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1
$16,200,000 Fixed Rate Revenue Bonds
(Series 2016 OO1) Cumberland County Municipal Authority
Pennsylvania Rated “A” Standard & Poor’s
May 26, 2016
2
$16.2 Million Series 2016 OO1 Overview & Timing Issuer: Cumberland County Municipal Authority
Borrower: Messiah College (PA)
Rating: ‘A’ by Standard & Poor’s
Borrowing Size: Approximately $16.2 million
Rate Covenant 1.10x
Security: Revenue Pledge
Final Maturity: November 1, 2046
Principal Amortization: Begins November 1, 2032
Fixed Rate Optional Redemption: May 1, 2026 at Par
No unused proceeds call
Competitive Bid: Ipreo Parity
Planned Bid Date: May 4, 2016 @ 11:30 Eastern
Planned Dated Date/ Closing Date: May 12, 2016
3
Borrower: Messiah College David Walker Vice President for Finance and Planning Financial Advisor to the College: George K. Baum & Co. • Linda Eremita: 412-419-8437 [email protected] • Gary Nowicki: 412-996-6479 [email protected]
4
I. MESSIAH COLLEGE OVERVIEW
II. ENROLLMENT
III. DEVELOPMENT
IV. FINANCE
V. PRO FORMA INDEBTEDNESS
VI. USE OF PROCEEDS OF $16.2 MILLION SERIES 2016 OO1 BONDS
VII. CONCLUSIONS AND TAKEAWAYS
Presentation Topics
Location 5
The main campus of Messiah College ("Messiah" or the "College") is located in Grantham, Pennsylvania, approximately twelve miles south of Harrisburg, 85 miles north of Baltimore and 114 miles west of Philadelphia. The diagram below represents the buildings and athletic fields located on 100 of the College’s 471 acres. Campus buildings comprise 1.4 million square feet, most of which were constructed in the past 15 years.
Harrisburg Campus: The College’s service based program at its Harrisburg Institute is charged with encouraging residents to practice community life, engage meaningfully with the city of Harrisburg, and examine their role in society through the lens of service.
Campus Resources
• 471 acres • 1.4 million square feet of buildings • Most buildings have either been constructed or
renovated in the past fifteen years
6
Institutional Highlights
• Ranked #14 out of 450 colleges and universities in Pennsylvania by BestColleges.com, based upon acceptance, retention, graduation rate and post-graduation employment rate.
• Recognized on the national President’s Higher Education Community Service Honor Roll.
7
Institutional Highlights
• U.S. News and World Report rankings: – #5 among “Regional Colleges” in the northeast – #8 for “Great School, Great Price” in the northeast – #9 in Top 50 Christian Colleges exceeding expectations
for 2016 (Christian Universities Online)
8
Accreditations • Middle States Commission on Higher Education (MSCHE)
• Commission on Accreditation of Athletic Training Education (CAATE)
• Accreditation Board for Engineering and Technology, Inc. (ABET)
• National Council on Family Relations – Certified Family Life Educator
• National Association of Schools of Art and Design (NASAD)
• The Academy of Nutrition and Dietetics, Accreditation Commission for Education in Nutrition and Dietetics (ACEND)
• Commission on Collegiate Nursing Education (CCNE)
• National Association of Schools of Music (NASM)
• National Association of Schools of Theatre (NAST)
• PA Department of Education (Teaching Certification Programs)
• Accreditation Council for Business Schools and Programs (ACBSP)
• Council on Social Work Education (CSWE)
• Council for Accreditation of Counseling and Related Educational Programs (CACREP)
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Faculty
Total Number % with Terminal
Degree Professors 71 98.6% Associate Professors 53 90.6% Assistant Professors 45 64.4% Lecturers 23 34.8% Adjuncts 149
10
Enrollment
11
QUESTIONS: George K. Baum & Co. Financial Advisor to the College Linda Eremita 412-419-8437 Gary Nowicki 412-966-6479
Applications, Acceptances, and Deposits
3,071 3,162 3,153
2,836
2,472 2,469
2,071 2,032 2,023 1,869
1,977 1,950
721 694 708 648 696 691
0
500
1,000
1,500
2,000
2,500
3,000
3,500
FY11 FY12 FY13 FY14 FY15 FY16
Num
ber o
f Stu
dent
s
Applications Acceptances Deposits
12
Selectivity and Matriculation
67.4% 64.3% 64.2% 65.9%
80.0% 79.0%
34.8% 34.2% 35.0% 34.7% 35.2% 35.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
FY11 FY12 FY13 FY14 FY15 FY16
Rate
Acceptance Rate Matriculation Rate
13
Fall Full-Time Equivalent Enrollment
2,762 2,757 2,739 2,725 2,716 2,727
125 166 207 320 431 487
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Fall 2010 Fall 2011 Fall 2012 Fall 2013 Fall 2014 Fall 2015
Num
ber o
f Stu
dent
s
Undergraduate Fall FTE Graduate Fall FTE
2,923 2,946 3,045
3,147 3,214
2,887
14
Undergraduate Retention First-Year to Sophomore Year
85.1% 83.2% 86.5% 86.6% 87.5% 88.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Fall 2009 Fall 2010 Fall 2011 Fall 2012 Fall 2013 Fall 2014
Rete
ntio
n Ra
te
Cohort
15
Enrollment Update 16
First Time Freshmen
Transfer Students
Development
17
QUESTIONS: George K. Baum & Co. Financial Advisor to the College Linda Eremita 412-419-8437 Gary Nowicki 412-966-6479
$8,793,622
$6,121,495 $6,070,775
$7,090,466 $7,210,966
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
As of 4/10/2016
College Advancement Giving 18
* Includes project specific campaign gifts
$12,229,844*
$8,659,216*
Finance
19
QUESTIONS: George K. Baum & Co. Financial Advisor to the College Linda Eremita 412-419-8437 Gary Nowicki 412-966-6479
Gross and Net Tuition and Fee Revenue Compared to Institutional Financial Aid
20
$74.5 $78.0
$81.1 $84.7
$88.0 $90.3
$25.9 $28.3 $30.4 $32.7 $34.2 $36.0
$48.6 $49.7 $50.7 $52.0 $53.8 $54.2
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
$ in
Mill
ions
(Per
iod
Endi
ng)
Gross Tuition Revenue Financial Aid Net Tuition Revenue
Messiah Balance Sheet Resources ($000’s) 21
Fiscal Year Unrestricted Unrestricted as
% of Total Temporarily
Restricted Permanently
Restricted Total
2015 $196,812 80.6% $14,896 $32,583 $244,291
2014 $203,213 81.3% $15,219 $31,534 $249,966
2013 $195,502 83.3% $11,568 $27,604 $234,674
2012 $191,980 84.4% $9,923 $25,458 $227,361
2011 $186,250 79.6% $22,814 $24,882 $233,946
2010 $165,104 80.7% $16,956 $22,444 $204,504
Cash and Investments
$146.1
$161.8 $155.9
$127.7
$148.9
$171.3
$155.2 $145.0
$163.3
$151.5
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
$ in
Mill
ions
22
23 All Undergraduate Students: Average Net Tuition Revenue and Institutional Aid
Source: Messiah College Office of Institutional Research
$16,577 $16,497 $16,278 $16,597 $16,961
$10,959
$12,143
$13,372 $13,913
$14,449
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
FY12 FY13 FY14 FY15 FY16 Proj.
Aver
age
Net
Tui
tion
Reve
nue
Average Net Tuition Revenue Average Institutional AidNote: This information is undergraduate only. Messiah does not discount graduate students.
24 Total Net Tuition Revenue by Incoming and Continuing Student Status
Source: Messiah College Office of Institutional Research
FY12 FY13 FY14 FY15 FY16 Proj.Transfer NTR $1,513,635 $1,427,757 $1,884,336 $1,629,768 $1,618,022First-Year NTR $9,877,413 $10,404,912 $10,063,812 $10,605,906 $10,663,695Continuing NTR $33,234,236 $32,511,267 $31,514,112 $31,597,003 $32,529,245
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
Net
Tui
tion
Reve
nue
Total $44,625,284 $44,343,936 $43,462,260 $43,832,677 $44,810,962
Student Housing 25
2016/2017 Rates Per Semester
Room Type Rate
Single $2,825
Double $2,625
1 Bedroom Apt. $2,700
2 Bedroom Apt. $2,625
Rate & Percentage Increase of Double Rooms
Fiscal Year Rate % Increase
FY13/14 $2,240 3.45%
FY14/15 $2,475 3.13%
FY15/16 $2,550 3.03%
FY16/17 $2,625 2.94%
Occupancy Percentage
Fiscal Year Grantham Harrisburg Occupancy %
FY13/14 2,356 15 98.5%
FY14/15 2,377 12 99.2%
FY15/16 2,367 19 99.1%
$16.2 Million Series 2016 OO1 Pro Forma Indebtedness
26
QUESTIONS: George K. Baum & Co. Financial Advisor to the College Linda Eremita 412-419-8437 Gary Nowicki 412-966-6479
27 $16.2 Million Series of 2016 OO1 Pro Forma Indebtedness
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Tho
usan
ds
Series 2001 I3 Series 2001 I4 Series 2005 DD1 Series 2012 LL3Series 2014 T1 Series 2015 NN1 Principal Series 2015 NN1 Interest 2016 Fixed Principal2016 Fixed Interest Prior Debt Service
Beginning FY ’17
Use of Proceeds of $16.2 Million Series 2016 OO1 Bonds
28
QUESTIONS: George K. Baum & Co. Financial Advisor to the College Linda Eremita 412-419-8437 Gary Nowicki 412-966-6479
Wellness Center Renovations 29
The proceeds of the 2016 Bonds will be used to construct new facilities and additions to existing buildings associated with the recreational, wellness and fitness activities of the College. In addition to sports management and other health and wellness related academic programs, non-student athletes and students participating in Messiah's 22 formal athletic teams will actively use the updated facilities. Messiah is an NCAA Division III institution, participating in the Middle Atlantic Conference. Messiah's athletic accomplishments include nearly 50 women's and more than 30 men's conference titles as well as 25 national championships (including 10 men's and 5 women's soccer championships).
Conclusions and Takeaways
30
QUESTIONS: George K. Baum & Co. Financial Advisor to the College Linda Eremita 412-419-8437 Gary Nowicki 412-966-6479
31
A well rounded institution… • Messiah College, in its second century, is a well
known community of educators & students of integrity. Messiah graduates are highly sought after by employers. Our graduates employ faith & reason in their careers. Messiah College students have earned prestigious academic national and international post-graduate honors, and fellowships such as Rhodes, Fulbright, Carnegie, Truman and Boren scholarships.
• Our campus is pristine. Multiple signature events over the past two years have brought marketing opportunities for the College through the new High Center for Worship and Performing Arts, a signature center for the Harrisburg region which was financed entirely with gifts. Recent lectures include the following distinguished individuals; Doris Kearns Goodwin (Author & Historian), Michele Norris (NPR), and Bob Woodward (Author & Journalist).
32
A well rounded institution… • Balance Sheet Resources: On June 30, 2015, at
$151.5 million, balance sheet resources exceeded pre-recession levels. As well, cash and investments was also 349% of debt and the majority of our long term investments are unrestricted. The liquidity on our balance sheet is no accident.
• Success in Athletics: Messiah College is the only college in the NCAA to win both the men's and women's soccer national championship in the same year, and they have achieved that distinction four times. The men’s soccer team alone has won ten national championships. The coaches and athletes representing our 22 intercollegiate teams are also continuously recognized for their integrity.