SPECIAL MEETING
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE
September 15, 2009
Minutes
The Board of Trustees of Houston Community College held a Special Meeting on
Tuesday, September 15, 2009 at the HCC Administration Building, 3100 Main, 2nd
Floor, Seminar Room A, Houston, Texas.
Board of Trustees Present:
Diane Olmos Guzman, Secretary
Bruce A. Austin
Yolanda Navarro Flores
Richard Schechter
Mills Worsham
Administration Present:
Art Tyler, Deputy Chancellor/COO
Renee Byas, General Counsel
William Carter, Vice Chancellor, Information Technology
Cheryl Sterling, Interim Vice Chancellor, Student Services
Margaret Ford Fisher, President, Northeast
Fena Garza, President, Southwest College
Remmele Young, Executive Director, Government Relations
Others Present:
Kim James, Counsel, Bracewell & Giuliani
Bennie Ables, President, Faculty Senate
Other administrators, citizens, and representatives of the news media
CALL TO ORDER
Mrs. Guzman called the meeting to order at 12:28 p.m. and declared the Board
convened to consider matters pertaining to Houston Community College as listed on
the duly posted Meeting Notice.
Motion – Mrs. Flores moved and Mr. Worsham seconded.
Dr. Tyler provided a presentation on the development of the proposed tax rate.
Mr. Austin noted that the Chief Financial Officer (CFO) needs to be a Certified Public
Accountant (CPA). Dr. Tyler apprised that the Ron Defalco, the CFO, is a CPA. Mr.
Defalco noted that the numbers provided are via a template from the Tax Assessor’s
Office. Dr. Tyler noted that the budget office completes the calculations.
Mr. Austin asked who is with the budget office. Dr. Tyler apprised that the budget
office is composed of Carla Bender and Virginia Parras.
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Special Meeting – September 15, 2009 – Page 2
Mrs. Flores asked Mrs. Parras if she has financial or accounting background. Mrs.
Parras informed that she has a Master’s in Business Administration.
Mr. Schechter asked for clarification in that the numbers are calculated via
information provided by the governing entity. He also mentioned that based on
information provided by administration the voters would have to vote if the number is
above the rollback rate.
Mrs. Flores noted that Mr. Austin’s inquiry regarding irregularities is to make certain
that decisions are based on validated numbers provided by someone with an
extensive financial background.
Mr. Defalco informed that the auditors review the information annually. Dr. Tyler
apprised that the Tax Assessor is also audited annually.
Mrs. Guzman noted that there is a layer of safety in that the Tax Assessor’s Office is
audited.
Mr. Schechter asked what would be the consequences on the budget if the rate is
reduced. Dr. Tyler noted that last year the rate was presented as .092433 and the
board lowered the rate to .092430, which was approximately $3 million. He noted
that the every one ten thousandth is approximately $1 million.
Mr. Austin inquired if the Board should be considering the effective rate as opposed
to the rollback rate. Dr. Tyler noted that administration recommended a rate below
the effective rate. He noted that the Tax Assessors’ Office informed that because
the college rate is below the effective rate, public hearings are not necessary;
however, he noted that administration is recommending that public hearings are held
to provide an opportunity for public comments.
Dr. Tyler noted that if there are zero delinquent collections, there would be a budget
forecast shortfall of approximately $62,000.
Mr. Schechter asked where the college is regarding projected enrollment. Dr. Tyler
noted that enrollment is 12% above last year’s fall enrollment and there has been
significant increase of the growth rate set by the Board by an estimated 1.5%. He
noted that a 3.5% has been factored into the cost.
(Mr. Worsham stepped out at 12:54 p.m./returned at 12:55 p.m.)
Mr. Schechter apprised that he recollected a different number for last year and
inquired of the cost effect for reducing the tax rate. Dr. Tyler noted that the effect
was approximately $3 million.
Mrs. Flores asked for the deadline for adopting the rate. Dr. Tyler noted that the rate
must be published to the public; therefore, a proposed rate needs to be approved.
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Special Meeting – September 15, 2009 – Page 3
Mr. Worsham asked for clarification. Dr. Tyler noted that the public hearings are not
necessary since the proposed rate is below the effective rate. Mr. Worsham noted
that there were several hearings held on last year before the tax rate was adopted.
Dr. Tyler noted that if the proposed rate is approved today, public hearings will not
be required.
Mrs. Parras noted that if the rate is approved and the public hearings are held, then
there will need to be another meeting to adopt the rate on or before October 15,
2009.
Mrs. Flores noted that it would probably be better to have the hearings to send a
message of transparency.
Mrs. Flores requested information regarding the expenditures of raises recently
approved and the potential impact of a reduced rate. Dr. Tyler mentioned that the
raises were built into the overall budget. He noted that if the rate is adopted the net
would be approximately $2.3 million above the June forecast. He noted that the
Board approved the second portion of the raises to be suspended until a review of
the financial status in January 2010.
Mr. Worsham noted that public hearings provide an opportunity to hear from the
citizens. He noted that he is in favor of lowering the rate even more as noted by
Trustee Schechter.
Mrs. Guzman asked for the rate that would need to be set from the meeting today.
Mr. Austin inquired if the rate remains the same as last year, what is the dollar effect.
Mr. Carlos Allen with RBC noted that the amount would be $104 million. He noted
that the effect of lowering the rate would only be $1,000.
Mrs. Flores referenced the information on the last page regarding the Public Facility
Corporation (PFC) relating to lease revenues. She noted that the PFC is a separate
entity which does not come out of property taxes and inquired regarding co-mingling
of funds. Mr. Deface informed that because of the Alief annexation, Bond Counsel
opined and advised that the college has authority to determine which funds to utilize.
Dr. Tyler noted that the PFC is totally separate; however, the college has an
obligation to pay the PFC, which could be either out of operating funds or from the
maintenance tax funds and noted that the concurrence with Bond Counsel is to
make the change with the PFC lease revenue. Mr. Defalco advised that there is no
fund co-mingling and noted that he recommended the utilization of the maintenance
tax fund option.
Mr. Schechter moved and Mr. Worsham seconded to recess the meeting.
The meeting recessed at 1:36 p.m. and reconvened at 2:02 p.m.
Mr. Austin noted that the information provided by administration and financial
advisors per the spreadsheet presented should allow the Board to move forward.
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Special Meeting – September 15, 2009 – Page 4
Motion – Mr. Austin moved to hold two hearings regarding the tax rate. Mrs. Flores
seconded. Motion passed 5-0.
The Board entered a discussion regarding the proposed rate and when the public
hearings would be scheduled.
Mrs. Flores requested a copy of the spreadsheet developed by the financial advisors
regarding the tax rate.
Dr. Tyler announced that the Board would have to adopt a proposed tax rate today.
Motion – Mr. Worsham motion to adopt a proposed tax rate of 0.092330, which is
lower than the existing rate. Mr. Austin seconded the motion. The motion passed
with a vote of 5-0.
Motion - Mr. Schechter moved to hold public hearings on Thursday, September 24,
2009 and Thursday, October 1, 2009. Mrs. Flores seconded. The motion passed 50.
ADJOURNMENT
With no further business, the meeting adjourned at 2:14 p.m.
Recorded by:
Sharon R. Wright, Executive Administrative Assistant, Board Services
Transcribed and submitted by:
Sharon Wright, Executive Administrative Assistant, Board Services
Minutes Approved: