Finance and Facilities Committee Meeting September 16, 2022

The Finance and Facilities Committee met on Friday, September 16, 2022 at 9:00 a.m. in the David Student Union Boardroom with Chair Robert R. Hatten, Esq. presiding.

Present from the Committee

Robert R. Hatten, Esq. Chair
John Lawson
Ms. Terri M. McKnight, CPA
Kelly Purdy Meadows
Christy Morton
Lindsey Carney Smith, Esq.
Judy Ford Wason

Absent from the Committee

None

Present from the University

Ms. Ashleigh Andrews, Assistant Vice President for Finance and Planning
Mr. Bob Colvin, Chief of Staff
Mr. Andrew Crawford, Chief Information Officer
Ms. Amie Dale, Executive Director of University Events and Special Projects
Ms. Sarah Herzog, Director of Planning and Budget
Mr. Tom Kramer, Executive Director of Wason Center for Civic Leadership & Legislative Liaison
Ms. Jennifer Latour, Vice President for Finance and Planning and Chief Financial Officer
Ms. Christine Ledford, Vice President for Administration and Auxiliary Services
Ms. Olga Lipatova, Faculty Senate Representative
Mr. Keith Roots, Vice President for University Advancement
Ms. Adelia Thompson, Interim President
Ms. Rhonda Wissinger, Executive Administrative Assistant

Public in Attendance

None

At 9:00 a.m. Chair Hatten called the meeting to order and welcomed everyone in attendance. He introduced Mr. John Lawson and Ms. Kelly Purdy Meadows as the newest members of the Committee.

Approval of Minutes

Chair Hatten asked if everyone had a chance to review the minutes from the June 8, 2022 Finance and Facilities Committee meeting. There being no comments, edits or suggestions, Chair Hatten called for a motion to approve the minutes as presented. Ms. Lindsey Carney Smith provided the motion, which was seconded by Ms. Cristy Morton and the minutes were approved by unanimous vote of the committee.

Legislative Update

Ms. Latour along with Mr. Tom Kramer (government relations liaison) provided the Budget and Legislative Update. Ms. Latour stated that we have submitted capital requests to the Governor and at the end of the month, will submit operating requests. We have requested cost escalation funds for two capital outlay projects that have exceeded cost due to inflation and supplies. There is a new capital outlay project being submitted in the “planning phase” and it is for a new Plant Operations Building. On September 30th Operating Budget requests are due and we will be submitting $5M in new requests. The Governor will consider these requests and report to the General Assembly money committees in mid-December. The Governor will release his budget on December 15th and we will be able to see what the Governor’s priorities are for Higher Education. Once we find out what funds we did not receive, we are able to strategize for the General Assembly session.

Mr. Kramer reported on the following items:

Chairman Barry Knight, chair of the House Appropriations committee, came to campus and met with Chancellor Trible and was given a tour of campus.
Mr. Kramer attended virtually the Senate Finance and House appropriations update on the status of the economy. He noted we will see the effects of inflation, a raise in interest rates, and that we should continue to use a conservative approach to spending. Mr. Kramer reported Peter Blake, Director of SCHEV (State Council of Higher Education for Virginia), gave an overview on tuition and fees. In the last five years Christopher Newport University has not had in an increase in tuition and fees. Chairman Hatten mentioned that we also have the lowest endowment of Virginia schools.
Mr. Kramer stated that we have invited the Secretary of Education to campus and will also be inviting State Leaders to the Football game on November 5.

Review of 2022 Six Year Plan

Ms. Latour provided an overview of the six year plan stating that this is a bi-annual submission, but is updated annually. The plan reflects money received from the State and the operating budget initiatives we intend to fund through NGF revenues. Ms. Latour explained the select components of the Plan include strategies that support the Virginia Plan, possible tuition and fees, room and board rates, future general fund and capital outlay budget requests, and new academic programs and collaborative partnerships.

Resolution 1: 2022 Six Year Plan Update

At the conclusion of the 2022 Six Year Plan Update, Mrs. Latour presented Resolution 1: 2022 Six Year Plan Update for 2022-2028. Chairman Hatten asked for a motion and a motion was put forth by Cristy Morton, seconded by Lindsey Carney Smith with all in favor.

Statement of Revenues and Expenditures for the Twelve Months Ended June 30, 2022

Mrs. Latour reviewed the unaudited Statement of Revenues and noted that due to COVID we have shrinking student enrollments showing a decrease in revenues. There is an increase in State appropriations that is $3M higher but this is for non-operating maintenance reserves.

Mr. Bruce Bronstein, Executive Director of the Ferguson Center for the Arts, applied for a shuttered venues grant in the amount of half a million dollars to help offset costs while the venue was closed due to COVID. Thanks to his efforts we will be receiving this grant which will be helpful in reimbursing operational costs for the venue.

Auxiliary Enterprises has rebounded now that students are back on campus and dining halls are fully operating again. Study Abroad has also increased revenues from 4.0% up to 5.7% due to students being able to travel again.

Expenses are up due to 5% staff raises and also due to an increase in minimum wage.

Annual Debt Service Report

Ms. Latour provided an overview of the Annual Debt Service Report (located in BoardDocs 6G) and the report breaks down the payment and interest by fiscal year and shows how the debt rolls off each year. The report is also broken down by department and bond series.

Capital Projects Update

Ms. Ledford gave a presentation on the Capital Projects that are underway to include the Integrated Science Center III/Luter Hall Expansion, a new Administration Building/CNU North Replacement and infrastructure and repair projects.

Ms. Ledford explained The Integrated Science Center III/Luter Hall Expansion will be approximately 80,000 square feet. Whiting-Turner will be our general contractor for the project and they will be working with Glavé and Holmes, the architect. The preliminary design was sent to the Commonwealth of Virginia on July 1, 2022, the working drawings will be sent in July 2023 and construction will begin August/September 2023. The anticipated completion date is July 2025.

The new Administration Building/CNU North Replacement project will be approximately 32,000 square feet and W.M. Jordan is the contractor. The new structure will be built, where the post office previously stood, by the CNU Foundation and leased back to the University. Construction began in July of 2022 with completion in the summer of 2023.

Lastly, the infrastructure and repair projects that are taking place are:

Chiller plant - design is complete and the project is awarded. The chiller will be here around October. Demo will start this summer and finish in the winter.
Ratcliffe Boiler and water heaters - will be replaced in the Spring of 2023.
Ferguson Center Roof Replacement - Reroof the old Ferguson High School sections of the building; approximately 78,300 square feet. Currently under design.
Ratcliffe High Roof Replacement - Reroof the area consisting of the High Roof over the second floor and the Low Roof that surrounds it which is approximately 28,500 square feet. Currently under design.

SWaM Report for the Twelve Months ended June 30, 2022

Ms. Ledford presented the SWaM Report as of June 30, 2022. We were at 40.85% and our goal is 42%. The University is still ahead of the Commonwealth’s education section. The annual SWAM Fair will be held in November.

Ms. Ledford noted a new program for our procurement system, eVA, will launch on November 1.

Rector Hatten thanked all staff and new members and the meeting was adjourned at 9:59 a.m.