Repository: UIHistories Project: Board of Trustees Minutes - 1954 [PAGE 749]

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746

BOARD OF TRUSTEES

[July 25

T h e proposed budget for 1953-1954 includes increased appropriations to pay for the use of space in the Union Buildings by University offices, putting this payment on a business basis. With additional payment for University use of space and elimination of the debt service charges, the savings resulting from prepayment of the bonds outstanding (this is being recommended separately) and other operating adjustments, the Unions can operate on reduced income. T h e proposed operating budget of the University for 1953-1954 has necessitated reductions in funds for existing programs, one of them being this payment of the service charges by the University. I recommend that these payments be discontinued and that the authority to make them granted by the Board on August 31, 1943, be terminated.

On motion of Mr. Johnston, this recommendation was approved.

PREPAYMENT OF THE ILLINI UNION BUILDING REVENUE BONDS (12) On September 26, 1947, the Board of Trustees authorized the issuance of revenue bonds in the principal amount of $425,000 for the purpose of procuring funds necessary for the termination of the trust then existing between the University of Illinois Foundation and the Board of Trustees of the University of Illinois, and to reacquire the interest in the Mini Union Building conveyed to said Foundation pursuant to said trust. These bonds were designated "Mini Union Building Revenue Bonds," were numbered 1 to 425, inclusive, were of the denomination of $1,000 each, were dated October I, 1947, bonds numbered 1 to 395, inclusive, were to bear interest at the rate of one and one-half per cent per annum, and bonds numbered 396 to 425, inclusive, were to bear interest at the rate of one and three-fourths per cent per annum, with interest payable April I, 1948, and semi-annually thereafter on the first day of April and October (including October I, 1948) in each year, and the bonds were to become due serially, maturing on October 1 of each year, beginning with October I, 1948, up to and including October 1, 1957. The Resolution and the bonds provide that bonds numbered 286 to 425, inclusive, are redeemable as a whole at the option of the Board of Trustees of the University of Illinois on and after October 1, 1953, and prior to maturity, at par and accrued interest and a premium of one per cent of the principal amount thereof, and that notice of redemption shall be published once not less than thirty days prior to the date of redemption. The principal amounts of the bonds outstanding is $185,000. Of these, the principal amount maturing on October I, 1953, is $45,000. The principal amount subject to call and redemption upon said date is $140,000. Funds on deposit with the depository, plus funds available in the accumulated earnings of the Mini Union Building and the Mini Union Bookstore, are adequate to prepay these bonds. This will eliminate debt service payments of approximately $50,000 each year and will effect a substantial saving in interest payments. The Director of the Physical Plant Department and the Comptroller recommend that in addition to paying the bonds maturing on October I, 1953, the Board exercise its option and call all the other Mini Union Building Revenue Bonds for redemption and payment in accordance with the provisions of said resolution and said bonds and that October I, 1953, be specified as the redemption date. I concur in this recommendation and request that the Comptroller and the Secretary of the Board be authorized to take such action on behalf of the Board as may be necessary to effectuate such call, redemption, payments, and cancellation of these bonds.

On motion of Mr. Megran, this recommendation was approved and authority was given as recommended. This action was taken by the following vote: Aye, Mr. Bissell, Mr. Grange, Mr. Herrick, Mrs. Holt, Mr. Johnston, Mr. Livingston, Mr. Megran, Mr. Nickell, Mrs. Watkins; no, none; absent, Mr. Hickman, Mr. Stratton.

APPROPRIATIONS FOR BUILDINGS AND OTHER PERMANENT IMPROVEMENTS (13) The Sixty-eighth General Assembly of Illinois has appropriated funds for the following buildings and permanent improvements: