February 5, 2025 Board of Trustees Audit/Finance Committee Meeting

The Audit Finance Committee of the Board of Trustees of Illinois Valley Community College District No. 513 met at 5:00 p.m. on Wednesday, February 5, 2025 in the Board Room (C307) at Illinois Valley Community College.

Committee Members Physically Present

Jay K. McCracken, Committee Chair

Maureen O. Rebholz

Committee Members Virtually Present

Amy L. Boyles

Committee Members Absent

Board Members Physically Present

Others Physically Present

Tracy Morris, President

Kathy Ross, Vice President for Business Services and Finance

Mark Grzybowski, Vice President for Student Services

Vicki Trier, Vice President for Academic Affairs

Eric Johnson, Controller

Others Virtually Present

The meeting was called to order at 5:00 p.m. by Mr. McCracken.

PUBLIC COMMENT

Mr. Volker noted he recently attended a Kendall County meeting of serval planning organizations. He came away with an appreciation for those that volunteer to do public service.

THREE-YEAR FINANCIAL PLAN (FY26-FY28)

The Financial Plan for fiscal years 2026-2028 was highlighted. Ms. Ross thanked President’s Council for helping lead the process as well as Justin Denton, Eric Johnson, and Nikki Van Nielen for providing information.

Ms. Ross reviewed the operating revenues for the Education and Operations and Maintenance funds for the next three years. The overall operating revenues show a 1.98 percent increase for FY2026 from the FY2025 budget; FY2027 is a 2.88 percent increase from FY2026; and FY2028 is a 2.68 percent increase from FY2027. The major sources of revenue for these funds consist of property taxes, tuition, and state funding. Ms. Ross reviewed the assumptions for each of these funding sources.

The overall operating expenditures show a 15.88 percent increase for FY2026 from the FY2026 budget; FY2027 is a 9.98 percent decrease from FY2026; and FY2028 is a 2.81percent decrease from FY2027. The biggest contributing factor to the increase and decrease is capital. Ms. Ross reviewed expenditure assumptions for each expenditure category.

The FY2026-FY2028 Financial Plan includes a total of $19.9 million in capital expenditures through grants, PHS projects, and strategic fund balance reserve spending for master plan projects previously identified as priorities through the Board of Trustees Facilities Committee.

TUITION AND FEE RECOMMENDATION DISCUSSION

Ms. Ross stated the recommendation is a FY2026 increase to tuition and fees by $6.00, from $140.00 to $146.00 per credit hour. These would be a $4.00 increase to tuition and $2.00 to the technology fee. The Financial Plan assumes incremental increases in FY2027 and FY2028 as well.

COURSE FEES/ADJUSTMENTS

Dr. Trier stated there are currently 293 active courses with approved course fees. The recommendation includes changes to 182 course fees. There were 164 increases, 4 decreases, 13 new course fees, and the reinstatement of 1 course fee after the Ealy Childhood “ECACE” Grant is no longer available to cover the course fee. Course fees primarily cover consumables and increases are in line with the cost of materials.

FUND BALANCE DISCUSSION

Ms. Ross provided an update on where the fund balance reserves stand as of June 30, 2024. President’s Council had a presentation from DKA on estimated project costs and timeframe. The Board Facilities Committee will be meeting on March 6 which will include sharing renderings for the spaces and review the draft of the Master Plan. An updated Capital Project and Funding Plan was reviewed.

OTHER

Dr. Rebholz commented on a great conversation with a former student on her experiences at IVCC.

Mr. McCracken commented what an outstanding job everyone is doing and it is reflective of getting the right people in positions to make it happen.

ADJOURNMENT

Mr. McCracken declared the meeting adjourned at 6:17 p.m.