GAVILAN JOINT COMMUNITY COLLEGE DISTRICT
Board Budget Subcommittee Minutes
September 9, 2010
|Committee Members:||Mike Davenport and Mark Dover|
|Committee Resources:||Steve Kinsella, Joseph Keeler, Susan Cheu, and Nancy Bailey|
|1)||Call Meeting to Order:||Trustee Davenport called the meeting to order at 4:18 p.m.|
|2)||Approve Minutes:||The minutes from August 10, 2010 were approved unanimously; MS (Dover/Davenport).|
|3)||Comments from the Public:||No comments from the public.|
|4)||FY 2010-11 State Budget|
|Vice President Keeler stated that, as of this date, the state does not have an approved budget and there is no indication when there will be one. Trustee Davenport had spoken to Assembly Representative Bill Monning and he indicated that there will not be a change in the state education budget. Trustee Dover asked if the district had received any federal stimulus funding to rehire teachers and President Kinsella indicated no.|
|5)||FY 2009-10 Gavilan "Actuals"|
Business Services Director, Susan Cheu, reviewed the handout, "Analysis of FY09/10 Projected General Fund Surplus," which provided detail on revenue adjustments, expense adjustments and inter/intrafund backfill which resulted in a pre-audit surplus of $548,000. Trustee Dover said we reduced some services to students in FY09/10 to keep the deficit low and he hoped that it did not result in the overage. Trustee Davenport and Trustee Dover had questions and comments related to the unexpected surplus and a discussion continued regarding the items that affected the swing in the budget to actual figures. Some factors discussed were: staff cutting back on expenses; implementation of Banner which allowed better monitoring of program overspending; an unexpected RDA refund; and a reduction in the projected backfill to categorical programs.
Joe Keeler reminded everyone that this was one time money due to the items previously noted. President Kinsella felt that budget swings would level off. He also reported that the state has been placing the district in unusual situations and that the district needs to be prepared to respond to them. All agreed that a "balanced" budget is important and that programs will continue to be assessed carefully when developing the budget. Trustee Davenport thanked Susan Cheu for explaining the detail behind the surplus balance.
|6)||FY 2010-11 Gavilan Final Budget|
Vice President, Joe Keeler, referred the Committee to the spreadsheet, "Consolidated Summary of All Funds Adopted Budget FY 2010-11," which reflected a "breakeven" budget with a projected ending fund balance at June 30, 2011 of $2,676,883; this is 9.25% of expenditures and transfer out. He reminded the Committee that the ending fund balance represents one time funds. Joe Keeler mentioned several items related to this budget; assumptions include a $569,000 transfer from the retiree health benefit trust fund, no COLA, and no growth revenue. He also indicated several items that may affect the budget but as of now are unknown; Title V funding and STEM grant funding. If these potential revenue funds become available, revenue and expenditures may balance and the retiree health benefit trustee transfer can be reversed.
Trustee Davenport asked if more revenues become available what would be the approach for spending it. President Kinsella said that a shared governance process is in place and that any budget adjustments would go to the Board with a recommendation from the President. Interfund transfers could also be approved to debt service and capital projects, as an example. In addition, President Kinsella indicated if funds were desired for starting a new curriculum program it would take up to 18 months from the point of conception to being approved by the Chancellor's Office.
|7)||FY 2010-11 Transfer of Funds for Various Facility Projects|
Vice President Keeler reported out to the Committee on several capital projects that would require transfers either from the general fund, Measure E, or some other source. The first three projects are related to property development and, if approved, would come from the general fund.
Measure E related projects or other funding sources include:
Joe reported that the bid for the social science building modernization project came in under budget by $481,000 and the business and cosmetology modernization project came to completion under budget by $200,000. Joe suggested that the $700,000 savings could be transferred to another Measure E project at a later date.
Joe concluded that these are rough estimates on some upcoming projects. Trustee Dover asked for additional breakdown on the $400,000 estimated at the San Martin airport which Joe provided. Trustee Davenport requested a prioritized list and President Kinsella indicated that would be available.
|President Kinsella reported that current construction bids are coming in lower than anticipated and may make the development of the Fairview property more viable. Measure E campus renovations will be completed the summer of 2011. The remaining campus renovation projects require a 50% match from the state. The district has set aside their match with Measure E funding for the student center/administration project which totals $5,000,000. These funds would not be used for 10 or more years as we wait for the state's approval and funding. President Kinsella indicated that we will check that we are in compliance with the Measure E spending authorization with that long of a time line. Joe Keeler described the cash flow requirements once funds are drawn down from the Measure E bond.|
|9)||Adjourned||Meeting adjourned at 5:25 p.m. MS (Dover/Davenport)|
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