Overview of the Revenue Fund
Revenue Fund Advisory Committee
September 20, 2013
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.
Advisory Committee Charter
 Designed over 10 years ago when
university only membership in Fund
 Now: over 33 eligible participants
(many more when all the interested
parties are involved)
 Question:
 Value / scope / purpose
 Can this advisory function be better
achieved through an agenda item at a
student association meeting or other
avenue?
2
What is the Revenue Fund?
3
What is the Revenue Fund?
A way to finance non-academic buildings using revenue bonds
Residence Halls
Student Unions/Centers
Parking ramps and lots
Health/Wellness Centers
 Funds for academic buildings come from Capital Budget (i.e.
legislative process)
5
Current Revenue Fund
Campuses
Revenue Fund is about 21% of
systemwide total square footage
System Gross Square Footage
5%
16%
GO
Rev Fund
RF Ramps*
79%
* Does not include parking lots
In Alexandria or Century.
7
5.6 million square feet including
parking ramps (4.6M sf without)
Revenue Fund GSF by Program
16.38%
Residence Halls
14.89%
Student Unions
55.21%
Wellness Centers
Parking ramps
13.53%
Nearly 3/4 of revenues come from
residence hall programs (2012)
2%
6%
19%
Room and Board
Fees
Sales and Service
Other
73%
9
Revenue Fund Facilities are in good
condition
 Current Replacement Value = $1.27B
 Backlog: $112 million
 Renewal: $76 million (next 5 years)
 Facilities Condition Index (FCI): 0.09
(system average is 0.11)
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Bond Ratings
 For recent bond sale:
 Moody’s: Aa2 (high quality)
 Standard and Poor’s: AA- (high quality)
 Both ratings characterize the investment as High Grade and
High Quality
 Generally stable outlook
 Acknowledges challenging climate
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
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Bonds by Campus (Total Sold) (2002-now)
Campus
Par Amount of Bonds
%Total
Enrollment (FYE /
2012)
Minnesota State University, Mankato
$79,249,079
23.28%
14,443
Winona State University
$46,900,898
13.78%
8,544
St. Cloud State University
$46,784,246
13.75%
13,938
Minnesota State University Moorhead
$32,583,078
9.57%
6,574
Metropolitan State University
$31,535,000
9.27%
6,086
Normandale Community College
$27,965,392
8.22%
7,131
Southwest Minnesota State University
$18,234,517
5.36%
3,681
Bemidji State University
$17,820,000
5.24%
4,634
Minneapolis Community & Technical College
$14,627,790
4.30%
6,963
Saint Paul College
$11,730,000
3.44%
4,729
Anoka Ramsey Community College
$6,420,000
1.89%
6,048
Century College
$4,330,000
1.27%
7,662
M-State Moorhead
$1,560,000
0.46%
1,973
Alexandria Technical College
$565,000
0.17%
2,268
100.00%
94,674
Total Par Amount of Bonds $340,305,000
Debt and Debt Service Summary
 Debt Capacity: $405M (by statute)
 Bonds Outstanding (principal): $295.3
 Until Capacity Reached: About $110M
 Current debt service: $23.6M
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
2011 Projects
Approved
Project Cost
Institution
Project Title
Status
Anoka Ramsey
Community College Coon
Rapids
Construct Fitness, Field House
and Wellness Center
$9,900,000
Complete
Bemidji State University
Renovate Birch Hall
$7,530,000
Complete
Minnesota State
Community Technical
College Moorhead
Wellness Center addition
$1,457,000
Complete
Minnesota State
University Mankato
Renovate Centennial Student
Union Ballroom
$4,500,000
Complete
Minnesota State
University Mankato
Construct Residence Hall
$29,925,000
Complete
Minnesota State
University, Moorhead
Renovate Dahl Hall
$8,615,000
Complete
St. Cloud State University
Renovate North Shoemaker, Case
& Hill Halls
$16,675,000
Complete
Saint Paul College
Construct Parking Ramp
$10,429,000
Complete
Normandale College
Construct Parking Ramp
$12,000,000
Complete
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
19
20
21
22
23
24
St. Cloud State University (Atwood)
Updated common areas and consolidated
student groups and organizations on the main
floor with open, yet private, work areas
25
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2015 Revenue Bond Candidates
Bond
Year
Title
Institutions
4,500,000 $ 1,000,000
Campus funds &
outside funding
sources
Minnesota State
University
Dining/Student
Moorhead
Union
$
8,500,000 $4,500,000
2015 Revenue Bond
and CMU R&R
Reserves
Student Life Expansion
Dining/Student
Century College Union
$
1,000,000 $ 200,000
New Fee
Residential Dining and
Student Health Services
Minnesota State
University,
Dining, Student
Mankato
Health
$
North Wing College
Center
Inver Hills
Community
College
2015
Student Housing
Replacement
Vermilion
2015
Comstock Memorial
Union Renovation and
Addition
2015
2015
2015
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Program Type Project Amount Campus Contribution
Campus Funding
Source
Residential
$
Dining/Student
Union
$
37,000,000 $ 2,000,000
7,800,000 $1,000,000
Existing Revenue
Fund Reserves
General Fund Fund
Balance
Future Planning in the Revenue Fund
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Capital Planning
 Consolidated planning effort
 Tie together with the work on Charting the Future
 Capital Guidelines – dual track
 Revenue Fund 2015
 Capital budget 2016
 Themes
 Keeping costs low, but
 Catching up on maintenance and repair
 Keep up with projects
 Position for the future
 Unknown –
 How rating agencies will look at higher ed
 Price sensitivity (cost of attendance)
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Questions
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