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Oakton Community College Operating Funds (Education and Building)

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Title: Oakton Community College Operating Funds (Education and Building) Author: sandyh Last modified by: vicki Created Date: 5/26/1999 2:21:57 PM – PowerPoint PPT presentation

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Title: Oakton Community College Operating Funds (Education and Building)


1
Board of Trustees Meeting Funding
Possibilities For Master Plan May 25 , 2010
2
Master Plan Steering Committee Objectives
  • New Science and Allied Health Labs
  • Enrollment Center
  • Classroom modernization
  • Student studying/gathering space
  • Wi-Fi and cell phone reception in all public
    areas
  • Infrastructure

3
Other Community Colleges Master Plans
  • Harper College 89 million in 2001
  • 156 million in 2008
  • College of DuPage 183 million in 2002
  • Moraine Valley 89 million in 2006
  • Elgin 178 million in 2009
  • Joliet 220 million in 2008

4
How Much Will Oaktons Master Plan Cost?
25 Million ? 50 Million ? 75 Million ? At
this time we dont know
5
What We Do Know
It is not too early to be thinking about how
Oakton might fund its Master Plan
6
Funding Possibilities
  • Bonds (non-referendum)
  • Debt certificates
  • Construction fee
  • Performance contracting
  • Alternative funding
  • Net assets (reserve)
  • ICCB Grant/State of Illinois

7
(No Transcript)
8
Bonds
  • Debt Extension Base is 2,950,000
  • Max College can spend in one year on debt service
    (principal interest)
  • Grows at same rate as CPI

9
Bonds
  • Assuming CPI grows 1.5 annually
  • College could borrow about 45 million
  • Pay it back over 20 years
  • Interest rate of 4 (May, 2010)
  • Total cost principal interest about 73.5
    million
  • Would increase property tax bill by 7 annually
  • Typical homeowner property tax bill increase from
  • 175 to 188 or 13 increase

10
Debt Certificate
  • Similar to bonds
  • Can be used to pay for construction
  • Less restrictive than bonds requires only Board
    action
  • May cost 1025 basis points more than bonds
  • No tax levy to support debt service

11
Construction Fee
  • Could add construction fee to help pay for Master
    Plan
  • 5 per credit hour equals 1 million annual
    revenue stream
  • Could issue Alternate Revenue Bonds with the
    revenue stream
  • College could borrow about 11 million
  • Pay it back over 20 years debt service cost of
    19 million
  • Interest rate of 4 (May, 2010)

12
Performance Contracting
  • Make energy saving improvements
  • Energy savings pay for improvements
  • Down side
  • More expensive than bonds
  • Interest rate of 6 9
  • Usual 10 year term

13
Alternative Funding
  • Capital Campaign by Education Foundation
  • Creation of partnerships with businesses
  • Stimulus Programs
  • Energy efficiency back grants
  • State energy program
  • Other Grants

14
Net Assets (Reserve)
June 30, 2009
Unrestricted Reserve 59,800,000 Restricted
Reserve 22,670,000
15
ICCB Grant State of Illinois
  • Currently Oakton is number 21 on the ICCB Capital
    Projects list
  • If funded would represent about 40 million to
    College from the State

16
Our Timing is Good
  • Interest rates are near all-time lows
  • Construction costs are down
  • Number of realistic funding options
  • Ability to mix and match funding options
  • Opportunity to involve many stakeholder groups

17
(No Transcript)
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