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RCSC board approves 2018 operating budget with no dues increase

Posted 12/26/17

By Rusty Bradshaw

Independent Newsmedia

The Recreation Centers of Sun City Board of Directors ended the year with three new board members, a new budget, and cardholders did not receive …

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RCSC board approves 2018 operating budget with no dues increase

Posted

By Rusty Bradshaw

Independent Newsmedia

The Recreation Centers of Sun City Board of Directors ended the year with three new board members, a new budget, and cardholders did not receive an increase in their annual property assessments.

Rich Hoffer, right, outgoing Recreation Centers of Sun City board member and president, swears in new board members, from left, Dan Schroeder, Dale Lehrer and Sue Wilson. They will begin their duties Jan. 1, 2018.

The board formally approved the 2018 budget, which projects $21.6 million in income. That is expected to cover estimated increases in payroll taxes and benefits; utilities; operating expenses; taxes, insurance and other expenses; and capital projects and equipment from the general fund. The only categories expected to be lower in 2018 are cost of good sold, wages and repair and maintenance.

Last year at this time RCSC officials proposed — and eventually approved — a $22 property assessment increase, bringing the annual cost to cardholders to $496. Officials said the increase last year was due to Arizona voters in November 2016 approving a statewide minimum wage increase. The minimum wage — previously at $8.50 per hour — went to $10 in 2017, and will increase to $10.50 in 2018, $11 in 2019 and $12 in 2020.

At the time, 55 percent of RCSC’s employees were making less than the new minimum wage as of Jan. 1, 2017, and 65 percent were Sun City residents, according to Rich Hoffer, 2017 RCSC board president.

“Every other active retirement community in the state is in the same position we are,” he said.

The board also approved a $3 million preservation and improvement fund project for 2018 to renovate the Grand Avenue property. Mr. Hoffer said the property needs repair and renovation to accommodate the three clubs moving there and other uses identified for the property by the corporation’s ad hoc Long Range Planning Committee.

RCSC officials purchased the former China Olive Super Buffet at 10415 W. Grand Ave., on the southwest corner of Grand and 103rd avenues. The property includes a 10,000-square-foot structure on just more than three acres. RCSC officials said the property was purchased for $750,000 in May 2016 to provide additional space needed by clubs and other Sun City organizations.

The committee’s recommendations, approved by the board, were to locate the Sun City Clay Club from Lakeview Recreation Center, 10626 W. Thunderbird Blvd., and the Camera Guild Club from Sundial Recreation Center, 14801 N. 103rd Ave., to the property building. The structure would also house a Sun City Garden Club office, storage space and greenhouse; a branch office for the Sun City Posse; and classroom space to be available for various clubs and RCSC.

“There is landscaping that needs done and the parking lot needs repair,” Mr. Hoffer said.

The interior also needs to be prepared for the incoming groups, he added.

“Right now it is an empty shell,” Mr. Hoffer said.

The committee also recommended the property be designed for construction of additional buildings for the Vintage Vehicle Club of Sun City and an archery range for the Sun City Outdoor Sportsman’s Club. The committee also recommended the Piano Club at Sundial move into the vacated Camera Guild space.

Board transition

Elected by cardholders Dec. 12 to fill three expiring seats, Dan Schroeder, Dale Lehrer and Sue Wilson were installed during the board’s Dec. 21 meeting. They will begin their duties Jan. 1, 2018.

Outgoing board members took the opportunity to express their thanks to the board and RCSC management and offer their views on their service.

Ida Eisert said her mission as a board member was a fiduciary duty because of an obligation to members.

“It was a privelege to serve,” she said.

Carol Lawry said she knew her actions and decisions did not please everyone, but she did the best she could for both the corporation and the residents.

Mr. Hoffer started his remarks by quoting Del Webb, the developer who built Sun City.

“Concrete, steel and lumber make up the buildings, but it’s the people that make this a community,” Mr. Webb said.

Despite some challenging times, Mr. Hoffer said his service on the board was a pleasant and rewarding experience, especially in meeting new people.

“In my three years on the board, I have worked with 15 different board members, and I am glad I met them all” he said. “I wouldn’t have known them if I had not run for the board.”

Ms. Eisert, who served as Elections Committee chairwoman in 2017, said only 3.6 percent of RCSC’s more than 33,000 cardholders voted in the Dec. 12 board election that featured five candidates vying for three seats.

“In our last committee meeting, we brainstormed ways to get more people to the polls, and to continue to get more people to run for the board,” she said.

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