January 14, 2002
SUBJECT: Bonds Refinancing and Real Property Acquisition
RECOMMENDATION
That the Board of Trustees discuss and set the time
tables for Bonds Refinancing, and approve the recommendations to refinance
existing debt, provide $5.8 million in new bond money funded by a $1 building
use fee increase, and sell the Riverside Golf Course.
RELATED BOARD
POLICY OR BOARD PLANNING PRIORITY
Policies E-1, Master Planning, E-2, Facilities
Planning, and G-6, Fund Balance.
The funding provides Austin Community College with
cash flow relief entering a volatile economic climate, achieves the Funds
Target per Board of Trustees Policy, G-6, and provides funds for real property
acquisition. Current bond rates are
very favorable and are not likely to remain as favorable in the favorable. The attached briefing presents three options
and a consolidated summary of recommended options for discussion and approval. Option 1 provides for restructure of current
bond debt. Option 2 provides for the
restructure of current bond debt plus the issuance of new bonds funded by a $1
increase in the building use fee.
Option 3 is an accelerated approach to attain the Funds Target through
the sale of the Riverside Golf Course.
We recommend the Board approve Option 2 and Option 3
in order to achieve the Funds Target per Board Policy in addition to having
funds available to purchase the South Austin Campus property, do the necessary
Riverside Campus retrofit associated with the Health Careers Building project,
and provide enhanced parking capability at the Pinnacle Campus.
BUDGETARY
CONSIDERATION
Costs of Refinancing are included in the Bond
Package.
RESOURCE
PERSONNEL
George DeTuccio, Vice President, Business Services
Jorge Rodriguez, Vice President, Coastal Securities
Jerry North, Budget Director
Leslie Sabin, Controller
ATTACHMENTS
Attachment
A: Debt Status and Financial
Options
Attachment
B: Financing Time Frame, including
required Board Action
Respectfully Submitted By:
George DeTuccio, Vice President, Business Services
Richard Fonté, President