Repository: UIHistories Project: Board of Trustees Minutes - 1972 [PAGE 378]

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368

BOARD OF TRUSTEES

[July 21

AUTHORIZATION TO W I T H H O L D STUDENT TUITION TO SUPPORT T H E REVENUE BOND SERIES OF 1 9 S 2 ( F O U R T H STREET RESIDENCE HALLS AND BUSEY-EVANS H A L L S ) , URBANA (29) Bonds were sold in 1952 to finance the construction of two new units, and the remodeling and rehabilitation of an existing unit of the Men's Residence Halls (Fourth Street Residence Halls) plus the rehabilitation and modernization of Busey Hall and Evans Hall (Busey-Evans). The bond indenture provided that the University would establish rents, charges and fees for the use of the buildings in an amount sufficient to pay the reasonable costs of operation and maintenance of the facilities, and to provide for interest payments and the retirement of indebtedness. T h e F o u r t h Street Residence Halls have been incurring deficits, essentially because a large percentage of the second semester vacancies incurred in all halls have been consolidated in these halls. While this has hurt the Fourth Street Residence Halls financially, it has maximized cost reduction efforts and increased conference rental income for the entire residence hall system, thereby reducing the tuition requirement for all of the other halls. T h e Revenue Bond Issue of 1952 accumulated a substantial additional bond calling reserve some years ago, and this has been used to absorb the losses. T h e current balance in this reserve is $171,000, but this year's deficit (year ending J u n e 30, 1971) will approximate $73,000. T h e deficit for 1971-72 will be even higher, which means that by June 30, 1972, the reserve will practically be depleted. T h e Housing Division plans to intensify its spring semester vacancy consolidation efforts by utilizing the Fourth Street Residence Halls, which will increase the deficit of that operation, but will reduce the tuition requirements of the other residence halls operations, resulting in a net savings of tuition utilized. T h e University is authorized to withhold general student tuition to the extent necessary to support revenue bond projects. Accordingly, the Chancellor of the Urbana-Champaign campus, the Executive Vice President and Provost, and the Vice President and Comptroller recommend that the Board of Trustees authorize the withholding of tuition of up to $175,000 per year from general student tuition, or as much thereof as may be needed each year, beginning in 1971-72 to meet the covenants of the resolution authorizing issuance of bonds for the Urbana-Champaign Residence Halls Revenue Bonds, Series of 1952. I concur.

On motion of Mr. Grimes, this recommendation was approved. ROLL CALL ITEMS Mr. Pogue moved that a roll call vote be taken and considered the roll call vote on each of the next five items and that the Secretary be instructed to record such vote as the separate vote of each Trustee on each item. This motion was adopted by the following vote: Aye, Mr. Forsyth, Mr. Grimes, Mr. Hahn, Mr. Howard, Mr. Hughes, Mr. Neal, Mr. Pogue; no, none; absent, Dr. Bakalis, Governor Ogilvie, Mr. Steger, Mr. Swain.

INCREASE IN CONTRACT FOR PARKING STRUCTURE. CHICAGO CIRCLE (30) T h e President of the University, with the concurrence of appropriate administrative officers, recommends that the contract with Mayfair Construction Company, Chicago, for construction of a parking structure at the Chicago Circle campus be increased in the amount of $13,505.35 for additional foundation work. Funds are available in the project budget. O n m o t i o n of M r . P o g u e , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d b y the following vote: A y e , M r . Forsyth, M r . Grimes, M r . H a h n , M r .