grinnell college: series 2017 bond issue · 2016-12-30 · series 2017 bond issue december 29, 2016...

Grinnell College:Series 2017 Bond Issue

December 29, 2016

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2Snapshot of Grinnell College

4-year private residential liberal arts college Central Iowa town of approximately 10,000 residents ~1,650 students

Highly selective Applications for Fall 2016: 7,370 Fall 2016 openings: ~440 Admit rate: ~20%

Academically rigorous Average SAT: 1415 >85% in top 10% of HS graduating class

Diverse in many ways 18% international 25% domestic students of color 90% receive financial aid 20% receive Pell grants 49 states and 48 foreign countries

Committed to financial access Need blind Meet 100% of demonstrated need Average indebtedness of 2016 graduates:

$18,780

Growing Demand and Quality

2011-2012 2016-2017COMP FEE $46,362 $60,738

Applications 2,969 7,370Percent admitted 44.8% ~20%Average SAT 1,315 1,415Top 10% of class 61.6% >85%

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Investing in Our MissionPhase I of 20-year Campus Investment Plan

Teaching & Learning:

Humanities &Social Studies

Complex (HSSC)

Attracting Students, Faculty & Staff:

Admission &Financial Aid

Center

Defining our Place:

Landscaping, Wayfinding, and

partial implementation

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PHASE I: Campus Investment Plan (2014-2020)

Investing in Our Mission5

Humanities & Social Studies Complex (HSSC)Teaching & Learning

Essential to our mission to teach the Liberal Arts using the most effective tools and practices.

Creates innovative learning spaces to encourage multi-disciplinary collaboration, active inquiry, and student research.

Bold, exciting, and highly responsive to the mission and vision for academic excellence at Grinnell.

Admissions & Landscaping Attracting Exceptional Students, Faculty & Staff Upgrade campus welcome and ambience.

Augment ability to attract and retain diverse and talented students, faculty, and staff.

Phase I: Estimated Total Project Cost

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Phase I ProjectsOct 2016 Estimate with HSSC GMP*

HSSC $ 112.7MAdmission/Financial Aid Center $ 11.8MLandscaping Plan & Partial Implementation

$ 13.8M

Phase I Estimated Total $138.3M* Construction Guaranteed Maximum Price

includes escalation through May 2019

At its April 2016 meeting, the Board approved a not-to-exceed Phase I project budget of

$140M.

Phase I: 3 projectsProposed Financing Plan

Not-to-exceed

$140M

GIFTS$20M

DEBTUp to $120M

ENDOWMENTCash Flow Support:

Pledges Receivable

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Authorized by the Board at the

October 2016 meeting

The HSSC Program Developed with input from faculty, staff,

and students

~195,000 gross square feet, blending historic and new

33 classrooms (mix of S, M, L, XL)

6 inquiry labs (mixed sizes)

5 learning centers (Global, DASIL, CTLA, Writing, and Reading)

Auditorium seating 160

145 offices

Atrium (~7,000 sq ft)

4 elevators (one per pavilion)

9 stairways

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9Why now?

ARH

Carnegie

“The HSSC is essential to our vision for innovation at Grinnell. This project will place us at the forefront of inquiry-led, interdisciplinary teaching and learning.”

Dean Michael Latham

10Humanities & Social Studies Complex

11HSSC: Where we are today…

Completed Design Development review (DD) Thorough review of blueprints, elevations, and specs (~400 pages)

Completed Summer 2016 site work on time and within the quoted GMP Utility relocation, including IT infrastructure rerouting 3 geothermal test wells

Construction Documents (CD) nearly complete

On track to break ground Jan 2017

Admission/Financial CenterConceptual Design (subject to final review & approval)

Solar panels

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Where we are today…13

Conceptual Design nearing completion

First round of construction cost estimating underway

1. STRATEGIC RESERVE – $25M target As of June 30, 2016: $15.4M PURPOSE: Innovation and strategic investments One-time, pilot, and continuing 2-3 years of funding (time to pilot , test, and refine) Funding ends or transitions to operating budget

2. ZONE RESERVE – $10M target As of June 30, 2016: $0 (newly created reserve) PURPOSE: Investment in our location as an essential part of our future Land banking and development in Zone of Confluence Community partnership Town/gown synergy, etc.

14“Opportunity” Reserves

3. OPERATING RESERVE – $30M target As of June 30, 2016: $10.7M PURPOSE: Protect against unanticipated hits to the operating budget, e.g.

endowment value drop, enrollment dip, compliance mandates, legal expenses, etc.

Adequate support to weather unexpected challenges ~3 months of annual operating expenses

4. BM&E RESERVE – $5M target As of June 30, 2016: $3.4M PURPOSE: Building Maintenance & Equipment (BM&E) Larger facility maintenance and technology projects (typically <$1M) On-going life cycle technology and facility equipment replacement

5. CAPITAL RESERVE – $30M target As of June 30, 2016: $0 (newly created reserve) PURPOSE: Smooth impact of significant, periodic capital consumption Major infrastructure maintenance and modification Potential support for new project planning and construction

15“Risk Mitigation” Reserves

16Endowment Market Value (millions)As of FYE June 30

$0

$180

$360

$540

$720

$900

$1,080

$1,260

$1,440

$1,620

$1,800

$1,980

Fiscal Year

Unrestricted: 68.9% (SOURCE: Note 3 to the audited financial statements)Monthly liquidity: $716 million (SOURCE: Annual bond compliance report to Moodyʼs)

Investment Valuation Summary

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June 30, 2016

June 30, 2015

Operating Investments $22.7 $15.3

Strategic Reserve $15.4 $15.0

Endowment $1,648.8 $1,787.8

Annuity & Life Income Funds $11.0 $13.3

Total $1,697.8 $1,831.4

Outstanding Debt $89.9 $96.6

Revitalizing Grinnell’s Philanthropic Spirit

$10,492,758 $11,073,188$10,011,160 $10,395,292

$12,316,244

$23,352,051

$26,973,773

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

FY10 FY11 FY12 FY13 FY14 FY15 FY16

New Gift Commitments by Fiscal Year

Start of the quiet phase of a comprehensive campaign

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