Details for 099: DISPLAY GTCD 5-8-19 and 5-16-19 for

GATEWAY TECHNICAL COLLEGE DISTRICT BOARD Public Budget Hearing May 8, 2019 The Gateway Technical College District Board met on Wednesday, May 8, 2019 at the Burlington Center, Room 100, 496 McCanna Pkwy, Burlington, Wisconsin. The meeting was called to order at 7:00 pm by Beth Ormseth, Chairperson. I. Call to Order A. Open Meeting Compliance • K. Bartlett confirmed the meeting was duly noticed in accordance with state statutes for open meeting compliance. II.Roll Call Jesse Adams Present Ram Bhatia Present William Duncan Excused Arletta Frazier-Tucker Excused Ronald J. Frederick Present Scott Pierce Present Roger Zacharias Excused Pamela Zenner-Richards Present Bethany Ormseth Present Also in attendance were Bryan Albrecht, Kelly Bartlett, and 11 citizens/reporters. III. Approval of Agenda A.It was moved by S. Pierce, seconded by P. Zenner-Richards, and carried to approve the agenda. IV. Budget Presentation by Bill Whyte: A.FY19-20 Budget Calendar • May 8, 2019 = Public Hearing – present the Preliminary FY 2019-20 Budget • May 16, 2019 = District Board – approve the FY 2019-20 Budget • October 17, 2019 = District Board – reaffirm the tax levy B. Gateway Fund Structure • General Fund $82.2M General operations • Special Revenue – Operational Fund $6.5M Grant activity • Special Revenue Non-Aidable Fund $29.7M Financial aid and student clubs • Capital Fund $14.3M Purchases for equipment and site improvements • Debt Service Fund $14.2M Financing of debt and interest for capital purchases • Enterprise Fund $0.53M Activities financed through user fees C. Total Funding Sources • State Aid 30% • Tax Levy 25% • Federal Grants 17% • Student Fees 13% • Debt Proceeds 10% • Institutional 5% D.Total Expenditures by Function • Instruction 40.2% • Student Services 29.4% • Physical Plant 21.2% • General Institutional 7.6% • Instructional Resources 0.9% • Auxiliary Services 0.4% • Public Service 0.3% E. FY20 Proposed Budget Summary • Revenues: – Tax Levy $20,619,437 – State Aid $39,290,076 – Tuition & Fees $17,876,708 – Other Revenue $4,429,934 Total Revenue $82,216,155 • Expenses: – Salaries & Wages $49,051,526 – Employee Benefits $18,277,412 – Other Expenses $14,887,217 Total Expenses $82,216,155 • Net Revenue / (Expenses) $0 F. General Fund Revenues • Tax Levy: Increased $750,000 for estimated net new construction • State Aid: Flat Outcome Based and Historical Funding, Formula remains at 30% OBF/70% Historical • Program Fees: 1.7% increase in Tuition, 1.7% increase in Material Fees, 1.7% increase in Other Fees, -2.0% FTE’s • Other Revenue: $194K Increase G.FY20 Tuition & Fees • FY18 Actual: Tuition $15,293,543, Material Fees $819,470, Other Fees $1,983,400, Total $18,096,413. • FY19 Estimated Actual: Tuition $15,023,379, Material Fees $805,993, Other Fees $2,107,244, Total $17,936,616. • FY20 Budget: Tuition $14,973,201, Material Fees $803,301, Other Fees $2,100,206, Total $17,876,708. • FY2020 Tuition reflects an increase of 1.7% in tuition and a decrease in enrollment of 2%. Cost per credit will increase to $136.50. H. FY20 Operating Expenses • FY18 Actual: Salaries & Wages $48,037,444, Employee Benefits $17,125,851, Other Expenses $15,184,839, Total $80,348,134. • FY19 Budget: Salaries & Wages $48,396,343, Employee Benefits $18,066,886, Other Expenses $15,318,547, Total $81,781,776. • FY20 Proposed Budget: Salaries & Wages $49,051,526, Employee Benefits $18,277,412, Other Expenses $14,887,217, Total $82,216,155. • Increase/Decrease: Salaries & Wages $655,183, Employee Benefits $210,526, Other Expenses ($431,330), Total $434,379. I. General Fund Expenses • Salary: $1.5M vacant position savings (includes fringe), 6 new positions, funded thru savings from other salary savings; no new money. • Fringe: Includes estimated increase for WRS – 0.2%, 3% increase in health and flat for dental. • Current Expenses: Expenses include new initiatives and higher threshold on capital equipment ($5000 minimum), 431K decrease J. FY20 Capital Budget • Expansion $1,500,000 • Remodel $4,000,000 • Repair $3,500,000 • Equipment $5,000,000 • Total $14,000,000 K.FY20 Capital Projects • Police/Fire Training Track $1,500,000 • Classroom Remodeling $4,000,000 • Infrastructure Upgrades $1,700,000 • General Maintenance $1,800,000 L. Property Tax Impact • Operating tax levy budgeted at $22,713,642 – Increase of $750,000; net new construction – Increase of 3.42% • Debt levy budgeted at $13,775,000 – Increase of $958,000 – Increase of 7.47% • Total mill rate is 0.80365 compared to 0.80433 last year, a decrease of 0.08% • Tax rate assumes assessments will increase 5% • Homeowner will pay $160.73 for a home valued at $200,000 $0.14 decrease over last year M. Moody’s Bond Rating Aaa Rating – indication of Moody’s high level of confidence in Gateway’s fiscal policies and governance. • Moody’s believes the district’s financial operations will remain sound due to: – Prudent financial management – Healthy and improving financial position – Sizeable, stable tax base; favorable location between Chicago and Milwaukee • Moody’s expects the district’s debt levels to remain manageable: – Average overall debt burden – Low direct debt – Rapid principal amortization • Moody’s notes the following challenges to the district: – Weakening of operating reserves or liquidity – Increases in the debt or pension burdens V. Citizen Comments There were no citizen comments. VI. Next Meeting Date and Adjourn A.Regular Meeting - Thursday, May 16, 2019, 8:00 am, Kenosha Campus, Madrigrano Conference Center, Board Room B. At approximately 7:35 pm it was moved by S. Pierce, seconded by R. Bhatia and carried that the meeting adjourn. Submitted by, Pamela Zenner-Richards Secretary GATEWAY TECHNICAL COLLEGE DISTRICT BOARD Regular Meeting May 16, 2019 The Gateway Technical College District Board met on Thursday, May 16, 2019 at the Kenosha Campus, Madrigrano Conference Center, Board Room, 3520 30th Avenue, Kenosha, WI. The meeting was called to order at 8:00 a.m. by Scott Pierce, Vice Chairperson. I. Call to Order A.Open Meeting Compliance • K. Bartlett confirmed the meeting was duly noticed in accordance with state statutes for open meeting compliance. II.Roll Call Jesse Adams Excused Ram Bhatia Present William Duncan Present Arletta Frazier-Tucker Present Ronald J. Frederick Present Scott Pierce Present Roger Zacharias Present Pamela Zenner-Richards Present Bethany Ormseth Excused Also in attendance were Bryan Albrecht, Kelly Bartlett, Mary Harpe and 35 citizens/reporters. III. Approval of Agenda A. It was moved by W. Duncan and seconded by P. Zenner-Richards and carried to approve the agenda with the following change: the operational agenda was moved up prior to the action agenda to accommodate presenters and approvals. IV. Approval of Minutes A. It was moved by R. Bhatia, seconded by P. Zenner-Richards and carried to approve the minutes of the April 18, 2019 Regular Meeting. V. Citizen Comments There was one citizen comment from Dr. Jay Johnsen, Instructor Communications and President of GTEA. The comment reflected a thank you to the Board and an update on compensation from GTEA. VI. Chairperson’s Report A. Dashboard Report items included updates on: • Gateway received a $140,000 grant to expand apprenticeship. • Gateway received a $300,000 National Science Foundation grant for STEM. • 27 teams participated in this year’s Sumo Bot Competition. B. Board Evaluation Summary • 8 of 9 attending Trustees responded to the survey. • Comments from Trustees include: Excellent presentations and updates on Vision 2021, and all announcements under President’s report. Thank you for keeping the board fully informed. Good meeting. Excellent and informative presentations. Informative but almost too much. Good meeting. Lengthy but much to cover. VII. President’s Report A. Announcements • Bryan Albrecht welcomed employee Aneisha Denson, attending the meeting for Gateway’s Journey. • Bryan announced that Scott Pierce, Vice Chairperson would be filling in for Bethany Ormseth, Chairperson during this meeting. • Bryan announced that Jacqueline Morris attended the Great Lakes Group Ellucian main conference and will be joining a committee with Ellucian to improve efficiencies. • John Thibodeau spoke about the 4th internal leadership program graduation that took place recently called Gateway to Leadership. This is a group of non-supervisory employees each year that want to learn more about leadership. • Jeff Robshaw spoke about a new generator at iMET Center that supports IT equipment. iMET is the secondary data center for the college. • Tom Cousino added that the generator covers emergency lighting and the elevator at iMET for safety and accessibility. • Stacy Riley spoke about the commencement ceremony. There were 1,031 technical or associate completers this year. This is the highest about of graduates in four years. 777 certification completers which was also the highest in four years. • Zina Haywood spoke about the Scholastic Awards ceremony. This is for students with the highest GPA of their program area per campus. GED and HSED graduation also was a huge success this year. • Matt Janisin commented on the ELC Retreat, he said it was very enlightening and a great opportunity to learn and work together as a team. • Stephanie Sklba spoke about the upcoming US Department of Education visit that will take place at Gateway on the Racine Campus. B. Campus Welcome • Gary Flynn welcomed everyone to the Kenosha Campus. Gary spoke about campus updates, the second floor remodel in the Academic Building, CDL training that is taking place in the parking lot and events on campus including: Earth Day and Take Your Child to Work Day. C. Mahone Fund • Tim Mahone gave an update on the Mahone Fund and shared the history of the organization with the Trustees. Tim spoke about the passion that his mother and father had on the community and recognized all the work that they have done over the years. Tim’s father taught at Gateway for 18 years. Tim was presented with a photo of his dad while working at Gateway. • Stephanie Slkba shared that the atrium on the Kenosha Campus will be named after Arthur F. Mahone. • Tim Mahone presented a check for a new scholarship for welding students with a $10,000 donation at the Board meeting. VIII. Operational Agenda A. Action Agenda 1. Fiscal Year 2019-2020 Budget Approval - Section 3 – Executive Limitations, Policy 3.4 Budgeting/ Forecasting Administration recommends the FY 2019 – 2020 budget be approved. Following discussion it was moved by R. Zacharias, seconded by W. Duncan and carried by roll call vote to approve Fiscal Year 2019-2020 Budget Approval - Section 3 – Executive Limitations, Policy 3.4 Budgeting/Forecasting. Aye: 7 Nay: 0 Abstaining: 0 Absent: 2 2. Resolution No. F-2019-2020A.1 – Resolution Authorizing the Issuance of $6,500,000 General Obligation Promissory Notes, Series 2019-2020A Administration is recommending approval to issue General Obligation Promissory Notes, Series F-2019-2020A; in the principal amount of $6,500,000; $1,500,000 for the public purpose of financing building remodeling and improvement projects; $5,000,000 for the public purpose of financing the acquisition of movable equipment. This borrowing is included in the 2019-20 budget. Upon approval, appropriate legal notices will be published in the official district newspapers. Following discussion it was moved by R. Bhatia, seconded by R. Zacharias and carried by roll call vote to approve Resolution No. F-2019-2020A.1 – Resolution Authorizing the Issuance of $6,500,000 General Obligation Promissory Notes, Series 2019-2020A. Aye: 7 Nay: 0 Abstaining: 0 Absent: 2 3. Resolution B-2019 B – Review of DRAFT – Three-Year Strategic Facility Planning Guide for State Submission, Fiscal Years 2019-20, 2020-21, 2021-22 The DRAFT is being provided to the Board for review and consideration. The final facility planning guide will be brought before the Board for approval at the June 20, 2019 meeting. Following discussion it was moved by R. Frederick, seconded by W. Duncan and carried to approve Resolution B-2019 B – Review of DRAFT – Three-Year Strategic Facility Planning Guide for State Submission, Fiscal Years 2019-20, 2020-21, 2021-22. Pamela Zenner-Richards left the meeting at 9:00 am. B.Consent Agenda It was moved by R. Zacharias, seconded by W. Duncan and carried that the following items in the consent agenda be approved: 1. Finance a) Financial Statement and Expenditures over $2,500: Approved the financial statement and expenditures as of April 30, 2019. b) Cash and Investment Schedules: Approved the monthly cash reconciliation, investment schedule and investment report. 2. Personnel Report: Approved the personnel report of four (4) new hires; one (1) promotions; no employment approvals-casual, noninstructional; and no employment approvals-adjunct faculty. 3. Grants Awards: Approved the grand awards for May 2019. 4. Contracts for Instructional Delivery: Approved the contracts for instructional delivery report for April 2019 5. Advisory Committee Activity Report: Approved the advisory committee 2018-2019 meeting schedule and new members as of May 1, 2019 IX. Policy Governance Monitoring Reports A. Ends Statement Monitoring 1. College Ends Policy – The tri-county community benefits from affordable higher education that allows residents to develop knowledge and skills for family-supporting careers that contribute to the growth and sustainability of the local economy at a cost commensurate with the value of services provided. 5) Educational partners, locally, nationally, and internationally, connect their students to Gateway’s well-developed career pathways courses, facilities, and educational resources. Ray Kourari, Katie Graff, and Cheryl Kothe presented on Ends Policy #5. Following discussion, it was moved by R. Bhatia, seconded by R. Zacharias and carried that this report is evidence that the college is making progress on Ends Policy #5. 2. Policy Governance Review – Ends Policy #5 Following discussion, it was moved by R. Zacharias, seconded by W. Duncan and carried to approve the wording of Ends Policy #5. X. Board Member Community Reports • S. Pierce mentioned Gateway’s Commencement Ceremony. 5 Trustees were attending this event. • S. Pierce reminded the Trustees of the next District Boards meeting taking place in July 2019. • R. Bhatia mentioned the Foundation Golf Outing. XI. Next Meeting Date and Adjourn A. Regular Meeting – Thursday, June 20, 2019, 8:00 am, Elkhorn Campus, Rooms 112/114 B. At approximately 9:45 a.m. it was moved by R. Zacharias, seconded by W. Duncan and carried by roll call vote that the meeting was adjourned and the District Board move to executive session pursuant to Wisconsin Statutes 19.85(1)(c) to discuss the President’s Evaluation. The Board reserves the right to reconvene in open session to take action on items discussed in executive session. Aye: 6 Nay: 0 Abstaining: 0 Absent: 3 XII. Executive Session The Board did not reconvene in open session. Submitted by, Pamela Zenner-Richards Secretary GATEWAY TECHNICAL COLLEGE DISTRICT BOARD Revenue and Expenditures May, 2019 Total Revenue $ 1,867,798 Total Expenditures $ 6,282,622 WNAXLP

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