The Administration and Finance Area budget hearing minutes as follows:
UTC BUDGET HEARING
FINANCE, OPERATIONS AND INFORMATION TECHNOLOGY
MARCH 20, 2001
Dr. Stacy openeded the budget hearing at 3:00 p.m. by welcoming everyone to
the Finance, Operations and Information Technology budget presentation.
Dr. Stacy explained that at each of the meetings we would look at revenues,
meaning that we make the very best guess of projected revenues. Dr. Stacy
then talked about enrollment income and how this affects the dollar amount
we have to spend and how important it is that we not let enrollment decline
this year. If enrollment continues to decline UTC we will not receive any
new money, potentially, we would have to give back the part from last year
that we were not entitled to. Dr. Stacy went on to explain how privatized
funding from the UC Foundation, restricted as they are, are utilized to
fund special start-up programs, professorships, and scholarships.
Dr. Stacy then introduced Vice Chancellor Richard Brown to present the
Finance, Operations and Information Technology Budget.
Vice Chancellor Brown discussed some preliminary budget information again.
Upon review of the revenue budget and costs going forward for 2000-2001.
The base budget began at $67,274,343 with some increases in revenue items
of $274,000. We had a decrease in revenue of about $65,389 which adjusted
the costs going forward and base budget to $67,476,560 which made it
possible to put about $7,028 toward our fund balance.
Outstanding Budget issues still concerning the State of Tennessee:
Uncertainty of state funding, Income Tax, State Lottery, Tenncare, Teacher
pay across the state, Gier Mediation Agreement and student enrollment,
which still continues to drive the University's budget. In looking at
enrollment issues, we found that we lost students who were already here,
not an issue of new students not coming to the University. We need to
become more sensitive in how we deal with students in order to maintain our
current student base. Some Human Resource issues that will drive the
budget process are compensation plan, peer salaries, cumulative performance
review, equity pay plan, and strengthening of exempt and non-exempt staff
pay. Also, operational costs such as utilities, custodial services and a
compensation plan to continue the preventive maintenance issues throughout
the campus will again impact the budget.
Richard Brown again mentioned that each Vice Chancellor that presents
his/her budget/expenditures back to the mission statement of the
University, and to SACS recommendations, along with the of the
Institutional Effectiveness Committee. The last office to present was the
Chancellor's Office, requesting a $39,311 increase. The Chancellor stated
that his office was primarily a resource gatherer and presented his overall
budget. Vice Chancellor MacDougall presented his budget for the Student
Development Division requesting a little over $88,000 with most of his
request tied to clean-up and fix-up initiatives within the University
Center. He also presented a very excellent budget overview.
Richard Brown then thanked Dr. Stacy for the opportunity to be appointed
and serve as Interim Vice Chancellor for Finance, Information Technology,
and Operations. The primary focus of our administrative initiative is
"Students Are Important." Every process that we perform, we do it with
students in mind. Vice Chancellor Brown also mentioned that all the
presentation materials will be available on the web. Vice Chancellor Brown
then went over the mission statement for the Vice Chancellor for Finance,
Information Technology, and Operations stating that the primary function of
this division is to deliver essential services to the entire campus
community. He then recognized his entire staff for exceptional leadership
and performance as he explained his organizational chart. In addition,
Vice Chancellor Brown recognized John Schaerer, Special Assistant to the
Chancellor for his assistance with the purchase of land and for the south
campus expansion project.
The Office of the Vice Chancellor for Finance Operations is not requesting
an increase this year, and requests a base budget.
The Business and Financial Affairs Division which includes Purchasing is
requesting an increase of $12,406 for the increase within mail services
contract.
Facilities Planning and Management Division is requesting $1,490,000 for
improvements in overall campus landscaping, signage, building cleaning,
custodial services and preventative maintenance. Also, the Facilities
Division is proposing to the Chancellor's staff that a student facility fee
be added in the amount of $25/semester to support student related facility
improvements across the campus. The revenue will be used for hiring
custodians and making other improvements in classrooms, restrooms, and
other high traffic student service areas. Should this facility fee be
approved, Vice Chancellor Brown recommends expenditures in the following
areas: a $170,000 increase ($50,000, for custodians, $50,000 for
maintenance and repairs, $60,000 for a compensation plan, and $10,000 for
special retention rate plan. The facility fee should generate an
additional $400,000 which they hope to spend in the above categories.
The Department of Public Safety is requesting an increase of $61,192 for
retention of sworn police officers and to cover the increased cost of
printing their required crime prevention and statistical reporting
brochure. Vice Chancellor Brown recommends the approval of $39,000.
Parking Services is requesting an increase of $319,028 for a transit
subsidy, parking lot leases, and parking lot development. Vice Chancellor
Brown recommends $27,836 for lot lease development. We hope that the
facility fee will provide $100,000 to allow us to provide an internal
campus shuttle system. In the fall of 2001 we will lose about 711 spaces
due to construction, and will lose another 159 in the spring of 2002 for a
total loss of 870 parking spaces. We hope to put these back in by
expanding parking lot 26, parking along the intramural field, lease a lot
from Hamilton County and take back a lease from University Towers which
will mean an increase of 451 for net loss of 419. The internal transit
system will help with this because with the addition of Engel Stadium we
should gain about 2,000 spaces.
Capital Projects: Capital projects for next three years that we plan to
bring on-line for the campus are: Engineering building 28.8 million, South
Campus Expansion 18 million, University Center renovation 15 million, Engel
Stadium 2.5 million, speciality housing 2.5 million, capital maintenance
projects 1.2 million, roof replacement 1.2 million, Hunter Hall completion
1.6 million, Central Energy Plant improvement 1.3 million, Race/Hooper Hall
renovation 3 million. Other Capital Projects that are working their way
through the system are: Energy performance contract 3 million, Lupton
Library renovation 24 million, new Lab Sciences Building 30.5 million,
Grote Hall renovation 7.8 million, Fine Arts Center renovation and
expansion 10.4 million, and a new Student Services building 8.3 million.
Other Issues: Relocation of the Children's Center, Streetscape of Vine
Street, purchase of land (Engel Stadium, Ortwein property and University
Bookstore).
Information Technology & Communication Services requesting an increase of
$104,000. $54,000 for current staff and $50,000 for tech training.
Approved an increase of $104,000.
Disbursement/Bursar requesting an increase of $16,500 for customer service
training, postage for Mocs express, printing costs for Mocs express, travel
for IRIS, software consulting for Banner, and fireproof safe to meet
federal government standards. Total approved increase of $8,000.
Arena requesting an increase of $5,800 for computer maintenance and tech
support contracts to maintain ticketing and message phone computers, and
off-set increase in motorpool charges. Approved increase of $5,800.
Personnel Services requesting an increase of $3,455 to carry forward
current staff salaries and fill vacant position, $7,030 to continue
employment of retiree as part-time receptionist, $500 for Blue Ribbon Award
expenses, $1,000 increase in travel budget, $3,000 to expand Modelnetics
program, customer service, IRIS, and VMX training, $1,500 for ERC
functions, and $5,000 to renovate and furnish mobile unit for use as
training facility. Total of $21,485 was approved by the Vice Chancellor.
Safety and Risk Management requesting an increase of $2,700 for motor
vehicle operations. Approved for $2,700 increase.
In summary, the division of Finance and Operations has a total base budget
of $11,976,757 the Vice Chancellor is recommending a budget of $12,368,757
the net change would be $391,260.
Professor Bruce Wallace asked if the Art Department was going to get their
own building with the renovation of the Fine Arts Center. Richard Brown
stated that the long-range plan is to build a separate building to house
the Art Department and this is included in the Phase II portion of the
Master Plan. However, the Art Department will be included in the Fine Arts
Center renovation as part of the square footage of the building.
Dr. Stacy thanked Richard Brown, Monty Wilson, and Debbie Parker for the
fine presentation that was presented and commented that it was amazing what
the Finance and Operations area does with the resources they have. Dr.
Stacy stated that our next mission would be to look internally.
Meeting was adjourned at 4:12 p.m. and Dr. Stacy reminded everyone that our
next budget hearing is Athletics and University Advancement on March 29th.
Dr. Berry will present the Academic Affairs budget on April 2nd. At
this time, we will also discuss the Technology Fee recommendations along
with the approved UC Foundation funding.
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