
The University of New Mexico
NEWS RELEASE
Media Contact: Susan McKinsey, 277-1989
November 20, 2007
UNM Institutional Bonds Approved by Board of Finance
UNM President pledges independent audit to certify strength of university finances
The University’s $143 million institutional bond issue took a major step forward today with approval by the New Mexico Board of Finance. The university got further good news with word today that bond rating agencies Moody’s and Standard and Poor’s have given the university a strong Aa3/AA rating.
“This is an excellent bond rating and signals to us that now is the time to go after these institutional bonds. This is the best window of opportunity,” said UNM President David J. Schmidly. “We understand that UNM must become more self-sufficient in our capital improvement program for there is much to get done. Given its many competing needs, we cannot expect the state to finance this work for us in a timely manner nor should we.”
The heart of this institutional bond issue is the work proposed for UNM’s academic facilities. Classroom modernization, the renovation of the Lockheed-Martin building for the Student Success Center, and phase two of the College of Education - UNM’s highest capital priority - all directly impact the student experience. The bond issue also features major work on the university’s two premiere athletic facilities – the Pit and University Stadium – among others projects.
“Each and every one of these projects relates back to our mission,” said Schmidly. “Our first priority is to the success of our students. So we want to assure them that these projects will not impact on their tuition or fees or on UNM’s operating funds.”
In response to questions from some Board members, President Schmidly is requesting the university’s outside auditors, Moss Adams and KPMG, to publicly present their independent audit of 2007 university finances in an open session of the UNM Board of Regents as early as January. He is also directing the independent auditors to undertake a long-term projection of the University’s future finances that will also be made public.
“When public doubt is cast about our finances, that is harmful to the institution. I want to dispel any lingering doubts,” said Schmidly. “ I am very mindful that, during my tenure as president, I intend to leave the University of New Mexico in the strongest financial position possible.”
President Schmidly and other UNM officials presented Board of Finance members with details on how the debt service on the bond issue will be paid. They stressed that several projects can move forward with the understanding that revenues generated as part of the university’s commercial real estate development initiative be dedicated to fund the associated debt service. They expressed confidence that the potential revenues that will be generated from the development of these real properties will far exceed the commitment of debt service for the 2007 bond issue. They also stressed that the bond issue does not make use of the north golf course property as a revenue source.
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