The Recreation Centers of Sun City West Governing Board voted 7‑1 on May 22 to approve the association's fiscal year 2025–26 budget, which includes a 4.9% dues increase, after a presentation by CFO Cliff Swan on April year‑to‑date financials and capital spending plans.

Swan told the board the association was "474,000 unfavorable on revenue, and you can see right there, golf, at 332,000 unfavorable year to date, to budget." He summarized operational and capital positions, noting favorable expense variances in wages and fuel and an overall projected operating excess, while cautioning that golf rounds and asset preservation fee (APF) receipts were softer than budgeted earlier in the year.

Swan outlined two separate budgets: an operating budget and a capital improvement budget. "We've got our monthly and year to date income from operations," he said, and later explained, "We've got a capital improvement budget, and we have an operating budget." He told the board the capital improvement program for 2024–25 totaled about $9.9 million, with approximately $9.5 million in purchase orders issued and a projected positive variance of $373,000. Swan noted a near‑term capital need: the billiards room flooring, which he said "is gonna be around $4,045,000 to get that completed" and is on the reserve study but scheduled later; staff intends to request moving it forward using this year's savings.

Directors pressed for context on dues. Director Horvath asked why dues rise if the fully funded balance (FFB) target is at 47%; Swan replied that the board models five‑year and longer outlooks and said small annual contributions compound: "$1 is $28,000 essentially per year after the first year" in the modeling used to avoid larger future increases. The CFO also explained that a recently reallocated $300,000 was added to the reserve fund after the budget was initially prepared and that the operating budget was not restructured to offset that change.

Board members and staff emphasized the multi‑year planning that underpins the dues increase. Director Novello described the budget decision as central to the board's duties: "This is, arguably 1 of the, if not the most important decision that we make each year." After discussion and trustee questions about golf volumes, APF trends, irrigation projects and future capital needs, Novello moved to adopt the total financial plan; Director Chapman seconded. In the voice vote the tally was 7 in favor and 1 opposed, meeting the six‑vote threshold required to pass the budget.

Other financial details presented by Swan included a favorable year‑to‑date expense variance driven in part by lower wages and benefits due to unfilled positions and a smaller than anticipated minimum wage increase; a $24,000 favorable investment income for the reserve fund for the month; and an allowance budget of $420,000 with $356,000 spent to date, leaving about $63,000 in available allowance funds for emergent repairs. Swan said the association is tracking toward a 47% fully funded balance target by year end.

The board scheduled the annual owner/member meeting for June 19 and said staff and committees will continue monitoring budget performance and capital project timing through regular committee reviews and monthly presentations.