Recreation Centers of Sun City, Inc.
General Manager Report
June 2009
by Jan M. Ek
We have ended May with a $22,076 loss in our snack shops year to date. This includes almost $7,400 in equipment purchases, which are not normal operating expenses. Despite the fact that we are very aggressive with our menu pricing, we have been able to maintain good cost of sale percentages overall. While taking back the snack shops in the middle of March was not the most opportune time of the year as the majority of the high season had passed, the entire Food and Beverage Service Division ended May with an $8,970 loss year to date. And some of this loss could have been lessened had we closed the snack shops at 3pm in April and May, as we plan to do next year. The snack shops, for the months of June, July and August, close at 1pm unless we are still serving patrons and then in September and October, they will close at approximately 3pm and in November, they will remain open until 5pm until the following spring (April and May). When the snack shops are closed earlier at 1pm or 3pm, there are beverages and snacks available for purchase in the pro shops.
We have ended May with a $402,925 positive variance from budget, however, it is important to recognize that $172,598 is due to the timing of repairs and maintenance, which leaves us at a net $230,327 better than budget overall. Despite the fact that we have almost $60,000 in unbudgeted food service wages, we remain almost $65,000 better than budget in total wages, taxes and benefits YTD. The Golf Division ended May with a $123,432 negative variance from budget in net operating excess and $114,146 worse than last year. We have ended May with $57,351 less in Restricted Income (PIF) than budgeted but $63,144 more than last year. So what does this all mean? It means that we are performing fairly well financially overall, although we have to remain diligent in our efforts to operate as efficiently and effectively as possible. The Management Team has done and continues to do an excellent job in saving money wherever and whenever possible.
The Management Team will begin their arduous task of preparing the 2010 operating and capital budget for the Board’s review and approval later this year.