1. Home
  2. Board Operations
  3. Minutes
  4. Minutes 06/04/2002

Minutes 06/04/2002



GOVERNING BOARD
JUNE 4, 2002
MINUTES


An executive session, a public hearing regarding consideration of adoption of the Maricopa County Community College District Governing budget and the GateWay Community High School budget for 2001-02, a truth in taxation hearing regarding notice of tax increase, a special meeting, and a strategic conversation of the Maricopa County Community College District Governing Board was scheduled to be held at 5:30 p.m. at the District Support Services Center, 2411 West 14th Street, Tempe, Arizona, pursuant to A.R.S. §38-431.02, notice having been duly given.

PRESENT

GOVERNING BOARD
Nancy Stein, President
Ed Contreras, Secretary
Linda B. Rosenthal, Member
Don Campbell, Member
Gene Eastin, Member

ADMINISTRATION
Fred Gaskin
Ron Bleed
Anna Solley
Rufus Glasper
Pete Kushibab
Larry Christiansen
Ken Atwater
Stan Grossman
Bob Bendotti for Gina Kranitz
Linda Thor
Phil Randolph
John Neibling for Art DeCabooter
Corina Gardea
Homero Lopez
Gene Giovannini
Arnette Ward
Raul Cardenas, Absent

ABSENT — STATE BOARD
Nick Balich

CALL TO ORDER

Governing Board President Nancy Stein called the meeting to order at 5:30 p.m.

EXECUTIVE SESSION

The Governing Board met in executive session, notice having been previously given.

The meeting recessed at 6:00 p.m.
The meeting reconvened at 6:08 p.m.

Students from Dr. Quentin Bogart's ASU HED538 Community College Class were present.

PUBLIC HEARING REGARDING CONSIDERATIN OF ADOPTION OF BUDGET FOR 2002-03 AND TRUTH IN TAXATION HEARING

Adoption of Budgets for 2002-2003

I.A.1. Maricopa County Community College District

The first item on the agenda was a public hearing concerning the proposed 2002-2003 budget. The hearing is required by law every year when the board presents its budget. This also serves as an opportunity to address the proposed 2002-2003 budget for GateWay Community High School. The purpose of the hearing is to give any resident or taxpayer the opportunity to protest the inclusion of any item in the proposed budget.

Dr. Rufus Glasper presented the proposed budget for Maricopa County Community College District for Fiscal Year 2002-2003. Debbie Thompson reviewed the pertinent information on a slide presentation and highlighted the following major initiatives:

  • Educational opportunities and student services to almost 62,000 full-time student equivalents;
  • Teacher Education and Faculty in Progress;
  • Potential new charter high school;
  • Implementation of a new student information system;
  • Continued implementation of links between district-wide strategic planing and budgeting;
  • Continued planning for future capital development.

Governing Board Member Don Campbell requested clarification pertaining to the key revenue assumptions pertaining to state aid. Ms. Thompson responded that state aid represented 13% of the General Fund budget and 6% of the Plant Fund budget, however, on a combined basis state aid would be 10%. Governing Board Member Linda Rosenthal commented that because state aid has been reduced, the Maricopa Community College District has been forced to raise tuition and increase taxes. A rise in cost should not be unexpected because of the decreased funding.

President Stein presented the opportunity for any resident or taxpayer to come forward to address the Board concerning the Maricopa County Community College District's proposed budget, allowing for five minutes per person. One citizen, John Ferik, came forward. Mr. Ferik came forward to express his disfavor with the proposed increase in taxes and inquired how many about how many people would be impacted by this increase. Dr. Glasper responded that it would be all property owners in Maricopa County. Mr. Ferik commented on the lack of concerned citizens in attendance and also the amount of monetary impact on homeowners. Governing Board Member Gene Eastin responded that attendance was normally minimal and typical. Mrs. Rosenthal commented that most citizens appreciate the services provided by the Arizona school systems. Dr. Campbell commented that most taxes do indeed go towards paying educational services for elementary, middle and community colleges. In his opinion, the United States has one of the finest school systems in the world and most citizens are willing to provide funding for this service.

I.A.2. GateWay Community High School

President Stein presented the opportunity for any resident or taxpayer to come forward to address the Board concerning the GateWay Community High School proposed budget, allowing for five minutes per person. No citizens came forward.

I.B Truth in Taxation - Notice to Increase Tax

In accordance with relevant statutory and constitutional provisions, President Stein explained that the Maricopa Community College District proposed increasing primary property taxes in fiscal year 2002-2003 on existing property. The proposed increase is two per cent, which equals four million, three hundred forty-four thousand, one hundred ninety-six dollars in additional property tax revenues. She requested that Dr. Rufus Glasper make any additional comments regarding this proposal.

Dr. Glasper commented that in the 1996 legislative session, a Truth in Taxation statute was passed which required political subdivisions to publish notice of and to hold public hearings on proposed tax increases on existing property and to also increase public awareness of such proposed increases. In compliance with statute, a Truth in Taxation notice was published in the Arizona Republic on May 20 and May 28, 2002 and press releases were issued on May 16, 2002. The proposed tax increases and growth in other revenues provide funding to meet a wide variety of needs, allowing the Maricopa Community College District to better serve the community. Priority needs include additional faculty, additional funds to support increased enrollment, allocations for technology enhance and inflationary cost increases, master planning activities for facilities, and budget to operate new facilities being constructed under MCCCD's $386 million capital development program.

SPECIAL MEETING - ACTION

II.A.1. Truth in Taxation - Notice to Increase Tax - Roll Call Vote

Approve the Maricopa Community College District's proposed increase in primary property taxes on existing property in FY 2002-2003 by 2.00%, which equals $4,344,196 in additional property tax revenues.

MOTION NO. 9110

Board Member Don Campbell moved to approve through roll call vote the levy to increase taxes on existing property in FY 2002-2003 by 2.00%, which equals $4,344,196 in additional property tax revenues. Board Member Ed Contreras inquired what would happen if the proposal to increase taxes were not approved. Dr. Glasper responded that the budget staff would have to reduce the expense budget or services by $4.3 million. President Nancy Stein called for the roll call vote: Linda Rosenthal - aye; Don Campbell - aye; Gene Eastin - aye; Ed Contreras - aye; Nancy Stein - nay. Motion approved 4-1.

II.A.2. Transfer of Cigna Medical Premium Reserve from Quasi-Endowment Fund

Approve the transfer of up to $650,000 from the Cigna Reserve account in the Quasi-Endowment fund to partially cover increased medical premium costs in Fiscal Year 2002-2003.

MOTION NO. 9111

Board Member Don Campbell moved to approve the transfer of up to $650,000 from the Cigna Reserve account in the Quasi-Endowment fund to partially cover increased medical premium costs in Fiscal Year 2002-2003. Motion approved 5-0.

II.A.3. Proposed FY 2002-2003 Maricopa Community College District Budget Adoption

Approve the proposed Fiscal Year 2002-2003 Budget totaling $689,506,405, representing an increase of $16,893,198 over 2001-2002, and authorize the expenditure of budgeted revenues, realized or designated fund balances, within the total amount budgeted for each fund (Current, Unrestricted, Auxiliary, Restricted, and Plant Funds).

MOTION NO. 9112

Board Member Linda Rosenthal moved to approve the proposed Fiscal Year 2002-2003 Budget totaling $689,506,405, representing an increase of $16,893,198 over 2001-2002, and authorize the expenditure of budgeted revenues, realized or designated fund balances, within the total amount budgeted for each fund (Current, Unrestricted, Auxiliary, Restricted, and Plant Funds). Motion approved 4-1 (Mrs. Stein voted non-approval).

II.B.1. Proposed FY 2002-2003 GateWay Community High School Budget

Approve the proposed Fiscal Year 2002-2003 Budget in the amount of $1,362,159.00 based on the projected enrollment FTSE of 240 students and estimated Proposition 301 funds in the amount of $56,880.00.

MOTION NO. 9113

Board Member Ed Contreras requested information pertaining to efforts to recruit additional student and student retention. GateWay Community College President Giovaninni responded that he would provide this information.

Board Member Linda Rosenthal moved to approve the proposed Fiscal Year 2002-2003 Budget in the amount of $1,362,159.00 based on the projected enrollment FTSE of 240 students and estimated Proposition 301 funds in the amount of $56,880.00. Motion approved 5-0.

II.B.2. Consideration of Maricopa Community College District Role in Statewide Bio-Science and Bio-Medicine Initiative

Approve the allocation of $1 million to support the development of the Arizona Bioscience and Biomedicine Institutes (ABBI). ABBI is being founded to establish a world class genomics, biosciences and biotechnology research institute that can efficiently translate information from the human genome into medical applications to improve human health.

MOTION NO. 9114

Board Member Ed Contreras inquired if these funds would be plant funds and would we own the facilities. Dr. Glasper responded that these would be plant funds and that because of a series of benefits the Maricopa College could use capital funds for this purpose. President Stein inquired about what would happen if Proposition 301 funds were not realized, would we remain liable. Dr. Glasper responded that we would not be liable.

Board Member Linda Rosenthal moved to approve the allocation of $1 million to support the development of the Arizona Bioscience and Biomedicine Institutes (ABBI). ABBI is being founded to establish a world class genomics, biosciences and biotechnology research institute that can efficiently translate information from the human genome into medical applications to improve human health, contingent upon the change in responsibility of the resolution of the fiscal and legal issues to the satisfaction of the Chancellor and not the Executive Vice Chancellor for Human Resources and Administration.

II.C.1. Timetable For and Resolution Ordering the Sale of General Obligation Refunding Bonds

Approve the resolution providing the issuance of General Obligation Refunding Bonds in the amount of not to exceed $51,840,000 delegating the authority to approve certain matters with respect to the bonds and the bonds being refunded; providing for the annual levy of a tax for the payment of the bonds; authorizing the appointment of a registrar, transfer agent and paying agent and a depository trustee; approving the form of certain documents and authorizing completion, execution and delivery thereof; delegating the authority to approve and deem final a form of official statement; and ratifying all actions taken or to be taken to further this resolution.

MOTION NO. 9115

Board Member Linda Rosenthal moved to approve the resolution providing the issuance of General Obligation Refunding Bonds in the amount of not to exceed $51,840,000 delegating the authority to approve certain matters with respect to the bonds and the bonds being refunded; providing for the annual levy of a tax for the payment of the bonds; authorizing the appointment of a registrar, transfer agent and paying agent and a depository trustee; approving the form of certain documents and authorizing completion, execution and delivery thereof; delegating the authority to approve and deem final a form of official statement; and ratifying all actions taken or to be taken to further this resolution. Motion approved 5-0.

ADJOURNMENT OF PUBLIC HEARING AND SPECIAL MEETING AND ANNOUNCEMENT OF NEXT BOARD MEETING

President Stein announced that the next Governing Board Meeting would take place on June 25, 2002, at 6:30 p.m. at the District Office located at 2411 West 14th Street. She adjourned the public hearing and special meeting AT 6:55 p.m. and announced that the meeting would be moving to the first floor employment lounge for continuation with the Strategic Conversation titled "Strategic and Capital Planning - Developing the Components of the 2004 Capital Program."

STRATEGIC CONVERSATION - "Strategic and Capital Planning - Developing the Components of the 2004 Capital Program."

Executive Vice Chancellor Rufus Glasper introduced the strategic conversation by commenting that in the past number of years a lot of time has been spent on strategic planning and the advisory council has been moving on an aggressive timetable. He commented that dollars and items need to be prioritized and that decisions must be made on a college level, district level, and then Governing Board and Chancellor levels. Input in critical and master planning efforts need to lead each campus to their desired goals.

Facilities Planning Director Lionel Diaz remarked that the during the last two years the strategic planning process has been in place to develop and refine strategic initiatives for the future. A monetary target needs to be in place by Fall 2002 for the proposed 2004 Bond. This information will then be compiled into a list of capital needs for the next decade. Given that the total value of capital needs will exceed this realistic total maximum amount, establishing the components of the 2004 capital plan and the amounts allocated to each college will be a very difficult process. In order to facilitate this allocation process, Mr. Diaz then turned the strategic conversation over to Arlen Solochek of the Facilities Planning and Development Department for exploration of issues that need to be addressed on where the colleges want to go in the next ten years.

Mr. Solochek commented that the planning process consists of an interchange between college strategic plans and district strategic plan. Due to the needs exceeding probable funding through the 2004 Bond, there is a need to prioritize. The evening strategic conversation will consist of narrowing choices from many competing ideas and issues in order to submit to CEC and the Governing Board.

Strategic conversation participants were asked to vote on six initiatives in seven categories they would like to see moved forward and also vote on two initiatives they would not favor. The five categories for needs and uses of funds are listed as follows:

  1. Capacity issues (both at existing sites and the need for expansion to new sites).
  2. New initiatives, programs or needs.
  3. Program or facility equity
  4. Aged/physical condition or obsolescence of facilities.
  5. Efficient, effective use of current facilities and assets.
  6. Geographic, political or fair balance issues.
  7. Operating funds flexibility.

(Tallies on voted initiatives are attached.)

ADJOURNMENT

Meeting concluded at 8:24 p.m.

———————————
Ed Contreras
Governing Board Secretary