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”
Residence Halls
Student Unions/Centers
Parking ramps and lots
Health/Wellness Centers
 Other business
 Adjourn
2015 Revenue Bond Candidates
Bond Year Institutions
Title
Program
Type
Project
Amount
2015
Century
College
Student Life
Expansion
2015
Minnesota
State
University
Moorhead
Comstock
Memorial
Union
Renovation
and Addition
2015
Minnesota
State
University,
Mankato
Residential
Dining, Student
Dining Services Health
$31,406,500
2015
NHED Vermilion
Community
College
Student
Housing
Replacement Residential
Dining/Student
Union
Dining/Student
Union
$8,500,000
Subtotals:
3
Campus or Bond Amount
other
(does not incl.
Contribution issuance)
Campus
Funding
Source
Status
35-50% predesign;
Verifying option; project
amounts sq. ft. pending
$0
New Fee
$4,500,000
$4,000,000
2015 Revenue
Bond and CMU
R&R Reserves Predesign approved
$2,000,000
$29,406,500
Existing Revenue Removed student health;
Fund Reserves dining only
Campus funds &
outside funding Proforma Submitted;
sources (IRRRB) Predesign pending
$4,400,000
$1,000,000
$3,400,000
$44,306,500
$7,500,000
$36,806,500
Revenue Bonds Issued by Year
4
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
Bonds by Campus (Total Sold) (2002-now)
Par Amount of
Bonds
Campus
2015
2015
2015
%Total
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%
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%
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
Tax-Exempt
Taxable
2002
4.83%
6.45%
2005
4.45%
4.89%
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%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Tax-Exempt
True Interest - Taxable
True Interest Cost
True Interest Cost
Bond Year
True Interest Cost
True Interest – Tax Exempt
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
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
Total Estimated
Project Cost
Institution
Project Title
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
Renovate East and West
Shoemaker
$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
$3,000,000
$0
$3,330,000
St Cloud State
Winona State
System - Taxable Bond
Series
Renovate Atwood Student
Center
Renovate Kryzsko
Commons
Planning and Design
Campus Funding
Total Cost of Bond
Issuance
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