Sun City West reports unaudited 2026 results; plans $2.7M reserve transfer

Clifford Swan, Sun City West's chief financial officer, presented the unaudited fiscal 2026 year-end financial results at the board workshop on Sept. 18. He said the association finished about $30,530,000 in revenue, roughly $406,000 unfavorable to budget, and plans to transfer approximately $2,700,000 into the reserve fund.

"We anticipate transferring about 2,700,000 into our reserve fund after last year," Swan said, describing the results as "pretty much final" though unaudited. He told directors that overall operating cash flow finished $677,000 favorable to budget and that the organization ended the year in a strong position to fund upcoming projects.

Swan highlighted two drivers of the variance: membership revenue and golf activity. He said membership and fee increases produced a positive variance versus prior year, while golf rounds totaled about 316,000—2,100 rounds better than the prior year but roughly 3,700 rounds below budget. Closure of the Sports Pavilion reduced bowling and food-and-beverage receipts; Swan said the pavilion still produced about $44,000 positive cash flow after operations despite a 2.5-month closure.

On capital spending, Swan said the association spent about $4.9 million versus a budgeted $5.148 million—leaving a roughly $215,000 favorable variance that will remain in reserves. He said the capital section of the presentation excluded depreciation because depreciation is a noncash accounting entry that can obscure the reserve‑fund impacts of true cash outflows.

Swan also reported investment performance that bolstered reserves: realized and unrealized gains in the investment portfolio and investment income net of fees contributed materially to the reserve outcome. He cautioned that the figures are subject to audit; the formal audited financial statements will be presented by CliftonLarsonAllen at the October meeting.

The board asked follow-up questions about specific line items, timing of APF (asset preservation fee) recognition and the allowance budget; Swan said some year‑end entries are auditor-driven and will be finalized during the audit process.