ISSUE # 142 • AUGUST 2013 • A PUBLICATION OF THE RECREATION CENTERS OF SUN CITY, INC. Viewpoint Lake is Alive! Stay in the loop! Even though it’s still summertime hot, the tranquil and soothing sounds of running water are back at Lakeview with the restart of the waterfall. Now is the perfect time to enjoy a picnic lunch or a lei- Get RCSC News Alert surely stroll up the hill. RCSC has also acquired two new paddle boats. RCSC General Manager Jan Emails, sign up at: Ek and Assistant General Manager Jim Wellman recently took “Lakeview Serenity” for a test drive (center) on a brisk afternoon and found windy conditions back to the dock required extra eff ort. www.sunaz.com These boats are free for Cardholder use. Email addresses Back in May, RCSC remain confi dential added 50,000 goldfi sh to Viewpoint Lake to help control midge INDEX fl y larve. The fi sh also provide fodder for predator fi sh in the News Page 01 lake. RCSC is consider- ing stocking other fi sh Financial Report/News Page 02 this fall. From the Board/News Page 03 Project Updates Page 04 Golf Page 05 Leo Dicino, RCSC Utility Worker, (above right) assists with the goldfi sh release to Bowling Page 06 control midge fl y. Sun City resident Jerry Ida (left) caught this grass eating carp on a fl y rod recently. The fi sh weighed 12 pounds and was released unharmed back into the lake. Nice catch, Jerry! News/Center News Page 07 RCSC goes solar – at no expense to current owners Monitored Activities Page 08 As more and more Sun City residents have chosen to lease photovoltaic no additional costs. What’s not included are costs for repairs and main- Events & Entertainment Page 09 (“PV”) solar systems for their private residences, they have become better tenance, which are expected to be minimal, and insurance on the solar informed about the process of doing so and how it works. However, RCSC panels, approximately $13K a year, which are also easily covered by the would like to explain what it means for RCSC to go solar and how it works. $56K per year overall savings. Club Events Page 10 One way to help fund commercial PV [electric] solar projects is with Federal This is not the only opportunity for savings. The lease off ers some Club Events/Classes Page 11 and State tax credits. As a non-profi t organization, RCSC is not eligible for options and opportunities for additional savings including the buyout of these credits. Therefore, an organization that was eligible purchased the PV the lease at 66 months for $4.4M. The Board will update the long-range Classes Page 12 systems and must maintain ownership for over 5 years in order to retain the plan in the near future. The RCSC Board of Directors has unanimously credits. RCSC has entered into a 15-year lease with the owner of the solar agreed to use Preservation & Improvement Funds (“PIF”) and take advan- systems located on RCSC facilities. tage of these opportunities for additional savings of over $3M. Again, it Tours Page 13 must be emphasized that this is at no additional cost to current Sun City The installation was also facilitated in part by the APS Renewable Energy residents since PIF funds collected from future home sales/transfers of Tours/Club Directory Page 14 Incentive Program. This Program off ers fi nancial incentives to customers ownership will be used for this expense, not funds from annual property who add Renewable Energy systems to their homes or businesses. The assessments. Program is funded by APS customers and approved by the Arizona Corpo- Club Directory Page 15 rate Commission. The annual incentive on the 14 PV solar projects on RCSC Currently RCSC has a lease for solar systems which are projected to property is estimated at $185K per year for the next 20 years, or $3.7M total. provide with energy savings, incentives, lease payments, insurance and It should be noted that whether RCSC installed solar panels or not, tax estimated repairs and maintenance expense a net benefi t of approxi- credits and utility incentives for alternative energy would still exist and be mately $40K per year to RCSC. At 66 months into the lease, RCSC will Cardholder Services paid for by utility customers and taxpayers. buyout the lease with PIF funds, creating an annual operating expense benefi t of approximately $650K per year for the next 14½ years, at which Lakeview Center The projected savings of electricity costs over the term of the lease aver- time the incentive will end and RCSC will be left with a projected net Monday - Friday ages $480K per year, while the lease expenses average $609K per year. With $450K per year savings. 8:30 am to 4:00 pm the APS incentive, this creates an average positive variance of $56K per year. So when RCSC Members asks, “What is the solar costing us?” RCSC answers RCSC believes that this investment in solar is not only good for the Sun 1st Saturday of the Month “Nothing!” The fi nancial benefi t provided from the systems is greater than City community, it is good for the greater Phoenix area as solar power 9:00 am - Noon the cost of the lease. And yes, all the parking structures are included with helps abate pollution and additional infrastructure costs such as new natural gas plants used for providing electricity. PAGE 2 FINANCIAL REPORT SUNVIEWS • AUGUST 2013 Updates Financial Report Presented on June 27 at the RCSC Board of Directors Meeting Period Ending - May 2013 Financial Report: For a more detailed fi nancial statement, visit www.sunaz.com/fi nancials Overall we have operated through May BALANCE SHEET STATEMENT OF INCOME AND EXPENSES 31, 2013 well within our operating and For the Period Ending May 31, 2013 For the Period of May 31, 2013 capital budgets year-to-date. However, Current Prior Current Prior three divisions have a negative variance Y-T-D Y-T-D Y-T-D Y-T-D from budget at the end of May and were Unrestricted Funds: Operating Income: short of meeting their net operating Cash Invested/On Hand/In Bank 9,843,778 8,090,942 Property Assessments 4,368,312 4,207,705 budgets year-to-date as follows: Food Cash Reserves 2,500,000 2,500,000 Transfer & Access Fees 358,500 368,524 Service Division was $549 short, Bowl- Sub-Total Unrestricted 12,343,778 10,590,942 Privilege & Guest Cards 367,983 340,818 ing Division was $1,629 short, and Golf Restricted Funds: Food / Liquor Sales 298,309 292,894 Division was $150,265 short. These nega- Preservation/Improvement Fund 13,667,152 9,035,814 Bowling Fees 289,736 306,159 tive variances are not all due to income Total Cash & Investments 26,010,930 19,626,756 Golf Fees 2,631,195 2,712,831 shortages or uncontrollable expenses; Other Current Assets: Cart Rentals 115,113 120,818 unfortunately in all three divisions it Accounts Receivable 2,256,249 2,245,249 Merchandise Sales 92,394 91,271 appears that May was not budgeted Deposits & Prepaids 213,739 214,117 Investment Income 194 327 for three pay periods which would Inventory 81,012 79,033 Activities Income 152,821 148,588 have kept both Food Service & Bowling Total Current Assets 28,561,930 22,165,155 Rental Income 175,008 171,990 Divisions from being over budget. In Fixed Assets: Contributions 13,010 13,230 addition, Senior Management has been Land, Improvements, Buildings 75,708,171 60,181,000 Miscellaneous Income 68,550 17,967 asked to ensure proper controls are in F, F & E and Vehicles 23,846,613 23,235,646 Total Operating Income 8,931,125 8,793,122 place for fi nancially managing staff . Less: Accumulated Depreciation (51,299,981) (49,280,781) Cost of Sales: Work In Progress 4,854,788 19,408,708 Total Cost of Sales 304,215 285,949 Bowling Centers: Total Fixed Assets 53,109,591 53,544,573 Gross Income $8,626,910 $8,507,173 Summer maintenance is being per- TOTAL ASSETS $81,671,521 $75,709,728 Operating Expenses: formed on all pinsetters at both bowling centers. Maintenance includes lubrica- Salaries and Wages 1,999,930 1,669,260 tion and rebuilding of all major compo- Current Liabilities: Payroll Taxes and Benefits 466,870 427,032 nents to ensure proper operation and Accounts Payable and Other 1,208,215 1,035,598 Repairs and Maintenance 2,350,915 2,231,591 minimal downtime during the busy fall Deferred Income 6,827,866 6,718,503 Utilities Expense 874,106 832,660 season. Pre Billed Assessments 1,581,075 1,548,450 General Operating Expenses 419,832 328,158 Recently the United States Bowling Total Current Liabilities 9,617,156 9,302,551 Total Operating Expenses 6,111,653 5,488,701 Congress (USBC) performed inspections Other Liabilities: Net Operating Income $2,515,257 $3,018,472 on all RCSC bowling lanes, approaches, Lease Purchase 82,705 114,361 Other Income: 38,144 375,502 foul lights and pinspotting. There were Total Liabilities 9,699,861 9,416,912 Other Expenses: a few minor issues at each center which Net Worth: Property Taxes 59,119 61,379 will be resolved before the beginning of Current Net Worth 71,971,660 66,292,816 Insurance 148,269 119,818 the fall season. TOTAL LIABILITIES and NET WORTH $81,671,521 $75,709,728 Other 5,224 29,019 Net Income Before Depreciation 2,340,789 3,183,758 Cardholder Services: Depreciation: 1,545,436 1,169,673 Payments made by property owners in NET INCOME / (LOSS) $795,353 $2,014,085 outside collections totaled just $3,543 in May with payments from 12 property owners.