General Manager Report – August 2017

by Jan Ek

Financial Report:

Since there is no monthly Board meeting in August, I will include the Treasurer’s Report information in my monthly report. The balance of unrestricted funds as of July 31, 2017 was $12,664,209 which includes a $2.5M cash reserve. Restricted funds include the Preservation and Improvement Fund (“PIF”) and the Capital Reserve Fund. As of July 31, 2017, PIF had a balance of $13,284,565 plus $805,700 collected in July that was transferred into the PIF account the first part of August 2017. The Capital Reserve Fund had a balance of $5,097,677 as of July month end.

We have completed July 2017 within our operating and capital budget year to date. Our total gross income (income less cost of sales) is on target with budget. General operating expenses and total wages, taxes and benefits are less than budgeted year to date. Utilities, however, is over budget by $48k year to date, with the largest variance ($41k) in pump & well electric expense in the golf division. Repairs & maintenance is significantly under budget by $980k as projects are not released until we are assured that meeting our annual budget is without risk. Repair & maintenance projects are carried forward into the next year as needed so long as we complete the year within our budget, which should not be an issue.


The final summer bowling tournament will be held on September 24, 2017 at Bell Lanes. The tournament is a scotch doubles tournament and all bowlers are welcome whether USBC certified or not. Entry forms are available at both bowling centers or can be downloaded at under the bowling tab.

Last month, the bowling department implemented a procedure that allows us to notify all league bowlers of events related to their specific league. The procedure has been working well as we have received several comments thanking us for the timely communication. With the new procedure, bowlers can also notify us if they will be returning for the upcoming season and if there are any changes to their teams. We plan to use this system throughout the bowling season to notify bowlers of events related specifically to their league such as meetings and upcoming position rounds.

The bowling department recently held the annual meeting for all league officers. The officers were informed of any changes regarding RCSC policies, bowling policies and league contract changes. Also in attendance were representatives of the Metro Phoenix USBC and the Sun City Bowling Association who informed the officers of any rule changes for the USBC Certified leagues. All RCSC leagues are contracted for a period of thirty-two to thirty-six weeks. The contracts guarantee the league price for the season and also protect RCSC with regard to absent and vacant bowlers. The league contract also specifies what RCSC’s obligations are to the league along with the league obligations to RCSC.

Cardholder Services:

Payments on past due assessments were at an increased rate of 14.6% of past due balances. Unfortunately, this increase in past due payments correlates to an increase in overall past due assessment balances that has been occurring for the past four months. Past due assessments have increased by 9.6% since the beginning of the year. Total accounts receivable decreased by 2.2% in July but is still up 5.6% from the beginning of the year. Over 90 day receivables have decreased 2% since the beginning of the year while all other categories have shown increases. June assessments went 30 days past due at an increased 8.9% rate and May assessments went 60 days past due at an increased 4.1% rate.
Payments from our third-party collections firm totaled $21,487 in July with a year to date total of $102,897. Payments in 2017 are approximately 69% of the 2016 year to date total.

Cardholder acceptance and use of the RCSC Web Portal continues to be strong. Payments made by Cardholders through the online RCSC Web Portal totaled $102,241 from 225 property owners. Year to date web portal payments total $742,198 from 1,641 property owners.

In July, property transfer related balances increased by 3% and lender owned related balances increased by 64%. Outstanding balances related to property transfers represent approximately 53% of all receivables and past due balances. At the end of July, trustee sale notices on Sun City properties ended at 53 and properties owned by lending institutions at twelve.

Human Resources:

During the past month, Human Resources has been involved in annual compliance requirements including the completion and filing of forms and responding to information requests. In compliance with the Affordable Care Act, Human Resources submitted information to BlueCross/BlueShield, RCSC’s employee medical insurance provider, to determine the medical loss ratio for the upcoming renewal.

RCSC’s auditors, PKF, are in process of the annual audit of the employees’ 401(k) Plan. We are assisting in providing requested information to assure our plan is in compliance. A copy of PKF’s audit document will accompany our annual required filing of IRS Form 5500 which includes reporting on RCSC’s Employee Benefit Plans (medical, dental, life, and short and long term disability insurance plans).
Of the 375 individuals on staff, 248 (66%) are residents of Sun City AZ, which leaves 127 (34%) residing in surrounding communities.

Member Services:

Our annual dive-in movie was held on Saturday, August 12 and it was hot and humid. The ice cream went down easy and the water was soothing as storms started brewing all around. Staff continually watched the weather forecast as the storms stayed at bay, until it crossed to the south of Lake Pleasant and it was quickly upon us with gusty winds. Unfortunately, we had to end the movie just before the climatic end! Many thanks to volunteers that helped us hold the big inflatable screen down to keep it from sailing in the wind. A great time was still had by all and by the way, at the end of the movie…Willie was free!

Come join us for Casino Night on Saturday, September 9 from 4pm to 7:30pm. Please note a change to this year’s program: alcohol will not be served at this event. Therefore, you are welcome to bring your own. We will have hot dogs, chips and bottled water available for purchase at $3.00 per meal. You must have your RCSC Member or Privilege card on your person at this free event for admittance, as key fobs are not accepted.

Be sure to check the current Sun Views for information regarding the 2018 winter/spring Sundial ticketed concert series. Season Tickets go on sale Wednesday, November 1, 2017 to RCSC Cardholders only, throughout the month of November. The line-up can also be found on our website at under the Recreation tab. Stay tuned for more information about these great shows coming to Sun City AZ!

The fall Sun Bowl concert series kicks off on Sunday, September 24 with The 8 Tracks Dance Band. This is a “sure to have the crowd on their feet” type of band, so please join us. We will again have gourmet food vendors at Sun Bowl shows for your dining pleasure, so come early and get a great spot.


For those who may not be aware, the monthly management reports are available on our website under the RCSC 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!