SUN CITY – This is the first of two reports on the Sun City community association’s 2015 financial activities, including the operating and reserve budgets.
This first installment describes next year’s operating budget and its impact on the monthly assessments that all residents pay to support the association’s facilities and activities. To prepare these reports, the Sun Day talked with Bill Ziletti, member of the board of directors and a former member of the Finance Advisory Committee, and Dennis O’Leary, recently elected to a two-year term on the association board, currently the vice chairperson of both the Facility Advisory and Finance Advisory Committees. The second installment will describe the projected reserve budget expenses planned for 2015.
Sun City’s proposed 2015 operating budget projects close to the same levels of expenses and revenues next year compared to 2014. Residents will be glad to hear that the monthly assessments, which provide about 80% of the association’s annual revenues, will remain at $134.00 monthly next year. A $1.00 decline in the monthly assessment for the operating budget (monies that fund the association’s day-to-day activities), is balanced by a $1.00 increase in the portion of the assessment that is earmarked for reserves. The 2015 assessment is broken down into $106.00 for operating expenses and $28.00 for reserves.
Next year’s assessment revenues are projected to be $6,971,832, down slightly from the 2014 budget of $7,037,604 . Other revenues (advertising, activity and fitness activities, leasing, interest on investments) is projected to be $1,459,280, compared to $1,471,498 in 2014. Total revenue is thus anticipated to be $8,509,102 next year, compared to $8,510,634 in 2014.
Expenses have totaled $8,544.979 in 2014, and are projected to be $8,431,112 next year. General operating expenses in 2015 are expected to be $4,818,757 (up by $53,000 above 2014) and payroll and related costs are projected at $2,883,387 (down $400,000 from 2014).
In its annual budget report to residents, the association said the $1.00 drop in the monthly operating assessment is because of an increase in trip revenue generated by additional trips planned for next year, a reduction in staff, and development of a more efficient building management system. These trends are expected to be balanced by a decrease in interest income, a cost increase from more consistent preventive maintenance, moving the accounting function to First Service Residential, out-sourcing more of the cleaning services, purchase of replacement holiday lights, a new trash removal contract, and higher natural gas and insurance costs.
The Finance and Facility Advisory Committees, along with the board of directors, worked on this budget for the past several months. Residents were given a chance to ask questions and make comments at several open budget forums on Nov. 6. The budget report, which contained details of ongoing operating activities, as well as reserve fund activity for next year, was included in the November Lifestyles Magazine. The board of directors is making a final review of budget figures and is scheduled to give final approval to the 2015 budget at its final meeting of 2014 on Dec. 3.
