Project Priorities and Phasing

The Capital Improvement Program

Since the late 1980s, the UT System Board of Regents has required each component of the UT System to prepare a Capital Improvement Plan (CIP) in odd-numbered years, i.e., those years in which legislative sessions take place. This decision by the Board of Regents could, to some extent, have been influenced by the Texas Legislature's reauthorization of the use of Tuition Revenue Bonds as a major means of financing major capital renewal projects on public university campuses. During the late 1980s, the Texas Legislature sought a viable funding mechanism for new campus construction, expansion, and capital improvement under the South Texas Initiative. Such funding was needed to expand educational opportunities to vast southern geographical areas of the state. Historically, those areas of Texas with the most rapidly growing population in the state have been educationally underserved, particularly with respect to access to public higher education. Tuition revenue bonds as a means of financing capital projects were not restricted to public university campuses in South Texas, or any geographic area of the state. Most public universities, including UTSA, have benefited by having this source of funds for major capital renewal projects. Having an updated Capital Improvement Plan (CIP) available for immediate reference and to justify major capital projects is necessary in order to be prepared should Tuition Revenue Bonds or other sources of funding for capital renewal and replacement projects become available in the future as a result of legislative action.

Sources of Funds

As previously mentioned, tuition revenue bonds may be used as a primary source of funding for construction of new educational and general facilities and/or for major repair and rehabilitation of existing educational and general space. Tuition revenue bonds as a source of funding for major capital projects must be authorized in advance by the Texas Legislature; however, tuition revenue bond projects are subject to review by the THECB. Permanent University Fund (PUF) bonds are another possible source of funds that may be expended to construct new educational and general facilities and/or to pay for major repairs and rehabilitation of educational and general space. Projects funded with PUF bonds must be authorized by the Board of Regents of the UT System and are also subject to review and approval by the THECB (depending on the total project cost). Projects funded with PUF bond proceeds must first be included in the Capital Improvement Program (CIP) that has been approved by the Board of Regents. Currently, the Board of Regents grants this approval only in odd-numbered fiscal years, coinciding with the years during which the Texas Legislature convenes.

Revenue bond proceeds are being used to finance a $12 million project to construct and equip the new Chaparral Village. This debt is issued through the UT System Revenue Financing System, and the funds borrowed to finance the project must be repaid from revenues generated by the rental of rooms in the new residence hall and/or from revenues generated by the UTSA housing system operation. It is currently anticipated that all new housing to be constructed by UTSA in the future will be financed using revenue bond proceeds through the UT System Revenue Financing System. Funds to retire those bonds must be generated by those assets.

Other Potential Sources of Funds

In addition to the sources of funds previously identified, funds for capital projects may be provided through capital campaigns whereby individuals and corporations contribute funds intended to be used for major new construction, major renovation and rehabilitation of existing facilities, or to provide funds for purchase of equipment. Ground lease arrangements or partnerships with private developers for construction of auxiliary enterprise facilities, such as apartments, bookstores, parking garages, and recreational or health club facilities may also be appropriate.

Phasing Plan

The figure illustrates what the campus might look like in the middle of the term of the master plan. The most difficult part of the sequence of construction to the end of the term will be the beginning phases of East Campus. This is in many ways analogous to the construction of an entirely new campus – infrastructure, access, and sequencing issues are critical.

Housing is a good option for a first project because it can stand separate from a proximity and infrastructure point of view. Parking has already been completed in this area, and it will adequately service the future buildings in East Campus for a number of years. The first academic and research buildings to be built here will require the construction of a thermal plant. The plan also shows retail and student services facilities built at the same time. It is also important to build these first buildings in conjunction with proper connections to the campus core. While the bridge to the Main Building may be completed later, a grade connection to the area of the Arts Building may be finished earlier to service the parking on East Campus. One possible sequence of construction is shown in the tables in the tables below. This sequence assumes a roughly linear progression of investment, disregarding inflation, and balances construction of new research facilities with construction of new academic facilities. Recreational and athletic facilities are also scheduled according to growth in the student body. Many of the dates in the beginning of the sequence are either already scheduled or have been otherwise indicated by UTSA.