Cash flow timeline for Master Plan projects

Below is the estimated cash flow timeline for the Rec Sports Master Plan. Should additional funding become available, the seg fee contributions will continue to decrease.

Additional funding may potentially become available after the referendum is passed, if students choose to support the Master Plan by voting in the ASM Spring Elections on March 3-5.

Visit asm.uwsc.wisc.edu to cast your vote starting at 8am on Monday, March 3.

Master Plan Cash Flow Timeline

Rec Sports has stated that student segregated fees will cover no more than 57% of the cost of design and construction.  Total project cost is $223 million.  The student share of project cost is currently estimated to be $123,450,000, which is actually 55.4% of $223 million.

Each partner in the project will either pay cash up front or will borrow their funds by issuing bonds.   This is similar to financing of the purchase of a home.  A portion of the cost will be paid with a cash down payment and the rest will be financed through a “mortgage”.  Any partner that issues bonds will, of course, be responsible for paying interest on the bonds in addition to repayment of the principal.

Most of the student’s share of $123,450,000 will come from 30-year bonds. The State of Wisconsin will issue bonds for their $30 million.  Athletics is likely to issue bonds for some or all of their $7 million.  Gift funds will come in as cash. After all bonds have been issued, the annual debt service payment for the student share is estimated to be $8.29 million.

A fee increase of $108 should generate $8.29 million more per year.  A calculation of $216 times 43,000 would result in $9.3 million more per year.   The actual amount is lower because spring enrollment typically drops by 5% compared to fall and part-time students do not pay the full segregated fee.  They pay a rate that is based on the number of credits taken.   Approximately 16% of students are enrolled less than full-time.

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