by Jan Ek
Financial Report:
We have ended our third quarter of 2014 well within our operating and capital budget year-to-date. Every division has completed the third quarter with a positive variance from budget overall. The trend of more and more golf rounds and income coming from RCSC Cardholders has remained true through 2014, and we have been able to operate both our golf courses and snack shops without loss of income due to the North Course being closed for renovations. Thank you RCSC Cardholders! The management team has completed their proposed 2015 Operating and Capital Budget and I presented that budget to the Finance & Budget Committee and RCSC Board of Directors this week. I am very proud of how we are able to operate these facilities for annual property assessments that are unheard of in the industry for the amount of amenities we offer and without debt. I was given the opportunity to meet with a group of realtors last week and when discussing the Preservation & Improvement Fund fee I explained the enormous value this “capital fee” has brought Sun City and each of its homeowners. If we did not have this fund, we would have to raise our annual property assessment considerably or we would have to let our facilities deteriorate – neither is a good option for Sun City and the latter would greatly affect home values in Sun City. As someone who has paid this fee, I am grateful for it and I can see every day in Sun City where my money has gone. The financial stability of this community is excellent and I am excited about our future!
Cardholder Services:
Payments on past due assessments in September were down from the high in August and were at the monthly average for the year. Past due assessments decreased by just under 3% in September. August billings went past due at a rate of 6.3% and July balances went 60 days past due at a rate of 4%. The 60 days past due rate for July balances was the first time this was over 4% in 2014 and broke the trend of lower rates over the past two years for this age of balances.
Total accounts receivable decreased by just over 4% in September and is at the lowest level since September 2013. In September we saw an almost 5% decrease in property transfer related balances. Outstanding balances related to property transfers continue to represent 55% of all receivables due and 54% of past due balances.
Trustee sale notices on Sun City properties remained at 45 properties at the end of September. The number of properties owned by lending institutions also decreased in September and is now at 52 properties. While these numbers have remained relatively constant we do see a turnover in affected properties which impacts overall receivables and collected Preservation and Improvement Fees.
Preservation and Improvement Fees collected in September totaled $626,100, which is $401,100 more than budget. Year-to-date PIF fees are $5,312,338 which is $2,258,338 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:
RCSC Director of Bowling Randy Johnson was recently appointed to fill a vacancy in the Arizona State USBC Board of Directors. USBC (United States Bowling Congress) is a non-profit organization that establishes playing rules and standards for league and tournament bowling in addition to establishing specifications for lanes and lane conditions. Randy was selected due to his extensive background in the bowling industry. Randy has thirty-six years of experience in the bowling industry and is looking forward to providing input as to current bowling industry trends and bowler concerns while maintaining the integrity of the sport.
Beginning Thanksgiving weekend, both RCSC bowling centers will once 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.
Sign-ups for the annual New Year’s Eve Party at Lakeview Lanes will begin at 9:00am on November 3, 2014. Space only allows 140 people, so sign up early to reserve your spot.
Human Resources:
The second audit conducted in 2014 on the RCSC Employee 401(k) Plan has been completed by an independent auditor for the calendar year 2013. Copies of the report and a positive determination letter have been received by RCSC. A copy of the independent auditor’s report is required to be filed along with the I.R.S. Form 5500 for the plan each year. The audit and the documents were filed on October 15, 2014.
RCSC has received renewal quotes from the carriers for the employee benefit plans which include medical, dental, life, short term disability and long term disability. Employee meetings have been scheduled for early November to communicate details of the plans and to provide employees the opportunity to make changes in coverage to fit their needs.
Member Services:
We did indeed kick off the Fall Sun Bowl Series on September 28th as we brought back by popular demand, Kevin Sterner and Strait Country. This critically-acclaimed George Strait tribute show has been selling out concert venues throughout southern Arizona for the past 5 years. And it gave us a full house of over 3,000 people.
The second show on Sunday, October 5 was Bella Donna – an astounding tribute to Stevie Nicks of Fleetwood Mac fame! The approximately 4,000 attending were mesmerized by the songs, the performance and the costume changes. So much so that she received a standing ovation for her two encore songs!
The month of October just kept on going as we presented Johnny K and Kompany on the Sun Bowl stage on Sunday the 12th. Johnny K and Kompany delivered just what they promised…the timeless sounds of the 50s, 60s and 70s. We displayed this performance on our 20’ inflatable screen with larger than life close-ups. We also welcomed two new food vendors – Hot and Knots, serving hot dogs and flavored baked pretzels and Roosters Kountry Kitchen providing mouth watering fried chicken.
On Saturday, October 18th, RCSC had the pleasure of hosting our Fall Festival with the Pualoto Polynesian Dance Troupe at the Sun Bowl. The Links Restaurant served 1000 meals donating $1 from every meal to the RCSC Management Team’s chosen charity, the Sun City Posse! Thank you Sun City Residents!
The next day following the Fall Festival, we were at it again as Guy Pennacchio, an all-time Sun City favorite, who swooned the audience with his spotless tribute to Frank Sinatra! Unfortunately, we were hit with an unexpected, unpredicted storm and for the safety of our guests, entertainers and staff we were forced to stop the show early and evacuate the Bowl. We will bring Mr. Pennacchio back to the Sun Bowl for a full performance.
Three days later we moved to the Sundial with Terry Davies as the Piano Man. This phenomenal performance honored the talent and music of Elton John and Billy Joel. To watch the talent on stage was mesmerizing.
Finally, our last performance of the month, Sunday October 26th, we were back at the Sun Bowl as Hard Livin’ hit the stage. Hard Livin’ is a Modern/Traditional Country band with a foot stompin’ fiddle player, a phenomenal bass and lead guitarist, a rockin’ female drummer as well as an award winning lead vocalist. This show provided 90 minutes of non-stop dancing.
For upcoming events and entertainment please refer to our newsletter the SunViews, online at www.sunaz.com under the activities tab 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:
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!