by Jan Ek
Financial Report:
We have ended October 2014 well within our operating and capital budget year-to-date. As we come into our fourth quarter, I want to give you just a few reminders about variances from budget that have occurred year-to-date. As is consistent with our Preservation & Improvement Fund budgeting, Transfer Fees are budgeted very conservatively and historically have a positive variance from budget. We were able to sell ($183k) the 1080AF of water credits we purchased in 2010 and 2011 due to Viewpoint Lake’s seepage, which is reflected in Miscellaneous Income and produced a net profit on the credits. In the process of considering succession planning, both contract and temporary labor has been used in excess of budget while wages have been under budget in G&A. We have done very well in legal expenses y-t-d, with a $90k positive variance from budget. The Bowling Division’s willingness to provide liquor service to numerous events has produced an $8,500 positive variance in their liquor sales y-t-d. Despite the North Course being closed, both the golf division and food service division have operated with a better bottom line than last year and considerably better than budget. I know I made Brian nervous when I predicted a few months ago that we could end the year in the black in the golf division, but my prediction remains solid, I believe that we will at the very least break even in the golf division this year!
Cardholder Services:
Payments on past due assessments in October were below the monthly average for the year by 10%. Although past due assessments decreased by just under 1% in October, they are at the lowest level since April 2013. September billings went past due at a rate of 6.5% and August balances went 60 days past due at a rate of 3.8%. Both of these rates are right at the monthly averages for the past 12 months.
Total accounts receivables decreased by 2% in October and are at the lowest level since April 2013. In October we saw a 3% decrease in property transfer related balances and a 38% drop in lender owned related invoices. Outstanding balances related to property transfers represent 54% of all receivables due and past due balances.
Trustee sale notices on Sun City properties increased slightly to 47 properties at the end of October. The number of properties owned by lending institutions decreased in October by 20% and is now at 42 properties.
Preservation and Improvement Fees collected in October totaled $556,600, which is twice the amount budgeted. Year-to-date PIF fees are $5,868,938 which is $2,538,938 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:
Beginning Thanksgiving weekend, both RCSC bowling centers will again host the Arizona State USBC Senior tournament. The tournament has always been successful for the RCSC. The tournament also provides exposure to our community and additional income.
On the weekend of December 13, Lakeview Lanes will host the Arizona State Senior Women’s tournament for the first time ever. The event will include women from all over the state. Signups for the annual New Year’s Eve Party at Lakeview Lanes has begun. Everyone is welcome even if you are not a bowler. Stop by Lakeview Lanes to reserve your spot as availability is limited.
Human Resources:
Open enrollment meetings for employee benefit plans were held on November 5 and 6. A Benefits Guide for 2015 was distributed to all employees explaining details of the medical, life, and long and short term disability plans including associated costs. During the next few weeks employees have the opportunity to make changes in coverage based on individual needs.
RCSC always looks for ways to affect and contain rising medical costs within the organization. Since 50% of medical costs in the U.S. are due to lifestyle choices, management is working with BlueCross/Blue Shield of Arizona to include a wellness program beginning with the 2015 renewal. The goal is for participants to lower cholesterol, stop smoking, wear seat belts, exercise regularly, lose weight, etc. To assist employees in living healthier lifestyles, the first step is for each participant to find out where they are now and where they want to go.
To implement the program, employees participated in Biometric Screenings on November 12 and 13. Employees were tested for blood pressure, glucose, total and HDL cholesterol, and measurement of waist circumference and were provided the confidential results to complete online health assessments. When an assessment is completed, the individual is provided a score and can take advantage of available Healthy Living Programs to become healthier.
Member Services:
The Phoenix Boys Choir on Sunday, November 2 was completely entertaining. The talent these young men have and their harmony is astounding to say the least.
On Sunday, November 9, a Tribute to our Veterans closed out the Sun Bowl fall series. What a night to remember! The Sun City Players gave two performances of a special USO show. There were re-enactors from the Arizona Civil War Council and members from the Arizona Re-enactors Group. Men and women outfitted in various eras and branches of the service, mingled with the crowd, handed out programs and greeted guests as they arrived. The Arizona Military Vehicle Club provided us with jeeps, trucks, motorcycles and the replica of the USS Arizona. What a pleasant evening we had as we honored our Veterans. Thank you Vets!
The Murder Mystery Dinner theatre on Saturday, November 15, was spectacular! The name of the event was Crime and Punishment. The Bell social halls were turned into a Speakeasy and guests had to enter through the back door to gain access. There were outstanding costumes, food, beer, wine and of course a “Bloody Mary” bar with all the fixin’s. All attendees were given a commemorative 5×7 photo taken by RB Entertainment and compliments of RCSC. Casino trips were awarded to the best female and male costumes and to all at the table who solved the crime. Fun was definitely had by all!
Our second annual talent search has begun with twenty contestants making it through to the preliminary rounds. There is still time to get a ticket for the second preliminary round on Monday, December 1 with the Finale’ on Monday, December 15. Both performances are at the Sundial Auditorium at 7pm. One $20 ticket for RCSC Cardholders and $22 ticket for the general public will get you into these two final performances and may be purchased at the Lakeview Clubs office.
Be sure to join us on Tuesday, December 9, 7pm at Sundial as we host our Christmas Spectacular Concert as Johnny K (from Johnny K and Kompany) pays tribute to Johnny Mathis. The event is free to RCSC Cardholders and their escorted guests and we will be serving complimentary hot cocoa and hot apple cider. This evening is sure to get you in the holiday spirit.
As the year comes to a close, on Friday, December 12 at 3pm, the RCSC Management Team will host our annual Sun City Holiday Celebration at the Lakeview Recreation Center. This event (now in its sixth year) will kick off with a performance from the Aqua Suns synchronized swimmers followed by the infamous duck race! As is customary the pie walks, hole-in-one contest, money tree raffle and lighted boat parade will ensue. Food will be available from the Links Grill for purchase. Remember all money raised will go to this year’s RCSC management team’s charity, the Sun City Posse.
For upcoming events and entertainment please refer to our newsletter the SunViews, 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 Assistant General Manager Jim Wellman recognition and a small token of our appreciation for his 10 years of service to the RCSC. I have worked directly with Jim for 8 of the past 10 years and I am thrilled and proud to call him a member of my Senior Management team! Jim and I always look for ways to “divide and conquer” as we call it and he is an excellent team player and an extremely vital part of RCSC and the success we enjoy today! Thank you Jim for the past 10 years and here’s hoping for another ten!
For those who may not be aware, the monthly management reports are available on our website at 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!