Exhibit C - Discussion Materials - New Jersey City University 7.27.22

JOSH LASSITER, Director

6101 Carnegie Blvd, Suite 210 Charlotte NC 28209

Phone: (252) 232 8137

Email: jlassiter@firsttryon.com

Summary of Income Statements

Operating Revenues

Nonoperating Revenues

Less Operating Expenses

Historical Revenues, Expenses, Changes in Net Position

in thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY2022

101,930 101,415 100,900 95,097 96,400

63,087 57,111 53,827 80,965 53,286

(175,509) (170,768) (165,630) (160,674) (152,170)

Less Nonoperating Expenses (7,500) (7,159) (7,485) (8,581) (9,337) (11,357)

Add Capital Grants and Gifts 19,520 4,027 3,172 225 Increase (decrease) in net position 2,610 (13,624) (16,555) (19,484) 6,276 (13,841)

From 2018 to 2020, NJCU ran deficits for three consecutive years.

The deficits are the result of year over year declines in enrollment, coupled with aggressive real estate developments and significant growth in academic and athletic programs aimed a addressing a declining enrollment market.

In 2021, NJCU increased its net position; however, the university’s non-operating revenue was bolstered by $27.19 million in federal HEERF funds.

FY 2022

year

that NJCU

a deficit close to $14.0 million

FY 2023 Tuition and Fee Projections

Tuition and Fee Assumptions:

Tuition and fee estimates assume an 8% decline in undergraduate enrollment compared to FY 2022.

A 5% decline is projected for graduate student enrollment.

All other categories of enrollment including the accelerated nursing program are projected to remain flat.

A 3% increase in tuition is budget for all classes.

Tuition and fee estimates are further reduced to reflect a move to a modified accrual basis of budgeting in which revenue will be budgeted based on what is measurable and available in generally a one year time frame.

Student Tuition & Fees

FY 2023

Undergraduate Tuition Total 56,857,482

Graduate Tuition Total 15,693,209

Accelerated Nursing Tuition Total 2,883,181

A. Harry Moore School Tuition 5,273,600

Ed.D Ed Tech Doctorate 993,794

Ed.D Community College Leadership Doctorate 966,958

D.Sc. Civil Service 253,805

HBX Credit 161,103

Pathways-Credit 727,588

Pathways-NonCredit 359,412

Tuition Recovery Write Off 98,558

Student Fees 3,631,309

Total 87,900,000

Less adjustment for revenue availability (5,400,000)

FY 2023 Tuition & Fees 82,500,000

FY 2023 Base Budget

The FY 2023 base budget for tuition and fees reflects an 8% decline in enrollment, partially offset by an overall 3% tuition rate increase. Beginning with FY 2023, will NJCU is budgeting on a modified accrual budgetary basis. The base budget shows a structural imbalance of $22.6 million, reflecting operating deficits that have persisted for years:

FY 2022 FY 2023 $ %

Revenues Estimate Base Budget Change Change

Tuition & Fees 86,485 82,500 (3,985) 4.61%

Auxiliary Enterprises 2,935 2,500 (435) -14.82%

Institutional Scholarships (14,445) (14,000) 445 -3.08%

Federal, State & Private Grants 2,253 3,000 747 33.16%

State Appropriation 30,924 33,824 2,900 9.38%

State Paid Fringe Benefits 21,619 21,000 (619) -2.86%

Other Revenue/Real Estate Proceeds 3,160 2,650 (510) -16.14%

Total Revenues 132,931 131,474 (1,457) -1.10%

Expenses

Salaries and Wages 88,491 87,478 (1,013) 1.14%

Fringe Benefits 22,378 21,400 (978) 4.37%

Insurance 477 600 123 25.79%

Utilities 3,273 3,000 (273) 8.34%

Other Non Personnel Expense 34,109 28,946 (5,163) 15.14%

Debt Service 9,374 8,710 (664) 7.08%

Capital Outlays 4,027 4,000 (27) -0.67%

Total Expenses 162,129 154,134 (7,995) -4.93%

Surplus(Deficit) (29,198) (22,660) 6,538

Strategies for Immediate Cost Containment

Salary & Wage Cost Reductions

Near Term: July 1, 2022 to Sept. 31, 2022:

mix of recurring and non-recurring salary & wage cost reductions have been implemented in the fist quarter to contain costs and immediately address the FY 2023 budget deficit.

Type Description

Recurring Base Salary & Wages for 790 active full-time employees, including contractually obligated AFT-10 union raises

Non-recurring Plus additional contractually required AFT-10 union raises

Non-recurring Plus severance/vacation payouts

Recurring Eliminated 10% of managerial workforce (non-union)

Non-recurring Reduce salaries of upper management

Non-recurring Employee furloughs of 5 to 15 days covering 56 managers

Recurring Reorganization/consolidation of upper management structure

Recurring Academic restructuring and consolidation

Recurring

supplemental instruction budget fron $10M to $8M per RPK study.

Recurring Reduce student wages

Personnel Reduce union bonuses and overtime

Non-recurring

Non-recurring

Estimated savings from freeze on all vacant positions

salary reserve for Priority Hires

savings from rightsizing initiatives (subject to change):

Adjusted Salary and Wages budget

2023

Headcount Reduction Effective Date

Estimated Dollar Savings

2023 FY 2024 Total

13-Jun-22 87,478,000 87,478,000

1-Jul-22 538,580 538,580

1-Jul-22 182,000 182,000

1-Jul-22 (1,301,234) (1,301,234)

1-Jul-22 (444,298) (444,298)

1-Jul-22 (303,722) (303,722)

1-Oct-22 (533,094) (533,094)

1-Mar-22 (1,145,250) (3,435,750) (4,581,000)

1-Jul-22 (2,000,000) (2,000,000)

1-Jul-22 (862,000) (862,000)

1-Jul-22 (360,000) (360,000)

1-Jul-22 (2,553,395) (2,553,395)

1-Jul-22 866,413 866,413

(7,916,000) (3,435,750) (11,193,211)

(3,435,750) 76,284,789

FY 2023 Budget Outlook

With Strategies for Cost Containment/Rightsizing

The proposed budget incorporates the cost containment and initial academic restructuring strategies from the previous slides. It also includes a projected $12.8 cash infusion from planned real estate sales.

FY 2022 FY 2023 FY 2023 $ %

Revenues Estimate Base Budget Proposed Change Change

Tuition & Fees 86,485 82,500 82,500 0.00%

Auxiliary Enterprises 2,935 2,500 2,500 0.00%

Institutional Scholarships (14,445) (14,000) (14,000) 0.00%

Federal, State & Private Grants 2,253 3,000 3,000 0.00%

State Appropriation 30,924 33,824 33,824 0.00%

State Paid Fringe Benefits 21,619 21,000 18,860 (2,140) -10.19%

Other Revenue/Real Estate Proceeds 3,160 2,650 2,650 0.00%

Total Revenues 132,931 131,474 129,334 (2,140) -1.63%

Operating Expenditures

Salaries and Wages 88,491 87,478 79,562 (7,916) 9.05%

Fringe Benefits 22,378 21,400 19,260 (2,140) 10.00%

Insurance 477 600 600 0.00%

Utilities 3,273 3,000 3,000 0.00%

Other Non-Personnel Expense 34,109 28,946 27,216 (1,730) 5.98%

Debt Service 9,374 8,710 8,710 0.00%

Capital Outlays 4,027 4,000 3,776 (224) 5.59%

Total Operating Expenditures 162,129 154,134 142,125 (12,009) 7.79%

Operating Surplus(Deficit) (29,198) (22,660) (12,791)

Non-Operating Revenue (Expenditures)

Proceeds from Sale of Real Estate 0 0 12,791

Total Non-Operating 12,791

Net Surplus (Deficit) (29,198) (22,660) (0)

July

Flow Projections

through December

NJCU continues to operate with and project thin liquidity:

Starting date Jul-22

Cash balance alert minimum 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

`

Beginning Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Total

Cash and cash equivalents (beginning of month) 25,582,802 25,582,802 18,977,773 19,083,490 26,862,982 13,849,272 7,640,004

CASH RECEIPTS

Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22

Total State appropriations 1,716,120 1,965,500 2,851,266 2,443,726 3,031,024 3,066,571 15,074,208 Receipts from student A/R 2,025,702 3,085,463 4,718,800 4,371,423 1,837,961 2,269,438 18,308,787 Pell/TAG/Grants 500,000 1,700,000 11,200,000 1,000,000 2,200,000 1,000,000 17,600,000

H. Harry Moore receipts - 2,300,000 - - - - 2,300,000

Fund raising - - - - - - -

Interest income received - - - - - -Endowment draws - - - - - - -

TOTAL CASH RECEIPTS 4,241,822 9,050,963 18,770,066 7,815,148 7,068,985 6,336,009 53,282,994

Total cash available 25,582,802 29,824,624 28,028,736 37,853,556 34,678,130 20,918,257 13,976,014

CASH PAID OUT

Jul-22 Aug-22

7,788,679

1,578,675 14,554,963

FY 2023 Cash Flow Projections

2022, through

31, 2022

The graph below depicts NJCU’s thin liquidity, with cash projected to drop below $1.0 million in December. NJCU is requesting to receive its full state appropriation within the first quarter of FY 2023 to boost liquidity to provide a runway for continued rightsizing efforts.

Cash Projections

45,000,000

35,000,000

Cash on Hand

25,000,000

20,000,000

15,000,000

5,000,000

Period

Cash Flow Projection

Cash on Hand Minimum Alert

Physical Plant and Infrastructure Needs

Critical Physical Plant and Infrastructure Needs

NJCU has identified

critical

$3.78M included in the proposed

Hepburn Hall

Hepburn Hall

Hepburn Hall

Grossnickle

Rossey

JMAC

VAB

Library

Library

Charter School

Vodra Hall

Coop Dorm

West Campus

The university currently

for repair and renovation needs.

Needs

Tower

500,000

250,000

250,000

JOSH LASSITER, Director

750,000

150,000

250,000

350,000

75,000

SUBTOTAL

there Opportunities for NJCU to Refinance?

New Jersey City University’s Debt Profile (As of 6/30/2021)

New Jersey Educational Facilities Authority Revenue Bonds

Series Description

Par Outstanding Final Maturity Avg. Coupon

Series 2007F Revenue Refunding Bonds 2,645,000 7/1/2032 4.250%

Series 2010G Build America Bonds 18,310,000 7/1/2040 4.151%

Series 2015A Revenue Bonds 35,340,000 7/1/2045 4.896%

Series 2016D Revenue Refunding Bonds 35,885,000 7/1/2035 4.087%

Series 2021A Revenue Refunding Bonds 5,640,000 7/1/2036 4.297%

Series 2021B Taxable Revenue Refunding Bonds 38,545,000 7/1/2051 4.422%

Subtotal 136,365,000 4.412%

Other Long-Term Debt

Series Description

Par Outstanding Final Maturity Avg. Coupon

2005A New Jersey Environmental Infrastructure - Trust Loan 270,000 8/1/2025 4.00%-5.00%

2005A New Jersey Environmental Infrastructure - Fund Loan 488,000 8/1/2025 Imputed

2013A New Jersey Environmental Infrastructure - Trust Loan 2,500,000 8/1/2032 3.00%-5.00%

2013A New Jersey Environmental Infrastructure - Fund Loan 6,598,828 8/1/2032 Imputed

2016B NJEFA Capital Improvement Fund 1,493,000 9/1/2036 3.00%-5.50%

Various Capital Leases 269,000 Various Various

Subtotal 11,618,828 0.000%

New Jersey Economic Development Authority

Series Description

Par Outstanding Final Maturity Avg. Coupon

2015A Foundation Revenue Bonds, Series 2015A 48,425,000 7/1/2047 4.752%

Subtotal 48,425,000 4.752%

Total 196,408,828

Revenue Refunding Bonds, Series 2021AB

Downgrade Impact on Refinancing Opportunities

Approximately $24 million of NJCU’s Series 2015A Bonds are callable in early 2025, and under most circumstances would be a candidate that we’d look to refund for savings at or in advance of its call date. However, the following factors make it unlikely, that we will be able to refund Series 2015A for savings:

1. Ratings Downgrade(s)

When NJCU issued the 2015A Bonds, NJCU’s Moody’s credit rating was A2 five “notches” higher than the Ba1 rating that Moody’s recently assigned to NCJU (See table to the right).

–

In the current market, the spread between A2 credits and Ba1 credits can range from 150 250 bps. This difference will make a “refunding for savings” very difficult to execute.

2. Advance Refunding Tax Rules

–

If a borrower wishes to refinance tax exempt bonds in advance of the bonds’ call date (an “advance refunding”), it must do so with higher costing taxable debt. This dynamic makes refinancing the 2015A Bonds for savings in the near term difficult.

3. Debt Service Reserve Fund Requirement

Before its recent downgrades, NJCU’s credit quality was such that public investors did not require NJCU to borrow for a Debt Service Reserve Fund (“DSRF”). At NJCU’s current credit rating, however, a DSRF is required to clear the market.

– This additional cost increases a bond series’ interest cost and makes it difficult to generate savings when refinancing bonds that did not originally have a DSRF with bonds that do have a DSRF.

Moody's S&P Fitch

Aaa AAA AAA

Aa1 AA+ AA+

Aa2 AA AA

Aa3 AA- AA-

A1 A+ A+

A2 A A

A3 A- A-

Baa1 BBB+ BBB+

Baa2 BBB BBB

Baa3 BBB- BBB-

Ba1 BB+ BB+

Ba2 BB BB

Ba3 BB- BB-

Non-Investment Grade

2015A Bond Rating

Current Bond Rating

Downgrade Impact on Refinancing Opportunities

4. Market Conditions

to a point, and all else equal,

refinance

bond series for savings even if rates rise in between the series’ sale date and its call date. However, interest rates have moved high enough relative to where they were when NJCU issued the 2015A Bonds that refinancing the 2015A’s does not currently produce debt service savings.

5. Amortization Shape

not begin

limits

ability to create near term cash flow