January 17-18, 2002
ITEM 114-2001-R0102 Authorization to Remove Auxiliary Units from Revenues Pledged to Repayment of Bonds to be used for Other University Purposes; Montana State University-Bozeman
THAT: The Board of Regents of Higher Education authorizes Montana State University-Bozeman to remove six residential units previously pledged to the University revenue bond indenture for the University to use for other university purposes.
EXPLANATION: Montana State University-Bozeman will remove six residential units, the income from which were pledged to repayment of bonds, from the jurisdiction of Auxiliaries. The units generated income in the amount of $41,365 last year. The units may be removed from the Revenue stream without affecting the bond repayment because there are sufficient funds available for Pledged Revenue without these units.
These units are being transferred to the management of the university for use in the future as incremental surge space to accommodate university researchers in a “Research Court.”
Operations and maintenance costs related to the units, previously funded by the Auxiliary enterprise as a part of the Pledged Bond Revenue stream, will now be funded by non-appropriated Grants & Contracts funding awarded to occupants of the building.