Attachment A Austin Community College District Debt Status and Financial Options January 14, 2002

1. Attachment A Austin Community College District Debt Status and Financial Options January 14, 2002

2. Goals • Provide cash flow relief and additional operational flexibility. • Provide funding for property acquisition and development. • Achieve Board Reserves policy target. • Not to impede the flow of funds available for operations and maintenance. • Fund incremental debt with incremental revenue. • Preserve District’s credit quality.

3. Opportunity to Refund Certain Series 1992: Maturities 2003 610,000 5.6% 2004 900,000 5.7% 2005 1,510,000 5.8% 2006 1,330,000 5.9% • Provides cash flow relief in light of potential valuation fluctuation. • Enhances cash flows until such time as tax rate limitation may be addressed. • Refunding will achieve Board Reserves policy target by FY 2006.

4. Existing Debt Status

5. 2001 Pledged Revenue Analysis 1These revenues available for use in operation and maintenance, and are currently being used as such.

7. Existing Debt Service

8. District Facilities/Debt Financed • 1984 $ 4,800,000 Riverside Land/Renovations • 1986 $ 8,500,000 Northridge Land Northridge Phase I Riverside Renovation • 1990 $ 8,300,000 Cypress Creek Construction Refund 1984 • 1991 $ 4,500,000 Northridge Phase II • 1992 $ 7,265,000 Refund 1986-1991 • 1995 $13,250,000 Eastview Campus $ 1,000,000 Highland Business Center Renovation • 2000 $20,900,000 New Construction $ 4,800,000 Service Center/Warehouse

9. District Facilities/Cash Acquisition • Rio Grande Campus 20-year lease amortized FY 92 $ 5,000,000 • Pinnacle Purchase FY 91 2,800,000 Buildout FY 92-93 2,000,000 • District Administrative Office Purchase FY 93 4,800,000 • Fiber Optics FY 94-95 2,000,000 • ADA Compliance FY 95 500,000 • Riverside Phase II FY 94-95 5,200,000 • Renewal & Replacement Fund FY 96 1,361,000 Total $23,661,000

10. Tax Collections by Year 1990-2000 Based on September Year-end Reports

11. New Properties on Tax Roll by Year 1990-2001

13. Financial Options Available • Existing Debt Structure Options (Option 1) • Refund existing debt to provide cash flow relief using Capital Appreciation Bonds (CABs). Option provides $5.2 million in cash flow relief over a five-year period. Represents actual present value cost to the District. • Achieves Board policy target by FY 2006 under existing 15% language.

14. Option 1

16. Quantitative Analysis • Option 2 – CAB refunding and $5.8 million with $1 fee increase. • Refund existing debt to provide cash flow relief using Capital Appreciation Bonds (CABs). Provides $5.2 million in cash flow relief over five-year period. • Provides $5.8 million in new bond money ($5.0 million net proceeds) for purchase of South Austin Campus property, facilities retrofit for Riverside, and purchase of property for additional parking spaces at PIN. • Achieves Board policy target by FY 2006 under existing 15% language.

17. Option 2

19. Facilities Improvement Plan Projected Excess Revenues

20. Financial Options Available • Sale of Riverside Golf Course (Option 3) • Net Proceeds estimate - $4.5 million. • Accelerated approach to achieve Board Reserves policy target by FY 2002 (or FY 2003 depending on date of sale) under existing 15% language.

22. The Bond Buyer GO Index Since January 2000 Percentage (%) Market rates as of October 25, 2001