Residence System Proposal for 2006-2007 Academic Year



Residence System Governance Report for 2015-2016 Academic YearUniversity: IOWA STATE UNIVERSITYFIVE YEAR PLANS FY16 – FY20 – Please include an explanation of any variances from prior plans in the executive summary.Five Year Plan Executive SummaryDepartment of Residence (DOR)Iowa State University continues to experience strong enrollment. Due to a record freshmen class size and solid retention rates to on-campus housing, the DOR opened the fall 2014 semester with 12,237 residents – the highest occupancy on record. The growth in occupancy continues to outpace enrollment growth. Since 2005 enrollment has increased 34.9% (from 25,741 to 34,723) while on campus housing occupancy has grown 54.7% (from 7,909 to 12,237). Reasons for this increasing interest in University-owned/managed housing are many-fold, including higher GPA’s, higher persistence, leadership positions/development, and student friendly contract terms that allow for participation in practicums, internships, graduations, and study abroad opportunities. For fall 2014 requests for on-campus housing exceeded permanent capacity by over 1,700 beds. To serve this demand, 436 spaces in residence hall dens, typically used as gathering space for floor residents, were again used to house residents on an interim basis. Board of Regents permission was also sought and received to extend the original lease of 495 off-campus bed spaces as well as 564 spaces in West Ames, resulting in a total of 1,059 bed spaces. Despite utilizing these spaces, over 225 returning students who contracted for housing with the DOR after March 1, 2014 were not offered housing. The DOR also made programmatic changes to manage increased occupancy and changing on-campus demographics. Specifically, once it became clear there would not be enough residence hall space to accommodate all newly admitted, first-year students, Frederiksen Court building 81 was allocated as an exclusively freshman community.Student leaders have agreed to allow the DOR to continue the use of residence hall dens as interim housing, but have specified that the number of spaces used be decreased from 436 to 329, which eliminates the use of dens in buildings with little or no common area space. To manage this decrease in available den space and to accommodate the projected retention of current residents and enrollment growth, which is anticipated to increase at a steady and stable rate, the DOR put forward a plan to augment capacity by leasing additional bed spaces in the off-campus community. In December of 2014 the Board of Regents, State of Iowa approved the construction of a new residence hall as a permanent solution to serving at least 700 more students each year. Ground-breaking for this facility is scheduled for May 11, 2015 with an expected occupancy for spring semester 2017. Demand is still forecasted to exceed permanent capacity by over 1,094 beds for fall 2017. The desire is to return dens to use by each community and use off-campus leased beds as the flex space. This strategy will be implemented only so long as there is no substantial negative net financial impact. ISU DiningISU Dining has been able to maintain a high level of meal plan participation in both required and voluntary spaces, while managing to keep rate increases between 0 -1.5% over the last three years. Dining’s focus over the next five years will be to continue providing meal plans and retail services that meet the students’ desire for value, choice, flexibility and convenience while making every effort to keep costs reasonable for students.ISU Dining will continue to engage in discussions with customers through the following areas:ISU Dining Student Board (formally Food Committee)Residential Managers attending house meetingsInter-Residence Hall Association (IRHA)Government of Student Body (GSB)Graduate and Professional Student Senate (GPSS)Faculty SenateP & S CouncilMeeting with the Deans of each CollegeAnnual Review with ISU Dining Advisory BoardSuggestion boxes/forms#ISU HealthySelfieThe current program has received positive feedback from students, and they strongly support the flexibility of the meal plan offerings. The peak lunch time period is still challenged to meet the demand for service and seating. Dining continues to investigate solutions for both issues and is currently pursuing the renovation of existing, vacant space in Friley Hall for a new dining location called “Friley Windows”. In addition to providing solutions for growing demand, ISU Dining will be evaluating and developing solutions to address infrastructure improvements to the Bakery, the Central Commissary and the Food Stores warehouse. All of these areas provide support to the residential and retail locations on campus and also need attention to address stresses created by increased enrollments. Vending will be reviewed for infrastructure and equipment needs for the future. During 2015, ISU Dining will be searching for a new director after the recent retirement of Nancy Keller. This opportunity will generate changes during the next five years, as a new director brings their own vision and goals to the organization. The priorities discussed in the first paragraph will remain, but paths to these goals may look different under a new director.Enrollment and Occupancy Projections – see Excel “Five Yr. Plan” tabEnrollment (headcount) projections per year Total operating capacity for residence halls and apartments (current and planned changes including any new construction, leased facilities, etc.)Residence hall, apartment, and total occupancy projections per yearOccupancy ratiosFive Year Plan - Enrollment and Occupancy Projections (See attached Forecasts and Five Year Plan.)Official enrollment projections are provided by the Registrar’s Office and the Office of Admissions and are the basis for DOR occupancy projections. Numbers currently indicate enrollment will reach 35,749 by fall 2019. This is an increase of 1,017 students when compared to fall 2014.Occupancy projections are based upon historical capture rates of projected NDHS (New Direct from High School) and New Transfer student enrollment and historical retention rates for current students. By fall 2019 occupancy is anticipated to grow to 12,647 – an increase of 410 residents when compared to fall 2014 numbers.ISU Dining uses DOR occupancy projections to determine mandatory meal plan purchases and historical purchase data in voluntary meal plan areas.Significant Policy and Program Considerations:Strategies to increase/maintain occupancy and if applicable, plans to address occupancy in excess of capacity.Potential new programs that may impact policies and/or business practicesOther policy considerationsUNI Only – provide an update on the Two-Year Advantage Plan Five Year Plan - Significant Policy and Program ConsiderationsDepartment of ResidenceOccupancy in University-owned/managed housing continues to be the best indicator of student satisfaction. For the 10th straight year occupancy has increased. Official University enrollment projections for New Direct from High School Freshmen and New Transfers, along with a strong history of returners to on-campus housing indicate that demand for on-campus housing will continue to exceed available permanent space for the next five years. Projected Demand2015 2016 2017 2018 2019 NDHS # (95.7%)5,850 5,750 5,742 5,817 5,743 NDHS Capture5,598 5,503 5,495 5,567 5,496 NEW-TR # (43.9%)1,900 1,850 1,850 1,850 1,850 NEW-TR Capture834 812 812 812 812 Total New6,432 6,315 6,307 6,379 6,308 Undergrad Returners (57.9%)7,084 7,293 7,175 7,068 7,056 Special, Grad, & Prof. (Static)531 531 531 531 531 Total Returner7,615 7,824 7,706 7,599 7,587 Total Projected Demand12,773 12,888 12,765 12,715 12,647 .Projected Permanent Capacity2015 2016 2017 2018 2019 Permanent Residence Hall Space7,169 7,169 7,869 7,869 7,869 Permanent Apartment Space3,802 3,802 3,802 3,802 3,802 Total Permanent Capacity10,971 10,971 11,671 11,671 11,671 .Projected Variance2015 2016 2017 2018 2019 Projected Demand12,773 12,888 12,765 12,715 12,647 Projected Permanent Capacity10,971 10,971 11,671 11,671 11,671 Spaces Available or (Needed)(1,802)(1,917)(1,094)(1,044)(976)For fall 2015, demand is forecasted to exceed permanent capacity by 1,802 beds. At the request of the Inter-Residence Hall Association (IRHA) the DOR will reduce the use of den spaces used as student housing from 436 to 329. This reduction will occur in Birch-Welch-Roberts and Helser halls as these buildings lack additional common are space for residents to gather as a community. IRHA also asked that DOR allow students assigned to dens the ability to stay the entire academic year, rather than our current practice of moving them out semester break. The loss of this den space is proposed to be offset by leasing an additional 395 off-campus apartment beds. Should freshmen and/or transfer enrollment exceed the forecast, or should return rates increase, DOR will need to evaluate current practice on how to allocate assignments.Current leasing rates from the private managers are assessed for a full 12 month period. To replicate the on-campus experience, the DOR contracts students into these spaces only for the nine month academic year while also furnishing the apartments, covering all utility costs, and providing staff and programs. So the leases can operate as a stand-alone strategy to serve demand with negative net revenue, rental rate is higher than other on-campus apartments. This revenue, coupled with the positive net revenue from utilizing dens, allows the DOR to serve the demand above capacity with close to a zero net financial impact on the system. DOR is proposing consecutive leased apartment rate increases of 8% for FY16 and FY17, which is lower/comparable to rate increases in the off-campus market. These increases will create a dynamic where leased spaces can operate at, or very close to, break-even. The ultimate goal is to have the leases cash-flow and to eliminate the use of residence hall dens as student rooms.In the Schilletter-University Village area, the DOR currently bills residents for electricity usage by apartment resulting in annual, SUV, electricity income of approximately $150K. This process requires a DOR maintenance employee to manually read individual electricity meters. A second DOR clerical staff member then calculates usage and manually enters bills onto individual resident accounts. To gain efficiency the DOR is eliminating this process and folding the cost of monthly electrical usage into the rental rate and is proposing a rate increase of 2.0% for FY16. As a result of this change, and to simplify billing for SUV residents, the monthly billing option will be discontinued. Rent will be billed on a semester basis only, as is standard in all other university housing.Significant renovations are planned within facilities. Friley Hall is currently 50% sprinklered with the remaining sections of the building scheduled for completion over the next two summers. Friley is the last residence hall needing sprinklering. Over the next five years all windows will be replaced and every restroom fully renovated, including enhanced disability access, in every residence hall over 20 years old. All apartments over 20 years old will also have new windows and roofs within the next two years. These investments will occur in addition to life-cycling common area and student room paint, flooring, and furniture plus a $2M set aside to address the 40,000 work orders received annually. ISU DiningISU Dining is making no significant changes to the meal plans offered for FY16. The Semester Plans have been successful. In looking at Meal Plan Participation (percent of meals offered that were used). Fall semester meal plan participation rose from a fall 2013 average of 79% to a fall 2014 average of 82%.Rates were developed and proposed to the students following a cost saving/expense cutting exercise, intended to minimize the rate increase. This exercise resulted in a 3.5% increase proposal. The students were assured that there would be no appreciable decreases in services or program quality caused by the cost saving/expense cutting exercise.Students continue to express a desire for quick meal options. As such, satisfaction with flexible take out options remains high. These options include the meal bundle options offered in seven retail operations, the To-Go container program available in the residential dining centers, the WebFood? on-line ordering system, and the kiosk ordering locations. These programs have increased the speed of service in several areas. Conversations, a hybrid facility, operates as a retail area 7:30 am – 10:00 am, as an All You Care To Eat (AYCTE) location 10:00 am – 7:00 pm, and then reverts back to retail 7:00 pm – 11:00 pm. This location also offers WebFood? in the evening and services to fulfill Athletics needs for a snack program. This hybrid approach addresses multiple needs and has been very successful. Conversations has had an increase of 20,000 customers in the first four months of extended late night and WebFood? services.Overall ISU Dining revenues remain strong. This can be attributed to larger than forecasted enrollment and occupancy resulting in a higher than projected customer base for ISU Dining. ISU Dining continues to be challenged by large lunch crowds in the residential dining centers and retail establishments. Previously established initiatives (to-go-containers, continuous service in residential dining, WebFood?, and meal bundles in retail areas) will be continued. In addition, ISU Dining is investigating other options to mitigate student wait times such as educational marketing campaigns- to encourage students to come to lunch during less busy times and signage - to inform students how long the wait time will be from various points in the entry lines. ISU Dining is also looking forward to the opening of an additional dining space, called Friley Windows, in fall of 2016.Plans for Renovation/Construction of FacilitiesProvide update on current and planned construction projects, and projects under consideration.Include an update of deferred maintenance and fire safety issues (include update on sprinklers)Explain any significant changes from prior plans presented to the BoardFive Year Plan for Renovation/Construction of FacilitiesOfficial enrollment projections indicate increasing enrollment for the next five years. As a result, new surplus cannot be fully committed to additional projects until the need to expand housing capacity to meet this projected growth has been studied. In addition to funding increased capacity, restroom renovations, student room furniture additions, window replacement, and HVAC upgrades are all potential projects for surplus funds.Department of Residence Projects SummaryFY14-FY16 – Installation of a sprinkler system in Friley Hall began in summer 2013 and scheduled for completion fall 2017. Following the completion of these projects, all residence halls will be fully sprinklered.FY14 – Friley Hall – Sprinkler Installation-Phase 2 of 4FY15 – Friley Hall – Sprinkler Installation-Phase 3 of 4FY16 – Friley Hall – Sprinkler Installation-Phase 4 of 4In conjunction with sprinkler installation, all T12 hallway lighting will be replaced with higher efficiency T8 fixtures.Projects for FY15 include the following: Frederiksen Court Life CycleSchilletter Village Disability RampsUniversity Village Gas Line ReplacementsUniversity Village Fences, Patios, Roofs, and Windows Wallace-Wilson Outdoor PavilionElevator Upgrades in Larch, Linden, Wallace, and WilsonLarch Building Renovations and Furniture ReplacementsHall Director Apartment renovations in Friley, Barton-Lyon-Freeman, and Wallace-WilsonProjects currently budgeted for FY16 include: Elevator Upgrades in Barton, Freeman, and MapleFriley Sprinkler Installation Phase 4Schilletter-University Village roof, window and siding replacements The new Residence Hall (Buchanan 2) is anticipated to break ground in May 2015 for opening spring 2017. This facility will house approximately 700 students.ISU Dining Projects SummaryDuring FY15, a small fire in the Union Drive Marketplace escalated the completion of a new concept in that location. Simple Plate project opened this year, but was not originally part of the capital plan. This venue offers a daily vegan option, and no gluten containing ingredients are used at Simple Plate. Most recipes in this venue do not use artificial colors/preservatives. The food is pre-portioned, so students don’t have to think about whether or not they are consuming the appropriate portion size.Friley Windows is a new dining location that is currently projected to open fall 2016. This project will be funded through a combination of bonding, reserve funds and retailer leases. All additional capital funds for FY16 are planned to address: venue changes, lifecycle paint, carpet and flooring, and large equipment replacement throughout various locations.Seasons Marketplace will be moving forward on a Cooler replacement project of $240,000Sprinklering of the Wallace-Wilson old kitchen space, Friley Food Stores, and Friley Windows is in FY16Five Year Breakdown of Reinvestments – Dining UpdatedImprovementsFY15FY16FY17FY18FY19DOR - Fire Safety $ 1,750,000$ 1,750,000$ 0$ 0$ 0DOR - Building $ 11,574,896$ 6,837,036$ 8,707,172$ 9,338,294$ 9,717,361ISU Dining $ 1,777,049$ 2,410,000$ 724,000$ 750,960$776,798By FY17 all Fire Safety improvements, including sprinklering of all resident spaces, will be complete. No additional projects have been identified at this time.Financial Forecasts for the Next Five Years - see Excel “Five Yr. Plan” tabInclude assumptions on which forecasts are basedInclude projected bonding and use of renewal and replacement fundsFY15 estimated should be the same as presented in the preliminary budget. FY17 – FY20 should use current dollar values without considering inflation Identify significant financial issues over the next five years and plans of actionFive Year Plan – Financial Forecasts for the Next Five YearsIn general, expenses for both ISU Dining and the DOR are forecasted to increase by approximately 3-4% annually in most expense categories. Salary expenses are budgeted to increase by 3% annually for professional and scientific staff. Merit salary increases are based on current merit contract requirements. Department of ResidenceDue to external market competition, numerous off-campus housing options are available to students and the DOR continues to maintain rates that are competitive with off-campus housing (see section 2 - PROPOSED RATE CHANGES FOR 2015-2016 ACADEMIC YEAR). For FY16, occupancy demand has been forecasted at 12,774. This reflects the projected occupancy based on past capture of NDHS students as well as historical retention rates. Beginning in FY16, permanent capacity projections remain static at 10,971, which reflects 100% occupancy of all permanent DOR spaces (no interim den spaces or leased off-campus apartments are included). While not desirable, interim den spaces will continue to be used as overflow spaces if occupancy exceeds capacity. Beginning in FY16, den spaces will no longer be used in Helser, Birch, Welch or Roberts Halls. The remaining 329 den spaces will be available to students for the entire academic year as opposed to just fall semester. The continued leasing of off-campus apartments is also a viable option for accommodating higher-than-anticipated occupancy in future years. The DOR will add approximately 700 new beds in a new residence hall near the current Buchanan site beginning in either fall 2016 or spring 2017. Per the current contract, Odyssey of the Mind will hold the world competition at Iowa State University during May 2016 and additional projected revenues of $740,000 for DOR and $390,250 for ISU Dining have been added in FY16. If the contract is renewed for future years, additional projected revenues will be added as appropriate.Funding for capital improvements and fire safety issues in the residence halls and student apartments for FY16 through FY20 will come from annual net revenues deposited to the Surplus Fund. Funds will be committed as revenue is earned and adjustments made to previously planned projects as necessary. This protects reserves and helps to maintain a favorable debt ratio in the event that forecasted revenues are less than projected. Should additional funds become available, projects to improve Life Safety, windows, HVAC systems, and restrooms will be the top priorities. The DOR will solicit input from students when determining what projects to complete. The Department of Residence leased off-campus apartments for FY14. An option to extend the current lease agreements has been exercised with American Campus Communities (119 Stanton Avenue) and Jensen Property Management (Maricopa Apartments). Negotiations are currently taking place with Jensen Property Management to lease 395 additional spaces in West Ames. In December of 2014 the Board of Regents, State of Iowa approved the construction of a new residence hall as a permanent solution to serving at least 700 more students each year. Ground-breaking for this facility is scheduled for May 11, 2015 with an expected occupancy for spring semester 2017. In addition, ISU Dining is expanding operations into the old Friley Dining space. Project estimates for both projects combined will result in a bond of approximately $60 million.ISU Dining The factors effecting ISU Dining’s forecasting include occupancy and enrollment projections, the financial situation at the University and in the surrounding communities, the coverage of bond debt ratios, the building improvement needs of the department, and the expressed wishes of the student population. This information is gathered from university departments, outside vendors, IRHA and other student groups, and by looking at financial factors such as HEPI and CPI. In FY16 ISU Catering will no longer be serving the Jack Trice Stadium Suites, Press box or Club Section. After reviewing the financials associated with this service, ISU Dining made the decision to no longer pursue this option. The management contract for the Iowa State Center, including the catering agreements, will be bid in the summer of 2015. It is unclear whether ISU Dining will continue to support the facility so the $1.3M in sales associated with this service has not been budgeted. Additionally, a programmatic review of vending services is currently being conducted to determine whether ISU Dining will make any changes.The following revenue increases have been forecasted over the next five years:Meal plan increases between 3 – 3.5%, with most years at 3%Catering increases of 3.5%Retail increases of 3.5%Minimal interest income changeExpenses are generally forecasted to increase at a rate of 4.0% over the five year period. Commissions were based on the percentages paid by each area on budgeted revenues.ISU Dining’s actual food costs continue to hold steady in a very tough market. A review of the Consumer Price Index (CPI) indicates that the price of food will increase 2.4%. ISU Dining is able to maintain some control over food expenditures through the ISU purchasing bid process that obtains annual, semester, and short term contracts. A prime vendor agreement with Martin Brothers, for all three BOR campuses, allows Martin Brothers to negotiate manufacturer benefits that are passed on to the schools. ISU Dining used 30% for forecasting overall food costs and intends to hold this rate steady for the next five years. ISU utilities are expected to have no increase except for water/sewer, which will increase 5.0%. Utilities supplied by non-ISU sources are expected to increase by 5.0%.PROPOSED RATE CHANGES FOR 2015-2016 ACADEMIC YEAR - Please include supporting information pertinent to the establishment of the proposed rates in the executive summary. An Excel template is not attached due to the uniqueness of prior rate proposals. Please create an additional file(s) as necessary and include application fees to be charged during 2015-16 in the matrix.Proposed Rate Change Executive SummaryDepartment of ResidenceThe DOR has proposed the following rate increases for FY16:3.0% in Residence Halls. 3.0% for student apartments at Frederiksen Court.2.0% for student apartments at Schilletter / University Village8.0% for off-campus apartments leased from American Campus Communities.8.0% for off-campus apartments leased from Jensen Property Management. ISU DiningISU Dining proposes a 3.5% rate increase for FY15 on the meal plan portion of the plans. There is no change proposed for the Dining Dollars portion. A review of the Dining Dollars portion is expected to be completed in FY16, with any proposed changes occurring for FY17.Please provide detailed information on the following:Residence system room and board rates including the number of units available at that rate and the current number of students in the unitsStudent apartment and/or family housing rates including the number of units available at that rate and the current number of students in the unitsPercent change in each categoryRationale for rate changesOther meal plans / dining dollars – include meal plan participation requirements (all meals, some meals, etc.) if living in residence halls/apartments/leased facilities.Application Fees – include the proposed application fee to be charged during 2015-16 for the 2016-17 academic year in the rate matrix. Provide the amount applied to a student’s liability if a contract is signed and the refundable amount if applicable. Include the application fees in the rate matrix and also provide the application fee charged in the current year for the 2015-16 academic year.Other rates or fees chargedPlan to present proposed rates to students and/or feedback received from studentsProposed Rate Changes for 2015-2016 Academic Year ** Please see attached Proposed Residence System Rates for FY16The proposed FY16 combined room and board rates for a standard, non-air-conditioned, double room and a Gold plan (225 meals per semester) are as follows:?FY15FY16 $ Increase % Increase Room$4,154 $4,279 $125 3.00%Board$3,676 $3,791 $115 3.13%Total$7,830 $8,070 $240 3.06%Prior to submission of this report, rate proposals for room and board were presented to student leaders at meetings of IRHA and the Frederiksen Court Council as well as to Schilletter-University Village residents at the SUV Community meeting. All three groups have reviewed and expressed support for the proposed rate. All proposed rates would become effective May 11, 2015.Department of ResidenceThe DOR continues to offer multiple rates, differentiating based on style of accommodation (standard room, suite or apartment) and amenities (air-conditioning, private bathrooms, kitchen, etc.) offered. The DOR calculates rates using the standard double room with no air conditioning as the base rate. Standardized add-on costs to the base rate are used to calculate rates for singles, doubles as singles, air conditioning, break housing, etc. Rate increases at off-campus leased apartments are 8% for FY16. The DOR is paying to lease off-campus apartments for a twelve-month period, while only collecting rent from students for the academic year. The proposed rate increases for FY16 reduce the net loss to a manageable amount that will be offset, in part, by offering summer occupancy to students contracted to live in those apartments. The proposed rates for the academic year continue to be less than what a student would be obligated to pay, on average, for an annual lease if contracted directly with American Campus Communities or Jensen Property Management. These rate increases, along with negotiations for frozen or low master lease increases, will allow the Department of Residence to break-even on off-campus leases by FY17. Should leased off-campus apartments become a longer-term need, DOR will be poised to offer this service to students with no net impact to the bottom line, particularly if the use of dens as interim housing is discontinued.As part of their Admission Acceptance fee all new undergraduate students must pay $135 that transfers to the DOR if the student subsequently contracts for on-campus housing. Otherwise, the $135 remains as a credit on the student’s account and is applied to other fees. Once the fee transfers to housing, $10 is a contracting fee and $125 is a housing prepayment. If the student remains in housing through the spring semester, the $125 is applied to spring room fees. If the students cancels their housing contract prior to the May 1 cancel deadline, the entire $135 is refunded. After the cancel deadline, the $10 becomes non-refundable and the $125 is refunded if the student leaves the University or participates in an ISU sponsored student teaching, internship, co-op or study abroad experience. While there are currently no increases planned for this fee, the DOR continues to have internal conversations regarding the future collection and allocation of this fee.ISU DiningBased on a review and adjustment of expenses, ISU Dining was able to present to students a 3.5% increase on the meal plan portion of the rate that would not result in any appreciable changes to services or program quality. Buchanan Hall, Richardson Court and Union Drive residence hall residents are required to have a meal plan. Residents of Wallace and Wilson halls, Frederiksen Court apartments, and SUV apartments are encouraged, but not required to have meal plans.PRELIMINARY FY16 BUDGET - The executive summary should include an explanation of any significant variances for each category from the FY15 budget. See Excel “Prelim Budget” tab.Preliminary FY16 Budget Executive SummaryDepartment of ResidenceThe residence system budget is developed considering the expected number of students to be housed, the expected number of students required to purchase meal plans, rate increases (as proposed), expense inflation (3-4% for most expenses, except utilities at 4-6%), other additions/deletions to facilities, temporary closures, etc.The following are Key Assumptions in the FY16 Preliminary Budget:Housing rates are proposed to increase by an average of 3.0% for all Residence Halls, 3.0% for Frederiksen Court apartments, 2.0% for SUV apartments, 8% for off-campus leased apartments on Stanton Avenue, and 8.0% for off-campus leased apartments with Jensen Property Management. Additional detail is provided in the attached rate proposal. No rate increase is planned for prepayment fees.FY15 budgeted revenues were based on student occupancy of 12,294. Actual occupancy on fall 2014 count day was 12,237. Fall 2015 demand is projected to be 12,774. DOR expenses for off-campus leased apartments commenced in FY14, continued for FY15, and will continue again for FY16. 500 bed spaces were leased for FY14. This number was increased to 1,059 spaces for FY15. The University is finalizing the lease of an additional 395 spaces with Jensen Property Management, which will bring the total number of leased off-campus bed spaces to 1,454. The lease rate charged to DOR by American Campus Communities for apartment spaces will remain level for FY16 and commercial space previously leased at a cost of $14,100 annually will be provided at no charge. The rates charged to DOR for the Jensen Property Management leases will increase by 5% for FY16.436 bed spaces have been utilized in recent years in residence hall dens to provide first semester housing for students. Following discussions with student leadership, the DOR will discontinue the use of dens as interim housing in Helser, Birch, Welch, and Roberts Halls. The 329 remaining den spaces will be available to residents for the entire academic year as opposed to for fall semester only. Annual debt payments will increase for FY15 and FY16 due to the issuance of bonds for the new residence hall building project that will commence in May 2015. P&S salary increases are budgeted at 3.0%.Merit salary increases are based on current merit contract requirements.New-hire student wages, which are typically increased biannually, are not scheduled to increase for FY16. Students continuing in their positions remain eligible for an increase based on length of time spent in the position.Beginning in FY16, DOR will no longer bill residents in the SUV apartments for electricity usage. It has been determined that billing students is a labor-intensive process with little appreciable value to the bottom line. This will result in a decrease in revenues of approximately $150,000 that will be offset, in part, by the 2% rate increase at SUV for FY16.ISU DiningManagement followed several guidelines for creating FY16 budgets. All managers used these guidelines unless there was data to support the use of another factor for their venue. Payroll guidelines stipulated:P&S salary increases at 3.0%Merit salary increases are based on current merit contract requirements.New-hire student wages will not increase. ISU Dining did a comparative analysis of student wages in similar positions on and off campus and has determined that current new-hire student wages remain competitive. Students continuing in their positions remain eligible for an increase based on length of time spent in the position.Expenses in all other categories were assumed to increase by 4% over FY15 with two exceptions: Food cost was based on the food cost percentages by missions were based on the percentage paid by each area on budgeted revenues.Meal plan and Dining Dollar$ rates are based on projected plan participation. DOR occupancy projections were used to determine mandatory meal plan participation. Based on local market factors, retail and catering prices will be increased an average of 3.5%.Please provide detailed budget information for the following categories:Occupancy assumptions for FY16 (identify changes from FY14)Other assumptions including any changes in board plans and ratesInflationary assumptions used to prepare the FY16 budgetCurrent year FY15 budget as approved by the Board in August 2014Current year revised estimates for FY15. Explain variances from Board-approved budget including occupancies and costsProjected transfer amount to the improvement fund from the surplus fundCoverage ratios as required by bond covenantsOverview of what comprises “other income” and “other expenses”Number of FTE employees for P&S/Merit and students. Also include an estimated student employee headcountThe overhead costs included in the determination of the “University Overhead Payment” and a summary of how the amount is calculated.NEW: Provide the amount of outstanding “capital commitments” (list the primary projects) against the June 30 voluntary reserve balance for FY 2014 actuals and FY 2015 estimates. Capital commitments is defined as the sum of total project budgets for capital projects underway or in progress that have not yet been invoiced by or paid to the various external vendors (architects, consultants, contractors, etc.). i.e. approved project budget amounts to be funded from voluntary reserves less paid expenditures to date as of June 30.Preliminary FY16 Budget** Please see attached Five Year Projected Enrollment, Housing Capacity, and Occupancy.The estimated number of students housed is derived by multiplying the University’s enrollment projection by the historical residence system capture rate, on a class basis. The DOR projects that by fall 2015 count day, it will house 12,774 residents. Prior year actual for FY14 is shown on the Residence System Preliminary Budget Proposal. The Final FY15 Budget as approved by the Board is listed with the Revised Estimate for 2014-2015. FY15 budgeted revenues were based on student occupancy of 12,294. Actual occupancy on fall 2014 count day was 12,237. ISU Dining contract revenue has increased due to higher than expected incoming classes over the last few fiscal years. Since ISU Dining has been successful in reaching off-campus students (or on-campus students in non-meal plan required areas) this increase has resulted in more meal plans purchased, both mandatory and voluntary. The reduction of required residential spaces due to discontinued use of some dens for FY16 will have a small impact to these numbers.Capital improvements are budgeted for the fiscal year in which they are scheduled to begin. DOR projects are routinely carried over to the following fiscal year due to scheduling issues. Capital improvements for the FY15 Board-approved budget were originally budgeted at $9.6M. Additional projects were added and other adjustments made for FY15, bringing the revised FY15 budget to $13.3M. Projects added include:University Roofs/Windows for $700K, University Village gas line upgrades for $300K, University Village Fences for $1.07M, Tuck-pointing for $150K, miscellaneous exterior improvements for $305K, Hall Director Apartment Remodels (Friley, BLF and Wallace/Wilson) for $435K, Miscellaneous room and furniture refurbishments for $234K, Larch furniture for $1.13M. Decreases also occurred and are currently allocated to contingency for FY15. These decreases include:$460K for Elevator Code Issues, $607K for the Phase 3 Friley Sprinkler Project, $400K for Larch Bathroom Ventilation. Projected expenses for FY15 are $23M. $9.7M was carried over from prior year projects. Projects with notable carryover balances include: Flood Repairs $872K (will be reduced by insurance and FEMA settlements, but amounts are not known at this time); Friley Hall Sprinkler System Phase 2 of 4 $1.1M; Student Room Furniture (off-campus leased apartments) $1.7M; Willow Hall Improvement Project $2.3M; Willow Hall Furniture $1.1M.Outstanding Capital Commitments: As described above, $9.7M in Capital Projects and Building Improvements was carried over from prior years to FY15. It is anticipated that all of these funds will be spent during FY15. Projects with notable carryover balances are listed above. One item carried over was $344K for SUV Siding and Window Replacements for FY14. As of July 1, 2014, that project had not been commenced and those funds have been carried over and will be used towards this project when it is bid. The remaining funds that were carried over are all assigned to specific projects that are all in various states of completion. If project expenses come in under budget, any remaining funds are assigned to contingency and used as appropriate for covering overages on other projects or reassigned to other projects as appropriate. It is estimated that approximately $8.6M will be carried over for active projects to FY16 and that those projects will be completed and fully expended during FY16.The FY15 and FY16 budgets for salaries and benefits included an increase in P&S salaries of 3%. Merit salary increases are based on current merit contract requirements. Utilities costs for FY15 are projected to be less than initially budgeted. The FY15 budget request for utilities was based on an expected increase in the utilities rate from FP&M. The increase was not realized to the extent that was expected.Enrollment growth generates a corresponding increase in daily customers in ISU Dining facilities, which in turn creates stress on equipment and facilities. As a result, maintenance and repair costs rose above the initial FY15 budget request.For ISU Dining, Other Income can be attributed to non-meal plan related sales in the Residential Dining and Retail areas of Dining (for example cash sales, CyCash, and intramurals), Conference Income, all catering, and all vending sales. For the DOR, Other Income includes Conference Income, Laundry commissions, Guest Housing Income and other miscellaneous items such as student payments for lock-outs or damages and lease payments from external entities for use of residential space. In the Union Drive Marketplace, a new platform, called Simple Plate, opened in January. Originally scheduled for summer 2015, the Simple Plate project was accelerated due to a small fire in the Union Drive Marketplace during summer 2014. Simple Plate serves pre-portioned, allergen friendly, nutritionally balanced meals and is intended to strongly support and encourage campus wellness.For ISU Dining, Other Expenses can be attributed to commission payments, professional development/travel costs, centrally offered services (telephone, Information Technology Services, credit card fees, etc.), and marketing costs. For the DOR, Other Expenses also include centrally offered services as well as public school tuition and transportation, various service contracts, facility services for fire safety, electronic door access and waste management, insurance, and other miscellaneous supplies and administrative expenses.The FTE employee count for the FY15 Board Approved Budget was 734. The current revised estimate for FY15 is 709. This revised estimate can be attributed to the following factors:DOR – For FY15, there was a reorganization of the Information Technology group. One position was reclassified to a Manager of IT, two existing positions were reclassified to a higher level, one full-time P&S position was added, and a half-time graduate assistant was added. A three-quarter time graduate assistant was also added in Helser Hall to assist the hall director in that location. Student headcount for the DOR was increased by 20 for Community Adviser staff in the off-campus leased apartments and by 27 for additional student staff for the Odyssey of the Mind event that will be held in May 2014.The FY16 FTE is projected to change as follows:The DOR will add the following new positions during FY16: two full-time P&S positions to assist with administration of contracts and human resources, a full-time custodial position to assist the carpet-cleaning crew, and a three-quarter time grad to assist with leased apartments being added for fall 2015.Student headcount for the DOR is anticipated to increase by 5 community advisers for leased off-campus apartments that will be new to the DOR inventory on August 1, 2015.The DOR currently bills students in the SUV apartment community for electricity usage by apartment. The current process requires that a DOR maintenance employee manually read individual electricity meters and then a second DOR clerical staff member calculates usage and subsequent billing totals as well as entering billing totals on student university bills. After analysis of this process it has been determined that this practice will end and that students will no longer be billed for electricity usage in SUV. Students will continue to pay natural gas bills, as those are handled externally by Alliant Energy. The 2% rate increase in SUV rates will go to cover the loss of electricity income which has historically been around $150K annually.The FY16 budget includes additional revenue from Odyssey of the Mind which will be on campus in May 2016, which is about $1.1 for both ISU Dining and the DOR.The FY15 transfer from the Surplus Fund to the Improvement Fund is currently forecasted at $11.87M. This amount will be sufficient to cover anticipated improvement expenditures for FY16. This amount will be reviewed prior to the official request and revised as appropriate to reflect any necessary changes or puted coverage ratios as required by bond covenants for FY15 are forecasted to be 1.81, 1.60 for FY16, and will increase from 1.61 to 1.76 from FY17 – FY20. Several years ago, Iowa State University instituted a Resource Management Model, which categorized units within the university as either Resource Responsibility Centers (RRC) or Administrative Service Centers (ASC). The RRC’s include colleges and auxiliary units, while ASC’s include administrative units: Business Services, Student Services, IT Services, Library Services, Facilities Planning & Management and Academic Administration. As part of the model, the approved budgets for these ASC units are distributed to RRC units as an expense allocation. The allocations are done on metrics such as staff/faculty FTE’s or building square footage (FP&M).The DOR and ISU Dining receive expense allocations from three of these ASCs: the Business Services unit, the IT Services unit, and the Library unit. These costs are allocated based on staff FTE. The University Overhead Payment is determined based on the cost of the allocations received through the Resource Management Model.LIVING/RESIDENTIAL LEARNING COMMUNITIES - Provide an update to the Learning Community information provided last year. Include participation rates. Learning CommunitiesIowa State University offers over 80 Learning Community options (). Of these 17 currently have a residential, or on-campus living, component: Agriculture Engineering ACES – Agriculture Community Equals Success, AGEDS-Agriculture and Education StudiesApparel and Fashion MerchandisingBLT – Business Leadership Teams ChemE – Chemical EngineeringChemistryCELT – Computer Engineering Learning TeamsComputer ScienceDesignFSHN – Food Science and Human NutritionHonorsLEAD – Leadership Through Engineering Academic DiversityNREM – Natural Resource Ecology and ManagementPsychologySESS-Science of the Environment and Sustainable SystemsWiSE – Women in Science and EngineeringWiSE-TR – Women in Science and Engineering-TransferLocated throughout the Richardson Court and Union Drive neighborhoods, Residential Learning Communities (RLCs) are small groups of students who live together on designated houses or floors. Students share academic interests, classes, living spaces and develop friendships as part of an innovative program in cooperative learning. Currently, there are 1271 spaces reserved for RLCs. This is expected to remain static for FY16.A high level of student/faculty involvement is a hallmark of ISU learning community programs. It is achieved by sponsoring events such as faculty round table discussions (Agriculture Engineering) and faculty student dinners (ACES, FSHN). Involvement in an RLC has many benefits:Participants quickly create a network of support with students who share similar academic interestsParticipants share linked classes with the same cohort of students which increases the possibility of success and the formation of out-of-class study groupsIn many cases upper division students serve as peer mentors and share their educational experiences and plan and implement programsStudents have many opportunities to go on field trips and participate in out-of-class experiences that reinforce classroom learning and promote communityStudents in learning communities consistently report higher levels of satisfaction with their ability to interact closely with faculty and work with other students.Students who participate in RLCs are more likely (than non-participants) to remain at Iowa State and they are more satisfied with many aspects of their academic experience.Students who participate in RLCs are more likely (than non-participants) to graduate from Iowa State within six years.In addition, RLC participants benefit greatly from the knowledge and leadership experience of upper division peer mentors. One of the peer mentors’ key roles is to design programs that reinforce classroom learning and broaden the network of resources available to students. A sampling of the peer mentor led program offerings include peer mentor internship panels (Agriculture Engineering), review sessions and study groups (WiSE, CELT, Apparel Merchandising and Design), and peer mentor led seminars (LEAD, Honors). RLC Coordinators also connect students to industry personnel in the classroom setting (Lead, ACES, Design, BLT), through field trips (ACES, WiSE, NREM, LEAD, Chemistry) and community service projects (FSHN, Sustainability). Through these offerings and others, faculty and staff continue their commitment to the enhancement of the student experience.In addition to the above 17 RLCs, the DOR also offers three theme houses: Air Force ROTC, Army ROTC and Cross Cultural. These Houses have approximately 50 participants and differ from RLCs in that there is no corresponding academic major requirement.VOLUNTARY RESERVE BALANCES - Describe any policies, objectives, and/or goals you may have related to voluntary reserve balances and the importance of maintaining adequate reserve balances. Voluntary Reserve BalancesThe goal for voluntary reserve balances is to have a balance that would support approximately 90 days of operating expenses, particularly payroll and benefits expenses, in the event that operations be suspended or discontinued for any reason. With the realization that this scenario is unlikely, there is an acknowledgment that a balance must be struck between having that safety net and making sure that facilities receive necessary renovations and that students receive value for the services provided by the Department of Residence and ISU Dining. Adequate reserve balances are also necessary in the event that serious, immediate, and costly renovations become necessary in one or more facilities. ................
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