September 21–23, 2005

ITEM 128-2006-R0905    Authorization to Utilize Short Term Loans for the Continuation of a Multi-Year Information Technology Infrastructure Replacement Plan; Montana State University-Bozeman

THAT: The Board of Regents of the Montana University System authorizes Montana State University-Bozeman to utilize short term loans, for those twenty-nine (29) individual projects specified in Attachment #1, in order to continue the University's multi-year Information Technology Infrastructure and Telecommunications Replacement Plans.

EXPLANATION: 1) At its May 29, 2003 meeting the Board of Regents authorized Montana State University to establish mandatory Information Technology Fees at each of its campuses.

2) At its September 25, 2003 meeting the Board of Regents authorized Montana State University-Bozeman to utilize short term loans in FY04 and 05 for the implementation of its Multi-Year Information Technology Infrastructure Replacement Plan.

3) The most likely sources of short term loans for Montana State University are GE Capital Finance, other similar private finance institutions, and Intercap loans from the Montana Board of Investments; and, it is the policy of these financial institutions and the BOI to require a signed endorsement from the Office of the Commissioner of Higher Education for loans such as these.

4) Because the IT Infrastructure and Telecommunications Replacement Plans are based upon a continual flow of short term loans, the University believes that it is a good business practice to request Regent approval of a package of short term loans for one biennium at a time.

5) Attachment #1 itemizes the twenty-nine (29) individual IT infrastructure and Telecommunications replacement and enhancement projects, and their necessary short term loans, which are planned for the next 21 months. The items directly reflect the updated Business Plan that was presented to the Regents at their May, 2003 meeting.

6)  Attachments #2 and #3 are schedules which show a summary of the revenues, expenditures and fund balance in the IT Infrastructure and Telecommunications Programs, illustrating the financial soundness of the plans.

7)  Attachment #4 is an amortization projection for future loans, through fiscal year 2013, which shows a continual retirement of debt obligations in each successive year.

 

ATTACHMENTS: #1 FY06/07 Short Term Loan Program

#2 IT Infrastructure Replacement Program

#3 Telecommunications Replacement Program

#4 IT Capital Plan Amortization for Future Year Loans