El Camino Community College District $50,000,000* Election of 2012 General Obligation Bonds Series 2020C (Tax-Exempt) $40,475,000* 2020 General Obligation Refunding Bonds (Federally Taxable)
*Preliminary, subject to change Presentation Participants
El Camino Community College District Dena P. Maloney, Ed.D., Superintendent /President Iris Ingram, M.B.A., Vice President of Administrative Services
Municipal Advisor: KNN Public Finance Senior Manager: Morgan Stanley Joanna Bowes, Managing Director Karma Pemba, Executive Director Danielle Arruda, Assistant Vice President
Bond Counsel: Stradling Yocca Carlson & Rauth Co-Manager: Backstrom McCarley Berry & Co., LLC David G. Casnocha, Managing Shareholder Don Backstrom, Managing Director
EL CAMINO COMMUNITY COLLEGE DISTRICT 2 Table of Contents
Section 1 District Overview Pg 4
Section 2 District Budget and Financials Pg 16
Section 3 Tax Base Pg 25
Section 4 Local Economy Pg 32
Section 5 Plan of Finance Pg 43
Section 6 Closing Remarks Pg 47
EL CAMINO COMMUNITY COLLEGE DISTRICT 3 District Gymnasium Overview
Student Services Building District Highlights
▪ Founded in 1947, El Camino College (“the College”) is situated on a beautiful 126-acre campus located in the heart of Southern California’s South Bay ▪ El Camino Community College District (“the District”) encompasses seven unified and high school districts, 12 elementary school districts and nine cities with a combined population of 533,000 residents1 ▪ College serves more than 25,000 students each semester and boasts a curriculum of over 850 highly regarded academic and career programs taught by exceptional faculty ▪ Ranked among the largest single-campus, two-year colleges in the nation ▪ College is fully accredited by Accrediting Commission for Community and Junior Colleges (“ACCJC”) through fall 2020 ▪ College’s evaluation visit will occur September 28 – October 1, 2020 ▪ Approximately 18,169 full-time equivalent students (“FTES”) for FY 2019-20 El Camino Community College Campus ▪ College has Transfer Admission Guarantees (“TAGs”) with 6 UC campuses and 2 Private Institutions ▪ Honors Transfer Program is one of the largest in the state, with the second highest percentage of honors students admitted to UCLA2 ▪ District’s assessed value for 2020-21 is $127 billion (6.4% increase when compared to 2019-20) ▪ General Fund FY 2020-21 Adopted Budget: $171.1 million; with projected unrestricted reserves of $39 million
1Source: District. Population as of 2010 U.S. Census. 2For fall 2018.
EL CAMINO COMMUNITY COLLEGE DISTRICT 5 Board of Trustees
▪ District governed by five-member board elected by the voters with the five trustee areas for a four-year terms at elections held in staggered years ▪ Elections for positions to the Board are held every two years, alternating between two and three available positions ▪ A non-voting student member is elected annually by the student body, with a term of one year commencing June 1 ▪ Annually the Board creates a list of goals and priorities that inform meetings and workshop agendas, strategies and activates, and will be the criteria for annual Board self-evaluation ▪ Goals and priorities are posted on the Board’s website ▪ The College has enjoyed stable and clear leadership through the tenor of its Board members
Nilo Vega Michelin Mary E. Combs William Beverly Kenneth A. Brown Clifford Numark Faith Adams Trustee Area 2 Secretary President Vice President Trustee Area 5 Student Trustee November 2022* Trustee Area 4 Trustee Area 3 Trustee Area 1 November 2022* June 2021* 1st Term November 2020* November 2020* November 2020* 2nd Term 4th Term 7th Term 3rd Term *Term expiration
EL CAMINO COMMUNITY COLLEGE DISTRICT 6 Administration
Dena P. Maloney, Ed.D. Superintendent/President
Iris Ingram, M.B.A. Jane Miyashiro, M.S. Ross Miyashiro, M.A. Jean Shankweiler, Ph.D. Vice President, Vice President Vice President Vice President Administrative Services Human Resources Student Services Academic Affairs
EL CAMINO COMMUNITY COLLEGE DISTRICT 7 FTES
▪ During FY 2016-17 total FTES decreased from prior years dues to the College electing to not apply FTES earned in Summer 2017 to the prior academic year ▪ Increase in FTES for FY 2017-2018 was a result of the College applying FTES earned in Summer 2018 to the 2017-2018 academic year ▪ Decrease for FY 2018-2019 reflects the shifting out of Summer 2018 FTES to prior year as well as an additional decrease of 191.91 FTES in FY 2018-2019 ▪ District projects stable year-over-year FTES for FY 2020-21 ▪ Total of 362 international students1
Fiscal FTES FTES Year Shifted In Shifted Out 2015-16 1,466.10 532.45 2016-17 1,466.10 2017-18 412.35 2018-19 412.32
Fiscal Year 1As of September 2, 2020. Source: El Camino Community College District.
EL CAMINO COMMUNITY COLLEGE DISTRICT 8 Student Demographics
Enrollment Status1 First-time Student 25.1% Returning 10.4% Continuing 56.4% K-12 Special Admit 8.1%
Enrollment by Age1 17 or younger 9.3% 18 to 24 63.0% 25 to 39 21.4% 40 to 49 3.3% 50 or older 3.1%
Source: El Camino Community College District. 1Fall 2018.
EL CAMINO COMMUNITY COLLEGE DISTRICT 9 Notable Programs
Mathematics, Engineering, Science Achievement (“MESA”) Program ▪ Celebrating 20-years of delivering rigorous academics and collaborative problem-solving training to students who are majoring in math or science ▪ One of the largest programs in the state, offering incredible research and internships opportunities. Over 60 internships released every year as well as How to Apply to STEM Internships 101 Workshops held throughout the year Nursing ▪ Provides a high-quality nursing education with a student-centered atmosphere of collaboration and mentorship to support academic excellence and compassionate nursing care ▪ 94% of nursing graduates pass the National Council Licensure Examination ▪ National Student Nurses’ Association | California Nurse Student Association (“NSNA/CNSA”) is the College’s professional membership organization that connects students with opportunities to network with future and current nurse leaders at the state and national conventions, help with student mentoring, scholarship fundraising, and community outreach. Honors Transfer Programs ▪ Among the top in the state in preparing students for transfer to four-year colleges and universities ▪ Program boasts one of the state’s best transfer rate percentages to UCLA through the Transfer Alliance Program ▪ Welcomed a recorded-breaking 350 new students during fall 2019 Dual Enrollment Program ▪ High school students have the opportunity to attend college courses while also attending high school ▪ Students in this program save time and money by earning college and high school credit while exploring interests, majors, and potential careers ▪ Enrollment fees and other student fees are waived for duel enrollment students Veterans Resource Center ▪ The Veterans Services Office provides assistance to veterans and eligible dependents with paperwork regarding their educational benefits, as well as assist them successful navigate the higher education process ▪ Dedicated staff members offer support and referrals to resources both on campus and in the community ▪ Proudly serves more than 270 student veterans
EL CAMINO COMMUNITY COLLEGE DISTRICT 10 Alignment with Vision for Success
EL Baseline Focus 2017-18 2018-19 2016-17
Associate Degrees Completion (including ADTs) 1,023 1,085 1,159
CCCCO Approved Certificates Completion 227 350 392
Federal Pell Grants 8,731 8,472 10,371
Associate Degrees for Transfer (including ADTs) 808 974 1,069
UC/CSU Transfer 1,021 1,143 1,257
Source: El Camino Community College District.
EL CAMINO COMMUNITY COLLEGE DISTRICT 11 Impact of COVID-19: Enrollment
▪ Fall Semester courses will be held online for the duration of the semester. Likewise, courses for the 2021 Winter Intersession will be delivered remotely for the entirety of the Intersession period ▪ Limited number of programs that prepare students for employment in essential industries will be allowed to hold face-to-face classes on campus during the 2020 Fall Semester. Complete screening protocols and social distancing plans have been developed to allow these programs to return to campus ▪ Due to underutilization as a result of the shift to remote learning, several buildings will be shuttered as of September 15 ▪ The Planning & Budget Committee identified significant utility cost savings, primarily electrical usage, by temporarily closing those buildings that are currently not being utilized for face-to-face instruction ▪ Fall enrollment is down 12% over the same period in 2019 ▪ New student orientation sessions took place through Zoom meetings
EL CAMINO COMMUNITY COLLEGE DISTRICT 12 Impact of COVID-19: Finance
▪ District received $11.7 million in CARES Act funding: ▪ Emergency Student Aid: $5,829,990 ▪ Institutional Use: $5,829,990 ▪ 7,520 of the 8,285 eligible students have received emergency financial aid grants through the CARES Act ▪ Student will receive an award of either $250 or $500 based on Title IV eligibility criteria ▪ District also received an aggregate $2.03 million COVID 19 Grant1, which the College will use to purchase technology equipment for students to support distance learning efforts ▪ District has submitted a Request for Public Assistance under the California COVID- 19 Pandemic Event (DR-4482) to FEMA ▪ Institutional Use CARES Act funding will cover costs related to the transition of instruction from face-to-face to remote learning ▪ At this time, there has not been a workforce reduction or work stoppage
1Comprised of Federal COVID 19 Relief Fund ($910,376) and Proposition 98 COVID 19 Block Grant ($1,117,498).
EL CAMINO COMMUNITY COLLEGE DISTRICT 13 South Bay Promise
▪ The Promise removes financial barriers and creates pathways to increase college readiness, access, affordability, and success for all students and their families ▪ Student assistance in navigating the college experience, access to support programs and learning communities to promote course completion and transfer or entry into the workforce with a technical degree within two years ▪ Covers enrollment fees for incoming full-time freshmen who attend El Camino College directly after graduating from high school ▪ The College has expanded the South Bay Promise to provide more high school graduates with the opportunity to get their first year of enrollment fees covered at El Camino College ▪ The 2020 academic year opened with 1,300 new South Bay Promise students ▪ In total, the College has a total of 1,988 South Bay Promise students ▪ Students entering El Camino College through the South Bay Promise receive priority early registration, guaranteed placement in required English and math courses their first year, additional academic counseling services ▪ The South Bay Workforce Investment Board (SBWIB) is a partner in the South Bay Promise and provides students with a variety of services including resume building, interview preparedness, leadership/team building, internships, hiring events and recruitment opportunities
EL CAMINO COMMUNITY COLLEGE DISTRICT 14 El Camino Community College Foundation
▪ El Camino College Foundation focuses on creating accessible pathways to college and supporting students once they arrive on campus ▪ The Foundation’s comprehensive scholarship program provides over 600 scholarships totaling more than $700,000 each year ▪ As of June 30, 2019, the Foundation held 53 separate named endowments totaling $8.7 million ▪ Challenged to raised $1 million in donations, the Foundation exceeded their goal and raised $1.6 million in gifts, which was matched for a total of $2.2 million1 ▪ In response to COVID-19, the Foundation created the El Camino Student Emergency Fund with an initial donation of $25,000 to support our students during the crisis ▪ Assisted over 330 students to date to finance educational and living expenses ▪ Since launching in March 2020, over $145,000 in gifts have been made to help students with emergency needs and drive-thru food pantry
1Source: El Camino Community College Foundation for academic year 2018/19.
EL CAMINO COMMUNITY COLLEGE DISTRICT 15 District Budget Math, Business and Allied Health Building and Financials
Center for Applied Technology Financial Management and Practices
Practice Description Budget Assumptions ▪ Uses conservative budgeting assumptions during budget development. Multi-year (AP-6200) projections of revenues and expenditures are prepared ▪ Budget planning supports institutional goals linked to the Board’s goals and priorities for the fiscal year ▪ Budget assumptions are presented to the Planning and Budget Committee for review prior to the approval of a tentative or final budget
Budget Management ▪ Unanticipated revenue may only be appropriated for expenditures by majority approval (AP-6250) (BP-6250) of the Board ▪ Transfers may be made from the reserve for contingencies to any expenditure classification by a two-thirds vote of approval by the Board ▪ Changes in budget assumptions are reported to the Governing Board in a timely manner
Board Policy for Reserves The District’s unrestricted general reserve is to be funded at no less than 6.00% (BP-6250) Board Updates Board is presented with quarterly reports showing the financial and budgetary conditions of (BP-6300) the District Citizen’s Bond Oversight Regular reports and updates are given to the Oversight Committee throughout the year Committee (AP-6740) Debt Policy ▪ The Board adopted a debt issuance and management policy and reviews and updates (AP-6307) (BP-6307) the policy as needed ▪ Internal control procedures to ensure the proceeds of the debt issuance are directed to the intended use
EL CAMINO COMMUNITY COLLEGE DISTRICT 17 Financial Statements- Combined General Fund
2017-18 2018-19 2019-20 2020-21 Unaudited Adopted Budget Actuals Budget Actuals Budget Actuals Budget Income: Federal 3,202,216 2,724,236 2,987,953 2,119,909 3,391,316 2,958,710 3,550,884 State 102,257,910 99,592,477 109,537,122 105,972,922 104,462,168 103,359,177 102,725,471 Local 51,271,007 53,163,385 53,318,878 58,428,016 54,652,626 57,307,292 59,276,430 Total Revenues 156,731,133 155,480,098 165,843,953 166,520,847 162,506,110 163,625,179 165,552,785
Expenditures: Academic Salaries 58,925,464 58,631,803 59,753,510 60,807,999 62,747,874 62,956,019 60,398,467 Classified Salaries 39,433,188 38,739,288 40,679,525 38,748,759 43,771,723 38,505,966 37,262,112 Employee Benefits 29,157,603 28,352,764 36,202,269 36,628,667 40,746,691 40,262,722 41,212,561 Materials and Supplies 3,825,294 2,474,309 3,171,643 2,905,047 3,282,740 2,390,829 13,411,750 Other Operating Expenses 26,636,130 17,728,441 16,313,841 15,247,698 16,429,139 15,520,014 15,528,629 Capital Outlay 4,118,924 4,872,291 4,722,913 4,225,015 2,893,129 1,842,907 3,332,216 Total Expenditures 162,096,603 150,798,896 160,843,701 158,563,185 169,871,296 161,478,457 171,145,734
Revenues Over (Under) Expenditures: (5,365,470) 4,681,202 5,000,252 7,957,662 (7,365,186) 2,146,722 (5,592,950)
Other Financing Sources/(Uses): Other Financing Sources 5,663,415 20,116,216 2,600,000 7,518,336 9,169,305 8,866,561 4,607,686 Other Outgo 19,841,764 22,665,526 8,673,415 9,088,466 10,905,683 11,159,056 6,512,531 Total Other Financing Sources/(Uses) 14,178,349 2,549,310 6,073,415 1,570,130 1,736,378 2,292,495 1,904,845
Net Change in Fund Balance (19,543,819) 2,131,892 (1,073,163) 6,387,532 (9,101,564) (145,773) (7,497,795)
Beginning Fund Balance 39,795,733 39,795,733 43,768,810 43,768,876 50,156,761 50,156,761 50,010,988 Prior Years Adjustments 1,841,185 353 Adjusted Beginning Balance 41,636,918 43,769,229 Ending Fund Balance 20,251,914 43,768,810 42,695,647 50,156,761 41,055,197 50,010,988 42,513,193
Ending Balance as % of Revenue 28.2% 30.1% 30.6% Ending Balance as % of Expenditures 29.0% 31.6% 31.0% Source: California Community College Chancellor’s Office, CCFS-311.
EL CAMINO COMMUNITY COLLEGE DISTRICT 18 Financial Statements- Unrestricted General Fund
2017-18 2018-19 2019-20 2020-21 Unaudited Adopted Budget Actuals Budget Actuals Budget Actuals Budget Income: Federal 105,000 77,145 105,000 254,454 230,000 68,725 41,162 State 76,927,578 79,911,871 84,754,435 85,210,834 83,634,589 82,129,951 80,942,690 Local 47,376,894 48,132,858 47,867,120 53,129,990 50,141,975 53,095,384 53,150,793 Total Revenues 124,409,472 128,121,874 132,726,555 138,595,278 134,006,564 135,294,060 134,134,645
Expenditures: Academic Salaries 54,503,914 54,035,164 55,681,993 55,522,576 59,456,125 57,433,836 58,224,666 Classified Salaries 28,737,471 28,138,925 29,689,970 27,938,614 30,097,611 27,535,581 30,446,940 Employee Benefits 25,166,293 24,218,116 31,427,325 31,829,602 34,323,829 34,799,209 35,771,280 Materials and Supplies 1,946,550 1,747,468 1,205,109 1,701,173 2,000,883 1,625,189 1,702,590 Other Operating Expenses 12,076,956 11,033,596 9,379,057 10,749,688 11,997,393 11,203,920 10,164,025 Capital Outlay 485,200 453,698 238,389 388,007 502,241 878,310 1,633,175 Total Expenditures 122,916,384 119,626,967 127,621,843 128,129,660 138,378,082 133,476,045 137,942,676
Revenues Over (Under) Expenditures: 1,493,088 8,494,907 5,104,712 10,465,618 (4,371,518) 1,818,015 (3,808,031)
Other Financing Sources/(Uses): Other Financing Sources 0 14,955,242 1,653,393 1,653,393 8,068,865 7,437,264 3,077,686 Other Outgo 19,118,657 22,266,216 8,110,415 8,350,210 6,633,140 6,611,426 6,259,957 Total Other Financing Sources/(Uses) 19,118,657 7,310,974 6,457,022 6,696,817 (1,435,725) (825,838) 3,182,271
Net Change in Fund Balance (17,625,569) 1,183,933 (1,352,310) 3,768,801 (2,935,793) 2,643,853 (6,990,302)
Beginning Fund Balance 36,522,862 36,522,862 39,547,980 39,547,980 43,317,134 43,317,134 45,960,987 Prior Years Adjustments 1,841,185 353 Adjusted Beginning Balance 38,364,047 39,548,333 Ending Fund Balance 18,897,293 39,547,980 38,195,670 43,317,134 40,381,341 45,960,987 38,970,685
Ending Balance as % of Revenue 30.9% 31.3% 34.0% Ending Balance as % of Expenditures 33.1% 33.8% 34.4% Source: California Community College Chancellor’s Office, CCFS-311.
EL CAMINO COMMUNITY COLLEGE DISTRICT 19 Draft FY 2020-21 Budget Assumptions
▪ General State Apportionment based on generation of 18,251 FTES ▪ Assumed at the District’s 3-year average FTES ▪ Hold harmless provision extended through FY 2023-24 ▪ 0% COLA increase to FTES Revenue ▪ Anticipated apportionment deferrals are estimated to be at least $29 million, with the potential of trigger deferrals depending on future federal aid ▪ Step and Column compensation schedule structure: ▪ Certificated: $1,004,914 (1.75%) ▪ Classified: $358,514 (1.30%) ▪ Fringe: $581,383 ▪ Budget for 3 new full-time faculty positions ▪ Aggregate contribution to retirement plans decrease to $259,308 ▪ PERS increase by 0.98% to 20.70%: $298,076 ▪ STRS decreased by -0.95% to 16.15%: -$557,384 ▪ Budget gap will be closed through a combination of expenditure reductions, use of reserves, and internal borrowing
Source: El Camino Community College District.
EL CAMINO COMMUNITY COLLEGE DISTRICT 20 Alternative Sources of Liquidity
▪ The District maintains approximately $20 million, which could be permanently transferred to the General Fund and $11.1 million, which could be temporarily transferred to the General Fund
Actual Actual Est. Actual Estimated Fund 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Auxiliary Services $432,942 $439,104 $566,030 $263,735 Bookstore Fund $570,212 $676,938 $513,475 422,950 Capital Outlay 11,038,710 10,396,521 9,030,902 8,933,076 Self-Insurance Fund (Dental) 20,330 0 213,468 214,278 Self-Insurance Fund (Property & Liability) 417,513 543 45,068 89,440 Safety Training Center 0 9,994,131 10,094,232 10,038,840 STRS/PERS Future Liability Fund 15,130,242 15,149,636 10,352,251 10,387,614 Worker's Compensation 528,995 322,712 459,097 697,878 Totals: $28,138,944 $36,979,585 $31,274,523 $31,047,811
Source: El Camino Community College District FY 2016-17 through FY 2020-21 Budget.
EL CAMINO COMMUNITY COLLEGE DISTRICT 21 Labor Relations
▪ District currently employs 336 Bargaining No. Employees Contract full-time faculty members and Unit in Organization Expiration Date 810 part-time faculty members El Camino College Federation of Teachers 787 December 2019 ▪ District employs 391 full-time El Camino Classified Employees 258 December 2022 classified employees and 78 El Camino College Police managerial employees Officers Association 8 December 20172 Total: 1,053 ▪ District employees are represented by three El Camino Historical Salary Community % Increase Average bargaining units noted to the Increases College for 2019-20 Salary Cerritos 3.3% $108,114 1 Fiscal Year % Increase right 2015-16 1.02% El Camino 0.0% $109,974 2016-17 5.00% Glendale 2.5% $98,799 ▪ District provides competitive 2017-18 1.56% Long Beach 1.9% $83,852 compensation for its 2018-19 2.71% Mt. San Antonio 3.3% $106,349 employees, which helps in the 2019-20 0.00% Pasadena 3.5% $92,264 Rio Hondo COLA+1.0% $97,514 efforts of retention and Santa Monica 2.5% $111,425 recruitment of talented faculty Median Average Salary $102,574
1Excludes management, confidential employees and some part-time employees. 2In negotiations. Source: El Camino Community College District.
EL CAMINO COMMUNITY COLLEGE DISTRICT 22 STRS and PERS
▪ The District contributes 100% of required employer contributions to CalSTRS and CalPERS ▪ California’s June Budget Bill redirects funds previously designated for long-term buy down of pension liabilities to the reduction of local school employer pension contributions in FY 2020-21 and FY 2021-22 by about 2% in each year
STRS Contribution Rates PERS Contribution Rates As of: Contribution Rate Contribution Increase Contribution Rate Contribution Increase July 1, 2017 14.4% 1.9% 15.5% 1.6% July 1, 2018 16.3% 1.9% 18.1% 2.6% July 1, 2019 17.1% 0.8% 19.7% 1.6% July 1, 2020 16.2% -1.0% 20.7% 1.0%
STRS Contribution ($) PERS Contribution ($) Fiscal Year Contribution Contribution Increase Contribution Contribution Increase 2014-15 $3,681,561 - $3,734,856 - 2015-16 $4,688,258 27.3% $3,726,406 -0.2% 2016-17 $5,163,237 10.1% $4,497,542 20.7% 2017-18 $6,438,464 24.7% $5,373,273 19.5% 2018-19 $7,176,305 11.5% $6,341,508 18.0% 2019-20 $8,482,293 18.2% $6,811,017 7.4% 2020-211 $9,532,135 12.4% $8,083,405 18.7%
Source: STRS Defined Benefit Program Actuarial Valuation, El Camino Community College District. 1Projected.
EL CAMINO COMMUNITY COLLEGE DISTRICT 23 Other Post-Employment Benefits (OPEB)
▪ The District provides post-employment health care benefits for eligible retirees:
Faculty Classified Management Police Total No. of Employees: 330 373 93 10 Benefit Type Medical Only Medical only Medical Only Medical Only Duration of Benefits to age 651 to age 651 to age 651 to age 651 Required Service 10 years 10 years 10 years 10 years Minimum Age 55 years 55 years 55 years 55 years Dependent Coverage No No No No College Contribution % 100 100 100 100 College Cap Statutory mini for Statutory mini for Statutory mini for Statutory mini for post-65 coverage post-65 coverage post-65 coverage post-65 coverage ▪ As of the most recent actuarial report2: ▪ OPEB Liability: $27,567,735 ▪ Plan Fiduciary Net Position: $23,559,896 ▪ Net OPEB Liability: $4,007,839 ▪ Funded Ratio: 85.5% ▪ The District has established an irrevocable government trust (Futuris Trust) pursuant to Section 115 of the IRC, which is administered by the District’s Retirement Board of Authority ▪ Total market value of the Futuris Trust is $24.6 million as of June 30, 2020
1Beyond age 65 (as well as for retirees not qualifying for fully paid coverage), the District pays statutory minimum CalPERS contributions. 2Source: El Camino Community College District’ Actuarial Study Dated 1/9/2020. Valuation Date 6/30/2019.
EL CAMINO COMMUNITY COLLEGE DISTRICT 24 Torrance Beach Tax Base
Manhattan Beach Pier Historical Assessed Valuation
Fiscal Total Assessed % Year Value Change 1998-99 39,022,162,686 - 1999-00 41,547,560,653 6.5% 2000-01 44,892,358,442 8.1% 2001-02 48,558,518,972 8.2% 2002-03 51,431,383,993 5.9% 2003-04 54,864,557,447 6.7% 2004-05 57,987,138,898 5.7% 2005-06 62,822,778,719 8.3% 2006-07 68,711,069,752 9.4% 2007-08 74,508,417,009 8.4% 2008-09 79,247,527,234 6.4% 2009-10 80,414,906,568 1.5% 2010-11 79,175,513,906 -1.5% 2011-12 80,089,100,286 1.2% 2012-13 81,859,670,577 2.2% 2013-14 85,591,545,610 4.6% 2014-15 88,730,638,166 3.7% 2015-16 93,505,304,298 5.4% 2016-17 97,932,349,284 4.7% 2017-18 104,654,417,113 6.9% 2018-19 111,035,258,051 6.1% 2019-20 119,378,998,673 7.5% 2020-21* 127,001,474,079 6.4%
Compound Annual Growth Rate (CAGR) 3-year 6.7% 5-year 6.3% 10-year 4.8% Since 1999 (22-year) 5.5% *Source: Los Angeles County Auditor-Controller SV13 Assessed Value Agency Sheet.
EL CAMINO COMMUNITY COLLEGE DISTRICT 26 FY 2019-20 Assessed Valuation by Jurisdiction
Assessed Value % of District Assessed Value % of Jurisdiction Jurisdiction (in District) Total (total Jurisdiction) in District City of Culver City $4,778,918 0.0% $12,011,506,238 0.0% City of El Segundo $14,200,895,087 11.9% $14,200,895,087 100.0% City of Hawthorne $7,856,152,127 6.6% $8,630,805,267 91.0% City of Hermosa Beach $7,989,293,188 6.7% $7,989,293,188 100.0% City of Inglewood $11,810,175,694 9.9% $11,848,240,555 99.7% City of Lawndale $2,489,396,183 2.1% $2,489,396,183 100.0% City of Los Angeles $112,827,832 0.1% $652,958,373,305 0.0% City of Manhattan Beach $19,822,800,094 16.6% $19,822,800,094 100.0% City of Redondo Beach $17,581,228,593 14.7% $17,581,228,593 100.0% City of Rolling Hills Estates $49,743,871 0.0% $3,625,376,878 1.4% City of Torrance $32,476,185,199 27.2% $32,506,447,775 99.9% Unincorporated Los Angeles County $4,985,521,887 4.2% $111,408,534,823 4.5% Total District $119,378,998,673 100%
County Summary Los Angeles County $119,378,998,673 100.0% $1,612,990,196,814 7.4%
Source: California Municipal Statistics, Inc.
EL CAMINO COMMUNITY COLLEGE DISTRICT 27 FY 2019-20 Assessed Value by Land Use
Assessed Value1 % of Total # of Parcels % of Total Non-Residential Commercial/Office $17,975,100,050 15.7% 6,338 4.4% Vacant Commercial $327,200,030 0.3% 997 0.7% Industrial/Oil & Gas $10,878,910,468 9.5% 2,211 1.5% Vacant Industrial $301,215,294 0.3% 201 0.1% Recreational $2,928,464,236 2.6% 95 0.1% Government/Social/Institutional $173,694,107 0.2% 1,334 0.9% Miscellaneous $22,211,867 0.0% 420 0.3% Total: $32,606,796,052 28.4% 11,596 8.1% Residential Single Family Residence $51,033,581,064 44.5% 83,193 58.3% Condominium/Townhouse $13,852,281,291 12.1% 23,944 16.8% Mobile Home $14,688,786 0.0% 480 0.3% Mobile Home Park $56,966,120 0.0% 41 0.0% 2-4 Residential Units $8,913,962,241 7.8% 16,853 11.8% 5+ Residential Units/Apartments $7,543,087,120 6.6% 5,291 3.7% Miscellaneous Residential $80,231,894 0.1% 80 0.1% Vacant Residential $536,245,009 0.5% 1,228 0.9% Total: $82,031,043,525 71.6% 131,110 91.9% Total: $114,637,839,577 100.0% 142,706 100.0%
Source: California Municipal Statistics, Inc. 1Local secured assessed valuation; excluding tax-exempt property.
EL CAMINO COMMUNITY COLLEGE DISTRICT 28 Assessed Value- Single Family Homes
Number of Parcels FY 2019-20 Assessed Value Average Assessed Value Median Assessed Value 83,193 $51,033,581,064 $613,436 $432,275
1Median List Price for City of Torrance. Provided by Zillow as of August 31, 2020. Source: California Municipal Statistics, Inc.
EL CAMINO COMMUNITY COLLEGE DISTRICT 29 Direct and Overlapping Debt
FY 2019-20 Assessed Value: $119,378,998,673 % Debt as of Direct and Overlapping Tax and Assessment Debt Applicable 6/1/2020 Metropolitan Water District 3.9% $1,440,153 El Camino Community College District 100.0% 388,425,306 1 El Segundo Unified School District 100.0% 54,490,551 Inglewood Unified School District 100.0% 142,010,000 Manhattan Beach Unified School District 100.0% 134,131,797 Redondo Beach Unified School District 100.0% 202,932,018 Torrance Unified School District 100.0% 460,150,236 Wiseburn Unified School District 100.0% 115,767,787 Centinela Valley Union High School District and SFID No. 2016-1 100.0% 333,240,955 Elementary School Districts 100.0% 190,240,961 City of Los Angeles 0.0% 124,018 City of Hawthorne Community Facilities Districts 100.0% 18,665,000 City 1915 Act Bonds 100.0% 18,770,000 Total Direct and Overlapping Tax and Assessment Debt $2,060,388,782
Overlapping General Fund Debt Ratios to FY 2019-20 Assessed Value Los Angeles County General Fund Obligations 7.40% $169,490,351 Direct Debt ($388,425,306) 0.33% Los Angeles County Superintendent of Schools Obligations 7.40% $337,883 Total Direct and Overlapping Tax 1.73% School District Certificates of Participation 100.00% $34,590,000 Assessment Debt City of Hawthorne General Fund and Pension Obligation Bonds 91.03% $133,783,359 Combined Direct Debt 2.42% City of Inglewood General Fund and Pension Obligation Bonds 99.68% $215,273,050 Total Overlapping Tax Increment Debt 1.62% City of Manhattan Beach General Fund Obligations 100.00% $21,560,000 City of Torrance Certificates of Participation 99.91% $56,657,260 1Excludes the Bonds, but includes the Refunding Other City General Fund Obligations Various $37,801,150 Bonds expected to be refunded as described .41% - 80.5% $7,254,792 Los Angeles County Sanitation District Nos. 5 and 18 and South Bay herein. Cities Authorities 2Excludes tax and revenue anticipation notes, Total Direct and Overlapping General Fund Debt $676,747,845 enterprise revenue, mortgage revenue, tax allocation bonds, and non-bonded capital lease Overlapping Tax Increment Debt (Successor Agencies): $155,247,620 obligations. Combined Total Debt $2,892,384,247 2 Source: California Municipal Statistics, Inc.
EL CAMINO COMMUNITY COLLEGE DISTRICT 30 Twenty Largest FY 2019-20 Local Secured Taxpayers
▪ Top ten largest taxpayers comprise of 8.00% of the District’s total secured assessed value
Ranking Property Owner Primary Land Use Assessed Value % of Total1 1 Chevron USA Inc. Oil Refinery $2,449,707,721 2.1% 2 Pincay RE LLC Football Stadium $2,426,687,539 2.1% 3 Torrance Refining Company LLC Oil Refinery $1,239,961,084 1.1% 4 Del Amo Fashion Center Operating Co. LLC Shopping Center $860,628,262 0.8% 5 Continental Corp. Office Building $447,817,855 0.4% 6 Northrop Grumman Systems Corp. Industrial $428,129,471 0.4% 7 SOF XI PCT Two Tower Owner LLC Office Building $393,851,580 0.3% 8 American Honda Motor Co. Inc. Office Building $329,968,104 0.3% 9 Aerospace Corporation Office Building $319,653,248 0.3% 10 Hughes Aircraft Co. Industrial $253,058,788 0.2% 11 Boeing Co. Industrial $230,396,071 0.2% 12 SOF XI PCT Single Tower Owner Office Building $223,717,620 0.2% 13 South Bay Center SPE LLC Shopping Center $223,493,118 0.2% 14 TI Commerce Center LLC Office Building $218,790,000 0.2% 15 Kilroy Realty Finance Partnership Office Building $182,794,280 0.2% 16 RREEF America REIT II Corp. BBB Shopping Center $178,994,423 0.2% 17 PES Partners LLC Shopping Center $170,610,488 0.1% 18 CRP MB Studios LLC Industrial $165,744,683 0.1% 19 EQR Pacific Place LP Apartments $157,082,578 0.1% 20 2121 Park Place Fee Owner CA LLC Office Building $152,973,133 0.1% Total: $11,054,060,046 9.6% 1FY 2019-20 total District secured assessed valuation is $114,637,839,577. Source: California Municipal Statistics, Inc.
EL CAMINO COMMUNITY COLLEGE DISTRICT 31 Local Griffith Observatory with backdrop of City of Los Angeles skyline Economy
Aerial view of the City of Torrance Los Angeles County Overview
▪ Los Angeles County (“the County”) is one of the original 27 counties of California ▪ Aa1 / AAA / AA+ rated by Moody’s, S&P and Fitch ▪ Largest county in the nation by both assessed value ($1.6 trillion) and population ▪ 10.17 million1 total population (25.6% of State population) ▪ Diverse, expanding economy ▪ Serves as the central trade district for the western United States and the gateway to the Asian economies ▪ The two major seaports in the County encompass the largest port complex in the nation, and on a combined basis rank ninth largest among the world’s port facilities2. ▪ Dynamic economy with over a dozen major industries, including aerospace, digital media and entertainment, business applications, manufacturing, and advance transportation. ▪ Gross Domestic Product of $807 billion. Economy is larger than that of 45 states2. ▪ County’s technology sector, known as “Silicon Beach”, is the epicenter of the region’s thriving tech and startup community, with more than 500 companies calling the area home ▪ Home to a wealth of capital resources, with venture capital presence growing dramatically in the past decade ▪ Over 120 colleges and universities are located within the County helping to fuel a skilled workforce that can meet the demands of today’s top industry sectors
1Source: State of California Department of Finance, total population data as of January 2020. 2Source: Los Angeles County FY 2018-19 Comprehensive Annual Financial Report.
EL CAMINO COMMUNITY COLLEGE DISTRICT 33 South Bay Cities and Communities
City of El Segundo ▪ Median home value is $1.4 million, representing a 3.8% growth when compared to 2019 values1 ▪ Economy was once underpinned by petroleum, but has sense expanded to include a diverse portfolio of principal employers including AT&T, Los Angeles Times, DaVita Healthcare, Los Angeles Lakers, Los Angeles Kings, and Mattel ▪ The City has a longstanding tradition of innovation in Aerospace ▪ Los Angeles Air Force Base and the Aerospace Corporation are both located in El Segundo ▪ Over half of all satellites and vehicles in space were manufactured in El Segundo ▪ Major aerospace industry leaders such as Boeing, Northrop Grumman, Lockheed Martin and Raytheon operate facilities within the City City of Hermosa Beach ▪ Beachfront, bedroom community with a stable population, located just four miles south of Los Angeles International Airport ▪ Median home value is $1.86 million, representing a 9.8% growth when compared to 2019 values1 ▪ This lively coastal town attracts more than a 1.2 million visitors during the height of its tourist season
1Provided by Zillow as of August 31, 2020.
EL CAMINO COMMUNITY COLLEGE DISTRICT 34 South Bay Cities and Communities
City of Manhattan Beach ▪ Known as "The Pearl of L.A.'s South Bay", Manhattan Beach is located about 20-miles southwest of downtown Los Angeles ▪ Median home value is $2.6 million, representing a 11.1% growth when compared to 2019 values1 ▪ Boasting some of the most expensive real estate per square foot in the United States ▪ Beautiful coastal views, superb surfing conditions, and upscale amenities attract thousands of tourists each year ▪ Named one of U.S. News’ best beaches in California City of Redondo Beach ▪ Preferred resort destination for more than a century and one of the most desirable areas to live in the county ▪ High residential concentration with industrial activity anchored by defense weapons manufacture Northrop Grumman ▪ Median home value is $1.1 million, representing a 4.4% growth when compared to 2019 values1 1Provided by Zillow as of August 31, 2020. 2Source: State of California Department of Finance, total population data as of January 2020.
EL CAMINO COMMUNITY COLLEGE DISTRICT 35 South Bay Cities and Communities
City of Torrance ▪ Los Angeles County’s eight largest city by population (1.43% of the County’s total population1) ▪ Median home value is $879,773, representing a 5.1% growth when compared to 2019 values2 ▪ Located at the end of the well-traveled Strand beach bike path, Torrance Beach is a local beach treasure with 1.5 miles of pristine coastline and fantastic views of the Palos Verdes Peninsula
1Source: State of California Department of Finance, total population data as of January 2020. 2Provided by Zillow as of August 31, 2020.
EL CAMINO COMMUNITY COLLEGE DISTRICT 36 Broader Community
City of Los Angeles ▪ The second most populous city in the nation1 and the most populated city within the State with an estimated population of 4.04 million2 (10.08% of the State total population2) ▪ Median home value is $752,508, representing a 5.8% growth when compared to 2019 values3 ▪ FY 2020-21 total assessed value of $605.2 billion ▪ Fueled by trade with Pacific Rim countries, the Port of Los Angeles handles the largest volume of containerized cargo of all U.S. ports and is ranked number one in container volume in U.S. waterborne foreign traffic ▪ Los Angeles International Airport (“LAX”) is the fourth busiest airport in the world and second in the United States. LAX ranks tenth in the world and fourth in the nation in air cargo tonnage with 2.3 million tons of air cargo ▪ The City’s center has seen an explosion of residential building that has made Downtown a vibrant center of activity ▪ Renowned educational institutions and research facilities have resulted in the City fostering a sphere of research and innovation ▪ With its extensive size and breath, pioneering breakthrough research and innovation is a proud tradition at the University of Los Angeles. Since the year 2000, startup valuations built on UCLA’s technology has totaled $33 billion4 ▪ University of Southern California is one of the world’s leading private research institutions and consistently enrolls more international students than any other U.S. university ▪ Serving as the City’s primary transit provider, the Los Angeles County Metropolitan Transportation Authority operates the third-largest public transportation system in the Untied States (by ridership)
1Source: City of Los Angeles FY 2018-19 Comprehensive Annual Financial Report. 2Source: State of California Department of Finance, total population data as of January 2020. 3Provided by Zillow as of August 31, 2020. 4Source: UCLA Economic Impact Report 2018.
EL CAMINO COMMUNITY COLLEGE DISTRICT 37 Resident and Employment Profile
Median Household Per Capita Unemployment City of Torrance's Principal Employers4 Jurisdiction Income1 Income2 Rate3 Rank Employer Employees Torrance, CA $90,309 $63,913 17.6% 1 Torrance Memorial Health 3,600 California $71,228 $63,711 13.3% System United States $60,293 $54,526 10.2% 2 Torrance Unified School 2,724 District 3 City of Torrance 1,739 4 Providence Little Co of Mary 1,446 Medical Center 5 American Honda Motor 1,285 Company 6 Robinson Helicopter 1,078 Company 7 Honeywell International 960 8 Lisi Aerospace 900 9 Walmart 701 10 Arconic 694 Total: 15,127
1Source: 2018 American Community Survey 5-Year Estimates. 2Source: Bureau of Economic Analysis. Reflects 2018 data (most recent data for all jurisdictions). 3Source: U.S. Bureau of Labor Statistics. July 2020 data. 4Source: City of Torrance FY 2018-19 Comprehensive Annual Financial Report.
EL CAMINO COMMUNITY COLLEGE DISTRICT 38 Economic Development Beach Cities Media Campus (El Segundo) ▪ Development of a 6.4-acre property with plans to construct multiple buildings including 275,000 sq ft creative Class A office space, 66,000 sq ft studio and production faculties and 7,000 sq ft of retail space ▪ Project would also include a private event plaza and private roof decks. Studio and production facilities would operate 24 hours per day ▪ Parking for up to 980 vehicles would be provided in a seven- level garage and an adjoining surface lot
Smoky Hollow Specific Plan (El Segundo) ▪ Transformation of an industrial commercial district into an eclectic business and creative center ▪ Smoky Hollow District possesses significant potential to become an incubator hub and creative center in El Segundo and throughout the region ▪ Anticipated to draw creative industries, innovative thinking, and advanced technologies ▪ Enhanced streetscapes and pedestrian-oriented buildings prioritize seamless cycling and pedestrian connections, encouraging greater reliance on alternative transportation options
EL CAMINO COMMUNITY COLLEGE DISTRICT 39 Economic Development SpaceX Headquarters (Hawthorne) ▪ 1 million sq ft headquarter ▪ SpaceX is reportedly looking to raise another $250 million to finance several major projects including the Starship, the Starlink, a next- generation satellite network to provide global broadband internet service to areas not yet connected ▪ Los Angeles City Counsel has approved a new permit for a lease to build its Starship in the Port of Los Angeles ▪ The City of Hawthorne credits much of its redevelopment to the halo effect of SpaceX. Due to the company’s expanding footprint, the city has attracted numerous SpaceX subcontractors and vendors SoFi Stadium (Inglewood) ▪ Future home of the Los Angeles Chargers and Los Angeles Rams ▪ State-of-the-art stadium with the ability to host a variety of events year round, including Super Bowel LVI in 2022 and the Opening and Closing Ceremonies of the Olympic Games in 2028 ▪ Stadium is the cornerstone of the 300-acre mixed-use development known as Hollywood Park ▪ Anchored by a 500,000 sq ft retail and entertainment district delivering shopping, dinning, recreation, entertainment and nightlife ▪ Retail district will be complemented by luxury apartments and best- in-class office campuses that will offer cutting-edge technology
EL CAMINO COMMUNITY COLLEGE DISTRICT 40 Economic Development Legado Redondo Development (Redondo Beach) ▪ Located adjacent to the Pacific Coast Highway, the Legado Companies plan to construct a vibrant modern mixed-use complex ▪ Featuring five-story 115 residential units atop approximately 22,000 sq ft of street-fronting retail and restaurant space ▪ The project would also renovate the Palos Verdes Inn, which will reopen as a 110-key hotel and rooftop pool deck
One South (Redondo Beach) ▪ Nestled off Pacific Highway, One South is a 1.5-acre redeveloped site that features 52 condominiums and town homes and 10,500 sq ft commercial space
▪ Prices range from the mid $700s to just over $1 million
▪ Easy access to international transportation hub LAX and 22 miles from Downtown Los Angeles
EL CAMINO COMMUNITY COLLEGE DISTRICT 41 Economic Development Canoo Headquarters (Torrance) ▪ An electric vehicle start-up headquartered in Torrance, which has about 300 employees at its 90,000 sq ft facility
▪ A recent large injection of capital gives the company a greater opportunity to become an industry player, much like sister high-tech companies Tesla and SpaceX
▪ Canoo is developing three vehicles: a lifestyle vehicle positioned as the “next evolution” of SUVs, last-mile high- capacity cargo vehicle, and a sports vehicle ▪ The company’s goal is to start rolling out vehicles in 2022 ▪ Automotive giant Hyundai is partnering with Canoo to co-develop a future electric car platform
EL CAMINO COMMUNITY COLLEGE DISTRICT 42 Plan of Industry Technology Education Center Finance Bond Program
▪ The District has been successfully in garnering voter approval for two bond measures:
Election Date Measure Voter Approval Total Authorization Remaining Authorization November 5, 2002 E 61.6% $394,516,464 - November 6, 2012 E 68.3% $350,000,000 $200,000,000 ▪ Under the combined authorizations, the District has issued a total of five new money and three refunding bond issues
▪ 2020 plan of finance contemplates issuing an additional $50 million under the 2012 Measure E authorization and advance refunding various outstanding bonds under the 2002 Measure E authorization for debt service savings
Original Par Call Final Par Dated Date Issue Structure Amount Date Maturity Outstanding Measure E: Election of 2002 September 11, 2012 General Obligation Bonds, Current Interest Bonds/ $180,812,882 CIBs: August 1, 2022 August 1, 2038 $172,035,305 Series 2012C* Capital Appreciation Bonds CABs: N/A September 11, 2012 2012 General Obligation Current Interest Bonds $41,755,000 August 1, 2022 August 1, 2023 $19,455,000 Refunding Bonds* January 28, 2016 2016 General Obligation Current Interest Bonds $85,825,000 August 1, 2026 August 1, 2031 $62,850,000 Refunding Bonds Remaining Authorization: $3,582 Total Outstanding: $254,340,305 Measure E: Election of 2012 January 26, 2016 General Obligation Bonds, Current Interest Bonds $100,000,000 August 1, 2026 August 1, 2045 $88,475,000 Series 2016A August 29, 2018 General Obligation Bonds, Current Interest Bonds $50,000,000 August 1, 2028 August 1, 2048 $45,610,000 Series 2018B Remaining Authorization: $200,000,000 Total Outstanding: $134,085,000
*Bond series to be refunded with 2020 General Obligation Refunding Bonds.
EL CAMINO COMMUNITY COLLEGE DISTRICT 44 2020 General Obligation Bonds Plan of Finance1
▪ The District plans to refund a Bond Maturities to Call Par Amount Par Amount portion of the District’s Series Issue be Refunded Date Refunded Unrefunded2 2012C bonds and 2012 2012C 2037 8/1/2022 $30,000,000 $142,035,305 2012 Refunding Bonds with taxable Refunding 2023 8/1/2022 $6,805,000 $12,650,000 current interest refunding bonds Transaction Summary1 Refunding New Money ▪ The Series 2020C Bonds will Series 2020C be sized with a conservative Par Amount $40,475,000 $50,000,000 Tax Status Taxable Tax-Exempt near-term growth in assessed True Interest Cost 2.28% 2.37% values, with values returning Final Maturity 2037 2045 to assumed long-term Gross Savings $9,018,304 average in FY 2023-24 Net PV Savings ($) $6,793,563 Net PV Savings (%) 18.46% ▪ FY 2021-22: 2.00% Escrow Efficiency 81.3% ▪ FY 2022-23: 3.00% ▪ FY 2023-24 and thereafter: 4.0%
1Preliminary, subject to final pricing results. 2Represents non-callable par.
EL CAMINO COMMUNITY COLLEGE DISTRICT 45 Project Overview
▪ As part of the ongoing modernization project at the College, the bond proceeds will be used to finance the following state-of-the-art academic buildings: ▪ Behavioral & Social Science Building ▪ Estimated total costs: $19.34 million ▪ Square footage: 43,454 Behavioral and Social Sciences and Arts Complex ▪ Estimated construction completion: August 2022 ▪ Art Complex: ▪ Estimated total costs: $26.43 million ▪ Square footage: 58,450 ▪ Estimated construction completion: August 2022
Arts Complex
Source: El Camino Community College Facilities Bond Program Presentation to the Board of Trustees (dated February 18, 2020).
EL CAMINO COMMUNITY COLLEGE DISTRICT 46 Closing Remarks Closing Remarks
▪ Consistent operating performance characterized by strong ending fund balances and healthy reserve levels ▪ Conservative budgeting has resulted in the District’s year-end financials to outperformed the annual budget ▪ Experienced governance and executive management team ▪ District is strongly supported by the community ▪ Manageable overall debt burden ▪ District has and continues to proactively address STRS and PERS unfunded liabilities ▪ Disciplined approached to managing its OPEB liability; plan is just over 85% funded ▪ Repeated strong year over year growth in District’s assessed values with further growth to be realized through the changing of property ownership ▪ Diverse and robust economy and employment base supports District’s large assessed value base
EL CAMINO COMMUNITY COLLEGE DISTRICT 48 Financing Schedule
September 2020 October 2020 S M T W T F S S M T W T F S 1 2 3 4 5 1 2 3 6 7 8 9 10 11 12 4 5 6 7 8 9 10 13 14 15 16 17 18 19 11 12 13 14 15 16 17 20 21 22 23 24 25 26 18 19 20 21 22 23 24 27 28 29 30 25 26 27 28 29 30 31
Date Activity Friday, September 11 Rating meetings Wednesday, September 23 Receive credit ratings Week of September 28 Post Preliminary Official Statement Week of October 5 Bonds priced Week of October 12 Post Official Statement Week of October 26 Transaction closed
EL CAMINO COMMUNITY COLLEGE DISTRICT 49