Archive for Budget – Page 10

College reveals dozens of positions eliminated during last three years

By R. Oliphant
Friday, April 17th, 2015

Forty-seven positions eliminated since 2012; didn’t know how many of those were on the Verde Campus

The Community College reported to the District Governing Board at the April 14 meeting that since 2012 it had eliminated 47 full-time positions. Since that time, it has reallocated 18 of those  to fill new positions in the District. It said that the savings from eliminating all these positions was used “for things like offsetting decreases in State Appropriations and self-funding raises.”

layoffsWhen asked to provide information regarding the number of lay-offs on the Verde Campus, the Administration said it did not have that information available at the meeting.

Categories : Budget, Verde Campus

Campus Master Plan to spend $111 million dollars; less than 10% to the Verde Valley

By R. Oliphant
Monday, February 16th, 2015

Campus Master Plan moves ahead; College already identified $67 million dollars to finance it

The Community College Master Plan, approved in 2013 by the old Governing Board, is moving right along. College administrators laid out a request that the Governing Board approve the final expenditures for phase I at the February 3 meeting. (By clicking here, you can go to the Board Agenda and examine in detail the request.)

The Plan currently calls for 44 projects in three phases, spread over 10 years. They include 11 renovation projects, seven new construction, seven open space, six purchases/sales of property, six sign projects, three expansions and two parking projects. 

The Plan’s total cost has jumped from $103.5 million dollars to $111 million dollars. (At one point in 2014 it appeared to be at $119 million.)  Less than ten percent of the Plan is aimed at development in the Verde Valley; about 100 million dollars plus is ear-marked for further capital development on the West side of the County.

The College says it has already found $67 million dollars in taxpayer money and student tuition to finance the Plan. However, there remains a $46 million dollar shortfall.  According to the College, there are three options to produce revenue to cover the $46 million shortfall. They include slowing down, reducing the scope or the Plan or increasing revenues through partnerships, grants, private gifts, property taxes and bonds.

Vice President Clint Ewell will present a proposal for raising revenue for the 2016-7 budget at the Governing Board’s March 3 meeting. He will present a draft of the full budget on April 14. The Governing Board will review and vote on the final 2016-17 budget May 19. An additional story discussing the Master Plan can be found in the Verde Independent written by Arlene Hittle and dated February 7 by clicking here.

A chart, created by the College,  shows the original anticipated expenditures for the first phase of the Plan. It follows  immediately below.

MASTER PLAN PHASE I GOOD COPY

 

 

Categories : Budget, Ten year plan

Enrollment continues to slip

By R. Oliphant
Tuesday, February 10th, 2015

Enrollment at Yavapai Community College continues to slip; administrators say decline since 2011 due to “cuts in scholarships, athletic programs, nursing, and adjustments to other programs”

The YCC administrators said at the January, 2015 Governing Board meeting that “cuts in scholarships, athletic programs, nursing, and adjustments to other programs” are the reasons for the decline in enrollment since 2011.  (Approved minutes of January, 2015 Governing Board meeting.)  However, if reported headcount of students is used as a measure, enrollment has been declining since 2008 when it was at 15,582.  For the 2013-14 academic year, the headcount announced by the College was 11,518.

Despite the reduced headcount, total student tuition revenue has not dropped. The reason for this is that over the past several years there have been annual  increases imposed by the Governing Board.  Also, students who do appear take more classes for credit than previous students.

The Blog believes that if the $1.3 million dollars in student scholarships taken out of the budget in 2012 were restored and used strategically, student enrollment would increase.  No such plan was discussed at the February 2015 Governing Board meeting.

The following chart was created by the Blog based on Annual Financial Records filed by the Community College in June of each year.

Total revenue and headcount chart

Categories : Budget, Enrollment data, Scholarships

Different methods of raising bond money explained

By R. Oliphant
Wednesday, February 4th, 2015

Community College uses variety of bonds to finance capital projects; student tuition helps with payment of Pleadged Revenue Obligation bonds and Revenue Bonds

Many Verde Valley residents are confused over how the Community College raises money for projects by selling bonds.  At the February Governing Board meeting, Vice President Clint Ewell outlined  the different bonds the College now uses.  He said there are three types of bonds.  They are:  General Obligation bonds, Pledged Revenue Obligation bonds, and Revenue bonds.

BondsThe General Obligation bonds are approved by voters and used for capital projects.  The last time voters in Yavapai County approved General Obligation bonds was in the year 2000 when they approved issuance of $69.5 million dollars in bonds for the Community College. 

Rather than seek voter approval for bonds to support a capital project, College administrators with Governing Board approval can issue “Pledged Revenue Obligation bonds. In the annual financial report issued in June, 2014 the College explained that it used this process in April 2011 when the Community College  District issued $14,000,000 of pledged revenue obligations. The $14,000,000 was used to prepay a capital lease and $9,435,487 was used to construct the Prescott Chiller Water Plant and Clarkdale Central Plant.  According to the June, 2014 Community College Financial Report, “Pledged revenue obligations and revenue bonds are repaid from tuition, fees, rentals, and other charges to students, faculty, and others.”

When it came to financing most of the $7 million dollars to renovate two of the student residence halls on the Prescott campus, the Administration with agreement of the Governing Board issued $5 million dollars in Revenue bonds to pay for construction.  This process also avoided asking for voter approval of the project.  According to the June, 2014 Community College Financial Report, “revenue bonds are repaid from tuition, fees, rentals, and other charges to students, faculty, and others.”   

The Chair of the Governing Board theorized that this process seemed like a fair one when it came to the student residence halls.  Under this theory, the user pays for the construction.  The problem is that the user don’t pay enough  in annual annual rental fees to cover the principal and interest.  Therefore, the facilities must be subsidized at least in part by student tuition.  The result is that thousands of students who pay tuition never use the residence halls but  nevertheless pay for their construction.

 In a statement in the June, 2014 Financial Report, the Community College stated the following:   “Annual principal and interest payments on the pledged revenue obligations and bonds are expected to require less than 17.2% of tuition, fees,  dormitory rentals, and bookstore income. In the current year, total revenues of $10,751,131 were pledged to cover the principal and interest paid of $1,846,981.”  [Video to follow when available.]

 

Categories : Bonds, Budget, Tuition

College reports over half million dollar increase in revenue in 2014

By R. Oliphant
Friday, January 30th, 2015

Overall revenues increased by $604,626 in 2014; property taxes and tuition account for 75% of revenue; state puts in 2%

The Community College reported in its annual Financial Report that revenues increased in 2014 over 2013 by $604,626. Tuition and fee revenues increased by 2.2% due to a 2.9% base tuition rate increase being offset by lower aviation program revenue. Aviation program tuition decreased as a result of the revenue distribution formula being modified between the District and its aviation partners.

Property taxes increased slightly due to new construction. Lastly, capital revenues increased by $720,234 due to $471,634 of donations and $248,600 of capital outlay monies received from the state. County property taxes and student tuition account for 75% of the revenue coming into the Community College. The State of Arizona supplies about 2% of the annual revenue coming to the Community College.

 

REVENUE SOURCES IN 2014

Categories : Budget

Student tuition used for capital projects

By R. Oliphant
Friday, January 30th, 2015

Financing Capital projects with tuition SOP with Yavapai Community College

The Community College has looked to student tuition to help repay leases and issuance of what are described as pledged revenue obligations relating to issuance of  revenue bonds without requiring voter input. The Blog has been unable to discover a tuition use policy for the College, something some Colleges have created.

Tuition 2According to data in the 2014 Annual Financial Report that was just released, in April 2011, the District issued $14,000,000 of pledged revenue obligations, which are backed in part by student tuition. The $14,000,000 was used to prepay a capital lease and $9,435,487 was used to construct the Prescott Chiller Water Plant and Clarkdale Central Plant.

On June 13, 2013, the District issued $5,000,000 of revenue bonds to construct, renovate, furnish and equip the residence halls on the Prescott Campus and to make related site improvements.

The District has pledged future tuition, fees, dormitory rentals, bookstore income and other charges to students, faculty and others to repay the pledged revenue obligations and the June 2013 revenue bonds. The pledged revenue obligations and revenue bonds are payable solely from these revenue sources.

The 2014 Annual Financial Report states that annual principal and interest payments on the pledged revenue obligations and bonds are expected to require around 17.2% of tuition, fees, dormitory rentals, and bookstore income. In 2014, total revenues of $10,751,131 were pledged to cover the principal and interest paid of $1,846,981.

The Blog takes the view that student tuition should not be used for capital projects absent a written policy made with the agreement of students. As noted above, the Blog was not able to find such a policy at Yavapai Community College. You may view the latest Annual Report (scroll down to page 37) containing these items by clicking here.

Categories : Budget, Tuition

College alters view of how capital projects financed

By R. Oliphant
Sunday, January 4th, 2015

Voters no longer are sought to provide approval of major capital projects–Community College development has sufficient funds from tuition and property taxes 

Commentary

Commentary

The historic view followed by public education institutions that voters must approve a major capital project via a General Obligation bond  is no longer the Yavapai Community College philosophy. Because of its power to raise property taxes by a three member vote of the District Governing Board and increase tuition at will, the Community College is now able to build major capital projects without asking for voter approval.  This is a huge change in philosophy and means that the Community College is now being run much like a private company. The only difference is that it has a constant stream of revenue coming from County property taxes and student tuition.  Voters have lost almost total control over capital projects.

The old view is expressed in the Community College 1999 Master Plan.  In that plan, the College wrote:   

“As a public community college district, the primary mechanism for renovation and construction projects is the issuance of general obligation bonds approved by the voters of Yavapai County. However, the College’s goal is to maximize the use of other funding sources to support key elements of the Facilities Plan.”

The old philosophy is found throughout that plan.  For example, funding for a new soccer field, a renovated baseball field, and new tennis courts was all to come from donated funds–not from taxpayers. 

Under the new approach, the College has managed to carve out a budget from annual property taxes and tuition so that it can build without voter approval any capital project it fancies.  (Once it was thought by some that using taxpayer money at a publicly funded institution for capital development was unethical.)  For example, without voter approval, it announced a $119 million dollar development project that it intends to finance over ten years from 2014-2024. It never asked for voter approval.

As Dr. Wills stated at the February 2014 Board meeting where the ten-year plan was discussed:   “We are not going out for a General Obligation bond” for any [of the ten-year development plan.]

Vice President Clint Ewell explained at the February, 2014 meeting where the money for the ten-year plan was coming.  He said:  

“Revenues are coming from property tax and savings that we have accumulated over the past few years. . . . On average we are reinvesting about $8 million dollars a year although it ranges as low as $6 million and as high as $12 million in a given year.” (February 2014 Governing Board.)

The implications of this major policy change and operation of the Community College, which began about seven years ago, is troubling.  The College no longer needs to seek input from residents of the County before millions of dollars are invested in major development.  It can invest in any project that it fancies knowing that voters would never approve it.  Residents of Yavapai County are no longer in control of their County Community College.  It has been turned over to bureaucrats who have had no serious opposition from the Governing Board in spending millions of dollars on plant development–rather than faculty salaries, more faculty, and better overall education.  Hopefully, with two new members on the Governing Board, automatic rubber stamping of capital projects will end. 

Categories : Budget, Editorials/Essays, Master documents

Verde Valley Operating Budget

By R. Oliphant
Tuesday, September 16th, 2014

Operating budget for Verde Valley for 2014 is set at $4.4 million; about $2.2 “allocated expenses” added to $4.4 million budget

Clint Ewell

The 2014-15 Yavapai Community College operating budget for the Verde Valley is about $4.4 million.  The College allocates an addition $2.2 million for services it provides the Sedona Center and the Verde Campus.  This brings total operating expenses for 2014 to an estimated $6.6 million dollars.  If primary property tax revenue from the Verde Valley (including Sedona) is at the level collected in 2012, this leaves about $6 million dollars in excess property tax over total operating expenses.

The budget information was provided by Vice President Clint Ewell in an Email to Ms. Ruth Wicks.  The following is the information provided by the College at a department level analysis included in Vice President Ewell’s email.2014 BUDGET PAGE 1 VERDE VALLEY

2014 BUDGET PAGE 2 VERDE VALLEY

 Note that the College reports that there are several “allocated” District Services costs that are incurred to support the Sedona Center and the Verde Campus in Clarkdale. Allocated expenses are not included in the operating expenses outlined above.  Those costs are set by the College at approximately $2.2M of allocated expenses per year.

Categories : Budget, Verde Campus

Low cost of creating administrative college for Verde unveiled

By R. Oliphant
Sunday, September 14th, 2014

College says increased cost of creating independent administrative college in Verde Valley is less that $1.2 million dollars

The estimate by the Yavapai Community College executives that setting up an independent administrative college would cost less than $1.2 million dollars in additional operating expenses came as a welcome surprise. (Recall that Valley residents now pay more than $5 million dollars over current operating costs to run the Sedona Center and the Verde campus.)  If the separate college were approved by the Governing Board, this would put total operating expenses at about $6.3 million dollars for the Verde campus and the Sedona Center.

The estimate was made by Yavapai Community College Vice President Clint Ewell at the Governing Board retreat on Monday, September 8. The chart presented to the Governing Board by Mr. Ewell follows and can also be found on the College website by clicking here: Read More→

Categories : Administrative College, Budget

Theater on Prescott campus lost $680,000 this past year

By R. Oliphant
Sunday, August 10th, 2014

Auxillaries intended to be self-sufficient will lose $871,000; theater biggest loser; taxpayers to make up loss

What if you managed a theater and it lost a half million dollars or more every year over the past five years?  What if you obtained a $5 million dollar loan to improve the seating, lighting, technology, and add a fancy kitchen to the theater?  Then, after all that, you incurred a loss this past year of $680,000?  What do you think would happen to you?  And your theater project?

Well, for Prescott based Yavapai Community College administrators there is nothing to worry about when projects like these lose millions of dollars.  They simply dip into the taxpayer pot of money available to them and make-up for the losses.  No fuss; no concern; for them, no big deal. 

For example, the 1105 seat theater on the Prescott campus, dubbed by campus administrators as the Performing Arts Center, is now estimated to have gone into the hole the past academic year by at least $680 thousand dollars.  The huge loss was incurred in spite of a $5 million dollar renovation project covering the past five years, which was paid for through county property taxes. 

Performing Arts Cernter

The theater, with many programs not reasonably accessible to many County residents outside the Prescott area, continues to lose hundreds of thousands of dollars.

One of the renovation projects many felt was not needed involved installation of a kitchen at a cost of around $750,000 to make the campus theater a  dinner theater. If financial loses are any indication of how well the dinner theater worked, well, it didn’t work. 

Auxiliaries, which are viewed as campus businesses of sorts, are intended to break even.  This past year the Community College auxiliaries, which include the theater,  failed to break-even by $871,000.  Recall that Prescott administrators closed the Sedona Film school, an actual academic program, because they claimed it was being too highly subsidized.  However, it is doubtful they would ever consider closing a nonacademic project such as this theater because, as they see it, it brings culture to the city of Prescott and prestige to them.   Source:  August 2014 Governing Board Agenda with reports.  

 

 

Categories : Budget, Performing Arts Center, Yavapai Community College
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