Administration and Finance Joyce Hatch Vice Chancellor Administration and Finance August 2006 Proposed Facility Indicators Presentation to the Board of Trustees

2 Administration and Finance Proposed Facility Indicators UMA Funded Capital Plan by Source of Funds FY 06 to FY 11 Campus Funds External/ Fundraising UMBA/ HEFA StateTOTAL $110m$8m$522m$70m$710m 15%1%74%10%100% Source $ % total

3 Administration and Finance Proposed Facility Indicators Benefits of Facility Indicators 1.To track progress and changes in Deferred Maintenance (DM) 2.To monitor facility condition by type of use 3.To show relationship with financial indicators

4 Administration and Finance Proposed Facility Indicators A. Indicators to Measure the Level of Need Total Deferred Maintenance (DM) Cost: Includes deferred and other maintenance dollars needed to maintain current function of the campus. This is the amount needed to address the deferred maintenance backlog plus the code work that would be mandated to allow the campus to continue to use the space once the repairs were complete. DM Cost per square foot: The total deferred maintenance cost per square foot of space. The measure can be used to also quantify various components of the space such as housing and other auxiliary space or it can be used on a building by building basis. Proposed Facility Indicators

5 Administration and Finance Proposed Facility Indicators B. Indicator to Assess Financial Resource Capacity Equivalent Debt Burden: This ratio describes the borrowing resource that would be needed to correct the deferred maintenance needs. It measures the additional annual debt payment required to correct the DM problem as a percent of total campus expenses. As a frame of reference, credit analyzers such as Standard & Poor’s typically suggest that total debt burden should not exceed 10% of expenses.

6 Administration and Finance Proposed Facility Indicators Measure of Deferred Maintenance Financial Resource Capacity Sq. FtTotal $DM Remaining $DM/ Sq.Ft. Equivalent Additional Debt Burden A. Current: FY 06 Year End 9,410,000$1,577,700,000$168 $134 m/yr. or 19% of expenses 1. To Track Changes in Facilities Condition B. Projected: FY 08 Year End After Implementation of $710M 10,059,000$1,367,900,000$136 $116 m/yr. or 16% of expenses (total 22.4%)

7 Administration and Finance Proposed Facility Indicators 2. To monitor facility condition by type of use Sq. Ft. $DM Includes pro-rated cost of utilities and roadways $DM/ Sq.Ft. Housing, dining3,935, ,992, Recreation, Athletics (SU/CC) 1,249, ,396, Administrative870, ,969, Academic Offices & Classrooms 2,100, ,544, Lab Buildings Teaching & Research 1,905, ,996, Total10,059,000 $1,367,900,000 $136 B. Projected: FY 08 Year End After Implementation of $710M

8 Administration and Finance Proposed Facility Indicators Measures A. FY 06 Anticipated B. FY 08 Projected after $710 m plan $ DM Remaining $1,577,700,000 $1,367,900,000 $DM/ sq. ft $168$136 Financial cushion 15.3%10.0% Debt Service Ratio 4.4%6.4% 3. To Show Relationship with Financial Indicators C. FY 08 Projected with additional $325m $ 1,042,900,000 Improves $101 Improves 6.5% Worsens 10.0% Worsens FACILITY FINANCIAL