18X30) Mobile Storage Cabinet & Handle (36X24X78) IV Training Arm Mobile Office Partition Panel w/whitboard Pathophysiology Charts Pathophysiology Chart Stand LTV 1200 Portable Ventilator 6, End-tital CO2 Monitor 5,000 TOTAL PERKINS $ 41,125 Table 3.21 Monroe County Community College 32

38 CHAPTER 4 Retirement Designated Fund 4 CHAPTER RETIREMENT DESIGNATED FUND The College s Retirement Designated Fund is used to record and report the MPSERS UAAL (Unfunded Actuarial Accrued Liability) Rate Stabilization and the College s proportional share of the MPSERS net pension liability. In 2012, Public Act 300 instituted several reforms to the Michigan Public School Employees Retirement System (MPSERS), one of which was to cap the employer s share of the Unfunded Actuarial Accrued Liability (UAAL) on reported payroll at percent. As a result, the balance of retirement costs are funded with state appropriations, referred to as MPSERS UAAL Rate Stabilization payments. The amount allocated to each community college is based upon each community college s percentage of the total covered payroll for all community colleges that are participating colleges in the immediately preceding fiscal year. Community colleges receiving these funds may only use them for the purpose of retirement contributions and must forward an amount equal to the amount allocated by the state appropriation to the retirement system as directed by the Office of Retirement Services (ORS). GASB (Governmental Accounting Standards Board) 68 is an accounting standard applicable to all governments that provide defined benefit pension plans. The defined benefit plan Michigan schools are required to participate in is MPSERS. This plan is a cost-sharing multiemployer plan, which means each participating employer must account for its share of the total plan. This includes its portion of both the net pension liability and the pension expense. GASB 68 requires all participating employers to record pension liability and pension expense starting with fiscal year The College tracks its proportional share of the MPSERS net pension liability in the Retirement Designated Fund. The plan s net pension liability is the amount of the total pension benefit that is not funded by investment assets. This is the net unfunded pension benefit. As a participating employer, the College is required to report its proportionate share of the unfunded portion (net pension liability). This liability is not something new but rather exists as a normal part of pension funding where a pension system can be overfunded or underfunded depending on the value of the investments. What is new is the GASB financial reporting standard that requires the College to show the liability on its balance sheet. The College s percentage of the whole liability is based on its contributions to the system. Annually, ORS will determine each reporting unit s proportional share of the liability by measuring its proportionate share of the prior year s liability contributions. ORS will notify each reporting unit of its share in time to prepare the annual financial statements. It is important to note that MPSERS has had a net pension liability since the early 2000s, which was worsened by the market losses in 2008 and As of September 30, 2014, the MPSERS (Non- University Plan) net pension liability was over $22 billion. Monroe County Community College 33

39 CHAPTER 4 Retirement Designated Fund BACK-UP INFORMATION BUDGET RETIREMENT DESIGNATED FUND ACTUAL PROJECTED BUDGET Revenue: UAAL Rate Stabilization $ 997,337 $ 1,236,589 $ 1,400,000 $ 997,337 $ 1,236,589 $ 1,400,000 Instruction 412, , ,394 Information Technology 44,457 55,121 69,238 Public Services 6,342 10,417 12,289 Instructional Support 86, , ,969 Student Services 79, , ,468 Institutional Administration 65, , ,543 Physical Plant 85, , ,099 Expense $ 781,402 $ 1,236,589 $ 1,400,000 Revenue Greater (Less Than) Expense $ 215,935 $ - $ - Beginning Net Pension Liability (29,683,738) (29,467,803) (29,467,803) Ending Net Pension Liability $ (29,467,803) $ (29,467,803) $ (29,467,803) Table 4.1 Monroe County Community College 34

40 CHAPTER 5 Designated Fund 5 CHAPTER DESIGNATED FUND As defined by the state s Manual for Uniform Financial Reporting for Michigan Public Community Colleges, The Designated Fund is to be used to account for transactions of funds restricted as to operating use by the Board of Trustees or the administration. The source of such funds could be virtually any unrestricted revenue that the Board or administration earmarks for a specific operating purpose. The College s Designated Fund is used to record and report the cost of campus technology equipment and software. Figure 5.1 Monroe County Community College 35