Southeast Missouri State University regents to consider housing rate increase

Southeast Missouri State University students would pay more to live on campus under a proposed rate increase to be considered by the university's board of regents today.

The proposal raises room and board at the residence halls by an average 3.71 percent, up from the current academic year's increase of 2.93 percent. The average student housing bill, including meal plan, would increase to $7,209, according to Debbie Below, the university's assistant vice president for enrollment management and director of admissions. Rates vary by residence hall.

Meal charges are proposed to go up 4.26 percent, consistent with the "university's/Chartwell's dining contract and reflects actual and anticipated inflation in food prices for 2011-12," according to board documents.

Average room rates would increase 3.37 percent, reflecting additional costs for maintenance and repair, the board of regents motion form says.

Nontraditional housing rates at the Washington Street apartments would rise by 1.7 percent, an increase equivalent to the increase in the consumer price index, according to the university. This academic year, students saw a 3 percent increase.

The board is expected to vote on the fiscal year 2012 Residence Life budget in its meeting today. Expenses are projected at $20.98 million, a $1.3 million increase from fiscal year 2011.

About half of the increase is accounted for by an additional $167,000 for electricity and water due to local rate increases and a one-time payment of $503,000 for the performance contract, according to the regents document. Increases in room rates in Towers North and West and in Myers from 5.61 percent to 5.71 percent "bring rates for these halls into alignment with comparable accommodations," the document says.

About $2 million in air handling system replacements for Greek housing on campus is included in the proposed budget.

The board is expected to consider a tuition increase, in the 4 to 5 percent range, in May or June.

In other business, the board is expected to take up a bond refunding package. Southeast could realize $1.17 million in savings by refinancing long-term facilities bonds. The board initially had planned to refinance in December, but the timing wasn't right as rates jumped amid a flurry of borrowing and refinancing activity at the end of the year.

Series 2001 bonds financed the construction of Vandiver Hall, with outstanding principal of $24.89 million. Series 2002 bonds, which financed the construction of the parking garage on Sprigg Street near the Towers Complex and surface parking along Broadway and Pacific Street, has $5.61 million in remaining principal.

The university is paying interest of 4.25 percent to 5.15 percent on the bonds; refinancing could bring those rates down between 1.25 percent and 5 percent. Based on those rates, Southeast could recognize a reduction in debt service payments of $56,000 to $63,000 annually over the remaining 21-year life of the bonds.

Refinancing also would free up a reserve fund of nearly $2.4 million, money originally required to receive the bonds.

"That money will go right back into the residence hall," Southeast president Ken Dobbins said. "We would have had to wait 21 years for that."

Dobbins will update the board on the university's campuswide renovation and maintenance plan. In December, regents approved a $59.25 million bond issue for the projects, including nearly $23 million in renovations to the century-old campus anchor Academic Hall. Dobbins said the construction documents are in the conceptual design phase and the timeline for the upgrades is being worked out.

"We're going to go over where we are and where we're going to transition everyone so the board gets an understanding of where we are," Dobbins said.

The renovations will require the relocation of several departments at Academic Hall. Admissions, registrar and student financial services are among many scheduled to move to Memorial Hall. The president's office, the provost and the vice president for finance all will transfer into the College of Business Administration building. Dobbins said he and his staff will be out by June.

"I will be out of Academic Hall for at least two years," he said. "It gets hectic. We're trying to move a lot in the summer."

All Academic Hall tenants will be out of the building by Dec. 31, Dobbins said.

mkittle@semissourian.com

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