General Manager Report – July 2014
by Jan Ek
Since there is no monthly Board meeting in the month of July, I will include the Treasurer’s report information in my monthly report. The balance of unrestricted funds as of June 30, 2014 was $11,221,061 which includes a $2.5M cash reserve. Restricted funds include the Preservation and Improvement Fund (“PIF”) and the Capital Reserve Fund. As of June 30, 2014, PIF had a balance of $11,363,501 plus $575,260 collected in June that was transferred into the PIF account the first part of July 2014. The Capital Reserve Fund had a balance of $1,500,044 as of June month end.
We have completed our second quarter well within our operating and capital budget year-to-date. Matter of fact, every division has a net operating positive variance from budget.
Investment Report 2nd Quarter 2014:
RCSC’s Investment Policy (Board Policy 33) is stringent in its requirements with the priority of investment objectives to be placed in this order: 1) safety, 2) liquidity, and 3) yield.
At the end of the second quarter, the Franklin Templeton unrestricted money market fund had an ending balance of $5,013,843.98 and the restricted Franklin Templeton money market fund had an ending balance of $7,840,962.66.
As of June 30, 2014, RCSC had invested in three fixed income funds: Franklin Adjustable U.S. Government Securities Fund Class A, Franklin Low Duration Total Return Fund Class A, and Franklin U.S. Government Securities Series Class A.
At the end of the second quarter in unrestricted funds, RCSC had invested $2,500,000 into the aforementioned four fixed income funds with an ending value of $2,513,439.69 as of June 30, 2014, showing a .54% increase in value of $13,439.69.
At the end of the second quarter in restricted funds, RCSC had invested $5,000,000 into the aforementioned four fixed income funds with an ending value of $5,080,002.09 as of June 30, 2014, showing a 1.6% increase in value of $80,002.09.
Payments on past due assessments in July were reversed from June and were above the monthly average for the past year. June billings went past due at a rate of 6.2% and continue the trend of being below the rate for the same month the prior two years. May balances went 60 days past due at a rate of 3.2%. This is below the monthly average for the prior year, which reached the lowest level for the 60 days past due rate in the past three years.
Total accounts receivables increased by 3.8% in July. This increase is most attributable to the increase in accounts receivables related to property transfers which increased by over 12% in July. Current receivables, those not past due, for property transfer related balances increased by 90% in July due to a significant increase in property transfers this past month. Outstanding balances related to property transfers now represent 55% of all receivables due and 51% of past due balances.
Trustee sale notices on Sun City properties stayed steady at 49 properties at the end of July. The number of properties owned by lending institutions increased slightly in July and is now at 59 properties.
Preservation and Improvement Fees (PIF) collected in July totaled $441,000, which is 47% more than budget. Year-to-date PIF income is $4,185,238, which is 65% over budget for the year. Remember that we intentionally budget PIF income very conservatively to assure that we have money available prior to the onset of any capital projects budgeted for PIF.
In an effort to control costs and to protect RCSC’s assets which includes employees as well as property, accidents and incidents are investigated by teams of employees to: determine what happened; why it occurred; what caused it; identify any deficiencies; take immediate corrective action; and look for new and better ways to perform and to communicate expectations. During the month of July, five accidents/incidents have been under review, and have been resolved.
The Ring That Bell ceremony was very entertaining this year as Rosie the Riveters performed a small skit about how American women entered the workforce in unprecedented numbers during World War II, as widespread male enlistment left gaping holes in the industrial labor force. Thank you Fran Ellis and the Rosie’s! A special thanks as well to Mike Lindquist as Uncle Sam, Master Sergeant Papineau and the Sun City Posse Color Guard, Pastor Richard Dayens of Christ Church of the Valley, Ginni Summers and Lowell & Deanne Bassett for your dedication and performances. Followed by our traditional indoor BBQ/Picnic at the Bell Center with bowling, billiards, shuffleboard, games and prizes, a good time was had by all!
On July 23rd we welcomed the Ricochet Ranglers Radio Show at the Sundial Auditorium. Because everyone came out on the hottest day of the year, attendees were treated to a cup of ice cream when the performance ended.
Tickets are selling fast for Chance Tinder & Kentucky Rain – A Country Music Salute to Elvis Presley. Imagine for a moment that Elvis survived the late 1970s and found himself performing his greatest hits ”country style” in our day! This performance is Wednesday, August 13th, at 7pm at the Sundial. Tickets are on sale now at the Lakeview Club office, $13 for Cardholders and their guests, $15 for non-Cardholders.
Don’t forget to mark your calendars…Ice Cream Social and Dive-In Movie at Mountain View pool and patio. The movie will be Moneyball starring Brad Pitt. An all-star cast brings to life the true story of Billy Beane, a former jock turned general manager, who uses unconventional methods to bring the best players to the Oakland A’s, a Major League Baseball team struggling against financial hardship. This event is Saturday, August 16th, and kicks off at 6pm. Come and enjoy a hot summer evening with friends and neighbors poolside!
Anticipation is climbing for our first fall RCSC-sponsored event, Saturday, September 20th, with our first Casino Night. There will be Craps, Roulette, Blackjack, Poker, Pai Gow and Let it Ride games. Gourmet food trucks will be onsite 1-1/2 hours before doors open. This is a free event for RCSC Cardholders and their invited guests at the Sundial Auditorium from 4:30pm to 7:30pm. Everyone will receive $500 in free chips “make it or break it” that’s all you get…good luck
For those who may not be aware, the monthly management reports are available on our website under the Corporate tab. Also, if you have not done so already, please sign upon 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.