General Manager Report – May 2014

by Jan Ek

Financial Report:
We completed April within our operating and capital budget year-to-date. We continue to work with APS on getting the rebates and appropriate billings. We have gotten the rebate program working well now and are still working on some utility billing issues which should produce a credit in our utility expenses in the near future. We have roughly $390k in budgeted repairs, maintenance and equipment purchases that have not yet been completed but are still forthcoming this year. Again a reminder that our assessment income shows it is under budget year-to-date. However, it is a budget timing error that will level out over the summer. Along that same line, remember again that this is the time of year when we have the largest monthly billings for assessments so cash does tend to accumulate as it is needed for the rest of the year when we have smaller billings.

Cardholder Services:
Payments on past due assessments were down in April and well below the monthly average for the past year. March billings went past due at a rate of 4.7%, which is again the lowest rate in the past three years. This is significant as March is our highest billing month of the year and we saw the lowest 30 day rate for this month. This compares to March 30-day delinquency rates of 6.1% in 2013 and 8.5% in 2012. February balances went 60 days past due at a rate of only 2.7%, which is the lowest monthly rate ever, with less than 50% of 30-day balances going 60 days past due.

Total accounts receivable did increase for the first time this year at just under a 1% increase in April. Outstanding balances related to property transfers increased by 2.7% in April and continue to represent 55% of all receivables due and past due balances. The increase in overall receivables is mostly attributable to these new property transfers as they represent 82% of the receivables increase for the month.

Trustee sale notices on Sun City properties increased to 43 properties at the end of April. The number of properties owned by lending institutions stayed the same at 75 this month, although there was turnover on specific properties. This turnover does impact overall receivables as new lender owned properties with balances replace those that have paid fees and have a zero balance.

Preservation and Improvement Fees collected in April continued strong and totaled $750,010, which is $315,010 more than budget. Year-to-date PIF fees are $2,581,478, which is $1,138,478 over budget for the year. Again a reminder that we intentionally budget the PIF fee income conservatively to assure that we have sufficient funds when projects are scheduled.

Bowling Centers:
The 26th annual Sun City Open Bowling Tournament was held at both RCSC bowling centers on the weekend of May 3rd. This year the tournament had 64 team entries, the most entries Director of Bowling Operations Randy Johnson has seen in the past seventeen years. The tournament produced almost $5k in income over the two weekends. Tournament participants came from all over Arizona and praised the center’s cleanliness and the staff of the RCSC bowling centers.

Bell Lanes began its monthly summer No-Tap bowling tournaments which are held the last Sunday of each month and end the last Sunday of September with a Scotch Doubles tournament. All bowlers are welcome whether USBC certified or not.

Human Resources:
The demographics of our staff have changed considerably since welcoming golf and grounds maintenance employees back to RCSC. Numbers of employees increased from 274 in May 2013 to 352 in May 2014 resulting in an approximate 28% increase. Another interesting demographic change is Sun City residency. Staff living in Sun City in 2013 was at 73% and currently is at 66% which is close to the figure prior to leasing golf and grounds maintenance. We believe that the number of full time positions attracts more individuals from outside the community.

Last month H.R. reported a Department of Labor (DOL) audit of the RCSC Employees 401(k) Plan had taken place on April 15th. We are anxiously awaiting the results of the audit and know the DOL does things in its own time and will respond when ready.

Member Services:
The Sun Bowl Spring Series ended with a tribute to the Beach Boys. The season proved to be outstanding, with record attendance for most of the shows. According to the comment cards, you definitely missed out if you were unable to attend any of the performances. The Fall Series promises to deliver even more… not only at the Sun Bowl but at the Sundial as well.

Sun City mothers were honored at our first Mother’s Day Brunch at Lakeview Center. They were treated like royalty, with a wide variety of incredible food and elegant ambiance. Each mother received a rose in commemoration of the special day. We look forward to hosting this event again next year!

Sun City fathers, we invite you to join us for our 1st Father’s Day Fishing Derby and Breakfast. This event will take place on Sunday, June 15th, at the Lakeview Center. Both events kick-off at 7am. Tickets are still available at the Lakeview Clubs Office for $20 per person, including tax and gratuity. Prizes will be awarded for the first fish and the biggest fish!

Finally, you won’t want to miss the world-renowned comedy hypnotist Pattie Freeman when she brings her one-of-kind act to the Sundial Auditorium stage on Wednesday, June 11, at 7pm. You will be amazed, mystified and thoroughly entertained as Pattie transforms the “meek and mild” into the “sleek and wild” during this fast-paced and uproariously funny show. Watch as Sun City area residents take to the stage and fall under her spell, as each hypnotic suggestion has them doing the unimaginable. Tickets for this show ($13 per person) are on sale now at the Clubs Office located in the Lakeview Recreation Center at 10626 W. Thunderbird Blvd.

For those who may not be aware, the monthly management reports are available on our website under the Corporate tab. Also, if you have not done so already, please sign up on the RCSC email list where you can designate topics of interest and stay in the loop with RCSC news alert emails! We have forms available at the table in the back so you can sign up before you leave today.