Revenue Fund Revenue Fund Advisory Committee February 3, 2014 Greg Ewig System Director, Capital Development Minnesota State Colleges and Universities The Minnesota State Colleges and Universities system is an Equal Opportunity employer and educator.
Agenda Revenue Fund Advisory Committee Introductions Proposed projects for 2015 Revenue fund updates Best practices Other business Adjourn Residence Halls Student Unions/Centers Parking ramps and lots Health/Wellness Centers
2015 Revenue Bond Candidates Bond Year Institutions Title Program Type Project Amount Campus or other Contribution Bond Amount (does not incl. issuance) Campus Funding Source Status 2015 Century College Student Life Expansion Dining/Student Union $0 New Fee 35-50% predesign; Verifying option; project amounts sq. ft. pending 2015 Minnesota State University Moorhead Comstock Memorial Union Renovation and Addition Dining/Student Union $8,500,000 $4,500,000 $4,000,000 2015 Revenue Bond and CMU R&R Reserves Predesign approved 2015 Minnesota State University, Mankato Residential Dining, Student Dining Services Health $31,406,500 $2,000,000 $29,406,500 Existing Revenue Removed student health; Fund Reserves dining only 2015 NHED - Vermilion Community College Student Housing Replacement Residential $4,400,000 $1,000,000 $3,400,000 Campus funds & outside funding sources (IRRRB) Proforma Submitted; Predesign pending Subtotals: $44,306,500 $7,500,000 $36,806,500 3
Revenue Bonds Issued by Year Year Total Appropriation 2002 $36,275,000 2005 $45,320,000 2007 $43,070,000 2008 $41,020,000 2009 $35,810,000 2011 A & B $85,800,000 2011 C $12,000,000 2012 (refunding of 2002) 2013 $58,795,000 4
Bonds by Campus (Total Sold) (2002-now) Campus Par Amount of Bonds %Total 2015 Minnesota State University, Mankato $79,249,079 23.28% Winona State University $46,900,898 13.78% St. Cloud State University $46,784,246 13.75% 2015 Minnesota State University Moorhead $32,583,078 9.57% Metropolitan State University $31,535,000 9.27% Normandale Community College $27,965,392 8.22% Southwest Minnesota State University $18,234,517 5.36% Bemidji State University $17,820,000 5.24% Minneapolis Community & Technical College $14,627,790 4.30% Saint Paul College $11,730,000 3.44% Anoka Ramsey Community College $6,420,000 1.89% 2015 Century College $4,330,000 1.27% M-State Moorhead $1,560,000 0.46% Alexandria Technical College $565,000 0.17% Total Par Amount of Bonds $340,305,000 100.00%
Debt and Debt Service Summary Debt Capacity: $405M (by statute) Bonds Outstanding (principal): $295.3 Current debt service: $23.6M True Interest Tax Exempt Bond Year True Interest Cost Tax-Exempt Taxable 2002 4.83% 6.45% 2005 4.45% 4.89% True Interest Cost 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Tax-Exempt 2007 4.18% 5.63% 2008 4.44% 5.27% 2009 4.09% 4.51% 2011 A&B 4.26% 3.48% 2011C 3.45% 2012 Refunding 1.84% 2.03% 2013 2.78% 1.91% True Interest Cost 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% True Interest - Taxable Taxable
Preparation for a bond sale 2013 Revenue Bond Sale May 2011 Call for projects Summer - Fall 2011 Predesign begins Preliminary project list Spring - Summer 2012 Legislation increasing debt ceiling Fall 2012 Board review and approval (Oct/Nov) Rating agency visits March 2013 sell bonds April 2013 work commences 2015 Revenue Bond Sale May 2013 / Kick off meeting Call for projects Summer - Fall 2013 Predesign begins Preliminary project list Spring - Summer 2014 Refine predesign Present projects to Facilities Fall 2014 Board review and approval (Oct/Nov) Rating agency visits March 2015 sell bonds
2013 Sale overview Universities Sold $58 million (including $3 million taxable) Projects summary: Renovate and update 425 bed spaces (St. Cloud, Moorhead) Remove 1,200 beds from system s inventory (Mankato/Gage) Add 815 835 parking stalls (Metro State) Add 35,000 sq. ft. of new student union space at Metro State and WInona Renovate 33,000 sq. ft. of student union space (Winona, St. Cloud)
2013 Projects Institution Project Title Total Estimated Project Cost Campus Funding Total Cost of Bond Issuance Metropolitan State Construct Student Center $11,600,000 $1,695,000 $14,484,000 Metropolitan State Construct Parking Ramp $17,510,000 $1,000,000 $21,860,000 MSU, Mankato Demolish Gage Hall $6,000,000 $4,000,000 $2,220,000 MSU Moorhead Renovate West Snarr Hall $4,900,000 $0 $5,439,000 St Cloud State St Cloud State Winona State System - Taxable Bond Series Renovate East and West Shoemaker Renovate Atwood Student Center Renovate Kryzsko Commons $17,200,000 $4,200,000 $14,430,000 $4,970,000 $1,390,000 $3,973,000 $4,250,000 $2,250,000 $2,220,000 Planning and Design $3,000,000 $0 $3,330,000
Best Practices System-wide Functions Current authority and capacity levels Outstanding debt service Current bond interest rates Information on proposed future revenue fund projects included in campus master facility planning across the system 10
Best Practices Existing Campus-level Functions Overview of all projects Potential of fee modifications Total fee revenue Operating costs and maintenance costs 11
Best Practices New Campus-level Projects Proposed fee Fee projections through the life of the bond, including enrollment projections Connection to the MnSCU Strategic Framework and Charting the Future Process through which need for the revenue fund project was established 12
Best Practices Student Consultation Detail of process used to gain student input on the project Risk to students of fee volatility Evidence of broad student support for the project Evidence of effective student consultation through revenue fund campus committee(s) Ongoing student consultation through each stage of the process At project pre-design Prior to bond sale Student senate support prior to bond sale 13
Questions 14