There's lots of comments and discussion going around about increases being front and center for next years budget for the RCSC. After attending the past 4 budget and finance committee meetings, and hearing we have some 20 million dollars hanging out there in deferred maintenance and some massive increases on employee wage rates (especially to be able to retain golf course workers), it's obvious an increase is coming. I know one poster here has suggested a Pay To Play concept. There's nothing new about that, over the years, folks who moved here and didn't use any amenities argued they shouldn't have to pay their fees. The idea never went anywhere, and it never should. As i pointed out to him, if it was such a great idea, why has no other age restricted community embraced the concept? The other day, i floated a suggestion we consider a minimal tax on clubs. It immediately sent some shivers up readers spines wondering why this wasn't just a repackaged Pay To Play? My answer was simple; Pay to Play means any time you use a pool, gym or go to a club room, you pay an entrance fee. My proposal took into consideration that many clubs have charged the same $5 or $10 yearly fee forever. Some of the smaller clubs without dedicated space are struggling to even maintain minimal memberships. On the other hand, some of the clubs have hundreds of members and are building massive bank accounts. Some of the clubs need it, because they have to buy/replace their equipment (when they do, it becomes the property of the RCSC). After thinking about my suggestion, i went back to the drawing board. Whatever money the idea would generate would be a pimple on an elephants ass. We know there's roughly 125 clubs, many of them small. It would be fairly easy to calculate exactly how many members each club has and how much money they have in the bank (clubs have to submit financials every year to the RCSC). With all of this out of the way, here's my idea: I served as the President of the Sun City Foundation for 3 years. It's an organization that has never lived up to its potential. It was created with grandiose plans that never materialized. For all practical purposes it helps members who have outlived their resources pay their yearly lot assessments. They only pay when members request assistance and prove they need help. At the Exchange meeting, a former board member lobbied for no or tiny increases due to all of the folks living here below the poverty level. I have no idea what the percentage is, but i suspect it is less than what it once was when properties here were so cheap. Be that as it may, Sun City cannot run it's massive rec centers, golf courses and related properties based on how little members can afford to pay. That's how we got in trouble the past ten years. I would suggest the board look at a small tax passed on to clubs (based on their ability to pay), a yearly charge ($5 or $10 per member) that would be used to help fund the Sun City Foundation. The RCSC would collect the money and turn it over to the Foundation to help those financially unable to pay a portion or all of their lot assessment. While it is a different approach, it recognizes those using the amenities (joining clubs) would perhaps be supporting those who aren't using them or aren't able to make ends meet. If it generated 50 or 100k a year, it wouldn't mean much to the RCSC's bottom line, but it would be a significant bump in what the Foundation could do.
Good to hear ideas on dealing with financial issues. Another one here: possibly close an amenity or two or three for various lengths of time. Why is increasing fees seem to be the only suggested solution? Tightening the expenditures ought to be seriously explored.
I think we all just need to wait and see where the budget numbers are headed before we start arm-chair quarterbacking. It's an honorable idea Bill and I kinda get it, but it's becoming just one more fee on top of another. First you have the proposed increase in PIF from $4000 to $5000, then you have the suggestion of adding an additional $1000 for title transfer fees to pay for capitol expenses, then we have the mandatory $525 dollar assessment fee, and if you decide to belong to SCHOA that's another $25 bucks, and now you want members who belong to Clubs to pay an additional fee besides their initial membership fee? I get it, but I don't get it?!?!?!? Seems like we're heading down a dangerous road. Just my opinion!
Someone should have thought about that before they purchased the Grand Center property and spent millions to develop and thousands to maintain! With the talk of the budget allocating its dollars so closely, I still wonder if the RCSC will be stashing any money away for future purchases such as, IF, BIG IF, the Lake's Club building should ever come up for sale again!
Tom. I don't think the suggestion was for both an increase in PIF to 5k and to $1000 for the transfer fee. I think they may have been an alternative to raising the PIF to 5k.
Still a lot of balls in the air. I know some of us have attended several F&B meetings and have heard several different proposals. I think we should all just hold our water until some definitive decisions have been decided on? I did get the impression, however, that they are trying to have as little impact on the assessment as possible. Time will tell!
Raising the transfer fee from $300 to $1000 is excessive when there’s no real justification other than, “We can!” Current RCSC Fees HERE
I don’t think there is enough variable costs in the operating budget to make a significant difference. The biggest variable of course is wages. As mentioned previously, the are probably at or below market rates. Cutting hours or wages risks losing employees. If you recall, even during the pandemic, employees continued to get paid. Maintenance expenses will remain almost the same as well as utilities because there is no savings in cranking the temperature up and down in the buildings. I’m not saying there aren’t some areas for saving, but I think a lot more consideration should be given to future spending.
I'm pretty sure that wasn't the discussion. It was raising PIF by $1k and transferring that to capital. There was a short "discussion" about considering a SMALL increase in the transfer fee, but pretty sure it was nixed - too many fee changes and/or increases potentially being proposed. I would be surprised if any transfer fee proposal resurfaces, but $1 000 was not the amount discussed.
Yup! My name is Tom Marone and shows up at the bottom of the comment. Not sure if it shows up on your cell phone?
If golfers get their way with no increases, we better figure out a way for the Foundation be prepared to write lots of checks. Crazy to think those who have never stepped on a golf course should be paying the freight.
The entire membership should be financially burdened enabling fewer than 5000 Member/residents to play the game of golf? Uh, this has to S T O P! If not NOW, WHEN?
Foundation annual assessment assistance is usually one time only! Application eligibility became more difficult under Wilson’s amendment. Application HERE Foundation website HERE
JedT365060 has cyber-security skills…202 new posts overnight! Was 477, now 679. None since 7:54am this Wednesday morning, 10.4.23.
