Legislative Update No. 11
REBUILDING, RENEWING AND ENHANCING
THE UNIVERSITY OF CONNECTICUT
Table of Contents
I. UCONN 2000: THE UPDATE
II. ACTIVITIES COMPLETED OR UNDERWAY:
IV. CURRENT PROJECT STATUS – PHASE I(as of October 2000)
V. CURRENT PROJECT STATUS – PHASE II (as of October 2000)
VI. CURRENT PROJECTS FUND SOURCES: PHASE I (as of October 2000)
VII. CURRENT PROJECTS FUND SOURCES: PHASE II (as of October 2000)
UCONN 2000: THE UPDATE
This is the eleventh in a series of semi-annual reports to the Governor and the General Assembly pursuant to the provisions of Sections 10a-109 through 10a-109y of the Connecticut General Statutes, originally An Act to Enhance the Infrastructure of the University of Connecticut, and now known as UCONN 2000. These reports have been issued each October and April since the passage of UCONN 2000 on June 7, 1995. The law also required a four-year progress report, which was filed on January 15, 1999. The standard reporting structure of the previous reports is again utilized in this report.
“Incoming Class Poised for Greatness!” reads the headline from the opening fall semester issue of the University of Connecticut Advance. More and more top students are making UConn their school of choice. Thirty-four high school valedictorians are among the freshmen arriving at the University this fall, up from twenty-six last fall. This growth in academic quality (freshman SAT scores are up 28 points from Fall 1997 to 1140) is accompanied by overall expansion in the freshmen class. Since 1997, freshmen enrollment has grown 29 percent and minority freshmen enrollment has grown 51 percent.
As a result, the University made a conscious decision this fall to limit the number of students admitted to Storrs to ensure there was enough housing and there were enough classes to accommodate students who were admitted to the main campus. Not limited by available student housing, enrollment growth at the regional campuses increased. This resulted in freshmen enrollment increasing 7.8 percent at the regional campuses.
In response to housing capacity challenges in Storrs, the University has developed a range of solutions for both undergraduate and graduate students. Undergraduates will benefit from revitalized/modernized facilities, a spectrum of housing options ranging from traditional residence halls to on-campus apartment living for upper-class students. The ground has been cleared for construction of the apartment complex in the southeast corner of campus for upper classmen and graduate students. A new Greek Housing Community is in the planning stages, as well. A new dining facility has been erected in Northwest campus in addition to the complete renovation of the 1,000 bed residential facilities in the Northwest complex. Plans are in place to open a new dormitory on the Hilltop section of campus during FY 2002. By Fall 2001, the University expects to accommodate approximately 1,300 new students in new residential facilities.
“Build it, and they will come,” is an appropriate phrase for UCONN 2000. With the capital dollars and management flexibility provided this program, the University has added and renovated academic, residential, programmatic, and operations facilities. This, coupled with effective recruitment efforts, has made the University of Connecticut increasingly the “School of Choice.”
UCONN 2000: ACTIVITIES COMPLETED OR UNDERWAY
PLANNING, DESIGN AND MANAGEMENT
- The Board of Trustees at its April 11, 2000 meeting approved the FY 2000-01 Capital Budget. The list of projects included and their budget is listed below:
Project Budget Beach Hall Renovation $ 500,000 Deferred Maintenance Renovation Lumpsum GF 20,000,000 Equipment Replacement/Upgrade 20,000,000 Gentry Renovations 500,000 Hilltop Dorm Improvements 700,000 Mansfield Training School Improvements 1,500,000 Monteith Renovations 5,300,000 North Campus Renovations 5,000,000 School of Pharmacy/Biology 29,000,000 School of Business-Renovation Existing 12,000,000 Student Union Addition 5,000,000 Towers Renovation 500,000 Total $100,000,000
The Board also approved the Second Supplemental Indenture authorizing $90,000,000 of University of Connecticut Special Obligation Student Fee Revenue Bonds 2000 Series (A & B) and revised the UCONN 2000 projects to include the Hilltop Student Rental Apartments.
At its May 8, 2000 meeting the Board approved the Sixth Supplemental Indenture Issuance that covered the general obligation projects. The Board also approved the following budgets for the projects included in the revenue bonds:
Project Budget South Parking Garage $24,000,000 New Hilltop Dormitory $21,000,000 Hilltop Student Rental Apartments $42,000,000
- Program development activities have been completed for renovations at the School of Law that will provide for the phased renovations of facilities including the old Library Building. The architect for this project is Allan Dehar Associates of New Haven.
- Schematic design activities are underway for renovations to the current School of Business building. The purpose of this project is to turn the old facility into a new Learning Center that will provide academic support for students as well as instructiona l support for faculty members and graduate students. Functions included in the facility will be the First Year Experience program (special seminars and activities for incoming freshmen), Career Services, the Institute for Teaching & Learning, Study Abroad, Urban Semester, the Center for Community Outreach, Instructional Research Center, Honors Program, and the Learning Research Center. The architect for the project is Svigals Associates of New Haven.
- Construction documents are being prepared for the Student Union project which will include major renovations and additions to the current facility. The primary goal is to expand the range and quality of activities available to students in the campus core. Included in the project will be a food court, 500-seat theatre, meeting space, ballroom and a central post office for all student mail. This facility will also provide new space for each of the campus’ cultural centers. Implementation of the project will be phased over several years. The architects for the project are Cannon Associates of Boston.
- As part of the overall building and renovation program, the University of Connecticut continues the process of standardizing building systems and system components (such as electrical circuitry, panel boxes, etc.). This standardization process will reduce the number of replacement parts the University needs to inventory, speed repairs, improve the level of maintenance and lower overall costs.
- Design development drawings are under review for the new School of Pharmacy/Biology building. The project involves the construction of a 120,000 square foot building for teaching and research for Pharmacy and the creation of a 55,000 square foot building of research space for Biology. The architect for the project is Davis, Brody Bond of New York City.
- Design development is underway for the Technology Quad Phase II project. This project involves the construction of a new building for the School of Engineering’s Information Technology program. This facility, which is projected to be approximately 94,000 gross square feet, will include offices, classrooms, research labs, and a 350-seat lecture hall. The architect for the project is Burt Hill Kosar Rittlemann of Washington, DC.
- Renovations to the Neag School of Education’s Gentry building are currently being reviewed. This project includes a complete renovation of the building’s interior along with exterior improvements of the faade and roof, and may include an addition to the building. Architects for the project are Svigals Associates of New Haven.
- Schematic design activities are underway for an addition to the Benton Museum. This $1,500,000 project is funded through a combination of UCONN 2000 funds ($700,000) and private gifts. Architects for the project are Gregg & Weiss of New Haven.
- Design development activities are underway for the Waterbury Downtown campus project. This project, funded by State General Obligation bonds, will involve the relocation of the Waterbury Regional campus from the present Hillside location to East Main Street. The existing academic programs, along with additional Bachelor of Business and MBA programs, will be offered in the new facilities. The architect for the project is Jeter Cook & Jepson of Hartford. Although not part of UCONN 2000 funding, the project will be managed by the University with the authority granted by UCONN 2000.
- The Architectural and Engineering Services Home Page on the World Wide Web continues to be very successful in providing information to interested parties. The site has been visited over 21,048 times since its introduction in October 1996.
- Construction activities are underway for the Waring Building renovation. Plans for the building include the creation of additional classrooms as well as offices for the College of Liberal Arts and Sciences, the English Department, and the Geography Department. Occupancy of the building is scheduled for June 2001. The contractor for the project is Haynes Construction of Seymour.
- Occupancy of the University’s new Visitors Center took place on September 18, 2000. This project, funded through a generous gift from alumni Philip and Christine Lodewick, includes a center for visitor tours and information about the University and events. The construction manager for the project was BB&E of Bloomfield.
- Installation of new exterior signage has begun on the Storrs and Health Center campuses. The purpose of the program is to incorporate signage that will provide a unified look and better directional information to visitors at all of the University’s campuses.
- Construction is complete on the Central Warehouse project. The project team is Konover Construction of West Hartford and Kagan Architects of New Haven. This 85,000 square foot facility will include purchasing, central warehouse and accounts payable functions, mail services, printing services, parking and transportation services, and program space for the campus police. The facility is located in the R-Lot as part of the University’s plan to move support services to the perimeter of campus.
- Construction activity is continuing on the Avery Point Marine Sciences project. This project includes a new 116,000 square foot research building, a 30,000 square foot Project Oceanology building, and a new central chilled water plant. The Project Oceanology building was occupied on June 2000. The Marine Sciences Center will be completed in February 2001. The contractor on the project is C.R. Klewin of Norwich.
- Construction is underway on the Litchfield Agricultural Center project. The contractor for the project is Hayes Construction of Shelton. Funding for the project includes UCONN 2000 funds and a grant from the Litchfield Agricultural Center. It is anticipated that construction will be completed in November 2000.
- Bids were received for the complete renovation of the Wilbur Cross building. This project will provide an opportunity to locate all of the business functions relating to student services in one central, customer-friendly location. These functions include dining services, residential life, financial aid, bursar, registrar, and services to students with disabilities. The contractor for the project is Aspinet Construction of Avon. Construction activities will be completed in three phases with the first phase completion scheduled for June 2001.
- Construction documents are being prepared for the renovations to the Horticultural Storage building, which will be the new location of the Natural History Museum. The museum is undertaking fund raising activities to supplement UCONN 2000 funds. The contractor for the project is MCC of Tolland.
- Construction activities are underway for the Gant Plaza Deck repair project. The project will include the construction of a 14,000 square foot building on the deck for the Institute of Material Sciences and installation of a new deck waterproofing system. The construction manager for the project is Whiting-Turner of Shelton. The project is scheduled for completion in June 2001.
- As part of the University’s commitment to safety and security, by the start of the Fall 2000 semester, all sleeping rooms had self-closers on the doors and all residence halls had alarm and smoke detection systems in place. Coupled with an aggressive fire safety education program and practice drills, these facility upgrades represent an important milestone in the effort to build a protective environment. The program also includes the installation of sprinklers in all residence halls by the completion of UCONN 2000. The installation of sprinklers at the North Campus dormitory was completed for the Fall 2000 semester.
- Construction has begun on a hotel located on the Storrs campus. This facility is being constructed under a land-lease agreement with the University. The facility will be built next to the Lewis B. Rome Commons building at South Campus to take advantage of its conferencing and catering capacity in conjunction with the hotel. The partnership for the project is Robert Freidman (hotel developer and owner of the Norwich Navigators) along with the Maristar Group, which manages hotels worldwide, including many university hotel facilities such as the Princeton Forestal. It is anticipated that the construction will be complete in May 2001. The contractor for the project is G. Schnip Construction of Norwich.
- Manafort Brothers of New Britain has been selected for the construction of a second parking garage to be located next to the Gampel Pavilion. Funding for the project will come from parking fee revenue. The facility will contain 1,547 parking spaces and 53,000 gross square feet of retail space for the UConn Co-op. The garage portion of the project will be completed in May 2001 and the Co-op space August 2001.
- Konover Construction of West Hartford has been selected for the construction of additional dormitories at the Hilltop complex. The project will create 450 beds for students in suite style rooms. Financing for the project is secured by special revenue bonds to be repaid through room-and-board fees. With enrollments increasing these additional beds will help avoid overcrowding. The project schedule will have 248 beds ready in August 2001 with the remaining 202 beds available in January 2002.
- Construction is underway for the Hilltop Student Apartments. This project will accommodate 972 students. Part of the Hilltop residential neighborhood, the project is on Alumni Drive, immediately south of the Hilltop Dorms. The apartments will be rented to University students only; tenants will be subject to the University’s code of conduct. The design-build firm for the project is Capstone Development of Mobile, Alabama, an organization, which has successfully built similar projects in a number of other states. The complex is scheduled for completion by August 2001.
- Construction is underway for the development of a Community Center facility at the School of Social Work on the West Hartford campus. This project is funded through the generosity of Henry and Judith Zachs, a UConn alumnus. The relocated computer center will go into a new freestanding building on the West Hartford campus. The contractor for the project is Enfield Builders. The project is scheduled for completion July 2001.
- The renovation of the Northwest Quad residence halls was completed on schedule for the Fall 2000 semester. The construction manager for the project was Whiting-Turner of Baltimore, Maryland. The project included a new central dining facility for the complex, which will eliminate the small kitchens that currently exist in each of the seven buildings. This change will significantly reduce operating costs for dining services while freeing up additional program support space in each building. The dorm rooms will be renovated and brought up to building code, including the installation of sprinklers. This dormitory complex provides housing for freshmen.
- Construction is underway on the new School of Business project. The contractor for the project is FIP Construction of Cheshire. The project’s funding will be augmented with $4.5 million to be raised from private donations. It is anticipated the project will be completed in June 2001.
- Construction is underway for a utility tunnel that will connect central campus buildings to the central utility plant. Inside the tunnel will be the following services: Steam, Sprinkler Main, Emergency Power, Chilled Water, Domestic Water, and Tele-Data Systems. This project is scheduled for completion in December 2000. The contractor for the project is Allstate Boilers of Farmington.
- Turner Construction of Shelton has been selected to complete the construction of the Biological Sciences project. They are in the process of determining the cost for the project in conjunction with the bonding company. After repeated discussions, notifications and warnings, the original contractor for the Biological Sciences project was terminated by the University on February 4, 2000. The grounds for this termination included:
- Unqualified general contractor staffing
- Removal of key personnel
- Unauthorized substitutions
- Subcontractor mismanagement
- Schedule-failure to comply with contact requirements
- Failure to prosecute the work
- Subcontractor payment irregularities
- Inadequate staffing/manning
- Change order processing failures
- Disregard for University property
- Refusal/delay in allowing document review
- Failure to timely provide general conditions documents
- Inadequate quality control
- Inadequate safety supervision
The University is working with Liberty Mutual, the Surety that holds the payment and performance bond to complete the project. On April 10, 2000, Liberty Mutual informed the University that it is committed to discharging its performance bond obligations in connection with the project.
- All Phase Enterprises of Stafford Springs has been selected the design-build firm for the construction of an Agricultural Arena. This facility will contain a polo arena to replace the current outdoor facility. The majority of funds for this project are coming from private donations. Construction of this project is scheduled to be complete in Spring 2001.
- PDS Construction of Bloomfield, Connecticut has been selected for the construction of the Precision Manufacturing Facility. The majority of funding for this project is through a $2,000,000 grant from the Economic Development Agency. The project will be complete in September 2001.
- University General Obligation Debt Service Commitment Bonding AuthoritySection 10a-109 of the Connecticut General Statutes empowers the University to issue General Obligation Bonds secured by the State’s Debt Service Commitment (sometimes referred to as “Debt Service Commitment Bonds”). The Debt Service Commitment Bonds are issued pursuant to the General Obligation Master Indenture of Trust, dated as of November 1, 1995, between the University of Connecticut, as Issuer, and, Fleet National Bank of Connecticut, as Trustee (now State Street Bank & Trust). The Master Indenture of Trust was approved by the University’s Board of Trustees on November 10, 1995, and the State Bond Commission on December 21, 1995. The University’s Board of Trustees and the Office of the Governor approve the subsequent Supplemental Indentures for each bond issue. The University and the Office of the State Treasurer manage the Debt Service Commitment Bond sale process. The State Treasurer disburses the cost of issuance out of the proceeds of the Debt Service Commitment Bond issues.
- Overview of University General Obligation Bond ProgramConnecticut General Statutes Sections 10a-109 through 10a-109y lists $1,250,000,000 of UCONN 2000 Projects of which $962,000,000 may receive authorization to be financed with the University’s General Obligation Bonds secured by the State’s Debt Service Commitment, plus costs of issuance. Additionally, the amount of Debt Service Commitment bonds that may be authorized by the Board of Trustees is capped by the fiscal year allocations contained in the Statute.As of the date of this legislative report, the University has issued Debt Service Commitment bonds with a face value of $518,427,146. 50, of which $512,000,000 was for UCONN 2000 Projects with the difference representing costs of issuance. The balance of $450,000,000 of Debt Service Commitment Bonds remains to be issued. As of July 1, 2000 the University’s Board of Trustees and the Office of the Governor authorized for issuance all of the Statute’s Fiscal Year 2001 $100,000,000 allocation.
- University General Obligation Debt Service Commitment Bond IssuesOn February 21, 1996, the University, in conjunction with the Office of the State Treasurer, issued $83,929,714.85 of “The University of Connecticut General Obligation Bonds 1996 Series A,” the first series of bonds secured by the State’s Debt Service Commitment.On April 24, 1997, “The University of Connecticut General Obligation Bonds 1997 Series A,” the second series of bonds secured by the State’s Debt Service Commitment, was issued in the amount of $124,392,431.65.On June 24, 1998, the third series of bonds, “The University of Connecticut General Obligation Bonds 1998 Series A,” was issued in the amount of $99,520,000.On April 8, 1999, the Phase I Debt Service Commitment Bond financings were completed with the issuance of $79,735,000 of “The University of Connecticut General Obligation Bonds 1999 Series A.” The four series of Phase I bonds totaled $387,577,146.50 in face value of which $382,000,000 was for UCONN 2000 projects. The balance, together with accrued interest, funded the cost of issuance through the Office of the Treasurer.
On March 29, 2000, the University, in conjunction with the Office of the State Treasurer, issued $130,850,000 of “The University of Connecticut General Obligation Bonds 2000 Series A.” This was the fifth series of bonds issued in the UCONN 2000 program.
- Credit Rating Upgrade – University’s Debt Service Commitment BondsDuring the process of issuance for the UCONN General Obligation Debt Service Commitment 2000-A Bond Issue, the University the Debt Service Commitment 2000-A Bond Issue, working together with the State Treasurer’s Office, was able to achieve an upgrade to “Aa3” from “A-1” for the State’s Debt Service Commitment Bonds. The capital markets thus recognized the tangible benefits to the State’s economy of meeting the infrastructure and educational goals contained in the UCONN 2000 program, as well as the University’s success in implementing them. As of September 2000, the UCONN 2000 Debt Service Commitment bonds were rated “AA” by Standard & Poor’s; “Aa3” by Moody’s Investors Service; and “AA-” by Fitch Investors Service. Additionally, certain maturities of the bonds were insured with “AAA” rated municipal bond insurance at issuance.
- Trustee-Held Construction FundPrior to June 1998, all of the Debt Service Commitment Bond proceeds were treated as State General Obligation Bond proceeds and were deposited with the Office of the State Treasurer, and disbursed through the Office of the State Comptroller. Subsequently, the Office of the Attorney General advised that the UCONN 2000 bonds are issued by the University, and should be treated as distinct from State General Obligation bonds. Accordingly, upon the advice of bond counsel and in order to conform to the Master Indenture of Trust, the Debt Service Commitment Bond construction fund proceeds are now deposited to the Trustee Bank and disbursed from that account. The bond proceeds for cost of issuance are still deposited with, and disbursed by, the Office of the State Treasurer.The Indenture of Trust provides that the University is authorized and directed to order each disbursement from the Construction Account held by the Trustee upon a certification filed with the Treasurer and the Trustee. The Indenture provides that such certification shall be signed by an Authorized Officer of the University, and that it provides certain disbursement information. Once the Authorized Officer certification filings are made, the University can directly disburse the payments.The University has directed the Trustee Bank to invest the Debt Service Commitment construction fund proceeds in the State Treasurer’s Short Term Investment Fund, which is “AAAm” rated by Standard & Poor’s Investor’s Service, and offers daily liquidity and historically attractive risk-adjusted yields.
- University Special Obligation Revenue Bonds Secured by Pledged Revenues Bonding AuthorityUCONN 2000, as codified in Connecticut General Statutes Section10a-109 through 10a-109y, also authorizes the University to issue Special Obligation Revenue bonds. Unlike the Debt Service Commitment Bonds, which are paid for out of the State’s General Fund, the Special Obligation Bonds are paid for out of certain, pledged revenues of the University as defined in the particular bond series indenture.Two Student Fee Revenue Bond issues have been made pursuant to the Special Obligation Indenture of Trust, dated as of January 1, 1997, between the University of Connecticut as Issuer and State Street Bank & Trust as Trustee (“Special Obligation Master Indenture”) and respective Supplemental Indentures as approved by the University’s Board of Trustees and the Office of the Governor.The legislation provides that a Special Capital Reserve Fund may be established for University Special Obligation Bond issues only if the Board of Trustees of the University determines that the Special Obligation Bond issue is self-sufficient as defined in Connecticut General Statutes Section 10a-109 through 10a-109y the act. The self-sufficiency finding by the University must be submitted to and confirmed as not unreasonable or arbitrary by the Treasurer of the State, prior to issuance of the bonds. Once approved, the Special Capital Reserve Fund is funded at issuance by the University to meet the minimum capital reserve requirement. However, subject to notification by the University on or before December 1 annually, if this amount falls below the required minimum capital reserve, there is deemed to be appropriated from the state General Fund the sums necessary to restore each such Special Capital Reserve Fund to the required minimum capital reserve.
- University Special Obligation Bond IssuesOn February 4, 1998, the University issued $33,560,000 of the University of Connecticut Student Fee Revenue Bonds 1998 Series A pursuant to the Special Obligation Master Indenture, and the Special Obligation Student Fee Revenue Bonds First Supplemental Indenture, both dated as of January 1, 1997. The First Supplemental Indenture authorized the issuance of bonds up to a principal amount not exceeding $30,000,000 for construction of the South Campus Residence and Dining Hall, plus the amounts necessary to fund a Special Capital Reserve Fund (“SCRF”), and to provide for costs of issuance. The bonds have a final maturity of November 15, 2027.The University managed the issuance and sale of the UCONN 2000 Student Fee Revenue Bonds 1998 Series A, and realized a favorable true interest cost over the twenty-nine year term. Debt service for the Student Fee Revenue Bond 1998 Series A ‘s debt service is paid from Pledged Revenues, including the Infrastructure Maintenance Fee, as further defined in the Special Obligation Master Indenture. This fee is paid by students and was instituted in 1997 to provide for such debt service and to help support future operation and maintenance costs for facilities built or expanded by virtue of UCONN 2000.The University has invested the bond proceeds in the State Treasurer’s Short Term Investment Fund, and, in regard to the Special Capital Reserve Fund, also in “AAA” rated fixed income Investment Obligations as defined in the Special Obligation Indenture of Trust. The State SCRF enhancement allowed the bonds to obtain a “AA-” rating from Standard & Poor’s with a positive outlook, a “AA-” rating from Fitch Investors Service, and an “A-1” rating from Moody’s Investors Service. The bonds were subsequently covered by municipal bond insurance and upgraded to a “AAA” rating category at Fitch and Standard Poor’s and “Aaa” at Moody’s Investors Service. During October 1998, Standard & Poor’s upgraded the SCRF bond ratings to “AA” with a stable outlook.On June 1, 2000, the University issued $89,570,000 of the University of Connecticut Student Fee Revenue Bonds 2000 Series A pursuant to the Special Obligation Master Indenture and the Special Obligation Student Fee Revenue Bonds Second Supplemental Indenture, dated as of May 1, 2000. The Second Supplemental Indenture authorized the issuance of bonds up to a principal amount not exceeding $90,000,000 for construction of the Hilltop Dormitory; Hilltop Student Rental Apartments; and the Parking Garage South Projects and to provide for capitalized interest and costs of issuance. The Special Obligation Student Fee Revenue Bonds 2000 Series A does not have a Special Capital Reserve Fund (“SCRF”).
The University managed the issuance and sale of the UCONN 2000 Special Obligation Student Fee Revenue Bonds 2000 Series A, and realized a favorable true interest cost. The bonds have a final maturity of November 15, 2029. Debt service is paid from the Pledged Revenues as defined pursuant to the Indentures. Proceeds of the bonds are being used to provide much needed student housing for the Storrs Campus, and a parking garage that will be located near Gampel Pavilion.
The University has invested the bond proceeds in the State Treasurer’s Short Term Investment Fund.
- Credit Rating Success – University’s Stand Alone Credit Rating EstablishedThe University successfully obtained a “AA-” stand-alone credit rating from Standard & Poor’s with its second issue of Special Obligation Bonds, demonstrating its investment potential as well as its ability to professionally administer the complexities of the tax-exempt bond program. The “AA-” rating was the first time the University obtained a credit rating based on its own merit without the use of the Debt Service Commitment or Special Capital Reserve Fund state backed credit supports.The “AA-” credit rating signaled a strong vote of confidence by the capital markets in the University and the future of the State’s flagship university in providing tangible benefits to the State’s economy by meeting the infrastructure and educational goals contained in the UCONN 2000 program.Additionally, the Special Obligation Student Fee Revenue Bonds 2000 Series A bonds were rated “A-1” by Moody’s on a stand-alone basis. At issuance, certain maturities of the bonds were covered by municipal bond insurance and upgraded to a “AAA” rating category at Fitch and Standard Poor’s, and “Aaa” at Moody’s Investors Service.
- Future Bond Issues
Connecticut General Statutes Section 10a-109 through 10a-109y authorizes $962,000,000 of projects to be financed with University General Obligation Bonds secured by the State’s Debt Service Commitment, plus costs of issuance. As of the date of this report, the University has issued $512,000,000 of DSC Bonds for UCONN 2000 Projects leaving $450,000,000 to be issued. Of the latter amount, $100,000,000 has been authorized for possible bond issuance by the University’s Board of Trustees and the Office of the Governor. The University has issued bonds with a face value of $518,427,146.50. The difference is for cost of issuance.Based on projected spending, the University currently anticipates offering a new Debt Service Commitment Bond issue, for all or part of the $100,000,000 authorization, sometime during the Spring of Fiscal Year 2001. Generally, the University plans on issuing a series of Debt Service Commitment bonds at least every twelve months.Additionally, the University could issue Special Obligation Revenue bonds for certain projects with the capacity for financial self-sufficiency, and if pledged revenues are sufficient to meet the requirements of the Special Obligation Indenture. The projects the University is considering at this time are to meet the critical demand for student housing.
PRIVATE FINANCIAL SUPPORT
The UCONN 2000 endowment matching gift program continues to be a resounding success. The program is providing a powerful incentive for donors, who are investing in the University’s people, programs, and facilities at record levels. Since 1995, the year prior to the commencement of the UCONN 2000 program, private giving has increased steadily. Fundraising on behalf of the University is managed by the University of Connecticut Foundation, Inc.
UConn’s average annual fundraising growth rate of 22% for the past five years is double the national average. UConn has surpassed other New England public universities and put its fund raising program in line with others such as the Universities of Alabama, Georgia, Missouri, Delaware, Kansas State, and Oklahoma State.
A comparison of the Foundation’s five-year performance, from Fiscal Year 1995 to Fiscal Year 2000, is very telling:
- Annual private donations have increased to $37 million from $8 million.
- The endowment has increased to $221 million this year from $50 million.
- Total assets under management have increased to $264 million this year from $65 million.
- The cost of raising money has been cut in half to 18 cents per dollar from 36 cents.
The Foundation’s Fiscal Year 1999 investment performance of the endowment ranked in the top 1 percent of the country’s colleges and universities. The UConn Foundation’s investment performance was in the top 10 percent of all colleges and universities for the three year period ending June 30, 1999. Comparisons for Fiscal Year 2000 are not available yet, but the Foundation realized a total return on investment of 16.5 percent, significantly outperforming the composite benchmark index of 9.1 percent.
A combination of new contributions, maximized by the state matching program, and strong investment performance made UConn’s endowment one of the fastest growing nationally.
- The $20 million in 1:1 state match funds for private gifts, as provided by the original UCONN 2000 legislation, is in-hand. During the first year of the program, $9.1 million in match-eligible gifts was received; an additional $6.5 million was received in calendar year 1997; $4.4 million was received in calendar year 1998.
- In recognition of the program’s success, the General Assembly enacted a continuation and restructuring of the match on a 1:2 basis (one state dollar to every two private dollars). The State of Connecticut’s grant will total up to $52.5 million from Fiscal Year 2000 to Fiscal Year 2007, depending on the level of match-eligible donations actually received on behalf of the University by December 31, 2005. As of June 30, 2000, $35.6 million in pledges had been received as part of the 1:2 matching gift program.
- Total endowment assets for the benefit of the University as of June 30, 2000 were $227 million. This includes the UConn Foundation’s total endowment assets of $221 million. Foundation endowment assets grew 26 percent from $176 million on June 30, 1999.
- In February 2000, the Board of Trustees submitted to the State a request for $5 million to match endowment gifts received in 1999. The match is expected to be received in the fall 2000. Eligible gifts received in 1999 exceeded the maximum subscription by $2.8 million. They will be carried forward and submitted with the calendar 2000 match eligible gift receipts.
- United Technologies Corporation committed $4 million to the University of Connecticut School of Engineering to support new engineering education initiatives. The UTC gift is the largest ever to the UConn School of Engineering and the largest corporate gift ever to a public school of engineering in New England. As the largest gift UTC has ever given to an educational institution, it will be used to endow three chaired faculty positions, establish an Advanced Technology Clinic, sponsor four junior faculty positions and establish an endowment for undergraduate scholarships.
- Aetna Financial Services committed more than $2.7 million to the School of Business Administration. The Aetna Center for Financial Services will conduct research on long-term savings, investment, and income management, and will seek to inform relevant public policy debate. Fundamental to the center’s mission will be the creation of a financial services database, to be sustained by and available to academic and corporate subscribers. Part of Aetna’s gift will be used to endow the Aetna Chair in Financial Services, a new faculty position.
- The University of Connecticut Visitors Center, which will be dedicated on October 28, 2000, was made possible thanks to the generosity of Philip H. ’66 ’67 and Christine ’67 Lodewick. Longtime supporters of UConn, their generous commitment of $1.3 million for a visitors program ensures that newcomers to the Storrs campus will be introduced to the many education, cultural and athletic activities that make campus life here so special.
- The Treibick Family Foundation donated $1 million to establish the Treibick Family Chair for the Connecticut Information Technology Institute (CITI). CITI is an innovative program that addresses the educational and professional development needs of Connecticut’s growing information technology sector. The program partners with area businesses to identify technology-training needs and provides state-of-the-art education and training solutions. This gift is in addition to the earlier generous contributions the Treibick Family Foundation has given in support of the Treibick Family Electronic Commerce Initiative Fund at the School of Business, women’s athletics, human rights, the Health Center, Nutmeg Scholarships, and support of the University’s Honors Program.
CURRENT PROJECT STATUS: PHASE I (as of October 2000)