General Manager Report – April 2014
by Jan Ek
We have completed our first quarter of 2014 within our operating and capital budget year-to-date. We have been working with APS to get all the credits due us for our solar production and APS rebates and although that has yet to be totally resolved, we are making progress and hope to have it all completed very soon. Once completed, we will have some adjustments to our utility expenses of a positive nature from these March financials. We also show that our assessment income is under budget year-to-date. However, it is a budget timing error that will level out over the summer. Along that same line, remember this is the time of year when we have the largest monthly billings for assessments so cash does tend to accumulate as it is needed for the summer months with smaller billings. The golf division continues to exceed budget expectations considerably! We have ended the first quarter $100k better than budget in gross income despite the closure of the North Course, so obviously all these houses that are being sold are being occupied by some more golfers!
Payments on past due assessments ticked up in March and were at the monthly average for the past year. February billings went past due at a rate of 5.6%, which is the lowest rate in the past three years. January balances went 60 days past due at a rate of 3.7%, which is the lowest monthly rate in the past year. Total accounts receivables decreased for the third straight month for a total reduction of 7.3% for the first quarter. This was the first consecutive three months of accounts receivable reduction in over 4 years and is reflective of successful third party collections efforts. Outstanding balances related to property transfers decreased by 8% in February and now represent 55% of all receivables due and past due balances.
Trustee sale notices on Sun City properties stayed the same at 39 properties at the end of March. The number of properties owned by lending institutions increased slightly to 75 this month. Even with this increase, the total accounts receivable attributable to lending institutions decreased by 15% in March.
Strong resale transactions continued in March resulting in Preservation and Improvement Fees being collected in March totaling $741,368, which is $333k more than budget. Year-to-date PIF fees are $1,831,468, which is $823,468 over budget for the year.
The 26th annual Sun City Open Bowling Tournament starts this weekend at both RCSC bowling centers and continues the weekend of May 3. The tournament is open to all bowlers fifty years of age and older statewide and beyond.
Starting the last Sunday of May, Bell Lanes will begin the monthly summer No-Tap bowling tournaments. The tournaments will be held the last Sunday of each month and end the last Sunday of September with a Scotch Doubles tournament.
Recently Lakeview Lanes hosted a demo days with ball manufacturer Columbia 300. Nearly forty bowlers attended and were able to try out the latest offerings from the manufacturer and get tips from the representatives.
The first quarter of the year has required HR to focus on hiring as a result of bringing Golf and Grounds Maintenance back in-house, filling newly budgeted positions for 2014 and turnover as some employees leave RCSC. Since January 1, 2014, we have added 102 employees to the staff with sixteen of those resulting from turnover.
Processing 35 returning Golf and Grounds employees as compared to newly hired individuals was a less complicated task since background checks were simplified and the returning employees had a history with RCSC. Regardless of where the hires came from, HR was required to follow the same due diligence process including background checks, work history verification, new hire orientation, benefit enrollments, etc.
In mid March, HR received a telephone call from the U.S. Department of Labor informing us that the Secretary of Labor was scheduling a limited review of RCSC’s Employees 401(k) Plan for mid-April. We agreed to an April 15 audit date and a follow up letter dated March 17 was received shortly thereafter with a list of requested documents causing us to question their definition of “limited” review. With ample time to assemble and copy all requested documents, the audit took place and ended timely. We are awaiting the DOL’s opinion of our work papers and the Plan. We expect a positive response.
The Sun Bowl Spring Series began Sunday, March 16 and we have been going strong since our first show with the Eagles Tribute. Since then we have had record breaking crowds for the Swing Tips, Doo Wah Riders, Affinity Band, the Frankie Vallie Tribute and of course the Barry Manilow Tribute. The standing ovation to “I’m Proud to be an American,” during the Manilow show, was a beautiful tribute to our Veterans! Due to windy weather we had to move the Sun City Concert Band and the Women’s Chorus performance indoors to the Sundial Auditorium. We still had 1,200 in attendance and we have rescheduled this concert back at the Sun Bowl under the stars on April 8, 2015.
Dancing with the Sun City Stars again delivered an outstanding performance as the Utah Ballroom Dance Company fully entertained us with their impressive dance routines. The six Sun City contestants put forth their best efforts as they competed for the grand prize of the mirrored ball trophy. Congratulations to the lucky winner, Sandy Ferrara, who won by dancing the cha-cha to “Barbie Girl”. Stay tuned for how we put the show together for next year. It is rumored that RCSC’s General Manager Jan Ek may compete again to try to win the trophy back!
The Easter bunny made an appearance at our annual Easter Egg Roll this past Saturday. She made hundreds of balloon animals for all the kids in attendance. The petting zoo was enjoyed by all. Over 1,000 eggs were filled with candy or prizes for the traditional egg hunt and there were plenty of kids who gathered eggs in record time. Kids both big and small made paper Easter bonnets, sailor hats or crowns. It was just a perfect way to spend the day!
Don’t forget Mother’s Day Brunch! Why drive in traffic, wait in lines and fight the crowds to have a relaxing Mother’s Day feast? RCSC is offering its first annual Mother’s Day Brunch right here in Sun City. This elegant brunch will be fully catered with linens and china, on the patio at Lakeview overlooking the lake. You reserve your table when you buy your ticket, so there is no waiting in line and you can enjoy your meal at your leisure. Seating is limited to only 250. Tickets are still available at the Clubs offices at Lakeview Recreation Centers for $45 which includes tax and gratuity.
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.