The Ball State University Board of Trustees approved new room and board rates for the 2005-06 academic year and supported the university's continued offering of the Premium Plan, which allows students to lock in the same rate for two years.

Currently 1,661 students are enrolled in the Premium Plan, meaning more than half of the students returning to university residence halls next year will not experience a rate increase.

Projected revenues from housing fees will fund a 4.3 percent increase in the housing budget necessary to cover rising costs for food and supplies, renovation and maintenance of the residence halls, employee health care and debt service on the residence halls.

The trustees approved a range of rates based upon room and meal plan choices. The rate increases range from 3.4 percent for a furnished two-bedroom apartment in the university's Anthony Apartments that will cost $548 per month to 5.5 percent for basic double-occupancy room and board in a residence hall that costs $6,570 per year.

Alan Hargrave, director of housing and residence life, says the residence halls and campus apartments offer students tremendous value and an enhanced college experience.

"Students get a room, all meals, the flexibility to eat anywhere on campus, the availability of on-site professional staff, numerous activities, high-speed Internet access, staffed technology labs, cable TV, fitness rooms, housekeeping service for restrooms and public areas, local phone service and a free movie channel," he said. "In addition, those amenities are offered in a safe and secure environment, so this is an exceptional value for students."

The university's 2005-06 basic rate is equal to or less than the 2004-05 basic rates at eight of Ball State's 14 peers in the Mid-American Conference and in Indiana.

In other news, the trustees:

• gave authority to the university's treasurer to evaluate the viability of refunding bonds sold to construct and equip the North Quadrangle Academic Building (Art and Journalism Building) and the Music Instruction Building. It is estimated that refunding the bonds at current market rates could result in savings between $500,000 and $700,000 that would accrue to the State of Indiana. If a plan to finance the refunding is viable, the treasurer has the authority to sell new bonds.
• revised the university's plan to finance the $36 million combined costs of building the new East Residence Hall and renovating the Woodworth Dining Hall. The trustees' previous action on Dec. 17 called for $30 million to come from the sale of housing and dining facility revenue bonds and the balance to come from the university's housing and dining renewal and replacement reserve fund. The previous action followed the university's general guidelines of using bonding authority for new construction and reserve funds for renovations. Based on current market trends for interest rates and the projected use of bonding and reserve funds for future residence and dining hall improvements, the trustees approved financing the entire $36 million cost through the sale of bonds.
• diversified investments in the Voluntary Employees' Beneficiary Association and the Life Insurance Continuance Fund, which provide dividends used to fund the university's retiree health care and life insurance programs, respectively. The portfolio investments had been made with 70 percent in equities (large and small capitalization domestic equities and international equities) and 30 percent in fixed-income securities. The fixed- income portion of the portfolio will be reduced to 20 percent, with the other 10 percent invested in real estate under the management of RREEF America.
• amended the campus residency requirement. The current policy requires all freshmen and transfer students with 24 or fewer credit hours to live on campus unless they live with their parents in the parents' primary residence, are married, or are 21 years old. Under the revised policy, all students with fewer than 24 credit hours must live on campus unless they are 21, are married, live with their parents in their parents' primary residence that is no more than 60 miles from campus, or have completed two semesters at Ball State.