1. Housing & Residence Life Rate Proposal
Dean Kennedy, Director of Housing & Residence Life
February 20, 2018

2. Why Rates Increase
Housing & Residential Life is an “auxiliary” service and must be self-supporting. Our Department does not receive state funding and relies on housing fees as revenue.
It is typical that housing rates increase on average between 3 and 5 percent a year...
Operation costs
Facility repairs and improvements
Program Improvements
Debt Service
Annual inflationary cost increases in food and labor
New Facilities

3. Rate Proposal
4.78% average increase in residence hall, suite, townhome, and apartment rates
3.89% average increase in apartment rates
.80% average increase in Summer ’19 conference rates

4. Housing Rate Rationale
Increasing Administrative Service Charge
Increase in salaries and benefits
Increase in utilities
Aging facilities = need for increased reserves
Adjust to match market rates
Revenue has not kept pace with inflationary costs thus decreasing net income ratio and impacting return to reserves for capital projects
Honors College & Sawtooth Hall

5. Boise State/EdR Partnership
New residence hall with capacity for 650 students (10% yearly increase in applications)
Brand new building, center of campus
Dining commons, classrooms, study spaces
Projected annual budget impact of $1M
Boise State pays staff/RHA rent & desk operations
Towers is “overflow” only; can’t budget revenue
Review the 5-year financial forecast 2 years ago

6. Previous 5-year Financial Forecast
FY17
FY18
FY19
FY20
FY21
FY22
Proposed Rate Increase
~4.2%* 5% 4% 3%
 No Towers
Facilities Usage & Room Rent
$10,518,057
$10,112,419
$10,512,261
$10,928,004
$11,253,423
$11,588,556
Summer Conferences
$381,430
$396,687
$412,555
$429,057
$446,219
$464,068
Miscellaneous Revenue
$304,695
$310,789
$317,005
$323,345
$329,812
$336,408
Total Revenue
$11,204,182
$10,819,895
$11,241,821
$11,680,406
$12,029,454
$12,389,032
Total Expenses
$10,620,334
$11,252,912
$11,496,124
$11,719,474
$11,649,721
$11,896,528
Net Income(Loss)
$583,848
-$433,017
-$254,303
-$39,068
$379,733
$492,503
Beginning Fund Balance
$1,275,297
$1,037,348
-$514,186
-$1,380,796
-$2,178,054
-$2,478,655
Net Income
Transfers to Student Affairs ($55k) and OIT (student wages - $10k)
$65,000
$65,650
$66,307
$66,970
$67,639
$68,316
Capital Projects - line itemed
$756,797
$1,052,867
$546,000
$691,220
$612,695
Ending Fund Balance
-$2,667,162
Large Cap Improvement projects
$50,000
$150,000
$250,000
$350,000
$450,000
$550,000
Savings for Future Capital Projects
$905,474
$742,048
$576,173
$479,982
$371,909
$371,910
Ending Liquid Fund Balance
$81,874
-$1,406,234
-$2,206,969
-$3,008,036
-$3,300,564
-$3,589,072

7. Specifically for 2018-2019 Campus-wide camera project
Increased bandwidth and WAPs
New card access system
Maximize profit for high demand room types
Maximize affordability for lower price points
Outsource “turn” to increase revenue
Keiser/Taylor floor coverings
Maintain staff to student ratio – supporting student success

8. First Year Student GPA

9. Proposed Residence Hall, Suite, and Townhome Rates
FACILITY
ROOM TYPE
FY18
FY 19
Chaffee A/B
single/community bath
$4,500
$4,905
double room/community bath
$3,850
$3,966
Chaffee D
double room/shared bath
$4,800
$5,232
Driscoll/Morrison
$5,200
$5,500
double/community bath
$4,200
$4,494
Honors/Sawtooth
$6,294
$6,483
Single room/shared bath (4 people)
$6,862
$7,068
Single room/shared bath (2 people)
$7,190
$7,406
Suite w/ kitchen; single room/shared bath (4 people)
$7,386
$7,608
Suite w/ kitchen; single room/shared bath (2 people)
$7,824
$8,059
Keiser/Taylor
single/shared bath
$5,900
$6,195
double/shared bath
$5,000
Lincoln
single/private bath
$6,350
$6,668
Efficiency single/shared bath
$6,050
$6,353
Towers (if occupied)
$4,944
University Square
efficiency single/shared bath
$6,262
$4,950
University Suites
$5,700
$5,871
Yale
$5,775
$3,000
$3,300
If asked why the different rate increases:
In looking at our revenue, we have to increase our revenue in order to remain self-supporting and take care of our aging facilities. With 94% of our revenue coming from student rent, we raising our rates is the most effective way to increase our revenue. The rate increases we are proposing keep our housing rates comparable to our local and regional market, including the institutions that are competing for prospective Boise State students.

10. Proposed Apartment Rates
APARTMENT COMPLEX
FY18
FY19
University Heights & Manor (1 BR)
$559
$576
University Heights & Manor (2 BR)
$582
$623
University Park (2 BR)
$638
$657
University Park (3 BR)
$792
$816
University Village (2 BR)
$736
$758

11. Proposed Summer 2019 Conference Rates
Standard Rates
Traditional Hall – Double Occupancy
$26.00
$26.50
Traditional Hall – Double Room as Single Occupancy
$30.00
$30.25
Suite – per bedroom
Suite with Kitchen – per bedroom
$37.50
$37.75
Townhome – per bedroom
$42.00
$42.50
Honors College/Sawtooth - Double w/o kitchen
N/A
Honors College/Sawtooth - Single w/o kitchen
$36.00
Honors College/Sawtooth - Single with kitchen
Rates for Boise State Groups
$19.50
$19.75
$23.00
$23.25
Suite – Per Bedroom
Suite with Kitchen – Per Bedroom
$31.00
$31.25
Townhome – Per Bedroom
$34.50
$35.00
$27.00
Our proposed conference rates for Summer of 2019.
The revenue generated by our summer conference program supplements our annual revenue by an average of $400k a year, which helps us keep our student rental rates as low as possible.
Here is a snapshot of those rates.
NOTE: An administrative fee of $5 per conference participant applies, as well as state and local taxes totaling 13% (6% State Sales Tax, 5% Greater Boise Auditorium District, 2% State Lodging) depending on the group.

12. FY19 Operating Budget Facility Usage and Room Rent $12,318,203
$12,318,203
Summer Conferences Revenue
$510,000
Miscellaneous Revenue
$55,860
Total Revenue
$12,884,063
Total Expenses (including recent decision to cover FIR rent in the new building)
$11,690,637
Net Income(Loss)
$1,193,426
Beginning Fund Balance
$3,402,067
Net Income
Internal Transfers
-$560,102
Capital Projects - line itemed
-$490,580
Ending Fund Balance
$3,544,811
Large Cap Community Improvement projects
$50,000
Savings for Future Capital Projects Outlay (less projects completed)
$1,272,865
Ending Liquid Fund Balance
$2,221,946
<38% of recommendation
Treasury recommendation for reserves balance is 1.5X debt service ($3,887,289)
$5,822,709
If we received the rate increase we are proposing, This table handout reflects our operating budget for the next fiscal/academic year.
What I want to point out is that even with this rate increase, our net revenue is still slightly negative. We anticipate some salary savings to cover us for next year, but even with this rate increase (if it gets approved), ALL of our capital projects and inter-department transfers are coming out of our reserves (about $1M). While this is not financially prudent, this rate structure over the next few years will actually start getting us to a point where we are actually putting small amounts into our reserves (AFTER transfers and capital projects).
Appendix I in your handout showcases our 5 year budget projection where you can see that in 3 years, we start recovering from our current budget situation, if we can get the proposed rate increases at the top. Please know that expense projections are about 1% a year, but with FLSA, benefits, and utilities, it may take a couple more years.

13. Current 5-year financial forecast
FY19
FY20
FY21
FY22
FY23
FY24
Proposed Rate Increase
~4.34%* 3%
Facilities Usage & Room Rent
$12,318,203
$12,679,167
$13,050,875
$13,433,648
$13,827,816
$14,233,721
Summer Conferences
$510,000
$515,100
$520,251
$525,454
$530,709
$536,016
Miscellaneous Revenue
$55,860
$53,220
$53,752
$54,290
$54,833
$55,381
Total Revenue
$12,884,063
$13,247,487
$13,624,878
$14,013,392
$14,413,358
$14,825,118
Total Expenses
$11,690,637
$11,968,765
$12,392,642
$12,300,567
$12,460,587
$12,623,191
Net Income(Loss)
$1,193,426
$1,278,722
$1,232,236
$1,712,825
$1,952,771
$2,201,927
Beginning Fund Balance
$3,402,067
$3,419,911
$3,211,804
$2,825,498
$3,090,155
$3,416,797
Net Income
SAEM Support, LLP Collaboration, OIT, etc.
-$560,102
-$576,905
-$594,212
-$612,038
-$630,399
-$649,311
Capital Projects - line itemed
-$615,480
-$909,924
-$1,024,330
-$836,130
-$995,730
-$876,880
Ending Fund Balance
$4,092,533
Large Cap Improvement projects
$50,000
Savings for Future Capital Projects Outlay
$2,875,791
$1,363,212
$717,812
$412,552
$733,676
$790,054
Ending Liquid Fund Balance
$494,120
$1,798,592
$2,057,686
$2,627,603
$2,633,121
$3,252,479

14. Residence Hall, Suite, Townhome Rate Comparison
Selected List of Peer & Regional Institutions
Double room/
community bathroom
Double room in suite, shared bathroom
Single room in suite, shared bathroom
Single room in townhouse, shared bathroom
Boise State University (proposed FY19 rates)
$3,966
$5,232
$5,871
$6,353
Idaho State University
$2,790
$3,150
$3,780
N/A
LaPointe Apartments
$6,255* **
RiverEdge Apartments
$5,950* **
University of Idaho
$4,430
$6,080
University of Nevada - Reno
$5,360
$6,765
$6,870
$6,130
University of Washington
$6,129
$9,144
$10,770
$11,421
Utah State University
$2,240
$3,240
$3,950
$5,720
Vista Apartments
$6,750* **
Washington State University
$9,086
$9,110
$9,383
$9,786
This is an abbreviated list of our peer institutions and local competitors for student housing.
With the exception of Boise State, all the prices listed are current prices; and will likely increase for next year. So even our prices for next year are cheaper than this year’s prices for many of our competitors.
Here is a highlight of some of those properties. You will see that Boise State remains one of the lower-priced options in our region AND across the institutions who compete for Boise State students. For example, of ALL our regional institutions, we could only find 5 who have housing rates less expensive than Boise State: Brigham Young, Idaho State, Lewis-Clark, Oregon State, Utah State, and Weber State . . And how many of those institutions are located in an area like Boise??
In addition, the Lincoln Townhomes remains cheaper than the three newer properties that opened up across capital, once you take into account that they charge addition for utilities and you are guaranteed on-campus parking.
* Most comparable unit (2 bedroom, 2 bathroom)
** Rate does not include utilities

15. Local Apartment Rate Comparison
Selected List of Local
Apartment Complexes
One Bedroom, One Bathroom
Two Bedroom, One Bathroom
Three Bedroom, One Bathroom
Boise State University – Heights*
$576
$623
N/A
Boise State University – Manor*
Boise State University – Park*
$657
$816
Boise State University – Village*
$758
Creek Bend
$900
Eagle Pointe
$825
Iconic Village $
$1,227
Morrison Park $
Oregon Trail
$739
$1,662
River Walk
$850
$975-$1050
Spring Creek
$915
$1,137*
Here is a this list of our local competitors for apartment housing for students.
You will see that Boise State remains the lower-priced option in our student housing market (by at least $70)
*Two bedroom, two bathroom unit
Note: Rates for apartment complexes recently built (LaPointe, RiverEdge, and Vista) are included in the Residence Hall, Suite, and Townhome Rate Comparison table due to their leasing structure and unit configuration.

16. Questions?

17. Dean Kennedy
Thank You