by Jan Ek
Financial Report:
Since there is no 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, 2014 was $10,945,750 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, 2014, PIF had a balance of $10,941,404 plus $441,000 collected in July that was transferred into the PIF account the first part of August 2014. The Capital Reserve Fund had a balance of $1,500,044 as of June month end.
As is customary, we have completed July 2014 well within our operating and capital budget year-to-date. Matter of fact, every division has a net operating positive variance from budget, with the golf division potentially completing the year in a net operating excess position for the first time in my tenure and likely in decades. The negative variance from budget in the annual property assessments income is a budget timing issue which will be resolved by September month end. All divisions, excluding bowling, have positive budget variances in wages, taxes and benefits year-to-date. Overall, we continue to operate effectively and efficiently, while providing a great product for the residents of Sun City.
Cardholder Services:
Payments on past due assessments in July were reversed from June and were above the monthly average for the past year. June billings went past due at a rate of 6.2% and continue the trend of being below the rate for the same month the prior two years. May balances went 60 days past due at a rate of 3.2%. This is below the monthly average for the prior year, which reached the lowest level for the 60 days past due rate in the past three years.
Total accounts receivables increased by 3.8% in July. This increase is most attributable to the increase in accounts receivables related to property transfers which increased by over 12% in July. Current receivables, those not past due, for property transfer related balances increased by 90% in July due to a significant increase in property transfers this past month. Outstanding balances related to property transfers now represent 55% of all receivables due and 51% of past due balances.
Trustee sale notices on Sun City properties stayed steady at 49 properties at the end of July. The number of properties owned by lending institutions increased slightly in July and is now at 59 properties. Preservation and Improvement Fees (PIF) collected in July totaled $441,000, which is 47% more than budget. Year-to-date PIF income is $4,185,238, which is 65% over budget for the year. Remember that we intentionally budget PIF income very conservatively to assure that we have money available prior to the onset of any capital projects budgeted for PIF.
Human Resources:
H.R. has been notified that it is time again to restate the RCSC Employees 401(k) plan document. Every six years, the IRS requires that all defined contribution plans be updated and resubmitted to the IRS for review and approval.
General Manager Report by Jan Ek – August 2014 The current required restatement is referred to as the “PPA Restatement” after the largest piece of legislation contained in the new document and will incorporate previous amendments for:
- Final 415 regulations
- Pension Protection Act (PPA)
- Heroes Earnings Assistance and Tax Relief Act (HEART)
- Worker, Retiree and Employer Recovery Act (WRERA)
- Katrina Emergency Tax Relief Act (Ketra)
- Gulf Opportunity Zone Act (GOZone)
H.R. will be working with Pension Funds of Arizona beginning now and during 2015 to incorporate the amendments. Our goal is to have our documents restated before the end of 2015 even though the IRS deadline is April 2016.
This is also a perfect time for us to review the plan documents and the operation of the plan to determine if any changes should be made at the time the document is restated.
Member Services:
We had another record-breaking event at Mountain View pool and patio on Saturday, August 16th, when approximately 275 residents shared with us our Hand-Scooped Ice Cream Social and Dive-In Movie. The monsoon avoided us that night, and we had a great time socializing, swimming, eating ice cream with all the fixin’s and watching a baseball movie. It was a great way to spend a summer evening!
Our last free concert of the summer is on Wednesday, September 10th, at 7pm in the Sundial Auditorium featuring Tom Tayback and the Daddy O’s 50’s & 60’s Graffiti Gold Show! If you’re a fan of the Golden Oldies from the mid-50’s to the mid-60’s, you will love this authentic blast from the past!
Anticipation is growing for our first fall RCSC-sponsored event. On Saturday, September 20th, we are having our first annual Casino Night. There will be Craps, Roulette, Blackjack, Poker, Pai Gow and Let it Ride games. Gourmet food trucks will be on site 1½ hours before doors open. This is a free event for RCSC Cardholders and their invited guests at the Sundial Auditorium from 4:30pm to 7:30 pm. Everyone will receive $500 in free chips – “make it or break it” – that’s all you get…Good Luck!
Kicking off our Fall Sun Bowl Series on Sunday, September 28th, at 7pm are Kevin Sterner and Strait Country, back by popular demand. This concert showcases hit after hit from an amazing lineup of 60 number one songs and 83 top tens from this living legend, ”The King of Country Music,” GEORGE STRAIT!
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!