1 Attachment A Austin Community College District Debt Status and Financial Options January 14, 2002

2 Goals Provide cash flow relief and additional operational flexibility. Provide funding for property acquisition and development. Achieve Board Reserves policy target. Not to impede the flow of funds available for operations and maintenance. Fund incremental debt with incremental revenue. Preserve District’s credit quality.

3 Opportunity to Refund Certain Series 1992: Maturities ,0005.6% ,0005.7% 20051,510,0005.8% 20061,330,0005.9% Provides cash flow relief in light of potential valuation fluctuation. Enhances cash flows until such time as tax rate limitation may be addressed. Refunding will achieve Board Reserves policy target by FY 2006.

4 Existing Debt Status

Pledged Revenue Analysis $8 of $11 Building Use Fee$4,111,961 Tuition Pledge963,795 Investment Income1,523,527 Total$6,599,283 Less: Debt Service4,622,401 Excess Pledged Revenue 1 $1,976,882 1 These revenues available for use in operation and maintenance, and are currently being used as such.

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7 Existing Debt Service

8 District Facilities/Debt Financed 1984$ 4,800,000Riverside Land/Renovations 1986$ 8,500,000Northridge Land Northridge Phase I Riverside Renovation 1990$ 8,300,000Cypress Creek Construction Refund $ 4,500,000Northridge Phase II 1992$ 7,265,000Refund $13,250,000Eastview Campus $ 1,000,000Highland Business Center Renovation 2000$20,900,000New Construction $ 4,800,000Service Center/Warehouse

9 District Facilities/Cash Acquisition Rio Grande Campus 20-year lease amortizedFY 92$ 5,000,000 PinnaclePurchaseFY 91 2,800,000 BuildoutFY ,000,000 District Administrative Office PurchaseFY 93 4,800,000 Fiber OpticsFY ,000,000 ADA ComplianceFY ,000 Riverside Phase IIFY ,200,000 Renewal & Replacement FundFY 96 1,361,000 Total$23,661,000

10 Tax Collections by Year Based on September Year-end Reports

11 New Properties on Tax Roll by Year

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13 Financial Options Available Existing Debt Structure Options (Option 1) –Refund existing debt to provide cash flow relief using Capital Appreciation Bonds (CABs). Option provides $5.2 million in cash flow relief over a five- year period. Represents actual present value cost to the District. –Achieves Board policy target by FY 2006 under existing 15% language.

14 Option 1

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16 Quantitative Analysis Option 2 – CAB refunding and $5.8 million with $1 fee increase. –Refund existing debt to provide cash flow relief using Capital Appreciation Bonds (CABs). Provides $5.2 million in cash flow relief over five-year period. –Provides $5.8 million in new bond money ($5.0 million net proceeds) for purchase of South Austin Campus property, facilities retrofit for Riverside, and purchase of property for additional parking spaces at PIN. –Achieves Board policy target by FY 2006 under existing 15% language.

17 Option 2

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19 Facilities Improvement Plan Projected Excess Revenues

20 Financial Options Available Sale of Riverside Golf Course (Option 3) –Net Proceeds estimate - $4.5 million. –Accelerated approach to achieve Board Reserves policy target by FY 2002 (or FY 2003 depending on date of sale) under existing 15% language.

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22 The Bond Buyer GO Index Since January 2000 Percentage (%) Market rates as of October 25, 2001