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Revenue Fund

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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.

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Revenue Fund

  1. 1. The Revenue Fund with Matt and Sarah
  2. 2.  Types of Bonds  History of Revenue Fund  How it works  Projects  Student Involvement  MSCSA position Overview
  3. 3.  General Obligation (GO)  Higher Education Asset Preservation and Replacement (HEAPR)  Revenue Fund Three type of Bonds
  4. 4.  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
  5. 5. Bond, what bond?
  6. 6.  Established in 1955  Includes: ◦ Residence halls ◦ Dining services ◦ Student Unions ◦ Some parking facilities ◦ Any other revenue generating facilities History of Revenue Fund
  7. 7.  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
  8. 8.  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
  9. 9.  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
  10. 10.  Pro-forma: Potential debt and operations of the facility to be funded with bond proceeds  Business Plan How it works
  11. 11.  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
  12. 12. St. Paul College – Parking Ramp
  13. 13. St. Paul College – Parking Ramp
  14. 14.  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
  15. 15. Normandale - Student Center
  16. 16. Normandale – Student Center
  17. 17. Normandale – Student Center
  18. 18.  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
  19. 19.  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
  20. 20.  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
  21. 21. Anoka-Ramsey Coon Rapids Wellness Center
  22. 22. Anoka-Ramsey Coon Rapids Wellness Center
  23. 23.  $ 9,893,000 Total Cost ◦ $3,893,000 campus funds ◦ $6,000,000 bond sale  Student Fee ◦ $150 per year Anoka-Ramsey Coon Rapids Wellness Center
  24. 24. MN State Community & Technical College - Moorhead Wellness Center
  25. 25.  Project Cost $1,457,000  Student Fees ◦ $2.20 per credit $66 per year MSCTC – Moorhead Wellness Center
  26. 26. Revenue Fund Reallo Alexandria Technical C ATTACHMENT A Alex Tech Parking Improvements
  27. 27.  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
  28. 28.  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
  29. 29.  What is the campus investment? ◦ Are campus reserves being used?  Survey students ◦ Email surveys ◦ Focus groups ◦ Forums  Tour similar facilities Student Involvement
  30. 30.  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
  31. 31.  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
  32. 32. Questions?

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