by Jan Ek
Financial Report:
We have completed August 2016 well within our operating and capital budget year-to-date. Matter of fact, every division has a net operating positive variance from budget as of August 31, 2016.
Bowling:
Fall leagues have begun for the 2016/2017 season, the bowler count is better than projected due to the forming of new leagues.
We recently confirmed the Metro Phoenix Women’s Senior Tournament the weekend of October 29th. This unbudgeted tournament will bring additional income to the bowling division.
Year to date bowling net operating is $41k better than budget and $4k better than 2015. Half of this increase is due to new leagues starting at Lakeview Lanes and Bell Lanes.
Cardholder Services:
Payments on past due assessments in August rebounded some from last month and were 2.5% above the monthly average for the year. Overall accounts receivables increased by under 0.5% in August. All past due categories saw an increase in August which has happened each August for the past 5 years. July assessments went 30 days past due at a 5.4% rate while June assessments went 60 days past due at a 4% rate. The result is a shift in receivables from current into the past due category this summer. Payments from our third party collections firm were down by 50% in August with year to date payments totaling $158,114.
Payments made by Cardholders through the online RCSC Web Portal in August totaled $80,315. Year to date web portal payments total $673,659. As a reminder the RCSC Web Portal payment function is available around the clock online and immediately updates cardholder accounts. As we go into the holiday season this is an easy way to quickly make your payment without writing a check or coming into our offices.
In August property transfer related balances increased by 4.4% and lender owned related balances increased for the first time since January. Outstanding balances related to property transfers now represent approximately 57% of all receivables due and 55% of past due balances.
Trustee sale notices on Sun City AZ properties remained steady at 41 properties at the end of August. The number of properties owned by lending institutions increased this month to 18 properties. An increased turnover of the lender owned properties resulted in higher balances while the count increased just slightly.
Preservation and Improvement Fees collected in August were $626,500, which is $241,500, or 63%, over the amount budgeted. Year to date PIF fees are $5,622,100 which is $1,845,600, or 49%, over budget for the year. Year to date 34 properties have closed in the new Sun City Manor development that have added $119,000 to the year to date PIF fees collected, which were not projected in the budget due to the uncertainties of this new development in Sun City AZ.
The RCSC Web Portal was upgraded in August with improved functions for booking tee times including the ability to edit tee time bookings. Previously golfers were required to contact the pro shop to update bookings made through the web portal. We continue to review the web portal and look for additional updates to improve functions and enhance capabilities.
Human Resources:
Recently we met with representatives from Willis, our brokers for employee benefit plans, to plan strategy for annual renewal. We do not have renewal rates for the plans as of this date and expect to receive them in early October. We did make the decision to take the medical and dental out for bid in the marketplace for comparison and have provided a complete census to Willis for this purpose.
Hiring continues to be a focus for H.R. We have hired 35 individuals in the third quarter of the year with a total of 70 year to date. Sixty three individuals have left the company this year.
The new final overtime rules issued by the Department of Labor will be effective December 1, 2016 and we are in the process of bringing RCSC into compliance. The overtime rule raises the salary threshold from $455 per week ($23,660 per year) to $913 per week ($47,476 per year). Some RCSC employees’ status will be changed from “exempt” to “nonexempt” making them eligible for compensation at one and half times their hourly rate for time worked in excess of 40 hours per week. Changes will be made beginning late November and will be completed by December 1.
Member Services:
Our third annual Casino Night was a huge success! This year playing times were 30 minutes which gave everyone a chance to take a break and get a bite to eat or enjoy a cocktail while they watched the Vegas acts being projected on the big screens.
The fall Sun Bowl concert series began Sunday, September 25. The band voted best in Phoenix, Faded Jeans, took the stage and the evening was on! People danced non-stop and sang along to all their favorite hits. It was a night to remember and a great way to kick off the season.
Beginning in October, the Sun Bowl shows will all begin at 6:30pm. On Sunday, October 2, we’ll have a Sun City AZ favorite, The Real Tones. It’s James Garner as Johnny Cash on October 9 and CC Ryder Express on October 16. A Beach Boys tribute with The Southwest Surfers will move the crowd on October 23 and closing out the month on October 29, Heartbeat will be back by request. Don’t miss this amazing entertainment available only to RCSC Cardholders and their escorted guests.
Wait! That is not all we have for you in October! Be sure to join us at Sundial on Friday, October 21 from 4-7:30pm for our annual Fall Festival. There will be carnival games, prizes, food and music, with dancing to a Sun City AZ favorite, Yesterday Once More bringing back the oldies. The band will play from 5:30 to 7pm in the auditorium. Remember, this is a free event and you must bring your RCSC photo member or privilege card for admittance. No outside alcohol is permitted at this event as we will be selling beer, wine and bloody marys. Come and celebrate the long-awaited fall with us!
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!