W. Va. Code R. § 135-12-7 - Capital Project Financing

Current through Register Vol. XXXIX, No. 11, March 18, 2022

7.1. The Commission and governing boards, jointly or singly, may issue revenue bonds for capital project financing in accordance with West Virginia Code §18B-10-8.

7.2. A governing board may seek funding for and initiate construction or renovation work only for projects contained in confirmed or approved campus development plan.

7.3. A governing board may fund capital improvements on a cash basis, through bonding or through another financing method that is approved by the Council or Commission.

7.3.a. If the cost of an improvement project for an institution subject to oversight by the Council exceeds $1 million, the governing board first shall obtain the approval of the Council, as appropriate. If the cost of an improvement project for an institution subject to the oversight of the Commission and the provisions of this rule exceeds $3 million, the governing board shall first obtain the approval of the Commission. In determining cost, all dollars associated with the project, whether state or private funds, will be calculated. Subject to the provisions of this section, the governing board will submit a completed Financial Feasibility Study in the format required by the Council or Commission sixty days in advance of the deadline for submitting agenda items to the Council or Commission (Appendix A).

7.3.b. Each institution will establish a Debt Policy to ensure that debt is prudently used to meet the goals of institutional strategic and capital plans. The policy will include the following components:

7.3.b.1. Debt Structure.

7.2.b.2. Debt Ratios.

7.2.b.3. Synthetic Financial Products.

7.3.c. Prior to approving bonding or any alternative financing method, the Council or Commission, as appropriate, shall evaluate the following issues:

7.3.c.1. The institution's debt capacity and ability to meet the debt service payments for the full term of the financing;

7.3.c.2. Compliance with the institution's debt policy;

7.3.c.3. The institution's capacity to generate revenue sufficient to complete the project;

7.3.c.4. The institution's ability to fund ongoing operations and maintenance;

7.3.c.5. The impact of the financing arrangement on students; and

7.3.c.6. Any other factor considered appropriate.

7.4. A governing board shall notify the Joint Committee on Government and Finance at least thirty days before beginning construction or renovation work on any capital project in excess of $1 million.

7.5. The Council and Commission may pledge all or part of the fees of any or all state institutions of higher education as part of a system bond issue.

7.6. Any fee or revenue source pledged prior to the effective date of this section for payment of any outstanding debt remains in effect until the debt is fully repaid or refunded.

Notes

W. Va. Code R. § 135-12-7