1. budgets
Changed date to 4th Monday in June
Board of Trustees Committee of the Whole Meeting - June 26, 2017
Larry Gawthrop – Chief Financial Officer

2. For Consideration and Vote
Final Amend Budget
Initial Budget
Millage Authorization (Operating, Debt)
Changed dates

3. FINAL FY AMEND BUDGET
General Fund 01
Changed date

4. Final FY16-17 General Fund Budget
Revenues: Overall downward amendment to revenue is $380,375; (-.51%) change from February 2017 amendment.
Tuition and Fees
$621,000:
Error in calculation with conversion to BudgetPak.
Property Taxes
$478,000:
Reclassification to State Aid revenue.
State Aid
$468,000:
Reclassification from property taxes, slight adjustment for overestimation on Renaissance reimbursement.
Changed date only, needs to be updated

5. Final FY16-17 General Fund Budget
Expenditures: Amended upward by $842,000; (1.15%).
Salary & Fringe Benefits
Contracted Services
Transfers
$324,000:
Course section management & release of open position pool offset by the lump sum payout.
$312,000:
Vacant positions filled by Kelly temps and increase in professional fees.
$884,000:
Transfer to Maintenance & Replacement & reserves. Offset by lump sum.
Changed date only, needs to be updated

6. Final FY16-17 General Fund Budget
SUMMARY
15-16 Actual
16-17 Amend #1
16-17 Amend #2
Revenues
$ ,259,584
$ ,942,137
$74,561,762
Expenditures
73,924,785
73,459,022
74,301,066
Surplus/(Deficit)
334,799
1,483,115
260,696
Budgeted Increase in Net Assets
0.00
250,000
Final Surplus/(Deficit)
1,233,115
10,696
Net Assets– Beginning
$ ,607,341
$ ,901,017
$6,942,140
Net Assets – Ending
$ ,942,140
$ ,384,132
$7,202,836
Net Asset Balance Percent*
9.39%
11.4%
9.69%
Column 1 from YE spiral bound fin stmt, Column 2 from K Drive 2015/16 Final Files, Need numbers for Column 3
* Target = 5% - 10% of expenditure budget

7. Reserves Required by Board Policy #3930
Fund 01 72 78
Fund Name
General Operating Reserve
Maintenance & Replacement Fund
Building & Site Fund
Requires
5-10% of annual operating expenses
1-3% of College depreciated assets or $910 million
16-17 Amend Budget Reserve
9.69%
$2.3 million
$1.5 million
Amount Needed to Fully Fund
$430 thousand
$1.23 million
Use Net depreciated assets.

8. Recent Financial & operating trends
Changed date

9. Funding Sources 2017 -2018 State Aid Tuition Property Taxes
Changed date

10. THEN and NOW State Funding State Funding $15,813,494 $16,229,838
Use Amend 2 budget info
State Funding
$15,813,494
State Funding
$16,229,838

11. Projected Property Tax Funding FYE 2010 through FYE 2018
($19.4 Million lost between 09/10 and 13/14)
$3.1 M
$1.3 M
$1.3 M
$500K
Update current year’s numbers. What is the source of the data? Added column for 2016/17

12. Percentage of TOTAL FUNDING: Property Tax and State Aid
Purpose is to show percentage of funding that has to be made up with tuition? What is source of date? Added 6/2016 column

13. Salaries/Benefits as % of Budget
See narrative for 15 #s

14. Tuition & Financial Aid
Total aid comprises 82% of MCC’s total tuition revenue (FY ended 6/16)
NEED TO UPDATE

15. Proposed Fiscal Year 2017-2018 Budget
Changed date

16. Relevant Board Policies
Budget revisions will be brought forward for Board action as necessary, but not less than twice per year.
3100 Budget Adoption
The College will designate and set aside appropriate fund reserves to support plans for long-term capital and operating commitments
3920 Financial Stability & 3930 Fiscal Reserves
The Board has determined based on long-term budget projections, and other related budget data, that total compensation/ benefits should not exceed 77% of the total operating budget
5100 Compensation Philosophy
No change

17. Strategic Plan 7-0 Budget/Finance 7-1
Focus on controllable revenues and costs to sustain our current reputation and facilities and provide funding for strategic priorities
7-2
Maintain short and long term budget and finance priorities that provide a balanced approach to the needs of a learning organization with the flexibility to realign resources
7-3
Continually review the comprehensive strategy that addresses the long term deficit which enables us to provide affordable high quality education
7-4
Continue to provide relevant and accurate financial information to college stakeholders in a timely manner in order to facilitate effective decision making, maximizing student success
7-5
Seek and cultivate alternative resources to supplement and/or increase existing revenue streams and funding sources
No change

18. Proposed FY17-18 General Fund Budget
Revenues – Key Assumptions
Tuition and Fees
Property Taxes
Grants & Other
($350,000):
enrollment decline
$177,000: property taxes
$325,000: future funding transfer
Need update. Only change date

19. Proposed FY17-18 General Fund Budget
Expenditures – Key Assumptions
Salaries and Fringes
Transfers
$821,000:
Restore open positions, step increases, minimal increase in health insurance (hard cap),
blended MPSERS rate
$799,000: budgeted minimum transfers to reserves. Decreased compared to 16/17 final budget which included Designated Transfers

20. Initial FY17-18 General Fund Budget
16-17 Amend #2
Initial 17-18
Revenues
$ 74,561,762
$ 74,650,867
Expenditures
74,301,066
74,392,350
Surplus/(Deficit)
260,696
258,517
Budgeted Increase in Net Assets
250,000
Final Surplus/(Deficit)
10,696
8,425
Net Assets– Beginning
$ 6,942,140
$ 7,202,836
Net Assets– Ending
$ 7,461,353
Net Asset Percent*
9.69%
10.03%
Needs update. Only changed header date
* Target = 5% - 10% of expenditure budget

21. Proposed “Other Funds” FY 17-18 Budgets
Designated Fund (Fund 02) $4.7 Million Revenue Budget
Scholarships, Student Enrichment, Copy Machines, Paid Parking, Designated Technology Fee, Future Funding, Student Success and Professional Development
Auxiliary Enterprise Fund (Fund 03) $861,000 Budget
$500,000 Net “Profit” Supplements General Fund
Catering, Vending, Bookstore, Computer Lab Printing, Day Care and College Initiatives
Needs update. Only changed header date

22. Proposed “Other Funds” FY 17-18 Budgets
Debt Retirement Fund (Fund 73)
Millage rate stayed the same at 0.82 mills to meet debt obligations
Capital Fund (Fund 72) repair, upgrade of buildings, equipment, technology & vehicles
Instructional Technology Fee = $1.36 Million per year
$797,000 per year planned transfer from General Fund (minimum required annual expenses plus reserves)
Building & Site (Fund 78)
$500,000 planned transfer from General Fund
Needs update. Only changed header date

23. Projected Reserve Balances
June 30, 2014
Actual
$6,287,873 GF
$750,000 Rainy Day
$3,226,911
Capital Reserve
Balance $10,264,784
June 30, 2015
$250,000 GF
$0 Rainy Day
($232,998) Capital Reserve1
Balance $10,351,927
June 30, 2016
$334,799 GF
$100,000 Capital Reserve
Balance $12,224,854
June 30, 2017
Projected
$260,696 GF
$2,128,000 Capital Reserve
Balance
$14,380,552
June 30, 2018 Projected
$600,000 Capital Reserve
Balance $15,230,552
1Lapeer Installment Purchase Payment

24. Questions?
Changed date