by Jan Ek
Financial Report:
We have ended 2014 well within our operating and capital budget. Here are some of the highlights of budget variances in 2014: large positive variances in income were sale of water credits ($184k), transfer fees ($334k) and golf division ($220k); we also had significant positive variances in wages, taxes and benefits in the golf and grounds division ($777k) primarily created by budgeting full benefits for each staff member in maintenance as we had no history to draw from with no previous employees in golf or grounds maintenance; and we actually had a negative variance in repairs and maintenance ($349k) which was to be expected as we caught up with previous years repair and maintenance projects. If you have attended the annual membership meetings in the past, you have heard me talk about how it works with repairs and maintenance projects in that we keep the money budgeted and therefore dedicated for these projects until the projects are completed or canceled, as we do with operating capital projects as well. This ensures that these needed projects are completed. With all of this being said, I think the most exciting financial news of all is that the Golf Division for the first time since 2000, ended the year in the black! And the success in the golf division led to a big positive variance ($44k) in gross income in the food service division which also came down to their bottom line. AND all of this was accomplished with the North golf course and snack shop closed! I have to tell you that I am really excited about where we are financially and physically, I don’t think there is another 55+ community out there that could compete with us in either category! And we are not done yet, we still have more to do and we will continue to keep our eye on keeping Sun City AZ unique in almost every sense – culturally, environmentally, socially and in value with exceptional recreational and social facilities.
Cardholder Services:
Payments on past due assessments were down again in December and well below the monthly average by 30%. As a result, past due assessments increased in December by 3%. November billings went past due at a rate of 5.5% and October balances went 60 days past due at a rate of 5.7%. The latter 60 day increase was the highest since October last year. For the past three years the 60 day rate for October has spiked well above other months of the year.
Total accounts receivables were relatively unchanged in December despite the lower past due balance payments. In December we saw a 2% decrease in property transfer related balances and a 6% increase in lender owned related invoices. Outstanding balances related to property transfers continue to represent 53% of all receivables due and past due balances.
Overall accounts receivables due at the end of 2014 increased by 1.7% compared to the end of 2013 balances. Past due balances increased by 9.7% over the end of 2013 with the over 90 day balances increasing the most. A significant area of increase has continued to be in the fees related to past due accounts. The increases in these areas over shadow the reduction in other areas. Compared to the end of 2013, the outstanding balances related to property transfers decreased by 19% although the fees related to past due balances increased in 2014.
In 2014 cardholders increased online payments over 2013 by 25% and over 2012 by 7%. Approximately 5% of payments were made online through the web portal in 2014. We hope to see this increase dramatically in 2015. If you do not have a Cardholder login, please make sure to get one as it not only gives you the opportunity to pay your assessments online, it allows you to vote in Board elections if you are eligible, book tee times and get email news alerts specifically chosen to fit your interests.
Trustee sale notices on Sun City properties increased slightly to 49 properties at the end of December. The number of properties owned by lending institutions decreased in December and is also now at 43 properties.
Preservation and Improvement Fees collected in December totaled $551,500 which is $275,500 over the amount budgeted. PIF fees collected in 2014 were $6,914,376 which is $2,978,376 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:
Courtesy of Columbia 300 (bowling equipment manufacturer) and the Bowling Division offered all RCSC league bowlers a chance to win a new bowling ball. The drawing was held on January 12, 2015 and the winner was Bill Diethart.
The annual New Year’s Eve party was held at Lakeview Lanes and over 160 bowlers attended. There were prizes, drawings and champagne was provided to all of the party goers to bring in the New Year. As always Fred Jones and the Sun City Bowling Association did an outstanding job organizing and sponsoring this event.
Human Resources:
Along with many other changes, the Occupational Safety and Health Act (OSHA) has brought changes to the standard annual requirement to post Form 300A injury and illness summary logs. It has also brought certain changes to the OSHA reporting requirements for major injuries and illnesses going forward. RCSC has been logging and posting the summary of the previous year’s injuries in employee work areas from February 1, through April 30 each year.
The revised OSHA rule modifies the types of injuries and illnesses that require reporting to the Agency. The newly revised rule retains the requirement to report workplace related fatalities within eight hours, it also adds the requirement to report individual work-related inpatient hospitalizations, amputations or losses of an eye within 24 hours. Under the new rule, RCSC reported a hospitalization early in January to the Agency. Previously reporting was only required for three or more employees injured in the same accident.
On another note, H.R. is in the process of working with the 401(k) plan administrator to complete the valuation for the 2014 calendar year in preparation for the annual audit that is required for filing the I.R.S. form 5500.
Member Services:
We have had record-breaking ticket sales for the 2015 concert series. We started the year off with Hot August Nights, a tribute to Neil Diamond. What a performance this was, with standing ovations, two encores and a sold-out concert attendance at the Sundial of 1500 people!
We did it again the following week as we brought back December ’63, a Frankie Valli tribute. Oh what a night… pun intended! Again we sold out, with 1500 in attendance at Sundial. This show delivered just what was promised, the best tribute band portraying Frankie Valli and the Jersey Boys!
The Comedy Magic of Dana Daniels was so fun and funny! Some laughed until they cried, especially when he took a one-hundred dollar bill from a member of the audience and turned it into bird seed.
We followed this event with our annual dynamic Discover Sun City AZ! Sun City AZ is amazing with its limitless opportunities and endless choices where a feeling of community is fostered through its clubs and special interest groups. The true value of Sun City AZ is in the secure feeling of living in a safe, inexpensive and beautiful active adult community designed around letting its residents choose from the broadest range of recreational and social facilities possible to enhance their well-being.
Be sure to mark your calendars for the Annual Membership Meeting Saturday, February 21st from 9am to 2pm at the Sundial Auditorium. If you can’t remember the date, remember it is always the third Saturday in February and be sure to bring your Member Card. Join us at 9am for registration and social time with free coffee and donuts. At 10am hear the highlights of 2014 and RCSC’s goals and objectives, along with our operating and capital budget for 2015. Then inspirational humorist Suzie Humphreys will have you rising to the occasion with all the vigor, enthusiasm and humor that living this wonder life demands! Enjoy a free lunch and attend the Annual Membership Meeting at 1:30pm. There will be give-aways and door prizes and you must be present to win. Take part in this great event and help shape our community!
And if this isn’t enough to keep you entertained, we have four fantastic shows lined up for you in February. We start the month off with Country Superstars, a tribute to Shania Twain and Tim McGraw on Wednesday, February 4th. The following Wednesday, the 11th, you will laugh again as we present one of the most talked about comedy shows on the circuit, The Spouse Whisperer. You will be stomping your boots and singing along when Nashville Gold takes the Sundial stage on February 18th. And last but certainly not least, treat yourself to a magical evening with a tribute to one of the greatest songstresses of our time, Barbra Streisand. With her style, grace and orchestra, Sharon Owens promises to take you on a journey through the Streisand Years. This is truly a classic diva performance that you won’t want to miss! Tickets are on sale at the Lakeview Clubs Office at $13 for RCSC Cardholders and $15 for the general public.
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 Angie Nelson, Controller recognition and a small token of our appreciation for her 10 years of service to the RCSC. Angie worked for us in the accounting department when I became the General Manager eight years ago, and all of the RCSC staff and Board spoke of how they preferred to deal with Angie if they needed to deal with accounting. It is this attitude of service that got Angie promoted to the Controller position. Thank you Angie for the past 10 years and I am trusting there will be many more years to come!
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!