Repository: UIHistories Project: Board of Trustees Minutes - 1948 [PAGE 404]

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1947]

UNIVERSITY OF ILLINOIS

403

R E S I D E N C E HALL R E P L A C E M E N T FUND (24) The first student residence hall in the University was placed in operation in 1919 ( M a r y E. Busey H a l l ) . Evans Hall was added in 1926. During the years prior to 1932-1933, the net income of these halls was accumulated in a surplus fund with the intention of applying it toward building a new hall. The amount thus accumulated represented the excess of income over current expenditures without reserves for replacements. On March 14, 1933, because of the acute financial situation of the State and the University, the Board of Trustees voted to transfer the balance of this accumulated surplus to the general funds of the University, where they were used for general operating expenses. The amount thus transferred was $240,045.68 (Comptroller's Report, June 30, 1933, page 26). Beginning with 1934, the sums for building repairs and equipment replacements on a reserve basis have been set aside out of each year's income. A study has been made of the operations of all halls from their beginning, as a result of which it has been determined that a deficiency of $116,637 exists in present reserves, due to the fact that reserves were not set aside during the early years of operation and that in some other years the amount set aside was inadequate. The Director of the Physical Plant, the Dean of Students, and the Comptroller have recommended that this reserve be reinstated as soon as practicable. Since the funds that should have been applied to this reserve from the earnings of the halls were used for general University purposes as above stated, it is appropriate that they be replaced out of the General Reserve Fund. As a partial step in this direction, it is recommended that one-half of the total accumulation at this time be appropriated from the General Reserve Fund to the reserve fund of Student Residence Halls. To that end I recommend such an appropriation in the amount of $58,319. It is the intention, if funds permit, to recommend a similar appropriation during the biennium of 1947-1949, thus completing the adjustment.

On motion of Mrs. Holt, this appropriation was made as recommended, by the following vote: Aye, Mr. Fornof, Mrs. Holt, Mr. Livingston, Mr. McLaughlin, Dr. Meyer, Mr. Williamson; no, none; absent, Mr. Davis, Mr. Green, Dr. Luken, Mr. McKelvey, Mr. Nickell.

CALLING O F ILLINI UNION BUILDING AND R E S I D E N C E HALL LOANS (25) The following loans on University buildings are callable on quarterly interest dates on or after the dates indicated: Illini Union Building 3^4% (callable on October I, 1947, at a premium of 2 % of unpaid balance) $481 800 Men's Residence Halls 354% (callable on September 1, 1947, at a premium of 2% of unpaid balance) 525 300 In the case of the Illini Union Building, accumulated funds will make possible some additional payment, so that the new loan will be somewhat less than the outstanding balance. The present loans are mortgage loans, originally made through the University of Illinois Foundation, but later assumed by the Board of Trustees. The new loans will be in the form of revenue bonds issued under the special act of 1945, recently amended. It is also necessary to borrow about $700,000 additional to provide for completion of the new women's residence hall now under construction. It may be desirable to consolidate this requirement with refunding of the amount now outstanding on the men's residence halls. Income of present women's residence halls is merged with men's residence hall income for financing the existing loan. T h e Comptroller recommends that the calling of these loans be authorized on or as soon as practicable after the first call date, the loans to be offered for bids by all interested parties, under such conditions as may be approved by the Finance Committee, the Committee to review and recommend to the Board an award after bids are received. Approval of this recommendation is requested.

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