CFO: Sun City West Financials Close to Plan, Reserve Investments Up About $1.6 Million
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Summary
CFO Cliff Swan told attendees the association is roughly on budget for the first six months, flagged timing differences on chemical purchases and golf revenue, and reported $1.6 million positive investment performance in reserve funds year-to-date.
Cliff Swan, Sun City West's chief financial officer, told the midyear meeting the association is largely tracking to budget through the first half of the fiscal year and highlighted reserve fund performance.
"Overall, for the first 6 months of the year, we're doing very well," Cliff said. He noted a small revenue shortfall of about $78,000 and timing-related items on the expense side where purchases budgeted in the first half have shifted later, including bulk chemical and fertilizer purchases.
Swan reported an operating cash outflow of roughly $1.4 million in the first half that is expected to turn positive in late winter as seasonal revenue resumes. Golf rounds and weather-related impacts have depressed golf revenue versus plan, he said, and APF (assessment per fee) receipts are below budget amid real estate market shifts.
On investments, Cliff told attendees that reserve fund investment performance through the first six months is a positive $1,600,000, outpacing the prior year's figure by roughly $1,000,000 and that the association has allocated approximately $600,000 of dues toward reserves in the period.
Swan invited residents to budget-and-finance meetings where the capital improvement and operating budgets will be discussed in more detail and asked members to attend committee hearings scheduled in February and later as the FY26-27 capital and operating budgets are developed.
He closed by noting an uptick in CC&R workload this year (largely weather-related weed complaints) and said staff is monitoring APF trends and reserve balances as part of ongoing financial planning.
