SOURCES AND ELIGIBLE USES OF CAPITAL PROJECT FUNDING

The project identification form requests information regarding potential funding sources for proposed projects. Following is a summary of the fund sources that are available, the type of projects to which each source may be applied, and a forecast of the amount of each fund source for the next few years.

1. PAR (Program Accommodation Remodeling)

Source: Legislative appropriation

Use: Though generally unrestricted by the State, the funds are reserved for projects that will enable a

building space to accommodate a new program or new programmatic needs.

2. R & R (Repair and Replacement )

Source: Legislative appropriation.

Use: Though generally unrestricted by the State, the funds are expected to be used for routine

upkeep of existing facilities to maintain current programs.

3. Legislative Bonding Bill

Source: Sale of bonds by the State.

Use: The University's request for projects to be funded by the State bonds

is limited to the following categories:

Single building specific projects. The state will specifically bond for new buildings and large single building renovation projects. These projects may include any type of work the legislature may approve.
Health & Safety (previously CAPRA, but now a part of HEAPRA). This type of funding is intended to be used to bring buildings into compliance with current building codes such as: ADA, fire & life safety, hazardous material abatement, and environmental quality.
HEAPRA (Higher Education Asset Preservation and Renewal Accounts).

This type of funding is intended to be used for complete building renewal, including the replacement of building systems, general building renovation, and technology improvements needed to maintain the programmatic mission of a building in addition to health and safety improvements. HEAPRA funds are not intended to finance changes in the programmatic use of a building. For all state funded projects, the use of the funds is restricted by statute and supporting documents that may further limit use of funds.

4. Departmental Funds:

Source: All sources of funds over which each College or Department has control, including

O & M, ISO, ICR, Student fees, and fees collected by auxiliaries.

Use: The use of these funds is generally unrestricted, limited only by U of M policies

and project work required approval through inclusion in the Regent approved capital plan.

5. Internal Loan Program:

Source: Proceeds of general obligation bonds, University equity and other funds generated by the internal loan program are available to University departments and colleges in the form of short to intermediate term revolving loans.

Use: Departments and colleges may apply for internal loans for a variety of University capital projects, equipment purchases, and programs that require funding. Loans will not generally be made for annual operating purposes or to cover budget deficits. To the extent the source of loan funds is general obligation bond proceeds, use of the funds is further restricted by bond resolutions and other commitments made by the University in issuing the bonds.

The Office of the Treasurer manages the Internal Loan Program. Loans over $250,000 are subject to review and approval by an internal loan committee. In addition, the CIAC reviews proposed internal loan projects from a University programmatic perspective.

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http://www.fpd.finop.umn.edu/groups/ppd/documents/Appendix/Sources_Capital_Improve.cfm
Updated: January 14, 2000