Public Income Statement

The Public Income Statement for the month ending November 30, 2024 that was emailed in the Blast last week and probably out on the table at the Board meeting (I wasn't there so I can't be sure but they usually have copies available - copies in Black/White) was a bit alarming to read.

I have never, ever professed to have a thorough grasp on the budgetary documents that RCSC puts out. But after seeing this latest document, I'm a bit concerned.

In case you didn't see it, almost one entire column was in RED. And if you were at the meeting or watched it on YouTube, you heard Director Collins ask Management how they were going to handle the Shortfall for this year. We heard Kevin McCurdy remind us that we had the Carry-Forward money - what the previous GM used to call his Rainy Day Fund - to fill that void.

We also heard Management and the Board admit that they needed to do a better job of keeping an eye on expenses each month as we move forward.

So, I wonder how much we are going to be paying triArc Architecture and Design to perform a series of “visioning forums” over the next month to obtain ideas from members on what they want the future of the Mountain View Recreation Center to be. Date/times/locations to be announced soon? This item was written in the Management Report by the GM but not discussed. I had hoped that just one Board member might raise questions about it, but unfortunately, this Board didn't.

 

Jean, I will try to simplify what you are looking at. A good rule of thumb when looking at numbers on a financial statement is what is the story behind the numbers. Starting with this, the numbers are for and through November which is not the entire year, so wait until next month when you have a true picture of 2024. Then we can see the story behind the numbers.
A few items jumped out at me when I looked at the P&L (income statement). The first was concerning assessments. While the number is behind our projection, it is over $1M more than last year at the same time. Next was golf. It is the only large money generating activity the RCSC has and it is totally dependent on weather. If I remember correctly we had a very wet February which cost us players and summer which seem to start in April was brutal to put it politely.This affect revenue up and down the line for golf. The last thing concerned interest income. The income was $75k larger than last year due extremely favorable interest during the previous years.

I understand your concern seeing a large amount of red ink, but it is the year end statement I want to see as that tells the story for the past year and could be a guide for the next year’s budget. Any questions type me.

 

The TriArc architects were at the Christmas Celebration last week at Sundial. They had questions that Members could answer. I was told be an RCSC Director that TriArc was doing this on their own and it wasn't costing RCSC anything. Plus they had good cookies!

 

I was surprised when I heard him say that. Even for work at home I get 3 estimates. Maybe that's why someone on Nextdoor said that contractors drool at the thought of a contract here.

 

Lots of truth there Eileen, but the one thing that won't happen anytime soon (or ever) is we (the RCSC) will go broke. While many of the safeguards were removed where the members voices were stifled (some have been restored BTW), our Articles of Incorporation (that can only be changed by a vote of the members) insures we remain solvent with spending limits. We simply cannot go into debt for more then $750,000 without the members voting. While that's a lot of money to you and me, for them it is a drop in a very deep bucket.

And for anyone looking at the income statement for the community, we are incredibly healthy financially as an organization. We show/list assets in the 150,000 million dollar range but realistically they are worth arguably 5-10 fold of that. Hell, we have a reserve asset study done in the 80's at the museum where the valuation was well over 100,000 million dollars.

Director Collins is spot on; bids are required at a threshold (25K, someone can look it up if they want), but the larger point he made was we need to start aggressively bidding projects. Years back they developed a preferred vendor list and then got lax in enforcing how it was administrated. And, we've long been rumored to be easy marks for contractors because all too often they knew we had money and weren't all that diligent in oversight. Finally, we cannot allow the obligation to bid projects be gamed by letting the GM play a shell game on projects. The thresholds are there for a reason.

Back to our finances. We have 36 million dollars in the PIF and it is growing daily. We also have the CIF, which is also growing daily. For those who don't follow along much, the RCSC has a guaranteed revenue stream simply because when we buy here we all sign a facilities agreement guaranteeing everyone pays the lot assessment. While i dislike the rentals being a thing (for investors), it to is just more money in the bank for the RCSC as they get the lot assessment from the owner(who doesn't get a card for that property) and they may sell a privilege card(s) to the renters. Money coming in hasn't been our problem; how and where they spend it has always been at the core of the challenge.

It's also good to hear and see the Sun City Foundation step up their game. It's been vastly undersold and underutilized. With the increases we are seeing from the RCSC, it is pretty clear the needs of those living on the edge will need more help. We established guidelines and criteria years ago and while some whine about the paperwork, there needs to be thorough vetting to insure the money goes where it is most needed. For example, if you own a Sun City home with a valuation of $300,000 (free and clear), should the RCSC be paying your lot assessment? Seriously, i would like an answer to that question.

All of which tells me Sun City is perfectly positioned to be relevant well into the future. It's not our grand parents Sun City any longer and it will never be. But i will address that in a different thread.

 

So if a home is a person's only asset and they own it "free and clear" but their income is below poverty level and they run into financial trouble they can get out of with a little help (I am not talking 10's of thousands) you would deny the assessment fee, a onetime thing. So you would make that person take out a HELOC, pay the fees for the paperwork for let's say a few thousand the person needed? The fee for the paperwork would be more than the assessment fee. Wow! Just wow! That is just a pathetic way to represent Sun City and the good you say it does for the residents. Some folks just need a little help to get through a rough spot.

 

One of the problems for some is they are frankly clueless when it comes to what the Foundation does. Why should anyone understand an organization, that in many instances they aren't even aware exists, let alone why, what they do or how they do it. For whatever reason, the RCSC wasn't much into promoting how valuable it is or could be.

Of course the other problem stems from those who see everything in black and white; little in life is, as the various hues of gray almost always bleed through. The classic example can be found by thinking anytime an RCSC member applies for help, it is a one off occurrence. Once i became the president of the Foundation, the complexities of every request had to be considered.

The most obvious was the age factor. During my years (2012-2014) we had just come out of the 2008/2009 housing collapse. Sun City homes were selling really cheap. I recall stopping behind Fry's and picking up a realtor sheet for a 900 sq 1/1 selling for $25,000. Single family homes sold all over the community in the 100K price range and twin homes and quads being sometimes less.

The result was, lots of new buyers who lost their homes in the crash, moved here on really tight budgets. Some had escalating mortgages, while others just needed a roof over their head. As we interviewed those seeking help, all too often we found owners who were in a hole and would never get out of it. Paying their $300 lot assessment was the proverbial pimple on the elephants ass. They simply could not afford to live here.

Then it got worse, because we also had seniors who had been here a long time, often lost their spouse and their income and were up against it financially.The oldest of them ones were not going back to work. The lucky ones owned their home free and clear. They didn't have a mortgage but property taxes were increasing, as was everything else. It had long been policy to review their financials, it still is.

Here's why: An 82 year old could well live another 10-15 years. As we looked at their income and their expenses, they often had little hope of making ends meet. We had the money to pay their fees, the question for us was, how long? It's an impossible question to answer, but pretending it didn't matter was foolish. By the time i left in 2014, home prices had spiked pretty good. It wasn't unusual for a 3 bedroom 1800 plus Stanford to be selling for over 200K.

When we factored all of that in, the question was, should the Foundation be obligated to pay the fees until the owner died or left? And so we are clear, if a person applied for assistance and they had $200,000 in the bank or in stocks and bonds we didn't even give it a second glance. Which obviously begs the question, is there a difference in a one 200K asset compared to another? Which is why i asked the question; it's not always an easy answer.

And to be even more clear, sometimes one-offs need is a year where a member has just had bad luck which was always evaluated. That's why the Foundation requested a deep dive from a financial perspective. It was never about one year, but more about their future and what were their best options?

Like most of life; lots of shades of gray.

Sun City=Community before corporation, people before politics.

 

Foundation annual assessment assistance is usually one time only!
Application eligibility became more difficult under Wilson’s amendment.

Application HERE

Foundation website HERE

eyesopen, Oct 1, 2023
#17
Janet Curry likes this.

 

I just delivered packets of gift cards to seven individuals. I agree with Josie. Why would we force people out of their homes because they own them, especially when others had donated the money for that purpose? All were neat, modest homes or what Del Webb called garden apartments. These individuals were so genuinely grateful for the help given to them through the generous donations of Sun City residents. All were "up in their years", one over ninety who had lived in her home for over thirty years. Each person received either $275 or $300 of gift cards. One told me that the gift cards would allow her to purchase gifts for her grandchildren. Another was glad I came before she went to the grocery store. A kind gentleman had just been released from the hospital the day before. Another had a thank you note already written. It was a heartwarming experience!

 

Your whole post says you know more than anyone else. You get to decide what people need. You decide if they can see the whole picture. You are referring to 2008, it's not 2008 anymore and you can't apply the 2008 economy to the 2024 economy, but for some reason you prefer to live in the past. You are not a financial advisor. You are not always correct. A deep dive? For a one time $500 gift that could make or break part of a person's year?

I am so glad we have a New BOD coming in to run SCF. Janet and Linda get it. You and others here will never get it. I raised concerns about volunteers having access to my private financial info. You said no one gives a shit who you are. SCR said, not directly to me but to everyone here STOP CRYING POOR MOUTH. The fact is you failed to plan! That drew some blow back! Then I get this from Carole Martinez who I have never met

"As I sit here, in my recliner, with 17 stitches in my ankle and in dire pain, I am so grateful to hear your words of encouragement.
I will reiterate my statement there is help for those who seek it. People who expect something for nothing, such as yourself Josie, get exactly what they need, nothing. You seem to want it all your way, and on a silver platter. Life doesn’t serve it that way and for those that are struggling can get services they need. It’s a phone call away but the recipient has got to be a willing participant. Expecting something for nothing seems to be your mantra and do hope it works out for you. DO NOT reply to me anymore, I have blocked you and will not be seeing your drivel again.
SunCityGal, Thursday at 5:37 P

Response:

Something for nothing???? Why is it there then? I have lived here for 20 years and have never asked for any help. I did not have anything to do with your injury so why even bring it up unless you are looking for sympathy. You know nothing about me yet you choose to judge me. I had cancer and got in a little bind. The Great Sun City was not here to help. Take care of you owie. A shot of Jack might help with the pain and the attitude.

If you want a real eye opener join Nextdoor and check out the number of people who are in need.

Last edited: Thursday at 7:53 PM
Josie P, Thursday at 5:52 PM

Some people just don't get it. I was not asking for pity. I was asking for temporary help, which I did receive from companies who cared and understood. So I received a little help for 9 months. Don't need it anymore so I stopped it.

The more I see what goes on here the less I like it. Now that I am getting out a lot more I will try to get a part time job, and volunteer some time, but my time will not be given to Sun City, it will be the food bank or the hospital. People who actually care and have feelings.

 

With all due respect Janet, i know you are smarter than this: "Why would we force people out of their homes because they own them, especially when others had donated the money for that purpose?" Giving members gift cards donated by members for the express purpose of helping them through the holiday is an incredibly wonderful program. That said, it has absolutely nothing to do with "forcing" anyone out of their home. Nothing.

The question put in front of you is one you will be faced with while serving on the board. Let's try this again: Do you see a difference in an asset of cash in the bank, stocks and or bonds the same as the asset of a home owned free and clear that? I won't bother to affix values to either, but it was a question we had to deal with while serving on the Foundation board. I suspect you will as well.

It's easy to just say pay it if the owner falls below the poverty guide lines. Does it matter to you if they are 65, 75, 85 or like some of the gift card recipients, over 90? Again, emotionally the easy answer is just cover the lot assessment. If your answer is just pay it, do you see a need to place a limit on the number of years, or is it until they die or move?

There's no right or wrong answers Janet, i never said there was; but you will need to have answers in your new position as a board member. My remarks were simply in response to the constant whine by a member who knows virtually nothing about anything regarding Sun City other than what she reads on Nextdoor or hears from her handful of neighbors and then try's to fashion her comments to make Sun City a horrible place to live. Sorry, it's not.

I've posted this before and you can absorb it anyway you want: One of the Foundation board members did an interview for assistance. The person was in a tough spot financially and while looking over the information provided he/she asked if the member had ever inquired about a reverse mortgage to help her meet her needs (beyond just the lot assessment). The response that came back always stuck with me: "I couldn't possibly do that, i want to leave the home to my kids."

Like i said, there are no right or wrong answers, there is however an imperative those of you making these decisions will be in a position to help those who most need it. That was always the basis we operated under, i suspect you will as well.

 

Once again you are missing the point. You can use my name, we all know you are referring to me. The whiner who knows nothing about how the Foundation works, except for the fact I worked for Sun Health Foundation for 17 years.

My remarks were simply in response to the constant whine by a member who knows virtually nothing about anything regarding Sun City other than what she reads on Nextdoor or hears from her handful of neighbors and then try's to fashion her comments to make Sun City a horrible place to live. Sorry, it's not.

Rule #4

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  • It is intolerable to make any derogatory comments about any person based on religion, race, age, gender, etc. Please remember this is a large community with many members from all parts of the world, representing all people. Please refrain from posting messages that contain potential hot topics known as polarizing arguments. A tone of “kindness” is appreciated for all discussions.

My point was why have someone do a HELOC (not reverse mortgage as there are so many downsides to them and should only be used as a last resort) for $500. Just filling out the paper work for a HELOC costs a lot more than $500. It has to go thru a title company, yada, yada. Maybe look up the definition of empathy.

 

Agree, Bill - wanting to help someone that falls short one or two years because of a large expense/illness (and may own their home free and clear) is different than allocating foundation dollars to someone who has an answer such as the one above. Where are the kids to help with the lot assessment (of the home they will inherit)? The person wants "others" to ensure the kids' inheritance? This is someone that is financially and it appears socially inept.
While it's not a great option, reverse mortgage is an option. If we were unable to afford living in our home, we wouldn't expect others to subsidize our ability to stay - particularly so we could leave an inheritence. We would have to consider other means of support/options, and unfortunately if a reverse mortgage is one, so be it. There are options to take out just a small portion against the home, as I understand.
Suggesting a consult with a professional that can provide financial advice would be better in the case you recall. Regardless, a tough conversation to have for certain. Parable of the Talents in Matthew 25 a good read.

 

Socially inept means lacking the skills to interact comfortably with others in social situations. It can also be referred to as social awkwardness. Some signs of social ineptness include:

• Difficulty understanding social cues
• Feeling awkward in conversations
• Having trouble making friends
• Unintentional silence

I agree wanting to give your home to your children is not a good reason. I don't know what other issues this person had. It seems there is a tendency to be judge juror and executioner among some folks. I have no clue how a person you have never met can be judged as socially inept.

That is one example cited. I noticed that no examples of the people helped were mentioned. In my case I needed help for less than a year. APS stepped up and I asked SCF for a 1 time fee payment. The flogging I received here was interesting to say the least. My home is paid for, I have no children, and the home will be for when the time comes I need to be in a facility due to needing help with ADL's.

Reverse mortgages come with a lot of caveats and can cause financial distress down the road. A HELOC would be crazy to use for a small amount needed as you pay current day interest rates on payments plus 2 to 6% closing costs and there are title searches etc. The cost would be higher than the assessment fee.

I don't need financial help anymore, but I am thankful we have a new board for those who do. Also there are a lot of avenues out there for those like me who just needed a little help for a short period of time that don't judge, they just help.

Merry Christmas All!

 

Thanks for the response from both you and Emily; i'm disappointed Janet didn't chime in. Perhaps she is busy. In any event, from my three years serving as the Foundation president, our goal always was to help those that needed it the most. The only way to do that was through careful examination of their financials. While looking at their tax returns is a starting point to see if they fall under the federal poverty guidelines (if memory serves me, we used 125%), it's just the first step in the process.

One of the discussions we had was whether we could include a financial advisor for those who were in deep trouble. We opted not to push them at/to a reverse mortgage for obvious reasons but we did encourage them to reach out to the Sun City Community Assistance Network (CAN) or to stop by Olive Branch Senior Center. Both at the time were invaluable services within the community (as they still are).

Much like the old line from Naked City, "there's a million stories and this is just one of them." The reality of hard times across the country (not just in Sun City) is a reality. The Foundation board members have always tried to be diligent and fair in their assessments. Once an evaluation was done, we would collectively review their findings and if we were to error, we would try to be on the safe side of assisting them. Not a perfect system by any means.

I spent a couple of hours yesterday going through 20 years of DEVCO ad slicks, truly amazing. The one obvious that jumped off the pages at me was how the company used every, EVERY, thing as an opportunity to market and sell Sun City. The Foundations greatest shortcoming was its failure to promote it. I think the Santa program is a great start, and it should be the catalyst for more effective exposure.

 

Bill people who fall in the "below poverty" level are not required to file tax returns.

 

Yes, Josie, that is one way to define socially inept. Here's another definition of socially:

What does socially mean in simple words?
:in a social manner. 2.: with respect to society. 3.: by or through society
:in a social manner. 2.: with respect to society. 3.: by or through society​

All I was saying is that I would not expect my social community to support my desire to leave an inheritance. Those words would never come out of my mouth in that situation . . . . and I'm not judging anyone - just using discernment and sharing a perspective that the person may not have a clue in these areas. My read of it was not one of "taking advantage" of any org or person . . . just the mindset the person had . . . . not a mindset one would expect in society.

I've had people that I've helped out of homelessness come back to try to pay me back for all the support I had provided to help them . . . . while I wouldn't take it, that is someone that understands social responsibility.

Merry Christmas to you, also!

 

I've lived here since 2019 and participated in the Santa program every year but this year. Why not this year? Well, I guess that I didn't understand it! In a FB post, Janet mentioned that she had delivered gift cards to the residents from the program and received back so much love. What caught my attention, however, was that she mentioned that the amount that they gave each person was not just the suggested donation of $25.00; it was more like over $300. No where had I ever read that the Foundation combined cards to give more. I was under the impression that all each person got was a $25.00 gift card, and that just didn't make sense to me. I'm just wondering if other Members of the community thought the same thing, especially after hearing that one year, the extra cards left over went into a safe for the next year. When I inquired three years ago if I could put more on the card than $25.00, I was told by someone at the Corporate Office that they really recommended $25. That, too, made no sense to me. Hopefully, with the addition of some very savvy individuals to the Sun City Foundation Board, Members will hear more of how the Foundation is going to work.

The other thing that I always thought about regarding the Santa program, wouldn't it be even better if either the Foundation director who gives out the cards or another "volunteer" would offer to take the recipient to shop and then treat them to lunch? I suppose that there is a loophole somewhere that I don't know about, but rather than just dropping off gift cards, more could be done at that time.

And once our Foundation gets all squared away, I will add it to my list of Sun City organizations that get a little gift from me around the holiday time. The gift gives to them, and I can use the AZ tax credit for my family.

 

Jean, I was apparently asleep at the wheel on this one focusing on all the other beautiful issues. Is this another area that could use beefed up marketing and communications or was I just clueless on this being engrained in other things?

Janet's experience sounded wonderful and rewarding, and I like your idea of throwing in lunch. I'm sure there are volunteers that would enjoy sharing love and kindness to those that benefit from the program. I would be one.

 

This program has enormous potential to increase the Foundation's exposure and increase the likelihood for the program to grow in size and scope. My wife told me she went to Bell to add to the tree and asked if she could fill out a card indicating the donation was earmarked from someone other than her/us. She had attended an annual Christmas party where the host covers all of the expense. My wife wanted to make the donation in her name as a thank you. She was told that wasn't possible. It sounded like a great idea and hopefully next year the foundation can add that component to their efforts. I know it's a small thing as those getting the cards have no idea who they came from, it is however a way to stimulate more donations.

The other thing the Foundation needs to do is use the comments (not the names) from those receiving the cards. Many of us living in Sun City aren't often in touch with those who struggle. The awareness of just how valuable this program is who need it the most could explode in 2025. Sun City was always built around generous residents giving time, energy and yes, money.

As Jean mentioned above, there is unlimited potential is we tap into the community's generosity.