MEETING OF THE FINANCE COMMITTEE
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE
August 24, 2010
Minutes
The Board of Trustees of Houston Community College met as a Facilities and Finance
Committee on Tuesday, August 24, 2010, at the HCC Administration Building, 2nd Floor,
3100 Main in Seminar Room A, Houston, Texas.
BOARD MEMBERS PRESENT
Dr. Michael P. Williams
Neeta Sane, Vice Chair
Sandie Mullins, Secretary
Bruce Austin
Yolanda Navarro Flores
Eva Loredo
Mary Ann Perez
Richard Schechter
ADMINISTRATION
Mary Spangler, Chancellor
Art Tyler, Deputy Chancellor/COO
Renee Byas, General Counsel
Doretha Eason, Executive Assistant to the Chancellor
Daniel Seymour, Vice Chancellor, Planning and Institutional Effectiveness
Diana Pino, Vice Chancellor, Student Services
Margaret Ford Fisher, President, Northeast College
Fena Garza, President, Southwest College
Zachary Hodges, President, Northwest College
Betty Young, President, Coleman College
Willie Williams, Chief Human Resources Officer
Remmele Young, Executive Director of Government Relations
OTHERS PRESENT
Jarvis Hollingsworth, Board Counsel, Bracewell & Giuliani
Other administrators, citizens, representatives of the news media
CALL TO ORDER
Dr. Williams, Chair, called the meeting to order at 10:17 a.m. and declared the Board
convened to consider matters pertaining to Houston Community College as listed on the
duly posted Meeting Notice.
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Facilities and Finance Committee (Budget Workshop) – August 24, 2010 – Page 2 2
FINANCIAL OVERVIEW AND BUDGET WORKSHOP
Dr. Tyler apprised that the presentation will include the following:
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Responses to questions posed by Trustee Sane
Tuition
Tax rates
Biennium appropriations.
Dr. Tyler began with an overview of enrollment growth. He noted that over the past two
years enrollment has increased by twenty percent.
Dr. Tyler provided an overview of the fiscal year 2010-2011 operating budget. He noted
that the tax revenue will not change much as the only addition to the tax district is North
Forest. Dr. Tyler apprised that the forecasted budget is less than what has already been
earned due to the increased enrollment.
Dr. Tyler noted that the budget has $3.5 million available to cover a decrease in state
appropriations and noted that the savings is reflected in the financial statement.
(Dr. Williams stepped out at 10: 20 a.m.)
Dr. Tyler gave an overview of new requests for fiscal year 2010-2011 from the colleges.
He further explained that additional income from North Forest taxes, increased out-ofstate and out-of-district fees, as well as the increase in distance education fee can be
used for these projects. Dr. Tyler recommended increasing the approved budget for fiscal
year 2010-11 from $263 million to $269 million based on current numbers.
(Trustee Austin arrived at 10:34 a.m.)
Mr. Austin asked for an estimate of ninety days of expenditures. Dr. Tyler apprised that
90 days expenditures are approximately $66 million, which does not include the reserve
amount of $27 million. Mr. Austin apprised that the reserve should hold ninety days of
expenditures. Dr. Tyler apprised that the reserve amount is based on the Board’s reserve
policy of ten percent. Mr. Austin noted that the reserve should be adjusted to cover ninety
days of expenditures due to increased expenditures.
Dr. Spangler referenced the nursing survey data and noted that pay rates of employees
may need to be raised in certain categories due to demand in the field. She noted that a
market survey showed that area community colleges pay their adjunct nurses significantly
higher than HCC. She noted that the recommendation from Human Resources has been
accepted to make an adjustment to pay adjunct at a higher rate in the areas of nursing
(LVN and AVN), dental hygiene, and allied health. She noted that full-time faculty would
receive a stipend if they qualified.
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Facilities and Finance Committee (Budget Workshop) – August 24, 2010 – Page 3 3
Ms. Mullins recommended that administration conduct research to ensure that the college
is competitive regarding faculty pay when starting new programs to avoid future
adjustments.
Dr. Young apprised that the dental hygiene is a new program. She further noted that the
faculty for dental hygiene and nursing is required to have higher credentials and noted the
pay rates of other organizations in the medical center are rising.
Mr. Austin inquired the status of the compensation analysis. Willie Williams informed that
the pay scale has been adjusted and that compensation is reviewed annually. He further
noted that in certain fields the demand is high and compensation needs to be adjusted to
attract employees.
(Mrs. Flores arrived at 10:50 a.m.)
Mr. Schechter inquired about the stipend issue. Dr. Young explained that there are two
different plans for nursing faculty only: (1) stipends for full-time nursing faculty who
receive their certification and (2) adjunct will receive an increase in hourly rate.
Mr. Austin asked why the base pay is not adjusted. Mr. Williams explained that an
increase in base pay locks you into a certain pay amount and that a stipend can be
discontinued as the market shifts.
(Mrs. Perez stepped out at 10:54 a.m.)
Mr. Austin recommended using the term pay allowance instead of stipend for nursing
faculty.
Ms. Mullins asked for further information regarding summer extensions. Dr. Tyler
informed that some classes were combined; however, summer enrollment grew by ten
percent and noted that the assumption is that enrollment will continue to increase.
(Mrs. Perez returned at 10:59 a.m.)
Ms. Loredo asked for the figures of revenue from summer growth. Dr. Tyler apprised that
he will generate a report by semester to include cost per semester.
Mr. Schechter noted that enrollment growth is a good problem. He noted that the cash
reserve should be increased.
Dr. Spangler apprised that currently the enrollment increase as of five days before the
start of the fall semester is forty percent. She further noted that it is smart growth based
on retention.
Mrs. Flores asked how the tax rate is affected by the bonds approved in July and how
tuition and fees are affected by the recently approved student revenue bonds. Dr. Tyler
mentioned that only interest is being paid in year one which reflects $32 million not being
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Facilities and Finance Committee (Budget Workshop) – August 24, 2010 – Page 4 4
spent this year. He further noted that RBC Capital has provided a forecast of future
payments.
Dr. Tyler apprised that there has not been an increase in the tax rate due to the
maintenance tax notes. He further noted that maintenance debt is taken off the top.
Mrs. Flores clarified her question that as a result of the bonds is there a change in the tax
rate. Dr. Tyler apprised that there is no change. He further noted that the tax rate is split
into two components, debt service and the balance goes into the operating fund. Mrs.
Flores inquired if there is a need to raise tuition and the tax rate. Dr. Tyler informed that
at this time there is no request to raise tuition or the tax rate.
Dr. Tyler mentioned that over the next three years, there is an opportunity to retire
approximately $80 million of debt.
Mr. Austin noted that he recommends he would rather promote better student
achievement as opposed to debt retirement. He further noted that this discussion be a
part of policy to keep the Board informed.
Mr. Schechter informed that the Board approved a monitoring report schedule and also
informed that the dashboard should be online in September. Dr. Seymour informed that
the dashboard is ready to go.
(Ms. Loredo stepped out on 11:38 a.m.)
(Dr. Williams returned at 11:38 a.m.)
Ms. Mullins noted there was a discussion on salary increases. Dr. Tyler apprised that $1.5
million was allocated for salary increases; however, the Board asked administration not to
fund the increases until it was determined what the impact of the state reduction would
be. Dr. Tyler mentioned that the distribution could be handled as a one-time lump sum to
faculty and staff or the increase could be added to the base salary.
Mr. Austin asked if there is a forecast regarding the salary increase that coincides with
compensation competition in the area. Dr. Williams asked if there is a cost of living
increase. Dr. Tyler apprised that a step process is utilized. Mr. Williams apprised that
satisfactory performance allows for eligibility step increase if the Board approves an
increase in the budget.
Mr. Austin apprised that there should be an informed decision with HR supplying
information regarding competitive edge, current scenario compared with non-profits and
for profits etc.
Ms. Mullins noted that not much could be done with salaries regarding cost reduction;
however, she inquired about contract with Chevron as it relates to energy efficiency and
asked have the efficiencies been realized. Dr. Tyler noted that the energy efficiency
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Facilities and Finance Committee (Budget Workshop) – August 24, 2010 – Page 5 5
savings should be realized this year. He noted that the savings have not been factored in
at this time and apprised that the new buildings will play a factor in the savings.
Dr. Williams inquired about the cost of energy per kilowatt in comparison to neighboring
entities/institutions. He also requested information is forwarded to the Board regarding the
total number of employees in the system. Willie Williams noted that there are
approximately 6,000 employees, which includes faculty, staff, and part-time/adjunct.
Mr. Austin asked to what point the college is utilizing energy (greenhouse) type
components such as solar signage. Dr. Tyler responded that 10%-15% of energy used is
green.
Mr. Schechter recommended reviewing departmental chairs structure that allots for a
department chair at each college. Dr. Spangler noted that the budget task force will
review such issues.
Dr. Williams asked when was the last review of the adjunct faculty competitively with
other colleges and asked that the information be provided to the Board. Willie Williams
apprised that the information is reviewed annually.
Dr. Williams recommended conducting a performance audit to review certain areas
mentioned by the Board. Mr. Schechter noted that the State Comptroller previously
conducted one. Dr. Tyler noted that he would research if the Comptroller’s office still
offers the services at no charge.
Ms. Loredo noted in regards to salary, that it is important quality faculty and staff is in
place.
Dr. Williams asked how faculty performance is measured. Mr. Austin noted that Dr. Cook
has developed an academy that deals with the pedagogy.
Ms. Loredo asked if there is data that shows the number of instructors, students, and
number of completion. Dr. Garza noted that there is a retention report.
ADJOURNMENT
With no further business coming before the Board, the meeting adjourned at 12:05 p.m.
Minutes recorded, transcribed & submitted by:
Sharon Wright, Manager, Board Services
Minutes Approved as Submitted: