2002-03 operating budget approved, new residence named for Mary Keyes

Board approves capital financing plan to address construction boom

Board approved a capital financing strategy to cover a shortfall of $120 million in designated funding. The strategy supports a $240- million capital expenditure plan for infrastructure renewal in response to anticipated growth in student demand, partnership opportunities for research facilities and correction of historic lapses in building life cycle maintenance programs. The finance committee recommended and Board approved a private placement (through a non-amortizing, fixed rate) for an amount between $90 and $120 million, with a term of 30 to 40 years. For full details,click here.

2002-03 operating budget is tight, conservative

In presenting the 2002-03 operating budget to Board for approval, Budget Committee chair Brian McCarry described a budget that is “as tight as they've ever been at the University.”

He explained that the bottom line was conservative and that it was expected a surplus would be realized when outstanding revenues are received. For example, McMaster is expecting $1.9 million as part of its share of a $28-million allocation to universities promised by the province last year.

This additional revenue, he explained, will be directed to the reallocation project priority list once it arrives. “So, at the moment, we don't know what the exact bottom line is,” he concluded.

For the 2002-03 budget year, the committee received over $15 million in reallocation submissions from campus units and departments; only $5.8 million was available for allocation. Of the reallocation requests that were approved, McCarry says, “Many of these things we had absolutely no flexibility on.”

Across-the-board increases of 1.5 per cent to budget envelopes, totaling $2.69 million, amounted to nearly half of the reallocation fund. “The base increase provides only marginal relief from the cost inflation pressures facing budget envelope managers,” said McCarry.

“Make no mistake, this is a tough budget,” wrote McCarry, in a letter to University President Peter George. “Even with the 1.5 per cent increase to envelope budgets, many areas will be hard pressed to meet cost increases that may be more than double that amountWe have, however, developed a budget that meets as many needs of the University as it can given the limited increase in income and the continued under-funding of universities from the provincial government.”

Other projects and initiatives receiving reallocation funding were: courthouse operating costs for Downtown Centre expansion ($1 million), matching funds for Ontario Graduate Studies scholarships ($500,000), and maintenance costs associated with the University Centre ($602,700). Significant funds were also awarded to match/support various endowed chairs.

Anticipated income for the budget year is $210.5 million; budget envelope expenditures total $216.5 million. The shortfall in funding is expected to be covered by a $4.8 million appropriated surplus in budget envelopes at May 1, 2002 and a $1.2 million (planned) appropriated deficit at the end of 2003. The planned deficit is expected to be offset by future income sources (i.e. the $1.9 million mentioned earlier).

New residence named for Mary Keyes

Mary Keyes' legacy to McMaster is being recognized with the decision to name the new residence after her. The Board of Governors approved a recommendation from the Camps Names Committee and University President Peter George to name the new facility the Mary Keyes Residence.

Keyes dedicated 38 years of service to the University, beginning her career her as an associate professor of kinesiology. She was head of student affairs at McMaster for ten years before her death in February. During this period she worked tirelessly to ensure students' interest and concerns were foremost. She was known for her open door policy and accessibility to students.

“Given the depth of this legacy and enormity of Dr. Keyes' contribution to student life at McMaster, I believe it is only fitting that the new student residence be named to honour her memory,” wrote vice-president University Advancement Roger Trull in a letter to the committee. The distinction honours Keyes' vision, kindness and generous spirit.

Construction tenders approved

Tenders for two construction projects were approved by Board, upon recommendation of the Planning and Building Committee. They are a $7,742,538 tender submitted by Alberici Constructors Inc., for renovations to the James Stewart Centre for Mathematics (in Hamilton Hall) and a $1,499,605 tender from T. R. Hinan for the building of an addition for the Tandem Accelerator Building.

Board also approved:

7a proposal to restructure the mandate and terms of reference for the Institute of Molecular Biology and Biotechnology (MOBIX)

7a proposal to establish the McMaster University Centre for Effective Design of Structures

7a proposal to establish the McMaster Experimental Economics Laboratory

7the location of the pre-engineering steel temporary classroom in the southeast corner of the tennis courts area.