February 4, 2002
SUBJECT: Bonds Refinancing
RECOMMENDATION
That the Board of Trustees approve Bonds Refinancing
to refinance existing debt and provide $5.8 million in new bond money funded by
a $1 building use fee increase, and approve the Preliminary Official Statement
and approve the resolution to appoint the underwriters
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 future. The attached briefing presented several
options and a consolidated summary of recommended options for discussion and
approval. Option 2 (the recommended
option) provided for the restructure of current bond debt plus the issuance of
new bonds funded by a $1 increase in the building use fee.
We recommend the Board approve Option 2 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
Jorge Rodriguez, Vice President, Coastal Securities
Jerry North, Interim Business Services Administrator
Leslie Sabin, Controller
ATTACHMENTS
Attachment
A: Debt Status and Financial
Options
Attachment
B: Financing Time Frame, including
required Board Action
Attachment C: Preliminary Official Statement
Attachment D: Resolution
Respectfully Submitted By:
Jerry North, Interim Business Services Administrator
Richard Fonté, President