Sun City West budget committee reviews FY 2026 operating plan; proposes $28 dues increase, fee changes for golf and carts

Cliff Swan, Sun City West chief financial officer, presented the governing board’s first look at the FY 2026 operating budget at the Budget & Finance Committee meeting on Feb. 18, outlining proposed revenue and fee changes intended to preserve reserves and maintain services.

The presentation showed a proposed $28 increase in annual membership dues (a 4.9% rise), a proposed $200 increase to the association payment (APF) to $5,400, a 5% uplift in wages/payroll costs (4% wage merit pool plus higher benefits) and a net increase of roughly three full‑time equivalent positions across the organization. Swan said the package would keep the association’s reserve funding plan on target while maintaining current levels of service.

Why it matters: Sun City West’s operating revenue depends heavily on member dues and on golf and facility fees. Committee members heard that the community’s reserves, capital plans and staffing needs all shape any request to raise dues or fees. Swan framed the proposal as a balance between preserving assets, funding capital work (roughly $10–10.5 million in planned capital spending referenced in the presentation), and keeping the community’s amenities operating at current service levels.

Swan said wages, benefits and payroll taxes account for about 63% of the association’s operating budget and that the FY 2026 proposal includes a 5% overall increase in that category, driven by a 4% merit/wage adjustment plus higher payroll taxes and benefits costs. He described the personnel changes as a net 3.0 FTE increase (three FTEs in administration and IT, a part‑time addition in golf that rounds to one FTE in the budget, and a reduction in the recreation division). "We put 4% in the budget to handle our merit increases," Swan said while explaining the components of the payroll changes.

Cliff Swan also presented several targeted fee proposals affecting golf and the Sports Pavilion. Key proposals in his presentation included: - a $3 increase to nonmember greens fees during peak season (November–April) and a $1 increase for members during that peak; - an increase of $100 to the unlimited golf card and $50 to the twilight card; - a $1 increase to buckets of range balls (projected to yield about $100,000); - a proposed $3 trail fee for nonmembers who ride in a member’s cart (Cliff said this could generate about $90,000 annually if implemented); - modest increases to Sports Pavilion and bowling line items (for example, a 25¢ increase on some pavilion charges and a $1 raise to shoe rental) totaling roughly $65,000.

On membership revenue and reserves, Swan told the committee the draft plan assumes roughly 320,000 rounds of golf in the year and models a reserve contribution that would leave the funded balance within the committee’s target bands under the proposed dues/APF scenario. He presented scenarios showing the revenue impact if the board opted for a larger dues increase (examples included $35 or $40 increases and their multi‑year implications).

The budget packet also reflected operational changes driven by recent changes in Arizona statute and internal policy. Swan said the association has added a collections clerk position because of state law changes affecting how collections are handled; the meeting noted the association had begun charging a $110 collections fee at 90 days to offset some costs. "Now that will be offset with some revenue," Swan said of the in‑house collections approach, while also noting the association will monitor results and that the long‑term fiscal effect is not yet known.

Committee members and several residents asked detailed operational and benchmarking questions: where sealed bids and large projects appear in the process; how many bids are typically obtained; which purchases require Governing Board approval; how Sun City West compares to neighboring community dues and APF levels; and how the association models seasonality in budgeting. Staff said items over $5,000 generally require a quote or bid internally and that purchases over $50,000 come before the Governing Board as part of the budget or via a separate “facts and findings” approval when required (emergencies permit general manager action with later board notification). Cliff and other staff also said procurement and bid files are included in internal controls and subject to audit sampling by the association’s external auditors.

Committee process and next steps: Swan described this meeting as the committee’s first formal review; the committee must develop and forward a recommendation in March, after which the Governing Board will review committee feedback. Swan outlined a timeline that would move committee recommendations through the board workshops and the board’s April deliberations, with formal budget adoption scheduled later in the spring. The CFO asked committees and residents to review the budget attachments and assumptions and to send follow‑up questions before the committee’s March 18 meeting.

What’s next: staff will present more granular comparisons for golf fees and Sports Pavilion rates to the committee and to the specialized committees that oversee those facilities. The Budget & Finance Committee will meet again in March to refine recommendations to the governing board.

Ending: The presentation prompted a long, detailed committee discussion but no formal vote on the full budget at the Feb. 18 meeting; the CFO described the packet and models as a first look and asked the committee for guidance on the range of options to present to the governing board. Staff reiterated they would provide additional supporting benchmarking and cost‑management detail before the next committee meeting.