Repository: UIHistories Project: Board of Trustees Minutes - 1942 [PAGE 422]

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UNIVERSITY OF ILLINOIS

419

( f ) Operation and maintenance of buildings, including repairs and replacement of equipment. (g) Responsibility for financial management in accordance with an approved budget. ( h ) Detailed bookkeeping and financial reporting, under systems approved by the Business Office.

On motion of Mrs. Grigsby, these recommendations were adopted.

CHANGE IN ROOM RATES FOR RESIDENCE HALLS (18) T h e Physical Plant Department has received notice from the State Department of Finance that the Retailers' Occupational T a x law was amended by the 62nd General Assembly to include "schools which operate dining rooms or cafeterias" and "student fraternities or sororities who sell food to their members or outsiders." This tax will affect food sold at the Union Buildings at Urbana and Chicago and also the Residence Halls. This addition to the cost can easily be taken care of in the Union Buildings because there is no fixed contract, and adjustments can be made in the daily prices of the meals served. However, the problem is serious in the Residence Halls because the University operates on the basis ot annual contracts entered into at the beginning of the academic year. The application of this tax of two per cent will result in an additional annual expense of approximately $4,200 in the operation of the Residence Halls not contemplated when the financial program was approved for the construction of the Men's Residence Hall. In view of the increasing food prices and the possibility of reduced enrollments, with subsequent vacancies in the halls, the University cannot very well assume this expense. The Director of the Physical Plant Department recommends, therefore, that the amount previously approved by the Board of Trustees for room and board in the Residence Halls be increased by the amount of the above tax, which will be approximately $5.00 per occupant for the academic year. No contracts for the coming year have been executed to date and, therefore, this change may still be put into effect. As the construction of the Men's Residence Hall is approaching completion, it is apparent that it will be impracticable to adhere to tbe two rates originally proposed, namely, $426 for single rooms and $376 for double rooms. T h e Director of the Physical Plant Department recommends that authority be granted to establish rates varying from $373 to $431, with the understanding that the total gross income will not be less than that previously estimated, with allowance made for the above adjustment for taxes. I concur in these recommendations.

On motion of Mr. Fornof, these recommendations were approved.

REMOVAL OF IMPROVEMENTS O N PROPERTY AT 1206 W E S T GREEN STREET, URBANA

(19) The University has recently acquired the property Street, Urbana, for future development of the campus. Physical Plant Department recommends that in view of dwelling on that property all improvements on the site be native would be to improve the property for renting, which believe would be justified. 1 concur in his recommendation. REPORT OF FINANCE at 1206 West Green The Director of the the condition of tbe removed. T h e alterthe Director does not

On motion of Mr. Davis, this recommendation was approved.

COMMITTEE

At this point, Mr. Karraker, for the Finance Committee, reported that the investment counsel for the University, the Trust Department of the First National Bank of Chicago, has recommended the following