CA releases Annual Report for FY 2009

Click on a CA Division below or scroll down to read the full report.

• Letter from CA President and CA Board Chair
• Year in Review
• Statement of Financial Position and Cash Flows
• Administrative Services
• Communications and Marketing
• Community Services
• Open Space Management
• Sport & Fitness

Letter from the Council/CA Board Chair and CA President
July 2009

Dear Resident,

Columbia Association (CA) is pleased to present its Fiscal Year 2009 Annual Report.  Columbia’s founder, James Rouse, declared 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 the people living and working in Columbia and to ensure that it remains an open, integrated and caring community. This report aims to explain how your annual assessment fee contributes to the programs, services, facilities, open space and events that CA offers in our ongoing effort to fulfill Rouse’s dream.

The programs and services referenced within these pages have grown from Rouse’s vision and Columbia’s community spirit.  At CA, we are always striving to tailor and create programs that meet the needs of our diverse community. The enclosed financial statements, noted achievements and milestones help to illustrate our outreach and our efforts to improve and enhance the lives of Columbia residents.

Columbia has much to offer: the beautiful open spaces, the enticing events, the first-rate amenities and, above all, the warm sense of community.  As residents, you are the reason CA exists – and you are the pillar of our success.  We value your contributions, knowing that your input serves to create innovative and exciting endeavors within the organization.  We look forward to continuing to serve you and your families.  If you are new to the area, we invite you to attend one of CA’s Welcome Events to introduce yourself to other local residents and discover Columbia’s history and vision. Also, please take a moment to visit our web site at ColumbiaAssociation.org to learn more about our great community. 

Embrace Columbia’s motto: Be a part of it!

Sincerely,

Phillip L. Nelson
President, Columbia Association

Philip W. Kirsch
Chairman, CA Board of Directors

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Year in Review
CA’s Fiscal Year 2008
May 1, 2008-April 30, 2009
Accomplishments & Initiatives

• The Open Space Management Division beautified the entrances to our communities and our facilities with more than 10,000 bulbs and annual and perennial flowers. 
• Sponsored Get Active Howard County, a 10-week health and fitness initiative for residents who live in and individuals who work in Columbia, in partnership with several Howard County departments and organizations.
• Increased attendance at Lakefront Wednesdays and KidDay due to increased marketing in print, on the web and in village communications.
• Continued development and testing of the Customer Service System (CSS) to allow CA to better serve members, integrate technology and provide a foundation for future growth.  Tentative launch date: May 1, 2010.
• Columbia Archives launched a new web site, ColumbiaArchives.org, featuring Columbia history, the Archives collection, special events and publications about Columbia.
• Held sixth annual Images of Freedom poster contest for Columbia’s middle and high school students in honor of Black History Month; sixth annual Dia de la Familia event commemorating Hispanic Heritage Month; and fifth annual KidsDay.
• The Art Center enhanced it service offerings for mature adults through partnerships with the Office on Aging and incorporated daytime classes for home-schooled youth. 
• Over 4,200 campers from pre-school through tenth grade participated in 24 different summer camps. 
• The Bermuda grass fairways, installed at Fairway Hills and Hobbit’s Glen Golf Clubs in 2006, and the new greens, installed at Hobbit’s Glen in 2003, have fully matured and have created optimum playing conditions. 
• Held sixth annual Hear My Voice Teen Idol event in which teens competed to win gift certificates, iPods and a feature on “Columbia Matters.”
• Partnered with Columbia schools for the eighth year so more than 700 children had the opportunity to earn access to fitness and recreation facilities for themselves and their families by bettering their academic and behavioral performance.
• Enhanced ColumbiaAssociation.org with improved aesthetics, navigation and a Google search engine
• CA developed a Columbia Watershed Management Plan (CWMP) that outlines a long-term, far-reaching strategy to protect and restore the Little and Middle Patuxent rivers and adjacent waters.  Learn more at ColumbiaWatershed.org.
• Awarded Spirit of Columbia scholarships to six high school students.
• Launched an e-mail campaign via a monthly KidsKorner e-Newsletter with information about upcoming contests, events and more – just for kids!
• Produced and distributed CA Activities Guide to more than 55,000 households.
• Celebrated Columbia’s diversity with International Day.
• Columbia Archives hosted the popular annual BikeAbout historical tour.
• Howard magazine named Hobbit’s Glen Golf Club winner of Best Golf Course, with Fairway Hills Golf Club as an honorable mention. Columbia Athletic Club was named best gym, and both Columbia Gym and Supreme Sports Club were honorable mentions.
• More than 1,700 youth were served on a daily basis in the School Age Services program this year.
• CA’s network security was further enhanced by completing the fine-tuning of the Network Admission Control implementation; installing Ironport, an email and web security application; and upgrading anti-virus and anti-spam software on all CA desktops, laptops and servers.
• 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.
• The Volunteer Center Serving Howard County expanded its social media capabilities and created a presence on Facebook and Twitter.
• After 8 years of serving the Columbia community, Maggie Brown ended her tenure as CA President.  She was replaced by new CA President Phil Nelson.

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Administrative Services

COMPANY-WIDE FINANCIAL HIGHLIGHTS

As noted in the President’s Report, the Columbia Association ended FY 09 with an increase in net assets of $5.9 million.  Total revenues and total operating expenses were $59.8 million and $49.9 million, respectively.

Total income was essentially on budget with a small positive variance of $517,000 (0.9 percent), as increases in Tuition & Enrollment, Memberships and Package Plan revenues offset lower than budgeted revenue from Annual Charge, Fees and Other Income.  The negative variance in Annual Charge revenue, the first time that Annual Charge revenue has been below budget in many years, is due to fewer than budgeted property sales (based on the phase-in value and not subject to the cap) and less new construction than was projected as the real estate market deteriorated over the past year. 

Total operating expenses were under budget by $1.9 million, or 3.6 percent, primarily attributable to the nearly $1.1 million savings in depreciation expense.  The depreciation expense variance is due to the postponement of $971,000 in capital projects from 2009 and prior (identified as part of the FY 10 budget process) as well as other capital projects closing later than expected.  Projects that were expected to be completed, or close, in FY 2008, for example, but are closing in FY 2009 will only incur a half-year of depreciation instead of a full year as was budgeted. 

Interest expense savings of $410,000 are primarily the result of the postponement of  issuance of new financing due to delays in some capital projects (mainly lake dredging), credit market considerations and greater than budgeted cash flow from operations.  There were no operating contingency needs in FY 09, and the Board of Directors-initiated pilot project to record Board meetings was re-classified to Fees Expense, resulting in the $377,000 positive variance in Board/Operating Contingencies.

For explanations of individual variances throughout CA’s operations, please refer to the FY 09 Fourth Quarter Board Report and the Division Directors’ respective reports.

ADMINISTRATIVE SERVICES DIVISION FINANCIAL HIGHLIGHTS

The Administrative Services Division finished the year $830,000 below budget, as a result of savings in nearly every expense category, including depreciation and interest, as described above.  Personnel-related costs combined were under budget by $281,000, mainly due to unfilled positions in the Information Technology and Human Resources departments.  Fees expense exceeded budget by $227,000, as a result of litigation for unanticipated cases related to employment practices and the annual charge.  Repairs and Maintenance expense was under budget by $130,000 from efforts to reduce costs in IT maintenance contracts.

For further explanation of specific variances throughout CA’s operations, please refer to the FY 2009 Fourth Quarter Board Report and the Division Directors’ reports.

INFORMATION TECHNOLOGY (IT) DEPARTMENT HIGHLIGHTS

Customer Service System (CSS)

A comprehensive report on the progress of the CSS development was posted on CA’s website as part of the back-up materials for the June 15, 2009 Performance Oversight Committee meeting.  In summary, the team made progress in the following areas:

• Lawson Interface – All modifications to Lawson were identified, and software changes were completed.
• Preview 4– CA’s response to Preview 4 was sent to ITC on June 5.  A conference call has been scheduled with ITC on June 18 to clarify any questions ITC may have after its review.
• Alpha 1– Alpha 1 software, pertaining to the set-up screens that are now operational, was delivered to CA on May 28, two days later than scheduled.  CA’s Subject Matter Experts (SMEs) are analyzing the software.
• Web Preview 1 - Web Preview 1 was demonstrated via webcast on June 3.  The SMEs were very pleased with the initial look and feel of the web portal.  CA’s comments were sent to ITC.  A Web Preview 2 webcast will be on June 17.
• Change Request – Negotiations with ITC for a custom modification to CSS have been completed, and the cost will be $17,000.  This enhancement relates to School Age Services’ Full Day Program.  Current funding approved by the Board of Directors will cover this expense.
• Archives and History – Preliminary discussions took place with ITC on archives and history.  Three years of Prime history will be migrated to CSS, and the remainder of the history will be migrated offline to a SQL database.
• Phase 2 Software Development – ITC and CA agreed to discuss Phase 2 enhancements when CSS is in User Acceptance Testing, scheduled for October.
• Project Plan – Listed below are key target dates:
  June 16 – Alpha II
  August 4 – Alpha III
  September 8 – Beta
  October 6 – User Acceptance Testing (UAT)
  May 1 – Go Live
• CSS Source Code – CA continues to receive source code developed to date on a weekly basis.
• Go Live Date – On target for May 1, 2010

Other Significant IT Department Accomplishments

• CA’s network security was further enhanced by completing the fine-tuning of the Network Admission Control implementation; installing Ironport, an email and web security application; and upgrading anti-virus and anti-spam software on all CA desktops, laptops and servers.
• The IT Department worked closely with the Communications and Marketing Division in implementing software to support marketing efforts that tracks customer information and can be accessed by multiple sales teams.
• The IT Department worked with General Growth Properties and an electrical contractor to remove a transformer from inside the system room and re-establish the same outside the room.  The team also supported the Accounting Department renovation and replaced old CAT 3 cables with Cat 5e cables, re-routing power sources.  In both cases, there was minimal to no disruption to operations.  

PURCHASING DEPARTMENT

In FY 09, the Purchasing Department conducted a record 69 procurements with an anticipated savings of $280,000.  The purchasing policy was updated twice in FY 09 to include suggestions made by the Performance Oversight Committee and changes advised by the Purchasing Manager.  A new comprehensive, detailed and user-friendly purchasing training manual was developed.  All 140 CA team members with purchasing responsibilities were trained by the Purchasing Manager on best purchasing practices.  More than 20 training sessions were held with a rating of excellent by many attendees.

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Communications & Marketing

Income from the sale of Package Plan memberships was 3.8% greater than budget in FY09, and total Membership Income finished $844,000 better than budget.  This is an excellent outcome despite the current economic conditions, and was due, in part, to the value of CA’s current programs/services; CA’s new programs; award-winning advertising creative; improved communications through CA’s enhanced web portal; and increased training.

Other significant accomplishments in FY09 include providing sales and services to thousands of residents who visited the Membership Service Center; developing and implementing a Columbia-wide survey to address a full range of communications topics,; producing and distributing CA Activities Guide to 36,000 resident households; distributing CA Monthly newsletter through the Columbia Flier with new, more robust content and exclusive content online; launching an e-mail campaign via a KidsKorner e-Newsletter; planning the sixth annual Images of Freedom poster contest for Columbia’s middle and high school students in honor of Black History Month; and hosting the sixth annual Dia de la Familia, the fifth annual KidsDay and the third annual Dog Day Afternoon.

Additional highlights include partnering with Columbia schools for the eighth year for the CA Points program, which allows more than 649 children the opportunity to earn access to recreational facilities for themselves and their families by bettering their academic and behavioral performance; launching new web sites to communicate CA programs and information to residents including the Columbia Watershed Management Plan at www.ColumbiaWatershed.org, the Archives web site at www.ColumbiaArchives.org and the newly enhanced CA web site with improved aesthetics, navigation and a Google search engine; continuing development and testing of the Customer Service System to allow CA to better serve members; increased attendance at Lakefront Wednesdays and Kid’s Day due to increased marketing activities in print, web and Village communications; and continuing distribution of Welcome Packets to new residents at the Welcome Center.

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Community Services

The Community Services Division finished FY 2009 $781,000 ahead of budget. This positive fiscal performance is primarily due to greater than budgeted Tuition and Enrollment income from increased School age Services participation, and savings in Interest Expense, Depreciation, Allocation of Administrative Services Division Expense and Personnel Costs (Salary and Wages, Payroll Expense and Employee Benefits).
           
All of the Community Services departments had a strong fiscal performance.

Some program highlights include:

More than 1,700 youth were served on a daily basis in the School Age Services program this year and the program completed the year $392,000 ahead of budget.  Because of this program, working parents have the security of knowing that their children are cared for in a safe environment before and after school. In addition, 90 participants have gained access through the Income Qualified program with a total subsidy of approximately $100,000.

Over 4,200 campers from pre-school through tenth grade participated in 24 different summer camps.  More than 100 youngsters, who otherwise may not have been able, attended CA’s camps thanks to CA’s income-qualified program at a subsidy of approximately $75,000. 

The Division received $130,000 in grants and program sponsorship during fiscal year 2009. This funding was received in support of important programs such as providing free transportation for seniors to cultural events, office space for the Columbia Archives, sponsorship of the Lakefront events, contributions to the International Exchange and Multicultural program, funding for Teen programs, operational support for the Volunteer Center Serving Howard County and the Columbia Community Exchange Time Banking program.

The Kidspace program at the Supreme Sports Club, Columbia Gym, Athletic Club and Swim Center continued to be well utilized by the community.  The program averaged 150 participants per day at the Supreme Sports Club and Columbia Gym and 60 at the Athletic Club.

The Art Center continued to meet the community needs and enhanced it service offerings for maturing adults through partnerships with the Office on Aging and incorporated daytime classes for home-schooled youth.  The Volunteer Center Serving Howard County expanded its social media capabilities and created a presence on Facebook and Twitter.  In addition, the Teen Center and Teen Outreach programs created opportunities for youth to be engaged in the community by implementing youth run programs such as Teen Band Nights, charity fundraisers, college fairs, environmental and recycling programs and art programs. 

Some of the important programs that are supported by the estimated year-end annual charge investment of $1,947,000, or 27% of the division’s budget, are the Summer Lakefront Festival, the Columbia Archives, the Sister Cities program, grants to community programs, Art Center, Volunteer Center, Teen Center, Columbia Community Exchange and access to camps and before and after school care for income-qualified youngsters.  In addition, it provides support to the village associations in the amount of $5,062,000, or 72% of the division’s budget, to fund village elections, covenant enforcement personnel, village board activities, community building maintenance and community-building programs and services that residents enjoy in the community centers.

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Open Space Management

The Open Space Management Division completed the year with a favorable variance to budget of $1,747,000 and a favorable variance of $822,000 in total operating expenses.  The Land Maintenance Department also completed the fiscal year better than budget in total operating expenses, with a variance of $809,000.

The RV Storage Park completed FY 09 $12,000 better than budget in net from operations.

By the end of fiscal year 2009, a total of $12,069,000 of the annual charge was used to maintain the open space assets of Columbia.  This includes more than 3,500 acres of open space, 93.5 miles of pathways, 167 tot lots, 258 footbridges, three manmade lakes, forty one ponds, 34 miles of stream valleys, the 40-acre Symphony Woods park, an extensive network of plazas, picnic areas, underpasses and overpasses, meadows, forestland, 14 basketball courts, 8 public tennis courts, and the maintenance of 48 facilities owned by the Columbia Association.  This year, the Open Space Management Division beautified the entrances to our communities and our facilities with more than 10,000 bulbs and annual and perennial flowers.  Through the annual charge paid by property owners in Columbia, the Open Space Management Division is involved in programs such as the Columbia Watershed Management Plan and the “Going Green “ Plan so that we remain a place surrounded by natural beauty as we go about our everyday activities.

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Sport & Fitness

The Sport & Fitness Division completed a very successful fiscal year.  Overall the division exceeded budget by $799,000 and exceeded last year’s financial performance by $572,000.  This was primarily the result of strong membership renewals and good expense control. 

Revenues from facility and Package Plan memberships combined exceeded budget by $844,000 (5.3%) and exceeded last year by $1,031,000 (6.5%) while total operating expenses only increased 1.0% versus budget and 1.5% relative to last year. 

A majority of the Sport & Fitness facilities performed better than both budget and last year.  They include:  The Swim Center, The Athletic Club, The Columbia Gym, The Supreme Sports Club, Hobbit’s Glen Golf Club, The Columbia Ice Rink, The Discount Buying Service, and Sport & Fitness Administration.

Although the Tennis Department and The SportsPark fell short of budget, both exceeded last year’s financial performance.  The Horse Center, Outdoor Pools, Fairway Hills Golf Club and the SkatePark all fell short of both budget and last year’s performance. 

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