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Home My WebLink AboutTSHA presentationTown Council update Texas Student Housing Authority April 25, 2011 1 Overview •Original goal or why are we in business ▫Grant scholarships to deserving students from districts surrounding Westlake ▫Provide incremental revenue to the Town – over the years, the town has received $500,000 from TSHA •Goal has Evolved ▫Grant scholarships to Texas High School graduates. ▫Since 1995,when TSHA began, a total of 1586 scholarships have been awarded •Incremental and Full Scholarship Offers ▫Incremental valued at $2,500/year maximum of 4 years ▫Full value varies from $4,720 at Townlake to over $8,000 at Cambridge. •Where are we at in 2011? ▫131 incremental scholarships ▫30 full scholarships 2 Update to Financial Outlook Report •Cambridge at College Station ▫Consists of 196 Units/530 Beds ▫Financed with A/B/C/D certificates Occupancy for 2010/2011 is 100% Rental rates increased by 2.5% for 2011-2012 2010-2011 net cash flow is projected to meet debt services payments for A & B certificate holders ▫Tax exempt status for 2005-2010 has been denied by Brazos County A trial was held in Dec 2010. The presiding Judge has yet to render a verdict. ▫Funds Repair and Replacement and Debt Service Reserves Funds are fully funded. A & B P&I Funds are fully funded. C & D are not funded. 3 Update to Financial Outlook Report •Ballpark at Austin ▫Consists of 283 Units/768 Beds ▫Financed with A/B/C bonds ▫2010/2011 Occupancy Occupancy is 97.3% Rental rates have increased slightly 2010-2011 net cash will not cover debt service Analysis by Asset Plus indicates the market value is $24 million Cushman & Wakefield indicates the value to be between $22 and $24 million Debt on the property is over $30 million ▫Funds Repair and Replacement is depleted Debt Service Reserve balance is $101,818 MBIA issued a check in the amount of $203,664 to cover 1/2011 debt services pay to the Senior bond holders. The property is liable for debt service, not TSHA and Westlake. 4 Update to Financial Outlook Report •Town Lake at Austin ▫Consists of 216 Units/648 Beds ▫Financed with A-1 and A-2 bonds Occupancy for 2010/11 is 97% 2010-2011 net cash flow will not cover debt services ▫Muni Mae Willingness to to suspend the interest payments on A2 bonds ($33K month) if TSHA will forego Asset Management Fee of $28K/year Interest payment suspension triggered an event of default Will give MMA greater input as to the direction of the property, including possible foreclosure action ▫Funds Repair and Replacement balance is $177,481 Debt Service Reserve balance is $143,076 Currently using $40-$50K/month A-2 bonds are not being paid 5 Update to Financial Outlook Report 6 •The Ridge at Denton ▫Consists of 288 Units/876 Beds ▫Financed with A/B bonds ▫2010-2011 Occupancy is 95.1% 2010-2011 net cash flow will only cover Senior bond debt service ▫Funds Repair and Replacement fund is depleted Debt Service Reserve fund balance is $2.07 million Three new properties are being build this year with approximately 1300 beds Asset Management Fees collected from Asset Campus Housing are deposited in the Authority Account 7 How the Funds Flow. . . Authority Account Rental Account Properties •Cambridge •Town Lake •Ballpark •The Ridge at Denton Asset Campus Housing •Asset Management Fees •Transfers from Rental Account as needed What makes up Authority Account funds: •Incremental Scholarship cost collected from scholarship recipients What makes up Rental Account funds: A portion of the student’s contribution for the incremental scholarship, as well as the payment for full scholarships are paid to the properties from the Rental Account. Property Financials 2010-2011 School Year (budgeted) Cambridge Ballpark Town Lake Denton Revenue $5,565,421 $3,535,471 $2,854,566 $4,473,760 Expense $3,648,083 $1,625,324 $1,346,418 $2,070,016 Trustee Fee 10,000 $5,000 $5,000 $5,000 Cash Flow $1,907,338 $1,905,147 $1,5503,148 $2,398,744 Debt Svc – A&B $1,884,000 N/A N/A N/A Debt Svc – C&D $894,540 N/A N/A N/A Debt Svc – A N/A $2,264,644 N/A $2,398,092 Debt Svc – B N/A $192,550 N/A $220,000 Debt Svc – C N/A $330,000 N/A N/A Debt Svc – A1 N/A N/A $1,677,096 N/A Debt Svc – A2 N/A N/A $439,800 N/A 8 2010/2011 Estimated Scholarship Income/Expense (budgeted) Income Expense Cambridge $8,000 $58,400 Ballpark $66,060 $42,750 Town Lake $54,280 $49,500 Denton $48,760 $19,240 Overflow facilities $73,140 $109,920 Total $250,240 $279,810 9 Considerations for the TSHA Board •Costs ▫TSHA owned facilities support 130-140 yearly scholarships ▫Cost of housing scholarship recipients in overflow facilities - $1,700 to $2,200/student ▫The number of scholarships awarded in 2010/2011 to students for an overflow facility was 17 for a total cost to TSHA of $36,780. •Sustainability of the program is greatest unknown 10