Sun City West working group recommends raising FI‑12 equity target to 25%; board agrees to move amended policy to regular meeting

The Sun City West Governing Board on May 9 heard a months‑long analysis from a resident working group and the Budget & Finance Committee that recommended changing the association’s reserve investment policy, FI‑12. The working group proposed defining short‑, medium‑ and long‑term liquidity buckets, putting near‑term funds into no‑risk instruments, and increasing the target equity allocation to 25% (with a recommended range of 15%–35%). The board reached consensus to place the amended FI‑12 on the May 22 regular meeting agenda for a formal vote.

Director Novella, the board treasurer and Budget & Finance chair, outlined the process: the working group began meeting in November 2024, presented its findings to the Budget & Finance Committee and then to the governing board in February 2025, and used a 20‑year modeling exercise to test different equity allocations. Working‑group lead Micki Jacobs told the board the group modeled the existing 10% equity allocation and alternatives at 20%, 25% and 30%, using historical market returns and independent CapTrust…