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Rock Valley College Board of Trustees AGENDA

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Rock Valley College Board of Trustees AGENDA Rock Valley College Board of Trustees Community College District No. 511 3301 N. Mulford Road, Rockford, IL 61114 5:15 p.m., Educational Resource Center Performing Arts Room (PAR), Room 0214 Regular Board Meeting June 28, 2016 5:15 p.m. – Open Session, immediately adjourn to Closed Session 6:00 p.m. – Reconvene Open Meeting AGENDA A. Call to Order B. Roll Call C. Adjourn to Closed Session to discuss 1) The appointment, employment, compensation, discipline, performance, or dismissal of specific employees per Section 2 (c) (1); and/or 2) Collective negotiating matters per Section 2 (c) (2); and/or 3) The lease or purchase of real property per Section 2 (c) (5) of the Illinois Open Meetings Act. D. Reconvene Open Meeting E. Possible Action Items as a Result of Closed Session 1. Recommended Issuance of Notice to Remedy to Faculty F. Communications and Petitions (Public Comment) G. Recognition of Visitors 1. Resolution Honoring National Champion Softball Team H. General Presentations 1. FY 2017 Proposed Budget Presentation – VP / CFO Chris Black I. Board Committee Reports and Presentation of Approved Committee Meeting Minutes 1. Finance Committee – Approved Minutes of May 16, 2016 a. Vital Signs: Payroll; Healthcare Costs; Cash 2. Operations Committee – Approved Minutes of May 16, 2016 a. Vital Signs: Health Sciences Center (HSC) Milestones; CLI Milestones 3. Teaching, Learning & Communications Committee – Approved Minutes of May 10, 2016 a. Vital Signs: KPI Summary Report: Addressing Regional Economic Need b. Enrollment Monitoring Report; Recruitment and Admissions Monitoring Report J. Approval of Consent Agenda 1. Approve Minutes: a. May 24, 2016 Regular Meeting b. June 2, 2016 Special Meeting – Presidential Search Rock Valley College Board of Trustees June 28, 2016 Page 1 of 2 K. Other Action Items 1. Claims Sheet #728 (BR 7306) (Check Register) (Alpha Register) (Monthly Vendor Payments over $10,000) 2. Personnel Report #704 (BR 7307) 3. Purchase Report #706 (BR 7308) a. Purchase Report #706-A – FY16 Purchases b. Purchase Report #706-B – FY16 Addendums c. Purchase Report #706-C – Capital Project Expenses, FY16 and FY17 d. Purchase Report #706-D – FY17 Site Rental e. Purchase Report #706-E – FY17 Software/Licensing/Renewals f. Purchase Report #706-F – FY17 Blanket Purchase Orders 4. FY 2017 Tentative Budget and Setting Public Hearing Date (Attachment) (BR 7309) 5. Resolution Ascertaining Prevailing Wage (BR 7310) 6. Collection Services Recommendation (BR 7311) 7. Beverage Sales Agreement (Attachment) (BR 7312) 8. Rock Valley College Foundation Memorandum of Understanding (BR 7313) L. Other Business 1. New Business 2. Unfinished Business M. Updates / Reports 1. President’s Update 1). Leadership Team Updates 2. Trustee Comments 3. ICCTA Report 4. Student Trustee Report 5. Freedom of Information Act (FOIA) Report 6. College and Community Events Calendar N. Adjourn to Closed Session to discuss 1) The appointment, employment, compensation, discipline, performance, or dismissal of specific employees per Section 2 (c) (1); and/or 2) Collective negotiating matters per Section 2 (c) (2); and/or 3) The lease or purchase of real property per Section 2 (c) (5) of the Illinois Open Meetings Act. O. Reconvene Open Session P. Possible Action Items as a Result of Closed Session Q. Date of Next Regular Meeting: July 26, 2016, 5:15 p.m., Performing Arts Room, Room 0214 Ground Floor, Educational Resource Center R. Adjourn Patrick Murphy, Board Chair Rock Valley College Board of Trustees June 28, 2016 Page 2 of 2 RESOLUTION In recognition of the Rock Valley College Softball Team WHEREAS, for the third year in a row the Rock Valley College Softball team won the NJCAA national championship; WHEREAS, Rock Valley College Softball became only the second NJCAA Division III softball team in history to win three straight national championships; WHEREAS, RVC Softball became the first athletic program at Rock Valley College to win three straight national championships; WHEREAS, six Rock Valley College Softball players were named to the All-America Scholar-Athlete List; WHEREAS, for the third year in a row the Rock Valley College Softball coaching staff was named National Coaching Staff of the Year; THEREFORE, be it resolved that the Rock Valley College Board of Trustees bestows its congratulations to Coach Darin Monroe and all of the softball student-athletes on their tremendous accomplishments and successes during the 2016 season. GIVEN under our hand and seal this 28th day of June 2016. ___________________________________ Chairperson Attest ___________________________________ Secretary FY 2017 PROPOSED BUDGET June 23, 2016 Operating Funds Education and Operations & Maintenance are primary operating funds of the college . Education – Primary operating fund for college, accounting for academic and service programs of the college. Operations & Maintenance – Limited for the maintenance and repairs of building and property. Local board of trustees may make a determination with the budget for the distribution of unrestricted revenues other than local property taxes. The maximum property tax rate is 23 cents for Education and 4 cents for Operations & Maintenance. 2017 Budget: Education Fund - $45.7 million 827,297 ED FUND 01 - FY17 Expenses By Source 1,625 302,029 2,141,406 2,080,648 106,000 51 Salaries 52 EE Benefits 53 Contractual Svcs 15,540,485 24,672,272 54 Supplies 55 Travel/Conf 56-59 Other Exp. 57 Utilities Fund 01 Total Expenses: 45,671,762 58 Capital Outlay 2017 Budget: O & M Fund - $6.3 million 2017 Budget: Operations (1 & 2) – $52.0 million FY 2017 Operating Expenses Decrease $1.2 million from FY 2016 Adjusted Budget . Salaries decrease $740,000 due to anticipated full-year of savings from the elimination of 44 positions offset by an increase of approximately $160,000 in faculty salaries and restoring positions in recruitment and admissions. Benefits decrease $897,000 primarily due to a reduction in anticipated health insurance costs. The savings results from having fewer insured due to staff reductions, changes in the health plan, and additional contributions from faculty. Materials and Supplies are up $201,000 from the prior year due to additional requests for Information Technology, Aviation, and the online tutoring program. This expense category will be reduced during the budget review process. FY 2017 Operating Expenses Decrease $1.2 million from FY 2016 Adjusted Budget (Continued) . Contractual expense are expected to increase $39,000. Software purchase and implementation for recruitment and admissions process improvements adds $216,000 to the proposed budget. Capital expenses are planned to increase $61,000 based on planned replacements for equipment in Education Fund departments. FY 2017 Operations Revenue $47.1 million Major Revenue Sources Total $30.7 million State operating revenues are not budgeted for FY 2017 2013 2014 2015 2016 2017 Change Actual Actual Actual Budget (Adj.) Budget FY16-FY17 Base Tuition $14,391,692 $14,659,440 $14,434,156 $14,378,000 $15,000,000 $622,000 Property Tax 16,610,678 15,452,594 14,562,234 14,184,656 14,347,226 162,570 ICCB Revenues* 5,232,193 5,869,122 6,093,131 0 0 0 Personal Replacement Tax 1,495,393 1,567,218 1,640,382 1,625,000 1,433,475 (191,525) Total $37,729,956 $37,548,374 $36,729,903 $30,187,656 $30,780,701 $593,045 * ICCB Base, Equalization, and CTE Operating Revenues Increase $93,600 from FY 2016 Adjusted Budget . Base tuition revenue increases $622,000. Tuition increases from $91 to $100 per credit hour and estimated credit hours decreases from 158,000 to 150,000. Property tax revenue is expected to increase $162,570. The college is restricted to rate limits in both the Education and Operations & Maintenance funds. Equalized assessed valuation is projected to increase 1.0%. State ICCB revenues are not budgeted for FY 2017. The college received $1.18 million in FY 2016. Actual revenues totaled approximately $6.1 million in FY 2015. Operating Revenues Increase $93,600 from FY 2016 Adjusted Budget (Continued) . Personal property replacement tax decreases $191,500. State overpaid college in this revenue source by $190,000 over two fiscal years. The state will recover the overpayment over a two-year period. Sales and services fees and investment revenue decline by $121,000 and $105,000, respectively. 2017 Proposed Budget Operations Position 2017 Revenue $47,131,746 Expense 51,996,118 Net ($4,864,372) Addressing Operating Deficit . The budget includes 42 vacant positions, including 17 that are not planned for replacement at this time. Depending upon the length of time these positions remain vacant and outsourcing efforts, the college could reduce expenses by $300,000 to $400,000. Analysis of non-personnel expenses in current budget and implementing further budget reductions. Review programs that are not part of the college’s core mission and eliminate those operating at a financial loss. Continued review of expenses for temporary part-time employees and student workers. Financial Condition Operating deficits deplete the college’s fund reserves . At FY 2015 year-end, fund reserves for the college’s operating funds, which are unrestricted, were $13.7 million. The FY 2016 projected operating deficit is $4.9 million, which will reduce the fund reserves to $8.8 million. The college’s policy is for operating fund reserves to be 25% of operating expenses. At FY 2016 year-end, estimated fund reserves will be about 16.9% of budgeted expenses. Rock Valley College Dollars by Payroll Year-To-Date July to December
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