JUNE 10, 2003
An executive session, a public hearing regarding consideration of adoption of the Maricopa County Community College District Governing budget for 2003-04, a truth in taxation hearing regarding notice of tax increase, and a special meeting of the Maricopa County Community College District Governing Board was scheduled to be held at 5:00 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.
Ed Contreras, President
Linda B. Rosenthal, Secretary
Nancy Stein, Member
Don Campbell, Member
Gene Eastin, Member
Rick DeGraw for Steve Helfgot
Carol Scarafiotti for Linda Thor
John Neibling for Art DeCabooter
CALL TO ORDER
Governing Board President Ed Contreras called the meeting to order at 5:00 p.m.
The Governing Board met in executive session, notice having been previously given.
The meeting recessed at 5:45 p.m.
The meeting reconvened at 6:04 p.m.
PUBLIC HEARING REGARDING CONSIDERATION OF ADOPTION OF BUDGET FOR 2003-04 AND TRUTH IN TAXATION HEARING
I.A. Truth in Taxation - Notice to Increase Tax
The first item on the agenda was a truth in taxation hearing, as required under state law. In accordance with relevant statutory and constitutional provisions, President Contreras explained that the Maricopa County Community College District proposed to increase primary property taxes in fiscal year 2003-2004 on existing property. The proposed increase was two percent, equaling four million, six hundred ninety-eight thousand, nine hundred ninety-eight dollars in additional property tax revenues ($4,698,998.00).
President Contreras afforded any resident or taxpayer the opportunity to address the Governing Board concerning the District's proposed action to increase primary property taxes on existing property.
One student from Glendale Community College came forward to ask if this proposed tax increase would affect the tuition increase approved earlier in the year. It was responded that there would be no effect.
President Contreras asked if there were any comments from members of the Board.
Mrs. Nancy Stein requested an opportunity to make the following statement: "I cannot support this tax increase. In keeping with the spirit of tax relief being granted to us all by President Bush and Congress, I think we should follow suit and refrain from increasing our constituents' property tax bills. I am well aware the State Legislature is like to reduce our growth funds or receive none at all. However, we have reduced many of our expenditures last and I believe we can do it again."
Mrs. Linda Rosenthal voiced that no one likes to increase taxes. If we did not have that tax base for our tuition, it would be even higher. Mrs. Rosenthal indicated that she firmly believes that citizens know they pay these taxes and at the appropriate time will support the increase.
Dr. Don Campbell indicated that he agreed with Mrs. Rosenthal. He stated that he didn't like to pay taxes, however he just purchased another piece of property fully realizing that he would have to be paying higher taxes.
There being no further comments, President Contreras concluded the truth in taxation hearing.I.B Adoption of Budget for 2003-2004
President Contreras introduced the next item on the agenda which was the hearing concerning the adoption of the proposed budget of the Maricopa County Community College District for fiscal year 2003-2004. The hearing is required by law every year when the board presents its budget. . 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. President Contreras asked Acting Vice Chancellor of Business Services, Debra Thompson, to come forward to explain, on behalf of the Governing Board, the proposed budget.
Ms. Thompson presented the proposed budget for Maricopa County Community College District for Fiscal Year 2003-2004 totaling $725 million. Debbie Thompson reviewed the pertinent information on a slide presentation and highlighted the following major initiatives:
- Educational opportunities and student services to 250,000 students in credit classes
(approximately 67,500 full-time student equivalents) and students in non-credit classes;
- Capital development for future needs: 1994 G.O. program and revenue bond program.
- PVCC Performing Arts Center - revenue bonds for construction
- Life without the Bond funding - year 2 of 3
Major Revenue Assumptions included:
- Primary property taxes to maximize existing property and new property - $.9410 per $200 assessed valuation
- Secondary property taxes for G.O. bond debt service payments - $.1375 per $100 assessed valuation
- Tuition: rate increase of $5 plus enrollment growth
- State aid for allocation at Governor's January 2003 proposal (growth to FY03 base and a cut equivalent to dual enrollment FTSE)
- Reallocations of $4.5 million college and district office budget reductions
- Depending on state aid appropriation, a potential best case of $36.6 million and a worst case of $30.9 million.
President Contreras afforded any resident or taxpayer the opportunity to address the Governing Board concerning the inclusion of any item in the proposed budget. No residents or taxpayers came forward.
President Contreras asked if there were any comments from members of the Board. There were no Board Member comments.
SPECIAL MEETING - ACTION
II.A.1. Truth in Taxation - Notice to Increase Tax Roll Call Vote - Levy to Increase Taxes
Approve the Maricopa Community College District's proposed increase in primary property taxes on existing property in FY 2003-2004 by 2.00%, which equals $4,698,998.00 in additional property tax revenues.
MOTION NO. 9169
Board Member Linda Rosenthal moved to approve through roll call vote the levy to increase taxes on existing property in FY 2003-2004 by 2.00%, which equals $4,698,998.00 in additional property tax revenues. Board Member Ed Contreras called for the roll call vote: Gene Eastin - aye; Don Campbell - aye; Linda Rosenthal - aye; Nancy Stein - nay ; Ed Contreras - aye. Motion approved 4-1 (Stein opposed).
II.A.2. Transfer of Cigna Medical Premium Reserve from Quasi-Endowment Fund
Approve the transfer of up to $850,000 from the Cigna Reserve account in the Quasi-Endowment fund to partially cover increased medical premium costs in Fiscal Year 2003-2004.
MOTION NO. 9170
Board Member Nancy Stein moved to approve the transfer of up to $850,000 from the Cigna Reserve account in the Quasi-Endowment fund to partially cover increased medical premium costs in Fiscal Year 2003-2004.
Mrs. Rosenthal and Dr. Campbell both commented that they were glad there were sufficient funds remaining to transfer for this benefit
Motion approved 5-0.
II.A.3. Proposed FY 2003-2004 Maricopa Community College District Budget Adoption
Approve the proposed Fiscal Year 2003-2004 Budget totaling $724,836,128, representing an increase of $35,329,723 over 2002-2003, 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. 9171
President Contreras asked Ms. Thompson if she had any additional information for the Board and she responded that the proposed budged was consistent with previous years and supported growing demand for student services and employee increases.
Board Member Don Campbell moved to approve the proposed Fiscal Year 2003-2004 Budget totaling $724,836,128, representing an increase of $35,329,723 over 2002-2003, 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).
Prior to approval of the budget, Mrs. Stein stated that she wished to go on record regarding her opposition and non-support of the proposed budget. Dr. Campbell stated that he was in full support of the budget as proposed.
Motion approved 4-1 (Mrs. Stein voted non-approval).
II.B. Timetable and Resolution Requesting Issuance of Revenue Bonds
It was recommended that the Governing Board approve the proposed Timetable and Resolution to Authorize, Issue and Sell Revenue Bonds in an amount not to exceed $7,800,000, inclusive of $7,600,000 par amount to develop a Performing Arts Center at Paradise Valley Community College and up to $200,000 par amount for costs of issuance such as rating agency fees, printing of the official statement and legal counsel's fees.
MOTION NO. 9172
Board Member Linda Rosenthal moved to approve the proposed Timetable and Resolution to Authorize, Issue and Sell Revenue Bonds in an amount not to exceed $7,800,000, inclusive of $7,600,000 par amount to develop a Performing Arts Center at Paradise Valley Community College and up to $200,000 par amount for costs of issuance such as rating agency fees, printing of the official statement and legal counsel's fees.
Mr. Eastin questioned how much more expensive the Performing Arts Center for Paradise Valley Community College would be than for the other colleges. It was responded that the last one was $6.l7 million and Paradise Valley's would be $8.5 million and was on par in meeting the needs of the community.
Mrs. Rosenthal questioned the reference to the Joint Committee on Capital Review having to conduct a review of this resolution in the place of the State Board of Directors for Community College. Attorney for the Bond Council Gust Rosenfeld, Keith Hoskins, responded that no problem was anticipated as a result of this review of the revenue bonds.
Motion approved 5-0.
III. ADJOURNMENT OF PUBLIC HEARING AND SPECIAL MEETING AND ANNOUNCEMENT OF NEXT BOARD MEETING
President Contreras announced that the next Governing Board Meeting would be a listening session taking place on June 12, 2003, at 6:30 p.m. at Estrella Mountain Community College.
The meeting adjourned at 6:34 p.m.
Linda B. Rosenthal
Governing Board Secretary