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Sun City West board previews $5.0M capital plan, proposes 4.9% dues increase and golf rate hikes
Summary
CFO Cliff Swan presented the proposed 2025–26 operating and capital plan outlining a $5.0 million capital program, a proposed 4.9% increase in member dues (to $5.98/month), golf rate increases for members and nonmembers, and staffing and benefit changes that raise payroll costs. The board set dates for hearings and final vote.
Sun City West’s finance director laid out a proposed 2025–26 financial plan on March 14 that would fund $4.9 million in new capital and $4.2 million in repair-and-replacement allowances while keeping the community’s long-term reserve strategy intact.
CFO Cliff Swan said the combined operating and capital plan aims to preserve nearly 53 buildings and the association’s amenities, forecasting $29.9 million in operating revenue for the current year and recommending a dues increase that would move the monthly member assessment from $5.70 to $5.98. "Dues are 55% of our overall operating budget," Swan said. He told the board the proposed 4.9% increase would generate about $754,000 in additional revenue and allow the association to deposit $1.2 million into the reserve fund in FY 2026.
The nut of the proposal: keep facilities maintained, fund several irrigation and capital projects, and cover higher personnel and insurance costs. Swan explained payroll and benefits account for 63% of operating costs; a merit-and-pay pool totaling up to 4% of wages is included in the budget; the budget also reflects an anticipated workers’ compensation renewal increase and an estimated 8% rise in property and casualty and health insurance costs. "We have to budget for positions that become open throughout the year," Swan said, noting the draft budget assumes roughly 300 full-time equivalent positions across divisions.
On revenue, the plan would also raise golf rates: members would see a $1 rise during peak and transition seasons, while nonmember peak-season greens fees would increase by $6. The golf team projects 320,000 rounds in the coming year; Swan and golf staff argued the nonmember revenue subsidizes course upkeep and overall operations. Proposed bowling, snack and nonresident-card fee changes were also presented: a modest per-game bowling increase and a $10 rise in the nonresident recreation card to $40 were among those proposals that would yield roughly $65,000 in additional revenue.
Swan described capital changes since the February packet: a $300,000 website redesign and app line-item added to new capital, a $75,000 deferral of tennis windscreens, and removal of a softball scoreboard because a private donor committed funding. Facilities/capital manager Carl Wilhelm reviewed other shifts, including a reduction of allowances and deferrals that lowered near-term capital demand by about $1.2 million. Swan emphasized the association’s irrigation replacements use longer-life materials that extend useful lives and reduce long-term reserve needs.
Director Christine Novello, chair of Budget & Finance, said the committee will continue to refine "pull-outs" (items to be reviewed separately) and expects further recommendations at the committee’s April meetings. Swan and Novello outlined the schedule: Q&A with the board next week, further committee reviews in April, community forums the week of April 20, and final budget adoption in late May.
Audience members pressed technical questions about reserve-study assumptions and capital categorization. Member Bill Weaver asked whether projected repairs over an asset’s life are included in the reserve model; Swan replied operating maintenance is kept separate and the reserve study covers replacements and their estimated useful life and replacement cost. Swan said the finance team has recently reconciled the fixed-asset schedule to remove outdated items and improve reserve accuracy.
The board reached informal consensus to move the FY 2025–26 financial plan and associated capital items to the regular governing-board meeting schedule for formal action and set public forums the week of April 20. Cliff Swan and Director Novello urged residents to review the packet and submit questions ahead of the April committee reviews and the public sessions.
Ending: The governing board will consider the proposed dues and fee changes and vote on the budget following the scheduled committee reviews and public forums; Swan noted timing and adoption details are in the packet and urged participation in the April schedule.
