I'm not a numbers guy, frankly i hate them. I suspect most of us feel that way. I even suspect some of the board members hate being numbers guys. Unfortunately, it's part of their job in oversight. Sadly, it all too often is lost in the shuffle of important things like the length of a pool noodle and an extra ball in your pocket while playing min-golf. (I know, sounds like i am being snarky, my bad). The other day at the board meeting, Director McAdam asked about golf and having a better accounting of the outside play. Seemed reasonable to me, given we subsidize golf for members even though the RCSC never voted to do so. A further extension would be to question why in the world would we subsidize golf for folks living in Peoria or Surprise? Back a month or so ago, as i was plowing through the RCSC's financials, i came across an interesting tidbit that most would never ferret out. I was so surprised by it, i reported it on TOSC (and we know management and some of the board read this site; that's a good thing). I can go back and dig up the link to it, but for now, the thing i found that was disturbing was contained in year end financials from the RCSC website. In 2020 and 2021 i had added up every revenue source from golf and in both years they had generated just over 7 million dollars. That included pro shop sales, driving range sales, cart rental and each of the reporting streams of income strictly tied to play. The categories were: 1). Prepaid green fees. 2). Prepaid greens fees non-resident. 3). Daily green fees and surcharge. As i compared the two years, 2020 and 2021, i noted the prepaid green fees non-resident had about doubled. A golfer had told me those living outside Sun City had figured out buying a full play pass could save them a ton of money over the course of the year. For those who don't know, non-residents can buy unlimited play for $2000 a year and $2500 with a cart. I had broken that down to simple stats; If an outside golfer played 100 rounds the cost was either $20 per round or $25 per round. If they somehow managed to play 200 rounds, the numbers halved; $10 and $12.50. What was most staggering was the sale of outside full play passes had roughly doubled the yearly revenue. For a rough calculation, they went from 50 to 100 passes sold. That's a lot. This is all yesterdays news. I had posted it and like most things golf, no one seems to care. Oops, that's not quite right. Apparently someone from the RCSC cared. Here's how i know: The February 2022 financials had changed from just a month earlier in January. The new report still showed a line item for prepaid green fees non-resident, but the line item was blank. However the prepaid green fees resident now had grown in totals equivalent amounts to the prior year when adding the two categories togther. Far be it from me to accuse anyone of intentionally changing the reporting system, but it is suspicious. Given Director McAdams comments relative to golf and outside play and then the subsequent push back by the board president, it does cause one to speculate doesn't it. Every director should know how much outside play there is and exactly how much the non resident is paying to play our courses. Sadly, when it comes to golf, the directors apparently want to be like the lovable Sgt. Schultz (played by John Banner) in Hogan's Heroes. Let's say it all together; "I know nothing." Sorry gang, you were elected to know and some, perhaps all of you best start getting up to speed. Ask your self this; Is it right for a 45 year old living in Peoria be able to golf on our courses for $20 or $25 a round (or less) while a resident in Sun City who has paid their PIF, paid their yearly assessment and when they golf once a week, pay a higher rate ($34 winter and $22 summer rates).
It doesn't have to be a 45 year old living in Peoria that's getting a break. I've long complained about the advantage Royal Oaks residents have when it comes to using the RCSC amenities. Royal Oaks has expanded so much over the years and most residents are quite active. The new expansion is "luxury" apartments and the price tag won't be small to live in one. There is no need for a resident in one of the non-assisted living units to buy a privilege card when all they care to do is golf or bowl. Both of these activities can be enjoyed by paying a small increase over what RCSC Members pay. None of the RO residents have to buy a privilege card and the whole Royal Oaks facility is exempt from paying any property tax. Ugh....that's just not fair to those of us footing the bill for both RCSC recreation and county safety costs.
Good point aggie and one that has mystified me. Even while serving on the board, i was unable to get the answers. Apparently each of the various continuum of care options out there have different agreements. Not surprising as they all came at varying times and each has their own unique characteristics. Some are ownership driven (ElDorado), others are straight rentals and still others like Royal Oak are buy-in without ownership. I know years back i had some friends who moved to Royal Oak yet still owned 3 homes in Sun City. Their official residence (mailing address) was Royal Oak. They moved into it in the fall and when they went to vote in the RCSC election they were told they couldn't because they were "privilege card holders." Yikes, took a piece out of my hide. I know the bigger issue for you is the tax exemption they get at Royal Oaks due to their religious affiliation. The simple reality is they are making boat loads of money and why they have been able to buy up whole blocks of Sun City real estate. It might be time to try and get a handle on usage of RCSC amenities. I have been through their facilities many times and it truly is self-contained. I just have no idea how many or how much revenue the RCSC generates from those living there. Not to minimize your issue, but the idea someone living outside Sun City getting cheaper golf rates than those that are members of the organization flies in the face of logic. That's what happens when you place a bigger value on the number of rounds played than the amount of money paid to play the game. That's what happens when you subsidize a game that was supposed to be revenue neutral. Sorry gang, it's just time to fix that.
For all of the RCSC board members and management people following this site, i would encourage you to quickly get up to speed on the 990's posted on this site. You don't need to access them here (though you could). Just ask the general manager for them and he can provide them for you along with any foot notes and work sheets they used to determine the numbers they reported (especially regarding golf). One of the obligations for board members is to be totally aware and well versed in expenditures. For whatever reason over the years, that aspect of the board's duties has been down played. Nope, not being critical, just being realistic. You need to know; it's part of your job. Oversight is essential as we move forward, money will be tight with the PIF dedicated to the Mountainview project. The capital expenses are well healed, to say the least, but virtually everything else that need be done will be coming from there. Finally, a suggestion for one or all of the board of directors; request the 990's from 2020. We were only able to pull them through 2019. We know they have been filed and having access to them and the data on them will help you answer questions you will be getting from the floor. The membership/board exchanges will indeed help the community at large better understand how Sun City works. That's a good thing.
Come on Bill....the last time a director questioned the RCSC financials she was kicked-off the board!
Spot on FYI, Barbara Brehm questioned the financials and the rest of the board saw it as a personal attack on the gm. How we got so far removed from directors doing the job they were elected to do still mystifies me.
