Financial Report:
RCSC has ended May 2012 well within its operating and capital budget. Year-to-date all divisions have exceeded their income budgets. Wages, payroll taxes and benefits are below budget year-to-date. As usual, while repairs and maintenance is considerably under budget year-to-date, that is strictly a timing issue, whereby those projects will be completed throughout the remainder of 2012 and most likely into 2013 as well. Both utilities and general operating expenses have also managed to come in under budget year-to-date. Overall operations have operated efficiently year-to-date.
Bowling Centers:
Now that the summer bowling season has arrived, maintenance on the bowling pinsetters has begun. The bowling mechanic’s have begun a maintenance program which includes cleaning, adjusting and rebuilding key components of the bowling pinsetters. Maintenance is expected to be completed by mid-August.
A new summer league began in May at Lakeview Lanes. The new league allows bowlers to experience several different lane conditions throughout the summer season. The league is also beneficial to the bowling centers because feedback is provided from the bowlers which will help the bowling centers make adjustments to provide a condition that is fair in regards to scoring for the upcoming fall bowling season.
Cardholder Services:
Payments made by property owners in outside collections continued to be low in May at $3,885 with payments from 18 property owners. During May our internal collector processed payments from past due property owners totaling $58,977 and property related transfer fees totaling $152,297. Both of these were down from the previous month.
Payments on past due balances in May continued the higher trend and past due assessment balances decreased by 5.85% during the month. The category with the highest collected amount was the over 30 day category and relates to the March balances that first went past due last month. The large April assessment billing total saw a lower percentage go past due at 6.5% of the invoiced amount. At the end of May, outstanding balances related to property transfers increased by 6.5% and now represent 51% of receivables due and 47% of past due balances. Between these two factors the net accounts receivable total did not change from April to May.
Property trustee sale notices on Sun City properties was increased by 16% in May and ended the month at 102 and may indicate a trend for increased foreclosures. The number of bank owned properties decreased again down to 74 properties owned by lenders. Based upon the increased trustee sale notices this is expected to increase in the coming months.
The Preservation and Improvement Fees collected in May dipped to $683,400 at 63% over budget. Year to date PIF fees are $1,406,275, or 75%, over budget.
Human Resources:
The Supreme Court is expected to announce a decision by the end of this month regarding the constitutionality of the national health care law passed in 2010. The constitutionality has been challenged by 26 states that argue the Federal government cannot require citizens to purchase health insurance and that the law infringes on state rights. Under the law, individuals who do not purchase health insurance will be penalized when filing federal income tax. The law is expected to affect how employers provide health insurance coverage to employees.
Whatever the Supreme Court decides some of the laws most popular elements will remain in place and have already been implemented by most health care plans. Two popular ones are allowing young adults as old as 26 to remain on their parents health plan and the elimination of denying coverage for pre-existing conditions. These changes have been implemented in the health plan coverage RCSC provides for full time employees.
Hiring continues at a steady pace for RCSC. Year to date we have filled 24 positions as they become available. With high unemployment, positions are easier to fill and we have realized a decrease in recruiting costs.
General:
For those who may not be aware, the monthly management reports are available on our website www.sunaz.com 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.
