M E M O R A N D U M


							March 22, 2011


To:		Members of the Board of Trustees

From:		Nancy L. Zimpher, Chancellor

Subject:	Facility Use Income - Hudson Valley Community College


Action Requested
	The proposed resolution approves the transfer of facilities use revenue in an amount not to exceed $415,000 annually through 2026, to the college�s local sponsor to pay the local sponsor�s share of debt service related to Phase II of the college�s 1996-2005+ Facilities Master Plan. 

Resolution
	I recommend that the Board of Trustees adopt the following resolution:
Whereas Education Law �6306(4) provides (1) that income from real or personal property acquired by a community college by deed, gift, devise or bequest may be applied to the maintenance of the program and purposes of the community college, and (2) that income from real or personal property given to a community college may be used to provide any part of the local sponsor�s share of capital or operating costs of a community college, upon the consent of the State University Board of Trustees; and 

Whereas Hudson Valley Community College has requested the consent of the State University Board to transfer a portion of its facility use revenue to the college�s local sponsor for use by the local sponsor to pay debt service related to the local sponsor�s share of capital costs for Phase II of the 1996-2005 + Facilities Master Plan; and 

Whereas the transfer of its facility use revenue would be effective September 1, 2011; now, therefore, be it 



Resolved that the Board hereby authorizes Hudson Valley Community College to transfer facility use revenue in an amount not to exceed $415,000 annually through 2026 to the college�s local sponsor for use by the local sponsor to pay debt service related to the local sponsor�s share of the cost of Phase II of the 1996-2005 + Facilities Master Plan capital facilities. 

Background 

	In light of HVCC�s grim capital fiscal situation 1997,  the SUNY Board passed a resolution authorizing the transfer of student parking fee revenue to the college�s capital budget to fund a portion of Rensselaer County�s share of the costs associated with Phase I only, of the college�s 1996-2005+ Facilities Master Plan.  Although  the 1997 resolution limited HVCC�s ability to transfer student parking fees to Phase I of the 1996-2005 Facilities Master Plan only, the college inadvertently extended the transfer of student parking fee revenue to Phase II of the 1996-2005+ Facilities Master Plan.  When the campus realized its error, it was required to find other fiscal resources to allocate to the County as the County�s share of the costs associated with Phase II of the 1996-2005+ Facilities Master Plan.    

	By the proposed resolution, the Board authorizes Hudson Valley Community College to transfer revenues derived from the use of the college�s real and personal property, in an amount not to exceed $415,000 annually through 2026, to the college�s local sponsor for use by the local sponsor to pay debt service on debt incurred by the local sponsor to finance its share of capital costs related to the Phase II of the 1996-2005+ Facilities Master Plan.  

	In general, Education Law �6306(4) contemplates that income derived from real and personal property of a community college, including property acquired by gift,  shall be used for operating and capital costs of the college.

	The facility use revenue of Hudson Valley Community College is derived from the use of real and personal property for such purposes as garden shows, RV shows, basketball championships, craft fairs, and ice time.  On an annual basis, facility use revenues total approximately 1.2 million dollars.  The college proposes to transfer approximately $415,000 annually to Rensselaer County, its local sponsor, to assist the county in meeting its debt service obligations for debt incurred for capital facilities of the college. 
Board Resolution	-2-	March 22, 2011


Board Resolution	-2-	March 22, 2011