Finance and Facilities Committee Meeting November 17, 2023

The Finance and Facilities Committee met on Friday, November 17, 2023 at 8:00 a.m. in the Freeman Center, Room 201with The Honorable Ronald Tillet presiding as Chair.

Present from the Committee

The Honorable Ronald Tillet
Mrs. Lindsey Carney Smith, Esq.
Mr. John Lawson
Mr. C. Larry Pope
Mrs. Terri M. McKnight, CPA
Ms. Kelli Purdy Meadows
Ms. Christy Morton (Remote participation by phone)
LTC (R) Boris Robinson

Other Board Members Present

Mr. Brent Archer
Mr. William Estrada, Esq.

Other’s Present

President William Kelly
Mrs. Jennifer Latour, Vice President for Finance and Planning/Chief Financial Officer
Mrs. Adelia Thompson, Vice President for Advancement, External Engagement and the Arts
Ms. Christine Ledford, Vice President for Administration and Auxiliary Services
Mrs. Lisa Duncan Raines, Vice President for Enrollment and Student Success
Other CNU faculty and staff members

Remote Participation

Ms. Christy T. Morton, Secretary participated in the meeting remotely by phone. Remote participation permitted due to personal work-related travel to attend the Senate Finance Committee Retreat in Northern Virginia pursuant to Code of Virginia § 2.2-3708.3

The Honorable Ronald Tillet, Chair called the meeting to order and welcomed everyone in attendance and talked about giving opportunities moving forward and how staff will be available to support these efforts.

Approval of Minutes from the September 15, 2023 meeting

Chair Tillet asked for a motion to approve the minutes from the September 15, 2023 meeting and Mrs. Terri McKnight made the motion for approval that was seconded by LTC (R) Boris Robinson, with all in favor.

Chair Tillet introduced Jennifer Latour, Vice President for Finance and Planning/CFO to provide the following report:

General Assembly Status

Mrs. Jennifer Latour, reported the results of the November 7th election and the changes that will be taking place in Richmond, including 52 new members, which represents a 37% change in membership. Christopher Newport University has two new local representatives for whom President Kelly has already connected. This is a great opportunity to establish relationships with new members and the leaders who will emerge. Mrs. Latour noted that the first ever Christopher Newport University Legislative Reception will be held in Richmond in February. More details on this event will be forthcoming.

Governor’s Budget Requests (Operating and Capital)

Mrs. Latour reported the Operating requests have been submitted and we were asked not to submit the base operating support requests, possibly due to the fact that we just received additional funding. On December 20th, the Governor will be announcing his budget and Mrs. Latour and other Christopher Newport University staff will be there to hear his presentation and meet with members of the Administration. Once we know what amendments are made to the Governor’s budget, we can make our strategy for the General Assembly.

Statement of Revenue and Expenditures for the Three Months Ended September 30, 2023

Mrs. Latour stated that these revenues and expenditures are for the first quarter and are informational only. We are tracking as expected and will go through the statements and revenues in more detail at the February meeting when we have more information to share.

FY2024 Operating Budget Update

Mrs. Latour reported the we have received funds for detailed planning of the new Plant Operations Building for FY24. The next step will be to submit schematic designs and then we will receive a funding report from Richmond so we can move forward with the project. We have requested full funding and will find out in December what we will receive for this project.

The Commonwealth’s budget was approved later this year than usual, so when the University’s budget was approved in June, it assumed no additional State funding. However, once the state’s budget was adopted, CNU did receive an additional $2.4 million in general funds. We received over $500,000 in State Financial aid for our students. These funds will help to cover the FY25 annualized 2% raise for all staff, annual increases in employer’s share of health insurance and the additional lease cost for the new Administration building which we have been able to defer payment on until next year. Mrs. Latour will be meeting with staff to determine “one time only” spending items and will report back on these at the February meeting.

Mrs. Latour introduced Mrs. Sarah Herzog, Director of Budget and Planning to provide the following report:

2023 Six Year Plan for 2024-2030

Mrs. Herzog reported that Boston Consulting Group (BCG) produced a Christopher Newport University Fact pack compiled from SCHEV (State Council of Higher Education) and federal resources. It is a 70-slide power point presentation. Slide 3 shows Christopher Newport University background information and this will be posted on the SCHEV website for public view. This is a comprehensive view of the University to include enrollment, program alignment performance, work force alignment and financial effectiveness and sustainability.

Resolution 2: 2023 Six-Year Plan for 2024-2030

Mrs. Herzog presented Resolution 2: 2023 Six-Year Plan for 2024-2030 to be approved for final submission to the State. Mrs. Lindsey Carney Smith made the motion seconded by Kelli Purdy Meadows with all in favor. The motion will move to the board for final approval.

Capital Projects Update

Ms. Ledford reported the Integrated Science Center Phase III will now be called the Science and Engineering Research Center. After working with President Kelly and the communications department they determined the new name would help to entice students to attend the University. Ms. Ledford stated utility relocations are underway and dynamic compaction will begin after exams and during Christmas break. This project should be complete in October 2025 and the cost is $85.4 million, funded by the State.

The new Administration Building/CNU North move in was last week, this building replaces the existing CNU North Building and will house the offices of Procurement, Capital Outlay Management, Human Resources, Advancement, CNU Foundations, and Communications and Public Relations.

Infrastructure Repairs and Improvements that have been awarded and underway are:

Ferguson Center Roof Replacement-reroof the old Ferguson High School sections of the building. Currently under review with the DEB.
Ratcliffe High Roof Replacement-reroof of the area consisting of the High Roof over the second floor and the Low Roof that surrounds it. Currently under review with the DEB.

Future projects will include:

Replacement of the Plant Operations Building-replacement of the existing plant operations and warehouse building.

Resolution 3: Declaring the Intention to Reimburse the Cost of Certain Expenditures from the Proceeds of Bonds

Ms. Ledford presented Resolution 3: Declaring the Intention to Reimburse the Cost of Certain Expenditures from the Proceeds of Bonds for approval. LTC (R) Boris Robinson made the motion seconded by Mrs. Terri McKnight with all in favor. This Resolution will move to the board for final approval.

SWaM Report

Ms. Ledford reported that the State Goal for SWaM is at 42% and Christopher Newport University is at almost 53.62% so we have passed our goal of 42% for this reporting period.

Ms. Ledford reported the annual SWaM Fair was yesterday and this is the 12th year we have participated. There were over 300 participants this year.

Ms. Ledford stated faculty, staff and students were interested in a sustainability initiative and after meeting with President Kelly, we are developing a Sustainability Plan. There will be a meeting the week after Thanksgiving to determine sustainability initiatives and these items will be brought back to the Committee at a later time.

Chair Tillet thanked Ms. Christine Ledford on behalf of the Committee and Board for managing capital and facilities operations over the last several years and for providing her leadership and guidance over these areas. He wished her well in her retirement.

There being no further discussion the meeting was adjourned at 8:49 a.m.