by Jan Ek
Financial Report:
We have ended October 2012 well within our operating and capital budget year-to-date. The only division that has not met budget in regards to income was the golf division, which fell short by $29,176 in gross income year-to-date. We have a positive variance of $329,443 in repairs and maintenance expenses year-to-date that will be either be used up by year end or in 2013.
Bowling Centers:
On January 5th and 6th in 2013, Lakeview Lanes and Bell Lanes will host the Metro Phoenix USBC Senior Open tournament. The tournament is open to all USBC Certified Seniors 50 years of age and older.
Bowling scores have been lower the past few months; mainly due to changes in weather. Humidity and temperatures can have an enormous effect on lane conditions. Recently, RCSC’s bowling management team contacted the Kegel Corporation who manufactures our lane conditioner. Kegel Corporation offered some suggestions and scores have increased since implementing them.
Cardholder Services:
Payments made by property owners in outside collections were down in October and totaled $3,054 with payments from 14 property owners. During the month our internal collector processed payments from past due property owners totaling $27,407 and property related transfer fees totaling $63,669. Both of these were lower in October and impacted by staff absences.
Payments on past due balances in October were down approximately 20% from the monthly averages over the past year. This was consistent with a similar decrease last October. As a result, past due balances increased by 1.0% in the last month. September billings went past due at a 6.8% rate, which is again just under the monthly average. The rate for August balances going over 60 days past due was at 5.5%. This rate is above average with a much higher percentage of 30 day balances going to 60 days. This trend occurred last August as well and is now expected to be the norm. At the end of October, outstanding balances related to property transfers increased by 6% and represent 55% of receivables due and 53% of past due balances. The net accounts receivable increase in October is most notably impacted by these property transfer fees going past due.
Property trustee sale notices on Sun City properties continue to go up slightly to 103 at the end of October and the number of bank owned properties was relatively unchanged at 82 properties owned by lenders.
The Preservation and Improvement Fees collected in August were $527,200 which, as usual, is over the conservative budget. Year to date PIF fees are $2,402,075 over budget.
Human Resources:
RCSC has been seeking an opportunity to change the medical and dental benefits renewal date to January 1st each year, a date consistent with the fiscal and the deductible year, and will accomplish this on January 1, 2013. We sought bids from other providers and negotiated a benefits package that decreases the current medical plan rates and offers additional plan options for employees to choose from.
We offered the package to employees at Open Enrollment meetings on November 27th and 28th. Our Broker and Plan Providers were available to provide detailed information regarding the new benefit plans and to offer employees and their families the opportunity to enroll.
Currently RCSC has 284 employees on staff which includes several seasonal positions assisting the golf shops, snack shops and centers during the busy season. Since the October Board meeting, we have hired four regular employees to fill vacant positions. Sun City residents make up 73% of RCSC’s staff.
General:
For those who may not be aware, the monthly management reports are available on our website www.sunaz.com under the corporate tab.