Cliff Swan presented the Sun City West Budget & Finance Committee with the association’s August operating and capital results on Sept. 16, reporting several favorable variances to budget and a notable insurance rebate that reduced personnel cost lines.

Swan told the committee the month of August finished about $25,000 favorable in revenue (driven in part by the sports pavilion being open longer than the prior-year comparison) and roughly $67,000 favorable in expenses for the month. He reported monthly income from operations was about $92,000 favorable to budget, and year to date the association was about $75,000 favorable to budget. Swan said wages, benefits and taxes showed a $112,000 favorable variance year to date; he attributed a $67,000 portion of that to a rebate from Aetna that resulted from the structure of the association’s 2024 insurance agreement. "We were pleasantly surprised when we received an email from them stating that we're gonna be receiving a $67,000 refund based on the claims that were paid in 2024 versus the premiums that were paid," Swan said.

On capital-related revenue, Swan said APF (asset preservation fee) collections were variable: there was roughly a $162,000 unfavorable variance in APF revenue compared with budget for the month, and year to date the association trailed the prior year by about 11–12 transfers and roughly $53,000. He told members APF volumes fluctuate with the housing market and that Sun City West typically expects about 1,100 to 1,200 APF transactions per year historically. Committee members asked for more detail on carryforwards from last year (items such as the Lizard Acres and Echo Mesa projects). Swan said those projects are funded through encumbrances and the reserve‑fund calculation and offered to present a carryforward report at the next meeting.

Swan also reviewed capital improvements: the fiscal year capital budget totals about $5,000,150 and purchase orders issued to date were about $4,800,000, with an anticipated savings to budget of roughly $327,000 based on current PO prices. He said the association’s fully funded reserve percentage finished 2025 at about 49% and, based on current projections, the association is on pace to meet a 50% fully funded balance for the year.

Committee members raised questions about APF timing and the sensitivity of revenues to the housing market. Mickey Jacobs noted the APF shortfall is a concern given the size of each APF transaction and encouraged monitoring; Swan said staff will keep reporting the monthly variances and provide requested carryforward listings. Swan concluded the financial presentation and the committee set no formal motion; staff will supply additional detail at the committee’s next meeting.