The Iowa Board of Regents have approved $30 million of borrowing for the University of Iowa for cash-flow purposes related to $232 million of repair costs from the devastating floods that swept through the region last spring.
The university expects its final costs for repairs will be about $25 million, with the remainder being covered by funds from the Federal Emergency Management Agency and insurance policies although reimbursement is expected to take months.
Standard & Poor’s last year said the university’s credit would not suffer due to the June floods. The university saw about 14 of its buildings on its campus in Ames seriously affected by the flooding, including utility tunnels nearest to the Iowa River, which overtook its banks. The damaged dormitories are being repaired and should be ready for the fall semester. As other buildings, including the arts complex, are repaired, temporary space is being provided.
While the costs are not yet final, officials expect to fund them through a mix of insurance proceeds, federal reimbursements, possible state assistance, and internal funds. The university’s unlimited student fee bonds are rated AA by Standard & Poor’s, the same as its hospital revenue bonds. Its dormitory revenue bonds are rated A-plus, its parking revenue bonds A, and athletic facilities revenue bonds are AA-minus. Moody’s Investors Service rates the University of Iowa Aa2.