revenue fund
DESCRIPTION
Matt Rubel, MSCSA Treasurer and Sarah Clarke, MSCSA Director of Government Relations The Revenue Fund is a financing program for colleges and universities to build dormitories, parking facilities, wellness centers, and other revenue generating facilities on campus that do not serve an academic purpose. This session will discuss the history and details of the program, and what students should consider before using the Revenue Fund to build new facilities on campus.TRANSCRIPT
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?