College says it needs the new influx of cash for 2024-2025 Capital Improvement budget
Dr. Clint Ewell, Vice President of Finance at Yavapai Community College, presented the cash flow requirements for the upcoming academic year during the February 2024 meeting of the District Governing Board. He explained the financial needs of the Community College, detailing the amount of additional funding required and the intended allocation within the 2024-2025 budget.
To fulfill what it anticipates as its financial obligations, the Governing Board is being asked to consider approving a 4% increase in the County property tax rate, building upon last year’s 4% increase, and extending the deadline for final payments on existing revenue bonds. Furthermore, the issuance of a new $14 million revenue bond is deemed necessary. Dr. Ewell utilized the following slide to articulate the Community College’s fiscal position on this issue.
Dr. Ewell disclosed that due to the College’s inability to secure grant funding for 90% of the highly anticipated Health Science Center on the Prescott Valley Campus, he proposed a revised timeline for the project, postponing it from August 2024 to 2027. Under this new timeline, he specified that 50% of the funding would be sourced from the College’s own reserves, a significant increase from the original 10%, while the remaining 50% would be sought from grants and donations.
Additionally, Dr. Ewell recommended expediting the expansion of housing to align with the Campus Master Plan’s recommended capacity. However, as the College has unexpectedly removed the Campus Master Plan from its website, the exact financial implications of this recommendation remain unclear.
The Yavapai Community College District Governing Board was informed during its February 20 meeting that the College, in collaboration with the Mountain Institute Career and Technical Education District, is planning to establish a culinary training facility at the College’s Chino Valley Center. This initiative stems from the success of the training program already in place at Prescott High School under the auspices of the Mountain Institute.
The $10 to $12 million, 14,000 square foot commercial lab facility intended to provide Sedona/Verde Valley students with brewing and distilling beer training was formally approved and included in the College budget by the Yavapai Community College District Governing Board in May 2022. Almost two years later, on February 20, 2024, at the Community College District Governing Board meeting, it was pronounced essentially dead as a project and removed from future consideration. It is anticipated that the final 2024-25 budget will be approved without the project or any replacement at the Board’s May meeting.
Yavapai Community College began live-streaming District Governing Board meetings on the College’s YouTube channel on February 20. This decision was made without any prior notice in the posted February 20 agenda or elsewhere to the public. The positive aspect is that, along with live-streaming, the meeting was posted on YouTube on February 21 for those interested in viewing it.
To repay the revenue bonds over an extended period, the Community College must take funds only from tuition and other income producing sources, excluding property taxes. However, to replenish the funds drawn from these sources, it may, and most likely will, necessitate an increase in the County property tax rate, a decision requiring only three votes from the five-member District Governing Board. The public cannot block the tax rate increase once a majority on the Board approves it.
The Yavapai Community College District Governing Board will hold what is described as a “Study Session” and “Business Meeting” at the Rock House on the Prescott Campus on Tuesday, February 20, 2024. The meeting is scheduled to begin at 1:00 p.m. and run until 4:00 p.m.