Affordable Retirement Community in Sun City Arizona

General Managers Report – December 2013

by Jan Ek

First of all, in my absence today as I am in Louisville, Kentucky to witness my granddaughter being awarded two Bachelor of Science degrees (one proud Grandma!), I want to wish you all a very Merry Christmas and Happy New Year and trust that you will be blessed by celebrations with family and friends! Secondly, I want to thank this Board of Directors for their service and dedication to Sun City this year. Cord, Dan and Larry it has been a pleasure to serve you over these past three years and you will surely be missed!

Financial Report:

As of November 30, 2013, RCSC has operated within its operating and capital budgets year-to-date. It is essential to remember that monies budgeted for both capital and repair & maintenance projects not completed yet is carried into the future to fund those projects. This money is reflected in our unrestricted fund balance, which creates what may appear to be a surplus but will be used as we proceed through our project completion. It is also important to realize that as we build our Capital Reserve Fund annually to the desired $5M balance, it is important to reserve some money in case of an emergency. Additionally, it is very important to remember that the Preservation and Improvement Fund (PIF) projects are completed separate from the operating and capital budgets and are not funded by annual property assessments whatsoever. Therefore, there is no increase in assessments to fund these projects. In order to qualify for a PIF project, the project must exceed $300,000 and have a useful life of 15 years or greater.

Bowling Centers:

The Arizona State Senior tournament was held at Lakeview Lanes and Bell Lanes during Thanksgiving weekend and the first weekend of December. The tournament was budgeted to produce $6,800 in revenue, but this year’s tournament was larger than expected and produced $8,600 in revenue, which is a positive variance of $1,800 compared to budget.

In the past ten years or so, the Arizona State Senior tournament alternated annually between RCSC bowling centers in Sun City and centers in Tucson. Director of Bowling Operations Randy Johnson was notified that the tournament will most likely hold their tournament two years at the RCSC centers in Sun City and one year in Tucson then back to RCSC centers for two years. This change in scheduling would mean that RCSC Centers would host the state tournament again in 2014, 2016, and 2017.

RCSC bowling centers were also offered the opportunity to host the Arizona State Senior Women’s tournament in December 2014. Randy Johnson was told by the Arizona State Bowling Association Manager that the bowlers enjoy bowling at RCSC’s bowling centers because they are clean and the staff is always courteous and helpful. Confirmation should occur after the end of the year.

Cardholder Services:

The payments on past due assessments were up in November but still below the monthly averages for the past year. October billings went past due at a rate of 9.0%. This is significantly higher than the monthly average rate but is consistent with trend for the prior two years where October invoices are past due at a higher rate than all other months. September balances went over 60 days past due at monthly rate of 3.9%, which is just under the average. Outstanding balances related to property transfers increased by just under 5% in November and represent 56% of all receivables due and 54% of past due balances.

Trustee sale notices on Sun City properties increased for the first time in several months with the count up almost 20% to 46 for the end of November. The number of properties owned by lending institutions increased slightly to 74 this month.

The Preservation and Improvement Fees collected in November were $414,000 which is 25% more than budget. Year to date PIF fees are $6,190,040, which is 69% over budget for the year.

Human Resources:

Beginning January 1, 2014, RCSC is rolling out a new service awards program to replace the current one that recognizes employees with an awards pin with gem stones for increments of 5 years of service up to 25 years. To assure the program was meaningful to employees, the Management Team conducted an informal opinion poll earlier this year to see what employees would like to receive in recognition of continued service. The overwhelming response was monetary recognition. An increasing scale starting at $50 for 5 years of service is being implemented.

In making this change, we have not forgotten those employees who receive their 15 year pin on or before December 31, 2013 and would like to complete it upon reaching 20 and 25 years of service. We have provided for that option in the new program.

RCSC has renewed employee insurance benefits with our current carriers BlueCross/BlueShield of AZ and Mutual of Omaha. BC/BS offers medical coverage and Mutual of Omaha offers dental, life, voluntary life, short term disability and long term disability coverage. There will be an increase in premium for medical and dental, however, not as significant as expected in today’s market and as affected by the Affordable Care Act. We are currently holding Open Enrollment for employees who wish to make changes in their coverage.

In renewing RCSC’s IRS Section 125 Unreimbursed Medical Plan for calendar year 2014, we are offering a change to employees enrolling in the program. Enrollees will be issued debit cards to pay medical expenses not covered by medical insurance. Currently the plan requires employees to complete reimbursement forms and submit with medical receipts either by U.S. mail, fax, or online. With a swipe of the card, an employee will be able to pay for medical services received immediately. Money to pay these expenses is deducted from participating employees’ pay on a pre-tax basis and employees never pay taxes on the money set aside for reimbursement.

Member Services:

The Arts & Crafts Fair that was held on Friday and Saturday of Thanksgiving weekend, November 29th & 30th, at Sundial was a huge success, Friday being the busiest day. Most Clubs stated that sales were up and they did very well.

The Farmer’s Market will take a break following the December 19th market and will resume on Thursday, January 9, 2014.

The Arizona Christmas Spectacular concert at Sundial on Tuesday, December 10th was another fantastic performance. With a full house of 1200 Guests they came and enjoyed hot cocoa and hot apple cider while they were entertained for 2 solid hours. The show received three standing ovations. We look forward to next year’s holiday concert.

The Holiday Celebration was huge! People filled Lakeview and enjoyed every aspect of the afternoon. The synchronized swimmers kicked off the event and captivated the audience; there was a continual line for the pie walk, hole in one and the money tree. The Ducks had two full races; the food was good and plentiful. All the proceeds went to benefit SCCAN. The event ended with the fantastic boat parade, a perfect ending to a perfect day. I must say a good time was had by all. What a wonderful way to end the season!

New Club Presidents are getting ready to take over in January and the Club Office Staff is preparing for the New Club President Orientation on Wednesday, January 22nd, 2014.

Our next RCSC Sponsored Event is the Annual Meeting which is scheduled on Saturday, January 25th, 2014.