Sun City West board hears positive November financials; audit and filings posted

The Recreation Centers of Sun City West Governing Board reviewed November 2024 financial results at its Dec. 19 regular meeting and accepted committee filings including the November financial statements and the FY2023–24 annual audit.

CFO Cliff Swan told the board that "November was a good month, right on budget," reporting roughly $13,000 favorable revenue for the month and noting operating cash inflow was positive for November. Swan said the organization was roughly $234,000 ahead of budget for the month compared with prior year performance, and year-to-date figures showed a mix of modest revenue shortfalls offset by expense savings.

Swan highlighted several drivers: savings on landscape maintenance tied to bulk purchasing, timing differences on service contracts, and open staff positions that reduced wage expenses. He said year-to-date revenue was about $73,000 unfavorable on a roughly $10.1 million budget but that expense lines were $636,000 favorable, producing a net favorable operating variance overall.

On investments and reserves, Swan reported about $299,000 in unrealized gains for November and $91,000 in investment income for the month. He said short-term operating cash was laddered into Treasury bills (approximately $4–4.9 million invested) to meet cash needs and that the reserve fund produced favorable year-to-date results compared with last year.

Swan also reviewed capital items: the FY2024–25 capital improvement budget is roughly $9.9 million, with completed and committed projects producing an estimated $168,000 favorable variance; an allowance budget of $420,000 has spent about $79,000 so far. After paying for an Echo Mesa irrigation project, he said the fully funded balance is projected at about 47% by year-end.

Director Novella praised staff and asked that future updates highlight specific cost-saving actions; she described the variances as "somewhere in the 1% or less variance to budget." Director Hurley questioned the investment terms behind the reported $26,000 in interest income for November; Swan explained the laddered Treasury bill approach and that maturities are staggered based on operational cash needs.

Director Novella reported the November 2024 financials were reviewed and accepted by the budget and finance committee and filed. She said the CliftonLarsonAllen FY2023–24 annual audit was reviewed by the committee and accepted by the governing board at its Oct. 17, 2024 regular meeting and has been filed.

The board did not take additional formal actions on the financial presentation; directors asked for continuing oversight as the organization moves into budget season.