Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 356]

EXTRACTED TEXT FROM PAGE:

1985]

UNIVERSITY OF ILLINOIS

345

Sale of Bonds (Report for Information)

(21) T h e president reports as follows with regard to the sale of bonds, previously authorized, and completed, subsequent to the June 1985 meeting of the board: 1. University of Illinois Auxiliary Facilities System Revenue Bonds, Series 1985 ($56,750,000). The revenues of this bond series provide: (a) $50,680,000 to fund the auxiliary facilities projects previously approved by the board; (b) a $5,500,000 increment to the debt service reserve; and (c) funds for bond discount and other issuance costs. Sealed bids were opened on the morning of June 25, 1985, and the sale was awarded to a group of underwriters headed by First Chicago, the low bidder, at a net effective interest rate of 6.83 percent. 2. University of Illinois Revenue Bonds, Series I985B (Construction Engineering Research Laboratory) ($2,025,000). The revenues of this bond series provide: (a) $1,650,000 to construct an addition to the laboratory, which is leased to the U.S. Army Corps of Engineers; (b) approximately $200,000 as an increment to the debt service reserve; (c) funds to cover interest payments during the construction phase and before the lease payments from the Corps are increased; and (d) issuance costs. These bonds were privately placed by Clayton Brown & Associates with Cosmopolitan National Bank ($70,000); Oak Park Trust & Savings Bank ($665,000); and Mount Prospect State Bank ($1,290,000). Interest rates on the bonds vary with the maturities. The net effective interest rate on the entire issue is 8.16 percent. Bond closings on both of these issues are scheduled for July 25, 1985.

This report was received for record. Report, Rejection of Bid, Satellite Union Site Development, Chicago

(22) O n June 27, 1985, the University received bids for a project to construct concrete sidewalk and curb improvements along Polk Street and construction of an outdoor patio on the west side of the Satellite Union at the Chicago campus. One bid was received which exceeded the funds available for the project. Accordingly, pursuant to the provisions of Article I I , Section 4 ( k ) (2) of the General Rules Concerning University Organization and Procedure, the bid was rejected, and the president reports its rejection.

This report was received for record. Premium Payment Plan

(23) T h e Internal Revenue Code, Section 125, authorizes employers to establish a program wherein employee contributions for the payment of premiums for certain group insurance programs can be made prior to the imposition of State and Federal income taxes. In effect, employees' salaries are reduced, for tax-computation purposes, by the amount of their premium payments for eligible group insurance programs. Senate Bill 840, enacted by the 84th General Assembly, now awaiting the governor's signature, authorizes the salary reduction agreements outlined in the document entitled, "Premium Payment Plan." (A copy of the document is filed with the secretary of the board.) The program will not alter the employee's contributions or benefits under the State Universities Retirement System. The vice president for business and finance recommends the establishment of the plan and shall be responsible for its administration. T h e plan must receive