By: Jan M. Ek
Financial Report:
As expected, we have ended 2011 well within our operating and capital budget. The fact is that we had more repair and maintenance projects, approximately $500,000, than we could complete with the Fairway project in process as well this year. These projects will be carried forward to 2012 and be completed from the funds budgeted in 2011.
The golf division has missed their net operating budget by $85,000, which considering the dynamics of failing wells and irrigation systems is acceptable and is made up by other savings within the operating budget. It is important to note that this is a $136,000 improvement over last year in the golf division, and with the additional savings obtained by a reduction of personnel in other divisions as a result of the golf maintenance contract, these savings are benefiting RCSC.
Bowling Centers:
Recently, the RCSC Board of Directors approved the purchase of two Kustodian Walker Sport lane conditioning machines for the RCSC Bowling Centers. The new machines, manufactured by Kegel Corporation, were put into service on January 25. While the conditioning technology remains the same, the new machines offer several new features such as battery powered operation, color touch screen interface, 30 conditioning patterns, the ability to move from lane to lane without operator intervention and most importantly the ability to keep the first one foot of the lane dry for customer safety.
Due to the automation of the machine, bowling will not be allowed between 4pm and 5pm daily while lanes are being conditioned. A schedule of lane availability can be viewed on the RCSC website at sunaz.com by clicking on the bowling tab and selecting a center.
Cardholder Services:
Payments made by property owners in outside collections totaled $9,615 in December with payments from 28 property owners. During December our internal collector processed payments from past due property owners totaling $43,705 and property related transfer fees totaling $126,444. The past due amount collected was on par for the monthly average this year while the transfer related fees were 25% below the monthly average for 2011. The total payments on past due balances was also off the 2011 high in November but was slightly higher than the monthly average collected.
Overall, accounts receivables due increased at the end of 2011 by 6.3% over the end of 2010 balances. Past due assessments increased $45,173.18, or 12.1%, over the end of 2010 but only represented a 1.7% increase as a percentage of all accounts receivables. Most notably this is due to a much higher pending receivables balance under 30 days outstanding than at the end of 2010. Pending property transfer fees declined from the end of 2010 and now represents 41.4% of outstanding receivables. The most significant area of accounts receivables increase are the fees related to past due accounts which increased by $39,101, or 23.4%, over the 2010 year end balances.
Property trustee sale notices on Sun City properties dipped again in December and now stand at 100. This is the lowest level in over a year for this statistic. Also in December the number of properties owned by lending institutions decreased to 100 – its lowest level in over a year as well.
The Preservation and Improvement Fees collected in December were $527,900, or 91%, over budget. For the end of the year the total Preservation and Improvement Fees collected were $5,672,780, or 44%, over budget.
Human Resources:
The IRS has increased the amount employers may pay their employees for business travel to 55½ cents per mile. RCSC will pay that amount to employees who must use their own private vehicle for business purposes and has revised company policy to reflect this change.
Employees whose hourly rate was below the new Arizona State minimum wage of $7.65 per hour effective January 1, 2012, have received an increase to that amount for any work performed as of that date and thereafter. Federal minimum wage remains at $7.25 per hour.
In 2011, 89 individuals were hired to fill vacant positions. Currently RCSC staff consists of 283 individuals; 205 part-time and 73 full-time. 217 or 77% are Sun City residents.
General:
For those who may not be aware, the monthly management reports are available on our website 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!