Pi Kappa Alpha - University of Texas

Planning for Financial Stability and Sustainability for the next 100 years Chapter's Budget/Dues Current Annual Budget • $4,500 annually per man • Total chapter budget exceeds $700,000 s 140 men are paying an average of $4,500 annually ($630,000 total) s e separate sleeping room income adds another $65,000 to $70,000 annually Financial Arrangement with Chapter (Tenant) Current – Beta Mu Chapter (tenant) pays Beta Mu Building Corp. (owner) $68,000 per year in rent • 18 sleeping rooms at $350 per month for nine months, yielding $56,700, plus summer rent (typically two-thirds full) at $250 per month, yielding an additional $9,000 • Owner pays $39,000 in property taxes (2015) and $19,000 in insurance annually with the remainder reserved for major repairs and improvements • Tenant (Beta Mu Chapter) pays for most of the operational costs, such as utilities, cable, lawn service, ordinary repairs under $1,000, etc. ese are accounted for in the chapter's general budget (>$700,000) along with social, kitchen operation, national dues, rush budget, etc. Future – Moving forward, ensuring rents are in line with market rates and taxes are accounted for is paramount in a sound Pike housing plan. Chapter approved rent increase to ~$1,167/month for 12 months— market rate for West Campus, consistent with Fiji, KS, FKY, and SAE room rents. • Total room rental – $434,124 • 31 sleeping rooms • Additional parlor fee for out-of-house brothers Property Taxes Current – $39,000 • .68 acre lot; assessed value of $1.7 million with land valued on the tax rolls at $1.5 million and improvements valued at $164,000 Future – $200,000 • Pike planning is based upon its "small," .68 acre lot and its location on campus in comparison to peer assessments e new house will generate revenues necessary for debt service, house operations and taxes while allowing for a long-term reserve for future maintenance costs. Great financial rigor has gone into building a new house for Beta Mu, maximizing land and space use, as well as planning for a 150-200 member chapter in the future. e alumni fundraising goal of $5 million is achievable with additional alumni support. e chapter can comfortably service at least $3.5 million in long-term debt. 5 www.texaspike.com T oday's Beta Mu Chapter alumni leadership gives significant care to the organization's financial oversight. Beta Mu Chapter has for years maintained a solid financial position, with consistent and stable membership dues and strong financial controls internally and externally with alumni oversight and CPA services. e chapter is the "tenant," leasing the house and property on a not-for-profit basis from the Beta Mu Building Company (BMBC). BMBC has been thoughtfully and conservatively managed by President Emeritus Don Flournoy '66 along with a board of Austin-based alumni. Bert Dement '66 is now president of BMBC. e Alumni Board finance liaison to the chapter is Ken Womack '82 and the chapter and BMBC retain the services of local CPA firm Reynolds & Franke (Ronney Reynolds '66), adding a layer of professional oversight. "I am supporting the campaign because: (1) we need to re- main competitive with other top-tier fraternities who have or are building new houses, (2) the existing house was old when I was there in 1974-78 so its way past its useful life, (3) some of my best and closest friends today are Pikes that I met in college, and (4) the time is right to create a long- term legacy for our chapter." – Rusty Tamlyn '75 An in-depth proforma can be provided upon request.

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