U NIVERSITY OF I LLINOIS U RBANA -C HAMPAIGN C HICAGO S PRINGFIELD - PowerPoint PPT Presentation

Financial Indicators U NIVERSITY OF I LLINOIS U RBANA -C HAMPAIGN  C HICAGO  S PRINGFIELD Presented to the Board of Trustees January 21, 2010

Where Does the Money Come From? Where Do the Dollars Go? FY 2010 FY 2010 20% 45% Unrestricted $2,052.4M Restricted $880.6M 18% 40% 16% $763.8M 35% $730.9M 14% $679.2M 30% $617.6M $601.0M 12% 25% 10% 20% 8% $889.5M $358.6M 15% 6% $679.2M $612.5M 10% 4% 5% $296.0M 2% $135.5M $30.8M 0% 0% State Tuition Inst. Funds Grants & AFMFA Hospital/MSP Aux./Dept. Payments on Personal Contractual Commodities Equipment All Other Payments on Contracts Behalf Services Services Behalf Unrestricted $1,853.3M 39.7% Unrestricted $1,853.3M 39.7% Restricted $2,809.2M 60.3% Restricted $2,811.9M 60.3% Total $4,662.5M 100% Total $4,665.2M 100% 1

State Appropriation Revenue Unrestricted Funds Fiscal Year 2006 through Fiscal Year 2010 In Millions GRF revenue increased 6.1% in total from FY2006 – FY2010 1.9% 1.8% 2.3% 0% $800 $743 $700 $713 $726 $743 $700 $600 $500 $400 $300 $200 $100 $0 2006 2007 2008 2009 2010 Appropriation FY09 appropriation includes $19 million rescission. FY10 appropriation includes $45.5 million of federal stimulus funding and assumes restoration of FY09 rescission. 2

State Appropriation Revenue Unrestricted Funds Billings and Collections through December 31, 2010 In Millions $800 $743 $743 $700 19 45.5 $600 $724 $500 $697.5 $400 $300 $494 $485 $200 $251 $100 $46 $0 2009 2010 Collected Billed Appropriation Rescission Stimulus FY09 appropriation includes $19 million rescission. FY10 appropriation includes $45.5 million of federal stimulus funding and assumes restoration of FY09 rescission. 3

UI Month End GRF Receivable Fiscal Year 2007 through Fiscal Year 2010 In Millions $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 July 06 Dec 06 June 07 Dec 07 June 08 Dec 08 June 09 Dec 09 Month End General Revenue Fund Receivable 4

UI Direct State Tax Appropriations (GRF) Fiscal Year 2000 – Fiscal Year 2010 In Millions In Constant 2009 CPI Dollars $1,000 Original Appropriation $950 $900 $850 $800 $750 Spending Authority $700 $650 Spending Authority: FY02 – FY10 adjusted for Health Insurance obligation of $24.9 million. FY09 & FY10 state appropriation adjusted to include $15.8 million transferred for the State Surveys. 5

Income Fund (Tuition) Revenue Unrestricted Funds Fiscal Year 2006-2010; collections through December of Fiscal Year 2009-2010 In Millions 12.7% $800 $730 8.2% $700 10.9% $648 $599 11.1% $600 $540 $486 $500 $385 $380 $400 $325 $321 $300 $200 $100 $0 2006 2007 2008 2009 2010 Collected Billed Total Annual tuition revenue increased by 50.2% in total from FY06-FY10 6

State and Income Fund FY 2000 – FY 2010 • Total Enrollment FY 2000 over 67,000 In Millions • Total Enrollment FY 2010 over 75,000 $800 General Tax Funds $700 Income Fund $600 $500 $400 $300 $200 Sources: Budget Summary for Operations, state payments on behalf, and RAMP. Waivers excluded. GRF for FY02 – FY10 exclude $24.9 million for Health Insurance,. State Surveys are included in State (not IF) in FY09-FY10. 7

Sponsored Projects Revenue Restricted Funds Budget Fiscal Year 2006-2010; Actual through December Fiscal Year 2009-2010 In Millions 13.4% $721 -4.8% .8% 3.6% $800 17 $640 $636 $609 $614 15 $700 12 13 13 $600 298 269 270 $500 267 280 $290 $314 $400 8 7 $300 131 122 406 359 $200 329 351 321 175 161 $100 $0 2006 2007 2008 2009 2010 UIUC UIC UIS & UA Sponsored project revenue increased by 12.7% in total from FY06-FY10 8

Federal Grants and Contracts Expenditures All Functions – Total University In Millions $630 $560 $490 $420 $350 $280 $210 $140 $70 $0 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 HHS NSF USDA Energy Defense Education Other 9

Utility Budget versus Actual Expenditures Fiscal Year 2005 through Fiscal Year 2010 In Millions $140 $120 $115 $113 $114 $120 $106 $105 $102 $101 $100 $84 $81 $80 $68 $60 $41 $40 $20 $0 2005 2006 2007 2008 2009 2010 Actual Budget FY10 Actual is through 11/30/09 10

Natural Gas Hedging Program In accordance with Board established fuel procurement policy, Fiscal Year 2010 and 2011 core gas supply has been secured via physical contract. Market price risk has been essentially eliminated for these years. Purchases for FY12 and FY13 are underway. $7.91 Landed Price 100% $7.51 90% 80% 70% 60% 50% 96% 91% $7.42 40% 30% 20% $7.11 34% 10% 2% 0% 2010 2011 2012 2013 Percent Committed Volumes Summary of Gas Procurement Program Volume Requirement = Must Run Gas Requirement to produce only steam load Landed Price = field price + basis + Nicor Enerchange fee + NGPL fees 11

University Debt Fiscal Year 2010 through Fiscal Year 2020 $1,686.9 Million Total Outstanding at June 30, 2009 UIC South Internal/Other Campus 2.6% 4.3% Health System 3.6% Auxiliary System 55.7% COPs 33.8% Outstanding Annual Net Debt Service Requirements by Issue Type In Millions Fiscal Year 2010 debt AFS COPS HSFS SC $160 service represents 2.5% of overall UI budget $140 $120 $100 $80 $60 $40 $20 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 12

Debt Capacity • Revenue Diversity • State Relationship • Management & Governance • Enrollment & Student Demand • Market Position Less Debt • $1.7 billion debt outstanding as of 6/30/09 AAA • $250 million recaptured capacity in 5 years • $600 million recaptured capacity in 10 years AA+ Qualitative Attributes AA AA- • Auxiliary Facilities System A+ • Certificates of Participation (Moody’s ratings Aa3 since 2000) A • UIC South Campus (Moody’s rating A1 since 1999) More Debt A- • Health Services Facilities System (S&P rating scale) (Moody’s rating A2 one notch upgrade in 2007) • Leverage and Debt Service Coverage • Capital Plans / Facility Needs Quantitative Attributes • Operating Margins • Financial Resources • Comparison to Peer Universe 13

University of Illinois Credit Position Moody’s Commentary Positives • Premier public university in Illinois: multiple campuses and strong student demand • Nationally prominent reputation in research with diversified sources of research funding • Essentially balanced operating performance despite recent cuts in state appropriations • Expected growth in resource base through Brilliant Futures Campaign • Limited additional debt and capital plans Challenges • Significant ongoing capital needs • Highly leveraged balance sheet relative to peers • Exposure to healthcare sector challenges • Declines and delays in State operating support 14