The SAU Board of Trustees met in a conference call on Tuesday, Oct. 31, 2017, to consider an agenda that included a budget resolution and debt restructure, both related to SAU Tech.
Attending the meeting at the Magnolia campus were trustees W. Steve Keith, chair, and David Nelson. Present via conference call were Lawrence Bearden, Edgar O. Lee and Therral Story. Dr. Trey Berry, President of SAU, opened the meeting.
The board heard from Jim Fowler, counsel for the Rose Law Firm, and Jason Holsclaw, Vice President of Stephens Inc., about refunding bonds issued in 2012 and 2013 to finance capital improvements on the SAU Tech campus in Camden. The previously issued bonds have outstanding principal balances of $890,000 and $4,430,000. Fowler and Holsclaw recommended the board take advantage of the 5-year call provision on the bonds in order to restructure the debt, reduce the cost of capital, and allow the SAU system to realize “significant debt-service savings.” The general-obligation bonds are secured by a pledge of the revenues derived from SAU Tech student fees. The board approved the recommendation. Stephens, Inc. will execute the call provision and underwrite the 2017 bond issue, which will neither exceed the maturity date nor the outstanding principal balance of the original issue, yet will allow the system to realize approximately $675,000 in savings.
In other business, trustees unanimously approved academic program changes for the system as presented by Dr. David Lanoue, SAU Provost and Vice President for Academic Affairs and Dr. Valerie Wilson, SAU Tech Vice Chancellor for Academics and Planning. A budget resolution was adopted regarding the athletic program at SAU Tech. The resolution sets a $9 per credit hour activity fee that will be allocated 80% for athletics and 20% for student activities. This resolution, pending approval of the Arkansas Department of Higher Education, will provide further support for the return of basketball to SAU Tech in the fall of 2018.
