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RCSC prepares 2018 budget: No increase in assessment planned

Posted 12/16/17

By Rusty Bradshaw

Independent Newsmedia

Recreation Centers of Sun City officials could drop a pleasant surprise in cardholders Christmas stockings when they consider the 2018 corporate …

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RCSC prepares 2018 budget: No increase in assessment planned

Posted

By Rusty Bradshaw

Independent Newsmedia

Recreation Centers of Sun City officials could drop a pleasant surprise in cardholders Christmas stockings when they consider the 2018 corporate budget.

The RCSC board will meet 9 a.m. Thursday, Dec. 21 in the auditorium at Sundial Recreation Center, 14801 N. 103rd Ave., to consider a 2018 budget that projects lower income and higher expenses than the 2017 proposed budget. But there will be no proposed increase in cardholders’ annual property assessments.

Recreation Centers of Sun City officials are preparing to begin renovations of the Grand Avenue property they purchased to remedy an expanding need for more club space in the community.

Residents first saw the proposed budget motion at the Dec. 4 member/director exchange meeting. But the document did not address the property assessment and board members were mum on the subject until resident Norm Philking asked if there would be an increase.

“I’m glad you asked that question,” said Rich Hoffer, RCSC board president. “No.”

Mr. Philking, who often lends a touch of humor to RCSC meetings with his remarks, then asked if there would be a decrease.

“No,” Mr. Hoffer answered.

The proposed 2018 budget estimates $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.

Rich Hoffer

“I am as sick about having to raise these fees as you are,” Mr. Hoffer said during the December 2016 member/director exchange meeting. “I do not want to vote for these increases but when Arizona voters passed Proposition 206 they gave me no choice.”

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, he added.

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

While it was not included in the motions for the December board meeting, Mr. Hoffer, in answer to resident Anthony Britenal’s question at the Dec. 4 exchange meeting, said the board is considering a $3 million preservation and improvement fund project for 2018 to renovate the Grand Avenue property. He 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 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 to the property building. The structure would also house a Sun City Garden Club office, storage space and green house; 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.

Mr. Britenal asked if any of the $3 million was targeted to begin work on a structure for the Vintage Vehicle Club.

“No funds are set aside for the car club, but we are working on some things for the club,” Mr. Hoffer said.

IF YOU GO:

What: Recreation Centers of Sun City Board of Directors

When: 9 a.m. Thursday, Dec. 21

Where: Auditorium at Sundial Recreation Center, 14801 N. 103rd Ave.