1. Grand Rapids Community College Board of Trustees 2013-14 Proposed Budget June 3, 2013

2. AGENDA 1.General Operating Fund 2.Restricted Fund 3.Designated Fund 4.Auxiliary Fund 5.Plant Fund

3. General Operating Fund Summary Based on the tuition adjustments approved in April, the following budget is presented for your approval: Revenues $106,742,766 Expenditures & Net Transfers$106,742,766 Addition to Fund Balance$-0- Fund Balance - 7/1/13 $10,998,649 Fund Balance - 6/30/14$10,998,649 Fund Balance - % of Revenues10.3%

4. General Operating Fund Revenue Sources

5. General Operating Fund Revenue Sources - Historical

6. General Operating Fund Expenditures

7. Restricted Fund Used to account for funds restricted as to use by external funding sources: Federal sources$74,869,62795.6% State sources$1,553,1842.0% Local sources$661,1680.8% College match (via transfer)$1,238,0001.6% Total funds available$78,321,979 Expenditures$78,321,979 Net Revenue (Exp)$0

8. Restricted Fund Significant changes from 2012-13 Mid Year Federal: $1.1 million decrease; due primarily to non-renewal of the Ottawa County Employment Services (Michigan Works) contract, and estimated lower federal work study fund due to sequestration. State/Local: $23,000 decrease; lower projected future spending for MI New Jobs Training Program contracts is partially offset by a $30,000 grant from the Kellogg Foundation for a culture audit. Total revenue decrease = $1,167,749, or 1.5%

9. Designated Fund Funds internally designated for specific purposes and/or receiving substantial external revenues (e.g. admission fees, contract revenues, etc. ) Significant Changes: Training Solutions is projecting lower revenues from contracted training activity. Related expenses have been adjusted accordingly. Transfers from the GF have been reduced by approx. $1 million from 2012- 13 mid year due to: – Elimination of the budgeted transfer to budget stabilization and use of $77K this fund for one-time mandatory requests in 2013-14 ($622,000) – Elimination of GF operating for Training Solutions. This program will need to be self sustaining from operations and available fund balance ($115,000) – Elimination of the one-time transfer to fund 100 th anniversary activities ($100,000) – Temporary reductions in various other transfers, including SLT Initiatives, due to projected available fund balances at June 30, 2013 ($165,000)

10. Auxiliary Fund BookstoreFood ServiceParking Printing ServiceTotal Revenue$760,000$1,312,000$2,285,000$1,403,000$5,760,000 Expense($262,500)($1,246,500)($1,295,000)($1,494,000)($4,298,000) Capital($80,000)$0($1,230,000)($10,000)($1,320,000) Operating Rev (Exp)$417,500$65,500($240,000)($101,000)$142,000 Trans to Gen Fund($350,000)($100,000)($450,000)$0($900,000) Net Rev (Exp)$67,500($34,500)$690,000($101,000)($758,000) Overall, revenues increased 3.9%, largely due to the agreement to provide printing services to the KISD. Auxiliary operations continue to provide $900,000 in GF support, in addition to funding for the following projects: Technology and equipment upgrades for the Bb Raider Card system - ($80,000) Bostwick parking ramp lighting - ($830,000) Sneden parking ramp repaving - ($400,000) Copier equipment replacement ($10,000)

11. Plant Fund Operating Expenditures planned in the 2013-14 budget: IT Capital/Tactical Plan - $600,000 – Includes classroom technology upgrades, phone system upgrade, PC “cascading”, etc. Capital Allocation and Deferred Maintenance - $812,000 – Deferred maintenance allocation - $600,000 – Recurring funding for vehicle replacement, SWD equipment, bond amortization and classroom & office moving costs - $212,000 Cook Hall renovations - $8,779,600 (offset by $6,242,000 in donations to be received from the Foundation) Debt service on 2012 renovation bonds, paid with revenues from the Facilities Fee - $1,973,393 Debt service on other bond indebtedness - $5,996,000

12. Questions/Comments