10 Year OSU Capital Forecast

Transcription

1 10 Year OSU Capital Forecast

2 Presentation Define financial boundaries Describe criteria Identify data sources Summarize proposed capital projects

3 Financial boundaries Forecast to align with financial metrics HECC requested state paid bonds at $70 million per biennium HECC requested Capital Improvement and Renewal Funding at $35 million per biennium Gifts and other OSU funds at $95 million per biennium

4 Criteria Criticality Alignment Physical Quality Impact Leverage Life Safety & Seismic Operating Plan Building Condition Revenue Generation Cost Operations / Sustainability Enrollment Plan Accessibility Student Success Collateral advantage HECC Efficiency Reputation Space Operating Life Span Employee Success Scholarship Outreach

5 Data Space inventory Facility condition assessment o Facility Condition Rating o Deferred maintenance and systems renewal backlog o Facility Condition Needs Index Classroom Utilization Index

6 Building Condition Assessment rating of infrastructure Building history o Construction date, renovations and alterations Repairs and maintenance data Seismic safety evaluations Energy use data Energy conservation measures analysis Third party accessibility assessments Roof maintenance plan Qualitative data o Facilities Services, Environmental Health and Safety, Information Services, building managers, etc.

7 Deferred Maintenance and Systems Renewal Backlog A cumulative expression of cost to restore building (or system) to new condition (includes seismic) Main campus buildings and infrastructure, and statewide experiment stations (incl. HMSC) Deferred Maintenance and Systems Renewal Backlog* $693M (E&G) + $100M (UHDS) *Does not include Athletics

8 Facility Condition Needs Index (FCNI) Ratio of the deferred maintenance and systems renewal backlog to the current replacement value Condition FCNI (%) Good 0 15 Fair > Poor > Critical >50.0+ OSU Condition FCNI (%) Fair to Poor 29.6

9 Classroom Utilization Index contact hours/available seats Utilization Category Utilization (%) OSU utilization Low < 20 Seminar Moderately Low Unit dedicated, laboratories Moderate General purpose Moderately High High Very High 80 Classroom utilization index (%) General purpose Unit dedicated Seminar Dry laboratory Computer laboratory Wet laboratory Overall average

10 Classroom utilization index Institutions set utilization goals o Quality of space o Disciplinary norms o Pedagogy Collaborative process between faculty, students, schedulers, and space planners Renovation projects Qualitative improvements, including improving the facility condition, reconfiguration, and upgrades to classroom technology. Reassigning to different uses

11 Facility Assumptions Renovations o Seismic resilience o Complete systems upgrades o Interior space realignment for flexibility, efficiency and effectiveness (space standards and CUI) New buildings to respond to enrollment growth and create resilient spaces New buildings to enable demolition and swing space Demolition of Snell Hall and Facilities Services area, eventually Weniger Hall

12 OSU Proposed Capital Projects E&G 10 major renovations 6 new and one expansion University Housing and Dining Services One major renovation 3 new complexes Buyout Athletics Capital Improvement and Renewal Projects OSU-Cascades

13 OSU Infrastructure Changes Over Time * *Does not illustrate three new STEM buildings

14 OSU Proposed Capital Projects in Corvallis Up to a 47% reduction in deferred maintenance and systems renewal backlog ($330 M) for E&G buildings Demolition of 140,000 GSF Addition of 560,000 GSF Net gain of 420,000 GSF *Does not illustrate three new STEM buildings

15 Financial metrics within approved ranges 8% Debt Burden Ratio 8% 15 Viability Ratio 15 12% Return on Net Assets Ratio 12% 6% 4% 2% 6% 4% 2% 125% 10 75% 5 25% 125% 10 75% 5 25% 1 8% 6% 4% 2% -2% -4% 1 8% 6% 4% 2% -2% -4% Primary Reserve Ratio Debt to Revenues Ratio Approved Operating Ranges Debt Service Coverage times Debt Burden Ratio 2.5% - 6.5% Primary Reserve Ratio 35% - 65% Viability Ratio 75% - 125% Debt/Revenues 3-75% Net Income Ratio - 6% Return on Net Assets Ratio - 8%

16 Financial metrics outside of approved ranges Debt Service Coverage Net Income Ratio 5.0x 5.0x 12% 12% 4.5x 4.0x 3.5x 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x 0.0x 4.5x 4.0x 3.5x 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x 0.0x 1 8% 6% 4% 2% -2% -4% 1 8% 6% 4% 2% -2% -4% Approved Operating Ranges Debt Service Coverage times Debt Burden Ratio 2.5% - 6.5% Primary Reserve Ratio 35% - 65% Viability Ratio 75% - 125% Debt/Revenues 3-75% Net Income Ratio - 6% Return on Net Assets Ratio - 8%

17 Next steps Expand the membership of the Infrastructure Working Group Review and incorporate findings from the Sightlines Facility Asset Analysis Assess value of a comprehensive classroom utilization study and create goals for utilization Present updated 10-year Capital Forecast, aligning with financial metrics and the operating forecast at the January Board of Trustees meeting

18 Questions?