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.

1. The Revenue Fund
with Matt and Sarah

4.  Types of Bonds
 History of Revenue Fund
 How it works
 Projects
 Student Involvement
 MSCSA position
Overview

5.  General Obligation (GO)
 Higher Education Asset Preservation
and Replacement (HEAPR)
 Revenue Fund
Three type of Bonds

6.  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

7. Bond, what
bond?

8.  Established in 1955
 Includes:
◦ Residence halls
◦ Dining services
◦ Student Unions
◦ Some parking facilities
◦ Any other revenue generating facilities
History of Revenue Fund

9.  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

10.  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

11.  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

12.  Pro-forma: Potential debt and
operations of the facility to be funded
with bond proceeds
 Business Plan
How it works

13.  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

14. St. Paul College – Parking
Ramp

15. St. Paul College – Parking
Ramp

16.  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

17. Normandale - Student Center

18. Normandale – Student Center

19. Normandale – Student Center

20.  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

21.  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

22.  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

23. Anoka-Ramsey Coon Rapids
Wellness Center

24. Anoka-Ramsey Coon Rapids
Wellness Center

25.  $ 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

26. MN State Community &
Technical College - Moorhead
Wellness Center

27.  Project Cost $1,457,000
 Student Fees
◦ $2.20 per credit $66 per year
MSCTC – Moorhead
Wellness Center

28. Revenue Fund Reallo
Alexandria Technical C
ATTACHMENT A
Alex Tech Parking
Improvements

29.  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

30.  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

31.  What is the campus investment?
◦ Are campus reserves being used?
 Survey students
◦ Email surveys
◦ Focus groups
◦ Forums
 Tour similar facilities
Student Involvement

32.  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

33.  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

34. Questions?