Construction in progress consists primarily of renovations to Hunter Hall, repairing and paving of farm roads, replacement of exterior stairs at the Bell Gymnasium, repairs to campus roofs, and the construction of a new residence hall. The projects are projected to be completed in fiscal year 2023. The remaining estimated costs to complete the projects is $690,000 for Hunter Hall renovations, $112,000 for the Replace Exterior Stairs Bell Gymnasium project, $4.8 million for repairs to campus roofs through the Roof Repair and Replacement Pool project, and $17.0 million for the New Residence Hall project.
The Hunter Hall Renovation project is federally funded by a $2.3 million facilities grant from the U.S. Department of Agriculture. The Replace Exterior Stairs Bell Gymnasium project is being funded by the asset preservation pool funds. House Bill 1 Part II(I)(1), the executive branch budget bill that passed in the regular session of 2022, includes a $683.5 million asset preservation pool in General Fund-supported bond funds. The asset preservation pool provides funding for individual asset preservation, renovation, and maintenance projects at Kentucky's public postsecondary institutions in Education, General, and state-owned and operated residential housing facilities. The Council on Postsecondary Education (the Council) will oversee the use of the funds received from the asset preservation pool. The University has been allocated $8,039,000 and $8,039,000 for fiscal years ending June 30, 2023, and June 30, 2024, respectively. The University is required to match 15% of the funding which will result in $1,206,000 and $1,206,000 for fiscal years ending June 30, 2023, and June 30, 2024, respectively.
The Roof Repair and Replacement Pool project is being funded by an appropriation of $5.0 million. This funding is provided through the Kentucky State Property and Buildings Commission (SPBC) by the issuance of revenue bonds that will finance various construction projects across multiple state agencies. The debt service on the revenue bonds will be funded by appropriations for lease payments by the General Assembly. The University will not be funding this project with its own capital. The above construction projects are being overseen by the Kentucky Division of Engineering and Contract Administration (DECA).
The New Residence Hall project is funded by the issuance of certificates of participation notes as described in Note 8.
The University adopted GASB Statement No. 87 and has recorded 90 right-to-use leased assets as of July 1, 2021. The assets are right-to-use assets for leased equipment (machinery). The related lease liabilities are discussed in Note 8. The right-to-use lease assets are amortized on a straight-line basis over the terms of the related leases. Right to use asset activity for the University for the year ended June 30, 2022, was as follows:
39.