President Message for March, 2015

There is an undercurrent of rumors, not facts, moving through our Community.

For example, there is a rumor being spread indicating that your Board would be closing 9 holes of our golf course. This of course is not true, and we have not had any discussions relating to this.

There is an impression that we are outspending our means, and that our financial position is not strong so we are losing our competitive position in the housing market.

Let me respond to these issues.

Our finances are in good shape. Let's consider the events in the past 5 years. Many communities, like ours, fell into hard times due to the recession. They saw dues revenues shrink due to foreclosures. They saw their assets go into total disrepair. We were fortunate we did not have a similar situation.

Yes, we have raised our dues, but remember; in 2010 we purchased a 45-hole golf course, a fitness center and racquet club, 2 maintenance yards, parking areas surrounding the facilities and roadways. All of these had to be absorbed and financed...we did this. On top of the purchase, the Community put an additional 1.2 million dollars into the golf course and tennis facility following the purchase.

Let's look at today to see how we are doing.  

Our revenue generating amenities are producing sufficient revenue to absorb their operation costs. We have moved our reserve items basis from $2,000.00 to $5,000.00 this last year. You might say what does this do for my pocket book? It means the operation must absorb the cost associated with the capital good or maintenance requirement, instead of our dues that would have been moved from reserves.

We are voting this month on a project to continue the capital updates, maintenance reductions and play improvements on the Lakes Course, the next nine hole section of Oakwood's course.

We will continue to manage the finances of our Community to enhance its competitive position in the market, and maintain and improve the quality we expect, and promote the pride of ownership.

Let's look at our competitive position in the housing market.

We are geographically competitive, we are rich in amenities, we have a broad range of housing styles, house sizes, physical properties to meets all types of needs and desires, price options, security, and an inviting and active population. Yes, we need to devote more time and current funds to maintaining and preserving. Your Board will push the initiative to insure this.

Where is management in all of this?

Our GM, Faye Stone, is focusing on results with her management team. They are actively working to take our facility maintenance and repair projects from the to-do-list to the completed list. Faye will be supplying us with a list of projects on a monthly basis that are in-process and/or scheduled to keep us up to date on the initiatives.

We have four capital projects in Committee or with Management at the present time; Parks Project, Fitness Facility Expansion, Pickle Ball Courts and Lakes Golf Course. All of these projects have merit, and can potentially add value to the overall Community. Please stay informed on these by watching for announcements concerning progress and potential Community Information Meetings and/or Board Meetings or Workshops.

All of these, even our Lakes Course renovation will require additional parking. I have asked the Board, working with Faye, to take this project out of the scope of the projects moving through the Community. Frank Gould and Bill Thompson are working directly with Faye and an outside Civil Engineer. Frank has reported that the initial findings will be in by mid-April.

We are approaching our annual migration back to cooler places. This every year event has a financial effect on our Community. We know, in every case, revenue decreases and costs go up. Faye is working to develop a managed reduction of service that will show in our financials. She will be announcing changes to support our objectives in the very near future.

I am testifying next week in support of the Sun Lakes Community SRP Legal Fund Executive Committee as a Sitting Member. The Arizona Power Plant and Transmission Line Siting Committee will be hearing the Application filed by SRP relating to transmission and sub-station expansion for the "Price Road Corridor". The hearing will be held at the Crown Plaza San Marcos Golf Resort Ballroom in downtown Chandler. (One North San Marcos Drive). The dates are: March 30, 2015, beginning at 1:00 pm. There will be a special evening public comment session held on March 30, 2015 at 6:00 pm at the same location noted above. The hearings may continue on March 31,2015, and April 1, 2015.

The Committee will recognize your support at these meetings. Please identify your self as a Sun Lakes Association Homeowner if you attend.

Respectfully,

John Porter

IronOaks HOA Board of Directors President