General Manager Report – March 2016

by Jan Ek

Financial Report:

We have completed February 2016 well within our operating and capital budget. Every division net operations year to date before depreciation is better than budget. One of the most frequently asked questions about our financial operations is how the photovoltaic (“PV”) solar systems have worked out.

There is a full article on the front page of the SunViews today, but as a matter of record all PV solar systems have been online, functioning and producing electricity as of September 2013. The weather obviously makes a considerable difference in the amount of energy used and produced, which is evident in the comparisons between 2014 and 2015. Nonetheless, these first full two years of PV solar production provides good information that our projections were sound.

In 2014, the PV solar produced 3,951,496 kWh of electricity at a value of $479,356.95 for the year. RCSC received $189,211.01 in APS rebates for a total savings of $668,567.96. The solar lease cost RCSC $578,283.00, for a net savings to RCSC of $90,284.96.

In 2015 the PV solar produced 3,783,354 kWh of electricity at a value of $483,182.61 for the year. RCSC received $181,404.78 in APS rebates for a total savings of $664,587.39. The solar lease cost remained the same at $578,283.00, for a net savings to RCSC of $86,304.39.

As electricity costs rise, the savings extended to RCSC with the production of electricity by the PV solar systems will also increase.

Bowling:

Starting the last Sunday of May, Bell Lanes will begin the monthly summer no-tap bowling tournaments. The tournaments will be held the last Sunday of each month and end the last Sunday of September with a Scotch Doubles tournament. All bowlers are welcome whether USBC certified or not.

The bowling division recently held their annual league officers appreciation tournament. League officers are an integral part of bowling and the bowling division hosts the tournament every year to show RCSC’s appreciation for all of the hard work the officer’s perform throughout the year. All bowling league officers were invited to participate for cash prizes and drawings for three different bowling balls.

Cardholder Services:

Payments on past due assessments increased slightly in February but were still below the monthly average for the past 12 months. Overall accounts receivables decreased by 1% with the Over 90 Day balances decreasing the most – indicating that payments outpaced the aging of invoices this month. Both the Over 30 Day and Over 60 Day categories saw net increases in February. Payments from our third party collections firm continued strong in February and year-to-date payments total $33,292. While there was a larger amount of payments received this did not impact total accounts receivable balances as several of the large payments were from former property owners.

In February, property transfer related balances decreased by 2% and lender owned related balances decreased by 27%. The cyclical nature of these balances continue to show that they are

dynamic over time. Outstanding balances related to property transfers continues to represent approximately 53% of all receivables due and past due balances.

Payments made by Cardholders through the online RCSC Web Portal in February totaled $86,811. This is the highest monthly payment total for online payments. Year-to-date web portal payments total $154,707.

Trustee sale notices on Sun City AZ properties decreased to 41 properties at the end of February. The number of properties owned by lending institutions decreased again this month to 32 properties. The latter of these is the lowest total tracked in the past 4 years.

Preservation and Improvement Fees collected in February were $539,100, which is $73,600, or 16%, over the amount budgeted. Year to date PIF fees are $1,074,600, which is $269,600 over budget for the year and up 14% from 2015. 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.

Human Resources:

H.R., I.T. and Accounting have been working on reporting requirements of the Affordable Care Act (ACA) over the past few months. As a large employer, RCSC is required to document all employees eligible to receive health care coverage by a monthly breakdown. This includes access to health care coverage in the workplace and information about the quality of coverage offered. Forms are required to be filed with the IRS and sent to every employee who, according to the ACA rules, is deemed to be full-time. Submitting the forms timely avoids any penalties the IRS may impose. This is the first year the ACA has required filing of the forms.

Twenty-two individuals have been hired to fill job openings at RCSC year to date. Four of the individuals are full-time and the remaining eighteen are part-time.

Member Services:

On Wednesday, March 2 the Roy Orbison tribute played to a sold out crowd. Many people tried to get tickets at the last minute and there were just none to be had. It was an incredible story and performance!

The following Wednesday, March 9 we had yet another full house. Over 40 members of the United States Air Force Band of the Golden West took the stage for 90 minutes of some of the finest orchestral music from the west coast.

The Sun Bowl spring series began Sunday, March 13 with the highly requested sounds of House of Steel. Fifteen minutes into the show the dance floor was rockin’ non-stop.

On Wednesday, March 16 we were back at the Sundial with The Garth Guy. This show was loaded with talent and heart. Dean Simmons performed one Garth Brooks hit after another. Two standing ovations let us know that this show was definitely worth the wait.

On Saturday, March 19 we held our first Senior Prom while dancing to the Realtones. Everyone in attendance was beautifully dressed in gowns, party dresses, tuxes and even tails. Elegant “Enchanted Evening” props were strategically placed throughout the auditorium for memorable
photo opportunities. A King and Queen were chosen, and the queen delighted in her reign all night long. So many commented that they can’t wait to do it again next year.

Then the following evening on Sunday, March 20 we were back at the Sun Bowl, as Sun City AZ came alive with Jumpin’ Jack Flash, a Rolling Stones Tribute. The bowl was packed, as was the dance floor. It was very entertaining to watch the authentic moves, sounds and mannerisms of Mick, Keith and the rest of the Stones.

On Wednesday, March 23 we were back at Sundial with Tonight’s the Night, a tribute to Rod Stewart! Rob Cahill is one of the top-rated Rod Stewart tribute artists on the circuit today. He is another artist whose stage presence, sound and mannerisms are so true to the original artist that it’s uncanny.

On Saturday morning March 26 we returned to the Sun Bowl as kids of all ages came to hunt for some of the 4,000 stuffed eggs that were laid out throughout the bowl. There was candy, prizes, face painting, pony rides and a petting zoo. Families had so much fun as laughter and excitement filled the air and they made Easter time memories.

On Easter morning Sunday, March 27 at the Sun Bowl, the United Church of Sun City celebrated with hundreds of worshipers during our annual Sunrise Service. What a beautiful and glorious way to celebrate Easter!

The evening of Easter, March 27 at the Sun Bowl, we welcomed to the stage the original Kingsmen. From the moment they first voiced those infamous words “Louie Louie,” they were launched into America’s mainstream rock and roll conscience and they’ve never looked back. The Kingsmen sounded better than ever.

On Wednesday, March 30 at Sundial our last ticketed show welcomed Lisa Irion who entertained us with the songs made famous by Cher. She was mesmerizing with her sound, look and spectacular costumes. What a way to end the ticketed show season!

Be sure to join us in April as we continue our Sun Bowl series with The 8 Tracks on Sunday, April 3, followed by Coral Paradise, a Jimmy Buffet tribute on the 10th, and Harmony, a Three Dog Night tribute on the 17th. We close out the month with a tribute to Crosby, Stills, Nash and Young on April 24. All Sun Bowl shows in April will begin at 6:30 pm.

Free for RCSC Cardholders and their escorted guests. Be sure to bring your lawn chair or blanket and be prepared to show your RCSC Member or Privilege Card with photo for entry.

You can easily understand why Sun City AZ is The Original Fun City!

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!