UW looks to operating reserves for construction completion

LARAMIE, Wyo. (AP) - The University of Wyoming Board of Trustees has decided to dip into operating reserves and other funds to cover $11.5 million in additional costs for several campus construction projects.

The latter phases of renovations and additions to the Buchanan Center for the Performing Arts, along with the improvements to the Half-Acre Recreation and Wellness Center, are in flux as a result of rising costs, longer construction timelines and high demand for construction contracts in the region.

The decision to dip into operating reserves leaves the current cash reserve balance around $11 million.

“I think this will lead us into a discussion I think the board will have to have at some point in the future to determine what our reserve policy will be,” Bill Mai, UW’s vice president of administration, said. “As of right now, we don’t have an identified source to replenish those reserves. If that becomes a priority for the board, we’ll have to identify a funding source for that.”

While the performing arts center renovation and expansion is nearly complete, the original $35 million price tag has grown by $7 million, coupled with $2 million in unmet private fundraising, the Laramie Boomerang reports (https://bit.ly/1Cm9kxr).

The project included a 66,256-square-foot addition, slated to house a 256-seat theatre and a 100-seat recital hall. To cover the additional costs, $9 million from the university’s operating reserve was allocated via unanimous trustee approval.

The initial phase of Half Acre renovations was completed this month, but Mai said rising construction costs and demand has delayed the second phase of the project along with problems relating to the project’s design. An additional $2.5 million in operating reserves was unanimously approved by the trustees to meet the project’s needs.

Trustee Mel Baldwin, serving in his first meeting, urged Mai’s office to make replenishing the university’s operating reserves a top priority.

“I strongly urge we consider replenishing this reserve,” Baldwin said. “It’s a very high priority for me. We need to be prepared as we consider future budgets to make sure we do what in my mind is very necessary to have an appropriate reserve.”

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Information from: Laramie Boomerang, https://www.laramieboomerang.com