Central New Mexico Community College Rating Presentation September - - PowerPoint PPT Presentation

Central New Mexico Community College Rating Presentation

September 26, 2016

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Table of Contents

I. Introduction 4 II. Description Of District 9 III. Enrollment & Staffing 15 IV. Capital Improvement Planning 20 V. Finances & Budget 23 VI. Debt Management & Finance Plan 35 VII. Tax Base Information 41 VIII. Economic Review 47

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Rating Participants

• Dr. Katharine W. Winograd, President

Katherine Ulibarri, Vice President for Finance & Operations Wanda Helms, CPA, Comptroller & Executive Director of Fiscal Operations

• Dr. Loretta Montoya, Special Assistant to the Vice President

Paul Cassidy, Managing Director

Introduction

SECTION I

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Key Points

• Overview:

− In 2015, Central New Mexico Community College celebrated its 50th anniversary. CNM opened as a small vocational school in 1965 with 150 students. − Today, CNM is the largest higher education institution in New Mexico in terms of undergraduate enrollment and the most comprehensive community college in the state. − CNM serves students at nine easily accessible locations: one campus in each quadrant of Albuquerque, a campus and a location in the AMREP Building in Rio Rancho, the Advanced Technology Center and Workforce Training Center 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, the governing body for 1,200 community colleges nationwide. − In academic year 2014-15, CNM ranked first among 1,100-plus community colleges nationwide for number of associate degrees earned by Native Americans and second for degrees earned by Hispanics. CNM ranked 6th for total number of associate degrees awarded. − CNM continues to sustain impressive outcomes despite state budget cuts, a sluggish economy and trends showing declining enrollments for higher education in New Mexico and nationwide. Community members continue to view 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. A 501(c)(3), CNM Ingenuity, Inc. operates a highly successful computer coding 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 collected from this larger tax base for nine years. − CNM maintains strong partnerships with the University of New Mexico, Albuquerque Public Schools and Rio Rancho Public Schools. The region’s first dual credit high school opened on CNM’s Main Campus in partnership with APS in

• 2013. CNM plans to devote a future building renovation to expand capacity for the very successful dual credit high

school.

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• 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 transfer and 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 higher education institution. − Accelerated programs in non-traditional formats that serve key workforce needs for the local economy are offered at the 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:

− 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 second-

longest tenured community college president in New Mexico and served as Vice President of Finance before becoming 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 higher education finance and budget leadership positions. −

• Dr. Winograd was named Western Region CEO of the Year by the Association of Community College Trustees in

2013. − CNM has had no external audit findings during the past two audited fiscal years (FY-14 and FY-15).

Key Points – Continued

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• Finances:

− Fund balance management is guided by College policy. − Debt Management Policy and Post-Compliance Guidelines implemented in 2013 help manage and sustain strong debt program, as well as ensure tax compliance and legal controls related to bond obligations.

• Community Support:

− Local businesses rely on CNM for technical training needs, particularly Presbyterian, Lovelace and many other healthcare providers; RiskSense, a cybersecurity firm; Intel; General Mills; ABQ Studios and others in the state’s film industry; Sandia National Labs; and many more. − The College maintains strong support from the community and New Mexico Legislature. − The CNM Foundation recruits high-profile Board members. − CNM is an important partner in Albuquerque’s Innovation District efforts. − Over 1,000 members from local businesses sit on CNM advisory panels to help ensure curriculum meets current workforce needs.

• Competition:

− Private institutions compete for occupational students. − UNM competes to a limited degree for lower-division, liberal arts students. − Online learning continues to grow in New Mexico. − Enrollment is only slightly affected by competition.

Key Points – Continued

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Vision, Mission, Values, Goals and Strategies

Vision Be a Leader in Education and Training Mission Changing Lives, Building Community Values Be Caring Be Ethical Be Inspiring Be Courageous Be Connected Be Exceptional Be CNM Goals Student Success Community Success Organizational Excellence and Innovation

2016-2020 Student Success Community Success Organizational Excellence and Innovation Develop Student Work Experience Program x x x Create Comprehensive Online College x x Expand Fast-Track Degree Offerings x x Increase Percentage Of First-Time, Full-Time, Degree-Seeking Students x Implement Competency-Based Education Options x x Expand Credit For Prior Learning x Grow Intersession x Expand College & Career High School x x Develop Global Learning Initiative x x x Transition From College-Owned Technology To Student-Owned Technology x x Expand Non-Credit Offerings Through Bootcamps, Academies x x Develop Early Childhood Connect Center Of Excellence x Create A Student-Centered Course Schedule x Expand Dual Credit x Incorporate Sustainability Initiatives Into Course Offerings x All First-Time, Full-Time, Degree-Seeking Students Have An Academic Plan x Expand Business Support Through Business Accelerator And SBDCs x Develop And Implement Comprehensive Makerspace x Create Business Incubator Spaces x Implement Values-Based Employee Initiatives x Transform Customer Service Experience x Articulate And Implement Space Efficiency Initiatives x Enhance Intellectual Property Initiatives x Streamline And Document All Processes And Procedures x

Description Of District

SECTION II

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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 Chair District 1 Retired, Utility Services Manager Term Expires - 2017 Melissa Armijo, Member District 4 Fiscal Services, UNM Term Expires - 2017 Robert P. Matteucci Jr., Secretary District 2 Attorney Term Expires - 2019 Nancy Baca District 5 Business Owner Term Expires - 2017 Virginia Trujillo, Member District 6 Retired Administrator Term Expires - 2019 Thomas E. Swisstack, Member District 3 Retired Administrator Term Expires - 2017 Michael D. DeWitte, Chair District 7 President, ApertureNEXT, LLC Term Expires - 2017

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Organizational Chart – September 2016

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New Mexico Institutions of Higher Education

Associate 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 -- Valencia

Baccalaureate 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 University

Source: http://hed.state.nm.us/students/comcollege.aspx Source: http://hed.state.nm.us/students/universities.aspx

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Campus Facilities

CNM has nine locations for easy student access across CNM’s District – five campuses (four located in each quadrant of Albuquerque and one in Rio Rancho), the Workforce Training Center and Advanced Technology Center in north Albuquerque, the STEMulus Center in downtown Albuquerque and a location in Rio Rancho’s AMREP building. The Main Campus is located near Albuquerque’s downtown business district and the University of New Mexico; other Albuquerque campuses serve the Northeast Heights, the West Side and the South Valley. CNM renovated its 28-year-old Science Laboratory Building on Main Campus, reopening in 2015 as a new, state-of-the-art science lab

• building. The 43,000-squre-foot building, designed for Leadership in

Energy and Environmental Design (LEED) certification, houses biology, chemistry, anatomy, physiology, astronomy, physics and earth and planetary science labs. The building also showcases science displays in innovative ways to help draw more students into STEM fields, where New Mexico needs more graduates. In 2014, CNM opened its STEMulus Center in downtown Albuquerque’s Innovation District. The STEMulus Center, operating under CNM’s 501(c)(3) status, provides non-traditional, accelerated programs in fields that are key for local economic development, such as various offerings in the Cyber Academy. This academy offers a This academy builds around its anchor program -- a coding bootcamp s that allows participants to earn 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 New Mexico, which significantly helps the College reduce energy consumption and create more sustainable campuses.

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Supporting Community

• In 2013, the American Association of Community

Colleges, which represents nearly 1,200 community colleges nationwide, named CNM as the winner of its premier award, the Excellence in Student Success Award.

• CNM set an all-time record for number of students

graduating in the 2014-15 academic year (6,232). From 2004-05 to 2014-15, the number of students graduating from CNM increased 230.6%.

• With student enrollment at 25,760, CNM is the state’s

largest and most comprehensive community college. It is also the largest higher education institution in terms

• f undergraduate enrollment in New Mexico.
• More than 1,000 volunteer local business professionals

serve on CNMs 46 advisory committees, ensuring CNM's curriculum prepares students to succeed in the workplace.

• In 2013, CNM partnered with Albuquerque Public

Schools (APS) to open the region’s first dual credit high school. Located on CNM’s Main Campus, the high school continues to grow. Partnering with APS, CNM will construct a new high school/college facility to expand the high school.

• From the 2010-11 academic year to 2014-15, CNM

experienced a 120% increase in the number of associate degrees awarded and an 83% increase in associate degrees and certificates awarded to minorities (70% for Hispanics).

• CNM received a $3 million grant from the U.S.

Department of Labor in fall 2015. CNM is partnering with the State of New Mexico, the City of Albuquerque, Presbyterian Healthcare Services, NM Workforce Connection, NM Technology Council and

• thers to create 300 new IT apprenticeships in

central New Mexico.

• The Workforce Training Center offers customized

employee training programs for local businesses.

• CNM President Dr. Katharine Winograd was named

Western Region CEO of the Year by the Association

• f Community College Trustees.
• CNM earned the “Vision Award” from NAIOP’s, the

Commercial Real Estate Development Association, New Mexico chapter.

• The CNM Foundation has operated since 1985.

Since 1992, a 36-member Board was formed and now directs fundraising efforts. To date, the Foundation has raised more than $30 million in program and student support.

• In July 2015, CNM celebrated its 50th anniversary.

Enrollment & Staffing

SECTION III

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Enrollment History

Credit 89% Non- Credit 11%

CREDIT VS NON-CREDIT ENROLLMENT (2015)

Credit Enrollment by Declared Major 2011 2012 2013 2014 2015 Applied Technologies 3,170 2,707 2,852 2,523 2,352 Business & Information Technology 6,132 6,060 6,166 5,552 5,282 Communication, Humanities, & Social Sciences 7,820 7,796 7,574 6,962 6,721 Health, Wellness, & Public Safety 5,400 3,563 3,513 3,277 4,396 Math, Science, & Engineering 4,591 6,553 7,136 6,763 5,301 Undecided/Non-Degree 2,067 1,584 1,650 1,694 1,708 Total Credit Enrollment 29,180 28,263 28,891 26,771 25,760 Non-Credit Enrollment 2011 2012 2013 2014 2015 Adult & General Education 1,652 1,961 2,450 2,447 1,790 Workforce Training Center 1,239 1,208 1,601 1,426 1,550 Total Non-Credit Enrollment 2,891 3,169 4,051 3,873 3,340 TOTAL HEADCOUNT 32,071 31,432 32,942 30,644 29,100

Applied Technologies 9% Business & Information Technology 20% Communication, Humanities, & Social Sciences 26% Health, Wellness, & Public Safety 17% Math, Science, & Engineering 21% Undecided/Non- Degree 7%

CREDIT ENROLLMENT BY SCHOOL (2015)

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Enrollment by Area

Credit Enrollment Totals 2011 2012 2013 2014 2015 Bernalillo County 23,633 22,268 22,603 20,835 19,773 Sandoval County 4,105 3,884 3,873 3,797 3,541 Other New Mexico 1,838 1,811 1,978 1,892 2,091 Non-New Mexico 194 138 133 163 264 Unknown 178 162 98 84 91 Total 29,948 28,263 28,685 26,771 25,760

• 5,000

10,000 15,000 20,000 25,000 2011 2012 2013 2014 2015

Enrollment Totals

Bernalillo County Sandoval County Other New Mexico Non-New Mexico Unknown

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CNM Student Profile

Other 9% Asian 2% Black 3% Hispanic 49% Native- American 7% White 30%

2015 ETHNICITY

Male 44% Female 56%

2015 GENDER

18 and Under 20% 19-25 40% 26-30 13% 31-40 15% 41-50 7% Over 50 5% Unknown 0%

2015 AGE

FALL ENROLLMENT ETHNICITY 2011 2012 2013 2014 2015 Other 2,735 2,645 2,636 2,548 2,444 Asian 517 504 511 565 501 Black 1,037 961 980 767 681 Hispanic 12,213 12,654 13,249 12,734 12,594 Native-American 2,046 1,925 2,040 1,848 1,761 White 10,632 9,574 9,269 8,309 7,779 Total 29,180 28,263 28,685 26,771 25,760 GENDER 2011 2012 2013 2014 2015 Male 12,929 12,325 12,737 11,690 11,236 Female 16,251 15,938 15,948 15,081 14,524 Total 29,180 28,263 28,685 26,771 25,760 AGE 2011 2012 2013 2014 2015 18 and Under 3,886 4,356 4,839 5,003 5,173 19-25 11,371 11,287 11,274 10,584 10,267 26-30 4,572 4,127 4,032 3,591 3,412 31-40 5,030 4,512 4,522 4,117 3,785 41-50 2,732 2,513 2,444 2,139 1,845 Over 50 1,584 1,466 1,570 1,335 1,277 Unknown 5 2 4 2 1 Total 29,180 28,263 28,685 26,771 25,760

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Staffing

Instruction 64% Academic Support 6% Student Services 13% Institutional Support 8% Maintenance & Operations 6% Public Service 0% Internal Services 3% Auxiliaries 0%

FULL TIME & PART TIME EMPLOYEES

As of August 2016, CNM employs 2,699 individuals:

• 1,209 full time
• 1,269 part time
• 221 work-study students

Bargaining Unit Number of Employees Dues Paying Members Frequency of Negotiations (AVG) Expiration Date Full Time Faculty 357 124 3 years 8/30/2016* Part Time Faculty 1,071 74 2 years 12/31/2015* Instructional Support Unit 152 25 1 year 7/10/2016* Maintenance and Operations 113 13 3 years 6/30/2019 Security 54 10 3 years 6/30/2018 * In or beginning negotiations

Capital Improvement Planning

SECTION IV

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Capital Planning Process

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Overview of Projects to be Funded from 2016 Bonds

Project Project Description Total Project Cost 2016 Bond Funding Smith Brasher Renovation Renovation of building including new lobby area, lecture hall upgrades, classroom upgrades, new HVAC upgrades, new student gathering areas and parking lot improvements. (Main Campus) 24,600,000 2,400,000 Max Salazar Renovation - Phase II Renovation of building including classrooms and academic office

• space. (Main Campus)

25,000,000 1,000,000 Joint Use High School/North Building Demolition Development of a joint-use facility to house classrooms, labs, offices, and other auxiliary spaces to support the CNM Career and College High School and other high school initiatives that arise as the programs develop. Project contingent upon partnership with Albuquerque Public Schools. (Main Campus) 35,000,000 12,500,000 Catering and Brewing Creation of classroom and lab space to accommodate Beer and Wine Academy, Brewing Technology, Catering Operations and Food Truck Commissary and Hub. (Location to be determined) 5,257,674 500,000 Student Services Center Renovation Review current physical structure and develop/design a plan to alter the space to create a more welcoming and connected space. (Main Campus) 2,690,863 2,690,863 J Building Renovation - Phase II Renovation of building including a student learning commons, less mechanical and roof work completed in Phase I. (Montoya Campus) 16,575,000 14,075,000 Site and Safety Improvements Installation of new entrance markers at Rio Rancho and Westside Campuses and way finding signage for building and function location. Project also includes enhanced street and city markers to provide better directional signage to each campus location to enhance and create a safe environment for students and staff. (Rio Rancho Campus and Westside Campus) 3,500,000 3,500,000 Emergency Broadcast and Display for Safety and Security Enterprise digital signage and audible broadcast system. (All campuses) 467,904 467,904 Access Control (All Remaining Phases) Remaining phases of Access Control. (All campuses) 9,500,000 4,866,233 Total 2016 Bond Funds $ 42,000,000

Finances & Budget

SECTION V

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Primary Revenues by Source

Revenue Source FY12 FY13 FY14 FY15 FY16 FY17 Bud State Appropriation 43,008,000 47,750,400 51,971,700 55,644,425 56,801,075 56,080,400 Local Mill Levy 46,179,113 47,702,800 48,602,581 49,257,788 50,512,176 51,182,133 Tuition & Fees 22,696,804 22,047,179 22,432,545 22,611,667 23,166,427 24,895,923 Total 111,883,917 117,500,379 123,006,826 127,513,880 130,479,678 132,158,456

State Appropriation 43% Local Mill Levy 39% Tuition & Fees 18%

FY16 PRIMARY REVENUES BY SOURCE

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New Mexico Higher Education Funding Formula Change

In 2012, the Higher Education Department, together with university and college representatives, developed a performance-based funding formula. Effective Fiscal Year 2013, the new funding formula model was

• implemented. General fund appropriations continue as performance based, with annual updates to formula

inputs. General Fund Appropriation: Funding Formula Comparison OLD FORMULA: FY12 and prior Base Funding from Prior Year + Workload (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 Renewal + 3% Scholarship Funds

• Revenue Credits (Tuition, Mill Levy, Other)

General Fund Appropriation NEW FORMULA: FY13 and future Percent of Protected General Fund Appropriation from Prior Year + End of Course Workload- Student Credit Hours Completed + Outcomes- 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 Appropriation

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Performance Highlights Impacting FY2017 Funding

• Due to declining state revenues, the New Mexico higher education system

experienced an overall decrease in general fund appropriations of -2.40%. However, due to CNM's overall strong performance under the outcomes-based state funding formula, CNM was able to limit its state appropriations funding decrease to only -1.86%.

• The

New Mexico Higher Education Department rewards institutions for increased numbers of awards in three awards-based performance outcome categories: Total Awards, STEMH (Science, Technology, Engineering, Math and Health) 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 credit

student hours which resulted in a formula award distribution of $61,849.

• Finally, CNM's At-risk Awards resulted in $237,881 of outcomes-based

funding, 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%, CNM

saw an increase of 38%.

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NM Higher Education Funding Formula Change – August 2016 CNM’s Strategic Direction, focusing primarily on student success and student completion, has had a positive impact on the growth of General Fund Appropriations. Increases in student performance are reflected in increased state funding until FY17, where strong student performance mitigated against statewide reductions for public colleges and universities.

$56,486,697 $53,435,114 $46,801,000 $47,695,100 $43,008,000 $47,750,400 $51,971,700 $55,644,425 $56,801,075 $56,080,400

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

FY08 - FY17 STATE GENERAL FUND APPROPRIATIONS TREND

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Tuition & Fees

Note: Tuition based on 12 to 18 credit hours. Technology / Facilities Fee assessed per credit hour.

Academic Year Resident Career Technical Education Tuition Resident Academic / Transfer Tuition Non-resident Tuition Registration Fee Technology / Facilities Fee 2016-17 384.00 624.00 3,312.00 40.00 8.00 2015-16 306.00 612.00 3,240.00 40.00 8.00 2014-15 216.00 600.00 3,240.00 40.00 6.00 2013-14 168.00 594.00 3,240.00 40.00 6.00 2012-13 126.00 579.00 3,156.00 40.00 3.00 2011-12 120.00 579.00 3,008.40 40.00 3.00 2010-11 60.00 528.00 2,616.00 40.00 3.00 2009-10

• 492.00

2,400.00 40.00 3.00 2008-09

• 492.00

2,400.00 40.00

• 2007-08
• 496.80

2,648.40 40.00

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On-Going Budget Initiatives

• Comprehensive annual Facilities and Technology Master Planning process implemented, utilizing input

from CNM faculty and staff, vetted by a cross-college team and approved annually by Executive Team and Governing Board.

• Revised annual computer and equipment replacement cycles to focus resources on high-demand student

and workforce programs, increasing delivery of online coursework and training, and automating internal processes.

• Reviewed teaching and staffing needs that resulted in implementing an early retirement option program

and 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-based

tools 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 of

the college’s Enterprise Resource Planning/Business Management System and implementing online vendor registration and bidding tool.

• Incorporated sustainability efforts in plant management, facilities construction and college-wide planning

and education.

• Continued assessment of workforce needs and realigning staff. In 2015-2016, nearly 125 positions were

eliminated through a retirement incentive program and attrition. The College has implemented current best-practices by cross-training staff in student services and business areas.

• Increased revenue streams and reduced administrative costs.

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Historical Fund Balances – Budgetary Basis

* Note – FY16 balances are preliminary

Fiscal Year Ending June 30 Current Funds Capital Outlay Renewal & Replacement Investment in Plant Endowments 2016 25,287,088 6,986,710 8,519,755 205,813,055 1,834,015 2015 18,362,510 9,321,574 6,434,741 203,119,536 1,618,908 2014 19,707,607 10,473,441 11,236,226 193,562,068 1,631,280 2013 27,768,191 11,842,926 15,477,487 186,637,647 1,647,608 2012 28,226,963 13,896,642 16,294,333 180,329,544 1,645,142 2011 27,873,907 13,215,085 23,537,951 156,859,923 1,641,433 2010 26,061,059 26,238,222 15,672,946 149,419,309 1,677,294 2009 23,810,577 46,311,251 13,320,968 108,747,075 1,625,153 2008 25,289,385 39,078,691 10,970,470 100,074,857 1,184,938

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General Fund Trend Revenue by Type as a Percentage of Total I&G Revenue FY08 – FY17 Budget

Year Total Budget State Appropriations State Appr. as % of Total Revenue Local Mill Levy Local Mill Levy as %

• f Total

Revenue Tuition & Fees Tuition & Fees as % of Total Revenue Other Revenue Other as %

• f Total

Revenue FY08 109,342,376 56,486,697 51.66% 37,055,244 33.89% 13,031,169 11.92% 2,769,266 2.53% FY09 111,856,598 53,435,114 47.77% 41,587,128 37.18% 14,326,094 12.81% 2,508,262 2.24% FY10 112,589,625 46,801,000 41.57% 44,355,292 39.40% 18,573,796 16.50% 2,508,262 2.23% FY11 119,467,202 47,695,100 39.92% 45,123,822 37.77% 22,466,426 18.81% 2,859,537 2.39% FY12 115,373,394 43,008,000 37.28% 46,719,113 40.49% 22,696,804 19.67% 4,181,854 3.62% FY13 121,234,046 47,750,400 39.39% 47,702,800 39.35% 22,047,179 18.19% 3,733,667 3.08% FY14 126,636,745 51,971,700 41.04% 48,602,581 38.38% 22,432,545 17.71% 3,629,919 2.87% FY15 131,805,422 55,644,425 42.22% 49,257,788 37.37% 22,611,667 17.16% 4,291,542 3.26% FY16 134,524,422 56,801,075 42.22% 50,512,176 37.55% 23,166,428 17.22% 1,709,967 1.27% FY17 Bud 136,128,169 56,080,400 41.20% 51,182,133 37.60% 24,895,923 18.29% 3,969,713 2.92%

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General Fund Trend Graph

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Bud

Revenue by Type as Percentage of Total I&G Revenue

State Appr. as % of Total Revenue Local Mill Levy as % of Total Revenue Tuition & Fees as % of Total Revenue Other as % of Total Revenue

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Revenues & Expenditures

Continued on next page

CNM Revenues & Expenditures FY12 – FY16*

2012 2013 2014 2015 2016* Operating revenues: Tuition and fees (net of scholarship allowances) $ 14,574,901 14,329,475 12,259,718 11,956,812 14,273,309 Federal grants and contracts 3,639,451 4,399,395 3,681,905 3,872,635 4,651,729 State and local grants and contracts 8,324,322 7,142,462 6,995,348 7,408,201 7,186,786 Sales and services of educational departments 2,903,497 3,058,006 2,977,195 3,511,356 817,962 Auxiliary enterprise 3,384,292 3,305,919 3,416,154 3,149,744 2,187,831 Total operating revenues 32,826,463 32,235,257 29,330,320 29,898,748 29,117,617 Operating expenses: Instruction and general: Instruction 57,520,081 59,736,448 62,317,110 64,015,612 67,906,517 Public service 963,999 1,299,375 739,490 598,785 518,992 Academic support 11,194,500 11,831,538 15,298,519 16,753,114 16,679,055 Student services 17,670,139 17,942,000 21,064,633 22,576,294 23,987,841 Institutional support 15,402,838 17,326,495 19,563,133 20,933,042 22,980,220 Operation and maintenance of plant 14,274,733 13,649,793 15,403,453 16,430,247 15,643,672 Depreciation 8,628,154 10,633,124 11,934,824 12,510,477 13,142,017 Student aid 34,882,079 32,711,027 27,846,000 23,540,699 19,479,869 Auxiliary enterprises 2,408,977 2,484,246 2,294,094 2,050,313 725,648 Other expenses 80,906 97,998 96,293 134,441 122,924 Total operating expenses 163,026,406 167,712,044 176,557,549 179,543,024 181,186,755 Operating loss (130,199,943) (135,476,787) (147,227,229) (149,644,276) (152,069,138)

RBC Capital Markets 33

Revenues & Expenditures

2012 2013 2014 2015 2016* Nonoperating revenues (expenses): State appropriations 43,086,000 47,750,400 51,971,700 55,644,425 56,801,075 Local appropriations – operating 45,975,795 48,251,535 48,507,984 49,165,886 50,137,402 Local appropriations – debt service 9,104,215 9,320,368 9,254,550 9,420,882 9,599,267 Federal pell grant 37,494,345 35,037,002 32,814,882 27,989,753 24,307,690 Gifts 653,906 702,661 644,178 672,975 834,397 Investment income (loss) 202,885 113,576 80,550 122,881 110,094 Interest on capital asset related debt (1,656,960) (1,723,048) (1,908,701) (2,031,153) (1,765,052) Gain (Loss) on disposition of assets (69,844) (118,573) (2,988) (84,536) 33,427 Other nonoperating revenues 281,000 306,023 402,049 462,742 506,991 Other nonoperating expenses

• (4,000,000)
• Net nonoperating revenues (expenses)

135,071,342 139,639,944 137,764,204 141,363,855 140,565,291 Income (loss) before capital grants 4,871,399 4,163,157 (9,463,025) (8,280,421) (11,503,847) Capital appropriations 10,818,207 129,715 977,615 6,812,869 4,209,121 Capital grants and gifts 21,804

• 208,422
• 16,869

Additions to permanent endowments

• 225,000

Total other changes 10,840,011 129,715 1,186,037 6,812,869 4,450,990 Increase (decrease) in net assets 15,711,410 4,292,872 (8,276,988) (1,467,552) (7,052,857) Net assets, beginning of year 232,795,805 248,507,215 252,800,087 244,523,099 97,370,316 Beginning net position recognized by GASB 38

• (145,685,231)
• Net assets, end of year

248,507,215 252,800,087 244,523,099 97,370,316 90,317,459 * FY16 financial data as of 9/15/2016 is unaudited.

Debt Management & Finance Plan

SECTION VI

RBC Capital Markets 35

Bond Sale Calendar

Date Action Responsible Party Thursday, August 18 Deliver draft of proposed form of Notice of Sale resolution and issuance notice (HED) to CNM for comments BC Monday, August 22 Deliver first draft of POS and rating presentation to the working group FA Thursday, August 25 Deliver notice of issuance of bonds to the Higher Education Department and request bonding capacity certificate. CNM Thursday, August 25 Update Finance Committee on the Proposed Bond Sale Friday, September 02 Deliver proposed Notice of Sale resolution to CNM for inclusion in Board briefing package. BC Tuesday, September 13 CNM Board adopts Notice of Sale Resolution CNM, BC, FA Thursday, September 22 Update Finance Committee on the Proposed Bond Sale and on market condition Monday, September 26 Rating Meeting with Moody’s and Standard & Poor’s - Dallas, Texas FA, CNM Thursday, September 29 Deliver proposed form of bond resolution to CNM for inclusion in Board briefing packages BC Sunday, October 02 Publication of Notice of Sale in the Albuquerque Journal (at least one week prior to the sale) BC Monday, October 03 Rating Release FA Monday, October 03 POS posted on MuniHub or Grant Street and electronically disseminated Tuesday, October 11 Sealed & electronic bids received at 9:00 AM MST CNM, BC, FA Tuesday, October 11 Adoption of bond resolution by CNM Board 5:00PM CNM, BC, FA

RBC Capital Markets 36

Bond Sale Calendar – Continued

Date Action Responsible Party Wednesday, October 12 Deliver Adoption Resolution to the Albuquerque Journal BC Friday, October 14 Publication of Adoption Resolution in the Albuquerque Journal BC Friday, October 14 Deliver drafts of closing documents to CNM, RBC and the purchaser FA No earlier than (i.e., no earlier than two weeks prior to delivery) Execution of certificate by HED showing total bonded indebtedness and that bond sale will not cause CNM’s debt to exceed 3% of assessed value of property in the district HED Wednesday, November 02 Request Bonding Capacity Certificate that sale will not cause the District's total indebtedness to exceed 3% of the assessed valuation of taxable property within the District [check with HED about procedures and specific requirements; check AG’s checklist on timing] FA, BC Wednesday, November 02 Send draft transcript to the Attorney General for review and approval FA, BC Tuesday, November 08 Pre-closing - signatures prior to regular board meeting CNM, BC, FA Monday, November 14 Expiration of 30-day statute of limitations for issuance of bonds Thursday, November 17 Closing CNM, BC, FA Thursday, November 17 Legal opinions & debt schedule sent to HED BC, FA After Sale before construction Presentation of capital projects application to the NM Higher Education Department for approval at the “capital projects meeting” CNM

Notes:

Code Participant Role CNM Central New Mexico Community College Issuer BC Modrall Sperling Bond Counsel FA RBC CM Financial Advisor

The Albuquerque Journal is a daily newspaper. The deadline for submission of legal notices for Wed.-Sat. is 9:00 a.m. two days before publication; for Sunday, Thursday at 11:00 a.m.; for Monday, Friday at 9:00 a.m.; and for Tuesday, Friday at 11:00 a.m. Telephone 823-4444. Facsimile submissions accepted 823-3368.

Working Group Key

RBC Capital Markets 37

Bonding Capacity

11/01/2016 Election Amount Approved by Voters on 2/2/2016 $84,000,000 Authorized but Unissued Bonds After Issuance of Series 2016 $42,000,000 2016 Preliminary Assessed Valuation $17,805,807,927 Constitutional Debt Limitation (3% of Assessed Valuation) $534,174,238 Less Current Debt Outstanding 63,315,000 Plus Series 2016 Bonds 42,000,000 Available Debt Capacity $512,859,238 % Bonded to Capacity 19.72% Bonding Capacity

RBC Capital Markets 38

Outstanding Debt – Current

Issue Security Amount Outstanding Callable Amount Outstanding Call Date Remaining Average Life Coupons Final Maturity Comments 2009 Bonds Limited Tax GO $7,700,000 $4,650,000 8/15/2019 @ 100% 16.27 3.00% - 4.50% 2024 New money 2011 Bonds Limited Tax GO 22,400,000 19,050,000 8/15/2021 @ 100% 9.15 2.50% - 4.00% 2026 New money 2014A Bonds Limited Tax GO 23,300,000 13,150,000 8/15/2023 @ 100% 11.94 3.00% - 5.00% 2028 New money 2014B Bonds Limited Tax GO 9,915,000 2,335,000 8/15/2020 @ 100% 7.73 3.00% - 5.00% 2021 Refund Series 2006 $63,315,000 $39,185,000

TEY 6/30 Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total 2017 1,150,000 $ 327,500 $ 1,477,500 $ 1,200,000 $ 791,250 $ 1,991,250 $ 1,450,000 $ 913,750 $ 2,363,750 $ 1,700,000 $ 449,050 $ 2,149,050 $ 5,500,000 $ 2,481,550 $ 7,981,550 $ 2018 1,150,000 281,500 1,431,500 1,210,000 761,250 1,971,250 1,450,000 841,250 2,291,250 1,760,000 364,050 2,124,050 5,570,000 2,248,050 7,818,050 2019 750,000 235,500 985,500 1,620,000 731,000 2,351,000 1,450,000 768,750 2,218,750 1,795,000 276,050 2,071,050 5,615,000 2,011,300 7,626,300 2020 750,000 205,500 955,500 1,500,000 690,500 2,190,500 1,450,000 696,250 2,146,250 2,325,000 186,300 2,511,300 6,025,000 1,778,550 7,803,550 2021 750,000 171,750 921,750 1,500,000 645,500 2,145,500 1,450,000 623,750 2,073,750 2,335,000 70,050 2,405,050 6,035,000 1,511,050 7,546,050 2022 1,150,000 138,000 1,288,000 3,600,000 600,500 4,200,500 1,450,000 551,250 2,001,250 6,200,000 1,289,750 7,489,750 2023 1,000,000 86,250 1,086,250 3,500,000 456,500 3,956,500 1,450,000 478,750 1,928,750 5,950,000 1,021,500 6,971,500 2024 1,000,000 41,250 1,041,250 3,500,000 316,500 3,816,500 1,450,000 420,750 1,870,750 5,950,000 778,500 6,728,500 2025 3,600,000 176,500 3,776,500 2,350,000 362,750 2,712,750 5,950,000 539,250 6,489,250 2026 1,170,000 59,500 1,759,500 3,100,000 292,250 3,392,250 4,270,000 351,750 4,621,750 2027 3,100,000 199,250 3,299,250 3,100,000 199,250 3,299,250 2028 3,150,000 102,375 3,252,375 3,150,000 102,375 3,252,375 7,700,000 $ 1,487,250 $ 9,187,250 $ 22,400,000 $ 5,229,000 $ 28,159,000 $ 23,300,000 $ 6,251,125 $ 29,551,125 $ 9,915,000 $ 1,345,500 $ 11,260,500 $ 63,315,000 $ 14,312,875 $ 77,627,875 $

Series 2014B Total Outstanding Series 2014A Series 2011 Series 2009

RBC Capital Markets 39

Debt Service Requirements

Over 80% of GOB debt will be retired in 10 years!

TYE Principal 30-Oct Principal Interest Total Principal Interest Total Principal Interest Total Outstanding Cumulative 2017 $5,500,000 $2,481,550 $7,981,550 6,500,000 $1,250,667 7,750,667 $12,000,000 $3,732,217 $15,732,217 $12,000,000 11.39% 2018 5,570,000 2,248,050 7,818,050 8,300,000 1,420,000 9,720,000 13,870,000 3,668,050 17,538,050 13,870,000 13.17% 2019 5,615,000 2,011,300 7,626,300 1,950,000 1,088,000 3,038,000 7,565,000 3,099,300 10,664,300 7,565,000 31.75% 2020 6,025,000 1,778,550 7,803,550 1,950,000 1,010,000 2,960,000 7,975,000 2,788,550 10,763,550 7,975,000 39.32% 2021 6,035,000 1,511,050 7,546,050 1,950,000 932,000 2,882,000 7,985,000 2,443,050 10,428,050 7,985,000 46.90% 2022 6,200,000 1,289,750 7,489,750 1,950,000 854,000 2,804,000 8,150,000 2,143,750 10,293,750 8,150,000 54.64% 2023 5,950,000 1,021,500 6,971,500 2,000,000 776,000 2,776,000 7,950,000 1,797,500 9,747,500 7,950,000 62.19% 2024 5,950,000 778,500 6,728,500 2,000,000 696,000 2,696,000 7,950,000 1,474,500 9,424,500 7,950,000 69.74% 2025 5,950,000 539,250 6,489,250 2,200,000 616,000 2,816,000 8,150,000 1,155,250 9,305,250 8,150,000 77.48% 2026 4,270,000 351,750 4,621,750 2,200,000 528,000 2,728,000 6,470,000 879,750 7,349,750 6,470,000 83.62% 2027 3,100,000 199,250 3,299,250 2,200,000 440,000 2,640,000 5,300,000 639,250 5,939,250 5,300,000 88.65% 2028 3,150,000 102,375 3,252,375 2,200,000 352,000 2,552,000 5,350,000 454,375 5,804,375 5,350,000 93.73% 2029 2,200,000 264,000 2,464,000 2,200,000 264,000 2,464,000 2,200,000 95.82% 2030 2,200,000 176,000 2,376,000 2,200,000 176,000 2,376,000 2,200,000 97.91% 2031 2,200,000 88,000 2,288,000 2,200,000 88,000 2,288,000 2,200,000 100.00% Total $63,315,000 $14,312,875 $77,627,875 $42,000,000 $10,490,667 $52,490,667 $105,315,000 $24,803,542 $130,118,542 $105,315,000 (1) Preliminary, subject to change. Average Interest rate of 4% was used for illustrational purposes only. Present Requirements Series 2016 (1) Total Requirements

Tax Base Information

SECTION VII

RBC Capital Markets 41

Assessed Valuation

Tax Central New Mexico % Growth Over Year Residential Non-Residential Centrally Assessed Community College Previous Year 2007 $9,006,843,994 58.54% 3.99% $5,858,067,885 38.08% 39.92% $519,923,463 3.38% 7.28% $15,384,835,342 15.39% 2008 11,850,036,647 72.03% 31.57% 4,072,104,901 24.75%

• 30.49%

529,783,095 3.22% 1.90% 16,451,924,643 6.94% 2009 12,425,441,052 71.12% 4.86% 4,554,045,336 26.07% 11.84% 492,360,473 2.82%

• 7.06%

17,471,846,861 6.20% 2010 12,145,322,572 72.02%

• 2.25%

4,301,523,400 25.51%

• 5.55%

417,413,475 2.48%

• 15.22%

16,864,259,447

• 3.48%

2011 12,183,978,327 74.08% 0.32% 3,709,653,790 22.56%

• 13.76%

552,605,829 3.36% 32.39% 16,446,237,946

• 2.48%

2012 12,219,893,918 74.15% 0.29% 3,703,861,661 22.47%

• 0.16%

556,205,288 3.38% 0.65% 16,479,960,867 0.21% 2013 12,427,468,679 75.05% 1.70% 3,607,129,356 21.78%

• 2.61%

523,293,887 3.16%

• 5.92%

16,557,891,922 0.47% 2014 12,857,739,256 74.84% 3.46% 3,774,449,235 21.97% 4.64% 547,853,036 3.19% 4.69% 17,180,041,527 3.76% 2015 13,176,671,365 75.38% 2.48% 3,748,117,273 21.44%

• 0.70%

555,254,334 3.18% 1.35% 17,480,042,972 1.75% 2016* 13,592,104,025 76.34% 3.15% 3,634,977,949 20.41%

• 3.02%

578,725,953 3.25% 4.23% 17,805,807,927 1.86%

*Preliminary

1.60% 2.94% Source: Bernalillo and Sandoval County Assessor's Office 5 Year Average Annual Growth 10 Year Average Annual Growth % of Total AV % of Total AV % of Total AV YoY % Growth YoY % Growth YoY % Growth

• 5.00%
• 2.50%

0.00% 2.50% 5.00% 7.50% 10.00% 12.50% 15.00% 17.50% $0 $2,000,000,000 $4,000,000,000 $6,000,000,000 $8,000,000,000 $10,000,000,000 $12,000,000,000 $14,000,000,000 $16,000,000,000 $18,000,000,000 $20,000,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

Breakdown of Assessed Valuation

Residential Non-Residential Centrally Assessed % Change Over Previous Year 10-Yr.Average Annual Growth

RBC Capital Markets 42

New vs. Re-Appraisal

Source: Bernalillo County & Sandoval County Assessor’s Office 2015 New Re-Appraisal 2016* Protested Property Protested Value Back

• n Tax Roles

% of Protested Final Value % Growth Bernalillo County 11,235,749,920 $ 130,411,253 $ 1.16% 249,107,952 $ 2.22% 11,615,269,125 $ 3.38% 102,366,574 $ Sandoval County 1,940,921,445 40,258,877 2.07% (4,345,422)

• 0.22%

1,976,834,900 1.85% 4,993,119 Total Residential 13,176,671,365 $ 170,670,130 $ 1.30% 244,762,530 $ 1.86% 13,592,104,025 $ 3.15% 107,359,693 $ Bernalillo County 3,307,212,033 $ 29,166,624 $ 0.88% (138,121,565) $

• 4.18%

3,198,257,092 $

• 3.29%

146,447,969 $ Sandoval County 440,905,244 42,983,654 9.75% (47,168,041)

• 10.70%

436,720,857

• 0.95%

16,781,776 Total Non-Residential 3,748,117,277 $ 72,150,278 $ 1.92% (185,289,606) $

• 4.94%

3,634,977,949 $

• 3.02%

163,229,745 $ Total Assessor's Valuation 16,924,788,642 $ 242,820,408 $ 1.43% 59,472,924 $ 0.35% 17,227,081,974 $ 1.79% 270,589,438 $ Total Central Assesment 555,253,265 $ 578,725,953 $ 4.23% 14,619 $ TOTAL AV 17,480,041,907 $ 242,820,408 $ 1.39% 59,472,924 $ 0.34% 17,805,807,927 $ 1.86% 270,604,057 $ 2014 New Re-Appraisal 2015* Protested Property Protested Value Back

• n Tax Roles

% of Protested Final Value % Growth Bernalillo County 11,021,769,490 $ 79,397,304 $ 0.72% 157,852,478 $ 1.43% 11,259,019,272 $ 2.15% 76,405,501 $ 56,851,210 $ 74.41% 11,315,870,482 $ 2.67% Sandoval County 1,914,589,266 25,081,607 1.31% (5,304,095)

• 0.28%

1,934,366,778 1.03% 6,614,012 6,554,667 99.10% 1,940,921,445 1.38% Total Residential 12,936,358,756 $ 104,478,911 $ 0.81% 152,548,383 $ 1.18% 13,193,386,050 $ 1.99% 83,019,513 $ 63,405,877 $ 76.37% 13,256,791,927 $ 2.48% Bernalillo County 3,328,895,060 $ 33,492,920 $ 1.01% (179,634,974) $

• 5.40%

3,182,753,006 $

• 4.39%

173,381,943 $ 136,933,741 $ 78.98% 3,319,686,747 $

• 0.28%

Sandoval County 457,810,383 33,224,394 7.26% (65,351,562)

• 14.27%

425,683,215

• 7.02%

17,843,042 15,222,029 85.31% 440,905,244

• 3.69%

Total Non-Residential 3,786,705,443 $ 66,717,314 $ 1.76% (244,986,536) $

• 6.47%

3,608,436,221 $

• 4.71%

191,224,985 $ 152,155,770 $ 79.57% 3,760,591,991 $

• 0.69%

Total Assessor's Valuation 16,723,064,199 $ 171,196,225 $ 1.02% (92,438,153) $

• 0.55%

16,801,822,271 $ 0.47% 274,244,498 $ 215,561,647 $ 78.60% 17,017,383,918 $ 1.76% Total Central Assesment 547,853,036 $ 555,254,334 $ 1.35% 41,030 $ 717,967 $ 0.13% 555,972,301 $ 1.48% TOTAL AV 17,270,917,235 $ 171,196,225 $ 0.99% (92,438,153) $

• 0.54%

17,357,076,605 $ 0.50% 274,285,528 $ 216,279,614 $ 78.85% 17,573,356,219 $ 1.75% * Preliminary. Source: Bernalillo County and Sandoval County Assessor''s Office (PTD-13 Reports)

RBC Capital Markets 43

Major Taxpayers

2015 % of Taxpayer Business Assessed Valuation Total A.V. Public Service Co. of New Mexico Electric Utility $245,263,880 1.40% QWest Communications Telecommunications 51,151,919 0.29% Gas Company of New Mexico Gas Utility 48,301,651 0.28% Verizon Wireless Communications 28,370,564 0.16% Simon Property Group Retail 22,117,361 0.13% AHS Medical Center Medical 20,970,632 0.12% Southwest Airlines Airline 20,459,244 0.12% AT&T Wireless Communications 19,655,876 0.11% ABQ Uptown LLC Retail 15,960,737 0.09% ABQ Plaza Office Investment Real Estate 15,765,789 0.09% Top Ten Centrally and Locally Assessed Values $488,017,653 2.79% Source: Bernalillo County Assessor's Office and NM Taxation & Revenue Department.

RBC Capital Markets 44

Historical Tax Rates – Bernalillo County

Total Levy 2016 2015 2014 2013 2012 State of New Mexico $0.000 $0.000 $0.000 $0.000 $0.000 Bernalillo County 7.090 7.245 7.254 7.320 7.208 City of Albuquerque 6.339 6.493 6.494 6.544 6.544 AMAFCA 0.173 0.177 0.177 0.179 0.176 Albuquerque MSD # 12 0.270 0.275 0.276 0.278 0.274 Total $14.190 $14.201 $14.321 $14.202 State of New Mexico $1.360 $1.360 $1.360 $1.360 $1.360 Bernalillo County 1.265 1.476 1.277 1.259 0.910 City of Albuquerque 4.976 4.976 4.976 4.976 4.976 AMAFCA 0.675 0.675 0.675 0.675 0.675 Albuquerque MSD #12 10.217 10.256 10.255 10.187 10.189 UNM Hospital 6.198 6.334 6.342 6.400 6.400 Central NM Community College (Operating) 2.776 2.831 2.827 2.842 2.794 Central NM Community College (Debt Service) 1.000 0.550 0.550 0.550 0.550 Total $28.458 $28.262 $28.249 $27.854 City of Albuquerque 2016 2015 2014 2013 2012 State of New Mexico $1.360 $1.360 $1.360 $1.360 $1.360 Bernalillo County 8.355 8.721 8.531 8.579 8.118 City of Albuquerque 11.315 11.469 11.470 11.520 11.520 AMAFCA 0.848 0.852 0.852 0.854 0.851 Albuquerque MSD #12 10.487 10.531 10.531 10.465 10.463 UNM Hospital 6.198 6.334 6.342 6.400 6.400 Central NM Community College 3.776 3.381 3.377 3.392 3.344 Total Residential in Albuquerque $42.339 $42.648 $42.463 $42.570 $42.056 Total Non-Residential in Albuquerque $46.788 $46.336 $46.132 $45.995 $45.648 Source: New Mexico Department of Finance and Administration

Within 20 Mill Limit for General Purposes

Over 20 Mill Limit - Interest, Principal, Judgement, etc.

TOTAL LEVY

RBC Capital Markets 45

Historical Tax Rates – Sandoval County

Total Levy 2015 2014 2013 2012 2011 State of New Mexico $0.000 $0.000 $0.000 $0.000 $0.000 Sandoval County 6.339 6.240 6.137 5.964 5.621 SSCAFCA 0.828 0.828 0.828 0.828 0.844 City of Rio Rancho 7.426 7.307 7.181 6.990 6.518 Rio Rancho Schools 0.262 0.258 0.254 0.247 0.230 Total $14.855 $14.633 $14.400 $14.029 $13.213 State of New Mexico $1.360 $1.360 $1.360 $1.360 $1.362 Sandoval County 0.852 0.539 1.030 1.031 1.038 SSCAFCA 1.249 1.248 1.248 1.247 1.023 City of Rio Rancho 1.848 1.881 1.789 1.617 1.645 Rio Rancho Schools 10.540 10.524 10.537 10.538 10.542 UNM Hospital 4.250 4.250 4.250 4.250 4.250 Central NM Community College (Operating) 2.831 2.827 2.842 2.794 2.687 Central NM Community College (Debt Service) 0.550 0.550 0.550 0.550 0.550 Total $23.480 $23.179 $23.606 $23.387 $23.097 City of Rio Rancho 2015 2014 2013 2012 2011 State of New Mexico $1.360 $1.360 $1.360 $1.360 $1.362 Sandoval County 7.191 6.779 7.167 6.995 6.659 SSCAFCA 2.077 2.076 2.076 2.075 1.867 City of Rio Rancho 9.274 9.188 8.970 8.607 8.163 Rio Rancho Schools 10.802 10.782 10.791 10.785 10.772 UNM Hospital 4.250 4.250 4.250 4.250 4.250 Central NM Community College 3.381 3.377 3.392 3.344 3.237 Total Residential in Rio Rancho $38.335 $37.812 $38.006 $37.416 $36.310 Total Non-Residential in Rio Rancho $40.354 $39.256 $41.003 $37.840 $35.633 Source: New Mexico Department of Finance and Administration

Within 20 Mill Limit for General Purposes

Over 20 Mill Limit - Interest, Principal, Judgement, etc.

TOTAL LEVY

Economic Review

Section VIII

RBC Capital Markets 47

Overview of Economy – Albuquerque MSA

Manufacturing Intel (Semiconductor Mfg.) Honeywell Aerospace (Aircraft Avionics Mfg.) Ethicon Endo-Surgery (Medical Instruments Mfg.) Thomas & Betts (Electrical Connectors Mfg.) General Mills (Cereal & Snack Food Mfg.) Sennheiser (Headphone & Microphone Mfg.) TempurPedic (Mattresses) Sumitomo Electric (Fiber Optics / VCSELS Mfg.) Vitality Works (Herbal Supplements Mfg.) Eclipse Aerospace (Jet Aircraft Mfg.) Kabana Inc. (Jewelry Mfg.) Flagship Food Group, LLC (Food Mfg.) NM Food Distributors (Food Mfg.) United Poly (High Density Polyethylene Pipe Mfg.) Los Poblanos (Lavender Products Mfg.) Public Sector Kirtland Air Force Base (Military 377th Air Base Wing) Albuquerque Public Schools (Public School System) Sandia National Labs (Federal Government Department of Energy) Air Force Research Laboratory (Federal Government Department of Defense) City of Albuquerque (Local Municipal Government) Bernalillo County (Local County Government) U.S. Forest Service (National Administration/Financial Service Center) State of New Mexico (State Government)

RBC Capital Markets 48

Overview of Economy – Albuquerque MSA

Tourism International Balloon Fiesta Old Town Resorts & Casinos Golf Courses (15 total - 5 ranked nationally) Film Festivals Rail Runner Agritourism Higher Education University of New Mexico CNM Community College College of Santa Fe Highlands University New Mexico Institute Mining & Technology Pima Medical Webster University University of Phoenix New Mexico State University Brookline College Medical & Health NM Veterans Affairs Healthcare Presbyterian Hospitals Lovelace Hospitals Heart Hospital of New Mexico UNM Hospitals Lovelace Respiratory Research Institute Mind Research Network Other Businesses in Bernalillo County Outcomes (Healthcare Data Auditing and Analytics) Molina Healthcare (Data Center) Nova Corp. (Data Center) PR Newswire (Operations Center) HB Construction (Construction and Retail) Prime Therapeutics (Mail Service Pharmacy) Rio Bravo Brewery (Brewery, Canning, and Botting) Businesses in Unincorporated Bernalillo County Admiral Beverage (Beverage Distribution Center) US Foods (Food Products Distribution Center) Wagner Equipment (Manufacturing, Repair, and Retail)

RBC Capital Markets 49

Overview of Economy – Albuquerque MSA

Notable Technology Companies in the Metro Area Emcore (Compound Semiconductors; Solar Panels) Raytheon (Engineering, Specialty Manufacturing) CVI Melles Griot (Laser Optics Manufacturer) Applied Research Associates, Inc. (Engineering, R&E for Extreme Environments) QinetiQ (Management & Technology Consulting) Boeing SVS CFV Solar Testing Laboratory and Fraunhofer USA, Inc. Bendix King (Honeywell) (Corp. HQ and Avionics Development) LAVU (Software Development) Ultramain Systems (Aircraft Maintenance Software) ePay (Software credit card processing) Skorpios Technologies Inc (Fabless Semiconductor) Major Back Office Employers Verizon (Customer Service Center) T-Mobile (Customer Service Center) Stream Global Services (Account Collection) Lowe’s Home Stores (Customer Support Center) SiTel (Customer Service Center) Sprint PCS (Customer Service Center) Bank of America (Customer Service Center) Gap Inc. (Corporate Shared Services Center) Express Scripts (Prescription Mail Order) Blue Cross / Blue Shield (Claims Processing) Canon ITS (Technical Support) Fidelity Investments (Human Resources Services) S&P Data, LLC (Data analysis) National American University ( Distance Learning National Operations Center)

RBC Capital Markets 50

Economic Update – Albuquerque MSA

• Molina Healthcare, a California-based health insurance provider with operations in New Mexico, announced it will be

ramping up hiring in the state. The company planned to add 160 employees to its downtown call center, with 40 of those positions already filled and 120 to be filled through the remainder of the summer and into fall.

• Albuquerque is home to a new toxicology reference laboratory. Southwest Labs is an Albuquerque-based company that

focuses on clinical drug testing in support of state-mandated Prescription Drug Monitoring Programs (PDMPs). The company employs 14 people in technical and administrative positions and plans to employ another 15 to 20 sample collectors in the future.

• A Comfort Suites-branded hotel is being planned near Albuquerque International Sunport. The 52,000-square-foot hotel

will feature 80 rooms, a swimming pool, and a fitness center. A typical Comfort Inn or Comfort Suites employs between ten and 19 people.

• Nordstrom Rack will open on October 6. The store is seeking to hire about 55 people.
• Fidelity Investments has announced it plans to hire an additional 250 people for its Albuquerque call center. The

expansion comes on top of an additional 300 jobs added by the company in the last two years. The new positions will bring the company’s Albuquerque employment total to 1,125.

• Mako Medical Laboratories plans to open a location in the Duke City. The company’s new location will create 100 new

jobs.

• Sitel, the customer-service call center has been hiring around 350 full-time permanent and seasonal workers in 2016 for

its Albuquerque center.

• A unique development is coming to New Mexico’s Sandia Mountains. Peak Dining LLC and Sandia Peak Ski Co. will be

investing $9 million in industrial revenue bonds (IRBs) to build a mountain roller coaster and rebuild the existing High Finance Restaurant at Sandia Peak. The two companies estimate that the projects will create 114 jobs.

• Centria Healthcare, a provider of in-home and clinical services to children and young adults with autism, has opened an
• ffice in Albuquerque. The company reported that it has hired 15 trained clinic staff for the new location but plans to hire

up to 200 people over the next 18 months, as its New Mexico operations grow.

• Lovelace Medical Group will be building a 9,000-squarefoot clinic in Albuquerque’s South Valley
• A Freddy’s Frozen Custard & Steakburgers is being developed across from the University of New Mexico. A Freddy’s

location employs 20 to 49 people.

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Economic Update – Albuquerque MSA - Continued

• Los Lunas could be the home of a new industrial park. RIO Real Estate Investment Opportunities, a New Mexico real

estate development company that specializes in brokerage, land use planning, and investment partnerships, is requesting that 1,400 acres about four miles west of Los Lunas be annexed into the village. The park would be located

• n the BNSF main line and would offer access to the ocean ports of southern California and Chicago. RIO has not

announced any tenants for the park, but manufacturers, warehouse and distribution companies, and third-party logistics

• perators would fall among potential types of tenants.
• Facebook has announced it will build a massive data center in Los Lunas. Facebook is scheduled to break ground in

October, and the data center is expected to be fully operational by late 2018. The first phase of the project – there could be up to six phases – will cost $250 million and bring an estimated 30 to 50 data center jobs and 300 hundred construction jobs to Los Lunas.

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New Developments & Expansion Update Sandoval County

• PCM, a technology solutions provider of hardware, software, and services to business, government and educational

institutions, has selected Rio Rancho for the home of its new sales center. The company will hire 220 for sales positions.

• Bank of America is expanding its Rio Rancho call center and adding 300 workers to support the growing ATM Video

Teller Assist initiative. The company also intends to hire an additional 40 workers for existing customer support

• perations at the site.
• Convergys Corporation, formerly Stream Global, announced plans to add 250 jobs in 2016.
• Safelite AutoGlass, the largest auto glass specialist in the U.S., announced it will open a contact center in early 2017 in

the building previously occupied by Sprint. The company will hire 900 or more workers for a mix of full- and part-time positions; about 60 to 70 percent of the positions will be full-time, according to a company spokesperson.

• The Neighborhood in Rio Rancho, a new life-care community in Rio Rancho, has opened after about 18 months of
• construction. The Neighborhood anticipates employing 120 people once demand for more medically intensive care

increases; it has already hired 80 staff.

• Aloha RV opened its second New Mexico dealership in March Aloha RV’s other dealership is located in Albuquerque and

employs 50 to 99 people.

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Major Employers

Employer Business # of Employees University of New Mexico Education 16,046 Albuquerque Public Schools Education 14,810 Sandia National Labs Research Development 8,400 Kirtland AFB (Civilian) Defense 7,686 Presbyterian Healthcare 7,310 City of Albuquerque Government 6,940 UNM Hospital Healthcare 6,021 State of New Mexico Government 4,950 Kirtland AFB (Military) Air Force Material Command 4,184 Lovelace Healthcare 4,000 Central NM Community College Education 3,324 New Mexico Veterans Affairs Hospital Healthcare 2,760 Bernalillo County Government 2,648 Intel Corporation Semiconductor Manufacturer 2,300 Rio Rancho Public Schools Education 2,000 Sandia Resort & Casino Resort & Casino 2,000 Source: Albuquerque Economic Development, Data as of 2-18-2016 http://www.abq.org/uploads/files/ABQ%20MSA%20Major%20Employers_2-18-2016.pdf

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Demographics

Census City of Albuquerque State of Year Rio Rancho MSA New Mexico 1970

• 373,812

1,017,055 1980 9,985 515,776 1,303,143 1990 32,505 589,131 1,515,069 2000 51,765 729,648 1,826,280 2010 87,521 887,077 2,065,826 2014* 93,820 904,720 2,085,572 2016(1) 95,070 908,252 2,088,585 2021(1) 100,005 923,964 2,111,960

*Estimates. Source: U.S. Census Bureau: State and County QuickFacts. Last Revised: March -2015 (1) Estimates. Source: The Nielsen Company, March 2016 (2) Projected. Source: The Nielsen Company, March 2016 Projected Growth 2016-2021 (2) 5.19% 1.73% 1.12% New United Mexico States 0 - 17 23.40% 24.19% 22.97% 18 - 24 9.27% 9.87% 9.84% 25 - 34 13.97% 13.26% 13.35% 35 - 44 12.63% 11.84% 12.63% 45 - 54 12.79% 12.20% 13.33% 55 and Older 27.94% 28.64% 27.88%

Source: The Nielsen Company, March 2016

Percent of Population Age Group Albuquerque MSA

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 0 - 17 18 - 24 25 - 34 35 - 44 45 - 54 55 and Older Albuquerque MSA New Mexico United States

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Labor Force

2016 (2) 419,917 6.50% 928,917 7.10% 5.10% 2015 413,906 6.20% 919,889 6.60% 5.30% 2014 414,571 6.60% 918,206 6.50% 6.20% 2013 415,874 6.80% 922,960 6.90% 7.40% 2012 418,195 7.10% 928,050 7.10% 8.10% 2011 421,377 7.50% 929,862 7.60% 8.90% 2010 424,972 8.00% 936,088 8.10% 9.60% 2009 404,223 7.80% 940,352 7.50% 9.30% 2008 407,340 4.60% 944,548 4.50% 5.80% 2007 404,249 3.70% 934,027 3.80% 4.60% (1) Numbers are annual averages. (2) Data for the month of July 2016. Numbers are Preliminary. Source: U.S. Bureau of Labor Statistics, August 2016. Year(1) Albuquerque MSA State of New Mexico United States Labor Force % Unemployed Labor Force % Unemployed % Unemployed

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Unemployment History

United States New Mexico Albquerque MSA

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Effective Buying Income and Estimated Median Household Income

Effective Buying Albuquerque New United Income Group MSA Mexico States Under $25,000 26.77% 29.15% 22.72% $25,000 - $34,999 10.89% 11.18% 9.97% $35,000 - $49,999 13.41% 13.88% 13.41% $50,000 - $74,999 18.34% 17.21% 17.60% $75,000 & Over 30.59% 28.57% 36.30% 2012 Est. Median Household Income $45,942 $41,958 $49,581 2013 Est. Median Household Income $48,494 $43,273 $49,297 2014 Est. Median Household Income $44,391 $44,292 $51,579 2015 Est. Median Household Income $48,234 $45,633 $53,706 2016 Est. Median Household Income $48,792 $45,445 $55,551

Source: The Nielsen Company, March 2016

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% Under $25,000 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 & Over Albuquerque MSA New Mexico United States

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QUESTIONS?