by Jan Ek
Financial Report:
Since there is not a monthly Board meeting in the month of August, I will include the Treasurer’s report information in my monthly report. The balance of unrestricted funds as of July 31, 2013 was $10,387,144 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, 2013, PIF had a balance of $12,782,270 plus $519,000 collected in July that was transferred into the PIF account the first part of August 2013. The Capital Reserve Fund had a balance of $1,000,044 as of July month end.
All divisions are within their year-to-date gross income budget excluding the golf division, which was $150k under its budgeted y-t-d gross income, a $15k increase in negative variance from June month end financials. All divisions are under budget for their wages, taxes and benefits and general operating expenses y-t-d. As of July 31, 2013 we have spent $1,033,382 less than budget in repairs and maintenance y-t-d, however, as I have explained many times previously, this is to be expected as project completion runs behind budget to ensure that sufficient funds are available. It is important to recognize that this $1M+ positive variance will not remain as projects are finished. Overall the corporation has operated within its budget for the 2013 fiscal year.
Bowling Centers:
In August, bowling management met with all league Secretaries and Presidents. Director of Bowling Randy Johnson updated league officers on policy or procedural changes. Representatives from the Metro Phoenix USBC also attended and provided awards and rule updates.
Leagues are coming in stronger than originally anticipated. The Sun City Scratch Classic league increased from thirteen teams to twenty-two teams requiring them to swap bowling centers with a smaller league. The Thursday night Sun City Scratch Classic league is becoming one of the most elite leagues in the Metro Phoenix area. Many of the bowlers on the league average over 230. Several of the bowlers are also members of the Professional Bowlers Association. We are expecting several high games and series during the season, so if you are in the area of Lakeview Lanes next Thursday, stop in and see some serious bowling.
Cardholder Services:
The payments on past due assessments fell in July and were consistent with monthly averages over the past year. June billings went past due at a rate of 7.2%, and also are right on the monthly average rate. June balances went over 60 days past due at monthly rate of 5.2%, which is 13% above average. Outstanding balances related to property transfers increased by just over 5% in July and represent 53% of all receivables due.
Trustee sale notices on Sun City properties reduced again to 50 for the end of July. The number of properties owned by lending institutions remained steady at 87 this month.
The Preservation and Improvement Fees collected in June were $519,000. Year to date PIF fees are $4,227,440, which is $1.7M over budget year-to date. PIF budget is always done very conservatively to assure that cash funds are available for all budgeted projects.
Human Resources:
RCSC and other employers in Arizona are concerned about the rising cost of Workers’ Compensation insurance and carriers providing coverage work closely with employers to control claim costs. Effective loss management and loss control practices rely on the immediate notification of claims. As a result, RCSC employees are trained to report any work related injuries/illnesses immediately to their supervisors and the HR department so claims management begins immediately as well. Year-to-date we have had a total of seven reported claims with three being closed and four remaining open. Medical costs of $32,560 and lost time wages of $5,743 have been paid to date. Lost time wages have been kept to a minimum due to RCSC’s return to work/light duty program and is an important source in controlling costs.
On July 2, 2013, the Treasury Department and the White House announced in separate blog posts that the Pay or Play Rule (also called Employer Shared Responsibility) is delayed for one year. The surprise announcement was extremely welcome news for employers which had been working quickly to come into compliance. With the delay, the Rule will now be effective in 2015.
In summary the Rule requires employers with 50 or more full-time-equivalent employees to provide acceptable health plan coverage or face a tax penalty. The blog post states that the delay was needed to coordinate the Rule’s penalties and requirements with additional reporting rules. No guidance has yet been issued and we continue to watch this legislation.
As in 2011, Aetna was required to rebate part of the premiums it received in 2012 because they failed to meet the “Medical Loss Ratio” standard of spending at least 85% of the premiums on health care services. Early in July, RCSC received a rebate check from Aetna for the calendar year 2012 in the amount of $4,132.89. The funds were allocated between the RCSC and the employees who were covered by the health insurance on which the rebate was issued, based on the respective proportion of the premium amounts paid by each. Employees received their share of the rebate in checks issued Friday, August 30, 2013.
On January 1, 2013, RCSC changed health insurance carriers from Aetna to BlueCross/ BlueShield.
Events & Entertainment:
The Fourever Tops Show was incredible! It was everything it was promised to be… a full Las Vegas feel. Thank you to Rhino Staging and Allen Kleinhans, RCSC’s sound/light technician who did a wonderful job operating the lights which added such flair to the show.
The Ice Cream Social featuring Mark Baker and his lovely daughter, Caitlin Ramlall, was fantastic! Not only did Mark woo the crowd with classics by Neil Diamond, John Denver, George Strait and Marty Robbins to name a few, he sounded just like them. A very special treat for the show was Mark’s daughter, Caitlin, who sang “My Heart Will Go On” by Celine Dion. She also did “You Don’t Bring Me Flowers” duet with her father and they brought the house down. Caitlin’s performance brought people to tears as she received a standing ovation each time she sang. What an outstanding show with over 900 in attendance and we loved seeing see how everyone enjoyed themselves.
A new free show for RCSC Cardholders has been added to our line-up. On September 25, 2013, Mentalist Mark Stone will perform at Sundial Auditorium at 7:00pm food trucks onsite 1½ hours prior. Mark’s show “MENTALMANIA” is the funniest mindreading and E.S.P. show in America today. Mark never fails to astound audience members with his ability to read minds, make predictions, and “see” with his fingertips while blindfolded. He leaves audiences shaking their heads in disbelief when he demonstrates super memory, clairvoyance, and telekinesis. Not only does Mark amaze everyone with his uncanny abilities, he keeps the audience laughing throughout the show. It’s a fun and thought-provoking entertainment experience.
Mark amazed Johnny Carson, Oprah and Regis Philbin when he appeared on their TV shows, and he promises to amaze you, too! His show is the most amazing and entertaining demonstration of mental gymnastics you’ll ever see!
The free Sun Bowl shows for RCSC Cardholders begin Sunday, September 29th, with the Nashville Road Show at 7:00pm. Come out and see the great improvements that have been made to the Sun Bowl, including the new “Food Court” that is now located behind the stage, between the restrooms by the rose garden. No more up and down the hill, with easy access for everyone!
WE’RE SEARCHING FOR SUN CITY’S BEST TALENT! The great American Talent Search is coming to SUN CITY.
We’re looking for singers, comedians, dancers and specialty acts. Auditions are for Sun City residents only and will be held Monday, September 23rd at 4pm, Saturday, October 5th at 10am and Wednesday, October 9th at 6pm. All auditions and performances will be at the Sundial Recreation Center.
Sun City Talent Search Preliminary Rounds begin October 16th at 7pm. There will be four preliminary rounds and the grand finale will be on November 13. One ticket for $13 will get you in to all five shows!! To register or buy a ticket, contact the Lakeview Club Office at 623-561-4660 or clubs@sunaz.com.
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.