By Jan Ek
Financial Report:
There should be no concern about 2016, all is in order and we are operating well within our budget with all divisions in a positive variance position at the end of October.
Now 2017 that’s a different story! No I am not talking about the recent election for the President, I am talking about Arizona passing Proposition 206 which increases minimum wage from $8.05/hour to $10.00/hour effective January 1, 2017. That folks is a 24% increase in pay and it doesn’t only affect those that are being paid minimum wage, it affects numerous pay scales. This minimum wage increase will have a tremendous effect on RCSC’s operating costs in 2017 as 55% of RCSC’s current staff are paid under the $10.00/hour minimum at this time.
In addition this new law requires us to accrue and pay sick time for part-time employees. Approximately 50% of our 375 employees are part-time and this additional cost to RCSC will also increase RCSC’s operating costs in 2017.
Finally, it is very important to recognize that these changes will affect many of our service providers and supply vendors as well, therefore, the overall effect of the passing of Proposition 206 is impossible to fully calculate.
With this sort of significant potential impact, RCSC may have to consider fee and assessment increases, as well as, reduced services and benefits. It is important to recognize this doesn’t just end with the minimum wage increase for 2017, there is another 20% increase to $12.00/hour before the effects of Proposition 206 are over.
While some folks may be taking home a bigger pay check starting January 1, 2017, I venture to say that most will not have more when it is all said and done as businesses adjust their prices to accommodate their significant increased costs for operating their businesses.
Bowling:
Signups for the annual New Year’s Eve Party at Lakeview Lanes has begun. Doors open at 7:15pm and the party starts at 8pm with a potluck, bowling and prize drawings. The night will end with a champagne toast to the New Year. Everyone is welcome to attend even if you are not a bowler. Stop by Lakeview Lanes or Bell Lanes to reserve your spot as availability is limited.
On October 29th and 30th Bell Lanes hosted the Metro Phoenix Senior Ladies Championship tournament. Entries weren’t as high as expected, but this was a new tournament for the Metro Phoenix USBC. The tournament produced $800 of unbudgeted income.
The RCSC bowling centers will not be hosting the Arizona State USBC Senior Tournament this year or next year. RCSC has hosted the tournament for the past six years. The tournament was always very successful, but the Arizona State USBC has decided to rotate the tournament between centers in different cities in Arizona.
Cardholder Services:
Payments on past due assessments in October increased slightly from last month but continued to be over 10% of the past due balance. Overall accounts receivables decreased by 3.25% in October. September assessments went 30 days past due at a decreased 5.2% rate compared to the past 3 months while August assessments went 60 days past due at a reduced 2.9% rate. Past due assessments are at their lowest level since September 2011. The shift in receivables from current into the past due category subsided in October with both categories declining this month. Payments from our third party collections firm also increased slightly in October with year to date payments totaling $179,471.
Payments made by Cardholders through the online RCSC Web Portal in September totaled $79,078. Year to date web portal payments total $823,140. During this time over 3,100 property owners have used the web portal to make payments.
In October property transfer related balances decreased by 7% and lender owned related balances offset last month’s decrease with a 41% increase in October. Outstanding balances related to property transfers are the lowest to date this year and now represent approximately 54% of all receivables due and 55% of past due balances.
Trustee sale notices on Sun City AZ properties increased marginally to 45 properties at the end of October. The number of properties owned by lending institutions also slightly increased this month to 17 properties.
Preservation and Improvement Fees collected in October were $565,100, which is $194,100 over the amount budgeted. Year to date PIF fees are $6,764,200 which is $2,121,600, or 52%, 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.
Human Resources:
RCSC has renewed employee medical insurance coverage with BlueCross/BlueShield of AZ for the 2017 calendar year. The provider for dental insurance coverage will change from Mutual of Omaha to Delta Dental. Life and Short & Long Term Disability insurances will remain with Mutual of Omaha.
Employee benefit meetings will be held on December 1st and 2nd to provide information regarding the plans and to allow an opportunity for employees to enroll and make changes in current coverages. Also information will be provided regarding the Healthy Rewards Program and the 125 Flexible Spending Account.
The 125 Plan allows employees to set aside pre-tax dollars to provide reimbursement for out-of-pocket medical expenses. On October 27th, the IRS issued notice detailing the cost-of-living adjustments affecting dollar limitations. The maximum amount an individual can contribute pre-tax in 2017 increased from $2,550 to $2,600. Participants are never taxed on the amount set aside for reimbursement.
Recently the HR Director attended a webinar facilitated by Fidelity Investments who holds RCSC Employees 401(k) Plan investments. Fidelity will provide investment advice to employers and employees under a recent Department of Labor Fiduciary Rule. This will be done through advice and education. Education will be available online. As long as our plan is less than $50 million Fidelity will remain fiduciary. Over that amount the Plan Sponsor must take fiduciary responsibility. No rush, our Plan is currently at $1,153,000.
Member Services:
Heartbeat was the last band to perform in October, and just as predicted they kept us on our feet and dancing from the time the first note was played. What a great performance!
On November 6th, we honored our veterans with a tribute to the Andrew Sisters. This show was a reflection of how our troops were entertained while they served away from home. We again want to say thank you to our veterans past, present and future, as well as their families, for all they have sacrificed for us and our great country!
We closed out the Sun Bowl fall series with the Platters, featuring Tyrone Sweet. What a performance! This definitely was the largest crowd ever in the Sun Bowl, and it was a perfect way to end the fall Sun Bowl season!
On November 1st, our 2017 Season Tickets went on sale and we sold 360 Season Tickets to RCSC Members on the very first day! On Thursday, December 1st, Season Tickets will no longer be available. Individual show tickets will become available at $17 per ticket per show. These tickets will be available to RCSC Cardholders only. Beginning January 3rd, tickets will become available to non-RCSC Cardholders if they are available. Be sure to get your tickets now if you want to see the shows.
Be sure to come by the Sundial Auditorium on Friday, November 25th or Saturday, November 26th for the Sun City Arts and Crafts Festival. There will be music, food and treasures galore!
Please join us for the annual Holiday Celebration on Friday, December 9th from 3 – 6:30pm. Get your duck for a buck, and cheer it on as it races to the finish line in our annual duck races. We’ll also have the popular money tree. Last year one lucky winner took home a 6’ Christmas tree decorated with $551 in cash. There’s money to be won at the Hole-In-One Contest and there’s a winner every round of the Pie Walk as someone walks away with a pie of their choice. There will be music, food for purchase, $1 coffee and hot cocoa and free cake for everyone. The evening will conclude with our beloved lighted boat parade on Viewpoint Lake. Bring the grandkids and come one and all for this fun and sometimes profitable holiday celebration.
Finally, on Tuesday, December 13th at 7pm is our Holiday Extravaganza concert at Sundial Auditorium! We’ll have complimentary hot cocoa and hot apple cider. Taking the stage will be the Original Four Preps. This show is free to RCSC Cardholders and their escorted guests. Rec cards will be checked at the door; no key fobs will be accepted. Be sure to get in line early as seating is limited.
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!