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CONTENTS •  Measure E Annual Report •  Budget Update •  Board Goals

Spring 2011

RepoRt to the Community

In an environment that nurtures creativity, stimulates curiosity, and emphasizes student learning, Gavilan College serves its community by providing high quality educational and support services that prepare students for transfer, technical and public service careers, lifelong learning and participation in a diverse global society.

Mission

UPCOMING EVENTS
• April 29 & 30 and May 6 & 7: A Funny Thing Happened on the Way to the Forum • May 27: Graduation

Board of Trustees Goals - 2011
1. Prepare for the next accreditation cycle. 2.  Maintain effective board dynamics,  interaction and effectiveness.  3. Continue activities necessary to  establish an educational center in San  Benito County. 4. Maintain district financial viability,  flexibility, and sustainability. 5. Revise the Board Self Evaluation  Questionnaire and process for self evaluation to reflect awareness of the  three different communities that the  Board represents. 6. Participate in community college activities at the state and national level. 7. Adjust instructional capacity,  staffing, and proficiency to meet current and changing economic cycles. 8. Improve coaching strength for athletic programs.  9. Hire an interim Education Foundation Director. 10. Explore additional options for using the golf course property as a financial  resource to the district.

Message from the College President
An update on the budget If you have been following the news lately you may  have wondered how California’s financial  status will impact Gavilan College. I want to reassure you that Gavilan is very well positioned and has  the financial strength to ride this out. Long ago the  Gavilan College Board of Trustees established  policies that gave them control over the finances of  the college. Here are some of the steps the Board has taken to prepare for the  economic downturn: • We established a $6.2 million irrevocable trust fund to cover the costs  of retired employees who are receiving medical benefits. We need $5.2  million to cover the currently retired employees’ entitlements. Some of  the difference is being allowed to grow as a long-term investment. Under  the worst of conditions we can access this fund.  • When the college received an extraordinary increase in base on-going  revenue in 2007-08 we hired more full-time permanent faculty and  professional support staff than was required by the state. As employees  retired over the past two years we did not fill those positions, allowing  us to save money and use it to offset the reduction in revenues that we  were receiving. The college is still six positions higher than the minimum  required.  • Measure E facility improvement bonds were used to renovate buildings  with new energy saving equipment resulting in lower costs in repairs,  maintenance, and utilities. Debt issued for building repairs and equipment before Measure E was approved was retired through Measure E. • Although enrollments rose over the past two years, the number of class  offerings was restricted to the level that would be funded by the state.  Fewer classes with more students generated substantial savings.  • The Board requires that the administration submit a balanced budget  for approval each year. We therefore reduced expenditures each year in  which revenues were declining. Making small reductions in expenditures  each year prevented devastating reductions now.  Gavilan College is financially sound. I am convinced the economy is growing and has been for the past six months. The next challenge we will have  is to grow enrollment as more and more students return to the work  force. We will continue the important work we have begun to focus on  student success, increase completion of degrees and certificates, and help  students to transfer to universities or gain employment.

About Measure E
On March 2, 2004, district voters approved Measure E, a facilities  improvement bond in the amount of $108 million, to upgrade and  expand the facilities for higher education in the Gavilan Joint Community College District. Upgrades have been made to campus infrastructure, classrooms, instructional technology, and campus safety.  Land has been acquired for future campuses in Coyote Valley and  San Benito County.

Measure E Report 2009 - 2010
Letter from the Chair, Citizens’ Oversight Committee
It is a pleasure, on behalf of the Measure E Citizens’ Oversight Committee, to  submit this Annual Report to the public. The Gavilan College administration  continues to prepare regular Construction Updates. These can be found on the  web site: www.gavilan.edu/bond. The Citizens’ Oversight Committee continues to receive updates on all expenditures of Measure E funds and reviews and approves audits prior to their forwarding to the Board of Trustees. To date, all of the audits have demonstrated that  funds have been used for the purposes for which they were intended. Budget  and planning projections show that the college is committed to completing all  of the projects planned. You are always welcome to attend any of our meetings:  agendas and minutes are posted on the web site. Your input on any aspect of  Measure E is encouraged, and may be sent to the Oversight Committee by way  of the President’s Office, or by phone at (408) 848-4711.

Measure E Financials
.

Revenues and Expenditures
for year ended June 30, 2010

Fund Balance June 30, 2009       11,256,652 Revenues Interest income                100,247

Expenditures Salaries and benefits*     61,828 Other operating expenses      and services:            5,008,876 Capital outlay:                 279,652 Total Expenditures  $         5,350,356 Difference    $       (5,250,109) 6,006,543 Fund Balance June 30, 2010

David Boll, Chair
In June 2004, the District issued $29,170,000 of General Obligation Bonds 2004 Series A and  $830,000 General Obligation Bonds 2004 Series B. The Bonds mature through 2028 and bear interest at rates ranging from 2.00% to 5.38%. They matured on August 1, 2006. Net bond premium of  $149,188 (net of accumulated amortization) were capitalized and are amortized over the term of  the Bond. The following is a schedule of future payments for the 2004 Series A General Obligation Bonds: Year Ending June 30   Principal  Interest  Total 2011  265,000  1,306,210   1,571,210 2012  335,000  1,295,457   1,630,457 2013  415,000  1,280,876   1,695,876 2014  500,000  1,262,575   1,762,575 2015  590,000  1,240,776   1,830,776 2016-2020   4,565,000  5,679,342   10,244,342 2021-2025   8,315,000  4,046,941   12,361,941 2026-2030   10,530,000  1,228,425  11,758,425   $ 25,515,000  $ 17,340,602  $ 42,855,602 On December 12, 2007, the District issued $50,000,000 of General Obligation Bonds 2004 Series C.  The Bonds mature through 2032 and bear interest at rates ranging from 4.00% to 5.00%. Net bond  premium of $79,843 (net of accumulated amortization) were capitalized and will be amortized over  the term of the Bond. The following is a schedule of the future payments for the 2004 Series C General Obligation Bonds: Year Ending June 30  Principal  Interest   Total 2011   170,000  2,289,644  2,459,644 2012   225,000  2,282,843  2,507,843 2013  300,000  2,273,844  2,573,844 2014   385,000  2,261,844  2,646,844 2015   470,000  2,246,444   2,716,444 2016-2020  3,895,000  10,871,820  14,766,820  2021-2025  7,185,000  9,718,970   16,903,970 2026-2030   14,920,000  7,620,945   22,540,945 2031-2035   21,470,000  2,094,513  23,564,513 $ 49,020,000   $ 41,660,867  $ 90,680,867

*Salaries and benefits are for non-administrative  employees directly involved in the implementation of  Measure E.

General Obligation Bonds

Balance Sheet June 30, 2010
Assets Cash and     cash equivalent                   6,540,380 Accounts receivable                      15,185 Due from other funds                 118,665 Total Assets                              6,674,230 Liabilities and Fund Balance Accounts payable          $             661,779 Due to other funds                         5,908 Total Liabilities                            667,687 Restricted Fund Balance        6,006,543 Total Liabilities      and Fund Balance             $  6,674,230

Independent Auditor’s Report
An independent financial audit is  conducted annually. The audit was  completed by Perry-Smith of Sacramento  and a report issued in December, 2010.  The audit concluded that  financial  statements “present fairly, in all material  respects, the financial position of the  General Obligation Bonds of the District at  June 30, 2010, and the changes in financial  position for the year then ended in conformity with accounting principles  generally accepted in the United States of America.”

Changes in Long-Term Liabilities A schedule of changes in long-term liabilities for the year ended June 30, 2010 is as follows:
Balance   July 1, 2009   $74,835,000   574,744  $75,409,744      Additions       6,121  6,121      Deductions  300,000        300,000    Balance     June 30, 2010  74,535,000  580,865    75,115,865   Amounts Due Within One Year 435,000    580,865 1,015,865

SAVE THE DATE: Graduation, May 27, 2011
Gavilan College 5055 Santa Teresa  Blvd. Gilroy, CA 95020 (408) 848-4800 www.gavilan.edu

adminisTraTion
Steven M. Kinsella, DBA., CPA Superintendent/President Kathleen Rose, EdD Execuutive Vice President John Pruitt VP of Student Services

Measure E Citizens Oversight Committee
David Boll, Chair John Hansell, Vice Chair

Status of Measure E Projects
ü  Tennis court repairs ü  Boiler replacement ü  Infrastructure replacement ü  Computer replacement ü  Enterprise Resource System ü  Interim housing ü  Parking lot expansion / resurfacing ü  Renovations of Mathematics, Physical    Science, Life Sciences, Art, Music,     Humanities, Security and Facilities, and       Multipurpose buildings. ü  Land purchase - Coyote Valley ü  Land purchase - San Benito County ü  Cosmetology / Business Renovation ü  Roof repair for gymnasium and science      buildings ü  Campus and building signage

Joe Keeler, CPA VP of Administrative Services Sherrean Carr Dean of Career Technical Ed. Fran Lozano Dean of Liberal Arts and Sciences Ron Hannon Dean of Kinesiology & Athletics Fran Lopez Associate Dean, Disability  Resource Center Rachel Perez Associate Dean, Community  Development and Grants Mgmt. Anne Ratto Associate Dean of Extended Opportunity Programs and Svcs.

Completed

At-Large Jack Bachofer Irma Rodriguez Gene Sakahara John Sitton
Senior Citizen’s Organization John Hansell

Business Representative David Boll
Student Representative VACANT District Support Organization Sandy Habr Tax Payer’s Organization VACANT
Volunteers are needed! If you would like to serve on the  Citizens’ Oversight Committee,  you may obtain an application  online at www.gavilan.edu/bond  or  through the Office of the  President: 408.848.4711

In progress

q Social Science building

t t t  

Pending state matching funds
Gymnasium renovation Library / TV Studio renovation  New Student Services  and  Administration building 

Laura Perry, Esq., President Kent Child, Vice President Mike Davenport  Walt Glines Tony Ruiz Tom Breen, Esq. Mark Dover Student Trustee: Aaron Keller
The Gavilan Joint Community  College District is committed to  equal opportunity in educational  programs, employment, and all  access to institutional programs  and activities. 

Board

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