Money matters at first Miami Board of Trustees meeting of the school year

BY KERRY McFADDEN
Miami University journalism student

Miami University may soon have the ability to issue up to $22 million worth of bonds to manage its existing debt.

Miami's Board of Trustees on Friday will vote to grant David Creamer, senior vice president for finance and business services and treasurer, permission to issue the bonds if he finds it financially beneficial.

The money won't be allocated toward any new endeavors, but rather, to manage debt accrued from large construction projects of the recent past, primarily to build residence halls.

It's a common practice for Miami to avoid bank borrowing, Creamer said, noting that bonds "offer a more favorable rate of financing."

However, current rates are not so favorable. The resolution under consideration on Friday will mean Creamer can make the call to issue bonds when and if needed.

"Based on current rates, we are not likely to follow through," he said, but that position may change if rates are more encouraging in the future.

Record fundraising levels

As they consider the bond proposal, trustees will also get an update on Miami's efforts to bringing in dollars from donors.

The 2017 fiscal year was the most lucrative fundraising year the university has ever seen, with almost $100 million raised, according to a presentation prepared by Tom Herbert, senior vice president for university advancement. It continues a trend of increasingly successful fundraising campaigns over the last several years. Each year since 2013, the total amount of money raised has been steadily and sharply increasing.

Despite these successes, current first-year students on the Oxford campus pay a higher tuition than their older peers, according to minutes from the board’s June meeting. The trustees unanimously approved a 5 percent increase in combined tuition and fees for non-Ohio undergraduates and a maximum 3.4 percent increase for Ohio residents. These increases will not affect students who were enrolled in Miami prior to the spring of 2017, due to Miami’s Tuition Promise plan, which locks a student’s first-year tuition for four years. As long as the Promise stays in place, first-years' tuition rates will remain the same.

Trustees also OK'd plans in June for Miami to spend $5 million to renovate the north campus landscape. The project will replace the parking spaces lost during the demolition of Withrow Court, and create a more pedestrian-friendly and aesthetically pleasing sidewalk system throughout North Quad.

The board meets at 9 a.m. Friday at the Marcum Center at Miami. Its two committees -- Academics & Student Affairs and Finance & Audit -- met Thursday. Full-board and committee meetings are open to the public.

Full agendas for upcoming meetings and minutes from prior sessions can be found on the Board of Trustees pages on Miami's website.

Photo: Miami's Board of Trustees includes nine voting members and two nonvoting student members. -- Photo contributed by Miami University