Sun City committee recommends forwarding budget that includes modest dues hike and $11.7M capital plan

Sun City’s Budget and Finance Committee on May 5 recommended that the governing board consider a proposed operating and capital budget that includes a roughly 3.7% dues increase, targeted fee changes and an $11.7 million capital-improvement program driven largely by planned irrigation projects.

Treasurer Anne Bechnell opened the meeting and introduced Cliff Swan, who presented the budget and reserve-fund analysis. Swan said the operating plan builds in a 3% merit increase effective Jan. 1, 2027, a projected $0.50 minimum-wage-related adjustment effective Jan. 1, 2027, new full-time equivalents tied to extended hours and events, and a portal upgrade that should reduce credit-card processing fees. He said the budget increases the reserve-fund allocation from 7.5% to 8% and projects $8,336,000 in cash inflows to help cover capital spending of about $11,721,604 for the upcoming year.

"We've put this budget together on just impacting those areas," Swan said, describing a mix of modest member-fee increases and revenue adjustments. He told the committee the modeled result is a projected surplus of $4.7 million for the current year and a projected $3.5 million deficit for the next year driven largely by the irrigation project spending.

Bechnell emphasized the public input she’d heard during recent master-plan outreach. "There are people in the community who are concerned about the dues increase," she said, and asked the committee to weigh the impacts on members on fixed incomes as it considered the recommendation.

Committee members who spoke at the meeting generally supported forwarding the budget. One member, Dave, framed the net impact to members as small: "It comes down to 6¢ more a day," he said. Several members called the package conservative and manageable given the reserve metrics and long-term asset needs.

The committee discussed options to fund a master plan. Swan outlined a five-year scenario that would begin next fiscal year (July 1, pending board approval) that includes a $20-per-member annual contribution to a master-plan savings account; additional scenarios discussed would generate larger sums. Swan said details and timing for specific irrigation projects were in the capital schedule: Stardust is planned next fiscal year and Pebblebrook planning is scheduled for FY27–28 with installation budgeted in FY28–29.

Committee members asked for clarification on where golf revenue flows; Swan replied that golf, bowling, membership and guest revenues all flow into operating inflows and that any operational excess contributes to the reserve allocation.

The committee reached consensus to send the operating and capital budgets to the governing board for its meeting on Friday. Bechnell said the presentation materials and the recorded meeting will be posted on the community YouTube channel, and she announced the committee’s next meeting on May 19. The meeting adjourned at 10:07 a.m.

What’s next: The governing board will review the recommended operating and capital budget at its next meeting on Friday; the committee’s recommendation is advisory unless the board adopts the proposals.