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, 2015 was $10,151,176 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, 2015, PIF had a balance of $3,277,686 plus $573,472 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 July month end.
We have completed July 2015 well within our operating and capital budget year-to-date. Matter of fact, every division has a net operating positive variance from budget.
Investment Report 2nd Quarter 2015:
RCSC’s Investment Policy (Board Policy 33) is stringent in its requirements with the priority of investment objectives to be placed in this order: 1) safety, 2) liquidity, and 3) yield.
At the end of the second quarter, $2,470,461.70 of the $2.5M unrestricted cash reserve has been invested in various FDIC insured certificates of deposit.
As of June 30, 2015, RCSC had invested $4,960,798.56 of the $5,000,044 in the restricted capital reserve in various FDIC insured certificates of deposit.
Bowling:
The bowling department recently confirmed two additional tournaments for RCSC bowling centers. The Metro Phoenix USBC Valley of the Sun Senior tournament will be hosted by Lakeview Lanes and Bell Lanes on the weekend of October 24, 2015. The Metro Phoenix USBC Senior Open Championship will be hosted by Lakeview Lanes and Bell Lanes on the weekend of January 16, 2016. These types of tournaments offer us the opportunity to showcase Sun City and the RCSC bowling centers in addition to producing additional income, which helps keep cardholder prices low and competitive.
The final summer bowling tournament will be held on September 27, 2015 at Bell Lanes. The tournament is a scotch doubles tournament and all bowlers are welcome whether USBC certified or not.
Cardholder Services:
Payments on past due assessments continued strong in July and were 25% higher than the average for the prior 12 months. Overall past due assessments offset the increase in June and decreased in July by 2.5%. The increase in Over 30 day balances in June flowed through to Over 60 day balances in July. The 30 Day past due rate has crept up and was greater than the 12 month average for the past year. Year to date payments from our third party collections firm are $68,806.
Total accounts receivable decreased slightly in July by 1.0% with the most significant change being the flow of balances from Over 30 Days past due to Over 60 Days past due. Also noteworthy, the Over 90 Day past due balances are down 12% from the beginning of the year and are at its lowest level since September 2013. In July property transfer related balances increased by 4% and lender owned related balances increased by 27%. The balance flow for
these two categories has bounced the past several months showing the unpredictable nature of these types of balances. Outstanding balances related to property transfers now represents 51% of all receivables due and down to 48% of past due balances.
Payments made by Cardholders through the online RCSC Web Portal in July totaled $52,753. Year to date payments through the web portal are $425,621 and represent 3.4% of total payments.
Trustee sale notices on Sun City properties increased to 47 properties at the end of July. The number of properties owned by lending institutions increased as well in July and is now at 39 properties.
Preservation and Improvement Fees collected in July were $573,472, which is $273,472 over the amount budgeted. Year to date PIF fees are $4,166,520 which is $1,625,520, or 64%, 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 planned projects as we remain debt free.
A reminder that the Cardholder Services and Member Services offices have been relocated to Social Halls 2 and 3 on the second floor at Lakeview Center while the office space for these areas is being renovated.
Human Resources:
Renewal of employee benefit plans is fast approaching for RCSC. In preparation, we met with our Willis brokers last week regarding renewal of Medical, Dental, Life, and Long & Short Term Disability Plans.
We were informed that we have 35 large medical insurance claims during this year with 6 of those being over $50k. Final numbers are not yet available since renewal notices are not provided until October 1st. We are expecting a more than normal increase in medical premiums and will be looking for ways to make this affordable for employees as well as RCSC during the negotiation process. Medical coverage has been provided by BCBS for several years and we have been satisfied with the coverage and the service provided.
During the renewal meeting, a decision was made to place the dental coverage out for bid this year due to some service deficiencies.
When our benefit plans have been finalized for 2016, we will hold informational open enrollment meetings for all eligible employees. We have made the decision to continue our Wellness Program through Biometric Screenings. The intent of the program is to raise each individual’s awareness of his/her own health status with the long term goal of a healthier workforce which impacts medical premiums.
Group medical plans must cover essential health benefits and meet actuarial value requirements and be rated according to the Affordable Care Act rating methodology. BCBSAZ has been capturing this information annually in renewal paperwork and requires each employer to complete a group size questionnaire. RCSC has provided this information for the 2016 renewal.
Member Services:
Approximately 300 people were able to join us on Saturday, August 15th for our annual dive-in movie poolside at Mountain View. We enjoyed ice cream with all the fixin’s!
Be sure to join us on Saturday, September 19th, from 4 to 8pm at Sundial Auditorium for Casino Night. You will receive $500 in play money when you arrive. Try your luck on the various tables with Black Jack, Poker, Roulette, Pai Gow, Craps, War and 3 Card Poker. Beer, wine and Bloody Mary’s will be sold, therefore no outside alcohol can be allowed at this event. Be sure to bring your RCSC Photo Member/Privilege card as admittance will not be granted to this event without it (key fobs are not accepted).
There are still tickets available for The One Hit Wonderfuls. Come hear all the hits that topped the charts and put many of these performers on the map. Tickets are $13 and are available at the Clubs Office, which is currently located in Social Hall #2, on the second level of the Lakeview Recreation Center.
Would you believe the fall Sun Bowl series kicks off Sunday, September 27th at 7:00pm? The original Tokens will perform their chart topping hit “The Lion Sleeps Tonight,” which sold over 15 million copies world-wide!
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 1466, and for your personal preference, there will be a choice of theatre seating or table seating. Gourmet food trucks will be available starting an hour and a half before the show. 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. Imagine no more waiting in long lines for doors to open.
If you’re not sure about attending every show, individual show tickets will be available December 1st to RCSC Cardholders and Non-Cardholders at the Clubs Office, which will also include reserved seating.
The Member Services/Clubs office has been relocated to Lakeview Social Hall #2 on the second level of the Lakeview Recreation Center. The original office space is being renovated so we can serve you more effectively. 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 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!