The Revenue Fundwith Matt and Sarah

Types of Bonds History of Revenue Fund How it works Projects Student Involvement MSCSA position

Overview

General Obligation (GO) Higher Education Asset Preservation

and Replacement (HEAPR) Revenue Fund

Three type of Bonds

General Obligation (GO)◦ Most buildings on campus◦ State pays for 2/3 of project costs◦ MnSCU system and campus 1/3

Higher Education Asset Preservation and Restoration (HEAPR)◦ Warm, Safe, Dry◦ State pays 100%

Revenue Fund◦ Students (users) pay 100%

The Differences in Bonds

Bond, what bond?

Established in 1955 Includes:

◦ Residence halls◦ Dining services◦ Student Unions◦ Some parking facilities◦ Any other revenue generating facilities

History of Revenue Fund

Since inception - only open to State Universities, until 2008

MSCSA initiated the legislative change to open the Fund to 2 year colleges

History of Revenue Fund

The need for a new type of space User fees or student fees 20 year loans The fee covers:

◦ Debt on the bond◦ Operating costs: utilities, labor, repairs,

maintenance, and reserves

How it works

Leading up to a bond sale◦ Projects developed at campus level◦ Administrators/students determine

parameters◦ Predesign developed – scope, cost, and

schedule◦ MnSCU System Office reviews predesign

and works with campus to create Pro-forma

How it works

Pro-forma: Potential debt and operations of the facility to be funded with bond proceeds

Business Plan

How it works

St. Paul College – Parking Ramp Normandale – Student Center & Parking

Ramp Century – Parking Improvements Minneapolis Comm & Tech – Student

Center Anoka-Ramsey Coon Rapids – Wellness

Center MSCTC Moorhead – Wellness Center Alex Tech- Parking Improvements

Recent Projects

St. Paul College – Parking Ramp

St. Paul College – Parking Ramp

Project Cost: $10,429,000 491 new parking stalls (1308 to

1799) $2.50 per day Average cost $260-275 Maximum $402.50 per student

St. Paul College – Parking Ramp

Normandale - Student Center

Normandale – Student Center

Normandale – Student Center

Project Cost: $14,424,000◦ Campus contribution $2,000,000◦ Sale Amount $13,790,640

Size: ◦ Renovation 33,000 gsf◦ New construction 25,800 sq. ft.

$150 per year planned $180 FY11 $195 ($6.50 per credit) FY12

Normandale – Student Center

Project Cost: $10,080,000◦ Sale Amount $11,188,800

Size: ◦ Renovation 19,400 gsf◦ New construction 21,000 gsf

Student Cost◦ $210 per year FY11◦ $180 per year FY12

Minneapolis Comm & Tech College – Student Center

Renovation 884,000 sq. ft. (20.3 acres)

Project Cost $4,075,000◦ Sale Amount $4,523,250

Student Fees◦ $3.00 per credit (FY 10) $90◦ $4.00 per credit (FY11) $120◦ $4.50 per credit (FY 13) $135

Century College – Parking Lot

Anoka-Ramsey Coon Rapids Wellness Center

Anoka-Ramsey Coon RapidsWellness Center

$ 9,893,000 Total Cost◦ $3,893,000 campus funds◦ $6,000,000 bond sale

Student Fee◦ $150 per year

Anoka-Ramsey Coon RapidsWellness Center

MN State Community & Technical College - Moorhead

Wellness Center

Project Cost $1,457,000 Student Fees

◦ $2.20 per credit $66 per year

MSCTC – MoorheadWellness Center

Alex Tech Parking Improvements

Refurbished 6 main parking lots 470 spots out of a total 1369 spots Total project cost of $800,000

◦ $500,000 from revenue fund bonds◦ $300,000 from reserves

Student fee: ◦ $2.40/credit- FY 13◦ $2.50/credit- FY 14◦ $2.60/credit- FY 15

Alex Tech Parking Improvments

Wants v. Needs Multiple Options and Cost Structures Understanding of revenues and

expenditures◦ Over time will the student fee:

Decrease? Stay flat? Increase?

Student Involvement

What is the campus investment?◦ Are campus reserves being used?

Survey students◦ Email surveys◦ Focus groups◦ Forums

Tour similar facilities

Student Involvement

Revenue Fund Advisory Committee◦ Both campus administrators and students

Sharing best practices Serve as counsel to student senates

◦ Understanding financials & process◦ Creating a survey plan

Ask questions of administration/MnSCU

MSCSA Involvement

Campuses’ first option should be General Obligation (GO) bonds (2/3 paid by state)

Local investment by campus from carry forward/reserves

Extended survey work with students Solid financial analysis needed of all

projects

MSCSA position

Questions?