Columbia Association
Year In Review
2011
CA’s Fiscal Year 2011 May 1, 2010-April 30, 2011 Accomplishments & Initiatives
annual report To enhance the quality of life for people living and working in Columbia, to respect the land and ensure that the community remains open, integrated and caring. COLUMBIA ASSOCIATION’S MISSION
• Remodeled CA’s organizational structure with the new Service Bureau Model; the
new structure enhances both internal and external customer service to allow team members to respond faster and more efficiently to resident needs and company initiatives. • Started an effort to update and strengthen the CA brand. As part of that effort, we
have begun using a new logo on all advertisements, publications, etc. CA is developing a program to further educate and inform team members on the value of the CA brand. • Began developing an Aquatics Master
Plan to document existing conditions; assess the future needs of residents and other users; and make recommendations for future investments in Columbia’s aquatics facilities and programs. • Launched three social media pilots (Columbia Association Facebook page, Facebook.com/CA.ColumbiaAssociation; 365 Wellness Facebook campaign, housed on the CA Facebook page; and CA Events Advisor, ColumbiaAssociation.org/EventsAdvisor). • Offered CA Resident Card holders a $10
pool voucher so that resident families could visit one of CA’s 23 outdoor pools for one time during June, July or August for only $10. • CA’s television show Columbia Matters
(ColumbiaMatters.org) was awarded one bronze 2011 Telly Award in the information category for the October 2010 episode, which promoted breast cancer awareness.
continued on page 2
An electronic edition of the July CA Monthly is online at CAmonthly.org
Annual Report 2011 Columbia Association 1
Letter from the CA President and CA Board of Directors
Year In Review
continued from page 1
Dear Resident, Columbia Association (CA) is pleased to present its Fiscal Year 2011 Annual Report. Columbia’s founder, James Rouse, stated that “the most successful community would be that which contributed the most by its physical form, its institutions and its operation to the growth of people.” In support of Rouse’s vision, CA’s mission is to enhance the quality of life for people living or working in Columbia and to ensure that Columbia remains an open, integrated and caring community. In 2010, Money magazine/ CNNmoney.com ranked Columbia, jointly with Ellicott City, the 2nd Best Place to Live. At CA we are always striving to create and tailor programs to meet the needs of our diverse community. The enclosed financial statements, noted achievements and milestones aim to explain how your annual charge helps to fulfill CA’s mission. This charge contributes to CA’s wide variety of programs, services and amenities; helps maintain Columbia’s high quality of life; and fulfills Rouse’s dream. This year, we are continuing on in the process of developing a plan to turn Symphony Woods Park into a gathering place in downtown Columbia that is an attractive setting for recreation and community events. You can learn more about this project at ColumbiaAssociation.org/SymphonyWoods. Columbia has much to offer, including the gorgeous open spaces, enticing events, first-rate amenities and a warm sense of community. If you are new to the community, we invite you to attend one of CA’s Welcome Events to introduce yourself to other local residents and discover Columbia’s history. The next Welcome Event will be Columbia International Day, July 23, from 2-10pm, at the Downtown Columbia Lakefront.
• Produced and distributed CA Activities
Guide to CA resident households. • Held eighth annual Images of Freedom
poster contest for Columbia’s middle and high school students in honor of Black History Month and eighth annual Día de la Familia event commemorating Hispanic Heritage Month. • Columbia Art Center enhanced its service
offerings for maturing adults through partnerships with the Office on Aging and incorporated daytime classes for home-schooled youth. • More than 4,200 campers from pre-
school through 10th grade participated in 24 different summer camps. • Held eighth annual Hear My Voice Teen Idol event during which teens competed
in a singing competition.
CA exists because of residents like you — you determine our success. Please take a moment to visit our web site at ColumbiaAssociation.org to learn how you can be a part of all that our community has to offer. As always, we look forward to continuing to serve you and your family.
Sincerely,
• Supreme Sports Club was ranked the
“Best Gym/Health Club in Howard County” by Howard Magazine with Columbia Athletic Club and Columbia Gym receiving honorable mentions. • Partnered with Columbia schools, for the
Phillip Nelson
Michael Cornell
President/CEO, Columbia Association
Chairperson, CA Board of Directors
commitment 2 Columbia Association Annual Report 2011
10th year, so that more than 700 children had the opportunity to earn access to recreational facilities for themselves and their families by bettering their academic and behavioral performance. • Awarded Maggie J. Brown Spirit of
Columbia scholarships to five high school students.
Columbia Association FY12 Approved Budget: Looking Toward Next Year
Year In Review
Summary of Funds, Expenditures and Annual Borrowings
where the money will come from $69,752,000 Borrowings $7,006,000 - 10.0% Commercial Annual Charge $11,607,000 - 16.6%
Interest and Others $322,000 - 0.5% Sport and Fitness Income $25,581,000 - 36.7% • Celebrated Columbia’s diversity with
Columbia International Day. • Hobbit’s Glen Golf Club was ranked the
Residential Annual Charge $21,555,000 - 30.9%
“Best Golf Course in Howard County” by Howard Magazine with Fairway Hills Golf Club receiving an honorable mention.
Community Services Programs $3,681,000 - 5.3%
• Offered Second Sunday swim program,
providing free access to CA’s 23 outdoor pools for all residents for one day in June, July and August. • CA was ranked the Best After School
where the money will be used $69,752,000 Capital Expenditures * $11,003,000 - 15.8%
Program in Howard County by Maryland Family Magazine. • The Volunteer Center Serving Howard
Sport and Fitness Programs and Facilities $25,449,000 - 36.5% Debt Repayment $8,101,000 - 11.6%
County expanded its social media capabilities and enhanced its presence on Facebook and Twitter.
Board of Directors $977,000 - 1.4%
• CA was ranked the Best Summer Camp in
Howard County by Maryland Family Magazine. • Received more than 1,600 “Likes” on the
CA Facebook page.
Administrative Services $584,000 - 0.8% Contingencies/Other $928,000 - 1.3% Village Community Associations $4,420,000 - 6.3%
Open Space Management $10,915,000 - 15.7% Community Community Development/ Services Sustainability Programs $1,484,000 - 2.1% $5,891,000 - 8.5%
• Hired a watershed manager to manage
the Columbia watershed and watershed restoration; a community planner to help CA evolve Columbia into a community of the future; and a project manager for the Customer Service System project.
* Total Capital Expenditures of $11,500,000 have been decreased by $497,000 due to certain unallocated non-cash adjustments. * The most recent financial statements and independent audit report are located at ColumbiaAssociation.org. This data representation is not in accordance with Generally Accepted Accounting Principles (GAAP).
• Hosted a cuisine exchange for adults in
Cergy-Pontoise, France. Participants enjoyed a week of cuisine lessons, dining at local restaurants, visits to farms and markets and sightseeing.
wisdom Annual Report 2011 Columbia Association 3
To learn more about CA’s annual charge
visit
Company Summary and Administrative Services
WhyIPayCA.org
C
olumbia Association (CA) finished FY11 with an increase in net assets of nearly $7.5 million. Total income of $61.2 million was on target for FY11, and slightly
higher than FY10. Total operating expenses were almost nine percent below budget, a favorable variance of nearly $5.3 million, due to delays in capital project completion and good cost control over personnel-related and operating expenses. The combination of the depreciation variance and the interest variance is $2.4 million or 45.7 percent of the total variance; close to half of the expense savings is primarily due to capital spending that was delayed, not eliminated. The unfavorable variance of $577,000 as compared to budget is attributable primarily to shortfalls in four of the eight income categories: annual charge; memberships; fees; and sales. The shortfalls in these four categories were partially offset by favorable variances in other income categories. Interest expense is negative for the year because the adjustment of
Communications and Marketing
hrough the end of fourth quarter, combined membership income was $49,000 less than budget. Retention of Package Plan memberships remained high at 102.5 percent in the fourth quarter; this number includes renewal of multiyear memberships. Package Plan sales were above FY10 by 3,407 units and 101 units over budget. This increase is due to strong Package Plan promotions and e-marketing campaigns. This service bureau has launched a social media initiative and reached a milestone of 1,600 “likes” on the CA Facebook page. We also launched two new social media sites, 365 Wellness Facebook campaign and CA Events Advisor (see page 1 for URLs). We coordinated the first Member Advantage Expo at Supreme Sports Club to promote the development of our new Member Advantage web site. Communications and Marketing received more than 500 marketing requests, which garnered more than 30,000 flyers, posters and other promotional materials for the organization. Our CA Points program will give free Package Plan and Outdoor Pool memberships to more than 700 Howard County students this year. We are continuing our goal of informing Columbia residents about CA activities, programs and events through various social media platforms, advertisements, web sites and e-marketing campaigns. Other programs include Columbia Matters TV show, CA Monthly newsletter and the CA Activities Guide.
T
4 Columbia Association Annual Report 2011
Community Development / Sustainability
he Community Development/ Sustainability Service Bureau (Community Building/ Sustainability going forward — CB/S) completed this first year of operation with a favorable variance from the budget of $183,000 in total operating expenses and an increase in net assets of $392,000. This service bureau was established with some of the existing operational areas formerly in Open Space Management (Landscape Services and Capital Improvements) and two new areas (Community Planning and Watershed Management). All areas of the service bureau made progress in moving the Columbia Association and the Columbia community forward in preparing our organization and community for the future and in protecting Columbia’s resources and assets.
T
➤
Community Services
he Community Services Division finished FY11 $477,000 ahead of budget. Total income increased over budget and over the previous year mainly due to an increase in tuition and enrollment income from additional School Age Services participants. Total expenses were less than budget, but more than last year as additional operating supplies were purchased for School Age Services. More than 4,200 campers from pre-school through 10th grade participated in 24 different summer camps. More than 100 youngsters attended CA’s camps thanks to CA’s income-qualified program at a subsidy of approximately $75,000. The Columbia Community Exchange, time banking program, has 243 members and facilitated 326 service exchanges this year, exceeding its goal by 20 percent. The Columbia Art Center enhanced its offerings for maturing adults and home-schooled youth. The Columbia Teen Center and Teen Outreach programs implemented many youth-run programs such as Teen Band Nights and charity fundraisers. Among the programs that are supported by the estimated year-end annual charge investment are the Summer Lakefront Festival, Columbia Archives, Sister Cities, Art Center, Volunteer Center Serving Howard County, Teen Center, Columbia Community Exchange, access to camps and Before and After School Care for incomequalified youth and support to the village associations.
T
To read complete division reports, please
visit
CAmonthly.org
the interest rate used for budgeting to the actual rate is made on the Annual Charge page. Operating supplies/expenses are under budget by $165,000 for the combined service bureaus, primarily as a result of savings in office and computer supplies, printing and training. Utilities expense is over budget because of greater than anticipated charges for internet service. Repairs and maintenance expense for the combined services bureaus is over budget by $259,000 due mainly to an unfavorable variance in that line item in the Information Technology (IT) Department, as a result of unbudgeted Lawson annual maintenance and the Microsoft Assurance renewal. For further explanation of individual variances throughout CA’s operations, refer to the FY11 Fourth Quarter Board Report and the Division Directors’ reports. Columbia Association was incorporated in 1965 as the Columbia Parks and Recreation Association.
Sport and Fitness
he Sport and Fitness Division exceeded budget by $988,000 and exceeded prior year net from operations by $1,042,000. This was primarily a result of strong membership renewals and good expense controls, particularly in personnel. Nine of the budget centers performed better than budget at yearend. These included the Outdoor Pools, Columbia Swim Center, Member Advantage (formerly Discount Buying Service), Columbia Athletic Club, Columbia Gym, Supreme Sports Club, Columbia Horse Center, Columbia Ice Rink and Columbia SkatePark. The Division Administration, Fairway Hills, Hobbit’s Glen and Tennis failed to achieve budget. Those budget centers that performed better than FY10 include the Outdoor Pools, Swim Center, Hobbit’s Glen Golf Club, Member Advantage, Athletic Club, Columbia Gym, Supreme Sports Club, Horse Center, SkatePark and Ice Rink. At the fitness facilities, relatively new programs like Zumba®, Gravity®, TRX® and small group training joined with the always-popular group fitness classes to keep members’ interest and retention. The physician referral programs Fit Beginnings and Columbia Optimal Health were successful in showing people the benefits of exercise.
T
Open Space Management
he Open Space Management Division completed the year better than the budget in total operating expenses by $2,313,000 and with a decrease in net assets of $11,364,000. This represents a favorable variance of $2,980,000. The majority of the departments in the division had total operating expenses less than the budget through the year. Land Maintenance expenses were less than budget in most line items through the year. The RV Storage Park was better than budget through the year in total operating expenses and had an almost 40 percent increase in revenue compared to the prior year. By the end of fiscal year 2011, a total of $9,819,000 of annual charge revenue was used to protect and maintain the environmental assets of Columbia. This includes more than 3,600 acres of open space, 93.5 miles of pathways, 171 tot lots, 279 footbridges, three lakes, 41 ponds, 34 miles of stream valleys as well as Symphony Woods Park, an extensive network of plazas, picnic areas, meadows, forestland, basketball and tennis courts, along with other recreational areas. Because of the annual charge paid by Columbia residents, Columbia remains a place where residents, surrounded by the natural environment and landscaped areas, can partake of this beauty as they go about their everyday lives.
T
Annual Report 2011 Columbia Association 5
Statements of Financial Position
Who We Are
ASSETS
2011
2010
Cash and Cash Equivalents
$77,000
$179,000
14,250,000
13,947,000
1,308,000
1,000,000
957,000
1,229,000
Risk Management Fund
6,923,000
6,878,000
Workers’ Compensation Fund
1,670,000
1,463,000
101,096,000
95,612,000
319,000
319,000
36,000
60,000
$126,636,000
$120,687,000
$14,755,000
$12,328,000
878,000
1,146,000
Accounts Payable and Accrued Expenses
11,543,000
8,413,000
Deferred Revenue
15,061,000
14,839,000
42,237,000
36,726,000
21,415,000
26,933,000
149,000
244,000
3,110,000
4,521,000
Total Term Debt
24,674,000
31,698,000
Total Liabilities
66,911,000
68,424,000
59,725,000
52,263,000
$126,636,000
$120,687,000
Accounts Receivable, Net Prepaid Expenses and Other Assets Debt Service Fund
Property, Facilities and Equipment, Net Intangible Assets, Net Deferred Bond Issuance/Financing Costs, Net TOTAL ASSETS
LIABILITIES AND NET ASSETS LIABILITIES Line of Credit Accrued Interest
Term Debt: Senior Secured Bonds Capital Lease Obligations Term Loan
UNRESTRICTED NET ASSETS Total Net Assets TOTAL LIABILITIES AND NET ASSETS
6 Columbia Association Annual Report 2011
C
reated in 1965, two years prior to Columbia itself, Columbia Association (CA) strives to enhance the quality of life for people living and working in Columbia, respect the land and ensure that the city remains an open, integrated and caring community. Through its multitude of community service and fitness and recreation programs, CA seeks to fulfill this mission and extend the vision of Columbia’s founder, James Rouse, to the multicultural palette of residents who call Columbia home. Governed by a resident-elected Board of Directors, CA is responsive to the needs of the community and plays a vital role in the lives of residents. CA programs encourage our community to celebrate its diversity, not only in race, but also in age, religion, gender and economic status. CA also prides itself on programs that promote community service. Other CA offerings include special programming for tots, teens and seniors. Tots and older school-aged children participate in the KidSpace program, Before and After School Care at 20 area schools, a variety of summer day camps and more. Teens enjoy dances, socials, programs and speakers organized by the Teen Center and the Teen Outreach Program. No matter your age or income, CA is proud to offer income-qualified programs so that everyone can be a part of all that Columbia has to offer. For residents whose household income falls within CA’s income guidelines, CA offers
Who We Are
discounts up to 75 percent for memberships to CA facilities or summer camps. CA operates a welcome center; an art center; a teen center; an archive; a volunteer center; three fitness facilities; an ice rink; a SportsPark; two golf clubs; three tennis clubs; 23 outdoor swimming pools, including two mini-WaterParks; five indoor swimming pools, including a hot water therapy pool. CA also owns and leases Columbia Horse Center and the building housing Family and Children’s Services of Central Maryland. CA maintains 3,600 acres of Columbia’s open space. This includes approximately 93.5 miles of pedestrian pathways, 171 tot lots, 279 footbridges, three man-made lakes, 41 ponds, 34 miles of stream valleys, the 40-acre Symphony Woods, Wilde Lake Park and the Lake Elkhorn Park and Pavilion. It also includes an extensive network of pedestrian underpasses and overpasses, meadows, forestland, basketball courts, public tennis courts, Town Center and village center plazas and the community centers and recreational facilities located throughout the community. Through the breadth of its many programs and services, CA constantly attempts to fulfill the promise made by its founder, James Rouse, during a 1963 speech: “There really can be no other right purpose of community except to provide an environment and an opportunity to develop better people.” We are proud to be an extension of Rouse’s original vision, and we will continue his great legacy for generations to come.
Statements of Activities
INCOME SERVICE BUREAUS Administrative: Property Assessments Interest Income Unrealized Gain (Loss) on Marketable Securities Operations: Sport and Fitness Community Services Open Space Management Communications and Marketing Community Development and Sustainability
2011
2010
$32,436,000 113,000 17,000
$32,077,000 161,000 (65,000)
24,147,000 3,825,000 484,000 5,000 158,000
23,718,000 3,682,000 130,000 4,000 —
TOTAL INCOME
61,185,000
59,707,000
EXPENSES SERVICE BUREAUS Operations: Sport and Fitness Community Services Open Space Management Communications and Marketing Community Development and Sustainability Administrative Interest TOTAL EXPENSES
23,360,000 8,844,000 8,896,000 799,000 1,277,000 7,918,000 2,629,000 53,723,000
23,855,000 8,465,000 10,160,000 787,000 — 7,315,000 3,228,000 53,810,000
7,462,000
5,897,000
INCREASE IN UNRESTRICTED NET ASSETS PRIOR PERIOD OF ADJUSTMENT UNRESTRICTED NET ASSETS, BEGINNING OF YEAR UNRESTRICTED NET ASSETS, END OF YEAR
—
(1,004,000)
52,263,000
47,370,000
$59,725,000
$52,263,000
Annual Report 2011 Columbia Association 7
Statements of Cash Flows
Treasurer’s Note
2011
2010
$7,462,000
$5,897,000
7,670,000 24,000 77,000 (17,000)
7,612,000 30,000 82,000 65,000
(303,000) (308,000) (268,000) 3,130,000 222,000 17,689,000
534,000 48,000 (244,000) 472,000 (595,000) 13,901,000
37,000 (13,260,000) 29,000 (13,194,000)
12,000 (7,080,000) 2,000 (7,066,000)
2,427,000
(268,000)
(5,518,000) (95,000) (1,411,000) (4,597,000) (102,000) 179,000
(5,046,000) (93,000) (1,324,000) (6,731,000) 104,000 75,000
$77,000
$179,000
CASH FLOWS FROM OPERATING ACTIVITIES
Increase in Unrestricted Net Assets Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: Depreciation Expense and Amortization Amortization of Deferred Bond Issuance Costs Loss (gain) on Disposal of Fixed Assets Unrealized (gain) loss on Marketable Securities Effects of Changes in Operating Assets and Liabilities: Accounts Receivable Prepaid Expenses and Other Assets Accrued Interest Accounts Payable and Accrued Expenses Deferred Revenue Net Cash Provided by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES
Net Purchases of Investments Held by Trustees Purchase of Property, Facilities and Equipment Proceeds from the Sale of Equipment Net Cash Used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES
Line of Credit Long-term Debt Principal Payments: Senior Secured Bonds Capital Lease Obligations Term Loan Net Cash Used in Financing Activities INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR CASH AND CASH EQUIVALENTS, END OF YEAR
he financial information on pages six through eight was prepared by Columbia Association management, and the FY2011 statements are in the process of being audited by Clifton Gunderson LLP, a Baltimorebased accounting and consulting firm. The data represents the Columbia Association’s Statement of Financial Position between April 30, 2010, and April 30, 2011, and the related statement of activities and cash flows for the years then ended. This information should be read in conjunction with the summary of significant accounting policies and notes to financial statements that, along with the audited financial statements, will be made available to the public at the beginning of August 2011. For questions regarding this information, please contact the treasurer’s office at 410-715-3131.
T
ca ColumbiaAssociation
8 Columbia Association Annual Report 2011