The University of Central Arkansas Board of Trustees voted Tuesday to seek approval from the Arkansas Department of Higher Education Coordinating Board for the refunding of about $19 million of bonds.
The board has directed the administration to also seek the issuance of additional bonds not to exceed $22 million to construction a proposed 300-bed residence hall.
Last month, Moody’s revised the university’s debt rating from Baa1 to A3. This will allow the university to restructure existing debt as well as fund additional capital projects at lower cost. Previously, the university’s debt-rating was negative following the downgrading of its score twice in late 2008.
A feasibility study shows a net present value cash flow savings of 3.016 percent if approved, said Diane Newton, vice president of finance and administration.
The proposed residence hall would replace Minton Hall, which has been closed for the past three years due asbestos and the building being in disrepair. Minton Hall was built in 1959. Construction of the new residential hall could begin in late spring or early summer 2011. Funds from the additional bonds will also be used to renovate existing residence halls.
The additional bonds would not increase the university’s overall debt service obligation, Newton said. The final maturity date of the additional bonds shall not exceed 30 years.
In other business, the board approved a five-year contract with Simplex Grinnell to provide for the maintenance of the university’s mass notification equipment. The system is used to notify the campus community in case of an emergency. The total contact cost is $20,683.
Trustees also approved the replacement of sidewalks along Donaghey Avenue, an estimated cost of $85,000; the north side of the president’s home along South Boulevard, an estimated cost of $83,000 and the east and south side of the president’s home, with an estimated cost of $25,000. The sidewalks will be replaced with stamped concrete. There are two sections of sidewalk that are currently brick and will be replaced with brick or stamped concrete.
The sidewalk replacement will be done in three phases as funds become available, said Jack Gillean, chief of staff.
Dr. Harold Chakales, board chairman, said the president’s home is a part of the university’s campus and that it was important to upkeep the home and as well as the sidewalks.
“In regards to fixing up the sidewalks, … if someone would get hurt, this may prevent some litigation or any problems along that line,” he said. “Also, I think this would beautify the campus even more.”
