Proposed Facility Indicators Presentation to the Board of Trustees

1. Proposed Facility IndicatorsPresentation to the Board of Trustees Joyce Hatch Vice Chancellor Administration and Finance August 2006

2. UMA Funded Capital Plan by Source of Funds Source $ % total

3. Benefits of Facility Indicators • To track progress and changes in Deferred Maintenance (DM) • To monitor facility condition by type of use • To show relationship with financial indicators

4. Proposed Facility Indicators A. Indicators to Measure the Level of Need Total Deferred Maintenance (DM) Cost: Includes deferred and other maintenance dollars needed to maintain current function of the campus. This is the amount needed to address the deferred maintenance backlog plus the code work that would be mandated to allow the campus to continue to use the space once the repairs were complete. DM Cost per square foot: The total deferred maintenance cost per square foot of space. The measure can be used to also quantify various components of the space such as housing and other auxiliary space or it can be used on a building by building basis.

5. Proposed Facility Indicators B. Indicator to Assess Financial Resource Capacity Equivalent Debt Burden: This ratio describes the borrowing resource that would be needed to correct the deferred maintenance needs. It measures the additional annual debt payment required to correct the DM problem as a percent of total campus expenses. As a frame of reference, credit analyzers such as Standard & Poor’s typically suggest that total debt burden should not exceed 10% of expenses.

6. 1. To Track Changes in Facilities Condition

7. 2. To monitor facility condition by type of use B.Projected: FY 08 Year End After Implementation of $710M

8. 3. To Show Relationship with Financial Indicators FACILITY FINANCIAL