Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 77]

EXTRACTED TEXT FROM PAGE:

1986]

UNIVERSITY OF ILLINOIS

67

acceptance of resignations, as aire necessary within the total income and surplus of the association, provided that the assignment of funds for new projects or nonrecurring capital expenditures in excess of $50,000 shall be presented to the Board of Trustees for approval. O n motion of Mr. Howard, this recommendation was approved and authority was given as recommended by the following vote: Aye, Mrs. Day, Mr. Forsyth, Mrs. Gravenhorst, M r . H a h n , Mr. Howard, Mr. Logan, Mr. Madden, Mrs. Shepherd, Miss Smith; no, none; absent, Governor Thompson. (The student advisory vote was: Aye, M r . Filip, Mr. Starkeson; no, none.) By consensus, the board agreed that one vote would be taken and considered the vote on each agenda item nos. 7 through 22 inclusive. T h e recommendations were individually discussed but acted upon at one time. ( T h e record of board action appears at the end of each item.) University of Illinois Auxiliary Facilities Revenue Refunding and Improvement Bonds, Series 1986 (Report for Information) (7) On August 14, 1986, bond closing occurred on the sale of $46,635,598 (principal amount) of University of Illinois Auxiliary Facilities Revenue Refunding and Improvement Bonds, Series 1986. The sale of these bonds was authorized by board actions of April 10 and May 8, 1986. The sources and uses of the funds are shown below. Sources Bond principal Uses Cost of escrow Available for improvements Cost of issuance Bond discount $46 635 597 90

$39 913 063 80 5 529 915 35 120 000 00 1 072 618 75 $46 635 597 90 The majority of the funds, $39.9 million, has been used to provide an escrow account which is invested to provide for the call and retirement on October 1, 1994, of all Series 1984 bonds dated October 1, 1996, through April 1, 2009. After paying the cost of issuance and the bond discount, the University netted $5.5 million which is deposited in a construction account for enhancements of the Auxiliary Facilities System. Additional savings of about $560,000 will occur in 1994, the present value of which is about $320,000. The yields on the Series 1986 bonds average 7.80 percent, ranging from 7.30 percent for maturities in 1996 to 8.125 percent for maturities in 2009. The total future debt service of the system, interest and principal combined in each period, is identical to that prior to the issuance of the Series 1986 bonds. This report was received for record. Award of Certified Public Accountant Certificates (8) The Committee on Accountancy recommends that the certificate of certified public accountant be awarded to 1,217 candidates who have passed the uniform written examination on May 7-9, 1986, in Illinois and who have fulfilled all other