Auxiliary Services

CWU Board of TrusteesFebruary 4, 2010

OUTCOMES OF THE PRESENTATION

• Identify the Auxiliary Services Team at Central Washington University and mission

• Discuss processes associated with Housing and Dining Rates and how these auxiliary funds are used throughout the campus (including reserves, preservation needs, and Board of Trustee Approval)

• Revisit the Comprehensive Housing Master Plan and how preservation costs, bond payments, utilities, etc. impact rates and where we are within the plan

• Share information regarding the development of “New Residence Hall” after the approval of the Board for design development and construction documents

• Identify timeline for future Board of Trustees meetings

• Prepare the board for funding discussions regarding the possible bonding of “New Residence Hall”

• Interact with Financial Consultant, Susan Musselman to understand debt policy, “system bonds,” outstanding debt schedules, bond issuance timelines, and bond market updates.

Auxiliary Services Mission

Central Washington University Auxiliary Services is a self-supported and internally funded group that works collaboratively and represents the philosophies and standards of the respective divisions of Business and Financial Affairs, Student Affairs, and Enrollment Management. These divisions work collaboratively and enhance the quality of life for students by delivering superior services in a supportive, student-learning environment.

THE AUXILIARY SERVICES TEAM:

Auxiliary ComputingCatering

Central TransitConference Program

Connection CardCopy Cat Shop

Custodial and LaundryDining Services

Enterprise AccountingHousing and New Student Programs

ParkingPublic Safety

Upholstery ShopWildcat Shop

HOUSING AND DINING RATES

• Housing and Dining rates are proposed by housing and dining advisory boards (student boards) and presented to the Board of Trustees for biennial approval but reviewed annually. Rates for the 2010-2011 have been approved at a 5% aggregate. The previous three years were at 8% to move forward with creating reserves for preservation needs

HOUSING AND DINING• Housing budgets are based on 89% occupancy in the residence

halls (utilizing 30 year historical trends)

• First Year Students are required to live on campus (with minor exceptions); 41% of Ellensburg campus students live in on campus housing

• Housing and Dining constitutes roughly 47% of the gross square footage of the Ellensburg campus

• 21 residence halls, 3 apartment complexes

• Kamola Hall will be 100 years old next year; most halls built in the late 1950s and early 1960s; Wendell Hill Hall opened Fall 2009

• 3 primary dining establishments, 2 convenience stores, 3 coffee shops, and other services such as concessions, etc.

COMPREHENSIVE HOUSING PLANAssumptions include:

--5% increase in housing rates annually (this covers a 3% increase in operating expenses and a remainder for reserves that will allow bond payments, preservation, reserves for future building, and University Debt Policy)*Susan Musselman will discuss debt policy at the end of the presentation

--$750,000 from tuition dollars for maintenance costs, etc.

--a 4% increase each year for preservation items to maintain aging facilities

--The plan is a “living” plan meaning that adjustments can be made and show direct impacts of decisions

Of this amount, the debt policy for the University requires $6.3 million dollars in reserves. In addition, $4 million dollars is held for Wendell Hill costs that we committed so as not to bond more money. This leaves a remainder for any emergency or loss of revenue of $982,015. As a point of reference, a roof replacement costs $350,000. A failed fire alarm system is $600,000.

STATEWIDE RATES

ADDITIONAL INFORMATION

• Architects were hired to complete schematic design and construction documents as approved by the Board of Trustees.

• The new hall is planned to house 366 students and is slated to replace Barto Hall on the same site and open in Fall 2012. Barto will go off line Fall 2010.

• Plans for the environmental classification of the building are being finalized now

• Initial estimates prepare construction cost (escalated) as $34,898,000 excluding bond costs (approximately $300,000 more than originally identified; however, it is still early in planning)

• Rates will be 20% higher than traditional residence halls (mirroring the same rate plan as Wendell Hill Hall)

• Will increase housing capacity by 313 beds (which is necessary to allow for future renovations)

• Schedule will be discussed.

New Residence Hall

ADDITIONAL INFORMATION

• University Housing and Dining Services Continues providing resources and support for multiple entities on campus that help offset costs for those groups—such items include: Discover! Orientation, Wildcat Athletics, University Acceptance Publications, Housing Waivers for Financial Aid, Student Organization travel, Wildcat Wellness Center, Central Transit, etc.

• University Housing and Dining Services is the largest employer of students on campus averaging $1.53 million dollars a year.

• Auxiliary budgets are based on enrollment/occupancy. The budgets are based on 89% occupancy which is our annual average (although we expect a higher number in this year based on current trends). Any lower numbers in occupancy or any additional facility concerns such as those mentioned throughout require Dining Services to contribute to the housing plan through their reserves.

ADDITIONAL INFORMATION

• Off campus market studies indicate housing costs still below most off campus housing options with comparable services (cable, internet, food service, utilities, etc.) Room rate in the residence hall is $380.00 per month which includes all utilities. Dining rates equal roughly $117.00 per week.

• Demand for housing and dining has increased by returning students over the past year. In 2009, we had 975 students choosing to return to University Housing Residence Halls and 300 students to the apartments. We currently have started the very first phase of housing sign ups for next year and will be able to share returning student rates at our next Board of Trustees meeting.

ADDITIONAL INFORMATION

UPDATE ON PROJECT AND BOND ISSUANCE PLAN

OVERVIEW OF SYSTEM BOND STRUCTURE

OVERVIEW OF BOND SALE METHODS AND TIMING