General Manager Report – July 2013

by Jan Ek

Financial Report:

Since there is no monthly Board meeting in the month of July, I will include the Treasurer’s report information in my monthly report. The balance of unrestricted funds as of June 30, 2013 was $11,830,569 which includes a $2.5M cash reserve. Restricted funds include the Preservation and Improvement Fund (“PIF”) and the Capital Reserve Fund. As of June 30, 2013, PIF had a balance of $12,247,984 plus $599,500 collected in June that was transferred into the PIF account the first part of July 2013. The Capital Reserve Fund had a balance of $1,000,044 as of June month end.

The corporation has operated within its budget for the 2013 fiscal year.

As expected, the three payrolls in May which pushed both the Food Service Division and Bowling Division into a negative variance from budget year-to-date at the end of May have experienced a correction in June, leaving both divisions in a positive variance from budget y-t-d as of June 30, 2013. While the Golf Division could not make up for its loss of revenue in the first quarter, the division has certainly held its own in the second quarter.

Bowling Centers:

The bowling staff is now in the process of recruiting league members for the fall season beginning in September. Most leagues seem to be coming back as strong as last year, however; some leagues have weakened. Di Tormanen the Bowling League Coordinator is working diligently to strengthen these leagues.

In August, bowling management will meet with all league Secretaries and Presidents. Director of Bowling Randy Johnson will make a presentation to the league officers and update them on any policy or procedural changes. Representatives from the Metro Phoenix USBC will also attend the meeting and provide updates of playing rules and USBC procedures.

There will be an increase in prices beginning September 2013. Costs will increase from $2.25 per game for Cardholders to $2.40 per game and costs for Guests will increase from $2.50 per game to $2.65 per game. Contracted leagues for the upcoming season will not be affected.

Bowling fees have not increased since 2008. During that period bowling lanes, overhead monitors and lower monitors were replaced; and, new carpet and new lane machines were installed at both centers. The cost of these upgrades was approximately $500,000, yet there was no price increase until now. Even with this price increase, RCSC still offers the best value in the metropolitan Phoenix area.

Cardholder Services:

The payments on past due assessments increased again in June and were 31% over monthly averages and were the highest in the past year. May billings went past due at a rate of 7.1%, down slightly from last month. April balances went over 60 days past due at the average rate of 3.9%, the lowest rate in the past year. Outstanding balances related to property transfers decreased just slightly in June and continue to represent half of all receivables due.

Trustee sale notices on Sun City properties reduced down to 58 for the end of June. The number of properties owned by lending institutions went down to 87 this month.

The Preservation and Improvement Fees collected in June were $599,500. Year to date PIF fees are $3,708,440.

Human Resources:

RCSC and other employers in Arizona are concerned about the rising cost of Workers’ Compensation insurance and carriers providing coverage work closely with employers to control claim costs. Effective loss management and loss control practices rely on the immediate notification of claims. As a result, RCSC employees are trained to report any work related injuries/illnesses immediately to their supervisors and the HR department’s management of claims begins immediately. Year to date we have had a total of seven reported claims with three being closed and four remaining open. Medical costs of $32,560 and lost time wages of $5,743 have been paid to date. Lost time wages have been kept to a minimum due to RCSC’s return to work/light duty program which is an important source in controlling costs.

On July 2, 2013, the Treasury Department and the White House announced in separate blog posts that the Pay or Play Rule (also called Employer Shared Responsibility) is delayed for one year. The surprise announcement was extremely welcome news for employers which had been working quickly to come into compliance. With the delay, the Rule will now be effective in 2015.

In summary the Rule requires employers with 50 or more full-time-equivalent employees to provide acceptable health plan coverage or face a tax penalty. The blog posts state that the delay was needed to coordinate the Rule’s penalties and requirements with additional reporting rules. No guidance has yet been issued and we continue to watch this legislation.

Events & Entertainment:

The Ring the Bell Ceremony was humbling to say the least. Over 300 were in attendance to not only be a part of this annual event, now in its 35th year, but to also pay tribute to the late Mr. Ray Mills. Mr. Mills honored us by being Sun City’s “Uncle Sam” for 18 years before he passed the hat on to Mike Lindquist the year prior to his death.

The Mills family was in attendance for the ceremony. Family members unveiled the “Ray Mills Memorial Bench”, which has been dedicated with the admiration of our entire community as something that will keep the spirit and ideals of this great American alive in our hearts for generations to come. The bench has been placed in the courtyard by the bell.

Immediately following the Ring the Bell Ceremony, we celebrated July 4th with an indoor picnic at the Bell Bowling Center. Residents and their guests enjoyed the fun-filled afternoon with free bowling, billiards & shuffleboard. Games were played and prizes were won. We also had drawings for four overnight trips at two valley casinos.

Food prepared by Memo’s Bistro was plentiful and free cake was given to all. The day wasn’t complete until residents and their guests danced the afternoon away. We heard comments such as…”What fun, I feel like a kid again,” “I haven’t bowled in over 30 years, forgot how much I enjoyed it” and “what a great way to get out of the heat, have fun, enjoy the company of others and make new friends.”

UPCOMING SHOWS & ENTERTAINMENT

WE’RE SEARCHING FOR SUN CITY’S BEST TALENT! The Great American Talent Search is coming to SUN CITY.

With Tempe, Chandler and Peoria already producing so much talent this year…we can’t wait to show them what SUN CITY has to offer! We’re looking for singers, comedians, dancers and specialty acts. Auditions are for Sun City residents only and will be held Monday, September 23rd at 4pm, Saturday, October 5th at 10 am and Wednesday, October 9th at 6pm. All auditions and performances will be at the Sundial Recreation Center.

Sun City Talent Search Preliminary Rounds begin October 16th at 7pm. There will be four Preliminary Rounds and the Grand Finale will be on November 13rd. One ticket for $13 will get you in to all five shows! Everyone is welcome to attend. Watch the SunViews for more details. To register or buy a ticket, contact the Lakeview Club Office.

Sundial:

Fourever Tops, Wednesday, August 21st, at 7pm ~ Tickets are $13 available at the Clubs Office at Lakeview and at the door. “Fourever Tops” is a self-contained high energy, choreographed show group specializing in the music of Motown. Definitely a show you must SEE!

An Evening with Mark Baker, Sunday, August 25th, at 7pm, ~ Free Show and Ice Cream. End the summer with an Ice Cream Social, featuring the wonderful performance of Mark Baker. Mark’s musical focus includes classics by Neil Diamond, Sinatra, John Denver, George Strait, Jimmy Buffet and Marty Robbins.

Sun Bowl Fall Shows:

Sun Bowl shows will resume Sunday, September 29th at 7pm with the Nashville Road Show; followed by That Kool Band, Lynn Anderson & Rollie Stevens, AZ Diamond ~ a Neil Diamond Tribute, ’56 ~ The 1950s Rock & Roll Review (these shows are at 6:30pm); and finally Strait Country (at 6pm) ~ A tribute to Country music’s living legend.

Tribute to our Veterans:

Sunday, November 10th at 2pm. I am pleased to announce that the final Sun Bowl show of the fall will be a “Tribute to our Veterans,” ~ Sandra Day O’Connor Color Guard will post the Colors; there will be performances from Centennial High School Choir, Bud Hesterman and John Huerta. Our key note speaker will be Secretary of State Ken Bennett and Dan Reed will perform Tapps. Gourmet Food trucks will be at your service as well. Come and share in this special event as you pay tribute to our Past, Present and Future Veterans!

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! We have forms available at the table in the back so you can sign up before you leave today.