Log in

Slade: Fee increase does not pass test

Posted

I was pleased to see Frank Bagnio’s letter (“Resident applauds writer,” Sun City West Independent, July 1, 2020) supporting my contention that Recreation Centers of Sun City West management does not work for the best financial benefit of Sun City West residents. Management continues to pad their “gilded nest” with top pay, benefits and perks with no inclination to control costs.

SCW was granted $2,245,716 from the federal government for the Payroll Protection Program. In effect, this amount replaced funding already paid by resident fees for employee wages, benefits, etc. Once the PPP loan is forgiven, by a showing that the funds were used for employee wages, benefits, etc., the $2,245,716 will be shown on the income statement, and then as a general cash asset available for any use RCSCW officials decide. That’s a neat trick isn’t it! This action on the part of RCSCW represents a blatant abuse of a federal program that was meant to help struggling small businesses, not bloated non-profit organization overflowing with cash like RCSCW!

A review the 2019 audited financial statements shows that the $2.2 million was added to reserve funds (2018-19 increase of nearly $2.8 million). As I predicted earlier there was a reduction in utility costs in 2019 of more than $181,000 as compared to 2018. “Member equity” has increased nearly $4 million. Finally, 2019 excess of revenues over expense show an increase from 2018 of nearly $500,000. Has anyone received their dividend check yet?

RCSCW officials implementing fee increases for anything in 2021 does not pass the “red face” test.

I call upon RCSCW management to answer for their actions! Undoubtedly, Schwind, et. al., will prefer to remain silent as they have everything to gain by not answering in the hope that it all will just go away.

The silence of RCSCW management and the board regarding finances and fees is deafening.

Tom Slade

Sun City West