by Jan Ek
Financial Report:
We have completed August 2014 well within our operating and capital budget year-to-date. Budgeting utilities has proven to be somewhat of an extra challenge in 2014, as we will have had all solar systems operating one year as of September. The solar systems have produced 18% more electricity than projected, providing additional rebates from APS as our rebate is paid based on our production. With that being said, we have also used more electricity ($71k) primarily in the recreation centers than budgeted year-to-date. It is extremely difficult right now to develop any useful comparisons and of course, weather is a big factor. Speaking of weather, thanks to all the rain, we have used $66k less electricity than budgeted for our well pumps year-to-date. While we currently have none of our water rights leased, we were able to sell the water credits that we purchased in 2010 for a profit prior to resolving the water allotment for Viewpoint Lake with the Arizona Department of Water Resources. The majority of our positive variance from budget has come from savings we have been able to acquire through management of payroll costs year-to-date. All divisions have operated well within their net operating budget year-to-date.
Cardholder Services:
Payments on past due assessments in August were the highest since January with past due assessments decreasing by 3.4%. July billings went past due at a rate of 6.4% and June balances went 60 days past due at a rate of 3.5%. The trend is continuing in 2014 with the 30 and 60 days past due rates being lower in each month in 2014 than the corresponding months in each of the previous two years.
Total accounts receivables decreased by 1.4% in August. Most notably this is attributable to the almost 18% decrease in accounts receivables related to lenders in August. We did not see an increase in property transfer related balances that could be expected as ownership changes from lending institutions. Outstanding balances related to property transfers now represent 55% of all receivables due and 56% of past due balances. The latter of these are being impacted by the decrease in total accounts receivable rather than an increase in property transfer balances.
Trustee sale notices on Sun City properties decreased to 45 properties at the end of August. The number of properties owned by lending institutions also decreased in August and is now at 54 properties.
Preservation and Improvement Fees collected in August totaled $501,000. Year-to-date PIF fees are $4,686,238 which is $1,857,238 over budget for the year. Again, a reminder that we intentionally budget this very conservatively to assure we have sufficient funds prior to starting a PIF capital project.
Bowling:
The months ahead will be busy with tournaments at RCSC Bowling Centers. In October, RCSC centers will host the Sun City Bowling Association Tournament and the Sun City Hall of Fame tournament. Over the weekend of November 29 to 30, both Lakeview Lanes and Bell Lanes will once again host the Arizona State Senior Bowling Tournament; this tournament is expected to produce between $8k and $10k. In addition to the state tournament, Bell Lanes will be hostingthe Arizona State Senior Masters tournament and Lakeview Lanes – for the first time in RCSC history – will host the Arizona State Senior Women’s tournament, both in December.
RCSC Director of Bowling Randy Johnson has submitted applications for Arizona State Liquor Licenses for the upcoming Mystery Theater event at Bell Center and the Polynesian Night at the Sun Bowl. The event license allows RCSC to serve alcohol on the premises; as a reminder, as long as a liquor license is in effect, outside alcohol is not permitted to be brought on to the premises.
Almost all fall bowling leagues are in full swing with the exception of a few spots waiting to be filled when the winter visitors return.
Human Resources:
The H.R. Department has dedicated a great deal of time during the summer months with recruiting, hiring and bringing newly hired individuals onboard. Also, there has been a great deal of internal movement as a result of filling positions with qualified individuals already employed by RCSC.
Thirty-nine newly hired individuals have been added to RCSC staff since May 1. Hiring includes staffing for locations that closed for renovation and have re-opened or are in the process. Turnover also plays a large part in the numbers.
Currently we have 353 individuals on staff with 148 being full time and 205 part time. In addition to recruiting in Sun City, we recruit from the surrounding valley communities in compliance with Equal Employment Opportunity requirements. Many Sun City residents prefer working part time due to the flexibility of time commitment, however, some still chose to work full time. Sixty-five percent of RCSC’s staff resides in Sun City.
Since January 1, 2014, 112 individuals have been added to RCSC’s staff.
On Monday, September 22, 2014, RCSC received a letter from the U.S. Department of Labor addressing the recent investigation (audit) involving the RCSC Employees 401(K) Plan pursuant to the Employee Retirement Income Security Act of 1974 (ERISA) and has advised that their investigation is now concluded, and no further action by the Department is contemplated at this time. This is a very positive determination letter and the results are what we expected to receive. We believe RCSC carries out its responsibilities with due diligence.
Member Services:
Casino Sun City, a new annual RCSC sponsored event, was held Saturday, September 20th and was a huge success! Approximately 600 residents played Craps, Roulette, Blackjack, Poker, Pai Gow and Let It Ride games. In addition to the gaming tables, many thoroughly enjoyed the video compilation of Vegas entertainment. Everyone received $500 in free chips….make it or break it. Our top winner of the night was Mike Hickey with an incredible $16,000! Our second-place winner, Harry Sorich, won $8,750 going all-in on his last hand of the evening! RCSC awarded ten overnight casino trips in all to the five top money winners and five selected in a random drawing of other attendees.
Be sure to join us as we kick off the Fall Sun Bowl Series this Sunday, September 28 at 7pm with a George Strait Tribute; Fleetwood Mac Tribute on October 5; 50’s & 60’s music with Johnny K & Kompany on October 12; Guy Pennachio with his amazing Frank Sinatra Tribute on October 19; and the Hard Livin’ country band on October 26.
On Saturday, October 18, RCSC presents the first annual Fall Festival with the Pualoto Polynesian Show at the Sun Bowl featuring beautiful Polynesian dances including fire dancers, live music and non-stop entertainment. The menu features a BBQ pulled pork or pulled chicken sandwich with baked beans, coleslaw and a soft drink for $8 per plate. One dollar from every meal will be donated to the RCSC’s Management Team 2014 fund raising campaign for the Sun City Posse! Beer and wine will be available for purchase; therefore, no outside alcohol will be permitted at this event.
Don’t miss the opportunity to see Terry Davies as the Piano Man, Wednesday, October 22, at Sundial Auditorium. Tickets are currently on sale at the Lakeview Clubs office. This is a show you must see!
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!