by Jan Ek
Financial Report:
We have ended November 2014 well within our operating and capital budget year-to-date. While I realize I make that statement every month, the fact is there is no better statement that I could make because financially we are sound and in good shape. All divisions have a positive net operating variance from budget, excluding the Bowling Division, which has a small $3,485 negative variance year-to-date. With the bowling tournament income forthcoming in the December financial, it is possible that this small negative variance will be eliminated by year end. Nonetheless, we will, without a doubt, end 2014 with a positive variance from budget. As you will see in the motion for the 2015 budget today, these positive variances are used to reduce the increases in annual property assessment income needed to meet the upcoming operating and capital budget for 2015. While there will be a minimal increase ($6.00/per year/per property) in annual property assessments beginning February 1, 2015, the amount produced by this increase will only cover the lack of rent paid by Maricopa County for the Bell library. Therefore, any increased costs for utilities, repairs and maintenance, payroll and capital expenditures in 2015 will be covered by positive variances in prior year operations.
Cardholder Services:
Payments on past due assessments in November were below the monthly average for the year by 40%. As a result, past due assessments increased by over 2% in November. The timing of the Thanksgiving holiday caused our month end to be earlier this year and resulted in fewer days for payments. This had an impact on the total payments received in November. October billings went past due at a rate of 6.0% and September balances went 60 days past due at a rate of 3.1%. Both of these rates are below the monthly averages for the past 12 months.
Total accounts receivables increased by 3.6% in November. Even with the increase from last month, the balances for November are 4% lower than 2013. In November we saw a 1% increase in property transfer related balances and a 48% increase in lender owned related invoices, which offset last month’s drop. Outstanding balances related to property transfers represent 53% of all receivables due and past due balances.
Trustee sale notices on Sun City properties held steady at 46 properties at the end of November. The number of properties owned by lending institutions increased slightly in November and is also now at 46 properties.
Preservation and Improvement Fees collected in November totaled $491,938, which is $161,938 over the amount budgeted. Year-to-date PIF fees are $6,360,876 which is $2,700,876 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:
The Arizona State Senior Tournament was completed on December 7, 2014; the tournament produced approximately $8,000 in income.
The Arizona State Women’s Senior Tournament was completed on December 14, 2014 and produced approximately $2,500 in unbudgeted income. This year was the first year that a RCSC Bowling Center has hosted the Arizona State Senior Women’s Tournament.
The Metro Phoenix USBC Senior Tournament is scheduled for the weekend of January 10, 2015. The tournament will use both centers so lane availability will be limited during squad times.
Courtesy of Columbia 300 (bowling equipment manufacturer) the Bowling Department is offering all RCSC league bowlers that are RCSC Cardholders a chance to win a new bowling ball. Bowlers need to have their RCSC Membership card scanned at either bowling center to enter the drawing. There is no entry fee and the drawing will be held on January 12, 2015.
Human Resources:
In human resources we have been preparing for the many changes that will take place effective the first of January. In addition to working within a new budget, we will be implementing a newly revised pay plan that along with other changes incorporates an increase in the State of Arizona’s minimum wage to $8.05 per hour. Many more states will implement a state minimum wage in 2015 leaving very few operating at the federal level of $7.25 per hour.
RCSC’s employee benefit plans renew January 1, therefore we are holding open enrollment meetings and processing enrollment changes in the medical, dental, and life insurance plans, as well as the 401(k) and the unreimbursed medical plans.
Hiring continues with employee turnover remaining about the same as employees make life changes.
Member Services:
Our second annual Sun City’s got talent search has ended. There were 10 contestants that made it through to the Grand Finale’ on Monday, December 15. If you didn’t make the show, look for the name of the winners in January’s SunViews.
On Tuesday, December 9th, we hosted our Christmas Extravaganza as Johnny K & Kompany paid tribute to Johnny Mathis. We had a full house and provided complimentary hot cocoa and hot apple cider to all in attendance. What a perfect event to start off our holiday season!
Our last event of the year was on Friday, December 12th as the RCSC Management Team was host to our annual Sun City Holiday Celebration at Lakeview Recreation Center. The event started with a performance by the Aqua Suns Synchronized Swimmers, followed by the infamous Duck Races. There were pies walkin’ out of the Pie Walk as people lined up for their chance to win one of their very own. For the first time, the Hole-in-One shoot off went into Double Jeopardy, and the two fighting for the winning position were moved over to another hole to battle it out. Finally, the Money Tree was won by Ray Marmon and his wife Lorraine, with just a $5 donation. Ray and Lorraine said there was $540 on the tree, and it definitely was a blessing to them. The first thing they did with the money was to pay it forward. They chose a Christmas Angel from a tree at the mall, and they donated the actual tree to a family in need who did not have a tree for Christmas! What a fantastic story and display of Christmas Spirit! The evening ended once again with a fantastic boat parade. Thank you, Sun City residents, for supporting this wonderful event. The RCSC Management Team will be presenting its fund raising total to the Sun City Posse in the very near future.
Be sure to pick up your event and entertainment schedule as we start the new year off on Wednesday, January 7 with “Hot August Nights,” a tribute to Neil Diamond at the Sundial Auditorium!
For upcoming events and entertainment please refer to our newsletter the SunViews, our electronic signs, online at www.sunaz.com 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.
General:
It is with great pleasure that I present to Marion Krell, Director of Human Resources, recognition and a small token of our appreciation for her 25 years of service to the RCSC. I have worked directly with Marion for 8 of the past 25 years and I am thrilled and proud to call her a member of my Senior Management team! Thank you Marion for the past 25 years and here’s hoping for many more years to come!
Just want to take this time to wish each and every one of you a very Merry Christmas and Happy New Year!
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!