Sun City West Chief Financial Officer Cliff Swan told the governing board Sept. 18 that year‑to‑date financial results through August were favorable to the adopted budget, driven by higher activity at golf and the Sports Pavilion and an unexpected health‑insurance refund from Aetna.
Swan said the association operates two primary funds — an operating fund for day‑to‑day activities and a reserve fund for capital improvements — and that the ARC capital request would be recorded as an operating‑fund loan if approved. He reported that August was favorable to budget by roughly $92,000 and that year‑to‑date revenues were about $75,000 favorable, with expenses also favorable in several categories.
Swan told the board the association received a $67,000 refund from its 2024 Aetna health‑insurance premiums after claims were substantially below expected levels; he said the refund was booked in July and credited back to the health‑insurance expense account. Director Chatton and others emphasized that the refund is a one‑time event and not a recurring revenue source: Swan said, “we're not gonna be receiving one for 2025. I can tell you that.”
On the reserve fund, Swan reported positive investment performance and an unrealized market valuation gain in August; he said the reserve balance is now above $33 million and that the board’s policy target is to maintain a fully funded balance percentage of 40% as a minimum, with the budgeted target set at 50%. Swan reported that current projections put the association on pace to reach the budgeted fully funded percentage by year end, while noting the association remains sensitive to home‑sale activity, which drives Asset Preservation Fee (APF) collections.
Swan said the association budgeted APF transactions at 1,100 for the fiscal year and that APF transactions were down 11 through August compared with the prior year; he also explained that the APF budget is seasonally allocated using prior‑year monthly percentages rather than divided evenly across months. Swan and board members discussed how the APF timing and the real estate market can affect year‑to‑date collections.
On capital spending, Swan said the FY26 capital budget was about $5.1 million and that, after purchase orders (POs) were issued, capital expenditures were running about $327,000 favorable to budget. He highlighted favorable PO pricing on bowling center equipment (roughly $90,000 favorable) and golf equipment (about $86,000 favorable). The board’s allowances budget was reported at $420,000; Swan cited recent examples including $7,987 for billiards‑room ceiling tiles and unplanned wind damage to shade structures at the dog park.
The Budget & Finance Committee reported that it reviewed and accepted July and August 2025 financials; Director Becknell announced those financials were filed with the board. No changes to member dues, assessments or the adopted capital budget were approved at the Sept. 18 meeting.
The board chair reminded residents that dues are the association’s most guaranteed revenue source and that APF receipts can be volatile. Swan reiterated that favorable items such as the insurance refund are not guaranteed going forward and must be considered when preparing next year’s budget.