“your oil’s fine, but your blood - sun city west active adult … · 2009-08-31 · health of...
TRANSCRIPT
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“Your oil’s fine, but your blood-sugar level’s a little low.”
We’re a Team – With Distinct Responsibilities
Governing Board Management (GM)Hires a General Manager Hires Staff
Drafts/Adopts Policy Follows Policy
Oversight of Operation Manages Association
Reviews/Adopts Budget Proposes/Manages Budget
Seven Standing Committees Works with Committees
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1. Managing and following the Governing Documents▪ Bylaws, CC&Rs, Articles of Incorporation
Rules, Regulations and Procedures Ensuring compliance with State and Federal Laws Seeking legal advice when necessary
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2. Managing People Goal: Happy, productive & goal-oriented employees
3. Managing Assets
Protecting Facilities $150 Million in assets
Updating assets Maintaining existing assets
Managing Money Budgeting Hiring CFO Constantly monitoring expenses Ensuring GAAP is followed
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4. Working with Governing Board Board sets policy; GM carries it out Nine-directors = nine personalities GM Reports to the President Monday Ops Meetings Committees advise GM/GB Leadership is all about relationships Meetings, meetings, meetings
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5. Managing Problems Safety first
Information sharing is key
“Seek first to understand, then to be understood.”
- Steven R. Covey
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6. Planning for the Future
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“Never, ever, think outside the box.”
Long Range Planning Issues
1. Changing Demographics
2. Infrastructure Health/New Projects
3. Coordination of Community Service Agencies
4. Our Anti-HOA Planned Community Legislature
5. Water Concerns
6. Bylaw/CC&R, Age Restriction
7. Too Many Courses?
8. Energy Conservation
9. Health of Sun City West Businesses
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6. Planning for the Future
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When planting your cats, make sure to space them 6 inches apart
so they have room to grow.
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• Emails• Letters• Meetings• Walk-ins• Editorials• Social Media
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• PORA handles initial complaint (except age violations)
• May require some legal action• Face to face meetings• Legal/Court action
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Amenities & Facilities Valued at $150,000,000
• 7,035 Acres• 11 square miles• 17,106 roof tops• Population – 31,000• Annual budget $25 million• Four recreation centers• 3.2 million sq. ft. of asphalt• Seven Association golf courses• A 30-lane bowling facility with pool,
billiards and snooker tables• Private Library for membership• Two mini-golf courses• Four fitness centers• Six swimming pools
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Amenities & Facilities Valued at $150,000,000
• Six whirlpool/spas• 21 tennis courts• 5 platform tennis courts and
24 pickleball courts• 2 racquetball courts• 3 walking tracks (1 indoor
and 2 outdoor)• Woodworking shop• Metal working shop• 4 grass lawn bowl courts• 14 bocce courts• 5 shuffleboard courts
• Softball field• 2 volleyball courts• 2 dance ballrooms• Wii games• 2 dog parks (1 for large dogs
and 1 for small dogs)• Stardust Theater• 111 Charted Clubs
• You can’t please everyone.
• Be flexible.
• Check the Governing documents.
• You are not a policy-maker.
• Surround yourself with good people.
• Have a good sense of humor
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Keys to Managing a $25 Million Company
SUN CITY WESTANNUAL REPORT - JUNE 2018
General Manager
Mike Whiting
THE WOODPECKER’S GOT TO GO
• We’re in great financial shape
• No Debt
• We maintain our amenities
• Sun City West Standards
• We have over $22.5 million in reserves
• We educate our residents
• Forums
• TORCH Citizen’s Academy/ Rec Center News / Website
• Weekly/Monthly Board Meetings
• We plan for the future
• 5 Year Financial Plan
• Reserve Study
• Both are updated yearly
• We’re Tax Exempt
• No Federal or State Corporate Taxes
• Reduced Property Taxes on Golf Course Properties
• We invest our tax savings back into the Association--
• Recreational & Golf Activities
• Recreational & Golf Facilities
• Recreational & Golf Equipment
SUN CITY WEST IS 40 YEARS OLD
▪ $115 Million in Assets
▪ $65 Million in Assets Need Replacement over the next 30 years
ASSETS
151 Roofs at 302,571 Sq. Ft.240 A/C Units in service
ASSETS
2,012,238 Sq. Ft. of Asphalt Parking Lots
ASSETS
257,074 Sq. Ft of Flooring
ASSETS
Irrigation Systems (7 golf courses,
streets, landscaping)
Wells (7 at $1.5 Million)
1,000,000 gallons per course per day, 300 HP motors
ASSETS
Golf Equipment
123 units of golf course equipment includes 56 mowers (does not include any golf cars)
ASSETS
276 Sand Bunkers
Tennis Complex
16 Courts +
4 Platform Courts +
6 at Kuentz
ASSETS
Pickleball
8 Courts at RHJ +
18 Courts at Palm Ridge
ASSETS
DEL WEBB CURRENT POPULATION
AND MEMBER DUES COMPARISON
HOW DO WE STACK UP?
SUN CITY, AZ
Community Size (rooftops)
27,500
Current Member Dues
(based on 2 owner household)
$496
SUN CITY, GEORGETOWN, TX
Community Size (rooftops)
9,900
Current Member Dues
(based on 2 owner household)
$1,130
SUN CITY ANTHEM, NV
Community Size (rooftops)
7,451
Current Member Dues
(based on 2 owner household)
$1,212
PEBBLECREEK, AZ
Community Size (rooftops)
6,200
Current Member Dues
(based on 2 owner household)
$1,224
SUN CITY GRAND, AZ
Community Size (rooftops)
9,802
Current Member Dues
(based on 2 owner household)
$1,370
SUN CITY SUMMERLIN, NV
Community Size (rooftops)
7,779
Current Member Dues
(based on 2 owner household)
$1,392
SUN CITY LINCOLN HILLS, CA
Community Size (rooftops)
6,783
Current Member Dues
(based on 2 owner household)
$1,452
SUN CITY FESTIVAL, AZ
Community Size (rooftops)
7,220
Current Member Dues
(based on 2 owner household)
$1,668
SUN CITY ANTHEM, AZ
Community Size (rooftops)
3,800
Current Member Dues
(based on 2 owner household)
$1,680
ARIZONA TRADITIONS, AZ
Community Size (rooftops)
1,768
Current Member Dues
(based on 2 owner household)
$1,716
SUN CITY ORO VALLEY, AZ
Community Size (rooftops)
2,488
Current Member Dues
(based on 2 owner household)
$1,790
SUN CITY MESQUITE, NV
Community Size (rooftops)
6,378
Current Member Dues
(based on 2 owner household)
$1,824
SUN CITY ROSEVILLE, CA
Community Size (rooftops)
3,110
Current Member Dues
(based on 2 owner household)
$1,872
SUN CITY APPLE VALLEY, CA
Community Size (rooftops)
1,700
Current Member Dues
(based on 2 owner household)
$2,208
ROBSON RANCH, AZ
Community Size (rooftops)
4,600
Current Member Dues
(based on 2 owner household)
$2,362
VICTORY AT VERRADO, AZ
Community Size (rooftops)
3,500
Current Member Dues
(based on 2 owner household)
$2,400
CANTA MIA, GOODYEAR, AZ
Community Size (rooftops)
1,700
Current Member Dues
(based on 2 owner household)
$2,748
TRILOGY AT VISTANCIA, AZ
Community Size (rooftops)
5,450
Current Member Dues
(based on 2 owner household)
$3,036
SUN CITY WEST, AZ
Community Size (rooftops)
17,192
Current Member Dues
(based on 2 owner household)
$930
$465 if one on the deed (40%)
DEL WEBB
CURRENT
COMMUNITY
SIZE COMPARISON
DEL WEBB
CURRENT
MEMBER DUES
COMPARISON
MEMBERSHIP DUES
PER FY (FOR YEAR
ENDING JUNE 30)
$1
10
$1
10
$110
$127
$127
$127
$1
33
$1
33
$1
48
$1
70
$1
74
$1
80
$2
07
$2
25
$2
58
$2
96
$3
25
$3
37
$3
55
$3
70
$385
$4
08
$4
08
$420
$435
$445
$4
65
$0
$200
$400
$600
$800
$1,000
$1,200
2013 - 4.1%
Incr
2014 - 6.0%
Incr
2015 - 0.0%
IMPACTMinimum Wage + Compression
Voter Initiative
$600,000
or
$20/member
$8.05
$10.00
$10.50
$11.00
$12.00
24.2%
5.0%
4.8%
9.1%
0%
5%
10%
15%
20%
25%
$5.00
$7.00
$9.00
$11.00
$13.00
$15.00
2016 2017 2018 2019 2020
Minimum Wage 2016-2020
Min Wage % Increase
OUR ELECTRIC BILL4% rate hike - APS
Actual Projected
FY2017 FY2018
Recreation Centers $582,192 $619,500
Golf Courses $710,058 $806,600
(300 HP 1,000 ft. deep well pumps)*
*Less rain = more expense to pump water
❑ Fuel (gas) prices are up by 10%
❑ Fertilizer and chemicals costs are up (Petrochemicals)
❑ Building materials costs are up
THE RECREATION CENTERS ARE
VERY EFFICIENT ….
HERE ARE EIGHT REASONS
WHY:
GOLF
▪ USGA Recommends: 18 personnel/course
▪ Rec Centers has: 15 personnel/course
▪ Savings/Year $840,000 ($3/member)
RECREATION CENTERS
▪ Cities Provide Activities
▪ Recreation Leaders
▪ Recreation Coordinators
▪ Recreation Centers:
▪ Clubs & Volunteers
▪ Class Program – Self Sustaining
▪ 317,000 Estimated Hours (@ Minimum Wage + payroll taxes)
▪ Estimated Savings $3,750,000
AQUATIC CENTERS
▪ Cities Provide
▪ 2 Lifeguards/Pool
▪ Recreation Centers:
▪ No Life Guards/One PT Monitor
▪ 15 hours/day per pool
▪ Estimated Savings $900,000
STREET LANDSCAPING
▪ Cities
▪ Landscaper with Benefits = $38,000/year
▪ Recreation Centers:
▪ Prides x $0 = $0/year
▪ 6500 minimum estimated hours (3 FTEs)
▪ Estimated Savings $114,000
STREET MAINTENANCE
▪ MCDOT Maintains Roads
▪ 137,528 Linear Feet of Main Roads
▪ Does not include any side streets
▪ That’s 26 miles @ $550,000 per mile to repave
▪ APS Maintains Street Lighting
▪ Estimated Savings $ 14,300,000!
OPERATING EXPENSESExcludes Capital and Depreciation
▪ Employee Wages & Benefits
▪ Competitive Wages & Benefits
▪ NO Pension System
NO UNION
UNION DEMANDS = INCREASED WAGES AND BENEFITS
Facilities
Maintenance
Stats
Facilities
Maintenance
Staff
FACILITIES MAINTENANCE
▪ 240 A/C Units
▪ 208 Toilets
▪ 1,072,449 Gallons of Pool & Spa Water
▪ 159 Pieces of Exercise Equipment
▪ 2,012,238 Sq. Ft. of Parking Lots
▪ 325,321 Total Sq. Ft. Under Roof
▪ And SO much more!
15 F/T Employees and 1 P/T Employee Maintain It ALL!
“I CAN’T BELIEVE HOW MUCH THERE IS TO DO HERE!”
“I CAN’T BELIEVE HOW CLEANAND WELL-MAINTAINED IT IS!”
IN THIS 40-YEAR-OLD COMMUNITY, I HEAR TWO THINGS ALL THE TIME:
Let’s talk about water
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But seriously…
Where do we stand with water
in Sun City West?
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In 1 year, SCW uses
2,300,000,000gallons of
water
Yes, 2.3 BILLION gallons
RESIDENTIAL: 1.1 billion gallons (average resident uses 100 gallons/dayx 29,000 residents/tenants x 365 days)
RCSCW GOLF COURSES: 1.2 billion gallons (3,828 AF x 324,851 gallons/AF) ______________________________________________________Total for SCW Home and Golf = 2.3 billion gallons
Does not include commercial use
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What is an Acre-Foot?324,851 gallons
• Covers a football field to 1 foot depth
• Serves 2.5 SCW homes for 1 year
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1 acre-foot would just about fill the Chase building in Downtown Phoenix!
Name: Chase Bank CenterAddress: 201 N. Central Ave.Height: 486 feetFloors: 40
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Phoenix
Lake Mead
Lake Havasu
What happens in Lake Mead affects Phoenix and Tucson (CAP Canal)
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Arizona gets 1.6 million acre-feet/year
So what’s happening with Lake Mead?
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• Shortage would be declared at the start of a year if water levels drop below 1,075 feet above sea level
• If a shortage is declared, states must reduce water consumption
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Levels are dropping!
Dead Pool = zero water available; agreements end
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How likely arewater reductions?
So how is the Colorado River divided?
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It ONLY works if everyone is involved!
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That means
Sun City West
also needs to do its part
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RCSCW’s situation
• SCW’s 2,372 AF allotment benefits residential use
• SCW uses 3,500 to 4,000 AF/year on our golf courses • Grandfathered rights
• Effluent credits
• RCSCW golf course water is all groundwater – the Best of the Best!
• RCSCW groundwater rights are grandfathered (granted in perpetuity)
• But remember … the Colorado River Basin States are in this together!
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Water
Availability
Golf TrendsDemographic
Shifts
Three issues in particular can have dramatic impacts on our future, depending on how they trend:
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What do we know?
➢ We have a 50-year generation span with various interests
➢Demographic shifts will force changes to properties, clubs, events
➢Golf numbers will stay level or drop off
➢There will be increased demand for new, outside activities using limited greenspace
➢ Dues must remain reasonable while rising gradually to cover the costs of utilities, insurance, wages, equipment, etc.
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What are we unsure about?
➢Will drought continue?
➢Will water rationing kick in?
➢What specific facility changes will our new population demand?
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Two things we know for sure:
1. Any major changes we make to address water shortages, golf trends or changing demographics will be very expensive!
2. Planning ahead let’s us avoid special assessments.
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