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Sun City West residents will see increases in their assessments and golf fees, but not as much as had been discussed earlier.

The Recreation Centers of Sun City West Governing Board May 28 adopted a $19.9 million operational budget and a $1.8 million capital budget for the 2009-10 fiscal year beginning July 1.

In addition to the assessment and golf increases, the asset preservation fee will also increase $300. The fee is charged to new homeowners who purchase in Sun City West.

"The Board ultimately voted to go with the lower increase because of concerns about how the national economy was affecting residents," said Ernie Prindle, RCSCW chief financial officer.

In the proposed budget presented to the public in April, the property assessment was slated to increase by $20 per year to $345. However, board members agreed to roll back the increase to the original amount — $12 — which amounts to an increase of $1 per month, according to Katy O’Grady, RCSCW spokeswoman.

"The budget adoptions concluded several months of work and public sessions that saw the original plan revised in various ways to accommodate input gleaned from directors, members of the public and staff," Ms. O’Grady said.

Residents will be billed the new assessment amount July 1.

The idea of raising the dues $20 instead of $12 came up at a May workshop in which the board discussed a variety of ways to deal with a $296,000 projected shortfall in the 2009-10 budget, according to Ms. O’Grady. Ideas ranged from taking the entire amount out of reserves, to cutting staff and/or services, to increasing fees, she added.

"Staff purposely presented an unbalanced budget to the board to solicit their ideas on how to resolve the deficit, particularly in light of economic pressures on our residents and the association," Mr. Prindle said. "We still want to ensure this budget, even after making additional cuts, will allow association facilities to be maintained in a four-star condition, while having minimal financial impact on residents."

The budget adopted last week will still require staff to trim $57,725 from the 2009-10 budget. Operational and capital cuts were made in the RCSCW budget in the 2008-09 and the proposed 2009-10 budget, according to Ms. O’Grady.

"This will ensure the 2009-10 budget is balanced without the use of reserves," she explained.

Nine-hole golf fees were also lowered from the rates presented in the April forums. The fees will be reduced up to $2 per round from what was proposed, according to Ms. O’Grady. In addition, a winter discount program will be introduced next year, allowing residents to place $300 into a credit account and get $320 worth of greens fees.

Full details of the final budget will be available at http://www.rcscw.com and at the association office, 19803 R.H. Johnson Blvd., after the remaining $57,725 is trimmed from the general budget prior to final approval by the board in a June meeting.

Despite the shortfall in the general budget and required cuts to balance the 2009-10 budget, RCSCW is fortunate to be in good financial shape, according to Mike Whitting, RCSCW general manager.

"We’re in great financial shape, we have absolutely no debt," he said. "We stay on top of things throughout the year."

RCSCW officials made $850,000 in cuts to its 2008-09 operating expenses and planned the same amount of cuts for the 2009-10 fiscal year, according to Mr. Whitting. The organization will also see $1.1 million in capital project reduction, with no new projects planned and the cost of existing projects, such as the Stardust renovation and pickleball courts, reduced, he added.

The RCSCW budget cuts included a 9 percent decrease in paid staff, according to Todd Patty, head of environmental services and golf course maintenance.

Two golf courses will be closed in the summer months — Grandview, 14260 Meeker Blvd., and Stardust, 12702 Stardust Blvd. Mr. Patty noted the savings will be $115,000 in overtime pay and $39,000 for seasonal workers.

Mr. Prindle noted the organization is still trying to maintain services to residents, despite a drop in golfers and home sales in Sun City West.

"We tried to hold the line the best we can," Mr. Prindle said. "We are going to continue to provide the same levels of service as we do now."

Still, the organization is looking at a way to build its reserves, which now sit at $5.8 million, with the goal of $8.85 million.

"We’re not there yet but that’s where we want to get to," Mr. Prindle said.