Trustees at Three Rivers College approved what officials consider to be a balanced budget during Wednesday's regular monthly meeting, while discussion of the college's new athletic facility revealed completion will likely not occur by the end of the month.
Chief Financial Officer Charlotte Eubank presented an operating budget of approximately $24 million and a capital budget of slightly more than $5.5 million for Fiscal Year 2019 following closed session discussion of the topic.
"This (operating) budget does include a projected decrease in enrollment of 5 percent again next year, as well as it includes raises for faculty and staff, increases to insurance benefits and level state and tax funding," Eubank said.
The budget states, "Operating revenue is projected at $23,957,417 offset by projected operating expenses of $24,098,292. The remaining $140,875 is comprised of specific one-time purchases to be funded from college reserves accumulated from savings in prior fiscal years."
The one-time expenses to be paid with reserve funds include, "improvements to campus safety, interior and exterior way-finding signage, office furniture, relocation of the college board room, renovation for a practice theatre and the filling in of the pool in student housing," the document stated.
Salary and benefits account for 54 percent of the total operating budget's expenses and increased from last year to reflect raises effective next month.
The specific salary increases range from $1 per hour to 1.5 percent based on the employee's current pay scale, the budget states. Additionally, college-provided health insurance premiums increased nine percent over last year.
Net tuition and fees is the largest source of operating revenue, according to the document, bringing in 44 percent, combined with state appropriations and auxiliary enterprises, such as the college store and student housing, to form the total.
Eubank cited improvements to the local economy and shrinking numbers of high school graduates as the primary reasons for declining enrollment. To combat the issue, Eubank added a slight rate increase.
"Tuition and fee rates increased according to the tuition plan effective with the 2018 summer semester, resulting in a $5 increase to Common Fees, setting the rate at $40 per credit hour. Tuition was held back with no increases," Eubank stated in the budget.
Investments to upgrade and maintain existing buildings and to develop new facilities are included in both the operating budget and the capital budget, the document states, noting "facility operation costs are expected to increase upon completion of the Libla Family Sports Complex planned for the fall of 2018."
The capital budget includes large or long-term projects estimated to cost $20,000 or more.
Eubank said the capital budget, "includes state funding for improvements to the Crisp Workforce Development Center, as well as completion of the Libla Family Sports Complex and a number of other campus projects..."
Regarding the Libla Family Sports Complex, costs of more than $2 million are included in the FY19 budget to fund the remainder of the $10.5 million project. Of the total, $2.5 was funded through a grant.
The $2 million will be paid for using funds from the Three Rivers Endowment Trust in the amount of $1,459,742 and the remainder of Bond Series 16, which is $737,080, according to the budget.
Three Rivers was approved for a state appropriation of $3 million, pending approval by the governor's office, to complete an addition and renovation to the Crisp Industrial Technology Center.
Other capital improvements include finishing renovations on the Westover Administration Building, which began during the 2015-16 fiscal year, additional improvements to sidewalk lighting and landscaping for erosion control, which will be, "funded from college reserves," at an estimated $50,000.
Capital improvement reserves also will fund new roofs and paint for the student housing facilities, in the amount of $127,000 and repairs and renovations to existing facilities, including updates to college emergency systems and parking lot repair at the Kennett Campus, will cost approximately $102,000.
During the President's Report, Dr. Wesley Payne said construction of the Libla Family Sports Complex is progressing at a faster pace than it has in the past. However, he said he does not believe Huffman Construction will reach its deadline at the end of June.
Payne said architects from Dille and Traxel believe the project will more likely be finished at the end of July, which will allow the college adequate time to ready the facility for the 2018-19 Raiders Basketball season.
The next Three Rivers College Board of Trustees meeting will be held at noon, Wednesday, July 18 in the Tinnin Fine Arts Center Board Room.