Transcription
Central New MexicoCommunity CollegeRating PresentationSeptember 26, 2016
Table of Contents1I.Introduction4II.Description Of District9III.Enrollment & Staffing15IV.Capital Improvement Planning20V.Finances & Budget23VI.Debt Management & Finance Plan35VII.Tax Base Information41VIII.Economic Review47RBC Capital Markets
Rating ParticipantsDr. Katharine W. Winograd, PresidentKatherine Ulibarri, Vice President for Finance & OperationsWanda Helms, CPA, Comptroller & Executive Director of Fiscal OperationsDr. Loretta Montoya, Special Assistant to the Vice PresidentPaul Cassidy, Managing Director2RBC Capital Markets
IntroductionSECTION I
Key Points Overview:4 In 2015, Central New Mexico Community College celebrated its 50th anniversary. CNM opened as a small vocationalschool in 1965 with 150 students. Today, CNM is the largest higher education institution in New Mexico in terms of undergraduate enrollment and themost comprehensive community college in the state. CNM serves students at nine easily accessible locations: one campus in each quadrant of Albuquerque, a campusand a location in the AMREP Building in Rio Rancho, the Advanced Technology Center and Workforce TrainingCenter in north Albuquerque, and the STEMulus Center in downtown Albuquerque. In 2013, CNM won the Student Success Award from the American Association of Community Colleges, thegoverning body for 1,200 community colleges nationwide. In academic year 2014-15, CNM ranked first among 1,100-plus community colleges nationwide for number ofassociate degrees earned by Native Americans and second for degrees earned by Hispanics. CNM ranked 6th fortotal number of associate degrees awarded. CNM continues to sustain impressive outcomes despite state budget cuts, a sluggish economy and trends showingdeclining enrollments for higher education in New Mexico and nationwide. Community members continue to viewCNM as the most affordable and effective way to improve their job prospects. CNM maintains state-of-the-art facilities including nursing and surgical labs to serve CNM’s at-capacity healthcareprograms and a Solar Center of Excellence to train students in photovoltaic installation. In 2014, CNM launched CNM Ingenuity, Inc. A 501(c)(3), CNM Ingenuity, Inc. operates a highly successful computercoding bootcamp program and business accelerator in downtown Albuquerque’s Innovation District. CNM operates under a five-year, long-term capital-planning process. In 2007, a strong favorable vote added the remainder of Rio Rancho to the CNM Taxing District. CNM has collectedfrom this larger tax base for nine years. CNM maintains strong partnerships with the University of New Mexico, Albuquerque Public Schools and Rio RanchoPublic Schools. The region’s first dual credit high school opened on CNM’s Main Campus in partnership with APS in2013. CNM plans to devote a future building renovation to expand capacity for the very successful dual credit highschool.RBC Capital Markets
Key Points – Continued Overview – Continued: CNM has more LEED certified buildings than any other higher education institution in New Mexico. During the 2016 local bond election, CNM district voters approved a 0.45 local property tax increase to generate 84 million for capital improvements at CNM. The bond was approved by approximately 65% of voters. Instructional Programs: CNM offers associates degrees and certificates in more than 100 fields of study including business, health,technologies, trades occupations and academic transfer programs. Arts and sciences courses and programs transfer to universities throughout New Mexico with more than 70 transferand articulation agreements. College preparation courses and non-credit adult education courses and programs include GED and ESL. CNM offered 1,549 online course sections in the 2015-16 academic year, more than any New Mexico highereducation institution. Accelerated programs in non-traditional formats that serve key workforce needs for the local economy are offered atthe STEMulus Center in downtown Albuquerque, which operates under the 501(c)(3) CNM Ingenuity, Inc. CNM Workforce Training Center provides customized contract employee training for business and industry. Management of District:5 Diverse, elected Governing Board members represent seven geographical CNM districts. Dr. Katharine Winograd, in her tenth year as CNM President, provides very experienced leadership as the secondlongest tenured community college president in New Mexico and served as Vice President of Finance beforebecoming president. She recently signed a three-year contract extension, ensuring continuity. Katherine Ulibarri,Vice President for Finance and Operations since 2007, has many years of experience in New Mexico highereducation finance and budget leadership positions. Dr. Winograd was named Western Region CEO of the Year by the Association of Community College Trustees in2013. CNM has had no external audit findings during the past two audited fiscal years (FY-14 and FY-15).RBC Capital Markets
Key Points – Continued Finances: Fund balance management is guided by College policy. Debt Management Policy and Post-Compliance Guidelinesimplemented in 2013 help manage and sustain strong debtprogram, as well as ensure tax compliance and legal controlsrelated to bond obligations. Community Support: Local businesses rely on CNM for technical training needs,particularly Presbyterian, Lovelace and many otherhealthcare providers; RiskSense, a cybersecurity firm; Intel;General Mills; ABQ Studios and others in the state’s filmindustry; Sandia National Labs; and many more. The College maintains strong support from the communityand New Mexico Legislature. The CNM Foundation recruits high-profile Board members. CNM is an important partner in Albuquerque’s InnovationDistrict efforts. Over 1,000 members from local businesses sit on CNMadvisory panels to help ensure curriculum meets currentworkforce needs. Competition:6 Private institutions compete for occupational students. UNM competes to a limited degree for lower-division, liberalarts students. Online learning continues to grow in New Mexico. Enrollment is only slightly affected by competition.RBC Capital Markets
Vision, Mission, Values, Goals and StrategiesVisionBe a Leader in Educationand TrainingMissionChanging Lives,Building CommunityValuesBe CaringBe EthicalBe InspiringBe CourageousBe ConnectedBe ExceptionalBe CNMGoalsStudent SuccessCommunity SuccessOrganizational Excellence andInnovation72016-2020OrganizationalStudent CommunityExcellence andSuccessSuccessInnovationDevelop Student Work Experience ProgramxxCreate Comprehensive Online CollegexxExpand Fast-Track Degree OfferingsxxIncrease Percentage Of First-Time, Full-Time, Degree-Seeking StudentsxImplement Competency-Based Education OptionsxExpand Credit For Prior LearningxGrow IntersessionxExpand College & Career High SchoolxxDevelop Global Learning InitiativexxTransition From College-Owned Technology To Student-Owned TechnologyxExpand Non-Credit Offerings Through Bootcamps, AcademiesxDevelop Early Childhood Connect Center Of ExcellencexCreate A Student-Centered Course SchedulexExpand Dual CreditxIncorporate Sustainability Initiatives Into Course OfferingsxAll First-Time, Full-Time, Degree-Seeking Students Have An Academic PlanxxxxxxExpand Business Support Through Business Accelerator And SBDCsxDevelop And Implement Comprehensive MakerspacexCreate Business Incubator SpacesxImplement Values-Based Employee InitiativesxTransform Customer Service ExperiencexArticulate And Implement Space Efficiency InitiativesxEnhance Intellectual Property InitiativesxStreamline And Document All Processes And ProceduresxRBC Capital Markets
Description Of DistrictSECTION II
Governing Board Consists of elected member from seven districts. Members serve a four-year term. Elections held the first Tuesday in February in odd-numbered years. Provide general control and management of CNM. Determines financial and education policies Chief administrative function of the Board is to appoint the college President. Set fee rates and tuition annually.Pauline J. Garcia, Vice ChairDistrict 1Robert P. Matteucci Jr., SecretaryDistrict 2Retired, Utility Services ManagerAttorneyTerm Expires - 2017Term Expires - 2019Melissa Armijo, MemberDistrict 4Fiscal Services, UNMNancy BacaDistrict 5Term Expires - 2017Business OwnerTerm Expires - 2017Thomas E. Swisstack, MemberDistrict 3Retired AdministratorTerm Expires - 2017Virginia Trujillo, MemberDistrict 6Retired AdministratorTerm Expires - 2019Michael D. DeWitte, ChairDistrict 7President, ApertureNEXT, LLCTerm Expires - 20179RBC Capital Markets
Organizational Chart – September 201610RBC Capital Markets
New Mexico Institutions of Higher EducationAssociate Degree Colleges / Community Colleges Central New Mexico Community College Clovis Community College Crownpoint Institute of Technology Dine College – Crownpoint Center Dine College – Shiprock Eastern New Mexico University – Roswell Eastern New Mexico University – Ruidoso Luna Community College Mesalands Community College New Mexico Junior College New Mexico Military Institute New Mexico State University – Alamogordo New Mexico State University – Carlsbad New Mexico State University – Dona Ana New Mexico State University – Grants Northern New Mexico College San Juan College Santa Fe Community College Southwestern Indian Polytechnic Institute (SIPI) University of New Mexico – Gallup University of New Mexico -- Los Alamos University of New Mexico – Taos University of New Mexico -- ValenciaSource: accalaureate Colleges / Universities Eastern New Mexico University Institute of American Indian Arts New Mexico Highlands University New Mexico Institute of Mining and Technology New Mexico State University Northern New Mexico College University of New Mexico Western New Mexico UniversitySource: BC Capital Markets
Campus FacilitiesCNM has nine locations for easy student access across CNM’s District –five campuses (four located in each quadrant of Albuquerque and one inRio Rancho), the Workforce Training Center and Advanced TechnologyCenter in north Albuquerque, the STEMulus Center in downtownAlbuquerque and a location in Rio Rancho’s AMREP building. The MainCampus is located near Albuquerque’s downtown business district andthe University of New Mexico; other Albuquerque campuses serve theNortheast Heights, the West Side and the South Valley.CNM renovated its 28-year-old Science Laboratory Building on MainCampus, reopening in 2015 as a new, state-of-the-art science labbuilding. The 43,000-squre-foot building, designed for Leadership inEnergy and Environmental Design (LEED) certification, houses biology,chemistry, anatomy, physiology, astronomy, physics and earth andplanetary science labs. The building also showcases science displays ininnovative ways to help draw more students into STEM fields, where NewMexico needs more graduates.In 2014, CNM opened its STEMulus Center in downtown Albuquerque’sInnovation District. The STEMulus Center, operating under CNM’s501(c)(3) status, provides non-traditional, accelerated programs in fieldsthat are key for local economic development, such as various offerings inthe Cyber Academy. This academy offers a This academy builds aroundits anchor program -- a coding bootcamp s that allows participants toearn the credentials they need in just 10 weeks for high-demand jobs.The STEMulus Center also features a successful business accelerator.CNM has more Leadership in Energy and Environmental Design (LEED)certified buildings than any other higher education institution in NewMexico, which significantly helps the College reduce energy consumptionand create more sustainable campuses.12RBC Capital Markets
Supporting Community In 2013, the American Association of CommunityColleges, which represents nearly 1,200 communitycolleges nationwide, named CNM as the winner of itspremier award, the Excellence in Student SuccessAward. CNM set an all-time record for number of studentsgraduating in the 2014-15 academic year (6,232).From 2004-05 to 2014-15, the number of studentsgraduating from CNM increased 230.6%. With student enrollment at 25,760, CNM is the state’slargest and most comprehensive community college. Itis also the largest higher education institution in termsof undergraduate enrollment in New Mexico. More than 1,000 volunteer local business professionalsserve on CNMs 46 advisory committees, ensuringCNM's curriculum prepares students to succeed in theworkplace. In 2013, CNM partnered with Albuquerque PublicSchools (APS) to open the region’s first dual credithigh school. Located on CNM’s Main Campus, the highschool continues to grow. Partnering with APS, CNMwill construct a new high school/college facility toexpand the high school.13 From the 2010-11 academic year to 2014-15, CNMexperienced a 120% increase in the number ofassociate degrees awarded and an 83% increase inassociate degrees and certificates awarded tominorities (70% for Hispanics). CNM received a 3 million grant from the U.S.Department of Labor in fall 2015. CNM is partneringwith the State of New Mexico, the City ofAlbuquerque, Presbyterian Healthcare Services, NMWorkforce Connection, NM Technology Council andothers to create 300 new IT apprenticeships incentral New Mexico. The Workforce Training Center offers customizedemployee training programs for local businesses. CNM President Dr. Katharine Winograd was namedWestern Region CEO of the Year by the Associationof Community College Trustees. CNM earned the “Vision Award” from NAIOP’s, theCommercial Real Estate Development Association,New Mexico chapter. The CNM Foundation has operated since 1985.Since 1992, a 36-member Board was formed andnow directs fundraising efforts. To date, theFoundation has raised more than 30 million inprogram and student support. In July 2015, CNM celebrated its 50th anniversary.RBC Capital Markets
Enrollment & StaffingSECTION III
Enrollment HistoryCredit Enrollment by Declared MajorApplied TechnologiesBusiness & Information TechnologyCommunication, Humanities, & Social SciencesHealth, Wellness, & Public SafetyMath, Science, & EngineeringUndecided/Non-DegreeTotal Credit 3,340Non-Credit EnrollmentAdult & General EducationWorkforce Training CenterTotal Non-Credit EnrollmentTOTAL HEADCOUNT32,071CREDIT ENROLLMENT BY SCHOOL (2015)Math, Science, &Engineering21%Health, Wellness,& Public s9%Business &InformationTechnology20%Communication,Humanities, &Social Sciences26%31,43232,94230,64429,100CREDIT VS NON-CREDIT ENROLLMENT(2015)Non- Credit11%Credit89%RBC Capital Markets
Enrollment by AreaCredit Enrollment Totals20112012201320142015Bernalillo County23,63322,26822,60320,83519,773Sandoval County4,1053,8843,8733,7973,541Other New Mexico1,8381,8111,9781,8922,091Non-New 6328,68526,77125,760TotalEnrollment Totals25,00020,00015,00010,0005,0002011Bernalillo County162012Sandoval County2013Other New Mexico2014Non-New Mexico2015UnknownRBC Capital Markets
CNM Student ProfileOther9%FALL 125,760AGE2011201220132014201518 and 1,845Over tal17Asian2%White30%NativeAmerican7%2015 ETHNICITYBlack3%Hispanic49%Male44%Female56%2015 GENDER41-507%31-4015%Over 505%Unknown0%26-3013%2015 AGE18 andUnder20%19-2540%RBC Capital Markets
StaffingAs of August 2016, CNM employs 2,699 individuals: 1,209 full time 1,269 part time 221 work-study studentsMaintenance &Operations6%Public Service0%Internal nt Services13%Instruction64%Academic Support6%FULL TIME & PART TIME EMPLOYEESBargaining UnitFull Time FacultyPart Time FacultyInstructional Support UnitMaintenance and OperationsSecurityNumber ofEmployees3571,07115211354Dues PayingMembers12474251310Frequency ofNegotiations (AVG)3 years2 years1 year3 years3 yearsExpiration 018* In or beginning negotiations18RBC Capital Markets
Capital ImprovementPlanningSECTION IV
Capital Planning Process20RBC Capital Markets
Overview of Projects to be Funded from 2016 BondsProjectSmith Brasher RenovationProject DescriptionRenovation of building including new lobby area, lecture hallupgrades, classroom upgrades, new HVAC upgrades, new studentgathering areas and parking lot improvements. (Main Campus)Total ProjectCost2016 BondFunding24,600,0002,400,0001,000,000Max Salazar Renovation - Phase IIRenovation of building including classrooms and academic officespace. (Main Campus)25,000,000Joint Use High School/North BuildingDemolitionDevelopment of a joint-use facility to house classrooms, labs, offices,and other auxiliary spaces to support the CNM Career and CollegeHigh School and other high school initiatives that arise as theprograms develop. Project contingent upon partnership withAlbuquerque Public Schools. (Main Campus)35,000,00012,500,000Catering and BrewingCreation of classroom and lab space to accommodate Beer and WineAcademy, Brewing Technology, Catering Operations and Food TruckCommissary and Hub. (Location to be determined)5,257,674500,000Student Services Center RenovationReview current physical structure and develop/design a plan to alterthe space to create a more welcoming and connected space. (MainCampus)2,690,8632,690,863J Building Renovation - Phase IIRenovation of building including a student learning commons, lessmechanical and roof work completed in Phase I. (Montoya Campus)16,575,00014,075,000Site and Safety ImprovementsInstallation of new entrance markers at Rio Rancho and WestsideCampuses and way finding signage for building and function location.Project also includes enhanced street and city markers to providebetter directional signage to each campus location to enhance andcreate a safe environment for students and staff. (Rio Rancho Campusand Westside Campus)Emergency Broadcast and Display forSafety and SecurityEnterprise digital signage and audible broadcast system. (Allcampuses)Access Control (All Remaining Phases)Total 2016 Bond FundsRemaining phases of Access Control. (All 004,866,233 42,000,000RBC Capital Markets
Finances & BudgetSECTION V
Primary Revenues by SourceRevenue SourceFY12FY13FY14FY15FY16FY17 BudState 42556,801,07556,080,400Local Mill ,17651,182,133Tuition & ,513,880130,479,678132,158,456TotalFY16 PRIMARY REVENUES BY SOURCETuition & Fees18%State Appropriation43%Local Mill Levy39%23RBC Capital Markets
New Mexico Higher Education Funding Formula ChangeIn 2012, the Higher Education Department, together with university and college representatives, developeda performance-based funding formula. Effective Fiscal Year 2013, the new funding formula model wasimplemented. General fund appropriations continue as performance based, with annual updates to formulainputs.General Fund Appropriation: Funding Formula ComparisonOLD FORMULA: FY12 and prior -Base Funding from Prior YearWorkload (Based on Student Credit Hours at Census Date)Student Services (based on Student Headcount)Physical Plant and Utilities (based on Sq. Ft. of College Facilities)Equipment Replacement and Building Renewal3% Scholarship FundsRevenue Credits (Tuition, Mill Levy, Other)General Fund AppropriationNEW FORMULA: FY13 and future 24Percent of Protected General Fund Appropriation from Prior YearEnd of Course Workload- Student Credit Hours CompletedOutcomes- Total Awards (Based on a Percent of Certificate and Degrees Awarded)Outcomes- Workforce Incentives (Percent of Awards that are STEM/Health Related)Outcomes- At-Risk Awards (Percent of Awards to Financially At-Risk Students)Mission Differential (Outcomes Specific to University/College Missions)General Fund AppropriationRBC Capital Markets
Performance Highlights Impacting FY2017 Funding Due to declining state revenues, the New Mexico higher education systemexperienced an overall decrease in general fund appropriations of -2.40%.However, due to CNM's overall strong performance under the outcomes-basedstate funding formula, CNM was able to limit its state appropriations fundingdecrease to only -1.86%. The New Mexico Higher Education Department rewards institutions forincreased numbers of awards in three awards-based performance outcomecategories: Total Awards, STEMH (Science, Technology, Engineering, Math andHealth) Awards, and At-risk Awards. CNM produced nearly half of the total community college sector awards,which resulted in a 362,663 in outcomes-based funding. CNM saw a 33% increase in the total amount of completed dual creditstudent hours which resulted in a formula award distribution of 61,849. Finally, CNM's At-risk Awards resulted in 237,881 of outcomes-basedfunding, as a result of a 33% increase in total awards to At-Risk students. Whereas the state’s community colleges increased total awards by 13.2%, CNMsaw an increase of 38%.25RBC Capital Markets
NM Higher Education Funding Formula Change – August 2016CNM’s Strategic Direction, focusing primarily on student success and student completion,has had a positive impact on the growth of General Fund Appropriations. Increases instudent performance are reflected in increased state funding until FY17, where strongstudent performance mitigated against statewide reductions for public colleges anduniversities.FY08 - FY17 STATE GENERAL FUNDAPPROPRIATIONS TREND 56,080,400F Y1 7 56,801,075F Y1 6F Y1 5F Y1 4F Y1 3F Y1 2F Y1 1F Y1 0F Y0 9F Y0 826 55,644,425 51,971,700 47,750,400 43,008,000 47,695,100 46,801,000 53,435,114 56,486,697RBC Capital Markets
Tuition & FeesAcademic YearResident Academic /Transfer TuitionNon-resident TuitionRegistration FeeTechnology / -Note:27Resident CareerTechnical EducationTuitionTuition based on 12 to 18 credit hours.Technology / Facilities Fee assessed per credit hour.RBC Capital Markets
On-Going Budget Initiatives Comprehensive annual Facilities and Technology Master Planning process implemented, utilizing inputfrom CNM faculty and staff, vetted by a cross-college team and approved annually by Executive Team andGoverning Board. Revised annual computer and equipment replacement cycles to focus resources on high-demand studentand workforce programs, increasing delivery of online coursework and training, and automating internalprocesses. Reviewed teaching and staffing needs that resulted in implementing an early retirement option programand multi-phase overhaul of talent management program. Continued assessment and hiring of faculty to support academic programs. Implemented market-based salary studies and commensurate salary adjustments. Applied “best practices” to update student services support by incorporating technology and web-basedtools and varied scheduling of CNM’s Connect services to increase retention and program completion. Made process improvement initiatives, including the Banner Revitalization Project, assessing the use ofthe college’s Enterprise Resource Planning/Business Management System and implementing onlinevendor registration and bidding tool. Incorporated sustainability efforts in plant management, facilities construction and college-wide planningand education. Continued assessment of workforce needs and realigning staff. In 2015-2016, nearly 125 positions wereeliminated through a retirement incentive program and attrition. The College has implemented currentbest-practices by cross-training staff in student services and business areas. Increased revenue streams and reduced administrative costs.28RBC Capital Markets
Historical Fund Balances – Budgetary BasisFiscal Year EndingJune 30Current FundsCapital OutlayRenewal &ReplacementInvestment in 289,38539,078,69110,970,470100,074,8571,184,938* Note – FY16 balances are preliminary29RBC Capital Markets
General Fund TrendRevenue by Type as a Percentage of Total I&G RevenueFY08 – FY17 BudgetYearStateTotal Budget AppropriationsState Appr. as% of TotalRevenueLocal MillLevyLocal MillLevy as %of TotalRevenueTuition &FeesTuition &Fees as % ofTotalRevenueOtherRevenueOther as %of 1.27%FY17 95,92318.29%3,969,7132.92%30RBC Capital Markets
General Fund Trend GraphRevenue by Type as Percentage of Total I&G 0831FY09FY10FY11FY12FY13FY14FY15FY16State Appr. as % of Total RevenueLocal Mill Levy as % of Total RevenueTuition & Fees as % of Total RevenueOther as % of Total RevenueFY17BudRBC Capital Markets
2011Operating revenues:Tuition and fees (net of scholarship allowances)Federal grants and contractsState and local grants and contractsSales and services of educational departmentsAuxiliary enterpriseTotal operating revenuesOperating expenses:Instruction and general:InstructionPublic serviceAcademic supportStudent servicesInstitutional supportOperation and maintenance of plantDepreciationStudent aidAuxiliary enterprisesOther expensesTotal operating expensesOperating loss 787)(147,227,229)(149,644,276)Revenues & ExpendituresCNM Revenues & ExpendituresFY12 – FY16*20122013201420152016*Operating revenues:Tuition and fees (net of scholarship 214,273,309Federal grants and ,729State and local grants and ,786Sales and services of educational ,962Auxiliary 6,517963,9991,299,375739,490598,785518,992Academic 679,055Student ,987,841Institutional 980,220Operation and maintenance of ,017Student 869Auxiliary ,64880,90697,99896,293134,441122,924Total operating revenues Operating expenses:Instruction and general:InstructionPublic serviceDepreciationOther expensesTotal operating expensesOperating loss163,026,406167,712,044176,557,54917
CNM as the most affordable and effective way to improve their job prospects. CNM maintains state-of-the-art facilities including nursing and surgical labs to serve CNM's at-capacity healthcare programs and a Solar Center of Excellence to train students in photovoltaic installation. In 2014, CNM launched CNM Ingenuity, Inc.
