Date: 08/13/2012
Final
Update about Unspent COP Proceeds
COMMITTEE ON CAPITAL DEVELOPMENT
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09:30 AM -- Update about Unspent COP Proceeds
Ms. Donaldson provided an update about the status of refunds to two higher education institutions authorized by House Bill 12-1357. She next discussed the status of certificates of completion filed on behalf of the various projects funded through the 2008 sale of certificates of participation (COPs) to be repaid from Federal Mineral Lease (FML) revenues. Ms. Donaldson said that according to Office of the State Controller calculations, there is expected to be about $6.05 million available to spend from unspent proceeds from the COP issuance. Some project funds are still encumbered or unexpended, but the $6.05 million amount takes this into account. Ms. Donaldson explained that the committee has 30 days to make a decision about how to spend the remaining proceeds after receiving final information from the Office of the State Controller and the State Treasurer's Office about the amount available to spend, and that the committee is scheduled to meet again September 5 to take action on this matter.
Committee members received a list of the FY 2012-13 Level II controlled maintenance projects in scores 12 and 14 that have been identified as eligible for funding from the unspent proceeds by bond counsel (Attachment H). Committee members also received project descriptions for three projects authorized, but not included, for funding through the FML COP and one FY 2012-13 capital renewal request (Attachment I). Ms. Donaldson walked the committee through Attachments H and I.
Mr. Brett Johnson, Deputy Treasurer, State Treasurer's Office, came to the table to address questions from the committee. In response to a question, Mr. Johnson confirmed that paying down the principal with the unspent proceeds is not the most effective use of the available funds. Discussion turned to the possible funding scenarios and the information included in Attachments H and I. Ms. Donaldson reminded the committee that the remaining funds must be spent by November 5, 2013. Discussion turned to the increased cost of deferred maintenance.
09:44 AM
Mr. Rod Vanderwall, Manager of Energy Programs, Office of the State Architect, came to the table to address a question about increased costs for deferred maintenance projects. Discussion returned to the role of the committee in making a decision about the unspent proceeds. Ms. Donaldson addressed a question about the amount of FML dollars projected to be available for capital projects as shown in the most recent economic forecast.