Student Housing and Dining Services Strategic Plan2021

VI. Housing Reserves

During the past five years, Student Housing reserves increased substantially due to debt capacity caps imposed by the Office of the President. These restraints on borrowing have recently been lifted, allowing the department to go forward with the planning described in the following section of this report entitled Capital Projects. Specifically, we have restarted the Tercero Phase II project, increasing the number of bed spaces from 400 to 600, and we are moving forward with the Segundo Services Center project. Our ability to drawdown planned equity funding is in keeping with our commitment to provide flexibility for the future by ensuring reasonable long-term debt.

We also remain committed to affordability for students during our annual rate setting process. As we look to the next ten years, our business plan reflects the planning assumptions articulated in the section entitled Strategic Plan Principles. At the same time, it is important to mention the impact of recent requirements to provide assessment funding to both Student Affairs and the campus, which could continue in the future, as well as the ongoing component of unpredictable risk that must be factored into our planning. In addition, the current California state budget concerns and UC’s response related to the number of students projected for admission in the next few years are excellent examples of how quickly planned occupancy and revenues can change. Our planning for meeting operating expenses stresses the highest level of fiscal responsibility from our department managers as day-to-day spending decisions are made. However, external impacts will always mean a certain level of vulnerability for our program.