University of North Florida
Board of Trustees
Finance and Audit Committee

Meeting
June 19, 2002
University Center at 9:00 a.m.

Minutes

Members Present 

Mr. Steve Halverson (Chair), Mr. T. O’Neal Douglas, and Ms. Donna Harper Gibbs

Members Absent 

Mr. Wilfredo J. Gonzalez, Ms. Joan Wellhouse Newton, and Mr. James Stalling

Other Trustees Present 

Ms. Carol Thompson, Mr. Kevin Twomey, and Ms. Toni Crawford

Item 1 Call to Order 

Chair Halverson convened the meeting at 9:05 a.m.

Item 2 Approval of Minutes  

As there were insufficient members in attendance to meet quorum, the April 18 minutes will be approved at the next Finance and Audit Committee meeting. All actions decided upon at this meeting will take the form of recommendations to the Board of Trustees.

 

Chair Halverson thanked everyone for attending today’s meeting. He also thanked the University’s administrative staff for preparing the financial materials for the meeting.

Item 3 Approval of Parking Fees for 2002-2003 

Chair Halverson asked Mr. Crosby to report on the Parking Committee’s recommendations. There were several factors contributing to the decision to increase parking fees. The parking system must generate a debt service coverage ration of 1.25:1 on the outstanding bonds, meaning that revenues generated must be 1.25 times greater than operating expenditures and debt service. Other contributing factors include a significant increase in the overhead assessment, full-cost assumption by the parking system including items such as parking lot electricity, parking lot maintenance, lighting upgrades, general expenses, and salary upgrades.

 

An increase in daily visitor fees from $2.00 to $3.00 was proposed by the Parking Committee but was vetoed by the president.

 

Trustee Gibbs made a motion to approve the recommended parking fees for 2002-2003. The motion was seconded by Trustee Douglas and passed unanimously.

Item 4 Approval of 2002-2003 Use of Public Capital Outlay (PECO) Funds 

The State Legislature passed legislation authorizing the Board of Trustees to allocate $10,898,000 in PECO funds assigned to UNF. Once appropriated, these funds can be reallocated to approved projects by the Board of Trustees. The Board received recommendations to fund an addition, renovations and remodeling to the Thomas G. Carpenter Library ($9,700,000) and the remodeling of Buildings 2 and 3 ($1,198,000).

 

Chair Halverson requested that Ms. Owen seek clarification from the Senate appropriation language addressing flexibility in the reallocation of funds later in the year.

 

Trustee Gibbs moved to approve the 2002-2003 PECO fund allocations recommended to the Board. The motion was seconded by Trustee Douglas and passed unanimously by the trustees present.

Item 5 2002-2003 Allocations of Courtelis Matching Funds 

The State Legislature granted new and unprecedented authority and flexibility for the Board of Trustees for each university in determining whether an individual project eligible for match will be matched and the level to be matched within appropriated funds. The Board must report these decisions to the Governor, Senate President, Speaker of the House of Representatives, and the State Board of Education by October 1, 2002.

 

In discussing the Courtelis program, Trustee Douglas honored the memory of Mr. Alec P. Courtelis as an outstanding citizen and successful businessman. Mr. Courtelis launched this program in the state university system. Chair Halverson thanked Trustee Douglas for his comments acknowledging the contributions of Alec Courtelis.

 

Trustee Douglas motioned to approve the 2002-2003 allocation of Courtelis Matching Funds as outlined in the University’srecommendation. Trustee Gibbs seconded the motion and it passed unanimously.

Item 6 Approval of 2002-2003 Budget, Including Local Initiatives and Tuition Increase for Out-of-State and Graduate Tuition 

In discussing the 2002-2003 budget, President Hopkins addressed the Operating Revenue Sources for 2002/03 and Dr. Kline addressed the Operating Expenditure Budget for 2002/03.

 

The proposed tuition increases were also discussed. The Florida Legislature passed the General Appropriations Act on May 16, 2002, for the fiscal year commencing July 1, 2002 authorizing the Board of Trustees for each university to increase fees beyond those originally established by the Legislature as follows: (a) up to 5% in additional matriculation fees for in-state graduate students; and (b) up to 10% in out-of-state tuition fees for undergraduate and graduate students.

 

President Hopkins and Student Government President Hank Rogers appointed a committee of four student representatives and four faculty/staff representatives to make recommendations for the President’s consideration in determining the proposed tuition increases. Ms. Owen reported the ad hoc committee recommendations to increase:

  • Matriculation fees for resident graduate students by 5%,
  • Out-of-state tuition fees for undergraduate students by 4%, and
  • (3) Out-of-state tuition fees for graduate students by 2%.  

The trustees present unanimously approved tuition increases.

 

Chair Halverson requested that Ms. Owen prepare a motion to adopt the Fall 2002 Schedule of Tuition and Fees rule as part of the tuition increase process. The proposed rule must be effective prior to the beginning of the Fall 2002 term.

 

After lengthy discussion about the proposed budget, a motion was made by Trustee Douglas to approve the 2002-2003 budget, that included local initiatives and the tuition increases for out-of-state and graduate tuition as proposed by the committee. The motion was seconded by Trustee Gibbs and passed unanimously.

Item 7 Approval of 2003/04-2007/08 Fixed Capital Outlay Budget Request 

Mr. Phil Turner, Director of Facilities Planning, presented the 2003/04-2007/08 Fixed Capital Outlay Budget Request for potential incorporation into the Florida Board of Education’s budget request. The Board of Trustees is charged with approving the plan for the University.

 

Trustee Gibbs motioned that the 2003/04-2007/08 Fixed Capital Outlay Budget Request be approved. The motion was seconded by Trustee Douglas and was passed unanimously by the Board.

Item 8 2003-04 Legislative Budget Request University Initiatives 

President Hopkins addressed the special initiatives and their relationship to UNF’s proposed Strategic Goals, stating the necessity for developing ways to gauge the University’s progress toward meeting the goals and objectives.

 

Trustee Gibbs made a motion to approve the 2003-04 Legislative Budget Request University Initiatives. Trustee Douglas seconded the motion and it was passed unanimously.

 

Chair Halverson made recommendations for review, development and approval of financial plans that would better assist the Board in decisions regarding future budgetary concerns.

Item 9 Adjournment

The meeting was adjourned at 12:00 p.m.