ACC Overview • ACC Public Community College District created in 1973. • Nine member elected Board of Trustees. • 36,000 Students in Fall 2008. • Seven Campuses & Two Service Buildings. • Taxing District AV $98 billion. • Annual Budget $198 million. • Tax Rate .09 M&O + .01 G.O. Debt Service.
ACC Facilities Master Plan Overview • Add space for 20,000 more students by 2025 • 10,000 at new campuses • 10,000 at existing campuses. • Land Banking for new campuses and existing campus expansions. • New Campus Construction. • Major Renovations at Existing Campuses. • Estimated Cost $600 to $800 million.
How to Finance the ACC Facilities Master Plan? • Campuses in newly annexed territories will be funded by the ACC District Public Facility Corporation (Created December 2007). • Existing District Campus Construction will be funded by: • Revenue Bonds; • General Obligation Bonds.
ACC Round Rock Campus • ACC Campus will have 10,000-12,000 students at full build out. • 85 acre “greenfield” site. • Shares location at Round Rock Higher Education Center with new: • Texas State University-San Marcos Campus • Texas A&M Medical Campus • Seton Medical Center • Full service campus will have nursing and other allied health program emphasis.
Round Rock Higher Education Center New ACC Campus
Financing Round Rock Campus(Opens Fall 2010) • Financing Requirements • Fast Track Construction upon Annexation into ACC District (Annexed May 2008). • Issued $118,980,000 Lease Revenue Bonds in August 2008 for Construction of Phase I. • Use the $12 million annually in new tax revenues from RR Annexation to fund Phase I of Campus Construction: • $8 million to PFC for Lease Payments (debt service) for Construction and FF&E; • $4 million for Operations.
ACC Public Facility Corporation • Created upon advice from ACC Financial Advisor. • ACC Board of Trustees are PFC Directors. • ACC staff provide admin support to PFC. • Directors meet as needed prior to regular ACC Board meetings. • ACC and Houston CC are the only Community Colleges in Texas using a PFC to date.
Benefits of Public Facility Corporation to ACC • Lease Revenue Bonds can be issued without a public referendum. • Preserves debt capacity for Revenue Bonds which will be used for other projects. • Maximum flexibility in which funding sources are used for lease payments (all sources). • Revenue Bonds have restrictions on how much tuition can be pledged for debt service – taxes cannot be pledged at all. • G.O. Bonds must have voter approval.
Pro’s and Con’s of PFC • Pro’s • PFC can be created quickly. • Control retained by ACC Board of Trustees. • Flexible in payment sources. • Reasonable cost of financing. • Con’s • Legal requirements more complex and costly. • More complex to administer.
Contact: Ben FerrellExecutive Vice President, Finance and Administrationbferrell@austincc.edu512-223-1099