Year-End Report 2023

JUNE 2024

June 5, 2024

Dear Westminster Village Community,

I’m excited to share our 2023 Year-End Report, showcasing the wonderful achievements we’ve accomplished together as a community.

While I am pleased with the results of many of our undertakings, one that we are particularly proud of is our strengthened financial position. Thanks to careful cost management, strategic investments, and diligent fiscal practices, we’ve fortified our financial foundation. These efforts have not only ensured our current stability but have also set us up for continued growth and prosperity in the years ahead.

Our emphasis on training and development has been crucial to our progress. By investing in ongoing education and enhancing communication and skills among our board and staff, we’ve increased efficiency and improved the quality of service and care we provide. This focus on continuous improvement helps keep Westminster Village at the forefront of senior living, delivering excellence in every area of our community.

We’ve also made great strides in boosting both resident and employee satisfaction, driving positive outcomes across the board. By actively listening to feedback and addressing the needs of our community, we’ve implemented initiatives that enhance the living and working experience for everyone here. This dedication to fostering a supportive and inclusive environment strengthens our sense of community and makes Westminster Village a place where both residents and employees truly thrive.

As we celebrate our achievements and look forward to the future, I’m confident our ongoing commitment to financial stewardship, staff development, and resident satisfaction will continue to elevate Westminster Village as an exemplary model of quality senior living.

Warm regards,

Tom Winkelman Chief Executive Officer

Culture: Community Happens Here

At Westminster Village, the essence of our community flourishes through the dedication of residents, valued employees, and administrative staff, and under the guidance of our esteemed Board of Directors.

Recognizing the profound impact individuals have on our shared culture, we prioritize the retention of our valued staff alongside the satisfaction of our residents. Thus, our commitment extends to listening to residents and staff and promptly addressing their needs. Through various initiatives, we’ve made significant strides in enhancing satisfaction among both employees and residents.

Caring to Comment

We’re deeply grateful to our residents for submitting over 2,500 comment cards in 2023. Their contributions played a crucial role in the significant rise of our 2023 satisfaction rating to an impressive 4.53 out of 5. These comment cards are invaluable for identifying areas for improvement and acknowledging the dedication of our valued employees. Our residents’ engagement underscores the importance of their involvement in shaping our community.

Resident Comment Card Rating is 4.53 out of 5 with over 2,500 comments submitted.

Taking Care of Those Who Take Care of Us

In 2023, we supported our valued employees by providing holiday meals and groceries to help offset the continued impact of inflation. Additionally, 15 employees received tuition assistance through our Employee Scholarship Fund.

The Employee Holiday Party holds a special place in the hearts of our employees and their families. In 2023, our compassionate and generous residents surpassed all expectations with a record-breaking level of contributions to the employee gift fund. The monetary gifts from the Resident Council to our employees are deeply appreciated. This overwhelming display of generosity underscores the strong bond between our residents and staff.

At Westminster Village, our employees are not just staff members; they are integral to our success. In 2023, our employees demonstrated unwavering commitment to our community through increased philanthropic efforts, with their donations totaling over $28,000 – an impressive testament to their generosity.

Another record year for contributions to the employee gift fund thanks to the generosity, kindness, and compassion of our residents.

Expanding Community Outreach

At Westminster Village, we firmly believe in the power of giving back to the community. Our commitment to making a positive impact extends far beyond the boundaries of our campus. In 2023, we continued our tradition of philanthropy by supporting various local organizations dedicated to serving those in need. Instead of discarding items, we chose to donate outdated cabinetry and equipment from our remodeling projects to Habitat for Humanity. We also contributed unused or unwanted medical equipment to Crutches for Africa, supported by the Scottsdale Rotary. Through our partnerships with esteemed institutions like St. Mary’s Food Bank, the Maricopa County Fraternal Order of Police, and the Hope Women’s Center, we were able to support causes that align with our values of compassion and social responsibility. These collaborations not only benefit the recipients of our aid but also enrich the lives of our employees, residents, and staff by fostering a culture of generosity and community engagement.

Advancing Excellence: Empowering Through Training and Development

Our Human Resources team remains committed to helping our employees maximize the benefits available at Westminster Village. In 2023, we saw a significant increase in participation rates: a 28% rise in individuals utilizing the Health Savings Account and a 54% increase in employees enrolled in the 403b program. These programs offer valuable tax advantages and benefits to our staff, reflecting our ongoing dedication to their well-being and financial security.

In 2023, our commitment to continuous improvement led us to prioritize ongoing training and enhanced communication. Employees convened quarterly with CEO Tom Winkelman in engaging sessions called “Time with Tom,” ensuring everyone stayed informed and connected. These sessions were warmly received by our staff. Additionally, we placed a greater emphasis on new employee orientation, ongoing coaching, and regular meetings to foster engagement and keep our team members well-equipped and informed. Recognizing the importance of a positive workplace culture for recruitment and retention, we intensified departmental training efforts. Moreover, our food service teams benefited from specialized training initiatives this year, focusing on safety, quarterly liquor trainings, and Title IV certification for four managers and department bartenders. We also ramped up front-of-house service trainings, introducing new service standards, and implemented Morrison Living daymaker daily huddle trainings to enhance service excellence across our operations.

Quarterly “Time with Tom” meetings keep employees informed and connected.

Residents in Action: Serving with Heart at Westminster Village

At Westminster Village, the spirit of our community thrives through the dedication of its residents, who remain the driving force behind our flourishing atmosphere. Through their tireless volunteerism, they exemplify the essence of camaraderie and community that defines us.

Our resident council members and supporting committee members play an integral role in Westminster Village. Collaborating closely with our staff, these members provide valuable input and exchange of ideas to enrich our community. We extend a heartfelt thank you to all our resident council and committee members for their dedication and contributions.

This year, the Board of Directors recognized several resident-led programs. Thanks to the vision and initiative demonstrated by leaders in our community and the dedication of committed members to support these initiatives, we all benefit.

Campus Beautification

The landscape of Westminster Village has been enriched by the dedication of residents who have transformed various spaces into havens of tranquility and environmental richness. Their forward-thinking initiatives, including planting citrus trees for fresh fruits, creating the Memorial Garden and Paradise Pet Park, and cultivating vegetation to support monarch butterflies, align with our values of sustainability and community stewardship. These efforts enhance the allure of our campus and foster a deeper connection with nature for all who reside here.

Village Shoppe

In recognition of the invaluable contributions of our Village Shoppe volunteers, the Board of Directors honored the founding members with a plaque and all volunteers with certificates. To date, the Village Shoppe, through their hard work, has contributed over $67,000 to Westminster Village.

Jazz Program

The Jazz Concert Program, spearheaded by residents, has brought joy and enrichment to our community. The Board of Directors extends its appreciation to the committee members for their outstanding contributions, ensuring that music continues to uplift and inspire us.

Welcoming Friends

Referrals from both residents and employees have a significant impact on our community. In 2023, a total of 49 new residents chose to call Westminster Village home. We’re delighted to see that many of these newcomers have friends already residing here, a testament to the positive experiences shared within our community. Furthermore, a substantial number of our new employees were hired based on referrals from current staff members. This ongoing support and endorsement from within our community contribute to the vibrant atmosphere at Westminster Village.

As we reflect on the past year, we celebrate the collaborative efforts of our residents and employees in fostering a thriving community where everyone feels valued and supported. Together, we continue to embody the spirit of Westminster Village, where community truly happens. In 2023, a total of 49 new residents chose to call Westminster Village home.

Technology: Elevates Service

Revolutionizing Our Infrastructure and Services

At Westminster Village, we are committed to continuous improvement and innovation to better serve our residents and staff. This year, we have implemented several exciting initiatives aimed at enhancing our infrastructure and services:

Press Alert/Nurse Call System

We established a task force and conducted thorough research to identify a reliable, technologically advanced press alert/nurse call system capable of meeting the current and future needs of our campus. This system will operate seamlessly across the entire campus, ensuring immediate caregiver notification in case of emergencies.

Operational Improvements

To ensure uninterrupted service, we have installed Uninterruptible Power Supplies (UPS) in all data closets. This proactive measure mitigates network downtime during electrical outages, ensuring our data equipment remains online and operational. Furthermore, employees will soon have the convenience of using their badges for payroll deduction at the market and Garden Café, streamlining the payment process and enhancing employee experience.

Residents and family members are logging into the Westminster Village portal approximately 11,000 times annually.

Future Initiatives

As part of our ongoing infrastructure upgrades, we are in the process of upgrading thermostats on the first floor and transitioning to an Electric Management System (EMS) for temperature control. This innovative system will allow us to manage temperatures remotely, ensuring optimal comfort for our residents while maximizing energy efficiency.

At Westminster Village, we remain dedicated to providing a safe, comfortable, and technologically advanced environment for our residents and staff. Through these initiatives, we continue to uphold our commitment to excellence and innovation in senior living.

Technology investments in 2023 included uninterruptible power supplies (UPS) in all data closets, and transitioning to an Electric Management System (EMS) for temperature control

Programs: Engagement Drives Decisions

At Westminster Village, resident input and engagement are at the forefront of our decision-making process. Through the Westminster Village Residents Council, residents actively participate in shaping our community, ensuring that their voices are heard and valued. In 2023, this collaborative approach led to the initiation, continuation, and completion of several impactful programs aimed at enhancing our shared living experience.

Weyrich Health Care Center Building Project

Construction is currently underway to finalize Phase One of the Weyrich Health Care Center project, expected to conclude in the first quarter of 2024. Upon the immediate completion of Phase One, Phase Two will begin, adding 14 private rooms and a double suite, resulting in a total of 16 additional beds.

Blue Zones Initiative for Employees and Residents

Inspired by the principles of Blue Zones, renowned for promoting longevity and vitality, we are committed to integrating practices that foster healthier living and community engagement. As the first retirement community in Arizona to adopt the Blue Zones Project, our program is led by employees and residents. It focuses on the physical environment, wellness initiatives, leadership, social networks, purpose, and work community. By fostering a Blue Zones lifestyle, we aim to enhance both the quality and longevity of our employees and residents alike.

Mealtime is Our Time

At Westminster Village, we’re dedicated to improving community life by providing exceptional cuisine and fostering meaningful connections, all while promoting healthier living choices. In 2023, we overhauled our monthly theme meals, expanding our menu selection to increase resident satisfaction. The introduction of monthly superfood offerings and chef’s demonstrations has been warmly received, adding excitement to residents’ dining experiences.

Our Wednesday night happy hours, featuring small bites appetizers, promote camaraderie among residents. Our Sunday meals, curated by the executive chef, showcase weekly specials that consistently delight our residents and guests.

Gratitude in Action

At Westminster Village, the generous support from our residents, friends, family members, board of directors, staff, and vendors is fundamental to sustaining our community programs and services. In 2023, the collective contributions of our community of donors amounted to $670,000, bolstering various initiatives on campus that directly benefit our employees and residents. Additionally, through engaging events like Celebration of Giving and Casino Night, among others, $255,000 was directed to our endowment fund, which supports our Home for Life resident assistance program and employee scholarships.

Furthermore, in 2024, we’re proud to announce that individual donors who have generously contributed to our endowment fund will be honored with a leaf on our sculpted Giving Tree. This distinguished recognition highlights their invaluable support in ensuring the longevity and vitality of Westminster Village’s mission and programs.

Our Campus: Naturally Beautiful

This year, our campus underwent a series of remarkable remodeling projects, enhancing both functionality and aesthetics. Inside, the front lobby received a stunning makeover with new carpeting and furniture, creating an inviting atmosphere for residents and visitors alike. Additionally, the firstfloor hallways were refreshed with vibrant new paint and energy-efficient LED lighting, further elevating the ambiance throughout the community. We also focused on enhancing our outdoor spaces. New walking paths and seating areas have been added throughout the campus, providing residents with serene spots to relax and enjoy the outdoors. The inclusion of outside patios in select apartment remodels further enhances our natural landscape. Additionally, a new crosswalk at the front cul-de-sac entry ensures safety and accessibility for all. These improvements not only contribute to the aesthetic appeal of Westminster Village but also promote a sense of community and well-being among our residents.

Ocotillo Dining Venue

Our residents are enjoying the newly remodeled Ocotillo Dining Venue, which provides a wonderful area for residents and guests to enjoy meals together. The vibrant blue paint, coupled with the new flooring, creates a welcoming and stylish atmosphere. This enhanced dining space not only offers a comfortable environment for socializing but also elevates the overall dining experience at Westminster Village. The refreshed decor and modern amenities reflect our commitment to providing high-quality, enjoyable spaces for our community.

Employee Dining Room

Thanks to the generous donation from one benefactor, the remodel of the employee dining room is underway and scheduled to commence construction in September 2024. This revitalized space will offer a diverse array of nutritious food options in a welcoming atmosphere, providing our employees with a rejuvenating break during their workday.

Sustainability Goals

Our commitment to sustainability remained steadfast in 2023, with significant reductions in electricity and water usage. We proudly saved 222,452 KW of electricity, marking a commendable 4.33% reduction from the previous year. Moreover, our dedication to sustainable practices was recognized with a substantial $4,426.50 in lighting rebates from APS, affirming our commitment to environmental stewardship.

Partnering with a master gardener and landscape consultant underscores our commitment to crafting a visually captivating and impeccably maintained campus environment. This dedication ensures that our residents can immerse themselves in the splendor of nature within our community. Our focus on water conservation yielded significant results, with a notable 17% decrease compared to 2022. This achievement equates to a remarkable saving of 3,072,941 gallons from 2021 and an impressive 50% reduction from 2020, totaling 4,438,398 gallons.

Living Sustainably

In 2023, we reduced water usage by 17% compared to 2022 and over 50% savings or 4,438,398 gallons saved versus 2020.

Financial: Building a Strong Foundation

for a Secure Future

Inflation continued to be a concern throughout 2023. Though not as drastic as was seen in 2022, consumer prices for all items rose 3.4% from December 2022 to December 2023. Food prices increased 2.7%, reflecting a 1.3% increase in prices for food at home and 5.2% increase in prices for food away from home, according to the U.S. Bureau of Labor Statistics. Additionally, the Consumer Price Index for the cost of medical care was up 5.6%. At Westminster Village, food and other supply costs were kept to a 3% year-over-year increase despite the overall consumer market conditions. The economic policy institute reported that 2023 marked the end of a period of years where real wages have grown 12.1% across the U.S. and Westminster Village is no different. The impact of statutory minimum wage increases was seen across the organization in 2023.

2023 was a much better year in the investment markets, with both the Fixed Income and Equity portfolios of Westminster Village experiencing growth. Thanks to the professional expertise of Westminster Village’s investment managers, our long-term investment portfolio continues to outperform market benchmarks.

Westminster Village again finished 2023 in a strong cash position. Total cash, cash equivalents, and investments at 12/31/2023 totaled just over $20,000,000. Of these dollars, now over 80% is invested or placed into savings, while 20% is dedicated to operations, which keeps Westminster Village in a good position for both the short and long term. For 2023, revenue growth outpaced expense growth by about 5% which is key to keeping Westminster Village in satisfactory actuarial balance; ensuring the care and culture that Westminster Village has built its reputation upon will continue well into the future.

2014-2023 Total Assets

2014-2023 Fund Balance

$25,000,000

$20,000,000

$15,000,000

$10,000,000

By the Numbers

Board President Don Kredel Outlines

Goals for 2024

Meetings and Reporting to Residents: To include two Town Hall Meetings, Tom’s Talks, Monthly Newsletters, Year-End Report and Mid-Year Report.

Utility Reduction: To include an outside capital reserve study, transition to dual pane windows for selected apartments needing construction permits, water monitoring automated controls, and renovation of the Secret Garden.

Expand our Market Presence: To include news releases, participation in trade shows and contact with local officials.

Education for Residents: To include Endowment Fund, Charitable Gift Annuities, LeadingAge Arizona, and our Board including Medical Ethics, Master Planning and Financial Reporting.

Blue Zones Project: Conduct information sessions with residents and staff and apply to be the first senior community to be designated as a Blue Zone in Scottsdale.

Weyrich Phase II Construction: Complete 90% of construction with completion date targeted for the first quarter of 2025.

Weyrich Phase III Plan: Develop detailed plan, construction design and budget for implementation in 2025.

Apartment Sales: $9 million in apartment sales

Build Reserves: 4% Net Income over Expenses

Occupancy: Maintain 95% occupancy with a strong 200-family waiting list.

Endowment Fund: Finish 2024 with the Endowment Fund being greater than $2,100,000.