Repository: UIHistories Project: Board of Trustees Minutes - 1956 [PAGE 454]

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UNIVERSITY OF ILLINOIS

451

fications, and all other necessary costs and charges incident to the completion of the work $ 680 000 "For equipment at Urbana-Champaign and Chicago 275 000 "For contingencies to cover expenditures for purposes for which the amount specified in any of the above items enumerated is, or becomes, insufficient 440 000" Total $8 815 000 This Act also reappropriates $3,610,000, or so much thereof as may be unexpended in balances in appropriations made for the biennium 1953-55, for construction of buildings and other permanent improvements which will not be completed before the original appropriations would otherwise lapse. In House Bill 884 "For studies and preliminary plans for a Plant Sciences Building $ 40 000" I recommend that these funds be appropriated for the purposes indicated. Recommendations for awards of contracts and for other expenditures from these appropriations will be submitted to the Board in accordance with the usual procedure.

On motion of Mr. Livingston, these funds were appropriated, as recommended, by the following vote: Aye, Mr. Bissell, Mr. Herrick, Mrs. Holt, Mr. Johnston, Mr. Livingston, Mr. Megran, Mr. Nickell, Mr. Swain, Mrs. Watkins, Mr. Williamson; no, none; absent, Mr. Stratton.

APPROPRIATION FOR CHICAGO HOUSING REVENUE BOND ISSUE DEBT SERVICE (16) The University of Illinois has constructed at the Chicago Professional Colleges a student residence hall, a staff apartment building, and has remodeled certain other housing facilities and the second unit of the Dentistry-MedicinePharmacy Building at a total cost of $4,600,000. The entire program was financed through the issuance of revenue bonds to be retired by the net operating income of the housing projects plus a laboratory fee charged students at the Chicago Professional Colleges. These sources of funds were inadequate to meet the debt service requirements in 1954-55 by $51,000 and it is estimated that the income in 1955-56 will be deficient by $36,000. The deficiency is due mainly to ( a ) inability to fill the residence halls to capacity and (b) inability to realize the additional fee income which was anticipated from the increase in enrollment. It is anticipated that the residence halls will be filled in 1955-56, but the fee income will still be less than the amount required for the debt service. The Board of Trustees covenanted that it would charge a fee adequate to pay the costs of operation and maintenance and debt service. Since the rental charges are as high as, or higher than, any rates now in effect or likely to be in effect during the next year at other Chicago institutions, it is not practical to seek additional funds from this source. By the year 1959-60 enrollment increases will have materialized so that the operation will be on a self-supporting basis. Until that time, funds to meet deficiencies should be appropriated by the Board. It is therefore recommended that the Board appropriate from general funds an amount to offset the deficiency in the income from student fees for the years '954-55 and 1955-56. The remainder of the deficit in 1954-55 can be met from accumulated funds in the housing operation. The appropriation required for this purpose for the years 1954-55 and 1955-56 is $77,ooo. I recommend that this appropriation be made from the General Reserve Fund. M r s . W a t k i n s , C h a i r m a n of t h e C o m m i t t e e o n t h e C h i c a g o D e p a r t ments, r e p o r t e d t h a t h e r C o m m i t t e e s u p p o r t s t h i s r e c o m m e n d a t i o n a n d moved its a d o p t i o n . T h e 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 a n d a n a p p r o priation of $ 7 7 , 0 0 0 w a s m a d e f r o m t h e G e n e r a l R e s e r v e F u n d b y t h e