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CONTENTS
•  Measure E
Spring 2011

Annual Report
•  Budget Update
•  Board Goals

Mission
In an environment that
Report to the Community

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.

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 ac-
tivities at the state and national level.
7. Adjust instructional capacity,
staffing, and proficiency to meet cur-
rent and changing economic cycles.
8. Improve coaching strength for ath-
letic programs.
9. Hire an interim Education Founda-
tion 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 reas-
sure 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 equip-
ment 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 grow-
ing 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 Com-
munity College District. Upgrades have been made to campus infra-
structure, 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 Measure E Financials
.
Revenues and Expenditures
for year ended June 30, 2010
Letter from the Chair, Citizens’ Oversight Committee
Fund Balance June 30, 2009 11,256,652
It is a pleasure, on behalf of the Measure E Citizens’ Oversight Committee, to
Revenues
submit this Annual Report to the public. The Gavilan College administration
Interest income 100,247
continues to prepare regular Construction Updates. These can be found on the
web site: www.gavilan.edu/bond. Expenditures
Salaries and benefits* 61,828
The Citizens’ Oversight Committee continues to receive updates on all expendi-
Other operating expenses
tures of Measure E funds and reviews and approves audits prior to their forward-
and services: 5,008,876
ing to the Board of Trustees. To date, all of the audits have demonstrated that
Capital outlay: 279,652
funds have been used for the purposes for which they were intended. Budget
Total Expenditures $ 5,350,356
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: Difference $ (5,250,109)
agendas and minutes are posted on the web site. Your input on any aspect of Fund Balance June 30, 2010 6,006,543
Measure E is encouraged, and may be sent to the Oversight Committee by way
*Salaries and benefits are for non-administrative
of the President’s Office, or by phone at (408) 848-4711. employees directly involved in the implementation of
Measure E.
David Boll, Chair

General Obligation Bonds

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 inter-
Balance Sheet June 30, 2010
est 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 Assets
the Bond. Cash and
cash equivalent 6,540,380
The following is a schedule of future payments for the 2004 Series A General Obligation Bonds: Accounts receivable 15,185
Year Ending June 30 Principal Interest Total
2011 265,000 1,306,210 1,571,210 Due from other funds 118,665
2012 335,000 1,295,457 1,630,457 Total Assets 6,674,230
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 Liabilities and Fund Balance
2016-2020 4,565,000 5,679,342 10,244,342
2021-2025 8,315,000 4,046,941 12,361,941 Accounts payable $ 661,779
2026-2030 10,530,000 1,228,425 11,758,425 Due to other funds 5,908
$ 25,515,000 $ 17,340,602 $ 42,855,602 Total Liabilities 667,687
On December 12, 2007, the District issued $50,000,000 of General Obligation Bonds 2004 Series C. Restricted Fund Balance 6,006,543
The Bonds mature through 2032 and bear interest at rates ranging from 4.00% to 5.00%. Net bond Total Liabilities
premium of $79,843 (net of accumulated amortization) were capitalized and will be amortized over
the term of the Bond. and Fund Balance $ 6,674,230

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 Independent Auditor’s Report
2015 470,000 2,246,444 2,716,444
2016-2020 3,895,000 10,871,820 14,766,820 An independent financial audit is
2021-2025 7,185,000 9,718,970 16,903,970 conducted annually. The audit was
2026-2030 14,920,000 7,620,945 22,540,945
2031-2035 21,470,000 2,094,513 23,564,513
completed by Perry-Smith of Sacramento
$ 49,020,000 $ 41,660,867 $ 90,680,867 and a report issued in December, 2010.
The audit concluded that financial
Changes in Long-Term Liabilities statements “present fairly, in all material
A schedule of changes in long-term liabilities for the year ended June 30, 2010 is as follows:
respects, the financial position of the
Balance Balance Amounts Due General Obligation Bonds of the District at
July 1, 2009 Additions Deductions June 30, 2010 Within One Year June 30, 2010, and the changes in financial
$74,835,000 300,000 74,535,000 435,000 position for the year then ended in
574,744 6,121 580,865 580,865
$75,409,744 6,121 300,000 75,115,865 1,015,865
conformity with accounting principles
generally accepted in the United States of
America.”
 SAVE THE DATE: Graduation, May 27, 2011
Measure E
Citizens Oversight Committee
David Boll, Chair
John Hansell, Vice Chair
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
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
Joe Keeler, CPA
Status of Measure E Projects VP of Administrative Services
Sherrean Carr
Dean of Career Technical Ed.
Completed Fran Lozano
ü ü Tennis court repairs Dean of Liberal Arts and Sciences
ü ü Boiler replacement Ron Hannon
ü ü Infrastructure replacement Dean of Kinesiology & Athletics
ü ü Computer replacement
Fran Lopez
ü ü Enterprise Resource System
Associate Dean, Disability
ü ü Interim housing Resource Center
ü ü Parking lot expansion / resurfacing
ü ü Renovations of Mathematics, Physical Rachel Perez
Associate Dean, Community
Science, Life Sciences, Art, Music,
Development and Grants Mgmt.
Humanities, Security and Facilities, and
Multipurpose buildings. Anne Ratto
Associate Dean of Extended
ü ü Land purchase - Coyote Valley
Opportunity Programs and Svcs.
ü ü Land purchase - San Benito County
ü ü Cosmetology / Business Renovation
ü ü Roof repair for gymnasium and science
Board of Trustees
buildings Laura Perry, Esq., President
ü ü Campus and building signage Kent Child, Vice President
Mike Davenport
In progress Walt Glines
Tony Ruiz
qq Social Science building
Tom Breen, Esq.
Mark Dover
Pending state matching funds Student Trustee: Aaron Keller
tt Gymnasium renovation
tt Library / TV Studio renovation The Gavilan Joint Community
tt New Student Services and College District is committed to
equal opportunity in educational
Administration building programs, employment, and all
access to institutional programs
and activities.