Assessment Increase?

Did anyone catch the comment that was made on this site titled "And the answer is..."?

The comment was: "By now, some of you may know the RCSC will be proposing their budget for 2023 at the Oct board meeting. Included with it will be an increase in lot assessment from $496 to $525. Looking at their agenda online yesterday, you won't see any of those figures posted."

Turns out that this is not merely speculation. I'm sure you will read about this in the Minutes of the Budget and Finance Committee whenever they get published, but it's my understanding that the General Manager has, in fact, proposed this increase in his 2023 budget proposal!

Just what we need right now when we're paying higher prices on everything from groceries to gasoline is another 6% increase in our assessment fees. Many are already struggling deciding between buying groceries or medications! Especially for our elder members who are drawing pittance from Social Security!

Funny how we have to learn about these things? Hmmm!

And what about the many times we hear the GM tell us that we're 1 million dollars under budget?

 

RECREATION CENTERS OF SUN CITY, INC.

ANNUAL MEMBER MEETING November 1, 2022 – 9:00am Sundial Auditorium
MEETING AGENDA
Call to Order President Lehrer
Membership Quorum Verification
Secretary Lenefsky Approval of Minutes: December 13, 2021
Motions: None
Adjournment

So, does this means they do not want anyone to show up for the meeting, because we will not be able to speak. Do we need a quorum to even speak at our membership meeting?

 

It's actually 1.3 million dollars a year since 2016. BTW, in 2015 they had enough money in their end of year capital budget to put 3.5 million dollars into the reserve account. For our purposes, let's just look at 2016-Aug 2022. Less than 7 years and 9 million plus dollars shoveled into their cash accounts. One could easily argued they should have been investing that money in RCSC members and the clubs they belong to. That's what the RCSC used to do when they ran balanced budgets. The last gm blew that out of the water, she liked having cash in the bank so she could sleep good at night.

Now the new guy is arguing this increase has to pass and be in place by year's end. It's impossible to say exactly how much this will generate, somewhere between 800K and a million dollars. Apparently the argument is he can't afford to be doing the work that needs to be done without it. Odd, all of that money (20 million dollars) just sitting there but he needs a new infusion of cash to do his job right.

Let's be realty blunt here, Sun City is the best value in the country, none of us would argue that. The cry for years has been; look we haven't raised your rec fees (lot assessments). There's a reason for it...YOU DIDN'T NEED THE FREAKING MONEY. One of the budget and finance committee members has been spouting off on the Sun City Advocates blog, "it has to be raised." His argument is inflation has been crushing the RCSC. I guess the membership is chopped liver when it comes to inflation, somehow it's missing us.

Worse yet, he's bragging his increase is only $14.50. He must be grandfathered (purchased before 2003) so he is paying half the rate ($248) which makes his increase half. He'd be way smarter keeping his mouth shut because every single buyer after 2003 is paying the full lot assessment ($496) plus the full increase an additional $25. It also affects those folks who were grandfathered but the former gm changed the rules and said if they moved, they lost it (2009).

Let's be real here; lot's of single people (mostly women who are divorced, widowed and who have moved into Sun City) are subsidizing couples. I'm in no position to know who the increase is hurting or helping, but i do know it will impact many. I do know to cavalierly brag about only having the pay $14.50 isn't the smartest way for a guy on the budget and finance who's all in supporting this increase isn't the smartest decision he ever made.

 

My opinion...they have no ground no stand for an increase this year. I don't care about $29. I care about process and their last minute shenanigans. I care that Budget and Finance only meet twice a year and this is last minute. I care that this is the GM's budget and we don't have details about all the delayed projects. I care that we don't know about their new plans for multiple PIF projects. I care because two weeks ago he was complaining about juggling about all of their multiple and shifting priorities and it sounded like there aren't enough people. I care because this all sounds contrived and not well thought out.

 

I personally think that they are stashing away the money so as to be able to pay the payments on Mountain View Taj Mahal. Now they need more money so they can do the maintenance and projects that they have put on the back burner for years. It seems to me if they built the theater with the entrance on 107th and put the gym and pool on the back side there would be plenty of close parking for Hdcp. and elderly for the theater, swimmers and gym people should be able to walk a little further. It does not have to be so glamorous and the pickleball could stay where it is currently. I am sure the theater people just want a very nice venue and are more concerned about the inside of the theater.

 

Jean Totten as One Day At A Time

CAROL - You asked this question above and no one answered.

RECREATION CENTERS OF SUN CITY, INC.
ANNUAL MEMBER MEETING November 1, 2022 – 9:00am Sundial Auditorium
MEETING AGENDA
Call to Order President Lehrer
Membership Quorum Verification
Secretary Lenefsky Approval of Minutes: December 13, 2021
Motions: None
Adjournment

So, does this means they do not want anyone to show up for the meeting, because we will not be able to speak. Do we need a quorum to even speak at our membership meeting?

In the past when the quorum was not met (2009 - last year), the GM and the Board fielded questions from the audience after the "official" meeting had been gaveled closed.
This morning, the latest email blast went out from RCSC. At the very bottom is this statement: Community Survey coming soon. It will pave the pathway of our future. Details will be announced at the Annual Membership Meeting on November 1st. Hope that answers your question.

 

That means the Member's can also "Fix the time to which to adjourn" meaning the Member's can set a future date to reconvene the meeting. The time between those meetings can be used to acquire a quorum. The reconvened meeting is not a new separate meeting but simply the second meeting in a single session.

 

I’m all for anything Members can do to prevent the board from hijacking OUR meeting and conducting board business! It’s a known year-end tactic of a current board to sneak in things they want before a new board takes over in January.

 

Now that the "potential increase of $29" is out in the open, they'll (the RCSC) will have to address the elephant in the room. In talking last night with a long time member, she asked me if i thought the RCSC was going to tell everyone at the meeting about the increase. I laughed and said who knows, but now they have no choice. What good is transparency is there is none?

As we were talking, i thought back to last year when the 2022 budget was passed. I stepped to the mic and asked about the increase in the price for a round of golf going up a dollar for RCSC members already paying the full price? The board president looked at me like a dullard and said, that question has nothing to with the new budget. I was stunned. She hadn't taken the time to even read the budget and the attached proposal to increase golf rates. Mercifully, the general manager stepped in and saved her ass, explaining the budget indeed did include the golf hike.

Who's the freaking dullard now? Worse yet, who knows what they would have told us?

 

So...now that the proposed budget with the assessment increase has failed, it's my understanding that Director Mike Ege wants to change his vote!

It's going to be interesting to see how they maneuver around that issue because the Chair has already stated in the past that the Board meetings aren't actually individual meetings but only one meeting in a year long session, so that means the failed motion can't be raised again until next year!

I'm sure they'll figure out a way to present it again so that the proposed budget gets past with Mike's vote.

Bylaws and RR's are only applicable when they benefit the board!

 

At what point must the corporation have an approved budget to transact "business"? Or is approval required?

 

Good question Gary and if you recall several years ago a board member's husband made a bid deal out of their budgets seldom having any correlation to their revenues. Truth be told, they haven't for at least 6 years. In 2015 they had an "extra" 3.5 million dollars laying around at the end of the year to stick in the 5 million dollar reserve fund.

In 2016 and every year since then their revenues were always at least a million dollars more than what they spent. Most organizations function with balanced budgets, the RCSC is either under budgeting or, not spending on the projects members are requesting. It's almost funny to hear the gm tell us how much catching up they have to do. Why the hell would that be the case? Had they been spending money rather than hoarding it, we wouldn't be behind the 8 ball.

Your question is most likely untimely. Apparently the board members who voted for it have circled the wagons and they will get the stray vote back in line. Hope i'm wrong, i wouldn't bet any money on it.

 

So who talked Director Ege in to c

My opinion...their budget management is mismanagement. Also, they talk a lot about their fiduciary responsibility, but they cleary don't understand it. If they now claim they need to increase the assessment because of all the "catch up" work, and they've been hoarding money every year while neglecting serious needs in security and technology, plus ignoring the needs and/or wishes of the many clubs, then they do not deserve their positions. They are incapable of making decisions that are in the best interests of the members they are elected to serve. They are not protecting OUR assets - OUR investments. And pressuring Director Ege, if that is the case, is some of the worst type of board behavior - right in plain sight. I guess they really think we are clueless. If he changes his vote I truly hope hope he is prepared for a full throated explanation.

 

It appeared obvious to me Ege simply made a mistake. I believe he will make motion to Reconsider at beginning of next meeting and they will waive second reading to pass budget. He will not offer any explanation. A good opportunity for people to stand up and voice concerns about raising assessments when they are drowning in our cash, voice concerns about lack of transparency in not telling anyone this was hidden in the budget, and other concerns - but obviously the Board majority will not care what anyone has to say about it. Next Finance and Budget Committee meeting: Fri Nov 4 9am - but oh, yeah, you're not allowed to speak (or roll your eyes).

 

It's too late to make the motion to Reconsider, that had to be done on the same day as the meeting.

 

They won't let that stop them. No one in their right mind would be opposed to an increase if they need the money. The simple reality is they haven't been spending the money they have been collecting in years. Arguing you need money to do catch up is ludicrous when you haven't been able to spend the money they've been collecting. It's hard to argue they need more when they have a million plus a year every year.

The other one that causes me to grimace is we have been told repeatedly how busy they all are and they couldn't possibly do more now than they have been doing. Now we are expected if we throw a million more dollars at the they will magically get it all done. Go figure.

 

We went thru this with the creation of the Member/Board Exchange. She allowed (coerced?) Dir Fimmel to Reconsider and change her vote claiming the whole year is a session.

 

Exactly, Bill. None of this makes sense.

 

For the whole year to be one year long session it has to be established in the bylaws. (Go read RONR 8:4)