Surplus headed to capital fund for buildings; no new educational initiatives or other options for excess revenue discussed

The College ended the 12-month fiscal year on June 30, 2017 with a $2.5 million surplus. When college administrators were asked by representative Deb McCasland how that surplus was to be used, they said it would be applied to future capital projects.

Overall the College explained that “General Fund revenues are projected to be below budget by $208,000 and expenditures are projected to be under budget by $2,736,000. Revenues are lower than budgeted due to lower fall and spring semester enrollments and the gradual reduction of the aviation program. Expenses are less than budgeted due to several factors including unspent contingency funds, vacancy savings, lower non-labor expenditures (i.e. utilities) and the utilization of available Proposition 301 monies (in lieu of General Fund monies).”

The College administrators did not offer the Governing Board any possible alternatives for the use of this excess surplus revenue. For example, to award faculty bonuses or develop additional educational programs. In fact, if representative McCasland had not raised the issue about the surplus, it would have been submerged in the consent agenda with no discussion at all.

You may click here to go to the August 2017 agenda where on page 20 of 154 you will see the surplus.

The Administration’s statement on use of the surplus is below.

Data shows that 98% of revenue to support the general operations of the College come from property taxes and tuition

The Blog is often asked about the source of funding for Yavapai  Community College.  The table that follows shows where the revenue for 2017-2018 is coming from in dollars.  About 98 percent of the revenue comes from County property taxes and student tuition.

The following pie chart was presented to the public by the Community College at the recent budget hearing to explain in percentages where the revenue to operate the College came from. The chart omits secondary property taxes, which are used to pay off the 2000 $69.5 million General Obligation  Bond approved by voters in that year.

New Verde Representative falls in line with West County voting Bloc

The $82.75 million Yavapai Community College budget received typical rubber stamp approval from the District Governing Board at its May 9, 2017 meeting in Prescott.  The vote approving the budget was 4-1 with Deb McCasland casting the only “no” vote. 

Connie Harris

Connie Harris, the newly appointed representative from the Third District in the Verde Valley voted to approve the budget.  This was the first  time in four years a representative from the Third District had ignored the imbalance in funding  between the East and West sides of the County and approved the unfair allocation of funds. President Wills and the West County voting bloc were no doubt delighted with her vote.

Representative McCasland, whose district encompasses about half of the Verde Valley, opposed the budget because of its unfair allocation of resources among the residents of the County and the five percent tuition increase. Ms. McCasland has staunchly supported the residents  of the Valley since she was elected.

STUDENT ENROLLMENT DECLINE NEARING 30%; $10.5 MILLION MORE REVENUE

This is the information the Governing Board will have Tuesday, May 9, 2017 when the five County representatives vote on the 2017-18 College budget. If history is any indicator, the Budget will be rubber stamped by at least the West County voting bloc.

1. The College will lose an estimated $330,000 in state aid because of the decline in the number of students taking accredited classes.

2. The aviation program, which has already lost more than a million dollars in tuition and fees over the past two years, will lose another $160,000 because of the continuing decline in enrollment.

3. Property taxes will not be increased this year. This is the second year in a row the Governing Board has not increased the tax rate. Recall that a majority vote of three on this Board can increase the tax rate on the property taxes of Yavapai County voters. (And there is no oversight and no appeal.)

4.Tuition will be increased by 5%. The Governing Board has increased tuition in some form every year over the last decade. The tuition increases have far outpaced inflation.

5. The new-construction tax will bring in about $680,000 in additional revenue to the College.

6.When comparing student headcount from 2008-09 to 2015-16 (the last formal report from the College) there are 3,894 fewer students taking credit courses. (14,139 vs. 10,245) This is a drop of 27.5% in student enrollment. The decline continued in 2016-17 and is predicted to decline by 4% in 2017-18.

7. When comparing student tuition and fees 2008-09 to 2017-18 the College will be collecting $4,678,500 more in tuition and fees than it did almost a decade ago despite the huge drop in student enrollment. ($6,927,300 vs.  $11,605,800).

8. When comparing primary property tax revenue from 2008-09 to 2017-18 the College will be collecting $8,683,119 more in property taxes that it did in 2008-09. ($35,227,381 vs. $43,910,500.)

9. In 2008-09 state aid accounted for $4,761,000 in revenue coming to the College. It is estimated that in 2017-18  the College will receive about $1,979,100 from state in total support. That is a difference of $2,781,900.

10. Overall, it appears that College has $10,579,719 more to spend that it did in 2008-09 and a student body taking accredited courses that has shrunk by almost 30%.

Awash with taxpayer revenue – Wills’ continues building/spending spreeeeeee

As the Blog has pointed out repeatedly, Yavapai Community College is awash with revenue to spend on construction, reconstruction, renovation, and upkeep. Based on the data furnished to the public on Friday, April 14, it is anticipated the Board will approve a total capital construction/maintenance/upkeep budget of more than $10.1 million at the Tuesday, April 18 meeting at the Rock House on the Prescott Campus.

The following is a breakdown of some of the $10.1 million the Board will authorize in the capital budget on Tuesday:

PRESCOTT CAMPUS: It is anticipated the Board will approve expending $2,596,000 on the Prescott Campus for new construction and renovation. This includes $600,000 for open space improvements that will be spent primarily on an outdoor amphitheater located between Buildings 3 and 4 that is scheduled to begin in July and conclude in August. It will also approve $3,487,500 on what it describes as capital preventive maintenance. This includes spending $825,000 on the baseball field and $275,000 on a breezeway. In total, the Board will most likely approve spending about $5.5 million on the Prescott Campus for capital construction, renovation, and upkeep.

PRESCOTT VALLEY: It is also anticipated the Board will approve spending $3,346,000 on construction and renovation on the Prescott Valley Center. It will also authorize $440,000 for Building 40 roof repair. This brings the total capital expenditures to $3,786,000 to be approved.

CTEC: The Career and Technical Education Center will be approved for spending  $31,500 on various projects.

SEDONA CENTER: The Board will authorize $1,345,000 to complete the renovation of the Sedona Center.

VERDE CAMPUS: The Board will authorize expending $100,000 for Building L Drainage & other maintenance projects.

CHINO VALLEY CENTER: The Board will authorize $55,000 for the Chino Valley Center for various maintenance projects.
The agenda with the budget data can be found by clicking here.

Capital spending inequity between the east and west sides of Yavapai County continues

The College reviewed its tentative 2017-18 capital development budget with the District Governing Board on March 7, 2017. It appears that the Board will approve spending  a total of $5,547,000 on capital projects in 2017-18.

The revenue for the projects will come primarily from property taxes, Proposition 301 sales taxes, and income from investments. About 24% of the expenditure is on the East side of the County for the Sedona Center.  The remaining 76% will be spent on the Prescott Valley Center and improvements on the Prescott Campus.

Here is the breakdown:

• Prescott – building one – visual arts phase 2:                      $304,500

• Prescott – building 15 – arts/music design, construction  $1,692,400

• Prescott – open space improvements –                                $320,000

• Prescott Valley – renovation design, const.                          $1,086,000

• Prescott Valley – land adjacent to building 40                     $460,000

• Prescott Valley – building 40 – second floor                        $180,000

• Sedona Center renovation and construction –                    $1,345,000

• On-campus signage – campus unknown –                            $160,000

• Total capital projects:                                                                 $5,547,900

The discussion during the District Governing board meeting on March 7, 2017 that focus specifically on capital development spending is reproduced below.

Governing Board Modifies past budget but provides County property taxpayers no relief

It is hard to believe that the College over budgeted in the fiscal year 2015-16 by ten million dollars. However, that is what it reported to the Governing Board at its January meeting. In the agenda for that meeting, the College reported in writing it did not spend $3.9 million of its 2015-2016 budget. However, that figure exploded without explanation to $10 million during the College’s presentation to the Board.

Apparently, the College didn’t need the 2015-16 revenue (but said nothing about this during 2015-16) because: (a) It failed to quickly fill employee vacancies during that period, (b) Contingency revenue was not needed, and (c) It had already spent money in 2014-15 for a number of construction projects that were completed or partially completed in that fiscal year but showed up in the 2015-16 budget.

A short three minute edited videotape of the discussion at the Board meeting in January  follows below.