RGI Collateral
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Transcript of RGI Collateral
Five Year Plan 2013 – 2017
Annual Fund $3,250,000
Rising Generations Initiative $2,500,000
Total $5,750,000
Scale of Gifts
Number of Gifts Amount Totaling 3 $250,000 $750,000 8 $100,000 $800,000 14 $50,000 $700,000
Many <$50,000 $250,000 $2,500,000
Berwick Academy, founded in 1791, is a Pre-kindergarten through Post-graduate college-preparatory day school dedicated to
promoting virtue and useful knowledge among the rising generations. As one school with three divisions, Berwick develops balanced leaders through personal relationships that foster confidence and achievement. By engaging in a program distinguished by academic challenge, creative expression and performance, innovative technology, ethical sportsmanship, wellness, and a commitment to the common good, Berwick graduates become resilient citizens by living our core values of balance, engagement, excellence, and integrity.
Berwick Academy Mission
Five Year Plan 2013 – 2017
Annual Fund $3,250,000
Rising Generations Initiative $2,500,000
Total $5,750,000
Scale of Gifts
Number of Gifts Amount Totaling 3 $250,000 $750,000 8 $100,000 $800,000 14 $50,000 $700,000
Many <$50,000 $250,000 $2,500,000
Perrault bequest $ 3.8 MM
III Century Campaign GOAL: $5M
Math & Science Center
GOAL: $6M
Campaign for Academic Excellence
GOAL: $15M AF: 2020
GOAL: $3M
$-‐
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Investments -‐ Historical & Projected
Historical and Projected Investment Data
The Academy cherishes its 220 year history of serving the Seacoast as a public town academy (until 1960), a boarding school (approximately 1960-1975), and now in its present form as a PK – 12 country day school. The period from 1990-2007 was characterized by truly extraordinary enhancements to our physical plant as well as meaningful endowment growth. Facil-ity additions included the Athletic Center, Jeppesen Science Center, Clement Middle School, and the Jackson Library. During this period, the School also began to build its endowment and investments from virtually nothing in the early 1990’s to a net endowment (endowment minus debt) of nearly $8 million (gross endowment approximately $20 million) by 2006. There is no question that students at Berwick today are the extraordinary beneficiaries of these courageous investments and improvements
While these enhancements revolutionized the campus in the near term, they did require the Academy to secure nearly $12 million of debt to bridge the construction. Since taking on these notes, our debt service costs had grown to represent a significant drain on the operating budget with principal and interest costs reaching their zenith of $1.05MM during the 2009-2010 fiscal year (nearly 10% of our operating budget at the time). In order to meet these emerging principle and interest costs, the School began drawing heavily from its newly secured endowment. Combined with negative market re-turns, this began a pattern of eroding principle, beginning a trend of devaluing the financial strength of the Academy in the long term. The strategy of debt acquisition and construction served Berwick incredibly well during the past decade, but the market realities of the past few years have made this a difficult strategy to sustain. It is fair to say that in our current model, we are depleting vital investment resources that ensure the high caliber of Berwick’s faculty and programs at the expense of future generations.
Berwick Academy’s greatest strength is the relationships forged between students and teachers, and the vast majority of our teachers are exceptional. However, faculty demographics suggest that significant numbers of teachers will retire in the next ten years. In the past, we have relied on tuition remission and geography to drive hiring success in the local area. Going for-ward, these tools will not be sufficient to elevate the level of our faculty on a national level. Consequently, we will improve salary levels and benefit programs to the mean levels of our benchmark group. Competitive salary and benefits will ensure our ability to attract and retain the best talent from across the country for our students. Continued emphasis on evaluations, professional development, and making diversity a priority in hiring will complement our increased level of investment in faculty compensation.
Faculty Compensation
Campus Enhancement Projects
The campus is one of our greatest assets. While it presently serves our faculty and student body well, a number of improvements will be required and undertaken over the next ten years. We will construct a modern Performing Arts Center that will accommodate a desired high school enrollment of 325-375 and meet the needs of our sophisticated Arts program. When the Upper School does grow, we will renovate the inside of Fogg and/or repurpose some of our existing spaces across campus. We know that the needs of our Office of Advancement will continue to expand, and we will renovate Oakes House to address Advancement space requirements and/or the future of our employee day care. Finally, the curb appeal of our beautiful campus trails our competitors, and we want to build our image as a source of pride to the local community. Therefore, we will complete the master landscaping plan that has been put in place for the major entrances of the school. The impact of these changes cannot be overstated from an enrollment and community morale perspective.
$25,000-$50,000 $50,000
$100,000-$200,000
BERWICK ACADEMYFY 2013 -‐ 2017
LONG RANGE BUDGET PLANNING FINANCIAL MODELSummary Details
Summary Model 4.xlsx Version 4
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Scenario I (Improvements without Fundraising)
Incremental Annual Fund Increase 100,000$ -$ -$ -$ -$ 5% Incremental Salary Pool Increase 314,628$ 314,869$ 287,829$ 333,826$ 349,636$
Incremental Campus Investment 150,000$ 150,000$ 100,000$ 100,000$ 100,000$ Unrestricted Draw 433,889$ 463,889$ 395,000$ 590,000$ 660,000$ Debt Service details Interest only Interest only P&I (half year) P&I P&ITotal Cash & Investments @ June 30 14,615,193$ 14,417,565$ 14,269,769$ 13,921,552$ 13,485,741$
Marketable Investments - Beginning Balance 14,650,000$ 14,515,193$ 14,317,565$ 14,169,769$ 13,821,552$ less draw (unrestricted & restricted) (689,032)$ (744,642)$ (681,756)$ (883,179)$ (960,051)$ add operating OPEX surplus 9,245$ 7,049$ 1,346$ 7,847$ 10,078$
3.72% add investment return 544,980$ 539,965$ 532,613$ 527,115$ 514,162$ Ending Balance 14,515,193$ 14,317,565$ 14,169,769$ 13,821,552$ 13,385,741$
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Scenario II (Treading Water)
Incremental Annual Fund Increase 100,000$ -$ -$ -$ -$ 3% Incremental Salary Pool Increase 314,628$ 188,921$ 191,488$ 228,532$ 236,256$
Incremental Campus Investment -$ -$ -$ -$ -$ Unrestricted Draw 283,889$ 283,889$ 200,000$ 150,000$ 90,000$ Debt Service details Interest only Interest only P&I (half year) P&I P&ITotal Cash & Investments @ June 30 14,765,193$ 14,865,686$ 15,075,008$ 15,204,006$ 15,378,162$
Marketable Investments - Beginning Balance 14,650,000$ 14,665,193$ 14,765,686$ 14,975,008$ 15,104,006$ less draw (unrestricted & restricted) (539,032)$ (564,642)$ (486,756)$ (443,170)$ (390,051)$ add operating OPEX surplus 9,245$ 119,591$ 146,794$ 15,097$ 2,338$
3.72% add investment return 544,980$ 545,545$ 549,284$ 557,070$ 561,869$ Ending Balance 14,665,193$ 14,765,686$ 14,975,008$ 15,104,006$ 15,278,162$
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Scenario III (Improvements with Fundraising)
Incremental Annual Fund Increase 600,000$ 500,000$ 500,000$ 500,000$ 500,000$ 5% Incremental Salary Pool Increase 314,628$ 314,869$ 287,829$ 333,826$ 349,636$
Incremental Campus Investment 150,000$ 150,000$ 100,000$ 100,000$ 100,000$ Unrestricted Draw -$ -$ -$ -$ -$ Debt Service details Interest only Interest only P&I (half year) P&I P&ITotal Cash & Investments @ June 30 14,865,193$ 14,965,686$ 15,175,008$ 15,304,006$ 17,117,226$
Marketable Investments - Beginning Balance 14,650,000$ 15,089,908$ 15,490,618$ 15,965,461$ 16,518,468$ less draw (restricted only) (255,143)$ (280,753)$ (286,756)$ (290,179)$ (300,051)$ add operating OPEX surplus 75,356$ 43,160$ 106,346$ 167,847$ 100,078$
4.23% add investment return 619,695$ 638,303$ 655,253$ 675,339$ 698,731$ Ending Balance 15,089,908$ 15,490,618$ 15,965,461$ 16,518,468$ 17,017,226$
$2.5 Million Impact of the Rising Generations Initiative
$12,800,000
$13,000,000
$13,200,000
$13,400,000
$13,600,000
$13,800,000
$14,000,000
$14,200,000
$14,400,000
$14,600,000
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Marketable Investments -‐ Model I
Financial Models
Scenario I
BERWICK ACADEMYFY 2013 -‐ 2017
LONG RANGE BUDGET PLANNING FINANCIAL MODELSummary Details
Summary Model 4.xlsx Version 4
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Scenario I (Improvements without Fundraising)
Incremental Annual Fund Increase 100,000$ -$ -$ -$ -$ 5% Incremental Salary Pool Increase 314,628$ 314,869$ 287,829$ 333,826$ 349,636$
Incremental Campus Investment 150,000$ 150,000$ 100,000$ 100,000$ 100,000$ Unrestricted Draw 433,889$ 463,889$ 395,000$ 590,000$ 660,000$ Debt Service details Interest only Interest only P&I (half year) P&I P&ITotal Cash & Investments @ June 30 14,615,193$ 14,417,565$ 14,269,769$ 13,921,552$ 13,485,741$
Marketable Investments - Beginning Balance 14,650,000$ 14,515,193$ 14,317,565$ 14,169,769$ 13,821,552$ less draw (unrestricted & restricted) (689,032)$ (744,642)$ (681,756)$ (883,179)$ (960,051)$ add operating OPEX surplus 9,245$ 7,049$ 1,346$ 7,847$ 10,078$
3.72% add investment return 544,980$ 539,965$ 532,613$ 527,115$ 514,162$ Ending Balance 14,515,193$ 14,317,565$ 14,169,769$ 13,821,552$ 13,385,741$
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Scenario II (Treading Water)
Incremental Annual Fund Increase 100,000$ -$ -$ -$ -$ 3% Incremental Salary Pool Increase 314,628$ 188,921$ 191,488$ 228,532$ 236,256$
Incremental Campus Investment -$ -$ -$ -$ -$ Unrestricted Draw 283,889$ 283,889$ 200,000$ 150,000$ 90,000$ Debt Service details Interest only Interest only P&I (half year) P&I P&ITotal Cash & Investments @ June 30 14,765,193$ 14,865,686$ 15,075,008$ 15,204,006$ 15,378,162$
Marketable Investments - Beginning Balance 14,650,000$ 14,665,193$ 14,765,686$ 14,975,008$ 15,104,006$ less draw (unrestricted & restricted) (539,032)$ (564,642)$ (486,756)$ (443,170)$ (390,051)$ add operating OPEX surplus 9,245$ 119,591$ 146,794$ 15,097$ 2,338$
3.72% add investment return 544,980$ 545,545$ 549,284$ 557,070$ 561,869$ Ending Balance 14,665,193$ 14,765,686$ 14,975,008$ 15,104,006$ 15,278,162$
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Scenario III (Improvements with Fundraising)
Incremental Annual Fund Increase 600,000$ 500,000$ 500,000$ 500,000$ 500,000$ 5% Incremental Salary Pool Increase 314,628$ 314,869$ 287,829$ 333,826$ 349,636$
Incremental Campus Investment 150,000$ 150,000$ 100,000$ 100,000$ 100,000$ Unrestricted Draw -$ -$ -$ -$ -$ Debt Service details Interest only Interest only P&I (half year) P&I P&ITotal Cash & Investments @ June 30 14,865,193$ 14,965,686$ 15,175,008$ 15,304,006$ 17,117,226$
Marketable Investments - Beginning Balance 14,650,000$ 15,089,908$ 15,490,618$ 15,965,461$ 16,518,468$ less draw (restricted only) (255,143)$ (280,753)$ (286,756)$ (290,179)$ (300,051)$ add operating OPEX surplus 75,356$ 43,160$ 106,346$ 167,847$ 100,078$
4.23% add investment return 619,695$ 638,303$ 655,253$ 675,339$ 698,731$ Ending Balance 15,089,908$ 15,490,618$ 15,965,461$ 16,518,468$ 17,017,226$
$2.5 Million Impact of the Rising Generations Initiative
Scenario II
$14,300,000
$14,400,000
$14,500,000
$14,600,000
$14,700,000
$14,800,000
$14,900,000
$15,000,000
$15,100,000
$15,200,000
$15,300,000
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Marketable Investments -‐ Model II
Scenario III
BERWICK ACADEMYFY 2013 -‐ 2017
LONG RANGE BUDGET PLANNING FINANCIAL MODELSummary Details
Summary Model 4.xlsx Version 4
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Scenario I (Improvements without Fundraising)
Incremental Annual Fund Increase 100,000$ -$ -$ -$ -$ 5% Incremental Salary Pool Increase 314,628$ 314,869$ 287,829$ 333,826$ 349,636$
Incremental Campus Investment 150,000$ 150,000$ 100,000$ 100,000$ 100,000$ Unrestricted Draw 433,889$ 463,889$ 395,000$ 590,000$ 660,000$ Debt Service details Interest only Interest only P&I (half year) P&I P&ITotal Cash & Investments @ June 30 14,615,193$ 14,417,565$ 14,269,769$ 13,921,552$ 13,485,741$
Marketable Investments - Beginning Balance 14,650,000$ 14,515,193$ 14,317,565$ 14,169,769$ 13,821,552$ less draw (unrestricted & restricted) (689,032)$ (744,642)$ (681,756)$ (883,179)$ (960,051)$ add operating OPEX surplus 9,245$ 7,049$ 1,346$ 7,847$ 10,078$
3.72% add investment return 544,980$ 539,965$ 532,613$ 527,115$ 514,162$ Ending Balance 14,515,193$ 14,317,565$ 14,169,769$ 13,821,552$ 13,385,741$
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Scenario II (Treading Water)
Incremental Annual Fund Increase 100,000$ -$ -$ -$ -$ 3% Incremental Salary Pool Increase 314,628$ 188,921$ 191,488$ 228,532$ 236,256$
Incremental Campus Investment -$ -$ -$ -$ -$ Unrestricted Draw 283,889$ 283,889$ 200,000$ 150,000$ 90,000$ Debt Service details Interest only Interest only P&I (half year) P&I P&ITotal Cash & Investments @ June 30 14,765,193$ 14,865,686$ 15,075,008$ 15,204,006$ 15,378,162$
Marketable Investments - Beginning Balance 14,650,000$ 14,665,193$ 14,765,686$ 14,975,008$ 15,104,006$ less draw (unrestricted & restricted) (539,032)$ (564,642)$ (486,756)$ (443,170)$ (390,051)$ add operating OPEX surplus 9,245$ 119,591$ 146,794$ 15,097$ 2,338$
3.72% add investment return 544,980$ 545,545$ 549,284$ 557,070$ 561,869$ Ending Balance 14,665,193$ 14,765,686$ 14,975,008$ 15,104,006$ 15,278,162$
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Scenario III (Improvements with Fundraising)
Incremental Annual Fund Increase 600,000$ 500,000$ 500,000$ 500,000$ 500,000$ 5% Incremental Salary Pool Increase 314,628$ 314,869$ 287,829$ 333,826$ 349,636$
Incremental Campus Investment 150,000$ 150,000$ 100,000$ 100,000$ 100,000$ Unrestricted Draw -$ -$ -$ -$ -$ Debt Service details Interest only Interest only P&I (half year) P&I P&ITotal Cash & Investments @ June 30 14,865,193$ 14,965,686$ 15,175,008$ 15,304,006$ 17,117,226$
Marketable Investments - Beginning Balance 14,650,000$ 15,089,908$ 15,490,618$ 15,965,461$ 16,518,468$ less draw (restricted only) (255,143)$ (280,753)$ (286,756)$ (290,179)$ (300,051)$ add operating OPEX surplus 75,356$ 43,160$ 106,346$ 167,847$ 100,078$
4.23% add investment return 619,695$ 638,303$ 655,253$ 675,339$ 698,731$ Ending Balance 15,089,908$ 15,490,618$ 15,965,461$ 16,518,468$ 17,017,226$
$2.5 Million Impact of the Rising Generations Initiative
$14,000,000
$14,500,000
$15,000,000
$15,500,000
$16,000,000
$16,500,000
$17,000,000
$17,500,000
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Marketable Investments -‐ Model III
[INSERT in back pocket]
Five Year Plan 2013 – 2017
Annual Fund $3,250,000
Rising Generations Initiative $2,500,000
Total $5,750,000
Scale of Gifts
Number of Gifts Amount Totaling 3 $250,000 $750,000 8 $100,000 $800,000 14 $50,000 $700,000
Many <$50,000 $250,000 $2,500,000
Five Year Plan 2013 – 2017
Annual Fund $3,250,000
Rising Generations Initiative $2,500,000
Total $5,750,000
Mr. and Mrs. John Smith
Annual Fund $20,000 x 5 $100,000
Rising Generations Initiative $30,000 x 5 $150,000
Total $50,000 x 5 $250,000
Annual Contribution Years Accumulated Contribution
[INSERT in back pocket]
In support of the Rising Generations Initiative, this confirms my pledge to invest $_________ in Berwick Academy to the Annual Fund. It is my understanding that the Board of Trustees intends to designate end of year surpluses to the Academy’s investment portfolio beginning in Fiscal Year 2013 and ending on June 30, 2017.
Donor(s)_______________________________________________________________________
I/We intend to fulfill this commitment according to the following schedule: (Please circle one and indicate dates and amounts below)
Pledge to be paid over 1 2 3 4 5 year(s)
___________, 2012 $ ___________ ___________, 2013 $ ___________ ___________, 2014 $ ___________ ___________, 2015 $ ___________ ___________, 2016 $ ___________
Payment Details: Please send reminder notices as installments become due: Yes___ No___ Preferred listing of name(s):_____________________________________________________________________ OR list as Anonymous ____
We plan to make our gift by: check___ credit card ___ stock___ other___
Please make checks payable to: Berwick Academy Rising Generations Initiative Please circle credit card type: (VISA MC AMEX) #_________________________________________Exp.Date_______CIC______ By signing this document, I/we understand that all pledges are intended to be binding, in accordance with their terms, absent a material change in financial circumstances. Signature(s)______________________________________________________________Date________ The Board of Trustees of Berwick Academy is very grateful for your pledge of support to the Rising Generations Initiative. Your commitment will help strengthen the Academy and improve the educational opportunities for talented students throughout the Seacoast. Thank you for investing in our future.
[INSERT in back pocket]