Improvement Program (CIP) Plan Priorities for Next Capital ... bond presentation.pdfRevenue...
Transcript of Improvement Program (CIP) Plan Priorities for Next Capital ... bond presentation.pdfRevenue...
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Debt Capacity and Facilities Master Plan Priorities for Next Capital
Improvement Program (CIP)
Strategic Planning RetreatNovember 14, 2015
Diane E. Snyder, CPA, M.S. Vice Chancellor for Finance and Administration
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1. Provide skilled technical workforce to meet present and future employer needs in critical high demand, high growth industries in our region.
2. Create capacity for a growing number of students to successfully complete training and get a job or transfer to a university.
Alamo Colleges - Grew 24% since 2005, adding 12,700 students since last bond election(15 year Demographic growth + 46%, +30,000 students by 2030)
San Antonio – Expected to grow 1,000,000 people by 2030
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Why is CIP investment needed?
Alamo Colleges must continue to be a catalyst in providing a skilled workforce for the economic benefit of our region.
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Best practice followed in 2005 CIP:● Citizen's CIP Bond Committee (Plan Development prior to
November 2005 Ballot)
● Citizen's CIP Oversight Committee (Through 2010)
● Ensure expenditures in accordance with Bond Projects approved by Voters
● Review of funds proposed to be moved between projects
● Periodic reports to the Public and Alamo Colleges Board of Trustees
CIP includes Citizen Involvement(Taxpayers, Business, Industry, Students, Senior Citizens'
Organizations)
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2005 versus 2016
2005 CIP 2016 Proposed CIP
1. Student Growth2. Aging Facilities3. Community and Workforce Needs
1. Student Growth (+ 30K in 15 years)2. Aging Facilities3. Community and Workforce Needs4. Student Support for Completion
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Skilled Technical Workforce in Key Industries
11stst Responders Responders: : Must have realistic training facilities to be prepared in the critical early stages of an emergency. San Antonio expected to add 1 million people by 2030.
Advanced Manufacturing in Advanced Manufacturing in Transportation – Aerospace and Transportation – Aerospace and AutomotiveAutomotive: : Needs ongoing specialized training for success of industries….SA2020
HospitalityHospitality:: Employs 122,500 people with annual payroll of $2.5 billion. Economic impact to San Antonio region is $13.4 billion….Travel and Tourism Impact Study Oct 2014.
Information Technology and Information Technology and CybersecurityCybersecurity: For every 10 jobs posted in the broad IT field, just 1 person had the appropriate training…SA2020
HealthHealth:: 1 in every 6 jobs in San Antonio is in healthcare – $25 billion economic impact…COSA 2016 Budget
Alamo Colleges must maintain its competitive edge to prepare workforce in
rapidly changing industries.
STEM
AgricultureAgriculture: : Second largest industry in Texas. 220,000 farms in Texas. Provides most affordable and healthy food supply in the world…Economy Watch
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Critical Regional Workforce Needs:◦ Information Technology/Cybersecurity◦ Medical and Allied Health◦ Advanced Manufacturing, Transportation & Logistics◦ Hospitality◦ Agriculture◦ 1st Responders
2005 CIP: Built two state-of-the-art Allied Health Buildings (SAC and SPC)
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Centers of Excellence
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Centers of Excellence
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Deferred maintenance, poor building conditions (water intrusion, roofs, HVAC)
Upgrade technology:◦ To meet program needs◦ Learning-centered instructional needs
Too many small classrooms; combine some rooms
Student Support facilities cramped, spread-out across campus
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Old Buildings: Under-utilized
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DEFERRED MAINTENANCE: Requirements Breakdown Top 36 Buildings
9DEFERRED MAINTENANCE UPDATE
206 Buildings
170 Buildings
84% of Inventory
Top 36 Buildings
60%$117.6 MM
40%$77.9 MM
$196 MM FCI $340 MMRecommendations+FCI
29%
$98.8 MM
170 Buildings FCI
71%
$241.2 MM
Identified Project Buildings
5/12/2015
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⋅ Increased $13m in Student Services since 2010– Advisors– Tutoring– Welcome centers (admissions, testing, bursar, SFA, …)
⋅ Facilities need expansion and renovation
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Student Support Services
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Priority Facility Needs: $722M
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Now is the time to address $400M, the most critical needs
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Need to start planning on next CIP to provide capacity at NVC and NLC by Year 6 (2021) – support 20% growth in on-campus FTSE
Address older building deferred maintenance to increase utilization Add buildings to support critical workforce programs Add/Adapt student support buildings
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NVC Exceeds Capacity –FTSE
FTSE = Full time equivalent student (12 CH)
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Grow/Adapt Facilities: add capacity via voter authorized debt◦ November Board Retreat – authorize est. Citizen’s
Committee◦ Preparation for bond election – 12 months◦ Election for bonds –November 2016◦ Initial Sale of Bonds –Spring 2017◦ Build capacity for growth
Ø2017: $135 MillionØ2019: $135 MillionØ2021: $130 Million
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Need $400M CIP or may limit future enrollment
$400 Million CIP with no tax increase
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Source: First Southwest
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Debt Capacity Analysis: GO Bonds
Voter Auth. Nov. 2016, Bonds issued Spring 201730 Year structure, issued in three seriesAssumes 2-5% valuation growth first 5 yrs.; collections rate 98.5%
Issue $400M with NO tax increase
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Prior CIP was approx. equal $ alloc. to each college◦ Did not consider College # Students variances◦ Did not consider older renovation needs◦ Did allocate $ off the top for Technology
$400M New CIP – allocationa. Determine % to fund areas at all 5 colleges:
(IT, Security, Sustainability/ Energy, new regional center (NCC), Signage/Physical Plant),
b. Consider full-time student equivalent (FTSE) “on-campus” forecasted at 2025 to allocate $ per college
c. Consider higher $ on older colleges/renov. (SAC/SPC)
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Options on allocation of $400M
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Northeast Lakeview College
Priorities: $ 79M
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Northwest Vista College
Priorities: $110M
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Palo Alto College
Priorities: $106M
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San Antonio College
Priorities: $156.2M
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St. Philip’s College
Priorities: $151.5M
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Options for North Central Land: a)“online” Regional Center used by allb) secondary campus to NVC
Ø Develop a new campus focused around the quickly developing "on-line" students
Ø Build a traditional campus just with less bricks and mortar
Ø Focus construction on facilities for which student have to come to campus; spaces that host courses or elements of courses that require "hands-on" learning (i.e. Chemistry, Biology, Geology, Physics, and Kinesiology lab spaces)
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Ø Construct testing and open computer laboratory space where students come to the campus and take tests in person; lectures primarily take place "on-line”
Ø The library should be planned to be as "virtual" as possible with the constructed facility housing a minimum of stacks and several group learning spaces for students that want to gather as a group to discuss the courses or work together in person on projects
Ø Build less traditional classroom spaces
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Potential IT Investment Areas
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● Form Citizen's CIP Bond CommitteeØ Taxpayers, Business, Industry, Students, Senior Citizens' Organizations
Ø Plan Development prior to November 2016 Ballot
Ø Helps develop preliminary marketing plan which may include: Town hall meetings, TV/radio/newspaper releases, select PR firm
● Facilities Plan – to Board by May or June 2016
● Target Election: November 2016
Next Steps
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Voted Limited Tax Bonds: Typical Project Plan Steps Event Timing
Facilities Study is commissioned- Board appoints Citizen’s Facilities Committee to work with Staff and Consultant(s)
Citizen’s Committee also determines preliminary marketing plan which may include: Town hall meetings, TV/radio/newspaper releases, select PR firm
6-9 months in advance of Board presentation
Results of Facilities Study is presented to Board
Board approves Order calling for election
Bond Steering Committee appointed- marketing period begins 2-4 months prior to Election
Notices posted/publishedHold PTA/Civic Organization/Town hall meetings
Conduct Election Uniform Election Days November/May
Canvass election returns 8-11 days post Election
End of Election contest period- Bonds may be issued Earliest is 30 days after Canvassing
Source: Fulbright & Jaworski, LLP, First Southwest
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Appendix:Debt Supporting Data
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Facilities Improvements to Date
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IT Support funds used for secure wireless on all campuses, fiber linkage, E-learning management, data storage, VOIP, data security, district-wide infrastructure
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Historical Debt ActivityFY Action Taken
2006 Issued $110.3 million in Ltd Tax Bonds and $30.4 million in MTN
2007 Issued $334.6 million Ltd Tax Bonds, $81.1 million MTN, $32.3 million Revenue Bonds
2009 Called existing debt of $5.5 million; Issued $11.9 million in MTN
2011 Cash defeased $525K Series 2007 MTN; $55 million new issue MTN, Series 2011
2012 Refunded all outstanding Revenue Bonds with $78.1 million issueRevenue Financing System Series 2012 A&B ($15 million new money)
Refunded $77.9 portion Ltd Tax 2007 /2007A with $74.1 Ltd Tax
2013 Cash defeased $1.6 million Series 2007 MTN
2014 Cash defeased $2.3 million Series 2007 MTN
2014 Refunded $48.5 million 2007 MTN with $40.7 million Refunding issue
2015 Cash defeased $4.9 million Series 2007 MTN
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Estimated Outstanding Debt @ 8/31/16 (in millions)
Limited Tax
MTN Revenue Total
Outstanding @ 8/31/15 $364.9 $99.4 $64.0 $528.3
Total Debt Service FY 16 ($10.0) ($9.8) ($4.7) ($24.5)
Debt Management Strategies FY 16 (1) (2)
($9.1) ($12.8) $55.0 $33.1
Outstanding @ 8/31/16 $345.8 $76.8 $114.3 $536.9
Average Life is the weighted average maturity in years of the debt- indicates how rapidly principal is expected to be paid off
Ltd Tax Debt = 13.043 years (11-1-15)MTN Debt = 6.001 years (11-1-15)
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(1) Includes defeasance of the Series 2006/2007 MTN and refunding of Ltd Tax 2006/2006A(2) Issuance of Revenue Bonds for DSO Building FY2016/2017
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Total Outstanding DebtTotal Principal Outstanding
As of Limited Tax Bonds 11-1-15
Limited Tax Bonds, Series 2012 $ 74,110,000Limited Tax Bonds, Series 2007A 34,140,000Limited Tax Bonds, Series 2007 173,420,000Limited Tax Refunding Bonds, Series 2006A 45,020,000 Limited Tax Refunding Bonds, Series 2006 38,180,000
$ 364,870,000
Maintenance Tax NotesMaintenance Tax Notes, Series 2011 $ 39,325,000Maintenance Tax Notes, Series 2007 64,905,000Maintenance Tax Notes, Series 2006 20,480,000
$ 99,360,000
Revenue BondsRevenue Financing System, Series 2012A $ 54,575,000Revenue Financing System, Series 2012B 4,680,000
$ 59,255,000
Total Principal Outstanding $ 523,485,000
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Comparative Debt StatisticsPeer
Community College
Tax Supported
Revenue Supported
Unrestricted Net Assets
Alamo Colleges $472.7 million $64.0 million $86.2 million
Austin $82.7 million $169.6 million $22.0 million
Collin County $34.6 million $3.2 million $235.7 million
Dallas County $321.5 million $15.2 million $237.8 million
El Paso none $47.1 million $34.7 million
Houston $645.9 million $194.1 million $118.2 million
Lone Star $458.8 million $114.4 million $52.5 million
San Jacinto $279.0 million None $77.9 million
South Texas College $88.8 million None $146.2 million
Tarrant County None None $206.3 million
As of April 1, 2015Source FirstSouthwest:, MAC website, CAFRs
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Peer Community
College
Per Capita Per FTSE As % of Taxable Assessed Value
San Jacinto $558 14,285 .71%
Houston $319 13,733 .50%
Alamo Colleges $277 13,991 .47%
Lone Star $205 11,838 .36%
Dallas County $136 6,799 .20%
South Texas College $89 3,093 .26%
Austin $50 4,523 .07%
Collin County $38 1,806 .04%
Tarrant County $3 218 .01%
El Paso None None n/a
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Comparative Debt StatisticsTax Supported Debt- 2014
As of April 1, 2015Source FirstSouthwest:, MAC website, CAFRs
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Available Debt Instruments
Purpose Auth RepaymentDebt New Building Furnishing
Instrument Construction Acquisition Renovate & Equipping Land
Voted Limited Yes No Yes Yes Yes Voter LevyTax Bonds
Maintenance No No Yes Yes* No Statute Levy or
OperatingTax Notes
Combined Fee Yes Yes Yes Yes Yes Board OperatingRevenue Bonds
* Equipping of existing facilities more flexible than the equipping of new facilities.
Source: First Southwest
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