Wednesday, September 19, 2001

WILMINGTON – UNCW Chancellor James R. Leutze today announced that facilities rental fees at Kenan Auditorium and Trask Coliseum have been increased due to declining state support as well as the increased cost of doing business. Below is the text of a letter and the fee increase schedule mailed Tuesday, Sept. 18, to approximately 400 university facilities users and community leaders.

“With the new academic year underway at the University of North Carolina at Wilmington, it will come as no surprise for you to learn that we are being expected to do more with fewer state dollars.

Although the General Assembly has not finalized its budget to date, UNCW may face cutbacks of nearly $4 million in annual appropriations. In the area of utility cost increases alone, previously absorbed by state general revenue, UNCW anticipates a shortfall of approximately $1 million that we will have to make up from appropriated dollars that previously would have been used to support other programs. The reduced level of state support for public universities as a percentage of this year’s overall budget is not merely a reaction to the present crisis in the state budget, which has received so much media attention. In fact, state appropriations as a percentage of public university budgets have declined steadily for at least a decade, and continue to decline. At UNCW, state appropriations in 2000-2001 accounted for only 45 percent, or $60.9 million, of our overall $134 million budget.

I’m writing you about all this to let you know that one unfortunate consequence of decreased state resources and a higher cost of doing business is the need to increase the charge for the public to use some of our facilities. Effective July 1, Kenan Auditorium fees, which had not been increased in three years, went up $6 an hour, and we began assessing handling fees to cover the cost of administering ticket sales and recovering credit card charges. In the past, we have absorbed the cost of credit card processing as a service to the public.

At Trask, rental rates have not been increased for six years and have not always been applied consistently. Rates for Trask have gone up from $2,400 to $4,800 per non-university event plus a $2,400 per day set up/break down fee if needed. For the first time, a local government/school rate will be assessed at $1,200 per day. It’s important to note that our athletic facilities are available for rent only when they are not being used for university events. The revised rates for Kenan Auditorium and athletics facilities are enclosed.

The University Union and Warwick Center have had an established fee structure in place for several years, and I’m pleased to report that these will remain the same for this fiscal year, although a slight increase is likely in July, 2002.

As in the past, groups may reserve and use space in any of our academic buildings on a space-available basis at no cost, and we invite you to make use of these facilities. Call Susie Goodrum at 910/962-3011 to reserve these facilities.

It is not pleasant to charge you more to use our facilities. Indeed, one of the hallmarks of my administration as chancellor of UNCW has been a strong commitment to public service and outreach to the citizens of Southeastern North Carolina. We welcome outside groups to hold meetings on our beautiful campus and invite you to visit here often.

Within the next several weeks, facilities users will be receiving more detailed fee schedules. With this letter, I’ve tried to help you understand in advance why fee increases are necessary even though we do not like having to implement them. I also want to make it clear that UNC Wilmington does not make a profit from renting out our facilities. As a case in point, please note that it costs an average of $221.65 per hour to produce a typical event at Kenan Auditorium, not including technical crew or special equipment charges, which are invoiced separately. This $221.65 figure represents simply what it costs to maintain and operate the facility for one hour. By comparison, under the new fee structure, the maximum charge will be $116.00 per hour for use of the auditorium. A not-for-profit group will pay even less, $76.00. The increases will help recoup some costs of actually operating the facilities during your event, but still do not come close to covering the discrepancy. We believe the increases are reasonable.

We encourage your understanding at this difficult financial time. If you have any questions about this, please call me at 910/962-3030.

With all best wishes,

James R. Leutze”