1

$16,200,000 Fixed Rate Revenue Bonds

(Series 2016 OO1) Cumberland County Municipal Authority

Pennsylvania Rated “A” Standard & Poor’s

May 26, 2016

2

$16.2 Million Series 2016 OO1 Overview & Timing Issuer: Cumberland County Municipal Authority

Borrower: Messiah College (PA)

Rating: ‘A’ by Standard & Poor’s

Borrowing Size: Approximately $16.2 million

Rate Covenant 1.10x

Security: Revenue Pledge

Final Maturity: November 1, 2046

Principal Amortization: Begins November 1, 2032

Fixed Rate Optional Redemption: May 1, 2026 at Par

No unused proceeds call

Competitive Bid: Ipreo Parity

Planned Bid Date: May 4, 2016 @ 11:30 Eastern

Planned Dated Date/ Closing Date: May 12, 2016

3

Borrower: Messiah College David Walker Vice President for Finance and Planning Financial Advisor to the College: George K. Baum & Co. • Linda Eremita: 412-419-8437 eremita@gkbaum.com • Gary Nowicki: 412-996-6479 nowicki@gkbaum.com

4

I. MESSIAH COLLEGE OVERVIEW

II. ENROLLMENT

III. DEVELOPMENT

IV. FINANCE

V. PRO FORMA INDEBTEDNESS

VI. USE OF PROCEEDS OF $16.2 MILLION SERIES 2016 OO1 BONDS

VII. CONCLUSIONS AND TAKEAWAYS

Presentation Topics

Location 5

The main campus of Messiah College ("Messiah" or the "College") is located in Grantham, Pennsylvania, approximately twelve miles south of Harrisburg, 85 miles north of Baltimore and 114 miles west of Philadelphia. The diagram below represents the buildings and athletic fields located on 100 of the College’s 471 acres. Campus buildings comprise 1.4 million square feet, most of which were constructed in the past 15 years.

Harrisburg Campus: The College’s service based program at its Harrisburg Institute is charged with encouraging residents to practice community life, engage meaningfully with the city of Harrisburg, and examine their role in society through the lens of service.

Campus Resources

• 471 acres • 1.4 million square feet of buildings • Most buildings have either been constructed or

renovated in the past fifteen years

6

Institutional Highlights

• Ranked #14 out of 450 colleges and universities in Pennsylvania by BestColleges.com, based upon acceptance, retention, graduation rate and post-graduation employment rate.

• Recognized on the national President’s Higher Education Community Service Honor Roll.

7

Institutional Highlights

• U.S. News and World Report rankings: – #5 among “Regional Colleges” in the northeast – #8 for “Great School, Great Price” in the northeast – #9 in Top 50 Christian Colleges exceeding expectations

for 2016 (Christian Universities Online)

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Accreditations • Middle States Commission on Higher Education (MSCHE)

• Commission on Accreditation of Athletic Training Education (CAATE)

• Accreditation Board for Engineering and Technology, Inc. (ABET)

• National Council on Family Relations – Certified Family Life Educator

• National Association of Schools of Art and Design (NASAD)

• The Academy of Nutrition and Dietetics, Accreditation Commission for Education in Nutrition and Dietetics (ACEND)

• Commission on Collegiate Nursing Education (CCNE)

• National Association of Schools of Music (NASM)

• National Association of Schools of Theatre (NAST)

• PA Department of Education (Teaching Certification Programs)

• Accreditation Council for Business Schools and Programs (ACBSP)

• Council on Social Work Education (CSWE)

• Council for Accreditation of Counseling and Related Educational Programs (CACREP)

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Faculty

Total Number % with Terminal

Degree Professors 71 98.6% Associate Professors 53 90.6% Assistant Professors 45 64.4% Lecturers 23 34.8% Adjuncts 149

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Enrollment

11

QUESTIONS: George K. Baum & Co. Financial Advisor to the College Linda Eremita 412-419-8437 Gary Nowicki 412-966-6479

Applications, Acceptances, and Deposits

3,071 3,162 3,153

2,836

2,472 2,469

2,071 2,032 2,023 1,869

1,977 1,950

721 694 708 648 696 691

0

500

1,000

1,500

2,000

2,500

3,000

3,500

FY11 FY12 FY13 FY14 FY15 FY16

Num

ber o

f Stu

dent

s

Applications Acceptances Deposits

12

Selectivity and Matriculation

67.4% 64.3% 64.2% 65.9%

80.0% 79.0%

34.8% 34.2% 35.0% 34.7% 35.2% 35.4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

FY11 FY12 FY13 FY14 FY15 FY16

Rate

Acceptance Rate Matriculation Rate

13

Fall Full-Time Equivalent Enrollment

2,762 2,757 2,739 2,725 2,716 2,727

125 166 207 320 431 487

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Fall 2010 Fall 2011 Fall 2012 Fall 2013 Fall 2014 Fall 2015

Num

ber o

f Stu

dent

s

Undergraduate Fall FTE Graduate Fall FTE

2,923 2,946 3,045

3,147 3,214

2,887

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Undergraduate Retention First-Year to Sophomore Year

85.1% 83.2% 86.5% 86.6% 87.5% 88.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Fall 2009 Fall 2010 Fall 2011 Fall 2012 Fall 2013 Fall 2014

Rete

ntio

n Ra

te

Cohort

15

Enrollment Update 16

First Time Freshmen

Transfer Students

Development

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QUESTIONS: George K. Baum & Co. Financial Advisor to the College Linda Eremita 412-419-8437 Gary Nowicki 412-966-6479

$8,793,622

$6,121,495 $6,070,775

$7,090,466 $7,210,966

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

As of 4/10/2016

College Advancement Giving 18

* Includes project specific campaign gifts

$12,229,844*

$8,659,216*

Finance

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QUESTIONS: George K. Baum & Co. Financial Advisor to the College Linda Eremita 412-419-8437 Gary Nowicki 412-966-6479

Gross and Net Tuition and Fee Revenue Compared to Institutional Financial Aid

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$74.5 $78.0

$81.1 $84.7

$88.0 $90.3

$25.9 $28.3 $30.4 $32.7 $34.2 $36.0

$48.6 $49.7 $50.7 $52.0 $53.8 $54.2

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

$ in

Mill

ions

(Per

iod

Endi

ng)

Gross Tuition Revenue Financial Aid Net Tuition Revenue

Messiah Balance Sheet Resources ($000’s) 21

Fiscal Year Unrestricted Unrestricted as

% of Total Temporarily

Restricted Permanently

Restricted Total

2015 $196,812 80.6% $14,896 $32,583 $244,291

2014 $203,213 81.3% $15,219 $31,534 $249,966

2013 $195,502 83.3% $11,568 $27,604 $234,674

2012 $191,980 84.4% $9,923 $25,458 $227,361

2011 $186,250 79.6% $22,814 $24,882 $233,946

2010 $165,104 80.7% $16,956 $22,444 $204,504

Cash and Investments

$146.1

$161.8 $155.9

$127.7

$148.9

$171.3

$155.2 $145.0

$163.3

$151.5

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

$ in

Mill

ions

22

23 All Undergraduate Students: Average Net Tuition Revenue and Institutional Aid

Source: Messiah College Office of Institutional Research

$16,577 $16,497 $16,278 $16,597 $16,961

$10,959

$12,143

$13,372 $13,913

$14,449

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

FY12 FY13 FY14 FY15 FY16 Proj.

Aver

age

Net

Tui

tion

Reve

nue

Average Net Tuition Revenue Average Institutional AidNote: This information is undergraduate only. Messiah does not discount graduate students.

24 Total Net Tuition Revenue by Incoming and Continuing Student Status

Source: Messiah College Office of Institutional Research

FY12 FY13 FY14 FY15 FY16 Proj.Transfer NTR $1,513,635 $1,427,757 $1,884,336 $1,629,768 $1,618,022First-Year NTR $9,877,413 $10,404,912 $10,063,812 $10,605,906 $10,663,695Continuing NTR $33,234,236 $32,511,267 $31,514,112 $31,597,003 $32,529,245

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

$50,000,000

Net

Tui

tion

Reve

nue

Total $44,625,284 $44,343,936 $43,462,260 $43,832,677 $44,810,962

Student Housing 25

2016/2017 Rates Per Semester

Room Type Rate

Single $2,825

Double $2,625

1 Bedroom Apt. $2,700

2 Bedroom Apt. $2,625

Rate & Percentage Increase of Double Rooms

Fiscal Year Rate % Increase

FY13/14 $2,240 3.45%

FY14/15 $2,475 3.13%

FY15/16 $2,550 3.03%

FY16/17 $2,625 2.94%

Occupancy Percentage

Fiscal Year Grantham Harrisburg Occupancy %

FY13/14 2,356 15 98.5%

FY14/15 2,377 12 99.2%

FY15/16 2,367 19 99.1%

$16.2 Million Series 2016 OO1 Pro Forma Indebtedness

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QUESTIONS: George K. Baum & Co. Financial Advisor to the College Linda Eremita 412-419-8437 Gary Nowicki 412-966-6479

27 $16.2 Million Series of 2016 OO1 Pro Forma Indebtedness

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Tho

usan

ds

Series 2001 I3 Series 2001 I4 Series 2005 DD1 Series 2012 LL3Series 2014 T1 Series 2015 NN1 Principal Series 2015 NN1 Interest 2016 Fixed Principal2016 Fixed Interest Prior Debt Service

Beginning FY ’17

Use of Proceeds of $16.2 Million Series 2016 OO1 Bonds

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QUESTIONS: George K. Baum & Co. Financial Advisor to the College Linda Eremita 412-419-8437 Gary Nowicki 412-966-6479

Wellness Center Renovations 29

The proceeds of the 2016 Bonds will be used to construct new facilities and additions to existing buildings associated with the recreational, wellness and fitness activities of the College. In addition to sports management and other health and wellness related academic programs, non-student athletes and students participating in Messiah's 22 formal athletic teams will actively use the updated facilities. Messiah is an NCAA Division III institution, participating in the Middle Atlantic Conference. Messiah's athletic accomplishments include nearly 50 women's and more than 30 men's conference titles as well as 25 national championships (including 10 men's and 5 women's soccer championships).

Conclusions and Takeaways

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QUESTIONS: George K. Baum & Co. Financial Advisor to the College Linda Eremita 412-419-8437 Gary Nowicki 412-966-6479

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A well rounded institution… • Messiah College, in its second century, is a well

known community of educators & students of integrity. Messiah graduates are highly sought after by employers. Our graduates employ faith & reason in their careers. Messiah College students have earned prestigious academic national and international post-graduate honors, and fellowships such as Rhodes, Fulbright, Carnegie, Truman and Boren scholarships.

• Our campus is pristine. Multiple signature events over the past two years have brought marketing opportunities for the College through the new High Center for Worship and Performing Arts, a signature center for the Harrisburg region which was financed entirely with gifts. Recent lectures include the following distinguished individuals; Doris Kearns Goodwin (Author & Historian), Michele Norris (NPR), and Bob Woodward (Author & Journalist).

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A well rounded institution… • Balance Sheet Resources: On June 30, 2015, at

$151.5 million, balance sheet resources exceeded pre-recession levels. As well, cash and investments was also 349% of debt and the majority of our long term investments are unrestricted. The liquidity on our balance sheet is no accident.

• Success in Athletics: Messiah College is the only college in the NCAA to win both the men's and women's soccer national championship in the same year, and they have achieved that distinction four times. The men’s soccer team alone has won ten national championships. The coaches and athletes representing our 22 intercollegiate teams are also continuously recognized for their integrity.