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Big time eduCation... hometown LoCation

Instructor Rose Hernandez, flanked by Gavilan College

Cosmetology students, faculty, clients and alumni,

cuts the ribbon for the grand-reopening of the

Gavilan College Cosmetology Department in 2010.

Local taxpayers to save $2.6 million from refinance of Measure E Bonds

At their meeting on February 14, 2012 the Gavilan College Board of Trustees voted to refinance a portion of outstanding Measure E General Obligation Bonds at much lower interest rates, without extending the life of the bonds. The District was able to reduce the interest rates on Measure E bonds, which will generate a net savings in debt service to taxpayers of $2,592,801 over the life of the Refunding Bonds. "We can save the taxpayers’ money by taking advantage of the historically-low interest rates available right now," said President Steve Kinsella, "without extending the life of the bonds, or reducing the amount available for capital improvements funded by Measure E." The District itself will not realize any part of the savings, which the Board pursued on behalf of local taxpayers. Measure E was passed by local voters in March, 2004, authorizing the issuance and sale of general obligation bonds in the maximum amount of $108 million. The portion to refinance is $25 million -- the outstanding principal amount of the Series A Bonds. Measure E has been used to provide needed upgrades to the Gavilan College campus infrastructure, technology, instructional space, and acquired property for future development. For information about projects completed with Measure E funds, go to http://www.gavilan.edu/bond.

$2.6 million

About Measure EOn 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 Community College District. Upgrades have been made to campus infrastructure, classrooms, instructional technology, and campus safety. Land has been acquired for future campuses in Coyote Valley and San Benito County.

Letter from the Chair Citizens Oversight Committee

Over the past eight years, Gavilan College has experienced a remarkable renaissance of reconstruction and renewal for the future. Thanks to the passage in 2004 of $108 million in Proposition 39 Measure E bonds by the sagacious and generous foresight of the GJCCD voters, a lot has been accomplished. Beginning with a commendably inclusive planning process in 2003 and continuing as each building renovation was prioritized, leadership by the Gavilan administration and Board of Trustees has included students, faculty, classified staff, and other community members in the process which is now drawing to completion. Students and faculty now enjoy the air conditioning, technology, equipment and facility improvements in every classroom and laboratory. Excellent new parking, lighting, and infrastructure improvements have prepared Gavilan for the next half-century of service as "the best little community college in California."

The COC, or Citizens Oversight Committee, for eight years has faithfully reviewed Quarterly Financial Reports, annual independent audits, and on-going up-dates on Measure E progress. As all reports and audits have indicated each year, all Measure E funds have been expended appropriately and legally only for voter-approved Measure E activities, including renovation on the Gilroy campus and land acquisition at the Hollister Fairview site and the Coyote Valley site in San Jose for future Gavilan College education centers. The original Measure E prohibition against any use of funds for faculty or administrative salaries has been scrupulously observed.

All interested citizens are invited to attend COC meetings. The next scheduled meeting is September 10, 2012 in the North Lounge on the Gilroy campus. John Hansell

Citizens Oversight Committee John Hansell, ChairAt-Large: Gene Sakahara, Irma Rodriguez, Jack BachoferSenior Citizens' Organization: John HansellBusiness Representative: Tim DayStudent Representative: Lisa ReeveDistrict Support Organization: Sandy HabrTaxpayers' Organization: VACANT

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

Completed ü Tennis court repairs ü Boiler replacement ü Infrastructure replacement ü ADA improvements ü Computer replacement ü Enterprise Resource System ü Interim housing ü Cafeteria renovation ü Parking lot expansion / resurfacing ü Renovations of Mathematics,

Physical Science, Life Sciences, Art, Music, Humanities, Security and Facilities, and Multipurpose buildings.

ü Land purchase - Coyote Valley ü Land purchase - San Benito County ü Cosmetology / Business renovation ü Roof repair for Gymnasium,

Mathematics, and Physical Sciences buildings.

ü Campus and building signage ü Social Science building

Pending state matching funds t Gymnasium renovation t Library / TV Studio renovation t New Student Services and

Administration building

Measure E Projects

General Obligation Bonds Measure E Financials2010-2011.

Revenues and Expenditures Fiscal Year July 1, 2010 - June 30, 2011

Net Assets July 1, 2010 $ 6,006,543

ExpensesSupplies, materials and other operating expenses and services $ 4,093,616

Revenues:Investment income : $ 62,461Proceeds from issuance of debt: $ 28,000,000Change in Net Assets $ 23,968,845

Net Assets July 1, 2011 $ 29,975,388

Assets and Liabilities

AssetsCash and cash equivalent 30,437,184Receivables, net 31,875

Total Assets 30,469,059

Net Assets

Restricted for capital projects 29,975,388

Liabilities

Accounts payable $ 482,193 Due to other funds 11,478 Total Liabilities 493,671

Total Liabilities & Net Assets 30,469,059

Independent Auditor’s ReportAn independent financial audit is conducted annually. The audit was completed by Crowe Horwath of Sacramento and a report issued in December, 2011. The audit concluded that "in all significant respects, Gavilan Joint Community College District expended Measure E General Obligation Bond funds for the year ended June 30, 2011 only for the spcific projects developed by the District's Governing Board and approved by voters, in accordance with the requirements of Proposition 39, as specificed by Section 1(b)(3)C of Article XIII A of the California Constitution."

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 were issued to finance the construction and modernization of district facilities and to refund certain lease obligations. The bonds mature through August 2028 and bear interest at rates ranging from 2.00% to 5.38%. The 2004 Series B bonds matured on August 1, 2006. Net bond premium of $140,900 (net of accumulated amortization) was capitalized and is amortized over the term of the bond.

The following is a schedule of future payments for the 2004 Series A General Obligation Bonds:

Year Ending June 30 Principal Interest Total2012 $ 335,000 $ 1,295,457 $ 1,630,4572013 415,000 1,280,876 1,695,8762014 500,000 1,262,575 1,762,5752015 590,000 1,240,776 1,830,7762016 690,000 1,214,313 1,904,3132017-2021 5,195,000 5,440,373 10,635,3732022-2026 9,255,000 3,588,597 12,843,5972027-2029 8,270,000 711,425 8,981,425TOTAL $ 25,250,000 $ 16,034,392 $ 41,284,392

On December 12, 2007, the district issued $50,000,000 of General Obligation Bonds 2004 Series C. The bonds were issued to finance the construction and modernization of district facilities, the acquisition of equipment and to pay the costs of issuance associated with the bonds. The bonds mature through August 2032 and bear interest at rates ranging from 4.00% to 5.00%. Net bond premium of $75,870 (net of accumulated amortization) was capitalized and is amortized over the term of the bond.

The following is a schedule of the future payments for the 2004 Series C General Obligation Bonds:

Year Ending June 30 Principal Interest Total2012 $ 225,000 $ 2,282,843 $ 2,507,8432013 300,000 2,273,844 2,573,8442014 385,000 2,261,844 2,646,8442015 470,000 2,246,444 2,716,4442016 560,000 2,227,644 2,787,6442017-2021 4,460,000 10,715,020 15,175,0202022-2026 7,985,000 9,368,720 17,353,7202027-2031 19,580,000 6,920,176 26,500,1762032-2033 14,885,000 1,074,688 15,959,688TOTAL $ 48,850,000 $ 39,371,223 $ 88,221,223

On May 12, 2011, the district issued $28,000,000 of General Obligation Bonds 2004 Series D. The bonds were issued to finance the construction and modernization of district facilities, the acquisition of equipment and to pay the costs of issuance associated with the bonds. The bonds mature through August 2035 and bear interest at rates ranging from 2.00% to 5.75%.Net bond premium of $953,449 (net of accumulated amortization) were capitalized and will be amortized over the term of the bond.

The following is a schedule of the future payments for the 2004 Series D General Obligation Bonds:

Year Ending June 30 Principal Interest Total2012 N/A $ 339,321 $ 339,3212013 $ 255,000 1,546,275 1,801,2752014 N/A 1,541,175 1,541,1752015 10,000 1,541,175 1,551,1752016 50,000 1,540,875 1,590,8752017-2021 840,000 7,646,675 8,486,6752022-2026 2,095,000 7,371,625 9,466,6252027-2031 3,895,000 6,668,975 10,563,9752032-2036 20,855,000 4,518,588 25,373,588TOTAL $ 28,000,000 $ 32,714,684 $ 60,714,684

The Gavilan Joint Community College District is committed to

equal opportunity in educational programs, employment, and all access to institutional programs

and activities.

Board of TrusTeesLaura Perry, Esq., PresidentKent Child, Vice President

Jonathan BruscoWalt GlinesTony Ruiz

Tom Breen, Esq.Mark Dover

Student Trustee: Izzy Quistian

adminisTraTion

Steven M. Kinsella, DBA., CPA Superintendent/President

Kathleen Rose, EdD Executive Vice President & Chief

Instructional Officer

John Pruitt VP of Student Services

Joe Keeler, CPA VP of Administrative Services

Sherrean Carr Dean of Career Technical Ed.

Fran Lozano Dean of Liberal Arts and Sciences

Ron Hannon Dean of Kinesiology & Athletics

Fran Lopez Associate Dean, Disability

Resource Center

Rachel Perez Associate Dean, Community

Development and Grants Mgmt.

Anne Ratto Associate Dean of Extended

Opportunity Programs and Svcs.

Gavilan College5055 Santa Teresa Blvd.

Gilroy, CA 95020

(408) 848-4800www.gavilan.edu

MissionIn an environment that 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.

AccountingAdministration of JusticeAllied Health - NursingAnthropologyArtAstronomyAviation Maintenance TechnologyBiological ScienceBiotechnologyBusiness Office TechnologyBusinessChemistryChild DevelopmentCommunication StudiesComputer Graphics and DesignComputer Scinece and Information

SystemsCosmetologyDigital MediaEcologyEconomicsEngineeringEnglishEnglish as a Second LanguageEnvironmental ScienceFrenchGeography

GeologyGuidanceHealth EducationHistoryHumanitiesJapaneseJournalismKinesiologyIntercollegiate AthleticsLibraryManagementMarketingMass Communications and TelevisionMathematicsMusicPhilosophyPhysical Education - AdaptedPhysical SciencePhysicsPolitical SciencePsychologySociologySpanishTheater Arts / Drama / TelevisionVocational PreparationWater Resources ManagementWork Experience

Academic Disciplines