1 / 14

Tax Exempt Bonds as a Financing Tool

Tax Exempt Bonds as a Financing Tool. Cornell University Patricia A. Johnson Treasurer June 28, 2007. Cornell University. Private research university which operates six endowed schools and four state supported schools in Ithaca, NY Medical College operated in New York, NY

shana-berry
Download Presentation

Tax Exempt Bonds as a Financing Tool

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Tax Exempt Bonds as a Financing Tool Cornell UniversityPatricia A. JohnsonTreasurerJune 28, 2007

  2. Cornell University • Private research university which operates six endowed schools and four state supported schools in Ithaca, NY • Medical College operated in New York, NY • New York land grant institution • 20,000 students

  3. Financial Data (as of June 30, 2006) • $8.4 billion in assets • $5.3 billion in investments • $1.8 billion in liabilities • $3.0 billion in revenue • $2.3 billion in expenses • $6.6 billion in net assets

  4. Cornell Debt Rating Moody’s Aa1 Standard & Poor’s AA+ • There is little to no cost advantage to becoming AAA rated

  5. Cornell Core Debt Fixed/Variable Mix

  6. Forward Swaps ($200 million each)

  7. Approved Projects (in thousands)

  8. Issue ProcessTimeline: Three to Four Months • Issue long term bonds every two years • Assemble the team • Issuing Agency • Bond Counsel • Underwriter • Underwriter’s Counsel • Internal Staff

  9. Issue Process(continued) • Trustee approval of indebtedness and use of tax exempt funds • Environmental studies • Public hearings • Reimbursements follow guidelines for approved costs

  10. Internal Loan Process • Approved Project Approval Request (PAR) • Is financing needed? Forward to Treasurer’s Office • Treasurer’s Office determines source of debt • Bridge financing • Long-term financing • Quarterly meetings with University Budget Office

  11. Due Diligence Process for Private Use • Document all projects which received tax- exempt funding by reviewing closing documents and draw down schedules • Contact (or assign) tax exempt coordinator for every project • Exclude infrastructure projects such as utility projects not specific to a building, land improvements, etc.

  12. Due Diligence Process for Private Use (continued) • Questionnaire to be filled out by coordinator at issuance of loan • Follow-up with on-site visits • Questionnaire will be updated every two years • Site visits will occur as necessary

  13. Questions? paj5@cornell.edu 607-254-1590

More Related