Board of Trustees meeting Agenda | July 2019

high debt load on housing and dining, so there is pressure to ensure bond covenants are met, as well as that funds are set aside for asset reinvestment. Risks to this fund group come primarily from first- year enrollment, wage-and-benefit increases, inflation on cost of goods sold (food and books), and of course the external housing market. Half of our residence hall beds are new since 2003, but our apartments are not. If the off-campus housing market added a significant amount of new inventory, we could experience lower-than-desired occupancy.

Enterprise Fund Group Six Year Forecast (in thousands)

40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000

FY19

FY20

FY21

FY22

FY23

FY24

FY25

Expenses Revenues

46,862 53,195

55,994 59,056

57,596 61,155

59,202 63,752

60,730 66,200

62,317 69,051

63,969 71,737

Coverage Ratio 2.10

1.33

1.39

1.50

1.61

1.74

1.86

Expenses

Revenues

The chart above clearly demonstrates the increase in both revenues and expenses due to the addition of Dugmore Hall and the related dining facility. It is crucial to maintain occupancy at rates that will ensure the added bond payment and operating costs are recovered. Our minimum debt-service coverage ratio requirement is 1.0.

Student Activities Funds These funds are historically stable, are mostly funded by mandatory student fees tied to bond payments for the SURC and Recreation Center, as well as the operational costs of these facilities. The S&A fee is paid by all students regardless of location and also contributes to the SURC and Recreation

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