by Jan Ek
Financial Report:
Since there is no monthly Board meeting in the month of July, I will include the Treasurer’s report information in my monthly report. The balance of unrestricted funds as of June 30, 2015 was $10,296,509 which includes a $2.5M cash reserve. Restricted funds include the Preservation and Improvement Fund (“PIF”) and the Capital Reserve Fund. As of June 30, 2015, PIF had a balance of $3,277,686 plus $702,200 collected in June that was transferred into the PIF account the first part of July 2015. The Capital Reserve Fund had a balance of $5,000,044 as of June month end.
We have completed our second quarter well within our operating and capital budget year-to-date. Matter of fact, every division has a net operating positive variance from budget.
Bowling:
Monthly summer No-Tap bowling tournaments are held the last Sunday of each month and end the last Sunday of September with a Scotch Doubles tournament. The tournament is being held at Bell Lanes and all bowlers are welcome whether USBC certified or not.
Bowling league secretaries and presidents are essential to league operations; communication with the bowling centers is also very important. On August 20, 2015 the Director of Bowling Operations, the bowling center supervisors and the representatives of USBC will meet with all RCSC league presidents and secretaries to discuss any RCSC policy changes and USBC rule changes.
Starting September 20, 2015 RCSC Bowling Centers will host a monthly Century Doubles Tournament. The tournament is unique in that the doubles partners ages must add up to 100 years old or older in order participate. The tournament is scheduled to bowl every month until August 2016.
Cardholder Services:
Payments on past due assessments increased in June and were 20% higher than the average for the prior 12 months. Overall past due assessments increased in June by 2.5%. This is most attributable to May billings that went past due at a higher rate of 6.6% and April balances that went 60 days past due at a higher rate of 3.2%. In June the largest increase was seen in the Over 30 Day balances while the Over 90 Day balances were the lowest since November 2013. Year to date payments from our third party collections firm are $57,499.
Total accounts receivable decreased in June by 3.5% with the most significant change being the flow of balances from Current to Over 30 Days past due. In June property transfer related balances decreased by 8% and lender owned related balances decreased by over 27%. This offset the increases in May. Outstanding balances related to property transfers continue to represent 50% of all receivables due and past due balances.
Payments made by Cardholders through the online RCSC Web Portal in June totaled $58,507. Year to date payments made through the web portal are $372,868 and represent 3.4% of total payments. This is $111,916 higher in web portal payments than the same period in 2014, as well as a marginal increase of 1% in the percentage of all payments. We anticipate the use of the web portal to make annual property assessment payments to continue to increase as more cardholders become familiar with this online resource.
Trustee sale notices on Sun City properties reduced slightly down to 43 properties at the end of June. The number of properties owned by lending institutions decreased as well in June and is now at 33 properties.
Preservation and Improvement Fees collected in June were $702,200, which is $324,200 over the amount budgeted. Year to date PIF fees are $3,593,048 which is $1,352,048, or 60%, over budget for the year. Again a reminder that we intentionally budget PIF income very conservatively to assure that we have the cash on hand for any planned project as we remain debt free.
Human Resources:
Human Resources (HR) stays informed on proposed legislative changes to labor laws in order for RCSC to plan for and comply with any changes that do occur. The Department of Labor (DOL) has announced proposed changes to the white-collar overtime exemptions under the Fair Labor Standards Act (FLSA). If enacted, these changes will significantly impact employers.
Currently, for a position to be Exempt from the Overtime provisions of the FLSA it must meet 3 tests:
a. The fixed salary test – same salary payroll period after payroll period regardless of hours worked;
b. The salary level test – at least $455/week ($23,660/year); and,
c. The job duties test – duties within the Executive, Administrative, Professional, Outside Sales, or Computer-related exemptions.
The only announced change is to the salary level test – increasing the level from $455/week to $970/week ($50,440/year) in 2016. However, the DOL is asking for comments about possible changes to the job duties test – changes that could further restrict which jobs are exempt.
There is no exemption for non-profit organizations under the FLSA or in the proposed rule. Thus, the proposed rule may impact non-profit organizations having an annual dollar volume of sales or business done of at least $500,000. In determining coverage, only activities performed for a business purpose are considered and not charitable, religious, educational, or similar activities.
The DOL encourages interested parties to participate in the rulemaking process by submitting written comments. A large majority of employers are responding to this request through their HR Department.
Member Services:
The 37th Annual Ring That Bell Ceremony was inspirational to say the least. The Sun City Posse proudly presented the colors, followed by Pastor McClain’s opening prayer. The Sun City Fire Fighters led us in the pledge of allegiance, and as Mike Lindquist as Uncle Sam began the program, we were already on the edge of our seats. We were treated to a 30-minute RCSC video which had us mesmerized while we learned the fates of the signers of the Declaration of Independence. Many cried when they saw, in color, what the brave men, women and families sacrificed to give us our freedom. Then everyone in the room proudly stood with their neighbors and sang in unison with the video, “Proud to Be An American.” What a touching way to begin this wonderful holiday of freedom! It didn’t end there. We grilled over 750 hotdogs and served a free lunch while Sun City residents gave generously to benefit this year’s RCSC Management Team’s selected recipient of their annual fundraising efforts…our Sun City Fire Department. We are proud to say that $1,176.61 was donated. We finished the afternoon with games, prizes and dancing. Thank you again for getting involved, participating and enjoying all that we do for RCSC’s most valued asset…you, our cardholders!
On July 15 in the Sundial Auditorium, approximately 850 people danced to the sounds of The Main Event. Our next happening will be the Dive-In Movie and Ice Cream Social at Mountain View Pool on Saturday, August 15 at 6pm. Be sure to bring your photo RCSC Membership Card.
In our efforts to improve customer service and better accommodate Cardholder expectations, RCSC is pleased to announce that all seating at 2016 Sundial ticketed shows will be reserved. We will limit seats to 1,500, and for your convenience, every seat will be at a table. You may bring drinks and snacks or purchase something from the gourmet food trucks. Season tickets, which will be available from November 2 to November 30, are being sold to RCSC Cardholders only for the unbelievable price of $154. That is only $14 for each show (11 shows total). Season ticket holders will have the same seat guaranteed for every show, and as an added incentive, you’ll also have the same reserved seat for the five free events that take place in the Sundial Auditorium during the year, including the ever popular Dancing with the Sun City Stars and the Christmas Extravaganza. Imagine no more waiting in long lines at every show for doors to open; being a season ticket holder guarantees that your seat is reserved and waiting for you to arrive.
We understand that all Cardholders may not be able to attend every show. Therefore season tickets (including the free events) are transferrable to others if you are unable to attend one of the planned events. Please watch the SunViews, bulletin boards and TV monitors in each facility for the 2016 lineup.
During the months of August, September and October, the Member Services/Clubs offices will be relocated to Lakeview Social Hall #2 on the 2nd level of the building. The original office space is being renovated so we can serve you more efficiently. Please understand that we are still available for all services during this time. However, club copies may take a few days turnaround time so clubs have been asked to plan accordingly. All current contact information such as email addresses and phone numbers will remain the same. Thank you in advance for your cooperation and patience.
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!
