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Board Budget Sub Committee Minutes

August 23, 2005

  Committe Members: Mark Dover, Elvira Robinson, and Leonard Washington
  Committe Resources: Joseph Keeler and Steve Kinsella

1) Call Meeting to Order: Elvira Robinson, the Subcommittee’s Chair, called the meeting to order at 4:04 p.m.
2) Approve Minutes: The minutes from the May 17, 2005 were approved unanimously; MS (Washington/Dover).
3) Comments from the Public: None.

4) Status of Gavilan FY 2004-05 Budget/Actual
  Joe noted that the General Fund (10) for the estimated actuals for FY 04-05 shows a deficit of ($183,971). That was the estimate when the budget went to the printer. The business office continues the process of closing the books for FY 04-05 and believes that deficit will be almost eliminated to approximately to ($20,000) by using prior year carryover of Instructional Material Fundsí Grant and TTIP Grant money.
5) Status of State FY 2005-06 Budget
  Joe provided each subcommittee member with a copy of the "State Budget Update" that summarized the State budget as signed by the Governor. In particular, Joe reviewed the cost of living adjustment of 4.23% and how the equalization funding was considerably less than the prior year. Joe also discussed FY 05-06 (3.76%) enrollment growth and how it will decline in the FY 06-07 year (1.82%). Discussion followed concerning how the growth numbers are calculated at the State level and what Gavilan might do to capitalize its growth in FY 05-06.
6) Status of Gavilan FY 2005-06 Budget
  Joe referred the subcommittee to "Final Budget FY 05-06, Exhibit 2 pages 1-6". Joe described how to read the spreadsheet; how the District finances are controlled by a number of different funds and that the total Gavilan budget is approximately $32 million. There was discussion concerning the detail of intra/interfund transfers.

Steve reviewed with the subcommittee the need to add a new fund to those already established in the Gavilan family of funds as shown on Exhibit 2. This new fund would be called the "Golf Course Development Fund." This new fund would need some operating cash of approximately $500,000 over the next year or two in order to provide for the planning and other services needed in the development of the golf course as discussed with the full Board earlier. One way of securing the ½ million dollars would be to borrow it from outside the college or have the district's Debt Service Fund, that has a balance in excess of $3 million for retiree health liability, loan the Golf Course Development Fund the $500,000. The subcommittee gave its approval to take it to the full board as an action item with the following conditions:
  1. a loan note be made documenting that the $500,000 was a loan and,
  2. if the golf course development fund was unable to pay back the loan, the general fund would over a period of years reimburse the debt service fund for the balance of the loan.
Steve indicated that he would bring this to the September 13, 2005 Board meeting for action.
7) Next Meeting Date The Committee agreed by consensus to wait until later in the year to set the next meeting date.
8) Adjourned. Meeting adjourned at 5:10 p.m.



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Last modified: September 14, 2009
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