by Jan Ek
Financial Report:
We have ended our third quarter of 2012 well within our operating and capital budget year-to-date. The Fairway Recreation Center has not been transferred from work in progress to buildings in fixed assets as the staff is doing due diligence making sure that there is nothing missing prior to closing the project. While the project itself has been completed for some time now, we have just finished some items that required further process. We have operated through the third quarter all within our operating income budget; however, it is important to note that the bowling division had $11,609 less income through September 30th this year than last. Members have really begun to notice all the attention to repairs and maintenance that has been an ongoing focus for the management team and we plan to continue this focus into 2013 as well. The management team has completed the 2013 balanced budget for presentation to the Budget & Finance Committee and Board of Directors in the near future.
Bowling Centers:
Director of Bowling Operations, Randy Johnson, was the guest speaker at the Sun City Bowling Association annual meeting on October 13, 2012. Randy provided information about lane conditions and procedures and even gave tips on how to read lane charts. After the presentation there was a question and answer session. Bowlers appreciated the information Randy presented and felt they had a better understanding of lane conditions.
Cardholder Services:
Payments made by property owners in outside collections totaled $6,491 in September with payments from 18 property owners. During the month our internal collector processed payments from past due property owners totaling $41,965 and property related transfer fees totaling $115,824. Both of these increased from the slower summer months.
Payments on past due balances went back to average levels in September. Past due balances decreased by 3.6% and we saw all aging categories decrease this year. August billings went past due at a rate of 6.9%, which is again just under the monthly average. The rate for July balances going over 60 days past due was at 4.2%, which is below the average rate for the last year. At the end of September, outstanding balances related to property transfers stayed the same and reduced down to 52% of receivables due and 46% of past due balances. The net accounts receivable change was 3.6% for September with non-transfer invoices making up this increase.
Property trustee sale notices on Sun City properties continue to go up slightly to 100 at the end of September and the number of bank owned properties increased by 10% to 84 properties owned by lenders.
The Preservation and Improvement Fees collected in August were $438,600 and were 95% over budget. Year to date PIF fees are $2,150,875, or 70%, over budget. It is important to note that PIF is budgeted extremely conservative to assure that all projects scheduled for payment from the Preservation and Improvement Fund will have sufficient funds to accommodate payment in cash, as RCSC remains primarily debt free.
Human Resources:
At a public meeting on October 17, 2012, the Industrial Commission of Arizona determined that Arizona’s minimum wage of $7.65 per hour would be increased by $.15 to $7.80 per hour for calendar year 2013. Federal minimum wage is currently $7.35 per hour.
RCSC employees working at less than the new State minimum wage will be increased to $7.80 per hour effective for worked performed on and after January 1, 2013.
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! We have forms available at the table in the back so you can sign up before you leave today.