MT HOOD COMMUNITY COLLEGE 2017-2018 PROPOSED BUDGET OFFICE OF ADMINISTRATIVE SERVICES 26000 SE STARK STREET GRESHAM OR be yourdream
COMMUNITY COLLEGE
MT. HOOD COMMUNITY COLLEGE DISTRICT BUDGET COMMITTEE In accordance with ORS 294.341, the governing body of each municipal corporation having a district population exceeding 200,000 and which is located in a county having a tax supervising and conservation commission shall act as the budget committee for such municipal corporation. Budget Committee Member Zone Term Ends June 30 Susie Jones 1 2017 James Zordich 2 2017 Teena Ainslie 3 2019 George Sonny Yellott 4 2017 Kenney Polson 5 2019 Tamie Arnold At Large 2019 Michael Calcagno At Large 2019 Jennifer DeMent, Budget Officer
COLLEGE
Mt. Hood Community College 2017-18 Proposed Budget Table of Contents Budget Message... i-v Summary of Funds... 1-6 General Fund Resources... 7 Requirements... 8-9 Other Funds... 10 Bonded Debt Service Fund (02)... 11 Pension Bond Debt Service Fund (03)... 12 Physical Plant Maintenance Fund (06)... 13 Technology Projects Fund (07)... 14 Capital Projects Fund (08)... 15 Student Aid Fund (10)... 16 Federal, State & Special Projects Fund (16)... 17 Bookstore Fund (40)... 18 Aquatic Center Fund (42)... 19 Club Funds (50)... 20 Trusts Fund (51)... 21 Associated Student Government Fund (52)... 22 Glossary... 23-26
COLLEGE
OFFICE OF THE PRESIDENT Debra Derr Ed.D. President 503-491-7211 Debra.Derr@mhcc.edu President s Budget Presentation to the Mt. Hood Community College (MHCC) Board of Education, April 12, 2017 Good evening, members of the MHCC Board of Education, College students, faculty, staff and guests. I continue to be exceptionally proud of the work that happens every day at Mt. Hood Community College. Our college is in the second year of the actualization of our strategic plan and I am proud to state that the creativity, innovation and ongoing support for the success of our students is illustrated in the results we are experiencing. Our completion rates are up by.8 percent. Our retention and persistence rates have improved as well. Our student annual retention rates are up by 6.4 percent. Our spring to fall persistence rates increased by 2.3 percent over the 2015-16 academic year. Additionally, this year the College was granted a seven-year re-affirmation of its accreditation by the Northwest Commission of Colleges and Universities. The reorganization of our administration, which began last August, is showing results as evidenced in our commitment to continuous quality improvement, and a commitment to improve transparency and communication, and fully engage our faculty, staff and students through a re-engineered participatory governance model. There has been a renewed focus on transparency and engagement in this year s budget process. The College continues to be committed to long-term financial sustainability and health. However, we began this budget process as we have in many previous years: facing an operational deficit. Costs increase at a rate that exceeds our ability to increase revenue, and both state and federal legislation bring new expenses that the college must face. These new requirements include: Paid sick leave for part time employees Increases to the minimum wage i
Increasing health care costs Increasing PERS costs New definitions of full and part time work Safety reporting requirements through the Cleary Act Costs associated with the implementation of Title IX. Each of these new or rising expenditure requirements came to us without an associated increase in state funding. The State Legislature is still in session and has not yet made a decision on Community College funding. It may be as late as July 2017 before we will know what our actual state funding will be. Consequently, the proposed MHCC budget for 2017/18 estimates that our state support will remain at the 2015/17 funding level of $550 million for all Oregon community colleges. If the legislature increases state funding for community colleges, any additional revenue will be used to restore a healthy fund balance aligned with MHCC Board policy. A budget is a plan at a certain point in time, and is built on assumptions, based on information available at the time. The proposed budget includes the possibility for the passage of a general obligation bond in May 2017. It also includes the required $2.4 million in debt service that would be alleviated with a successful bond passage. The MHCC Board of Directors understands what it has meant to the college s ability to develop new programs and address deferred maintenance due to the debt service that was necessary to address the needs of fifty-year-old facilities. Oregon community colleges have become increasingly dependent on student tuition dollars to cover operational costs. In 2015, the MHCC board created a tuition pledge to students, committing to not increase a student s tuition as long as the student is making satisfactory progress towards their degree or certificate. While this is an excellent benefit for our students, it hampers our ability to generate revenue through tuition increases. Only incoming students will pay the increased tuition rate. We are proposing a $4 per credit tuition increase for 2017/18. This will apply to new students only, and will be the only tuition rate students pay as long as they continue on their education path, as outlined in the Tuition Pledge. One thing the past has taught us is that we cannot continue to do the same things the same way and expect our financial situation to improve. We must review the ii
mix and vitality of the programs and services that we offer, making investments and adjustments where appropriate. The 2017/18 proposed budget includes the following investments, funded through resource reallocations: Increased safety and security through additional public safety officer coverage during summer periods where the College is at greater risk for vandalism. Funding in the Environmental Health & Safety area for safety equipment and training and the implementation of an emergency notification system for students and staff. Continued commitment to environmental sustainability, by fully funding a sustainability specialist position through utility savings generated through centralization of class locations during low use periods. Continuing to build momentum through involvement in national sustainability efforts like Second Nature and Salmon Safe. Full implementation of the mechatronics program. Mechatronics is an emerging and growing area of engineering expertise that combines multidisciplinary engineering fields and applies those skills to the complex systems involved in the design and manufacture of products. Funding systems improvements by implementing an automated catalog and curriculum software solution that will directly support our future efforts in Guided Pathways and student completion. Providing additional support for students through increased advising and support staff at the Maywood Park Center and in programs that support our high school students earning college credit. Continued commitment to access, equity and inclusion through additional district staffing allocations. Responding the employment needs of our health care providers by implementing a Certified Medical Assistant instructional program, with a planned spring 2018 cohort start date. New programs and continued support for student completion will have a positive impact on our enrollment and, subsequently, revenue generation. However, the named adjustments are not expected to have an immediate impact on enrollment. Enrollment for 2017/18 is assumed to remain at current year levels. This is likely contingent on the State continuing to fund the Oregon Promise program (which is iii
looking very positive). A decline in enrollment would increase our operating deficit and the possibility highlights our need for sufficient reserves. To provide time for the proposed changes and enhancements to become effective and to ensure we are continuing our commitment to long term financial health and sustainability, the 2017/18 budget will take our reserves below the Board policy mandate. Board policy requires a minimum combination of reserves, which cannot be spent, and contingency, which can be spent with board approval, of 5%. Presenting the board with a budget where reserves and contingency are below this minimum requires a plan to replenish reserves within two years. The proposed budget includes reserves at 2% and contingency at 2%, which is 1%, or $675,000, less than the policy required minimum. The plan to restore reserves includes the following: Review of the Hospitality and Tourism program for alignment with industry and business division curriculum to ensure the best student outcomes possible. Vacant faculty position will not be filled for one year and its need will be reviewed with the 2018/19 fiscal year. Review of Intensive English for College and Careers (IECC) coursework, including reducing the number of cohorts offered and developing combined reading and writing courses for international and non-native English speakers. An early retirement incentive for full time faculty that creates vacancies and allows for select positions to be held. This also provides an opportunity to review where replacements are hired and where positions can be placed to have the greatest impact on student enrollment and success. Ongoing review of staff positions to explore opportunities to consolidate workload and create efficiencies resulting in the need for fewer or redesigned positions. These changes often happen through attrition. In collaboration with the MHCC faculty, development of a process to critically review the mix and vitality of MHCC s program offerings. For MHCC s ongoing success and the success of our students, our offerings will be relevant and responsive to the needs of our community, its workforce, and will support successful transfer to colleges and universities. A report on the progress of the plan will be brought to the board at the October 2017 board meeting. iv
The creation of this budget was a team effort. I wish to thank College staff and faculty for their work embracing our strategic direction as reflected in this proposed budget. We have a budget that is no longer reactionary in how we make decisions, but strategic, forward thinking and committed to the success of our students, faculty, staff, partners and larger community. Thank you, Debra A. Derr v
COMMUNITY COLLEGE
Summary of Funds Revised Budget Proposed Budget 2014-15 2015-16 Fund Title 2016-17 2017-18 $ 69,265,246 $ 70,987,096 General Fund - (01) $ 70,278,173 $ 70,259,736 - - Bonded Debt Service Fund - (02) 7,326,006 6,200,000 6,119,026 5,714,406 Pension Bond Debt Service Fund - (03) 4,563,691 4,793,691 942,415 694,361 Physical Plant Maintenance Fund - (06) 500,000 490,000 2,616,540 2,474,411 Technology Projects Fund - (07) 1,713,067 1,848,642 262,950 - Capital Projects Fund - (08) 125,000,000 75,000,000 36,554,728 25,859,821 Student Aid Fund - (10) 85,026,990 55,026,990 23,891,589 25,266,328 Federal, State & Special Projects Fund - (16) 57,800,000 57,800,000 4,123,528 3,302,796 Bookstore Fund - (40) 2,900,000 2,427,802-794,101 Aquatic Center Fund - (42) 823,472 896,263 116,730 97,684 Clubs Fund - (50) 250,000 250,000 429,752 484,617 Trusts Fund - (51) 504,534 504,534 1,192,563 1,166,296 Associated Student Government Fund - (52) 1,114,962 1,268,000 $ 145,515,067 $ 136,841,917 Total All Funds $ 357,800,895 $ 276,765,658 Student Aid Fund - (10) $55,026,990 Federal, State & Special Projects Fund - (16) $57,800,000 Capital Projects Fund - (08) $75,000,000 Technology Projects Fund - (07) $1,848,642 Physical Plant Maintenance Fund - (06) $490,000 Pension Bond Debt Service Fund - (03) $4,793,691 General Fund - (01) $70,259,736 Bookstore Fund - (40) $2,427,802 Aquatic Center Fund - (42) $896,263 Clubs Fund - (50) $250,000 Trusts Fund - (51) $504,534 Bonded Debt Fund (02) $6,200,000 Associated Student Government Fund - (52) $1,268,000 1
Extended Summary of Funds by Function 2014-15 2015-16 Fund Title Revised Budget 2016-17 Proposed Budget 2017-18 General Fund (01) 30,478,660 29,843,442 Instruction 31,831,919 31,960,765 7,857,881 7,932,695 Instructional Support 8,708,948 8,918,115 5,932,863 5,222,879 Student Services 5,823,928 5,970,751 93,005 51,442 Community Services 77,784 89,373 12,318,063 12,787,268 College Support Services 13,365,631 13,480,607 4,221,131 4,458,099 Plant Operations and Maintenance 4,626,066 4,709,823 211,142 146,935 Plant Additions 138,000 155,000 1,207,196 1,122,121 Financial Aid 1,310,863 1,380,865 612,875 675,275 Transfers 825,000 825,000 6,332,430 8,746,939 Contingency and Reserves 3,570,035 2,769,437 69,265,246 70,987,095 Total 70,278,174 70,259,736 - - Bonded Debt Service Fund (02) Debt Services - Principal - Bond 2,335,000 2,765,000 - - Debt Services - Interest - Bond 4,991,006 3,435,000 - - Contingency and Reserves - - - - Total 7,326,006 6,200,000 Pension Bond Debt Service Fund (03) 1,359,626 1,365,264 Debt Services - Principal - Bond 1,366,089 1,362,636 2,774,065 2,978,427 Debt Services - Interest - Bond 3,197,602 3,431,055 1,985,335 1,370,715 Contingency and Reserves - - 6,119,026 5,714,406 Total 4,563,691 4,793,691 Physical Plant Maintenance Fund (06) 613,947 274,727 Plant Operations and Maintenance 325,000 432,000 34,107 330,596 Plant Additions 175,000 58,000 294,361 89,038 Contingency and Reserves - - 942,415 694,361 Total 500,000 490,000 Technology Projects Fund (07) 1,583,740 2,116,859 College Support Services 1,713,067 1,848,642 1,032,800 357,552 Contingency and Reserves - - 2,616,540 2,474,411 Total 1,713,067 1,848,642 Capital Projects Fund (08) 262,950 - Plant Additions 125,000,000 75,000,000 - - Contingency and Reserves - - 262,950 - Total 125,000,000 75,000,000 Student Aid Fund (10) 36,484,331 25,816,610 Financial Aid 84,926,990 54,926,990 42,663 30,306 Transfers 100,000 100,000 27,734 12,905 Contingency and Reserves - - 36,554,728 25,859,821 ` 85,026,990 55,026,990 Federal, State, and Special Projects Fund (16) 19,941,734 20,466,160 College Support Services 46,500,000 46,500,000 445,191 753,627 Plant Additions 10,000,000 10,000,000 - - Financial Aid 300,000 300,000 3,504,664 4,046,541 Contingency and Reserves 1,000,000 1,000,000 23,891,589 25,266,328 Total 57,800,000 57,800,000
Revised Budget Proposed Budget 2014-15 2015-16 Fund Title 2016-17 2017-18 Bookstore Fund (40) 3,259,598 2,421,602 Student Services 2,800,000 2,352,802 78,689 95,953 Transfers 100,000 75,000 785,241 785,241 Contingency and Reserves - - 4,123,528 3,302,796 Total 2,900,000 2,427,802 Aquatic Center Fund (42) 715,846 Student Services 823,472 896,263-78,255 Contingency and Reserves - - - 794,101 Total 823,472 896,263 Clubs Fund (50) 75,512 67,808 Student Services 245,000 245,000 - - Plant Additions 5,000 5,000 41,218 29,876 Contingency and Reserves - 116,730 97,684 Total 250,000 250,000 Trusts Fund (51) 175,106 195,321 Student Services 499,534 499,534 5,000 - Plant Additions 5,000 5,000 249,646 289,296 Contingency and Reserves - 429,752 484,617 Total 504,534 504,534 Associated Student Government Fund (52) 744,231 766,200 Student Services 864,962 896,535 12,000 - Plant Additions 250,000 250,000 436,332 400,096 Contingency and Reserves - 121,465 1,192,563 1,166,296 Total 1,114,962 1,268,000 145,515,067 136,841,916 357,800,896 276,765,658 3
Extended Summary of Funds by Object 2014-15 2015-16 Fund Title Revised Budget 2016-17 Proposed Budget 2017-18 General Fund - (01) 51,466,403 50,381,886 Personnel Services 53,784,722 54,564,990 7,075,210 7,516,462 Materials & Services 8,217,468 8,234,969 211,142 146,935 Capital Improvements 138,000 155,000 2,359,990 2,397,478 Debt Service 2,432,085 2,329,475 1,207,196 1,122,121 Grants In Aid 1,310,863 1,380,865 612,875 675,275 Transfers 825,000 825,000 - - Contingency 2,224,152 1,417,145 6,332,430 8,746,939 Unappropriated Fund Balance 1,345,883 1,352,292 69,265,246 70,987,096 70,278,173 70,259,736 Bonded Debt Service Fund - (02) - - Debt Service 7,326,006 6,200,000 - - 7,326,006 6,200,000 Pension Bond Debt Service Fund - (03) 4,133,691 4,343,691 Debt Service 4,563,691 4,793,691 1,985,335 1,370,715 Unappropriated Fund Balance - - 6,119,026 5,714,406 4,563,691 4,793,691 Physical Plant Maintenance Fund - (06) 4,876 41,267 Personnel Services - - 609,071 233,460 Materials & Services 325,000 432,000 34,107 330,596 Capital Improvements 175,000 58,000 294,361 89,038 Unappropriated Fund Balance - - 942,415 694,361 500,000 490,000 Technology Projects Fund - (07) 1,583,740 1,887,718 Materials & Services 1,713,067 1,848,642-229,141 Capital Improvements - - 1,032,800 357,552 Unappropriated Fund Balance - - 2,616,540 2,474,411 1,713,067 1,848,642 Capital Projects Fund - (08) - - Materials and Services - - 262,950 - Capital Improvements 125,000,000 75,000,000 - - Unappropriated Fund Balance - - 262,950-125,000,000 75,000,000 Student Aid Fund - (10) 444,975 399,524 Personnel Services 763,990 763,990 36,039,356 25,417,086 Grants and Loans 84,163,000 54,163,000 42,663 30,306 Transfers 100,000 100,000 27,734 12,905 Unappropriated Fund Balance - - 36,554,728 25,859,821 85,026,990 55,026,990 Federal, State & Special Projects Fund - (16) 13,700,586 13,933,055 Personnel Services 26,500,000 26,500,000 6,241,148 6,533,105 Materials and Services 20,000,000 20,000,000 445,191 753,627 Capital Improvements 10,000,000 10,000,000 - - Grants in Aid 300,000 300,000 - - Contingency 1,000,000 1,000,000 3,504,664 4,046,541 Unappropriated Fund Balance - - 23,891,589 25,266,328 57,800,000 57,800,000 4
Revised Budget Proposed Budget 2014-15 2015-16 Fund Title 2016-17 2017-18 Bookstore Fund - (40) 2,330,496 1,703,176 Cost of Merchandise 1,958,191 1,620,793 666,373 553,298 Personnel Services 630,490 548,113 262,729 165,128 Materials and Services 211,319 161,896 - - Capital Improvements - 22,000 78,689 95,953 Transfers 100,000 75,000 785,241 785,241 Unappropriated Fund Balance - - 4,123,528 3,302,796 2,900,000 2,427,802 Aquatic Center Fund (42) - 616,168 Personnel Services 670,642 731,652-99,678 Materials & Services 119,184 120,000 - - Capital Improvements 33,646 44,611-78,255 Unappropriated Fund Balance - - - 794,101 823,472 896,263 Clubs Fund - (50) - - Personnel Services 11,210 11,210 75,512 67,808 Materials & Services 233,790 233,790 - - Capital Improvements 5,000 5,000 41,218 29,876 Unappropriated Fund Balance - - 116,730 97,684 250,000 250,000 Trusts Fund - (51) 9,990 12,230 Personnel Services 78,534 78,534 165,116 183,091 Materials & Services 421,000 421,000 5,000 - Capital Improvements 5,000 5,000 249,646 289,296 Unappropriated Fund Balance - - 429,752 484,617 504,534 504,534 Associated Student Government Fund - (52) 260,652 286,564 Personnel Services 265,386 310,797 483,579 479,636 Materials & Services 599,576 585,738 12,000 - Capital Improvements 250,000 250,000 - - Contingency - 121,465 436,332 400,096 Unappropriated Fund Balance - - 1,192,563 1,166,296 1,114,962 1,268,000 145,515,067 136,841,917 Total All Funds 357,800,895 276,765,658 5
Extended Summary of Funds by Object - All Funds Combined 2014-15 2015-16 Fund Title Revised Budget 2016-17 Proposed Budget 2017-18 66,553,855 66,223,992 Personnel Services 82,704,974 83,509,286 18,826,601 18,869,262 Materials & Services 33,798,595 33,658,828 37,246,552 26,539,207 Grants In Aid 85,773,863 55,843,865 6,493,681 6,741,169 Debt Service 14,321,782 13,323,166 970,390 1,460,299 Capital Improvements 135,606,646 85,539,611 734,227 801,534 Fund Transfers 1,025,000 1,000,000 - - Contingency 3,224,152 2,538,610 14,689,761 16,206,454 Unappropriated Fund Balance 1,345,883 1,352,292 145,515,067 136,841,917 Total 357,800,895 276,765,658 6
General Fund Resources General Fund resources constitute those funds available as a resource, to satisfy the College's obligations within the General Fund for 2017-18. This includes not only projected current year revenues, but also unrestricted General Fund beginning balance, as those funds can also be used to satisfy current year obligations. The college General Fund budget has been developed in accordance with a fiscal strategy which considers future state support, projected enrollment, and required college expenditures. This fiscal strategy calls for continuing adjustments and reallocations of the college budget while allocating for fixed cost increases. All fiscal premises are based on the College's mission of providing quality education and delivery systems. Resources Resources Revised Budget Proposed Budget 2014-15 % 2015-16 % Resources: 2016-17 % 2017-18 % $ 24,935,144 38% $ 27,751,156 43% State Aid $ 27,591,811 43% $ 26,039,885 41% 10,696,540 16% 11,163,171 17% Cur Yr Taxes 11,743,000 18% 11,996,200 19% 267,822 0% 249,475 <1% Prior Yr Taxes 282,000 <1% 161,545 <1% 26,909,906 41% 23,752,357 37% Tuition and Fees 23,016,278 36% 24,516,898 38% 76,684 < 1% 134,939 <1% Investment Income 85,000 <1% 90,000 <1% 2,036,079 3% 1,507,614 2% Other Income 1,436,093 2% 1,047,778 2% 78,689 < 1% 95,953 < 1% Transfers In 100,000 < 1% 75,000 <1% $ 65,000,864 100% $ 64,654,665 100% TOTAL REVENUES 64,254,182 100% $ 63,927,306 100% 4,264,382 6,332,430 Beg Fund Balance 6,023,990 6,332,430 $ 69,265,246 $ 70,987,095 TOTAL RESOURCES $ 70,278,172 $ 70,259,736 Percent of total Funding 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%..._ -- ', - 14-15 15-16 16-17 Revised 17-18 Proposed -a-- ~ ~ - -~ ' Tuition and Fees State Support Property Taxes Other Income Transfers In Prior Years' Taxes Investment Income Numbers may not foot due to rounding. 7
General Fund Expenditures by Object Mt Hood Community College expends funds for specific items, such as salaries, benefits, supplies, services, and other requirements. Object classification identifies the specific items purchased. Personnel services include salaries, benefits, and other related expenses. Materials and services are those consumables used during the year either in direct, indirect, or general support of instruction at the college. Capital Improvements includes capital improvements to buildings and related expenditures and equipment. Transfers to Other Funds includes required matching contributions for other programs outside the General Fund. By Object 2014-15 % 2015-16 % Requirements Revised 2016-17 % Budget Proposed 2017-18 % $ 51,466,403 74% $ 50,381,886 71% Personnel Services $ 53,784,722 77% $ 54,564,990 78% 7,075,210 10% 7,516,462 11% Materials & Services 8,217,468 12% 8,234,969 12% 2,359,990 3% 2,397,478 3% Debt Service 2,432,085 3% 2,329,475 3% 211,142 < 1% 146,935 < 1% Capital Improvements 138,000 < 1% 155,000 < 1% 612,875 < 1% 675,275 < 1% Transfer to Other Funds 825,000 < 1% 825,000 1% 1,207,196 2% 1,122,121 2% Grants in Aid 1,310,863 2% 1,380,865 2% - < 1% - < 1% Contingency 2,224,152 3% 1,417,145 2% 6,332,430 9% 8,746,939 12% Unappropriated Fund Balance 1,345,883 2% 1,352,292 2% $ 69,265,246 99% $ 70,987,096 100% $ 70,278,173 100% $ 70,259,736 100% Percent of total Expenditures 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% ~ - - -"T"..., - 14-15 15-16 16-17 Revised 17-18 Proposed ~ -...,._ ~ Personnel Services Materials & Services Other Contingency Numbers may not foot due to rounding. 8
General Fund Expenditures by Function Mt Hood Community College expends funds for specific functions related to the mission, goals and objectives of the college. Those expenditures are classified into categories based on operational function. It is important to understand each operational function and what expenditures within each classification are intended to accomplish for the college. The specific operational functions are listed here for Mt Hood Community College and explained in the Glossary to this budget document. These functional classifications remain constant, regardless of the fund from which the expenditure occurred. By Function Budget Revised Proposed 2014-15 % 2015-16 % Requirements 2016-17 % 2017-18 % $ 30,478,660 48% $ 29,843,442 48% Instruction $ 31,831,919 48% $ 31,960,765 47% 7,857,881 12% 7,932,695 13% Instructional Support 8,708,948 13% 8,918,115 13% 5,932,863 9% 5,222,879 8% Student Services 5,823,928 9% 5,970,751 9% 93,005 <1% 51,442 <1% Community Services 77,784 <1% 89,373 <1% 12,318,063 20% 12,787,268 21% College Support Svcs 13,365,631 20% 13,480,607 20% 4,432,273 7% 4,605,034 7% Facilities Mgmt 4,764,066 7% 4,864,823 7% 1,207,196 2% 1,122,121 2% Grants in Aid 1,310,863 2% 1,380,865 2% 612,875 1% 675,275 1% Transfers 825,000 <1% 825,000 1% $ 62,932,816 100% $ 62,240,156 100% TOTAL EXPENDITURES $ 66,708,139 100% $ 67,490,299 100% 6,332,430 8,746,939 Fund Balance/Contingency 3,570,035 2,769,437 $ 69,265,246 $ 70,987,095 TOTAL REQUIREMENTS $ 70,278,174 $ 70,259,736 70% Percent of Total Expenditures 60% 50% 40% 30% 20% 10% ~ ~ ~,,,,, ' -L. - - - 0% - - - - 14-15 15-16 16-17 Revised 17-18 Proposed Instruction & Instruction Support Student Services Facilities All Other Numbers may not foot due to rounding. 9
Other Funds 02 Bonded Debt Service Fund 03 Pension Bond Debt Service Fund 06 Physical Plant Maintenance Fund 07 Technology Projects Fund 08 Capital Projects Fund 10 Student Aid Fund 16 Federal, State and Special Projects Fund 40 Bookstore Fund 42 Aquatics Fund 50 Clubs Fund 51 Trusts Fund 52 Associated Student Government Fund 10
Bonded Debt Service Fund (02) Projected debt service obligation for May 2017 bond and associated property tax collections. 2014-15 2015-16 Resources: Revised 2016-17 Budget Proposed 2017-18 - - Taxes Current Year 7,326,006 6,200,000 - - Total Revenues 7,326,006 6,200,000 - - Beginning Fund Balance - - - - Total Resources 7,326,006 6,200,000 Requirements: Debt Service - - Principal - Bond 2,335,000 2,765,000 - - Interest - Bond 4,991,006 3,435,000 - - Total Requirements 7,326,006 6,200,000 Other financing uses: - - Operating Transfer-(01) - - - - Ending Fund Balance - - - - Total Requirements and Ending Fund Balance 7,326,006 6,200,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000-14-15 15-16 16-17 Revised 17-18 Proposed Revenue Expenditures 11
Pension Bond Debt Service Fund (03) Fund requirements are principal and interest on bonds issued to finance the College's share of the unfunded actuarial liability of Oregon Public Employees Retirement System (PERS). Resources are provided by charges assessed to other funds as a percentage of salary subject to PERS. 2014-15 2015-16 Resources: Revised 2016-17 Budget Proposed 2017-18 - - Interest - - 4,882,947 3,729,071 Bond Assessment 4,563,691 4,793,691 4,882,947 3,729,071 Total Revenues 4,563,691 4,793,691 1,236,079 1,985,335 Beginning Fund Balance - - 6,119,026 5,714,406 Total Resources 4,563,691 4,793,691 Requirements: Debt Service 1,359,626 1,365,264 Principal - Bond 1,366,089 1,362,636 2,774,065 2,978,427 Interest - Bond 3,197,602 3,431,055 4,133,691 4,343,691 Total Requirements 4,563,691 4,793,691 Other financing uses: - - Operating Transfer-(01) - - 1,985,335 1,370,715 Ending Fund Balance - - Total Requirements and 6,119,026 5,714,406 Ending Fund Balance 4,563,691 4,793,691 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000-14-15 15-16 16-17 Revised 17-18 Proposed Revenue Expenditures 12
Physical Plant Maintenance Fund (06) This fund accounts for resources provided by tax credits or transfers from various other funds. The funds have been used to maintain the physical plant of the District. 2014-15 2015-16 Resources: Revised 2016-17 Budget Proposed 2017-18 542,415 - Other Income - - 400,000 400,000 Transfer from General Fund 400,000 400,000 942,415 400,000 Total Revenues 400,000 400,000-294,361 Beginning Fund Balance 100,000 90,000 942,415 694,361 Total Resources 500,000 490,000 Requirements: 4,876 41,267 Personnel Services - - 609,071 233,460 Materials and Services 325,000 432,000 34,107 330,596 Capital Improvements 175,000 58,000 648,054 605,323 Total Requirements 500,000 490,000 294,361 89,038 Ending Fund Balance - - Total Requirements and 942,415 694,361 Ending Fund Balance 500,000 490,000 1,000,000 800,000 600,000 400,000 200,000-14-15 15-16 16-17 Revised 17-18 Proposed Revenue Expenditures 13
Technology Projects (07) This fund provides for the technology and telecommunication needs of the College - primarily focused on direct student support. Revenues are derived from the technology fee charged to students, telephone departmental chargebacks, and telephone deskset sales. 2014-15 2015-16 Resources: Revised 2016-17 Budget Proposed 2017-18 1,233,656 1,054,060 Technology Fee 997,032 1,128,120 390,211 387,551 Other Income 391,035 295,275 1,623,867 1,441,611 Total Revenues 1,388,067 1,423,395 992,673 1,032,800 Beginning Fund Balance 325,000 425,247 2,616,540 2,474,411 Total Resources 1,713,067 1,848,642 Requirements: 1,583,740 1,887,718 Materials and Services 1,713,067 1,848,642-229,141 Capital Outlay - - - - Contingency - - 1,583,740 2,116,859 Total Requirements 1,713,067 1,848,642 1,032,800 357,552 Ending Fund Balance - - Total Requirements and 2,616,540 2,474,411 Ending Fund Balance 1,713,067 1,848,642 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 14-15 15-16 16-17 Revised 17-18 Proposed Revenue Expenditures 14
Capital Projects Fund (08) For 2017-18, this fund provides for the capital projects from the May 2017 general obligation bond. Historical expenses are related to prior full faith and credit obligations issued by the district. 2014-15 expenditures do not show on graph due to small amount. Revenues are derived from debt proceeds. 2014-15 2015-16 Budget Revised 2016-17 Proposed 2017-18 Resources: 1,358 - Interest and Other - - - - Debt Proceeds 125,000,000 75,000,000 1,358 - Total Revenues 125,000,000 75,000,000 261,592 - Beginning Fund Balance - - 262,950 - Total Resources 125,000,000 75,000,000 Requirements: - - Personnel Services - - - - Materials and Services - - 262,950 - Capital Improvements 125,000,000 75,000,000 262,950 - Total Requirements 125,000,000 75,000,000 - - Ending Fund Balance - - Total Requirements and 262,950 - Ending Fund Balance 125,000,000 75,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 14-15 15-16 16-17 Revised 17-18 Proposed Revenue Expenditures 15
Student Aid Fund (10) This fund is used to budget for federal campus-based student loans, direct loans, state and federal grants and federal work-study for qualified students of the college. Resources are provided by state and federal financial aid programs, mandatory transfers and loan repayment funds. Requirements are all related to the various federal and state financial aid programs administered by the College. 2014-15 2015-16 Resources: Revised 2016-17 Budget Proposed 2017-18 36,138,554 25,795,052 Governmental Funds 84,683,990 54,683,990 53,077 36,635 Loan Collections 75,000 75,000 1,022 125 Interest & Other 18,000 18,000 36,192,653 25,831,812 Total Revenues 84,776,990 54,776,990 Other financing sources: 212,875 275 Transfer from General Fund 150,000 150,000 149,200 27,734 Beginning Fund Balance 100,000 100,000 36,554,728 25,859,821 Total Resources 85,026,990 55,026,990 Requirements: 444,975 399,524 Personnel Services 763,990 763,990 36,039,356 25,417,086 Grants and Loans 84,163,000 54,163,000 36,484,331 25,816,610 Total Requirements 84,926,990 54,926,990 Other financing uses: 42,663 30,306 Operating Transfers - (16) 100,000 100,000 Total requirements and 36,526,994 25,846,916 other financing uses 85,026,990 55,026,990 27,734 12,905 Ending fund balance - - Total Requirements and 36,554,728 25,859,821 Ending Fund Balance 85,026,990 55,026,990 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 14-15 15-16 16-17 Revised 17-18 Proposed Revenue Expenditures 16
Federal, State and Special Projects Fund (16) This fund accounts for the financial operations of categorical programs of the College, funded by state, federal, and private revenues, other than student financial aid. Expenditures are made pursuant to the guidelines of each funding source. 2014-15 2015-16 Resources: Revised 2016-17 Budget Proposed 2017-18 18,596,992 18,614,345 Government Funds 50,000,000 50,000,000 143,338 30,306 Transfer from Student Aid 100,000 100,000 2,499,804 3,117,013 Other Sources 7,000,000 7,000,000 21,240,134 21,761,664 Total Revenues 57,100,000 57,100,000 2,651,455 3,504,664 Beginning Fund Balance 700,000 700,000 23,891,589 25,266,328 Total Resources 57,800,000 57,800,000 Requirements: 13,700,586 13,933,055 Personnel Services 26,500,000 26,500,000 6,241,148 6,533,105 Materials and Services 20,000,000 20,000,000 445,191 753,627 Capital Improvements 10,000,000 10,000,000 - - Grants in Aid 300,000 300,000 - - Contingency 1,000,000 1,000,000 20,386,925 21,219,787 Total Requirements 57,800,000 57,800,000 Other financing uses: 3,504,664 4,046,541 Ending Fund Balance - - Total Requirements and 23,891,589 25,266,328 Ending Fund Balance 57,800,000 57,800,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000-14-15 15-16 16-17 Revised 17-18 Proposed Revenue Expenditures 17
Bookstore Fund (40) The bookstore operates as a self-supporting entity or Enterprise Fund for the College. The primary responsibility of the store is the provision of textbooks, supplies, and general merchandise for the students and staff. Profit generated by the bookstore is transferred to the General Fund. 2014-15 2015-16 Resources: Revised 2016-17 Budget Proposed 2017-18 3,149,635 2,462,220 Sales 2,813,788 2,349,302 64,278 55,335 Interest/Other 86,212 78,500 3,213,913 2,517,555 Total Revenues 2,900,000 2,427,802 909,615 785,241 Beginning Fund Balance - - 4,123,528 3,302,796 Total Resources 2,900,000 2,427,802 Requirements: 2,330,496 1,703,176 Cost of Merchandise 1,958,191 1,620,793 666,373 553,298 Personnel Services 630,490 548,113 262,729 165,128 Materials and Services 211,319 161,896 - - Capital Improvements - 22,000 3,259,598 2,421,602 Total Requirements 2,800,000 2,352,802 Other financing uses: 78,689 95,953 Operating transfers - (01) 100,000 75,000 Total other financing uses 3,338,287 2,517,555 and requirements 2,900,000 2,427,802 785,241 785,241 Ending fund balance - - Total Requirements and 4,123,528 3,302,796 Ending Fund Balance 2,900,000 2,427,802 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 14-15 15-16 16-17 Revised 17-18 Proposed Revenue Expenditures 18
Aquatic Center Fund (42) The Aquatic Center Fund was established in 2015-16 to account for the activities of the College's Aquatic facility. I -- 2014-15 2015-16 Resources: Revised 2016-17 Budget Proposed 2017-18 - 26,107 Sales Goods & Services 25,826 27,300-57,069 Fees 61,000 68,400-103,524 Rentals 102,000 124,811-275,000 Transfer From General Fund 275,000 275,000-332,401 Other Income 326,000 356,141-794,101 Total Revenues 789,826 851,652 - - Beginning Fund Balance 33,646 44,611-794,101 Total Resources 823,472 896,263 Requirements: - 616,168 Personnel Services 670,642 731,652-99,678 Materials and Services 119,184 120,000 - - Capital Improvements 33,646 44,611-715,846 Total Requirements 823,472 896,263 Other financing uses: Total other financing uses - 715,846 and requirements 823,472 896,263-78,255 Ending fund balance - - Total Requirements and - 794,101 Ending Fund Balance 823,472 896,263 1,000,000 800,000 600,000 400,000 200,000 0 14-15 15-16 16-17 Revised 17-18 Proposed Revenue Expenditures 19
Clubs Fund (50) The Clubs Fund is a Fiduciary Fund. This fund accounts for transactions of various student groups at the College and their related special events or workshops such as the Ceramics Club and Rho Theta. 2014-15 2015-16 Resources: Revised 2016-17 Budget Proposed 2017-18 87,840 56,466 Fees and Activities 180,000 180,000 28,890 41,218 Beginning Fund Balance 70,000 70,000 116,730 97,684 Total Resources 250,000 250,000 Requirements: - - Personnel Services 11,210 11,210 75,512 67,808 Materials and Services 233,790 233,790 - - Capital Improvements 5,000 5,000 75,512 67,808 Total Requirements 250,000 250,000 41,218 29,876 Ending Fund Balance - Total Requirements and 116,730 97,684 Ending Fund Balance 250,000 250,000 300,000 250,000 200,000 150,000 100,000 50,000 0 14-15 15-16 16-17 Revised 17-18 Proposed Revenue Expenditures 20
Trusts Fund (51) The Trusts Fund is a Fiduciary Fund. This fund accounts for transactions of various activities, collections, and special events such as study abroad opportunities and funds raised for specific programs. 2014-15 2015-16 Resources: Revised 2016-17 Budget Proposed 2017-18 202,243 234,971 Fees and Activities 304,534 304,534 227,509 249,646 Beginning Fund Balance 200,000 200,000 429,752 484,617 Total Resources 504,534 504,534 Requirements: 9,990 12,230 Personnel Services 78,534 78,534 165,116 183,091 Materials and Services 421,000 421,000 5,000 - Capital Improvements 5,000 5,000 180,106 195,321 Total Requirements 504,534 504,534 249,646 289,296 Ending Fund Balance - - Total Requirements and 429,752 484,617 Ending Fund Balance 504,534 504,534 600,000 500,000 400,000 300,000 200,000 100,000-14-15 15-16 16-17 Revised 17-18 Proposed Revenue Expenditures 21
Associated Student Government Fund (52) The ASG Fund is a Fiduciary Fund. This fund accounts for the transactions and activities of the Associated Student Government. Athletics are also included in this fund. 2014-15 2015-16 Resources: Revised 2016-17 Budget Proposed 2017-18 704,946 602,321 Student Activity Fees 608,962 685,000 18,312 15,439 Other Income - Fundraising 5,000 4,500 86,358 108,146 Rentals Miscellaneous 100,000 100,000 3,055 4,058 Investment Earnings 2,000 4,000 812,671 729,964 Total Revenues 715,962 793,500 379,892 436,332 Beginning Fund Balance 399,000 474,500 1,192,563 1,166,296 Total Resources 1,114,962 1,268,000 Requirements: 260,652 286,564 Personnel Services 265,386 310,797 483,579 479,636 Materials and Services 599,576 585,738 12,000 - Capital Improvements 250,000 250,000 - - Contingency - 121,465 756,231 766,200 Total Requirements 1,114,962 1,268,000 436,332 400,096 Ending Fund Balance - - Total Requirements and 1,192,563 1,166,296 Ending Fund Balance 1,114,962 1,268,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 14-15 15-16 16-17 Revised 17-18 Proposed Revenue Expenditures 22
GLOSSARY FUNCTIONAL CLASSIFICATIONS Mt. Hood Community College expends funds for specific functions related to the mission, goals and objectives of the College. Those expenditures are defined by various functions, either academic instruction, or in support functions. Within the support functions, they are further defined as direct support of instruction or general operational support. Some of the financial tables present expenditures classified by these functions. The following descriptions are intended to assist in viewing those proposed expenditures. Instruction This category includes expenditures for all activities that are part of an institution's instruction program. Expenditures for credit and noncredit courses, lower division transfer, professional technical, remedial and tutorial instruction (Developmental Education) and regular, special and extension sessions should be included. Include that portion of expenditures directly attributable to department chairpersons and administrators when acting as an instructor. This category excludes expenditures for academic administration when the primary assignment is administration -- for example, academic deans. Refer to FTE Audit Guidelines, Spring 2014, (published by CCWD) for further information. Instructional Support This category (formerly Academic Support) includes funds expended to provide support services for the institution's primary mission of instruction. It also includes expenditures for activities specifically designed and carried out to provide administrative and management support to the academic programs. It includes the expenditures for academic deans and office operations, library services and research and planning. Community Services This function (formerly Public Services) includes activities established primarily to provide non-instructional services beneficial to groups external to the institution. This includes such activities as concerts, plays, lectures, campus radio station, contributions to transportation systems and childcare provided for non-student members of the community. Student Services Includes funds expended for offices of admissions and the registrar and activities with the primary purpose of contributing to students' emotional and physical well-being and intellectual, cultural and social development outside the context of the formal instruction program. It includes expenditures for student activities, cultural events, student newspapers, intramural athletics, student organizations, intercollegiate athletics (if the program is operated as an integral part of the department of physical education and not as an essentially self-supporting activity), counseling and career guidance (excluding informal academic counseling by the faculty), student aid administration and student health service (if not operating as an essentially self-supporting activity). College Support Services This function (formerly Institutional Support) includes expenditures for activities concerned with management and long-range planning for the entire institution, such as the governing board, planning, programming and legal services; fiscal operations, investments, administrative computing, space management, employee personnel and records; logistical activities that provide procurement, storerooms, safety, security, printing and transportation services to the institution; support services to faculty and staff that are not operated as auxiliary enterprises; and activities concerned with community and alumni relations, including development and fundraising. 23
Facilities Management Facilities Management includes those expenditures required in the upkeep, improvements, expansion, and acquisition of buildings, grounds and other facilities required to operate the College. Components of Ending Fund Balance Contingency A non-spendable account which under Local Budget Law may be accessed during the fiscal year to transfer appropriations to a spendable category account, when the need for such appropriations is approved by the Board of Education. Unappropriated Fund Balance A non-spendable account from which under Oregon Local Budget Law no appropriation can be transferred. The amount budgeted at adoption of the annual budget will be maintained for the fiscal year period. Ending Fund Balance The cumulative excess of revenues over expenditures since the beginning of a fund. The best possible estimates of available Fund Balances will be used when proposing and adopting annual budgets, allowing the most realistic estimate of resources to be used when establishing service priorities for the ensuing fiscal year. OBJECT CLASSIFICATIONS Mt. Hood Community College expends funds for specific items in the execution of the goals and objectives of the College. Those expenditures are defined by various object classifications that define the items on which the expenditure was made. The following descriptions are intended to assist in viewing those proposed expenditures. Personnel Services Personnel services includes salaries, payroll taxes, fringe benefits and miscellaneous costs associated with salary expenditures, such as overtime. Federal program employees and part- time employees are included when figuring personnel services. A total amount for all personnel services must be shown for each organizational unit or program, along with the estimated number of full-time equivalent employees (FTE) ORS 294.388(5). Materials and Services Materials and services includes a variety of expenditures such as materials (office supplies), equipment that falls below the district s threshold for capital outlay, contractual services and other charges (utilities, education and travel). Estimates should be detailed and itemized to disclose all proposed expenditures. Capital Improvements Capital improvements includes expenditures for land, buildings, improvements, machinery or equipment with a useful life of greater than one year and a single item cost that exceeds the district s threshold for capitalization ($5,000). For purposes of estimating expenditures, only a single number for capital is required. There is no need to break out the individual components. Expenditures for Debt Service Estimated expenditures for paying principal and interest on debt incurred by the district are shown with separate estimates for each principal and interest payment by bond issue or borrowing. Each bond issue or borrowing is identified by both the issue date and the exact payment date. 24
EXPLANATION OF FUNDS Mt. Hood Community College s budget consists of several funds. Each fund has a specific use and dollars are earned or received into those funds from specific activities and explicitly for those specific uses. The structural budget deficit is in the General Fund which is also the largest fund accounting for general operations of the College and therefore receives most of the budgetary attention. However, all of the funds combine to make the MHCC annual budget and each plays a critical role in the sustainment of the college. State and local governments use three broad categories of funds: governmental funds, proprietary funds and fiduciary funds. GOVERNMENTAL FUNDS (01-16) Governmental funds account for the ongoing operations of those governmental organizations for which they were established. General Fund 01 The General Fund records financial transactions relating to all activities for which specific types of funds are not required. It is the day-to-day operating fund for the local government. All governments have a General Fund, although they may be called something other than the General Fund. Some small local governments have only a General Fund. All revenue that is not dedicated or legally obligated to a specific purpose should be budgeted in the General Fund. Revenue that would not be budgeted in the General Fund may include property taxes to pay principal and interest on general obligation bonds authorized by voter approval, state gas tax funds dedicated to roads and charges for self-contained enterprises such as water and sewer systems. Bonded Debt Service Fund 02 The Bonded Debt Service Fund was established to account for projected principal and interest on bonds related to the May 2017 election and associated property tax collections. Pension Bond Debt Service Fund 03 The Pension Bond Debt Service Fund was established to account for principal and interest on bonds issued to finance the College s share of the unfunded actuarial liability of Oregon Public Employees Retirement System (PERS). Physical Plant Maintenance Fund 06 The Physical Plant Maintenance Fund was established to provide and account for funds used to maintain the physical plant of the MHCC District. Technology Projects Fund 07 The Technology Projects Fund was established to account for the replacement of changing technological needs of the district. The Technology Fee paid by students is a primary source of revenue for this fund. In 2009, Telecommunications Services was moved from a separate fund into this fund. Capital Projects fund 08 The Capital Projects Fund provides for the capital projects from the May 2017 general obligation bond. Historical expenses are related to prior full faith and credit obligations issued by the district. Revenues are derived from debt proceeds. Student Aid fund 10 The Student Aid Fund was established to account for revenue and expenditures for various programs providing grants, loans or wages for students from state or federal funds. Some of these programs require a local contribution coincident with receipt, which are met by transfers as budgeted in the General Fund. 25
Federal, State and Special Projects Fund 16 The Federal, State and Special Projects Fund is composed of several sets of revenue and expenditure accounts to comply with accounting requirements of projects funded primarily by the federal government, except direct student aid projects. PROPRIETARY FUNDS (40, 42) There are two types of proprietary funds: Internal Service funds and Enterprise funds. The Bookstore and the Aquatic Center are enterprise funds. Enterprise funds are used for services provided to the public on a user charge basis, similar to the operation of a commercial enterprise Bookstore Fund 40 The Bookstore Fund was established to account for revenues and expenditures associated to the sale of textbooks, supplies, general merchandise and other operations. Profits generated by the Bookstore are transferred to the General Fund. Aquatic Center Fund 42 The Aquatics Center Fund was established in 2015-16 to account for the activities of the College's Aquatics facility. FIDUCIARY FUNDS (50 52) Fiduciary funds are used to account for assets held in trust by the government for the benefit of individuals or other entities. Clubs Fund 50 The Clubs Fund was established to account for transactions of College authorized and sponsored student clubs. Trusts Fund 51 The Trusts Fund was established to account for transactions involving funds held for others in a trust or agency relationship. The organization must be closely related to the activities of the College, and College full-time staff must authorize expenditures from funds. Associated Student Government Fund 52 The Associated Student Government Fund was established to account for revenue and expenditure accounts for funds used for student activities. A student activity fee generates the major course of revenue for this fund. 26