1. State University of New York Residence Hall Program
Capital Plan Request – Spring 2018

2. Agenda Res Hall Capital Program Review of AiM Data Sheets
Appropriation & Article VII Legislation
Project Funding Options
Cash Flow Bonding
Update on Recent/Upcoming activities
Questions ?
Review of AiM Data Sheets
What is AiM?
How does this data impact the capital plan
Capital Plan Request
Overview of Worksheets
Changes to 2018 Request
Capital Plan Reminders / Events
Capital Plan and future bond sale.
Questions?

3. 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 $50M requested for
Annual Transfer Limits – $80M from DIFR(330) to Rehab(074)
Article VII Legislation – Part B of the Education, Labor and Family Assistance (ELFA) Bill
The residence hall program was restructured in the 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.

4. Res Hall – Cash Flow Bonding
From the 2008 Bond Sale forward
Annual bond sale issued to provide cash for 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

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

6. Recent/Ongoing Activities
2015B Bond Sale Status Update
Final adjustment to the 2015B sale have been completed and are included in the schedules distributed by the SUNY controller’s office as well as in the capital plan
2017A Bond Refunding and New Money – April 2017
$150M in new money, expected to fund projects through Sept. ’18
30 Year Interest Rate – 3.75%, 15 Year Interest Rate 2.65%
Refunding of $226m from sales, resulted in a cash savings of $25m
2018 Bond Sale Update
The next bond sale is scheduled for later summer/fall of This sale will include projects submitted in the capital plan and will cover anticipated spending through early 2020

7. Recent/Ongoing Activities – Cont’d
T&F Certification – 6/1/18
Current debt service figures have been distributed to campuses and represent known debt service.
We will need to recertify after the final figures are received from the upcoming 2018 bond sale. Debt service figures that you received and are in the Cap Plan do not include this borrowing and this will be incorporated into Part 8 of the cap plan.
R&R and O&M Reserves have been set based on the actual operating disbursements along with the hard $ spending requested in last year’s Capital Plans. Values are included in the FY in Part 9
DASNY Fee information for has not yet been received

8. Recent/Ongoing Activities – Cont’d
Revolving Loan Program Updates
Refinancing – all loans issued prior to 2015 have been refinanced from 5.5% to 3.0%
$98.5M refinanced, resulted in a total savings of $12.1M… campuses received savings from this effort
Additional capacity still available with-in the program
Any borrowing that can be converted to rev loan from DASNY bond will have positive impact on campuses ABT (debt service coverage ratio)

9. Res Hall Program – Questions
Next
Overview of AiM residence hall assets
Capital Plan Request

10. AiM – What is it?
The AssetWORKS system, known as AiM, is a new building management system installed in 2017
Replaced a number of older outdated systems (BCI, PSI)
Contains the following modules:
Property, Space, Planning and Needs Analysis, and Operations and Maintenance
PNA - Provides SUNY and the Fund with life cycle modeling and asset management modules capable of real-time updates.
Allows the university system and campus facilities managers to be able to obtain up-to-date estimates of deferred maintenance backlog and future renewal needs.
Provides greater credibility for the system with outside entities such as the Division of Budget, when the information is used to support future capital requests.  

11. Res Hall – AiM Asset Data
Collected in 2017 via assessment conducted by SUCF Program Managers working with campus staff
Each facility evaluated at the Asset Group level
Predetermined set of building systems and major components
Remaining useful life assigned to each asset
“Adjusted Renewal Cost” calculated by asset (see next slide)
Distributed to campuses in February 2018
Can be used to assist in the capital planning process
Data presented in several views to help with project prioritization

12. AiM - Adjusted Renewal Cost

13. Total Renewal Needs – by year

14. 10 Yr Renewal Needs – by Asset Type

15. 10 Yr Renewal Needs – by Building

16. 10 Yr Renewal Needs – by Building/Asset

17. AiM Asset Data – keeping current
Working with SUCF on developing a process to keep data updated
Annual data audits will be performed and set up so that all buildings are reviewed every 4 years
Working with DASNY to develop a process to capture updates as renovation projects are completed
Will be working with campus facility staff to identify campus let projects that have impacted building assets and making necessary updates

18. Res Hall – Capital Plan Request
Capital Plan Request – Spring 2018
Distributed to: business officers, physical plant administrators, & residence life personnel
Completed plans are to be returned by May 16, 2018
Some worksheets have been modified slightly from what you have received in previous years.
Changes outlined in subsequent slides

19. 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 1/31/18, this sheet was used to populate the cash flow values on “Part 4 LTD Cash Flow Bonding”

20. 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 1/31/2018 or;
They were listed on last year’s capital plan in or and it is anticipated that the projects will utilize funds from the 2017 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.

21. Res Hall Capital Plan – Changes
“Part 5 – Current Debt Service”
This is based on data campuses received from SUNY Controllers Office. It includes:
Actual adjustment from the 2015B sale
SUNY Revolving Loan debt service after refinancing
Estimated adjustment to the 2017A sale debt service
At the bottom of the sheet, in the FY, there are estimated adjustments to the 2017 sale based on our most current projections.
The adjustment shown in FY is cumulative and covers 3 years worth of estimated adjustments ( through )
These new projected debt service amounts are linked to “Part 8 – Total Debt Service”
Please note that until the 2017 sale is completely spent, the respective debt service will remain at the original amount by campus.

22. 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.

23. 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.
Additional borrowing identified on Part 4 is carried over to the bottom of this sheet
This data is automatically carried over to future borrowing on Part 8.
“Part 8 - Total Debt Service”
Options are listed as estimates of what the cost of borrowing will be in future years.
We will have a sale in the summer/fall of 2018 so any new borrowing should show in FY.
For new projects that you add to “Part 6”, or for amounts not accounted for in Part 4, the value of future borrowing is shown in and beyond in either the bonded or revolving loan fields.

24. Res Hall Capital Plan – Changes
“Part 9 - Cash Flow”
Please start by completing the projected values for 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 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.

25. Capital Plan – Questions
Next
Capital Planning Process

26. Capital Plan Reminders
Project dates are critical
Bed Count is very important
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

27. 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

28. Capital Planning – Upcoming Actions
Mid May - Plans are delivered to OCF for analysis
OCF shares with DASNY for reasonableness
OCF/Campus - follow-up with questions/issues.
Early summer – project list for upcoming bond sale is developed and shared with campuses
Throughout the year … If changes occur, inform OCF

29. Final Questions