approve 2017-2018 student housing rental rates …...approve 2017-2018 student housing rental rates...

F–6 STANDING COMMITTEES Finance and Asset Management Committee

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Approve 2017-2018 Student Housing Rental Rates at UW Tacoma RECOMMENDED ACTION It is the recommendation of the administration and the Finance and Asset Management Committee that the Board of Regents approve the proposed 2017–18 student housing rental rates for the University of Washington Tacoma, making the proposed rates effective July 1, 2017. BACKGROUND The UW Tacoma Housing & Residence Life program plays an integral role in providing a vibrant living-learning community that supports student development and enhances the educational experience of each resident. This past year has been particularly exciting as the campus acquired Court 17 Apartments, launching UW Tacoma’s first dedicated student residential facility in August of 2016. Court 17 is comprised of apartment-style units with 50 studios, 39 one bedroom, and 39 two bedroom apartments that can provide housing for up to 285 students on campus. Housing & Residence Life is currently evaluating existing and desired services that align with the programs goals and objectives. Part of this evaluation process is to ensure resources are available to maintain and build upon the high-quality living and learning environment our students desire. The proposed rate increase of 2.0% represents the campus’ continued efforts to provide a quality program and housing experience at an affordable cost. The proposed increase would apply to all unit types in Court 17 Apartments and align with the financial proforma provided to the Board of Regents during its May 12th, 2016 meeting for acquisition of the building. STRATEGY FOR ANALYZING NECESSITY OF OPERATIONAL CHANGES Housing & Residence Life approaches the annual budget development process under the grounded parameters:

1. When initiating the budget development process, we assumed rental revenues remained consistent per approved proforma, as outlined in the acquisition process.

2. As a full fiscal year has not yet been completed, we utilized operational data from August 2016 through February 2017 to project FY18 operational costs and revenues, adjusting for known or expected changes.

STANDING COMMITTEES Finance and Asset Management Committee Approve 2017-2018 Student Housing Rental Rates at UW Tacoma (continued p. 2)

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3. We recognize cost efficiencies that have occurred since the acquisition on

July 28th, 2016. The FY18 budget reflects all expenses and revenues assuming an operation with a 95% occupancy level during the Autumn, Winter, and Spring quarters while 30% during the Summer quarter.

4. Without justification, we do not add any program or services that generate

additional costs.

5. We intentionally partner with other Tacoma Auxiliary Services to add mutually beneficial program additions at no cost to student residents. (Secured bike storage, Amazon Locker, ZipCars)

6. To the extent possible, we seek off-set expense increases in the form of

expense savings and/or increased revenue that does not come from rent. The campus is currently under construction for a Café space (600 sq. ft.) within Court 17 that will pay annual rent and overhead costs to Housing & Residence Life. In addition, there are storage closets that will also be available for students to rent on a month-to-month basis.

7. We recognize the need for additional assurance to safe guard our residents

and residential facility against unknown and/or adverse events. Therefore we have sought additional insurance coverage and seek to establish a Risk & Opportunity Fund to minimize financial impacts to students.

This rate proposal is the result of determining the Fiscal Year 2018 forecasted revenue and expense budget. The proposed rate increase (estimated gross revenue of $208,171) will help offset planned expenses for the 2017-2018 operations of Court 17. For current and proposed budget overviews, please see Table D.

• Salaries, Wages, and Benefits: constitute the highest portion of the increase to operational expenses, so the escalation of these significantly impacts the budget. University-wide merit and wage increases are pending approval but projected for FY18. Housing & Residence Life has partnered with other functional units in Finance & Administration to reallocate previously allocated funds towards two positons to improve the resident experience.

o Maintenance Custodian – primary service provider for janitorial, repair, and upkeep services in Court 17. Funded 70% by Housing & Residence Life, 30% by Tacoma Facilities Services. Full cost of


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salary and benefits are offset by the elimination of all non-project based Facilities Services charge backs. Projecting current activity, Facilities Services chargebacks were estimated to total $70,000 in FY18. This re-allocation of funds from Goods & Services will result in a higher level of service to residents at a lower cost. As noted in the resident survey, decreasing the maintenance response time and increasing the level of service was one of most desired improvements according to residents. PENDING REVIEW - UW TACOMA EXECUTIVE BUDGET COMMITTEE

o Auxiliaries Services Program Assistant – assist Housing & Residence Life with administrative processes, including budget management, financial reporting, and management of day-to-day operations. Funded 50% by Housing & Residence Life, 25% by Transportation Services and 25% by the Tacoma Husky Card Expansion. An existing vacant part time Administrative Assistant positon has been re-classified and with the support of other Auxiliary Services expanded into a full time position. PENDING REVIEW - UW TACOMA EXECUTIVE BUDGET COMMITTEE

• Utilities: Building-wide and student unit utilities rate are anticipated to

increase in Fiscal Year 2018. There is no estimated change in consumption for 2017-2018. Projected increases by utility, are shown in Table B.

REVIEW AND APPROVAL Each year, we work with various groups to solicit and gain feedback about the on-campus living experience in Court 17. Department-level

• Housing & Residence Life discussed the annual budget and rates review process starting in December 2016 and continued through February 2017. Collaborative discussions have resulted in our FY18 Draft budget and the current proposal.

Student Feedback

• The Court 17 Residence Hall Association discussed the rate increase on February 3rd, 2017 and agreed with the housing rate increase as presented with no additional concerns being raised.


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• An all-resident survey detailing the rate proposal was launched on Friday February 2nd. 19% of current residents provided feedback on current and proposed services, overall satisfaction, and the proposed rate increase. Residents reported being satisfied with services offered. Overall, the survey shows 64% of students are planning to live in Court 17 next year. This aligns with the 30% of respondents that stated the increase has no effect on their decision and the additional 25% & 27% that are unsure or need to weigh the benefits. In support of the students that are unsure, the survey found that programmatically;

o 89% of the students state Court 17 is meeting their expectations for living on-campus,

o 84% believe Court 17 helped them be successful, o 77% state Court 17 has helped them make connections between

their life outside of the classroom and with their academic experiences.

• Housing & Residence Life presented the annual budget and rates review

process to the ASUWT Board of Directors on Friday, February 3rd, 2017. The final rates proposal was presented at ASUWT Director meeting on Friday, February 17th, 2017. The ASUWT Board of Directors voted to support the proposal as presented.

Tacoma Campus Leadership

• This proposal has been reviewed by and discussed with the UW Tacoma Co-Interim Vice Chancellors for Finance & Administration, Co-Interim Vice Chancellors of Student and Enrollment Services, and Chancellor Mark Pagano. The final rate proposal was presented on Friday February 17th, 2017 and received support from the Tacoma Campus Leadership.

EXTERNAL MARKET AND UNIVERSITY RATE REVIEW In addition to reviewing the program budget, Housing & Residence Life conducts price comparisons of room and board rates with the local market and other local institutions. These comparisons provide us with a trend and benchmarks to ensure our housing rates remain in line with similar and like experiences, reflecting variances in style of housing, amenities provided and occupancy density. Table C reflects these comparisons.


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POTENTIAL COST REDUCTIONS, 0% INCREASE In order to maintain a successful program and prevent operating in a deficit, Housing & Residence Life would make adjustments to the following should no rate increase be approved for Fiscal Year 2018.

• Reduction in Residence Life Program Expenses • Reduction in Risk & Opportunity Fund • Reduction in Operational Expenses • Reduction in Capital Reserve Contribution.

For further detail of the impacts of these reductions, please see Table E.


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TABLE A – CURRENT & PROPOSED RENTAL RATES

TABLE B - UTILITY INCREASES

FY17 Rate/Bed/Mo.

FY18Rate/Bed/Mo.

Percent Increase

Dollar Increase

Studio/1 Bathroom(2 people per apartment)

846.00$ 863.00$ 2% 17.00$

Studio/1 Bathroom(Legacy - 1 person per apartment)

1,000.00$ 1,020.00$ 2% 20.00$

1 Bedroom/1 Bathroom(2 people per apartment)

959.00$ 978.00$ 2% 19.00$

2 Bedrooms/2 Bathrooms(4 people per apartment)

732.00$ 747.00$ 2% 15.00$

Studio/1 Bathroom(1 person per apartment)

1,000.00$ 1,020.00$ 2% 20.00$

1 Bedroom/1 Bathroom(1 person per apartment)

1,200.00$ 1,224.00$ 2% 24.00$

2 Bedrooms/2 Bathrooms(2 people per apartment)

1,000.00$ 1,020.00$ 2% 20.00$

Undergraduate - ResLife Program support- Furniture provided

Graduate - Independent Living- Provided unfurnished

Unit Type

Category FY18 Increase

TPU - Electric 6%TPU - Water 5%TPU - Solid Waste 4%PSE - Natural Gas 5%CenturyLink - Telephone 5%Comcast - Internet & Cable TV 5%


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TABLE C – UNIVERSITY & MARKET RATE REVIEW

Data:

• For University Comparison - 2016-2017 Posted Rates • For Market Comparison - Rates as of January 2016 Market Survey

Comparison Housing type* Traditional Hall

Studio Apartment

1 Bed Apartment

2 Bed Apartment

UW Tacoma Apartment-style hall N/A 846.00 959.00 732.00 UW Bothell Apartment-style hall N/A N/A 948.00 948.00 Pacific Lutheran University Traditional hall 691.11 N/A N/A N/A

University of Puget Sound Traditional hall 717.78 N/A N/A N/A

Thea's Landing Market apartment N/A 609.00 695.00 455.00 Vue 25 Apartments Market apartment N/A 506.00 551.50 413.75 Villaggio Apartments Market apartment N/A 546.00 600.00 395.00 Harmon Lofts Market apartment N/A N/A 700.00 500.00

Comparison Housing type* Traditional Hall

Studio Apartment

1 Bed Apartment

2 Bed Apartment

UW Tacoma Apartment-style hall N/A 1,000.00 1,200.00 1,000.00 UW Bothell Apartment-style hall N/A N/A 1,293.00 1,293.00 Pacific Lutheran University Apartment-style hall N/A 761.11 804.44 720.00 University of Puget Sound Apartment-style hall N/A N/A 861.11 861.11

Thea's Landing Market apartment N/A 1,218.00 1,390.00 910.00 Vue 25 Apartments Market apartment N/A 1,012.00 1,103.00 827.50 Villaggio Apartments Market apartment N/A 1,092.00 1,200.00 790.00 Harmon Lofts Market apartment N/A N/A 1,400.00 1,000.00

2016-2017 Undergraduate Monthly Rate ComparisonPer person, shared occupancy bedroom

2016-2017 Graduate Monthly Rate ComparisonPer person, single occupancy bedroom

Traditional hall includes:- Shared public bathrooms- Shared building kitchens- Shared building laundry- Shared building lounges- In-hall program support- Utilities provided- TV & Internet provided- Furniture Provided

Apartment-style includes:- In-unit private bathrooms- In-unit kitchen - In-unit free laundry- In-unit living room- In-hall program support- Utilities provided- TV & Internet provided- Furniture Provided(UWT - undergrads only)

Market apartment includes:- In-unit private bathrooms- In-unit kitchen - In-unit free laundry- In-unit living room


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TABLE D – BUDGET SCENARIOS

Salaries & Wages - 01 149,562$ 191,146 191,146$ Contracted Services - 02 - - -

Goods/Services - 03 558,988 489,529 489,529 Travel - 04 4,750 4,750 4,750

Supplies & Materials - 05 29,117 32,750 32,750 Capital Equipment - 06 - - -

Benefits - 07 42,344 58,825 58,825 Debt Service 967,452 1,155,243 1,155,243

Internal Debt Reserve 225,000 300,000 300,000 Capital Reserve 100,000 100,000 100,000

Furnishings Repayment 153,528 106,662 106,662 Revenue 2,230,829 2,393,000 2,439,000

Net Income / (Loss ) 88$ (45,905) 95$

FY 2018No increase

FY 20182% increase Category/Object

FY 2017Projected


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TABLE D – BUDGET SCENARIOS ASSUMPTIONS, COST ADJUSTMENTS

Category/ObjectCost Adjustments from

FY17 to FY18

Salaries & Wages - 01 Increased Labor CostsUniversity-wide Merit IncreasesReclassified Janitorial/Repair Costs

Contracted Services - 02 No change

Goods/Services - 03

Increased TPU, PSE, CenturyLink & Comcast UtilitiesExpanded Insurance Coverage, property & liabilityNo Start-up CostsReclassified Janitorial/Repair Costs

Travel - 04 No change Supplies & Materials - 05 No Start-up Costs

Capital Equipment - 06 No change

Benefits - 07 Increased Labor CostsUniversity-wide Merit IncreasesReclassified Janitorial/Repair Costs

Debt Service FY17 - 10 months of repayment, FY18 - 12 months Internal Debt Reserve Planned contribution, per proforma

Capital Reserve Planned contribution, per proforma Furnishings Repayment Purchase of furniture for 2nd and 5th Floors


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TABLE E – POTENTIAL COST REDUCTIONS

Projected Net Income / (Loss), 0% increase (45,905)$

Reduction in Residence Life Program ExpensesLess RA Staffing, decreased programs, events, and in-hall intiatives

14,126

Reduction in Risk & Opportunity FundReduced capacity to deal with unexpected events

10,000

Reduction in Operational ExpensesReduced provided in-unit supplies (lightbulbs & batteries); Reduction in scope of unit cleaning

15,500

Reduction in Capital Reserve contributionDelay of future improvements, Increased deferred maintenance costs

6,500

Total Reductions 46,126

Projected Net Income / (Loss), after reductions 221$

Annual Student Budget Items Bothell Seattle Tacoma

Room & Board 1 (traditional undergraduates) $11,259 $12,117 $10,650

Books, Personal, Transportation 1 $4,614 $3,504 $4,614

Annual Student Fees – Total 2 $1,296 $1,369 $1,237

New Student Enrollment & Orientation Fee (NSEOF) – one time fee $300 $310 $100

Student Tech Fee $126 $114 $120

Services and Activities Fee $273 $387 $477

Activities & Recreation Center 1 $441

Activities & Recreation Center 2 $66

Sports Field $90

Facilities Renovation Fee $210

Intramural Activities Building (IMA) $96

U Pass $252

YMCA $540

Resident Annual Tuition $9,694 $9,694 $9,694

Resident Annual Total $26,863 $26,684 $26,195

Non‐Resident Annual Tuition $33,732 $33,732 $33,732

Non‐Resident Annual Total $50,901 $50,722 $50,233

COST OF ATTENDANCE FOR FIRST-YEAR UW UNDERGRADUATESPRELIMINARY 2017-18 INFORMATION

PLEASE NOTE: After accounting for grant and scholarship aid, UW students (particularly resident undergraduates) often

pay far less than the total expenses shown here. In 2015‐16 (the most recent year for which net price data is available),

the published price for resident undergraduates at Seattle was $27,034, whereas the net price for first‐time, full‐time,

resident undergraduates at Seattle was $10,068.

1 The annual student budget for these items are based on the federal "cost of attendance" definition, which is used to determine financial aid

eligibility: https://www.washington.edu/financialaid/getting‐started/student‐budgets/. When developing Room & Board student budgets for

2017‐18, the Student Financial Aid Advisory committee considered the 2017‐18 housing rate proposals for each campus. However, the Room &

Board rates do not directly reflect or tie to those housing rate proposals.

2 Student‐led committees approved all fees under this header, except the NSEOF (see below), and are responsible for recommending fee

changes to the Board of Regents for approval. Student representatives provide support recommendations for the NSEOF and the administration

recommends fee changes to the Board of Regents for approval. Please note that many students pay fees beyond the ones presented here, such

as course fees (the cost of which varies by discipline), fees for student insurance, international program fees, and fees for WashPIRG and WSA.

Except for Room & Board rates, all rates reflect final approved rates from 2016‐17 and, therefore, are subject to change.

Tuition rates and student fee proposals for 2017‐18 will be presented later in the spring.

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ATTACHMENT

BOTHELL 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 5yr Change

Room & Board 1 (traditional undergrads) $10,752 $10,833 $10,833 $10,833 $11,259 $507

Books, Personal, Transportation 1 $4,995 $4,995 $4,995 $4,614 $4,614 ‐$381

Annual Student Fees ‐ Total 2 $856 $856 $1,240 $1,296 $1,296 $440

NSEOF ‐ one time fee $250 $250 $250 $300 $300 $50

Student Tech Fee $126 $126 $126 $126 $126 $0

Services and Activities Fee $390 $390 $267 $273 $273 ‐$117

Activities & Recreation Center 1 $0 $0 $441 $441 $441 $441

Activities & Recreation Center 2 $0 $0 $66 $66 $66 $66

Sports Field $90 $90 $90 $90 $90 $0

Resident Annual Tuition $11,305 $11,305 $10,768 $9,694 $9,694 ‐$1,611

Resident Annual Total $27,908 $27,989 $27,836 $26,437 $26,863 ‐$1,045

Non‐Resident Annual Tuition $30,879 $32,424 $33,072 $33,732 $33,732 $2,853

Non‐Resident Annual Total $47,482 $49,108 $50,140 $50,475 $50,901 $3,419

SEATTLE 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 5yr Change

Room & Board 1 (traditional undergrads) $10,752 $10,833 $11,310 $11,691 $12,117 $1,365


Annual Student Fees ‐ Total 2 $1,364 $1,389 $1,371 $1,369 $1,369 $5


Student Tech Fee $123 $123 $123 $114 $114 ‐$9

Services and Activities Fee $378 $390 $393 $387 $387 $9

Facilities Renovation Fee $267 $252 $219 $210 $210 ‐$57

Intramural Activities Building (IMA) $96 $96 $96 $96 $96 $0

U Pass $228 $228 $240 $252 $252 $24


Resident Annual Total $27,306 $27,412 $27,334 $26,258 $26,684 ‐$622


Non‐Resident Annual Total $46,880 $48,531 $49,638 $50,296 $50,722 $3,842

TACOMA 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 5yr Change

Room & Board 1 (traditional undergrads) $10,752 $10,833 $10,833 $10,230 $10,650 ‐$102


Annual Student Fees ‐ Total 2 $697 $1,057 $1,237 $1,237 $1,237 $540


Student Tech Fee $120 $120 $120 $120 $120 $0

Services and Activities Fee $477 $477 $477 $477 $477 $0

YMCA (began in winter of 2015) $0 $360 $540 $540 $540 $540


Resident Annual Total $27,749 $28,190 $27,833 $25,775 $26,195 ‐$1,554


Non‐Resident Annual Total $47,323 $49,309 $50,137 $49,813 $50,233 $2,910Please see previous page for footnotes.

PRELIMINARY COST OF ATTENDANCE TREND DATA BY CAMPUS

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approve 2017-2018 student housing rental rates …...approve 2017-2018 student housing rental rates...

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