They Are Just Numbers...

Discussion in 'Sun City General Discussions' started by BPearson, Nov 22, 2022.

  1. BPearson

    BPearson Well-Known Member

    Anyone on the RCSC blast email list got notice yesterday of the "Planning Session" scheduled after the December 5, 2022 member/board exchange meeting. If you paid attention, you saw there will be no comments from the crowd, hopefully they will allow board members to ask questions.

    I know most RCSC members don't pay attention to either the bylaws or the financials. Let's face it, they are boring and insignificant in the grand scheme of our daily lives. I get it. That said, let me show you the footprint of the RCSC's cash balances from a year to year perspective.

    We know the argument; when the Sun Dial roof collapsed in 2006, we didn't have the money on hand to fix it waiting for the fight with the insurance company to pay up. It was a legitimate concern and was addressed as you will see going forward. None of these totals are related to the cash in the Preservation and Improvement Fund (PIF).

    The earliest financials we find online are starting with December 31 of 2008:
    2008: $2,511,155.
    2009: $7,549,007.
    2010: $7,840,973.
    2011: $8,977,227.
    2012: $10,44,640. *Plus 500k into the new Capital Reserve.
    2013: $8,885,003. *Plus 500K into the Capital Reserve.
    2014: $11,510,248. *Plus 500k into the Capital Reserve.
    2015: $9,894,266. *Plus 3.5 Million Dollars to reach the 5 million goal.
    2016: $10,147,831.
    2017: $12,307,609.
    2018: $14,719678.
    2019: $14,719,678.
    2020: $14,925,286.
    2021: $17,497,266.
    2022 (Oct): $18,865,303.

    What this shows us in the past 10 years (2012-2022), the RCSC has added $13 million dollars from the yearly budget schedules in liquid cash. It's never a bad thing to have cash reserves if everything is updated and clubs needs are met. The question you have to ask yourself is: Have they? Or, has saving money become more important than meeting the needs of the membership?

    By the way, the RCSC buys full replacement value insurance; which they should.
     
    LoriEllingson likes this.
  2. BPearson

    BPearson Well-Known Member

    Here's the rest of the story, the one that is never talked about, but should be. Prior to 2006, the RCSC always worked from balanced budgets. The money they took in, they spent. If i told you the board's back then also kept their own books (as did the RCSC), so they knew exactly where the "dues" were going, being spent was commonplace. They were tasked yearly with reviewing capital requests from clubs and routinely spent the proceeds on them.

    Clearly, to a fault. When the Sun Dial roof collapsed, they saw the error of their ways. They understood, they quickly addressed it and once Sun Dial finally opened, they started the reserve account. It now sits fully funded (since 2015) and there is currently 5.6 million dollars in it. That's a good thing, it's there for emergencies. The new GM wants to move 4.5 million dollars there to make it 10 million. Not sure why?

    Anyway, back to the evolution after 2006. Clubs yearly request upgrades, things they either want or need. The GM hired in 2006 continued the practice of yearly asking clubs to submit their requests and they were kept in a binder where board members could access them and see what they wanted and who got what? It was at least a practice that appeared to provide some transparency.

    If you look at the accumulated cash, you'll note years where there wasn't much movement. If you look more closely, you'll see years where the cash reserves grew rapidly. I know some board members took note and asked to see the book where these requests used to be detailed. They wanted to see who got what and when the got it, or if they got it. I also have heard, the information was slow and challenging in coming. Apparently the binder they used to keep has gone away.

    Not my job to pay attention to what clubs get assistance, but i do know there is speculation the RCSC is interested in downsizing the number of clubs. They had reached a high point a few years back, around 135. The latest figure is something in the neighborhood of 125. Based on the rapid acceleration of saving money the past couple of years, one has to wonder if club requests are being ignored? Of course if we don't know what the are requesting or who is getting what, then how we know what the RCSC is doing?

    The answer is simple; we don't don't know. What we do know is there is language in the bylaws that states when a club buys anything for the club out of their treasury, it immediately becomes the property of the RCSC. Some clubs have gobs of money. Clubs that sell stuff, has a never ending income stream. That's a good thing and the RCSC has another policy they get a piece of that revenue. Again, not a bad thing, but i defy you to go on the RCSC website and see anywhere any of that data is posted.

    I would and have argued, less money is being spent on club requests and more clubs are being forced to spend money from their treasury for the things they need, which immediately is owned by the RCSC. It would be fascinating to see how much money the RCSC is spending on clubs now compared to the "good old days."
     
  3. Linda McIntyre

    Linda McIntyre Active Member


    Thus, the corporate business model the GM espouses, or something similar? Downsize, make more money, make the people pay and the corporation grows. Not exactly "for the good of the community."

    I'm just going to leave it there for now!
     
  4. BPearson

    BPearson Well-Known Member

    What she said!
     

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