1 Your oils fine, but your blood - sugar levels a little low. 2 - PowerPoint PPT Presentation

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“Your oil’s fine, but your blood - sugar level’s a little low.” 2

Governing Board Management (GM) Hires a General Manager Hires Staff Drafts/Adopts Policy Follows Policy Oversight of Operation Manages Association Reviews/Adopts Budget Proposes/Manages Budget Seven Standing Committees Works with Committees  We’re a Team – With Distinct Responsibilities 3

 1. Managing and following the Governing Documents Bylaws, CC&Rs, Articles of Incorporation ▪  Rules, Regulations and Procedures  Ensuring compliance with State and Federal Laws  Seeking legal advice when necessary  2. Managing People  Goal: Happy, productive & goal-oriented employees 4

 3. Managing Assets  Protecting Facilities  $150 Million in assets  Updating assets  Maintaining existing assets  Managing Money  Budgeting  Hiring CFO  Constantly monitoring expenses  Ensuring GAAP is followed 5

 4. Working with Governing Board  Board sets policy; GM carries it out  Nine-directors = nine personalities  GM Reports to the President  Monday Ops Meetings  Committees advise GM/GB  Leadership is all about relationships  Meetings, meetings, meetings 6

 5. Managing Problems  Safety first  Information sharing is key  “Seek first to understand, then to be understood.” - Steven R. Covey 7

 6. Planning for the Future “Never, ever, think outside the box.” 8

Long Range Planning Issues 1. Changing Demographics 2. Infrastructure Health/New Projects 3. Coordination of Community Service Agencies 4. Our Anti-HOA Planned Community Legislature 5. Water Concerns 6. Bylaw/CC&R, Age Restriction 7. Too Many Courses? 8. Energy Conservation 9. Health of Sun City West Businesses 9

 6. Planning for the Future When planting your cats, make sure to space them 6 inches apart so they have room to grow. 10

• Emails • Letters • Meetings • Walk-ins • Editorials • Social Media 11

• PORA handles initial complaint (except age violations) • May require some legal action • Face to face meetings • Legal/Court action 12

Amenities & Facilities Valued at $150,000,000 • 7,035 Acres • 11 square miles • 17,106 roof tops • Population – 31,000 • Annual budget $25 million • Four recreation centers • 3.2 million sq. ft. of asphalt • Seven Association golf courses • A 30-lane bowling facility with pool, billiards and snooker tables • Private Library for membership • Two mini-golf courses • Four fitness centers • Six swimming pools 13

Amenities & Facilities Valued at $150,000,000 • Six whirlpool/spas • 21 tennis courts • 5 platform tennis courts and 24 pickleball courts • Softball field • 2 racquetball courts • 2 volleyball courts • 3 walking tracks (1 indoor • 2 dance ballrooms and 2 outdoor) • Wii games • Woodworking shop • 2 dog parks (1 for large dogs • Metal working shop and 1 for small dogs) • 4 grass lawn bowl courts • Stardust Theater • 14 bocce courts • 111 Charted Clubs • 5 shuffleboard courts 14

Keys to Managing a $25 Million Company • You can’t please everyone. • Be flexible. • Check the Governing documents. • You are not a policy-maker. • Surround yourself with good people. • Have a good sense of humor 15

SUN CI T Y WE ST ANNUAL RE PORT - JUNE2018 Ge ne ra l Ma na g e r Mike Whiting

THE WOODPECKER’S GOT TO GO

• We’re in great financial shape • We e duc a te o ur re side nts • No De b t • F o rums • TORCH Citizen’s Academy/ Rec Ce nte r Ne ws / We b site • We ma inta in o ur a me nitie s • We e kly/ Mo nthly Bo a rd Me e ting s • Sun City We st Sta nda rd s • We pla n fo r the future • We ha ve o ve r $22.5 millio n in re se rve s • 5 Ye a r F ina nc ia l Pla n • Re se rve Study • Bo th a re upda te d ye a rly

• We’re Tax Exempt • We inve st o ur ta x sa ving s b a c k into the Asso c ia tio n-- • No F e d e ra l o r Sta te Co rpo ra te T a xe s • Re c re a tio na l & Go lf Ac tivitie s • Re duc e d Pro pe rty T a xe s o n Go lf • Re c re a tio na l & Go lf F Co urse Pro pe rtie s a c ilitie s • Re c re a tio na l & Go lf E q uipme nt

SUN CI T Y WE ST I S 40 YE ARS OL D ▪ $115 Millio n in Asse ts ▪ $65 Millio n in Asse ts Ne e d Re pla c e me nt o ve r the ne xt 30 ye a rs

ASSE T S 151 Ro o fs a t 302,571 Sq . F t. 240 A/ C Units in se rvic e

ASSE T S 2,012,238 Sq . F t. o f Aspha lt Pa rking L o ts

ASSE T S 257,074 Sq . F t o f F lo o ring

ASSE T S Irrig a tio n Syste ms (7 g o lf c o urse s, stre e ts, la ndsc a ping ) We lls (7 a t $1.5 Millio n) 1,000,000 g a llo ns pe r c o urse pe r da y, 300 HP mo to rs

ASSE T S Go lf E q uipme nt 123 units o f g o lf c o urse e q uipme nt inc lude s 56 mo we rs (do e s no t inc lude a ny g o lf c a rs)

ASSE T S 276 Sa nd Bunke rs

ASSE T S T e nnis Co mple x 16 Co urts + 4 Pla tfo rm Co urts + 6 a t K ue ntz

ASSE T S Pic kle b a ll 8 Co urts a t RHJ + 18 Co urts a t Pa lm Ridg e

DE L WE BB CURRE NT POPUL AT I ON AND ME MBE R DUE S COMPARI SON HOW DO WE ST ACK UP?

SUN CI T Y, AZ Co mmunity Size (ro o fto ps) 27,500 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $496

SUN CI T Y, GE ORGE T OWN, T X Co mmunity Size (ro o fto ps) 9,900 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,130

SUN CI T Y ANT HE M, NV Co mmunity Size (ro o fto ps) 7,451 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,212

PE BBL E CRE E K , AZ Co mmunity Size (ro o fto ps) 6,200 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,224

SUN CI T Y GRAND, AZ Co mmunity Size (ro o fto ps) 9,802 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,370

SUN CI T Y SUMME RL I N, NV Co mmunity Size (ro o fto ps) 7,779 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,392

SUN CI T Y L I NCOL N HI L L S, CA Co mmunity Size (ro o fto ps) 6,783 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,452

SUN CI T Y F E ST I VAL , AZ Co mmunity Size (ro o fto ps) 7,220 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,668

SUN CI T Y ANT HE M, AZ Co mmunity Size (ro o fto ps) 3,800 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,680

ARI ZONA T RADI T I ONS, AZ Co mmunity Size (ro o fto ps) 1,768 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,716

SUN CI T Y ORO VAL L E Y, AZ Co mmunity Size (ro o fto ps) 2,488 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,790

SUN CI T Y ME SQUI T E , NV Co mmunity Size (ro o fto ps) 6,378 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,824

SUN CI T Y ROSE VI L L E , CA Co mmunity Size (ro o fto ps) 3,110 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,872

SUN CI T Y APPL E VAL L E Y, CA Co mmunity Size (ro o fto ps) 1,700 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $2,208

ROBSON RANCH, AZ Co mmunity Size (ro o fto ps) 4,600 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $2,362

VI CT ORY AT VE RRADO, AZ Co mmunity Size (ro o fto ps) 3,500 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $2,400

CANT A MI A, GOODYE AR, AZ Co mmunity Size (ro o fto ps) 1,700 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $2,748

T RI L OGY AT VI ST ANCI A, AZ Co mmunity Size (ro o fto ps) 5,450 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $3,036

SUN CI T Y WE ST , AZ Co mmunity Size (ro o fto ps) 17,192 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $930 $465 if o ne o n the d e e d (40%)

DE L WE BB CURRE NT COMMUNIT Y SIZE COMPARI SON

DE L WE BB CURRE NT ME MBE R DUE S COMPARI SON

$1,200 2013 - 4.1% ME MBE RSHI P DUE S Incr $1,000 PE R F Y (F OR YE AR 2014 - 6.0% Incr E NDING JUNE 30) $800 2015 - 0.0% $465 $445 $435 $420 $408 $408 $385 $600 $370 $355 $337 $325 $296 $258 $225 $207 $400 $180 $170 $174 $148 $133 $133 $127 $127 $127 $110 $110 $110 $200 $0

I MPACT Minimum Wa g e + Co mpre ssio n Vo te r Initia tive Minimum Wage 2016-2020 $600,000 Min Wa g e % I nc re a se $15.00 25% 24.2% o r $20/ me mb e r $13.00 20% $12.00 $11.00 15% $11.00 $10.50 9.1% $10.00 4.8% $9.00 10% 5.0% $8.05 $7.00 5% $5.00 0% 2016 2017 2018 2019 2020

OUR E L E CT RI C BI L L 4% ra te hike - APS Ac tua l Pro je c te d F Y2017 F Y2018 Re c re a tio n Ce nte rs $582,192 $619,500 Go lf Co urse s $710,058 $806,600 (300 HP 1,000 ft. d e e p we ll pumps)* *L e ss ra in = mo re e xpe nse to pump wa te r