Minutes 06/13/2006

An executive session, public hearing for consideration of adoption of the budget for 2006-2007, truth in taxation hearing, and special meeting 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
Scott Crowley, President
Ed Contreras, Secretary
Linda Rosenthal, Member
Don Campbell, Member

ABSENT: Jerry Walker, Member

ADMINISTRATION
Rufus Glasper
Steve Helfgot
Debra Thompson
Maria Harper-Marinick
Jim Moore Anna Solley
Albert Crusoe
Darrel Huish
Pete Kushibab
Mary Kay Kickels
Patti Cardenas-Adame for Larry Christiansen
Bryan Tippett for Homero Lopez
Jolyne Ghanatabadi for Gene Giovannini
Linda Thor
Alberto Sanchez for Jean Ann Abel
Mark Mason for Maria Hesse
Kay Martens for Ken Atwater
Art DeCabooter

CALL TO ORDER
The regular meeting was called to order at 6:02 p.m.

EXECUTIVE SESSION
The executive session was called to order by President Crowley at 5:00 p.m.

PUBLIC HEARINGS – CONSIDERATION OF ADOPTION OF BUDGETS FOR 2006-2007 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 Crowley explained that the Maricopa County Community College District proposed to increase primary property taxes in fiscal year 2006-2007 on existing property. The proposed increase was two percent, equaling five million, eight hundred fifty-one thousand, nine hundred sixty-one dollars in additional property tax revenues ($5,851,961.00).

President Crowley 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.

No citizens came forward.

President Crowley asked if there were any comments from members of the Board.

There were no board member comments.

There being no comments, President Crowley concluded the truth in taxation hearing.

I.B Adoption of Budgets for 2006-2007

President Crowley introduced the next item on the agenda which was the public hearing concerning the adoption of the proposed budget of the Maricopa County Community College District for fiscal year 2006-2007. These hearings are required by law every year when the board presents its budget. The purpose of these hearings is to give any resident or taxpayer the opportunity to protest the inclusion of any item in the proposed budgets. President Crowley asked Vice Chancellor of Business Services, Debra Thompson, to come forward to explain, on behalf of the Governing Board, the proposed budgets.

Vice Chancellor Thompson requested that Associate Vice Chancellor Gaye Murphy come forward to present an overview of the proposed budget. Ms. Murphy presented a powerpoint presentation highlighting changes in the various components of the budget compared to the budget for the previous year. A total of $1,463.6M was being presented over the previous year’s total of $1,090.9M in the general fund, auxiliary fund, restricted fund, and capital fund. A copy of Ms. Murphy’s powerpoint presentation in included in this board minutes’ packet.

President Crowley afforded any resident or taxpayer the opportunity to address the Governing Board concerning the inclusion of any item in the proposed budgets. No residents or taxpayers came forward.

President Crowley asked if there were any comments from members of the Board.

There being no comments, President Crowley concluded the hearing for the adoption of the budget for 2006-2007.

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 2006-2007 by 2.00%, which equals $5,851,961.00 in additional property tax revenues.

MOTION NO. 9368

Board Member Linda Rosenthal moved to approve through roll call vote the levy to increase taxes on existing property in FY 2006-2007 by 2.00%, which equals $5,851,961.00 in additional property tax revenues. President Crowley called for the roll call vote: Ed Contreras – aye; Don Campbell – aye; Linda Rosenthal – aye; Scott Crowley – aye. (Jerry Walker – absent) Motion approved 4-0 (Mr. Walker – absent).

II.A.2 Quasi Endowment Transfers Related to the Self-Insurance Medical Reserve and Approval of Use for Medical Insurance Claims in Excess of Amounts Budgeted for Flex Credits

Approve the transfer of up to $5,000,000 from the Medical Insurance Claim account in FY2005-2006 in the General Fund to the Medical Insurance Claim Reserve in the Quasi Endowment Fund; and for FY 2006-07, transfer an additional $1,106,444 from the General Fund to Medical Insurance Claim Reserve in the Quasi Endowment Fund. These funds are being accumulated for use if needed, to cover the medical insurance claims beyond FY 2006-07 levels that are funded from flex benefits. It further is recommended that the Board approve the use of this total $6,106,444 as well as existing balances for medical insurance claims in excess of amount funded by budgeted flex benefits.

MOTION NO. 9369

Board Member Linda Rosenthal moved to approve the transfer of up to $5,000,000 from the Medical Insurance Claim account in FY2005-2006 in the General Fund to the Medical Insurance Claim Reserve in the Quasi Endowment Fund; and for FY 2006-07, transfer an additional $1,106,444 from the General Fund to Medical Insurance Claim Reserve in the Quasi Endowment Fund. These funds are being accumulated for use if needed, to cover the medical insurance claims beyond FY 2006-07 levels that are funded from flex benefits. It further is recommended that the Board approve the use of this total $6,106,444 as well as existing balances for medical insurance claims in excess of amount funded by budgeted flex benefits. Motion approved 4-0 (Jerry Walker – absent).

II.A.3 Proposed Fiscal Year 2006-2007 Maricopa Community College District Budget Adoption

Approve the expenditure of budgeted revenues and realized or designated fund balances within the total amount budgeted within each fund (Current Unrestricted, Auxiliary, Restricted, and Plant Funds). The proposed FY 2006-07 Budget total $1.5 billion as summarized below:

MOTION NO. 9370

Board Member Don Campbell moved to approve the expenditure of budgeted revenues and realized or designated fund balances within the total amount budgeted within each fund (Current Unrestricted, Auxiliary, Restricted, and Plant Funds). The proposed FY 2006-07 Budget totaled $1.5 billion as summarized above. Motion approved 4-0 (Mr. Walker absent).

II.A.4 Approval Of Settlement With Price Waterhouse Coopers, L.L.P

Approve a settlement in the National Century Financial Enterprises litigation with one of the defendants, Price Waterhouse Coopers, L.L.P. The total settlement will be allocated to multiple plaintiffs in the lawsuit and it is estimated that the District’s share will equal approximately $205,000.

MOTION NO. 9371
Board Member Linda Rosenthal moved to approve a settlement in the National Century Financial Enterprises litigation with one of the defendants, Price Waterhouse Coopers, L.L.P. The total settlement will be allocated to multiple plaintiffs in the lawsuit and it is estimated that the District’s share will equal approximately $205,000. Motion approved 4-0 (Mr. Walker absent).

NEXT BOARD MEETING
The next Governing Board Meetings will be a Regular Board Meeting on
June 27, 2006 at 6:30 p.m. at the District Office.

ADJOURNMENT
The meeting adjourned at 6:10 p.m.

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Ed Contreras
Governing Board Secretary