June 24, 2025 Audit Finance Committee Meeting Minutes

The Audit Finance Committee of the Board of Trustees of Illinois Valley Community College District No. 513 met at 3:30 p.m. on Tuesday, June 24, 2025 in the Board Room (C307) at Illinois Valley Community College.

Committee Members Physically Present

William F. Hunt, Committee Chair

Everett J. Solon

Maureen O. Rebholz

Committee Members Virtually Present

Committee Members Absent

Board Members Physically Present

Jay K. McCracken

Board Members Virtually Present

Lynda Marlene Moshage

Others Physically Present

Tracy Morris, President

Kathy Ross, Vice President for Business Services and Finance

Mark Grzybowski, Vice President for Business Services

Vicki Trier, Vice President for Academic Affairs

Mary Beth Herron, Director of Human Resources

Eric Johnson, Controller

Others Virtually Present

 

Mr. Hunt called the meeting to order at 3:30 p.m.

PUBLIC COMMENT

None

TENTATIVE BUDGET

Ms. Ross presented a draft of the Budget in Brief. Ms. Ross acknowledged and thanked the members of Budget Council and their hard work to prioritize requests and develop the best budget for the institution. The members were Dr. Morris, Dr. Vicki Trier, Mark Grzybowski, Rebecca Zamora, Jennifer Scheri, Justin Denton, Tracy Lee, Mike Phillips, Eric Johnson, Nikki Van Nielen, and Kathy Ross.

Highlights of the tentative budget included:

  • The goal of the Budget in Brief is to provide the budget information in a condensed version that is easy to read and shared with all employees. It clearly describes the process, requests submitted through the budgeting process and how they were prioritized. This year, it also includes the Institutional and Strategic Goals and how they align with the budget.
  • Budget assumptions include property tax revenue at a 11.1% increase; CPPRT at a 40.0% decrease; State funding (unrestricted) at a 4.3% increase; tuition and fees at a 12.6% increase; credit hours at a 7.7% increase; wage increases at a 1.8% increase; health insurance at a 3.0% increase as of January 1, 2026; and an overall decrease in headcount of 37, with the majority from part-time academic support and part-time faculty. Personnel changes included reorganization, reductions, and additions based on need.
  • Significant items highlighted include the continued additional grant opportunities in the Non-Credit Workforce grant ($121,300), PATH grant ($312,448), and ATOMAT grant ($171,173). Wireless/Wired Network Upgrade includes $350,000 in the FY2026 for Hardware as a Service to upgrade both our wireless/wired network that is at end of life and was identified as a critical item in the IT Strategic Plan. Tuition rates included a $2.00 increase in the technology fee to help offset this cost. FY2026 budget includes a transfer from Working Cash Investment Income of $350,000 to the Education Fund to cover the first year. FY2026 budget includes the 2025 Campus Renovations for the Microbiology, Assessment Center, and Distance Learning Classrooms. It includes utilizing PHS and fund balance reserves for these renovations. The FY2026 budget includes funding for the Agriculture Education Center. It includes the DCEO project for the Ag site work and parking lot, and the EDA project and Bond proceeds transfer for the new building.
  • Total budgeted revenues for all funds increased by $2,145,853, or 6.2% from the FY2024 budget.

Dr. Rebholz entered the meeting at 3:56 p.m.

  • Total budgeted expenditures for all funds currently shows increased by $1,877,569, or 4.2% from FY2025.
  • Budgeted capital expenditures include the Agricultural Education Center, Ag Site Work/Parking Lot, PHS projects, and expenditures from the Operating Funds.
  • Budgeted operating revenues include an increase of $662,358; or 2.3% from FY2025.
  • Budgeted operating expenditures currently include an increase of $2,096,120; or 7.1% from FY2025.

FUND BALANCE DISCUSSION

Ms. Ross provided an update on the estimated Fund Balance as of June 30, 2024. The 2026 Campus Renovation priorities identified by the Facilities Committee at their meeting earlier this month were shared. Those priorities include:

  • Relocate IT Offices
  • Interior Lighting-Phase II
  • Renovate Academic Support Center
  • Building E Office Space

PMA Presentation

Tammie Beckwith Schallmo, Senior Vice President and Managing Director for PMA Securities, LLC discussed municipal bonds, borrowing options for capital projects and presented financing scenarios, methods of sales, and a financing timeline for the possibility of a Working Cash Bonds issuance for Community Colleges as a funding option for the 2026 Campus Renovation projects.

GRANT UPDATES

Ms. Ross reviewed the Grant Updates as of May 2024. Highlights included:

  • Ag Building Complex timeline was reviewed.
  • Distance Learning Grant equipment was installed in one classroom at the Ottawa Center as well as the Huddle Room for Counseling. The remainder of the classrooms are being renovated as part of the 2025 Campus Renovations.

OTHER

None

ADJOURNMENT

Mr. Hunt declared the meeting adjourned at 5:14 p.m.