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Committee deals with Asset Preservation Fee issues

Attempting to make rules fair and understandable

Posted 12/9/19

Almost every time a residential property changes ownership in Sun City West, the staff of the Recreation Centers of Sun City West collect $3,500 as an asset preservation fee.

This money is put …

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Committee deals with Asset Preservation Fee issues

Attempting to make rules fair and understandable

Posted

Almost every time a residential property changes ownership in Sun City West, the staff of the Recreation Centers of Sun City West collect $3,500 as an asset preservation fee.

This money is put into a fund that is reserved for capital project spending. RCSCW began this practice June 1, 2000.

The current fee is $3,500.

The budget and finance committee members are now working to refine the policy and present their recommendations to the governing board at its next meeting 9 a.m. Thursday, Dec. 19, R.H. Johnson Recreation Center lecture hall, 19803 R.H. Johnson Blvd.

In most instances this is a straightforward matter. But the RCSCW staff is asking the committee and governing board to clarify some issues.

Most questions, according to staff members, involve whether the fee must be paid when the title changes due to inheritance.

Debbie Long, RCSCW member services supervisor, estimates about 100 title transfers fit into this category each year. That would amount to $350,000 in lost income each year.

Bill Schwind, RCSCW general manager, said the staff wants some specific direction from the board about fee assessments when there are changes due to inheritance or changes in a trust.

“What happens if a person dies and the spouse then goes from a 50 percent owner to a 100 percent owner on the deed?” he asked.

Ronni Hoover, committee member, said she didn’t think it was fair for inheritors to have to pay the APF if they are just going to sell the property, and then the new buyer would have to pay the same fee again. Ms. Hoover also questioned whether it was worth trying to revamp procedures for what would be such a small amount of the budget.

Pete Finelli, RCSCW chief financial officer, said in some years that could amount to about five percent of the operating budget.

Gerry Connor, committee chairman, said Sun City gives inheritors 12 months to sell the property without having to pay the fee.

The committee members expressed differing viewpoints on whether there should be such exemptions.

“The more exemptions the more complicated it becomes,” said John Hobold, committee member.

Mr. Connor said he would schedule a sub-committee meeting to go over possible options with staff members and the full committee would vote on the issue at the next meeting, 9 a.m., Tuesday, Dec. 17, at the Palm Ridge Recreation Center, 13800 Deer Valley Drive.

The recommendation of the Budget and Finance Committee would then be presented to the governing board for their acceptance or rejection at their meeting, 9 a.m. Thursday, Dec. 19, at R.H. Johnson lecture hall, 19803 R.H. Johnson Blvd.

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Reporter Roger Ball can be contacted at rball@newszap.com and 623-876-2523.