MINUTES OF THE FINANCE COMMITTEE
UNIVERSITY OF LOUISVILLE BOARD OF TRUSTEES

January 13, 2005

In Open Session

The Finance Committee of the University of Louisville Board of Trustees met Thursday, January 13, 2005, in the Jefferson Room, of Grawemeyer Hall on Belknap Campus, with members present and absent as follows:

I. Call to order

Having determined a quorum present, Chair Pierce called the meeting to order at 2:10 p.m.

Approval of Minutes, October 14, 2004

Mr. Stone made a motion, which Mr. Cogan seconded, to approve the minutes of October 14, 2004. The motion passed unanimously.

II. Action Item: Approval of Continuation of Phased Retirement for Faculty

Provost Willihnganz reported that in February 2003, the Board of Trustees authorized the implementation of phased retirement for faculty for a two-year trial period. The policy allowed faculty members who met certain criteria to retire gradually through a phased reduction in their university workload assignments. Provost Willihnganz provided annual reports to the Board in May 2003 and 2004, which indicated approximately 25 faculty elected to participate in this program. The units have realized some budgetary savings as a result.

Dr. Willihnganz consulted with Faculty Senate leadership and the deans for feedback on their experience with this policy. Reports indicate a very positive experience. Therefore, the University recommends continuation for another five-year period. Mr. McKinley made a motion, which Mr. Stone seconded to approve the

President’s recommendation that the Board of Trustees approve the Phased Retirement Options for University of Louisville Faculty for a five-year period (copy available upon request); and

That the Executive Vice President/University Provost reevaluate this policy in the Fall of 2009 for continuation, discontinuation, or change.

The motion passed unanimously.

III. Action Item: Approval of 2005-06 Housing Rates

Vice President Gifford offered the following information concerning the proposal for Housing Fees for 2005-06. Dr. Gifford reported that her staff had carefully reviewed housing rates as compared to those of other universities in the state. She noted the Director of Housing and Residence Administration consulted with Ryan McKinley, president of the Student Government Association, the president of the Resident Student Association, and the Resident Advisory Council. The recommendation is based upon:

Budget Considerations:

• The Housing and Residence Life Program functions as a full auxiliary.

• Occupancy rates for the residence halls average 92%; apartments average 85% throughout the fall and spring semesters.

• Housing and Residence Life receive all revenue associated with housing bonds.

• Housing and Residence Life will receive all vending revenue (candy, soda, laundry) from machines located within the residence halls

• Expense lines reflect payment of 100% of the data line fee for all residence halls during 2005-2006.

• Housing will pay a $75,000 administrative overhead fee to the university in 2005-2006.

• Housing receives no subsidy from the University.

• Income represents 8% average increase in rental rates for resident rooms and a 3% average increase for apartments.

• Expense projections include $75,000 to recover 03-04 year end contribution to the University, 25% increase in data line expense, $75,000 administrative overhead fee, a 20% increase in student staffing at front desks, and 15-20% increase in maintenance and utilities.

Dr. Gifford presented this material at the Finance Committee workshop January 11, 2005. Mr. McKinley concurred the Student Government Association has reviewed the increases and understood the need for them. Mr. Stone made a recommendation, which Mr. Green seconded, to approve the

President’s recommendation for the following rates for the University of Louisville housing units be approved effective July 1, 2005.

HOUSING RATES

2005-2006

Traditional Halls : Semester Rates.

Miller, Threlkeld, Unitas, Center, Stevenson, West, Wellness, Greek
Double $1,584
Single $2,376

Louisville Hall
Double $1,830
Double with bath $2,058
Single $2,280
3 bedroom suite $1,704
2 bedroom suite $1,932

Apartments : (University Tower Apartments and Medical-Dental Apartments) Semester rates.

Family Rates

The motion passed unanimously.

III. Information Item: Interim Financial Statements for Period Ending
September 30, 2004

Vice President Curtin presented the Consolidated Statements of Net Assets as of September 30, 2004 and 2003. He observed the statements include the University of Louisville, UofL Research Foundation, and UofL Athletic Association. Net assets are up $26 million, which represents a 7.7% increase. He explained deferred compensation expense represents funds the Athletic Association has moved from its reserves to prepare for coaches’ deferred compensation payments when needed.

Vice President Curtin reviewed the Consolidated Statements of Revenues, Expenses and Changes in Net Assets for the Three Months Ended September 30, 2004 and 2003. He reported student fees were up $5 million due to increases in tuition and student enrollment. Research was up 16%. State appropriations were down due to state budget cuts. In response to Mr. Stone’s inquiry concerning Nonoperating Gifts, Vice President Curtin explained this amount represented gifts made to the U ofL Athletic Association for specific projects, e.g., construction. Chair Pierce added that earlier this week, Vice President Curtin thoroughly reviewed the statements and welcomed all board members to attend future workshops, which will be held the Tuesday preceding Finance Committee meetings.

IV Report of the President

Update on Shelby Campus

President Ramsey updated the Committee concerning the development of the Shelby Campus property and a business plan to guide the University as the Shelby initiatives come online. Dr. Ramsey reported administrators met with neighborhood residents on two different occasions. At the request of Councilwoman Julie Raque-Adams, administrators offered a third community forum. Administrators also met with the Home Builders Association. The forums allowed dialogue between the University and neighborhoods. The NIH application for grant funding of a BSL 3 laboratory was due December 29, 2004. The application contained very strong letters of support from Representatives Crimm and Brinkman. Mayor Abramson provided a strong letter of support, as did Governor Fletcher. Dr. Martin noted the Universities of Kentucky and Cincinnati wrote strong letters of support, also.

President Ramsey thanked Senior Vice President Martin and her team in working so diligently through this application process. Dr. Ramsey also recognized Drs. Shirley Willihnganz and Larry Cook for their extraordinary efforts throughout this process.

Senior Vice President Martin recognized the exceptional team effort of all involved. She recognized Dr. Eugenia Wang for her scientific vision for this facility as well as Messrs. Ken Dietz and John James for their architectural contributions to the application. Dr. Martin said the University should hear in September 2005 concerning the status of its application.

For board members interested in learning more about the laboratory, the website address is www.louisville.edu/community/biosafetylab/ . Ms. Worland departed at 3:00 p.m.

Philanthropy Update

President Ramsey reported the University has received over $41 million during the first six months of the current fiscal year. This amount included one very significant gift from the Gheens Foundation. In honor of the Gheens Foundation’s support of the University, Dr. Ramsey recommended the following resolution of appreciation. Mr. Stone made a motion, which Mr. Green seconded, to approve the adoption of the following resolution.

RESOLUTION OF APPRECIATION TO THE GHEENS FOUNDATION FOR ITS PARTNERSHIP WITH THE UNIVERSITY OF LOUISVILLE TO IMPROVE THE QUALITY OF LIFE OF THE CITIZENS OF KENTUCKY

WHEREAS, for nearly fifteen years, the Gheens Foundation has invested in the University of Louisville’s mission to provide excellent academic experiences for the citizens of Kentucky; and

WHEREAS, the University of Louisville deeply appreciates its long and rewarding partnership with the Gheens Foundation in achieving educational enrichment for UofL’s students, faculty, and staff; and

WHEREAS, the confidence and support shown by the Gheens Foundation Board of Directors has communicated respect and loyalty for the University’s initiatives and enabled faculty and students to pursue intellectual excitement; and

WHEREAS, the leadership of the Gheens Foundation has endorsed the University’s vision for a more educationally robust community and through Gheens’ commitments supported the University’s direction; and

WHEREAS, the Gheens Foundation’s unselfish and dedicated philanthropy has provided hope for the citizens of Kentucky for a better quality of life;

NOW BE IT THEREFORE RESOLVED, that the University of Louisville Board of Trustees recognize the Gheens Foundation, its Board of Directors, and its leadership as outstanding citizens and valued partners in this most crucial mission to enrich the lives of all Kentuckians; and

BE IT FURTHER RESOLVED, that the University of Louisville gratefully acknowledges the generous contribution of $1.5 million to the University of Louisville; and

BE IT ALSO RESOLVED, that the University of Louisville expresses its deep appreciation for the Gheens Foundation’s past support and UofL’s strong desire to continue its partnership with the Gheens Foundation for many more years in the future and to expand this relationship even further for the benefit of Kentucky.

The motion passed unanimously.

President Ramsey updated the Board on current state budget lobbying efforts.

V. Adjournment

Mr. Stone made a motion, which Mr. McKinley seconded, to adjourn the meeting at 3:10 p.m. The motion passed unanimously.