by Jan Ek
Financial Report:
We have ended the first quarter of 2015 within our operating and capital budget. All divisions, excluding golf, have met their operating and expense goals. The golf division has suffered a double whammy, as the golf revenues are $50k short of budget, and an issue that occurred with one of RCSC’s wells has created a $96k negative variance from budget in repairs and maintenance in the golf division. There is potential that some of this additional expense may be covered by insurance, however, since some of the damage may be the fault of another company it may take some time to settle this claim. Despite these two big hits to the golf division of almost $150k negative variance from budget, overall the division was able to recover a great deal with only a $79k negative variance in net operating excess.
Cardholder Services:
Payments on past due assessments increased in March compared with February. Overall past due assessments still increased slightly in March. February billings went past due at an increased rate of 4.8% and January balances went 60 days past due at a rate of 2.0%. Both of these rates continue to be well below the annual averages for these balances. Year to date payments from our third party collections firm are $30,883.
Total accounts receivable decreased in March by just under 2%. In March property transfer related balances decreased by 7% and lender owned related balances decreased by 24%. Outstanding balances related to property transfers now represent 52% of all receivables due and past due balances.
Payments made by Cardholders through the online RCSC Cardholder Login (Web Portal) continued strong in March and totaled $75,927. This is the third month in a row that the total of online payments has increased to a new high. The online payment process is fully integrated with payments made through the web portal being posted to Cardholder accounts immediately.
We are anticipating an update to the RCSC Web Portal platform in May that will simplify the payment process and allow any property owner to make the payment for the balance due on the property. This update will also include other features requested from cardholders and includes, to name a few: the ability to change contact information, improved details display, reporting for center visits and golf rounds, and transaction detail visibility/reporting for account balances. Cardholder feedback has been important to the update process and we are looking forward to the enhancements to this service.
Trustee sale notices on Sun City properties remained steady at 46 properties at the end of March. The number of properties owned by lending institutions decreased in March and is now at 36 properties.
Preservation and Improvement Fees collected in March were $699,100, which is $291,100 over the amount budgeted. Year-to-date PIF fees are $1,646,100 which is $638,100 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.
Bowling:
On April 20, 2015 Lane Analytics began the task of mapping the lanes at both RCSC bowling centers. Lane mapping is a procedure in which the bowling lanes are measured for depressions, crowns and levelness for the entire length and width of the bowling lane. Seven hundred forty-four measurements are taken on each lane (this is almost seventy times the number of measurements taken during the annual inspection performed by the United States Bowling Congress). It has been proven that the flatter the playing surface, the more consistent lanes will play from lane to lane and day to day. Once the lanes have been mapped, Lane Analytics will begin the process of leveling the lanes ensuring that they are flat and secure. We expect this procedure will not only prolong the life of the lane, we expect it will produce higher scores from all bowlers. The cost of the procedure is $27,600 ($690.00 per lane).
An article has been posted on the RCSC web site under Bowling News which details the procedure.
Human Resources:
As fiduciary of the RCSC’s Employees 401(k) Plan, we have a responsibility to provide due diligence which includes reviewing the Plan and investment performance periodically to assure that investors in the Plan receive the best possible return on their investments. In 2014 we began a plan review and after several months of research of other plans, other providers and obtaining bids were able to enhance our plan. In March 2015, we announced to the employees changes to the Plan that offer increased flexibility and greater convenience in managing their retirement plan accounts including a better return on investments. We are in the process of transitioning the plan investments, trustee, and recordkeeping services to Fidelity Investments.
Member Services:
The last Sun Bowl show for the month of March was interesting and fun. The scheduled band Soul Solution unfortunately did not make it to the Sun Bowl as they broke down on the road outside Phoenix. However we made the best of the night and welcomed Sun City resident Ron West to the stage. He played DJ for the evening as about 1,000 members stayed, danced, ate and enjoyed their neighbors’ company.
On Saturday, April 4th, the Sun Bowl was all about the kids. Over 3,000 eggs were stuffed with candy and prizes, as three different age groups competed to find them. Mrs. Easter Bunny and Mrs. Duck took pictures with the kids and did some face painting. A full petting zoo with baby chicks, ducks, rabbits, guinea pigs and baby goats were enjoyed, along with pony rides provided by D Bar T Stables.
Easter morning at the Sun Bowl, United Church of Sun City hosted the Sunrise Service. The service, the worship choir and the morning were absolutely beautiful. Praise and worship rang through the air and communion was offered to approximately 500 in attendance.
On Easter evening we were back at the Sun Bowl with Neon Circus, a tribute to country singers Brooks and Dunn. The dance floor was filled all night as RCSC Cardholders just couldn’t get enough of “Boot Scootin’ and Boogie.”
The Sun City Concert Band returned along with the Women’s Chorus on April 8th to the Sun Bowl. Although the weather could have cooperated better, those who brought jackets and blankets were very grateful to hear the voices and the instruments dance in the air. It was a wonderful performance!
Believe it or not, we are only up to the second Sunday of the month! “Time in a Bottle,” a tribute to Jim Croce, Carol King, James Taylor and Dan Fogelberg, graced our Sun Bowl stage on the 12th. What nostalgic night of memories this show provided!
Unfortunately on April 19th, due to circumstances beyond the band’s control, the 56’ Rock and Roll Band had to cancel at the last minute and it was too late to put another show in as a replacement.
Finally, we closed the month out on the 26th with the most successful TAD Productions show, “ABBA FAB.” The sensational lineup of stellar musicians brought down the house with an ABBA journey. They performed hit after hit, thrilling a packed house of about 7,000. It was a spectacular way to end the month.
There will be two final Sun Bowl 7pm shows in May. Due to medical reasons, it is unfortunate that Revisiting the Orbison Years will be unable to perform. We are happy to announce that The Coral Paradise Band will bring a touch of the Caribbean to Sun City AZ with this Jimmy Buffett Tribute on the 3rd. And we’ll finish off the 2016 Spring Sun Bowl season with one of the best dance bands ever and an all time Sun City favorite – The RealTones – on May 10th!
We hope you plan to begin your Mother’s Day on the Patio at Lakeview Recreation Center, where we will be catering a lovely Mother’s Day brunch. Tickets for this very special event are $25 per person which includes tax and gratuity. Tickets are on sale now at the Clubs office at Lakeview Center. Stop by and reserve your table today.
In an effort to address concerns expressed by RCSC Cardholders about the increasing attendance by non-residents at free RCSC events, the Board of Directors has requested that we begin implementing changes to further enforce the RCSC Cardholders and their escorted guests only policy. Therefore, it is imperative to start carrying your photo RCSC Member or Privilege Card, as we reserve the right to ask to see your card at any free RCSC event at the Sun Bowl. If your card cannot be produced in order to prove you are a RCSC Cardholder, you may be asked to move or leave the event. We will not allow non-residents to displace RCSC Cardholders. Beginning this summer, RCSC Cardholders will be required to present either a Member or a Privilege Card (with photo) prior to entry at any non-ticketed (free) event at the Sundial Center, and all guests must be with the Cardholder at the time of entry. Since free RCSC events are actually paid for by RCSC Cardholders, it is important to ensure that our residents are able to enjoy the entertainment Sun City AZ is proud to offer.
For details about upcoming events and entertainment please refer to our newsletter the SunViews, our electronic signs, online at www.suncityaz.org under the Recreation Centers and in our weekly email blast titled “Your Sun City AZ Week.” If you are not receiving the SunViews inside a free edition of the Daily News-Sun in your driveway on the last Thursday each month, please contact the newspaper for delivery, or if you prefer, you can always pick one up at any one of our centers. 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!