During the March 21 meeting of the Navajo County Community College District Governing Board, Chief Business Officer Maderia Ellison provided the board with an introductory budget analysis for the next fiscal year and noted what changes are to be expected.
“Overall revenues are expected to increase approximately $500,000 compared to the current fiscal year,” she said.
In detailing revenues, Ellison explained that state funding is expected to increase approximately $43,000 related to enrollment and approximately $591,000 related to equalization aid.
The tuition increase that was given final approval at the meeting will increase tuition by $2 per credit hour, bringing the cost to $72 for the upcoming fiscal year, and fee revenues are expected to increase by $100,000 compared to the current year.
“Primary property tax is assumed to be levied at the maximum rate, which is two percent higher than current year tax levy and will require a truth-in-taxation hearing,” she said.
The maximum levy equals an increase in the current tax rate of $1.7884 per $100 net assessed valuation to a rate of $1.8067, with the increase providing additional revenues of approximately $325,000.
Ellison noted following the meeting that although revenues are up, the total anticipated revenues of $500,000 is based on increased expenses, and potential losses of grants and contracts that rely on state funding and face an uncertain future. She also noted that although the college is anticipating no additional funding losses like last year due primarily to a loss of infrastructure at Cholla Power Plant, they will need to prepare for future losses.
President Jeanne Swarthout noted that she had been told at a recent Arizona Tax Research Association (ATRA) meeting that a complete closure at Cholla is anticipated in 2018-19 or perhaps the year after.
In a discussion with Communication Consultant Anne DeGraw of Arizona Public Service Co. following the meeting, DeGraw said that any claims made in that ATRA meeting were “absolutely false.” According to DeGraw, the decision on whether to keep Cholla open as a coal-fired plant or convert it to natural gas has yet to be decided.
“Our position hasn’t changed since our proposal to the EPA (Environmental Protection Agency) was presented. We will make the final decision by 2025, but that decision has yet to be made,” she said.
The board gave approval for a per credit tuition increase of $2 for academic year 2017-18, another $2 increase for 2018-19 and a $3 increase for 2020-21. There will also be increases to accommodate the increased cost of course consumable supplies.
A fee structure was also presented for public use of construction equipment at the Skills Center in Holbrook, but that request was tabled to a later date until more information could be provided on insurance costs.
The board also agreed to a 1.5 percent salary increase for all contract employees and adjunct faculty. That increase will mean an additional expense of $210,000.
Ellison noted that there would be an increase in contribution rates for medical benefits of six percent and that the employer contribution to the Arizona State Retirement System will have a budgetary impact of an additional $3,000.
In other business, the board:
* Awarded a $119,191 contract to Pointe Construction to replace the roof and remodel the interior and exterior paint for the Tiponi Center at the Painted Desert Campus in Holbrook.
* Awarded a $73,529 contract to Pointe Construction to remodel and modify the science labs and pre rooms in the Ponderosa Center on the White Mountain Campus in Show Low. It was noted that the work would make the space more functional and allow access to safety showers.
* Awarded a $52,800 contract to Woodruff Construction to remodel the entrance planters in the Tawa Center at the Holbrook campus. The project involves a display base with a metal frame and decorative rock work that will hold a large metal eagle created by a former student. The board was provided with the option of adding a 4’ high, 3’ in diameter petrified wood log requiring additional floor work to support the 3,000-lb. log. The additional cost of $25,100 was something that the board deemed an unnecessary expenditure given the college’s current financial position.
* Awarded a $97,900 contract to Sky Engineering to restructure the entrance and install a sky light over the canopy at the Nizhoni Learning Center in Holbrook. It was noted that the architectural detail was created in the original construction of the building, and would allow protection from rain and slippery ice.
* Awarded a $107,909 contract to Hatch Construction and Paving to construct asphalt and concrete parking surfaces around the maintenance shop in Holbrook.
