State University of New York Residence Hall Program Capital Plan Request – Spring 2017

Agenda Res Hall Capital Program Capital Plan Request Appropriation & Article VII Legislation Project Funding Options Cash Flow Bonding Update on Recent/Ongoing activities Questions ? Capital Plan Request Overview of Worksheets Changes to 2017 Request Capital Plan Reminders / Events Capital Plan and future bond sale. Questions?

Res Hall – Appropriation & Article VII Appropriation - Authority to let State supported contracts and disburse cash, established in State budget Hard Dollar Capital Appropriation Revolving Loan/Campus Reserves - 074 - $0 requested for 2017-18 Annual Transfer Limits – $80M from DIFR(330) to Rehab(074) 2013-14 Article VII Legislation – Part B of the Education, Labor and Family Assistance (ELFA) Bill The residence hall program was restructured in the 2013-14 budget, with future debt issuances being removed from the State bond cap. The bill allows for $944M in bonding and will eliminate the need for future capital bonded appropriations, allowing the program to plan over multi-year periods. $330m ltd borrowed

Res Hall – Cash Flow Bonding From the 2008 Bond Sale forward Annual bond sale issued to provide cash for 12-15 months Bond sale $$ based on projections developed from the Capital Plan Pool of bond funds used by active projects as needed until funds are depleted Campuses don’t “own” portion of bonds Once all proceeds from a sale are disbursed, the debt service charged to each campus is revised to reflect actual bond proceeds disbursed

Res Hall – Project Funding Options Campus Hard Dollars Disbursements for Capital project funds should be made from 074 not operating 330 Follow State purchasing guidelines ** May be used to fund DASNY managed projects Revolving Loan See separate “Borrowing Options” sheet for details Bond Proceeds

Recent/Ongoing Activities 2017A Bond Refunding and New Money – April 2017 $150M in new money, expected to fund projects through Sept. ‘18 Refunding of $226m from 2008-2012 sales, resulted in a cash savings of $25m. No campuses debt was extended beyond its original maturity. Savings and new debt service from the sale have been added to the “Current Debt Service” Schedule in the 2017 Capital Plan. 2015B Bond Sale Status Update 2015 Bond Sale forecasted adjustments are included on the “Current Debt Service” tab in the 2017 Capital Plan. All proceeds should be fully disbursed in the fall of 2017 and actual debt service adjustments will be made in the 2018-19 fiscal year

Recent/Ongoing Activities – Cont’d 2017-18 T&F Certification – 6/1/17 Current debt service figures have been distributed to campuses and represent known debt service. We do not anticipate the need to recertify this year. Debt service figures that you received and are in the Cap Plan should be your final debt service requirement for this fiscal year. R&R and O&M Reserves have been set based on last years Capital Plans. Values are included in the 2017-18 FY in the Cash Flow sheet DASNY Fee has been calculated for 2017-18 based on data we received last week. Revolving Loan Program Updates Refinancing – to be completed by 6/30 Looking to increase us of this fund

Res Hall Program – Questions Next Capital Plan Request Capital Budget Request Process

Res Hall – Capital Plan Request Capital Plan Request – Spring 2017 Distributed to: business officers, physical plant administrators, & residence life personnel Completed plans are to be returned by June 23, 2017 Some worksheets have been modified slightly from what you have received in previous years. Changes outlined in subsequent slides

Res Hall Capital Plan – Changes “Part 1 - Last Years Cap Plan” No Change from previous years “Part 2 - Building Inventory” “Part 3 – DASNY Proj Budget Rpt” Listed are all active projects in DASNY’s system as of 3/31/17, this sheet was used to populate the cash flow values on “Part 4 LTD Cash Flow Bonding”

Res Hall Capital Plan – Changes “Part 4 – LTD Cash Flow Bonding“ This spreadsheet is used to indentify projects that require additional cash-flow bonding/debt service to be accounted for in “Part 8 – Total Debt Service”, if sheet is blank no action is required. Listed are all projects that have either a portion or the entire project budget allocated from cash flow bond sales (2008 and beyond). To be listed, one of the following scenarios are met: They are listed in DASNY’s system as of 3/31/2017 or; They were listed on last year’s capital plan in 2016-17 or 2017-18 and it is anticipated that the projects will utilize funds from the ’15 or ‘17 bond sale. Please review the results shown in the “Future Bonding to Account For” section. If it is decided that additional bonding is not required, please enter a (negative) value in the “Additional/(Cutback)” section of this sheet. This means the project is currently over funded and will need to be cutback.

Res Hall Capital Plan – Changes “Part 5 – Current Debt Service” This is based on data campuses received from SUNY Controllers Office. At the bottom of the sheet, in the 2018-19 FY, there are estimated adjustments to the 2015 sale based on our most current projections. The adjustment shown in 2018-19 is cumulative and covers 4 years worth of estimated adjustments (2015-16 through 2018-19) These new projected debt service amounts are linked to “Part 8 – Total Debt Service” Please note that until the 2015 sale is completely spent, the respective debt service will remain at the original amount by campus.

Res Hall Capital Plan – Changes “Part 6 - New Capital Plan” This serves the same purpose as it has in the past. It allows us to quantify the project dollars needed for both bonded and hard dollar work. The “Bonded” or “HD Cash” dollar values you enter should be the additional project budget needed to let contracts. Please do not list projects that already have their full budgets in DASNY’s financial system or those with full allocation in SFS. (please do not list cash-flow or disbursement projections) If a project is already partially funded, place that amount in the “CURRENTLY in DASNY's system or SFS” column and utilize the “Bonded” or “HD Cash” columns to reflect the balance of project budget needed to fully fund the project. Please note that the date section of this sheet is now shaded pink. All projects must have dates entered in this section or the plan will be returned. Project dates are critical, and are used to determine the timing and sizing of future bond sales. These dates are also used to help calculate the borrowing spread by year included on Part 7.

Res Hall Capital Plan – Changes “Part 7 – Borrowing Spread by Year” All debt service for projects entered on Part 6 is automatically calculated and spread across the corresponding future years. In order for this sheet to function correctly all dates must be populated on Part 7. Use this data to help populate future bonded borrowing on Part 8. “Part 8 - Total Debt Service” Options are listed as estimates of what it might cost to borrow certain amounts in future years. Please consult w/ Don Smith prior to choosing capitalized interest. Based on the timing of our most recent sale (4/2017), there will not be another bond offering in the 2017-18 FY. Any new borrowing should be entered in the 2018-19 FY or later. For new projects that you add to “Part 6”, or for amounts not accounted for in Part 4, please add the same amount in future bonding in 2018-19 and beyond. If you are not using Part 7 to assist in calculating the spread of future borrowing, please use the samples in the Capital Plan procedure for guidance.

Res Hall Capital Plan – Changes “Part 9 - Cash Flow” Please start by completing the projected values for 2016-17. This is then used as the starting point for future values linked via increase factors. The actual values for the O&M and R&R reserve have been populated for 2017-18 to reflect actual amounts being certified June 1 to T&F. Please note that the room rate increase factor has been changed to 0% for the entire 10 year plan. Please adjust accordingly to reflect realistic and attainable rate increases. All submitted plans must be solvent and reflect overall positive cash balances throughout the life of the plan. Any plans submitted in the “red” will be returned to be reworked.

Capital Plan – Questions Next Capital Planning Process

Capital Plan Reminders Project dates are critical Bed Count is significant Next one to two years are most critical … we need to size and time future bond sales Inform OCF of changes throughout the year Room Rate Escalation – reasonable and attainable Cash Balances – should be kept under control

Capital Plan Challenges Increased Scrutiny – enacted budget  Section 1. On or before June 30, 2018, the  president  of  the HESC shall report on options to make college more affordable for New York students and their families and shall issue such report to the governor, the temporary president of the senate,  the speaker of the assembly, the senate finance committee, the assembly ways and  means committee and the higher education committees of the legislature. Section 2. The report shall, at a minimum: (3) review student housing at the state university of New York and city university of New York which shall include a comparison of  student charges  and  facility  operational costs, as well as occupancy policies and requirements; (5) examine affordability initiatives at public and private colleges which may include but not be limited to textbook affordability, reducing the cost of student housing,  student transportation, reduction of administrative costs, and the creation of on-campus or community job opportunity for students; Information presented in the report will allow colleges to explore opportunities to implement college affordability options

Capital Planning – Upcoming Actions Late June - Plans are delivered to OCF for analysis OCF shares with DASNY for reasonableness OCF/Campus - follow-up with questions/issues Once we know which projects are planned, we develop an aggregate request for all campuses to be submitted to the appropriate parties in the Fall. Throughout the year … If changes occur, inform OCF

Final Questions