Recreation Centers of Sun City, Inc.
General Manager Report
February 2010
by Jan M. Ek
If you’re one of the many RCSC cardholders who make it a point to attend the free movies shown at both Marinette Center or Fairway Center, you may be asking, “Hey what happened to the movie listing?” when you flip open your March edition of SunViews. No, RCSC has not stopped showing free movies to cardholders. But we have had to make a few changes in how we communicate which movies we will show every month.
To comply with advertising stipulations in our copyright agreement, RCSC cannot advertise the titles, characters or producers of the movies outside the licensed facilities. This means the back page movie listings in SunViews, as well as listings in the local newspapers can only include the dates of the movie showings but not the names of the movies, its characters or producers.
But that doesn’t mean cardholders have to wait until the lights go down and the movie starts to know what’s playing. Flyers with full listings of scheduled movies will be available at all recreation centers, which will include information that was on the back page of SunViews such as title, stars’ names and brief descriptions of the films. Also, cardholders subscribed to RCSC’s Events email list will receive a full listing of the upcoming month’s movies right in their email inbox. To sign up for the Events list, as well as other RCSC email lists, visit www.sunaz.com at the top part of the home page under News Alerts.
We know these changes may seem a little confusing or annoying, but it’s important that we abide by the copyright rules stated in our agreement so we can continue offering RCSC cardholders a fun, enjoyable and free movie experience on Wednesdays and Saturdays.
Financial Report:
Overall we have ended January 2010 well within budget. We were on target to meet our golf green fee revenue in January until the rain came. This is a good sign because it shows that possibly the downward trend of golf rounds has ended. However, as revealed in my last month’s management report, we recognize that the revenue budgeted for outside golf memberships is not going to be realized this year. As a result, we have already taken actions to make up the difference by cutting operating costs. For example, as of January 28, there has been a wage freeze instituted at RCSC.
Bowling Division:
Bowling is off to a good start for 2010, open play lineage was up 18% although total league lineage was down 1,000 games when compared to January 2009. The net effect of which is $3,400 less income this year from last; however, the bowling division has ended the month of January $2,685 better than budget.
We are awaiting bid for the Installation of new bowling lanes at both RCSC bowling centers. All of the contractors have completed site surveys and bids are expected in the next few weeks. Installation is expected to begin in mid-July and be completed prior to the start of the 2010-2011 season.
Food Service Division:
Although we missed our targeted food service division income for January by $2,349, which was due to the rainy days in January that kept golfers away, we exceeded our budgeted net operating income by $1,230. This shows the good and appropriate management by our team of Snack Shop managers, who work diligently to provide great customer service and a good product for an exceptional value, while still maintaining and controlling costs and expenses.
Cardholder Services:
Progress on the property audits increased in January. Mismatched owners are approximately 80% completed and are on target to be fully completed in February. This audit segment represents over 1,250 properties. The auditing of properties transferred into trusts is under way and is 5% completed. Additional resources will be directed to these properties when the mismatched owners are completed. Many questions have come up regarding the ownership of properties in trusts. In the March SunViews RCSC will publish detailed Q&A information in an effort to answer these questions and additionally, this information will also be provided via email to those signed up on the RCSC’s general email list.
In January, 24 members in collections made payments totaling $7,390. The due date for these assessments ranged from 2001 to 2009. The age distribution of invoices paid is very consistent to the past two months and show collections from both newer and older invoices. More aggressive collections actions by our outside collection agency began at the end of January in our continued effort to receive payments on outstanding assessments.
The total of all past due balances older than 30 days dropped by $3,775, or 1%, in January. Several factors contribute to this change: payments received through collections efforts, property audits, and bank foreclosures. In January, 22 properties were transferred to bank ownership.
Human Resources:
The Occupational Safety and Health Act (OSHA) Form 300A is currently posted in all RCSC work locations and will remain available through April 30 as required by the Act. The form contains a summary of work-related injuries and illnesses that occurred in RCSC workplaces during the 2009 calendar year. It also contains employment information regarding the annual average number of employees and the total hours worked by all employees in that year.
In 2009, the annual average number of employees was 355 for a total of 538,687 hours worked. This is an increase of 37,764 hours from the previous year. The increase includes the five snack shops that were brought back in house in March 2009.
The IRS codes have allowed flexible benefit plans to be designed in a manner that saves the employee and the employer tax dollars. In order to comply with all the regulations, the plan must be tested every year to help eliminate any top heaviness similar to a pension plan. A final testing of RCSC’s Flexible Benefit Plan shows the plan has passed all three tests to conform to Sections 125 and 129 of the IRS code for the 2009 plan year.
With the assistance of Pension Funds of Arizona, RCSC recently completed an annual Fiduciary Compliance Report related to our 401(k) Plan. The process involves reviewing analysis of our current funds, assigning a numerical total after all analysis is complete and blocking those funds not meeting our Investment Policy Statement from future investment. In addition, we move those assets to a mutual fund within the same classification that does meet our Investment Policy Statement.
For those who may not be aware, the monthly management reports are available on our website www.sunaz.com under the Board of Directors tab. Also, if you have not done so already, please let me remind you again to sign up on the RCSC email list where you can designate topics of interest. 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.