March 25-26, 2004
ITEM 122-1015-R0304 Authorization to Proceed, Series I 2004 Refunding and Facilities Improvement Revenue Bonds - The University of Montana-Missoula
THAT: The Board of Regents of the Montana University System adopts the Bond Resolution for the Series I 2004 Refunding and Facility Improvement Revenue Bonds for The University of Montana, and authorizes the Office of the Commissioner of Higher Education and The University of Montana to proceed with the Series I 2004 Revenue Bonds.
The University of Montana-Missoula
Refunding Series A 1993 Revenue Bonds $32,200,000
School of Pharmacy “Skaggs” Building Expansion $ 7,000,000
Bond Proceeds $ 7,000,000
NIH Grant 3,000,000
Private Donations 4,000,000
Total Project $14,000,000
Capitalized Interest During Construction $ 1,080,000
Deferred Maintenance $ 1,500,000
Savings from the refunding will provide a projected additional $1.5 million (total $3.0 million) for deferred maintenance on campus.
Estimated Annual Debt Service for New Money Issue*
Indirect Cost Recoveries $410,000
General Fund 90,000
Total Annual Debt Service $500,000
* In FY2025, UM’s total annual debt service declines by over $8.0 million allowing the University to make a balloon payment on the Series I Bonds, reducing total outstanding principal by $5.9 million.
EXPLANATION: The authorization to The University of Montana to proceed with the issuance of the Series I 2004 Revenue Bonds is subject to final approval by the University and the Commissioner of Higher Education of the Montana University System. The action also authorizes the Chair of the Board of Regents, the Vice Chair of the Board of Regents, the Commissioner of Higher Education, the President of The University of Montana, and the Vice President for Administration and Finance of the University of Montana-Missoula to execute such documents as may be required to consummate the issuance of the Series I 2004 Revenue Bonds.
ATTACHMENTS: Series I 2004 Revenue Bonds Support Document and Series I 2004 Revenue Bonds Resolution