General Manager Report – January 2014
by Jan Ek
We ended the year, December 31, 2013, well within our operating and capital budget. We have $560k in repairs and maintenance projects that were not completed as of year-end and will be carried forward into 2014. We have been able to create a restructuring that solves most of the financial challenges that led us to contract the golf and grounds maintenance services, therefore, as of January 1, 2014, RCSC has brought golf and grounds maintenance back in-house.
The RCSC Bowling Division recently purchased new bowling ball racks for spare balls. With the constantly changing technology in bowling equipment, more bowlers are using different bowling balls to convert spares. The new spare ball racks will accommodate twelve bowling balls and the rack also includes a table top for bowlers to place their towels and accessories. The racks are expected to arrive in early February and will be installed soon after. The racks were purchased from Brunswick Corporation at a cost of $13,500 for twenty racks.
The New Year’s Eve party held at Lakeview Lanes was a huge success! The Sun City Bowling Association did an excellent job of organizing and planning the event. Approximately 150 bowlers participated in the event which ended with a champagne toast at midnight.
The payments on past due assessments were steady in December but below the monthly averages for the past year by 12%. November billings went past due at a rate of 7.1% which is right at the average for the past 12 months. October balances followed the annual trend identified last month and went over 60 days past due at a monthly rate of 6.3%. This is 40% over the monthly average for the past year. Outstanding balances related to property transfers increased by 10.6% in December and now represent 57% of all receivables due and 56% of past due balances.
Overall account receivables due at the end of 2013 increased by 23.8% compared to the end of 2012 balances with 80% of this increase being attributable to balances related to property transfers. Compared to the end of 2012, the outstanding balances related to property transfers increased by almost 36%. Past due balances increased by 18% over the end of 2012 with the over 90 day balances increasing most significantly. Changes to the outside collections process negatively affected these past due balances due to the transition between collection agencies. Now that all changes have been completed we are starting to see successful collection efforts.
Trustee sale notices on Sun City properties increased again for the second month and is now at 46 for the end of December. This decreased by 50% from the end of 2012. The number of properties owned by lending institutions decreased to 69 this month and is down by 10% from the end of 2012.
The Preservation and Improvement Fees collected in December were $437,500 which is 58.5% more than budget. Year-to-date PIF fees are $6,627,540, which is $2,691,540 over budget for the year. We intentionally budget PIF fees conservatively to assure that sufficient cash is on hand when PIF projects are scheduled as we remain debt free.
With team work and much cooperation amongst numerous departments including, but not limited to golf maintenance, accounting, pro shops and human resources, we were able to
successfully bring golf and ground maintenance back in house while continuing to maintain golf course maintenance and timely payment of wages to golf and grounds maintenance staff, as well as other new hires. We processed in excess of sixty employees in a week’s time, which included orientation, verification of right to work documents, social security trace, background checks and timely input of new hire information into the human resource/payroll system. As a result of the changes, RCSC employs 340 full- and part-time personnel with 65% being Sun City residents.
Early in January we held informational/enrollment meetings for RCSC’s 401(k) Plan and the 125 Flexible Benefits Plan. We distributed Summary Plan Description to the 125 plan participants in compliance with IRS requirements.
RCSC matches each 401(k) plan participant’s contributions up to $500 annually with a six year vesting schedule. At the end of the 2013 calendar year, RCSC’s employee 401(k) Plan had $10,978 in a forfeiture account. The forfeitures result from match money not fully vested when participants terminate employment. Forfeitures are then used to offset the employer match money at the beginning of each plan year until the account is exhausted.
RCSC’s Clubs & Activities Office has been extremely busy with new club officers, year-end reports, events and tours. We have 20 concerts, 8 RCSC sponsored events, 16 Farmers Markets, 27 day tours and 18 overnight tours all scheduled between January and June of this year!
The Farmer’s Market resumed on January 9 and more and more vendors are joining this fast growing, successful market! Held every Thursday from 8am to 12noon in the parking lot at the Bell Center, mark your calendars.
We are looking forward to our February events. We kick off the month with the SC Orientation on Wednesday, Feb 5. We’ll have two sessions: one from 9-11am and the other from 7-9 pm. This event, in the Sundial Auditorium, gives those new to Sun City as well as those of us who have been here for awhile, the opportunity to learn a bit about RCSC, SCHOA and SCCOA; as well as the clubs and many other fine organizations in Sun City.
The upcoming Sundial concerts for February are:
- Revoiced, Sunday, February 2 at 7pm;
- Yesterday Once More (The Karen Carpenter Story), Wednesday, February 12 at 7pm; and
- Elisa Furr as Celine Dion, Wednesday, February 26 at 7pm.
Don’t miss the unique presentation of Riders of The Orphan Train on Sunday, February 9 at 2pm. Phil Lancaster, virtuoso musician, teams up with award-winning author Alison Moore to tell the story of the mass relocation by rail of several hundred thousand children from NYC. These orphans were chosen by new families at train depots in every state between the 1850s and the 1920s. The Orphan Train story is of particular interest in Arizona, where an infamous 1904 kidnapping of orphans occurred. It’s a fascinating story you must see and hear! This is a free event to RCSC Cardholders and their invited guests.
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.