Me Meeting of of the B Boa oard of of Visi sitors F Finance - - PowerPoint PPT Presentation

Me Meeting of

• f the B

Boa

• ard of
• f Visi

sitors F Finance Com Committee March 24, 24, 2015 2015

Ag Agenda

I. ACTION ITEMS A. Enrollment Projections B. 2015-2016 Tuition and Required Fees for Undergraduate, Graduate, Professional and Special Programs C. Faculty, Staff and Student Housing Rates 2015-2016 D. Contract Rates for Dining Services 2015-2016 E. Capital Project Approvals F. Medical Center Quasi-Endowment - Extension of Delegated Authority G. Endowment Spending Rate

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PAT H O G AN E X E C U T I V E V I C E P R E S I D E N T A N D C H I E F O P E R AT I N G O F F I C E R

ENROL

OLLM LMEN ENT PROJECTI TIONS

UVa Enrollme ment P Projections, Fall 201 014 4 – Fall 20 2022 22

• Continues enrollment growth plan that started in Fall 2011 and will

continue through Fall 2018, after which enrollment levels off at 15,688

• +566 undergraduate students over the period

Undergraduate:

• Slight decrease in projected growth, still represents positive growth
• +390 graduate students (from 4,653 to 5,043) over the period

Graduate:

• Law class size will decline by 102 (from 1,067 to 965) and Medicine

class size will remain level at 620 over the period

Law & Medicine:

• Overall growth of 40 students (from 338 to 378) over the period

Continuing and Professional Studies

• Overall decline of 215 over the period due to discontinuation of the

Semester at Sea program and moderate growth in other programs

Off-Grounds:

4

Co Colle llege a at Wise E ise Enrollment P Project ctions

• Enrollment projections forecast a 7% increase in both total

headcount and student full-time equivalent by fall 2021.

5

Fall 2014 Fall 2021 Total Headcount 2,164 2,305 Student Full-time Equivalent 1,514 1,619

C O L E T T E S H E E H Y V I C E P R E S I D E N T F O R M A N A G E M E N T A N D B U D G E T

2015 2015-16 T 16 TUIT

UITION AN AND FEES EES FOR OR

UNDERGRADU

DUATE, G

, GRAD

ADUATE TE,

, PROF

OFES ESSIONAL AL,

, AN

AND SPECI PECIAL AL

PROGRAMS

Underg rgraduate T e Tuition

7

Tu Tuit ition Set Setting Co Context

• BOV approved the 2014-15 undergraduate tuition increase:

– In-state: +4.5% – Out-of-state: +6.0% – Blended rate: +5.4%

• After BOV approved the FY2014-15 budget and the 2014-15 tuition

increase, the General Assembly applied a mid-year $8.2 million reduction in base budget appropriation that we had to absorb in FY14-15

• perations. This was addressed largely through one-time savings.
• The 2015 General Assembly session resulted in additional funding for

enrollment, but also mandated unplanned compensation increases for classified staff and the acceleration of VRS funding.

8

Tu Tuit ition Set Setting Co Context

• For FY 15-16 there are incremental spending requirements we

face in several key areas:

– Compensation: net impact of $9.8 million after state share of funding – Safety and Support Services: $2.8 million; 13 FTE – Compliance: $1.6 million; 10 FTE – Financial aid contingency: $5.0 million; reflects anticipation of elimination of federal Perkins Loan program – Enhanced Library costs: $1.3 million

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General Assembly Approved FY2015-16 General Fund Budget Actions1 UVa Academic Division

(in millions) E&G Financial Aid Research Total

FY15 Base Appropriation (approved June 2014)

$127.57 $10.52 $6.73 $144.82

Less: Permanent Base Reduction (approved September 2014)

(8.16) 0.00 0.00 (8.16)

Revised FY15 Base Appropriation

$119.41 $10.52 $6.73 $136.66

Plus Incremental Funding Included in Conference Committee Actions: Restoration of Budget Reduction and Enrollment Growth2

$1.61 0.00 0.00 1.61

Research – Cancer

0.00 0.00 1.00 1.00

Undergraduate Financial Aid

0.00 0.10 0.00 0.10

Virginia Foundation for the Humanities

0.09 0.00 0.00 0.09

Total Incremental Funding Approved

$1.70 $0.10 $1.00 $2.80

Plus State-Authorized Compensation Increases: T&R Faculty Salary Increase (2% average)

$1.03 $0.00 $0.00 $1.03

Classified Staff Salary Increase (2% + $65/year of service for those with at least 5 years of continuous service up to 30 years)

0.84 0.00 0.00 0.84

University Staff, A&P Faculty, GTA Salary Increase (2% average)

1.08 0.00 0.00 1.08

High Turnover Positions (additional 2%)

0.06 0.00 0.00 0.06

VRS Rate Increase from 12.33% to 14.22%

1.26 0.00 0.00 1.26

Total Compensation Funding3

$4.27 $0.00 $0.00 $4.27

FY16 Appropriation

$125.38 $10.62 $7.73 $143.73

% Change – FY16 over original FY15

(1.72%) 0.95% 14.86% (0.75%)

Additional funding actions not reflected above: $5.64 M for the Rotunda renovation; $1.54 M in the Higher Education Equipment Trust Fund (HEETF); $1.00 M for the Virginia Kindergarten Readiness Program administered by the Curry School of Education (pass through from Department of Education).

1 Subject to approval by the Governor. 2 State share of actual and planned enrollment growth estimated at $5.3 M over the biennium. 3 State funding of compensation increases represents approximately 1/3 of total cost.

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Us Use of

• f R

Revenue L Levers

Revenue Lever Supporting Activity Endowment Spending Distribution Base Operations Debt Restructuring Strategic Priorities (Cornerstone Plan and Generational Faculty Turnover) Organizational Excellence Base Operations Balance Sheet/Investment Earnings Strategic Priorities (Cornerstone Plan and Generational Faculty Turnover) Philanthropy Base Operations and Strategic Priorities (Cornerstone Plan, Generational Faculty Turnover) Tuition Base Operations

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Finance Subcommittee analyzed various revenue levers to fund base operations and strategic priorities.

Incremen enta tal FY FY16 16 Oper erati ting R Requirem emen ents ts (Under ergraduate S te Schools) Sala larie ies & & Ben enefits s

Principal Categories (in $ thousand) 2014-15 UVa Cost Base Expected % Increase Total 2015-16 Cost Increase Less: State General FundsA Net Impact on 2015-16 Budget

T&R Faculty Salaries and Benefits $98,630 4.50% $4,438 ($1,027) $1,494 +1,234 FB 5,672 2.5% from reallocations (3,151) 2,521 Non-T&R Faculty, U Staff Salaries, GTA/GRA 110,628 1% market adjustment 2% merit-pool 4,265 (1,090) 3,175 Classified Staff Salaries and Compression Adjustment 34,184 2.00% 939 (361) 1,466 $65 per year of service up to 30 years 1,364 (476) Retention Increase for High Turnover PositionsB 2.00% 179 (62) 117 Fringe Benefits (FB) Rate IncreaseC 79,646 Accelerate VRS contribution rate to 90% of Board certified rates ($3,600), Fringe Rate increase (~1%) 4,772 (1,256) 3,516 Subtotal Compensation $323,088 $14,040 ($4,272) $9,768

• A. FY15-16 state budget information is subject to approval by the Governor.
• B. State Mandated
• C. Rate increase is driven by increase in VRS employer rate ($3.6 million), assumption of unused leave payout at employee

termination ($1.0 million), FICA base increase ($0.2 million )

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Incremen enta tal FY1 Y16 Ot Other Ope Operating Requirem emen ents ( ts (Undergraduate S te Schools)

Principal Categories (in $ thousand) Expected % Increase Total 2015-16 Cost Increase Less: State General Funds Net Impact

• n

2015-16 Budget Subtotal Compensation $14,040 ($4,272) $9,768 Enhanced Safety & Support Services

Separate Schedule

2,760 2,760 Contractual Obligations

O&M; Res Life; Lease and Property insurance; communications; Managerial Reporting

2,293 2,293 Enhanced Library Operations

Staffing and Collections

1,300 1,300 Student Life

Greek Life, OAAA, Graduation

307 307 Compliance

FOIA, Legal, Audit, Title IX, Clery

1,550 1,550 Financial Aid Contingency

Anticipated elimination of Perkins Loan Program

5,000 5,000 2.0% CPI Increase on non-personal services 7,300 7,300 TOTAL FY16 Operating Requirements $34,550 ($4,272) $30,278

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Enha nhanc nced S Safety & & Sup upport S Servic ices F Fund undin ing R Requir uirement nts

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(in $ thousands) FY 15-16 Upgrade UVa camera system $160 Police officers (6 FTE) 287 IT support for monitoring station (1 FTE) 55 Camera control operators (3 FTE) 116 Evaluate and update emergency phones 20 Police sub-station on the Corner 65 Ambassadors to provide additional security support 1,600 "Buddies on Call" and "Student Watch" student-led programs 10 Safety app for personal phones 12 Expand after-hours transportation system 150 Improved Safety Subtotal $2,475 Women's Center Counselors (3 FTE) 225 Sexual assault and safety education programs 60 Increased Counseling, Support and Education Subtotal $285 Enhanced Safety and Security Total (13 FTE) $2,760

Incr crea eased C d Complia pliance F ce Fundin ding R Requir irem emen ents

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(in $ thousands) 2015-16 FOIA Staff + Software (1 FTE) $100 Auditing Staff 170 Attorney and administrative support (2 FTE) 235 Title IX and Clery Coordinators and support (4 FTE) 550 Sexual Misconduct Investigators (3 FTE) 495 Compliance Total (10 FTE) $1,550

Financia cial A l Aid Contin ingen ency

• Anticipate that US Department of Education will end Perkins Loan

Program in Fall 2015.

• Subsidized Direct Loans are used first, up to federal limits.
• Perkins Loans are then used to fill the loan gap between the Direct Loan

maximum and the $7,000 annual loan cap.

• To continue to meet 100% of student need we would need to replace the

Perkins Loan amount.

• Estimated Perkins Loan Program replacement cost:

$3.5 million

• Contingency for AccessUVa (3% of tuition grant pool):

$1.5 million

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Enhanced ed Librar rary y Resources ces

• In a set of eight peer libraries, UVa ranks last in total library expenditures

and 7th in expenditures per student.*

• Multi-year plan to enhance library resources.
• Annual inflation on collections averages 4.5 – 5.0%.

– $300K cost of inflation on electronic journals

• Need to hire “blended professionals” with more technical expertise to

manage the increasingly digital environment and increase staffing from 216 to 220 – $1 million in salaries/benefits/new positions

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*Data from Association of Research Libraries FY2014 Library expenditures.

Incr crem emen ental O l Operatin ing R Requir irem emen ent F FY16

(in $ thousands)

2015-16 Comment

Total FY16 Incremental Operating Requirements

$30,278 from slide 8

State Appropriations

$1,610 Enrollment Growth and Operating Support

Endowment Distribution

$7,200 40 bps additional distribution

Organization Excellence Savings and Reallocations*

$12,726

Total Sources of Funds

$21,536

Excess of Uses over Sources before Undergraduate Tuition Proposal

($8,742)

Note: * This figure does not include the $8.2 million base budget reduction in state appropriation, which is also being absorbed in FY15-16.

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201 015-16 U Under ergra raduate T Tuition & & Fee ee Proposal

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2015-201 2016 U 6 Underg rgrad adua uate te T Tuiti tion & n & Fee Proposal al

• In order to cover compensation increases and incremental base operating

needs, the University proposes a tuition and E&G fee rate increase of 3.8%.

• This equates to a base tuition rate increase of 3.9% for Virginians and an

E&G fee increase of 1.6%, and tuition rate increase of 3.9% for non- Virginians and a E&G fee increase of 0.6% for non-Virginians.

• When including other fees – Auxiliary and University Activity fees – the

total tuition and fee rate increase is 3.6% for Virginians and 3.7% for non- Virginians.

20 Figures do not include specific school fees.

Tuit uitio ion P n Proposa sal t l to Address N ss Net I Inc ncrement ntal l Opera rating Requir uirement nts s FY16 16

21

($ in thousands) Tuition Proposal

3.9%

Excess of Uses over Sources (from slide 13)

($8,742)

Net Base Undergraduate Tuition at 3.9% including Enrollment Growth

$8,880

Net Sources Over Uses $138

Virginian Tuition

$10,892

Increase in Virginian Tuition over FY15

$408

Non-Virginian Tuition

$40,506

Increase in Non-Virginian Tuition over FY15

$1,518

Univer ersity o y of Virginia ia 2015 2015 – 2016 2016 Unde ndergraduate Tuit Tuition & n & Fee P Proposal

22

2015-16 Proposed Tuition & Fees Rates Virginians Non- Virginians 2015-2016

$ Change from FY15 % Change from FY15

2015-2016

$ Change from FY15 % Change from FY15

Tuition $10,892 $408 3.9% $40,506 $1,518 3.9% E&G Fees $455 $7 1.6% $1,137 $7 0.6% Subtotal $11,347 $415 3.8% $41,643 $1,525 3.8% Auxiliary Fees $2,071 $55 2.7% $2,071 $55 2.7% Activity Fees $50 $0 0.0% $50 $0 0.0% Total Tuition and Required Fees $13,468 $470 3.6% $43,764 $1,580 3.7%

Figures do not include specific school fees.

Tot Total 2015 2015 - 2016 P 2016 Price of

• f A

Attend ndanc nce UVa Va F First-Year ear U Under ergradu aduat ate

Figures do not include specific school fees. 23

2015-16 Proposed Price of Attendance Virginians Non- Virginians 2015-2016

$ Change from FY15 % Change from FY15

2015-2016

$ Change from FY15 % Change from FY15

Tuition & Fees $13,468 $470 3.6% $43,764 $1,580 3.7% Orientation Fee $210 $0 0.0% $210 $0 0.0% Room $5,492 $189 3.4% $5,492 $189 3.4% Board $4,560 $160 3.5% $4,560 $160 3.5% Books, Travel, Others $4,233 $76 1.8% $5,462 $56 1.0% Total Price of Attendance $27,963 $895 3.3% $59,488 $1,985 3.5% Expected % Students on Aid 34% 32% For Students on Aid Average Grant Package $11,551 $16,802 Average Net Price $16,412 $42,685

Academic ic D Divisio ision 2015 2015-16 16 Und ndergradua uate D Diff ifferent ntia ial T l Tuit uitio ion P n Proposa sals ls

• Batten School proposes a differential to build out and fully implement highly interactive

pedagogical approach:

– Incoming Class of FY16: $2,500 differential – Incoming Class of FY17: $5,000 differential

• Engineering differential will help expand student services and experiential learning
• pportunities, and help offset start-up costs to replace retiring faculty.
• McIntire School of Commerce will continue its $5,000 differential with no increase in 2015-16

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Program 2015-16 Proposed Differential All Students 2015-2016

$ Change from FY15 % Change from FY15

B.A. in Public Policy and Leadership (Batten) $2,500 n/a n/a School of Engineering and Applied Science $4,000 $2,000 100.0%

201 015-16 Gra Gradua uate T Tuition Proposal

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201 015-16 Gra Gradua uate T Tuition Proposals

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Increases range from 0. 0.2% 2% t to 3. 3.9% 9%

Program 2015-16 Proposed Tuition & Fees Rates Virginians Non- Virginians 2015-16

$ Change from FY15 % Change from FY15 2015-16 $ Change from FY15 % Change from FY15

GSAS Ph.D. Program: Ph.D. Year 1 – 3 $17,094 $416 2.5% $27,574 $656 2.4% Ph.D. Year 4 $7,100 $172 2.5% $7,782 $172 2.3% GSAS Master's Program $17,800 $648 3.8% $28,432 $1,030 3.8% M.S. in Data Science $24,942 $74 0.3% $39,684 $75 0.2% SEAS Master's Program $17,792 $494 2.9% $28,046 $742 2.7% All Other Master's Program $17,432 $674 4.0% $27,546 $782 2.9% Nursing Clinical Nurse Leader $21,716 $62 0.3% $35,818 $62 0.2%

201 015-16 Gra Gradua uate T Tuition Proposals Batten S School

• Allows transition to a competitive, market-based tuition aligned with peer institutions (UC

Berkeley, University of Michigan, Georgetown and Duke).

• Average net price for Batten School M.P

.P . students in FY15 was $7,004 for in-state students and $12,942 for out-of-state students. – equates to a discount rate of 54%.

• We anticipate a similar net price in FY16 even after this substantial tuition increase.
• Over time (3-5 years), as admission to M.P

.P . program becomes increasingly competitive and Batten School’s reputation rises, we anticipate a decreased discount rate and ability to realize net graduate tuition that aligns with peers.

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Program 2015-16 Proposed Tuition & Fees Rates Virginians Non- Virginians 2015-16 $ Change from FY15 % Change from FY15 2015-16 $ Change from FY15 % Change from FY15 Post Graduate Program (M.P .P .) $25,664 $7,160 38.7% $46,522 $13,364 40.3% 5th Year Accelerated Program (M.P .P .) $25,664 $7,160 38.7% $46,522 $13,364 40.3%

201 014-15 Gra Gradua uate T Tuition Proposals Batten S School

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$15,990

$29,962

$17,188

$32,176 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 Projection FY16 Tuition Public Peer Institutions In-State Out-State in-state average

• ut-state average

UVA

201 015-16 Gra Gradua uate T Tuition Proposals Progra rams ms tha hat be begin a academ emic y yea ear i r in n May or r June ne

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Program 2015-16 Proposed Tuition & Fees Rates Virginians Non- Virginians 2015-16 $ Change from FY15 % Change from FY15 2015-16 $ Change from FY15 % Change from FY15 SEAS: Accelerated Master's Program in Systems Engineering $39,000 $750 2.0% $39,000 $750 2.0% SCPS: Post-Baccalaureate Pre- Medical Certificate Program $27,816 $1,001 3.7% $32,996 $1,030 3.2%

201 015-16 Gra Gradua uate T Tuition Proposals McInt ntire G e Graduate P e Progra rams

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Program 2015-16 Proposed Tuition & Fees Rates Virginians Non- Virginians 2015-16 $ Change from FY15 % Change from FY15 2015-16 $ Change from FY15 % Change from FY15 M.S. in Accounting $30,176 $736 2.5% $36,520 $890 2.5% M.S. in Commerce $41,810 $815 2.0% $47,376 $981 2.1% M.S. in MIT $44,354 $1,304 3.0% $44,354 $1,304 3.0%

201 015-16 Gra Gradua uate T Tuition Proposals Darden G n Graduate P e Progra rams ms

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Program

2015-16 Proposed Tuition & Fees Rates

Virginians Non- Virginians 2015-16 $ Change from FY15 % Change from FY15 2015-16 $ Change from FY15 % Change from FY15 Full-Time M.B.A. $58,150 $3,256 5.9% $61,150 $3,256 5.6% E.M.B.A. $69,650 $2,175 3.2% $69,650 $2,175 3.2% G.E.M.B.A. $74,650 $2,175 3.0% $74,650 $2,175 3.0% Ph.D. Students: Year 1-3 $17,164 $486 2.9% $27,690 $772 2.9% Ph.D. Students: Year 3+ $7,122 $194 2.8% $7,804 $194 2.5%

201 014-15 Gra Gradua uate T Tuition Proposals Darden G n Graduate P e Progra rams ms

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57,950 Average $59,666

• 10,000

20,000 30,000 40,000 50,000 60,000 70,000 80,000

Program 2015-16 Proposed Tuition & Fees Rates Virginians Non- Virginians 2015-16 $ Change from FY15 % Change from FY15 2015-16 $ Change from FY15 % Change from FY15 Full-time J.D. (1L and 2L) and L.L.M. Students $54,000 $2,200 4.2% $57,000 $2,200 4.0% Full-time J.D. (3L) Students $52,000 $2,200 4.4% $57,000 $2,200 4.0%

201 015-16 Gra Gradua uate T Tuition Proposals Scho hool o

• f Law

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201 014-15 Gra Gradua uate T Tuition Proposals Scho hool o

• f Law

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$54,800 Average, $55,773 48,000 50,000 52,000 54,000 56,000 58,000 60,000 62,000

Projection FY16 Tuition Public Peer Institutions * Out of State

201 015-16 Gra Gradua uate T Tuition Proposals Scho hool o

• f Med

edicine

35

Program

2015-16 Proposed Tuition & Fees Rates Virginians Non- Virginians

2015-16 $ Change from FY15 % Change from FY15 2015-16 $ Change from FY15 % Change from FY15 School of Medicine $46,404 $922 2.0% $57,210 $1,120 2.0%

201 014-15 15 Gra Graduate T Tuition Proposals Scho hool o

• f Med

edicine

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$56,142 Average, $53,669 10,000 20,000 30,000 40,000 50,000 60,000 70,000 * Washington, University of * Virginia, University of * Michigan State University Duke University * Pennsylvania State University * Pittsburgh, University of Emory University * Michigan-Ann Arbor, Univ of

* Out state resident tuition

201 015-16 16 F Fee Propo posal

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201 015-16 16 F Fee Propo posals

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Proposed Comprehensive Fees Virginians Non-Virginians 2015-16 $ Change from FY2015 % Change from FY2015 2015-16 $ Change from FY2015 % Change from FY2015 E&G Fees $455 $7 1.6% $1,137 $7 0.6% Auxiliary Fees $2,071 $55 2.7% $2,071 $55 2.7% Total Comprehensive Fees $2,526 $62 2.5% $3,208 $62 2.0% Student Activity Fees $50 $0 0% $50 $0 0% Application Fees 2014-15 Approved Amount of Increase Percent of Increase 2015-16 Proposed Graduate Batten $60 $15 25% $75 Graduate Engineering $60 $25 42% $85 Program School of Architecture Design Technologies Fee 2015-2016 $ Change from FY15 % Change from FY15 Architecture, Landscape Architecture, 1st year undeclared $560 n/a n/a Urban and Environmental Planning $140 n/a n/a

201 015-16 Colle

• llege at W

at Wis ise Und nder ergra raduate T Tuition P n Proposal

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201 015-16 16 U Underg rgraduate e Tuition P n Proposals Colle

• llege at W

at Wis ise

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2015-16 Proposed Tuition & Fees Rates Virginians Non- Virginians 2015-2016 $ Change from FY15 % Change from FY15 2015-2016 $ Change from FY15 % Change from FY15 Tuition $5,056 $194 4.0% $20,658 $794 4.0% E&G Fees $154 $4 2.7% $786 $4 0.5% Sub-total $5,210 $198 4.0% $21,444 $798 3.9% Auxiliary Fees $4,010 $154 4.0% $4,010 $154 4.0% Total Tuition and Required Fees $9,220 $352 4.0% $25,454 $952 3.9%

R I C H K O VAT C H A S S O C I AT E V I C E P R E S I D E N T F O R B U S I N E S S O P E R AT I O N S

FACUL

CULTY, S

, STA

TAFF,

, AND

AND

STUDE

DENT HOUSIN ING RAT ATES

2015 2015-2016 2016

Faculty a and Staff Ho Housing R Rates es, 20 2015 15-16 16

• Rents reflect market rate
• 85 housing units
• Average increase = 3.3%

42

UVa S Stud udent Ho Hous using R Rates es, 20 2015 15-16

Academic Division College at Wise Number of beds 6,890 763 Occupancy rate (fall 2014) 98% 76% Average increase $189 (3.4%) $216 (3.5%) Average double room charge (nine-month lease) $5,681 $6,144

* Excludes Henson Hall, the rate for which will decrease by $1,619 (25%) to incentivize occupancy during period of nearby construction.

43

2014-15 15 UVa a St Stude dent Ho Housi sing R Rates es

VA VA Pub ublic lic, P Peer & & Sele lected O Othe her Inst nstit itut utions D ns Doub uble le Ro Room R Rate

Sources: SCHEV 2014-2015 Public Institutions survey & Business Operations web-based survey

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000

UVa = = $5, $5,492 492

Average "Peer" & Selected Others = $7,451 Average VA Public Schools = $5,475

44

2014-15 15 UVa Va-Wise se St Stude dent Ho Housing R Rates es

VA Pub ublic lic, P Peer & & Sele lected O Othe her Inst nstit itut utions ns Doub uble le Ro Room R Rate

Sources: SCHEV 2014-2015 Public Institutions survey & Business Operations web-based survey

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000

UV UVa-Wise = $6, $6,228 228

• - - - Average "Peer" & Selected Others = $4,937

.... Average VA Public Schools = $5,475

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R I C H K O VAT C H A S S O C I AT E V I C E P R E S I D E N T F O R B U S I N E S S O P E R AT I O N S

DINING

ING SERVICE VICES RAT ATES

2015 2015-2016 2016

Din inin ing Service ice Rates es, 20 2015 15-16 16

Academic Division College at Wise Average increase 3.5% 0.2% Meal plan rate range $200 - $5,050 $193 - $4,322

47

2014-15 15 UVa Di Dini ning Me Meal P Plan R Rates

VA Pub ublic lic, P Peer & & Sele lected O Othe her Inst nstit itut utions ns Full ull Meal P l Pla lan n Rate

Source: Business Operations web-based survey

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000

UVa = = $4, $4,560 560

Average "Peer" & Selected Others = $5,093 Average VA Public Schools = $4,304

48

2014 - 2015 15 UVa Va-Wise se D Din ining M Mea eal P l Pla lan R Rates es

VA Pub ublic lic, P Peer & & Sele lected O Othe her Inst nstit itut utions ns Full ull Meal P l Pla lan n Rate

Source: Business Operations web-based survey

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000

UV UVa-Wise = $4, $4,322 322

• - - - Average "Peer" & Selected Others = $3,848

.... Average VA Public Schools = $4,304

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C O L E T T E S H E E H Y V I C E P R E S I D E N T F O R M A N A G E M E N T A N D B U D G E T

CAPI

PITAL AL PROJ OJEC ECT APPR PROVAL ALS

Proj

• ject B

Budget Re Review: Newcom

• mb Road

Road Chille iller P Plan lant

• Board of Visitors approved project in

2013, estimated at $11.64 million

• Unanticipated higher equipment costs

and new technologies have increased total project cost by $3.16 million

• Installation of new energy-saving

technologies anticipated to reduce utility costs by up to 20%

• Increase in project cost: $3.16 million

funded by cash

• Total revised project cost: $14.8 million

($3.18 from debt; $11.62 from cash)

51

Memorial Gym Existing Cooling Towers UVa Bookstore

Site Area

Electri rical G Grid R Reliability P Projec ect

• Partnership between UVa and

Dominion Virginia Power to install underground electrical duct bank -- will improve power reliability by 90%

• Connecting Sherwood substation (DVP

transmission substation) to the Cavalier and Alderman substations (UVa distribution substations)

• Route to be finalized in April
• $10.0 - $15.0 million total cost funded

by debt; repayment from internal utility rates

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Uni niversity Ho Hospi pital E Emer mergency D Depa epartment nt/ Int nterventional Program/ m/Bed T Tower er E Expa pans nsion

• Expansion and renovation of the ED;

expansion of perioperative and interventional services; construction of 6-story tower (build out of 3 stories and shell for 3 stories)

• Accommodate future demand/growth,

improve patient experience, consolidate interventional services, right-size pre-operative and recovery areas, convert semi-private rooms to single patient rooms

• $322.0 - $394.0 million total cost

funded by debt

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PAT H O G AN E X E C U T I V E V I C E P R E S I D E N T A N D C H I E F O P E R AT I N G O F F I C E R

MEDICAL CEN

ENTER ER QUA UASI -

ENDO

DOWMENT

Me Medical Ce Cent nter Qua Quasi-End ndowmen ent

• In 2008 the Medical Center established a quasi-endowment for

future acquisition or construction of capital assets.

• Board authorized additional investments up to $300 million over

the following three years.

• EVP-COO has delegated authority to approve quasi-endowment

actions, including establishments and divestments, of less than $2 million.

• Medical Center desires to continue reinvesting semi-annual

distributions, which exceed $2 million.

• Medical Center requests that authority be delegated to EVP&COO

to approve reinvestment of future endowment distributions.

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PAT H O G AN E X E C U T I V E V I C E P R E S I D E N T A N D C H I E F O P E R AT I N G O F F I C E R

ENDO

DOWMENT SPEND NDING ING

RAT

ATE RESET ET

UVa’s C Current S Spending Policy

57

• Inflation growth within a band/“snake in a tunnel”
• Increase prior year’s payout by inflation
• Determine where payout will fall relative to market value
• If resulting pay-out is within a 4% - 6% band, no action

required by Board and pay-out is automatically increased

• The Board may take action to adjust

Endo dowment Sp Spendin ing Rate ate R Reset

• Based on policy and due to recent strong performance,

the FY16 distribution will be at 4.22% of endowment, near the low end of the band, if no action taken

• Finance Subcommittee on Affordable Excellence

reviewed UVIMCO sensitivity analysis this summer

• Subcommittee recommends that the Finance

Committee take action to increase the rate by 40 basis points, resetting it at 4.62% for FY16

58