Finance Committee Minutes -- May 14, 2001 -- Board of Trustees -- University of Louisville
Minutes of the Finance Committee Meeting
Of the University of Louisville Board of Trustees
The Finance Committee of the University of Louisville Board of Trustees met on Monday, May 14, 2001 at 2:05 p.m. in the Jefferson Room of Grawemeyer Hall with the Committee members present and absent as follows:
Mrs. Joyce Hagen Schifano, Chair, Presiding
Mr. William P. Mulloy, Sr., Vice Chair
Mr. Kevin D. Cogan
Dr. Richard C. Feldhoff
Mr. Nathaniel E. Green
Ms. Jessica S. Loving
|Absent:||Mr. Ulysses L. Bridgeman, Jr.|
|Other Trustees Attending:||
Ms. Linda Wallbaum Cauble
Mr. Milton M. Livingston
Mr. Carlton Brown
Mrs. Marie Abrams
Mr. T. W. Samuels, Jr.
Ms. Melissa Long Shuter
Mrs. Elizabeth H. Worland
Mrs. Ann Ford Cobb
Mr. Darryl T. Owens
Mrs. Sandra Metts Snowden
Mr. Grant Helman
Mr. J. Chester Porter
Ms. Mary Yarmuth
|From the University:||
Dr. John Shumaker, President
Dr. Carol Z. Garrison, Provost
Dr. Nancy Martin, Vice President for Research
Mr. Joseph S. Beyel, Vice President for Development and Alumni
Dr. Ronald L. Moore, Vice President for Information Technology
Mr. Thomas H. Lyons, University Counsel
Mr. Michael J. Curtin, Director, Planning and Budget
Mrs. Terri Rutledge, Associate Vice President for Finance & Administration
Dr. David Howarth, Associate University Provost
Ms. Rae Goldsmith, Associate V. P. for University Relations
Mr. Bill Nunez, Planning and Budget
Mr. Eugene Gilchrist, Special Assistant to the President
Ms. Trisha Wolf, Board Liaison, President's Office
Mr. Stacy Brooks, Student Government Association
Mr. John Drees, Director of Public Information
Mrs. Kathleen M. Smith, Assistant Secretary, Board of Trustees
Mrs. Debbie Dougherty, Board Liaison, President's Office
I. Call to Order
Having determined a quorum present, Mrs. Schifano called the meeting to order.
- Minutes of March 26, 2001
Ms. Loving made a motion, seconded by Mr. Green, to approve the minutes. The motion passed unanimously.
II. Information Item: Interim Financial Statements
Mr. Owsley shared the Financial Report for the period July 1, 2000 through March 31, 2001. Subsequently, staff noticed a printing error in the report (corrected copy attached).
III. Information Item: Progress Report of Staff Salaries Study
Mr. Owsley reported on the salary review currently underway with Pricewaterhouse Coopers LLP. PricewaterhouseCoopers has conducted eight (8) focus group sessions to discuss compensation issues; approximately 1400 employees, and their supervisors, completed a questionnaire about job functions. PricewaterhouseCoopers will analyze those surveys before making its recommendations. The completion date for this study is set for early Fall, 2001. Trustee Shuter pointed out that benchmark studies have been available regarding faculty salaries, but this study allows UofL to review salary and compensation issues related to staff.
IV. Information Item: Presentation on Facilities Master Plan
Mr. Owsley provided a comprehensive overview of a facilities master plan for the Belknap and Health Sciences Center, advising that an overview regarding the Shelby Campus plan would be discussed during the Executive Committee meeting. He discussed the planning issues of: research, student housing, commercial development, technology, parking, campus renewal, and partnerships. He further outlined the status of the University's commitment to campus renewal, from 1992 to the present date. Of the total $52,026,280 spent on capital renewal, the breakdown is as follows: 32% on renovations; 9% on roofing systems; 35% on mechanical systems, 9% on building interior/exterior upgrades; 1% on site improvements; 3% on electrical upgrades, and 11% on life safety. Responding to a question regarding housing, Mr. Owsley advised that the University aspires to achieve 4,000 to 4,200 students living on campus. After reviewing benchmark institutions and comparing ratios of students in campus housing, UofL determined the median to be 4,000. Responding to Trustee Brown's question regarding a sorority house land ownership (2026 Confederate Place), Mr. Owsley researched and reported the land owner is Sigma Kappa National Housing Corporation.
V. Information Item: Budget Workshop and Approval of Operating Budget Proposal for 2001-2002
Mr. Curtin introduced Ms. Susan Ingram, assistant director for budget and Mr. Bill Nunez, assistant director for planning. He commended these two individuals for their help with this project. Mr. Curtin outlined the general areas covered in the budget workshop (copy attached): Revenue Projects, Expenditure Projections, Challenge for Excellence Phase III. He advised that pursuant to Kentucky Revised Statute, UofL is required to operate within a balanced budget. He will present the final budget draft to the full Board in June; which may have a few slight revisions from the materials contained in this Budget Workshop today. Mr. Curtin made the following key points: tuition revenue is projected to be $86.2 million, an increase of $7.1 million over last year, or about 9% over last year. Ms. Schifano had asked during the last meeting about hospital revenue. Mr. Curtin advised that the UMC agreement has provided about $8 million. These are accumulated funds, and spent as needed, for such things as recruitment packages to attract key faculty. Further points of discussion included:
UofL's overall salary pool is 5% for fiscal year 2001-2002. Of this amount, 3% is targeted for performance-based increases, with the remaining 2% going for benchmark or market catch-up salary increases.
Other Challenge for Excellence items proposed in the budget:
A $3.5 million increase in the student financial aid budget.
A $500,000 increase in library periodicals and electronic media budget.
- In addition to salary increases mentioned above, approximately $1.7 million is available for specific Challenge for Excellence initiatives, which will support graduate student initiatives, enhanced undergraduate initiatives, upgrading the University's library books and periodicals, the enhancement of diversity across the campus, and upgrading the technology infrastructure.
Enrollment projections in the budget are set at 20,700, which indicates a slight decline from the previous year. Dr. Shumaker noted the decline was planned. Responding to Mr. Samuels' question regarding the security of the state appropriation, Mr. Curtin advised that the state is expecting about $250-$300 million shortfall. UofL has a contingency plan in place for each department if a 2% budget reduction is needed. In response to Mr. Cogan's and Mrs. Abrams' questions regarding the tuition increase, Mr. Curtin advised that UofL is close to benchmark institutions in terms of fees charged to undergraduates. Last year, UofL was charging $50 more than UK. Dr. Garrison advised that, nationwide, student tuition and fees are higher at research institutions.
VI. Action Item: Approval of Capital Construction Project
Mr. Owsley presented one capital project for the Board's approval. This project will renovate the current orthodontics clinic laboratory and teaching space into a state-of-the art facility with new technology. Ms. Loving made a motion, which was seconded by Mr. Cogan that the
President's recommendation regarding the following capital project be approved:
Project Estimated Cost Fund Source Orthodontics Lab Renovation $360,000 Private Funds
The motion passed unanimously.
VII. Information Item: Athletic Budget Proposal for 2001-2002
Dr. Gilchrist reported that one of his goals is to provide a balanced and comprehensive budget. He commended the Athletics Department, University Finance & Administration, and Budget and Planning offices for working with him toward this goal. Ms. Schifano expressed appreciation for Dr. Gilchrist's work in this area.
VIII. Other Business and Adjournment
There being no further business to discuss, Mr. Green made a motion, which was seconded by Dr. Feldhoff, to adjourn the meeting at 3:20 p.m. The motion passed unanimously.