By Jan Ek
Financial Report:
We have ended July 2012 well within our operating and capital budget year-to-date. All divisions have met their net operating budget prior to depreciation year-to-date. As has become customary, while repairs and maintenance are considerably under budget; that is strictly a timing issue whereby projects will be completed throughout the remainder of 2012 and most likely into 2013 as well which will use the budgeted monies for their completion. Overall operations have operated efficiently year-to-date.
Bowling Centers:
In February, I reported that Bowling Management was in discussion with a group of bowlers trying to organize a new league. Rules were finalized and the league started its inaugural season on August 23rd consisting of 14 four-person teams for a total of fifty-six new bowlers for Bell Lanes.
A league consisting of thirty-two bowlers was lost to the new Bowling Center in Surprise (Uptown Alley); the league was from Sun City Grand and relocated to the new center because of location.
The fall bowling season begins on Labor Day and looks very promising even with the loss of the Sun City Grand league. No price increase is expected for 2013.
Cardholder Services:
Payments made by property owners in outside collections totaled $14,467 in June and July with payments from 36 property owners. During the last 2 months our internal collector processed payments from past due property owners totaling $117,013 and property related transfer fees totaling $204,720. Both of these continued a downward trend from May.
Payments on past due balances scaled back to average from May’s high. May and June billings went past due at a 7.8% rate, higher than last month but just under the monthly average. The rate for April and May balances going over 60 days past due was at 4.0%, which is also below the average rate for the last year. At the end of July, outstanding balances related to property transfers increased by 5.7% and now represent 53% of receivables due and 50% of past due balances. The net accounts receivable change was 1.5% for June and July indicating that new property transfers outpaced payments.
Property trustee sale notices on Sun City properties decreased to 93 at the end of July while the number of bank owned properties stayed flat at 73 properties owned by lenders.
The Preservation and Improvement Fees collected in June and July decreased, as anticipated, to $1,044,000 for the 2 months. Year to date PIF fees are $1,772,275, or 70%, over budget.
At the end of July we converted the facilities attendants at our Centers to the same program used in Cardholder Services and the golf courses. This allows us to have a single view of cardholders and provide consistent servicing throughout our facilities. Our facilities attendants will now have real time up to date information rather than relying on a nightly updating process.
Human Resources:
We continue to follow legislation regarding the Patient Protection and Affordable Care Act (PPACA) which requires employers to meet implementation datelines. For taxable years beginning after December 31, 2012, employers are required to withhold additional amounts from wages of high-earning employees which includes an additional Medicare tax. The Act also requires employers to report on employees’ 2012 W-2 forms the cost of their group medical insurance coverage premiums, which must be provided to employees by January 31, 2013.
We are also preparing for the new participant-level disclosure rules that employers must provide for investment plans, such as the 401(k) Plan. This includes associated fees and expenses as well as investment performance charts.
As of July 1, 2012, RCSC purchased Worker’s Compensation insurance coverage with the Travelers Companies. The insurance provides coverage to employees who are injured or suffer a work related illness while on the job. The policy year runs until June 30, 2013. We are in the process of changing work related material, such as; labor law posters, safety manuals, and forms.
We have conducted a review of RCSC’s pay ranges and compensation plan. The Plan is reviewed periodically (no longer than every 3 years) and adjustments made where necessary.
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.