by Jan Ek
Financial Report:
We have completed our third quarter with every division in a positive variance position from budget. Gross Income, Wages, Payroll Taxes & Benefits, Repairs & Maintenance and General Operating Expenses all ended September 30, 2016 well within budget. Utilities, however, ended the quarter $101,069 over budget year-to-date at quarter end. Utility costs are controlled primarily by weather and with a hotter than normal spring and fall we have been unable to operate within our budgeted utility expenses. In the golf division annual golf pass income increased $40k from prior year, as did Cardholder Green Fees by $47k. The Public Daily Green Fees increased by $77k because all courses were open which created more tee times open for public play this year than last. Managing this $20M operation requires one to balance the needs and wants of the RCSC Cardholders, the RCSC personnel and the corporation. I feel like we do a very good job at keeping all of those in balance.
Bowling:
Signups for the annual New Year’s Eve Party at Lakeview Lanes will begin at 9am on November 1, 2016. The party starts at 8pm with a potluck, bowling and prize drawings, the night will end with a champagne toast to ring in the new year. Everyone is welcome to the event even if you are not a bowler, stop by Lakeview Lanes or Bell Lanes to reserve your spot as availability is limited.
On October 15, 2016 Bell Lanes hosted the Sun City Bowling Hall of Fame tournament which was the most successful yet with 81 entries. The Sun City Bowling Hall of Fame committee will be announcing inductees very soon and will follow with an induction dinner.
Cardholder Services:
Payments on past due assessments in September decreased some from last month and were 3% below the monthly average for the year. Overall accounts receivables decreased by 1.3% in September. August assessments went 30 days past due at an increased 5.8% rate while July assessments went 60 days past due at a 3.3% rate. The shift in receivables from current into the past due category continued in September. Payments from our third party collections firm were down again in September with year to date payments totaling $168,023.
Payments made by Cardholders through the online RCSC Web Portal in September totaled $70,404. Year to date web portal payments total $744,062. During this time over 2,800 property owners have used the web portal to make payments.
In September property transfer related balances decreased by just under 3% and lender owned related balances decreased by 30%. Outstanding balances related to property transfers now represent approximately 56% of all receivables due and 55% of past due balances.
Trustee sale notices on Sun City properties increased to 44 properties at the end of September. The number of properties owned by lending institutions decreased this month to 16 properties.
Preservation and Improvement Fees collected in September were $577,000, which is $276,000 over the amount budgeted. Year to date PIF fees are $6,199,100 which is $2,121,600, or 52%, over budget for the year.
Human Resources:
Recently we completed and submitted wage data that is required by the Occupational Employment Statistics Unit of the Arizona Office of Economic Opportunity. Required was current salaries for every employee by RCSC work location. The information is incorporated in various labor markets and is available anonymously to employers. In addition, the information may be expanded in the future for compliance with the Equal Pay for Equal Work Act.
This year Arizona minimum wage will not be known until after the election on November 8. Current minimum wage is $8.05 per hour and based on the cost of living index would increase to $8.15 per hour in 2017. However, Proposition 206 on the November ballot would establish a new state minimum wage of $10.00 per hour if it passes. If Proposition 206 does not pass, minimum wage may go to the $8.15 per hour. At $8.15 per hour approximately 64 RCSC employees will be affected directly. The $10.00 per hour change will have a much greater impact obviously.
The audit of RCSC’s Employees 401(k) plan for calendar year 2015 has been successfully completed and the results have been filed with the Department of Labor along with the IRS Form 5500. This is the first filing we have completed through Fidelity’s online web station.
We have completed and submitted a participation review questionnaire required by Blue Cross/Blue Shield. When received, BC/BS uses the information to possibly provide rate relief. Our participation rate is 98% which is an excellent rating.
Member Services:
On Sunday, October 2, The Real Tones, a favorite dance band, had to be moved indoors due to rain but we didn’t let that ruin our evening. We were able to provide a large dance floor and boogied to hit after hit.
On October 9 James Garner was very well received as Johnny Cash. Then on October 16 the energetic and fast-paced CC Ryder Express band entertained us with their 6-piece horn section.
On Friday, October 21 the annual Fall Festival provided carnival games, prizes, food and music by another one of Sun City’s favorites, Yesterday Once More. It was such a nice way to welcome in the fall.
The Southwest Surfers Beach Boys tribute is always popular and they didn’t disappoint us on October 23. The last band for the month of October is back by request. Heartbeat will take the stage on the 30th. The talent in this band is unbeatable.
On November 6 we will have a tribute to the Andrew Sisters as we honor our veterans. This will be a show to remember as we thank our veterans of the past, present and future, as well as their families, for all they have sacrificed for us and our great country!
On Sunday, November 13 we will extend our Sun Bowl fall series for one more show as we have the opportunity to bring you The Platters! Yes, this is The Platters featuring Tyrone Sweet, who became a member of the original Platters in 2003. These elegant and professional entertainers will take the stage at 6pm and leave you completely captivated by their performance. What a perfect way to end the fall Sun Bowl season!
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!