An electronic edition of the July CA Monthly is online at CAmonthly.org

report

Columbia Association2011

Year In ReviewCA’s Fiscal Year 2011 May1, 2010-April 30, 2011Accomplishments & Initiatives

• Remodeled CA’s organizational structurewith the new Service Bureau Model; thenew structure enhances both internal andexternal customer service to allow teammembers to respond faster and moreefficiently to resident needs and companyinitiatives.

• Started an effort to update and strengthenthe CA brand. As part of that effort, wehave begun using a new logo on alladvertisements, publications, etc. CA isdeveloping a program to further educateand inform team members on the valueof the CA brand.

• Began developing an Aquatics MasterPlan to document existing conditions;assess the future needs of residents andother users; and make recommendationsfor future investments in Columbia’saquatics 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 $10pool voucher so that resident familiescould visit one of CA’s 23 outdoor poolsfor one time during June, July or Augustfor only $10.

• CA’s television show Columbia Matters(ColumbiaMatters.org) was awarded onebronze 2011 Telly Award in theinformation category for the October2010 episode, which promoted breastcancer awareness.

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

Annual Report 2011 Columbia Association 1

continued on page 2

annual

2 Columbia Association Annual Report 2011

commitment

Year In Review

• Produced and distributed CA ActivitiesGuide to CA resident households.

• Held eighth annual Images of Freedomposter contest for Columbia’s middleand high school students in honor ofBlack History Month and eighth annualDía de la Familia event commemoratingHispanic Heritage Month.

• Columbia Art Center enhanced its serviceofferings for maturing adults throughpartnerships with the Office on Agingand incorporated daytime classes forhome-schooled youth.

• More than 4,200 campers from pre-school through 10th grade participatedin 24 different summer camps.

• Held eighth annual Hear My Voice TeenIdol event during which teens competedin a singing competition.

• Supreme Sports Club was ranked the“Best Gym/Health Club in HowardCounty” by Howard Magazine withColumbia Athletic Club and Columbia Gymreceiving honorable mentions.

• Partnered with Columbia schools, for the10th year, so that more than 700children had the opportunity to earnaccess to recreational facilities forthemselves and their families bybettering their academic and behavioralperformance.

• Awarded Maggie J. Brown Spirit ofColumbia scholarships to five highschool students.

Letter from the CA President and CA Board of Directors

continued from page 1Dear Resident,

Columbia Association (CA) is pleased to present its Fiscal Year 2011 Annual Report. Columbia’sfounder, James Rouse, stated that “the most successful community would be that which contributed themost by its physical form, its institutions and its operation to the growth of people.” In support ofRouse’s vision, CA’s mission is to enhance the quality of life for people living or working in Columbia and toensure 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 chargehelps to fulfill CA’s mission. This charge contributes to CA’s wide variety of programs, services andamenities; 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 agathering 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 amenitiesand a warm sense of community. If you are new to the community, we invite you to attend one of CA’sWelcome Events to introduce yourself to other local residents and discover Columbia’s history. The nextWelcome Event will be Columbia International Day, July 23, from 2-10pm, at the DowntownColumbia Lakefront.

CA exists because of residents like you — you determine our success. Please take a moment to visit ourweb 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,

Phillip Nelson Michael CornellPresident/CEO, Columbia Association Chairperson, CA Board of Directors

Annual Report 2011 Columbia Association 3

• Celebrated Columbia’s diversity withColumbia International Day.

• Hobbit’s Glen Golf Club was ranked the“Best Golf Course in Howard County”by Howard Magazine with Fairway HillsGolf Club receiving an honorable mention.

• Offered Second Sunday swim program,providing free access to CA’s 23outdoor pools for all residents for oneday in June, July and August.

• CA was ranked the Best After SchoolProgram in Howard County byMaryland Family Magazine.

• The Volunteer Center Serving HowardCounty expanded its social mediacapabilities and enhanced its presence onFacebook and Twitter.

• CA was ranked the Best Summer Camp inHoward County by Maryland FamilyMagazine.

• Received more than 1,600 “Likes” on theCA Facebook page.

• Hired a watershed manager to managethe Columbia watershed and watershedrestoration; a community planner tohelp CA evolve Columbia into acommunity of the future; and a projectmanager for the Customer ServiceSystem project.

• Hosted a cuisine exchange for adults inCergy-Pontoise, France. Participantsenjoyed a week of cuisine lessons, diningat local restaurants, visits to farms andmarkets and sightseeing.

Year In Review

Columbia Association FY12 Approved Budget: Looking Toward Next YearSummary of Funds, Expenditures and Annual Borrowings

where the money will come from$69,752,000

where the money will be used$69,752,000

* 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).

wisdom

Borrowings$7,006,000 - 10.0%

Commercial Annual Charge$11,607,000 - 16.6%Interest and Others

$322,000 - 0.5%

Community Services Programs$3,681,000 - 5.3%

Residential Annual Charge$21,555,000 - 30.9%

Sport and Fitness Income$25,581,000 - 36.7%

Capital Expenditures *$11,003,000 - 15.8%

Community Services Programs$5,891,000 - 8.5%

Village Community Associations$4,420,000 - 6.3%

Contingencies/Other$928,000 - 1.3%

Sport and Fitness Programs and Facilities

$25,449,000 - 36.5%

Open Space Management$10,915,000 - 15.7%

Community Development/Sustainability$1,484,000 - 2.1%

Administrative Services$584,000 - 0.8%

Debt Repayment$8,101,000 - 11.6%

Board of Directors$977,000 - 1.4%

Through the end of fourth quarter, combinedmembership income was $49,000 less thanbudget. Retention of Package Plan member -

ships remained high at 102.5 percent in the fourthquarter; this number includes renewal of multi-year memberships. Package Plan sales were aboveFY10 by 3,407 units and 101 units over budget.This increase is due to strong Package Plan promo -tions and e-marketing campaigns. This service bureauhas launched a social media initiative and reached amilestone of 1,600 “likes” on the CA Facebookpage. We also launched two new social media sites,365 Wellness Facebook campaign and CA EventsAdvisor (see page 1 for URLs). We coordinated thefirst Member Advantage Expo at Supreme SportsClub to promote the development of our newMember Advantage web site. Communications andMarketing received more than 500 marketingrequests, which garnered more than 30,000 flyers,posters and other promotional materials for theorganization. Our CA Points program will give freePackage Plan and Outdoor Pool memberships tomore than 700 Howard County students this year.We are continuing our goal of informing Columbiaresidents about CA activities, programs and eventsthrough various social media platforms, advertisements,web sites and e-marketing campaigns. Other programsinclude Columbia Matters TV show, CA Monthlynewsletter and the CA Activities Guide.

Columbia 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 slightlyhigher than FY10. Total operating expenses were almost nine percent below budget, a favorable variance of nearly $5.3 million, due to delays in capital projectcompletion 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 unfavorablevariance 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. Theshortfalls in these four categories were partially offset by favorable variances in other income categories. Interest expense is negative for the year because the adjust ment of

Company Summary and Administrative Services

Communicationsand Marketing

The Community Services Division finished FY11$477,000 ahead of budget. Total income increasedover budget and over the previous year mainly

due to an increase in tuition and enrollment incomefrom additional School Age Services participants. Totalexpenses were less than budget, but more than last yearas additional operating supplies were purchased forSchool 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 ofapproximately $75,000.The Columbia Community Exchange, time banking

program, has 243 members and facilitated 326 serviceexchanges this year, exceeding its goal by 20 percent.The Columbia Art Center enhanced its offerings for

maturing adults and home-schooled youth. TheColumbia Teen Center and Teen Outreach programsimplemented many youth-run programs such as TeenBand Nights and charity fundraisers. Among theprograms that are supported by the estimated year-endannual charge investment are the Summer LakefrontFestival, Columbia Archives, Sister Cities, Art Center,Volunteer Center Serving Howard County, TeenCenter, Columbia Community Exchange, access tocamps and Before and After School Care for income-qualified youth and support to the village associations.

4 Columbia Association Annual Report 2011

➤

To learn more about CA’s

annual charge

visit WhyIPayCA.org

The Community Development/Sustainability Service Bureau(Community Building/

Sustainability going forward — CB/S)completed this first year of operationwith a favorable variance from the budgetof $183,000 in total operating expensesand an increase in net assets of$392,000. This service bureau wasestablished with some of the existingoperational areas formerly in OpenSpace Management (LandscapeServices and Capital Improvements)and two new areas (CommunityPlanning and Watershed Management).All areas of the service bureau madeprogress in moving the ColumbiaAssociation and the Columbiacommunity forward in preparing ourorganization and community for thefuture and in protecting Columbia’sresources and assets.

CommunityDevelopment /Sustainability

Community Services

The Open Space Management Division completed the year betterthan the budget in total operating expenses by $2,313,000 andwith a decrease in net assets of $11,364,000. This represents a

favorable variance of $2,980,000. The majority of the departments in thedivision had total operating expenses less than the budget through theyear.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 revenuecompared 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 ofColumbia. This includes more than 3,600 acres of open space, 93.5 milesof pathways, 171 tot lots, 279 footbridges, three lakes, 41 ponds, 34miles of stream valleys as well as Symphony Woods Park, an extensivenetwork of plazas, picnic areas, meadows, forestland, basketball andtennis courts, along with other recreational areas. Because of the annualcharge paid by Columbia residents, Columbia remains a place whereresidents, surrounded by the natural environment and landscaped areas,can partake of this beauty as they go about their everyday lives.

The Sport and Fitness Division exceeded budget by $988,000 andexceeded prior year net from operations by $1,042,000. This wasprimarily a result of strong membership renewals and good

expense controls, particularly in personnel.Nine of the budget centers performed better than budget at year-

end. These included the Outdoor Pools, Columbia Swim Center,Member Advantage (formerly Discount Buying Service), ColumbiaAthletic Club, Columbia Gym, Supreme Sports Club, ColumbiaHorse Center, Columbia Ice Rink and Columbia SkatePark. TheDivision Administration, Fairway Hills, Hobbit’s Glen and Tennisfailed to achieve budget. Those budget centers that performed betterthan FY10 include the Outdoor Pools, Swim Center, Hobbit’s GlenGolf 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 groupfitness classes to keep members’ interest and retention.The physician referral programs Fit Beginnings and Columbia

Optimal Health were successful in showing people the benefits ofexercise.

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 combinedservice bureaus, primarily as a result of savings in office and computer supplies, printing and training. Utilities expense is over budget because of greater thananticipated charges for internet service. Repairs and maintenance expense for the combined services bureaus is over budget by $259,000 due mainly to anunfavorable variance in that line item in the Information Technology (IT) Department, as a result of unbudgeted Lawson annual maintenance and the MicrosoftAssurance renewal. For further explanation of individual variances throughout CA’s operations, refer to the FY11 Fourth Quarter Board Report and the DivisionDirectors’ reports. Columbia Association was incorporated in 1965 as the Columbia Parks and Recreation Association.

Annual Report 2011 Columbia Association 5

To read complete division reports, please

visit CAmonthly.org

Sport and Fitness Open Space Management

6 Columbia Association Annual Report 2011

Statements of Financial Position Who We Are

Created in 1965, two yearsprior to Columbia itself,Columbia Association (CA)strives to enhance the quality

of life for people living and working inColumbia, respect the land and ensurethat the city remains an open,integrated and caring community.Through its multitude of communityservice and fitness and recreationprograms, CA seeks to fulfill thismission and extend the vision ofColumbia’s founder, James Rouse, tothe multicultural palette of residentswho call Columbia home.Governed by a resident-elected Board

of Directors, CA is responsive to theneeds of the community and plays a vitalrole in the lives of residents. CA programsencourage our community to celebrate itsdiversity, not only in race, but also in age,religion, gender and economic status. CAalso prides itself on programs thatpromote community service. Other CA offerings include special

programming for tots, teens andseniors. Tots and older school-agedchildren participate in the KidSpaceprogram, Before and After School Careat 20 area schools, a variety of summerday camps and more. Teens enjoydances, socials, programs and speakersorganized by the Teen Center and theTeen Outreach Program. No matter your age or income, CA is

proud to offer income-qualified programsso that everyone can be a part of all thatColumbia has to offer. For residentswhose household income falls withinCA’s income guidelines, CA offers

ASSETS 2011 2010

Cash and Cash Equivalents $77,000 $179,000

Accounts Receivable, Net 14,250,000 13,947,000

Prepaid Expenses and Other Assets 1,308,000 1,000,000

Debt Service Fund 957,000 1,229,000

Risk Management Fund 6,923,000 6,878,000

Workers’ Compensation Fund 1,670,000 1,463,000

Property, Facilities and Equipment, Net 101,096,000 95,612,000

Intangible Assets, Net 319,000 319,000

Deferred Bond Issuance/Financing Costs, Net 36,000 60,000

TOTAL ASSETS $126,636,000 $120,687,000

LIABILITIES AND NET ASSETSLIABILITIES

Line of Credit $14,755,000 $12,328,000

Accrued Interest 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

Term Debt:

Senior Secured Bonds 21,415,000 26,933,000

Capital Lease Obligations 149,000 244,000

Term Loan 3,110,000 4,521,000

Total Term Debt 24,674,000 31,698,000

Total Liabilities 66,911,000 68,424,000

UNRESTRICTED NET ASSETSTotal Net Assets 59,725,000 52,263,000

TOTAL LIABILITIES AND NET ASSETS $126,636,000 $120,687,000

Annual Report 2011 Columbia Association 7

Statements of Activities

INCOMESERVICE BUREAUS 2011 2010

Administrative:Property Assessments $32,436,000 $32,077,000Interest Income 113,000 161,000Unrealized Gain (Loss) on Marketable Securities 17,000 (65,000)

Operations:Sport and Fitness 24,147,000 23,718,000Community Services 3,825,000 3,682,000Open Space Management 484,000 130,000

Communications and Marketing 5,000 4,000Community Development and Sustainability 158,000 —

TOTAL INCOME 61,185,000 59,707,000

EXPENSES SERVICE BUREAUSOperations:

Sport and Fitness 23,360,000 23,855,000Community Services 8,844,000 8,465,000Open Space Management 8,896,000 10,160,000

Communications and Marketing 799,000 787,000Community Development and Sustainability 1,277,000 —Administrative 7,918,000 7,315,000Interest 2,629,000 3,228,000TOTAL EXPENSES 53,723,000 53,810,000

INCREASE IN UNRESTRICTED NET ASSETS 7,462,000 5,897,000

PRIOR PERIOD OF ADJUSTMENT — (1,004,000)

UNRESTRICTED NET ASSETS, BEGINNING OF YEAR 52,263,000 47,370,000

UNRESTRICTED NET ASSETS, END OF YEAR $59,725,000 $52,263,000

Who We Are

discounts up to 75 percent for member -ships to CA facilities or summer camps.CA operates a welcome center; an art

center; a teen center; an archive; avolunteer center; three fitness facilities; anice rink; a SportsPark; two golf clubs;three tennis clubs; 23 outdoor swimmingpools, including two mini-WaterParks;five indoor swimming pools, including ahot water therapy pool. CA also ownsand leases Columbia Horse Center andthe building housing Family andChildren’s Services of Central Maryland.CA maintains 3,600 acres of

Columbia’s open space. This includesapproximately 93.5 miles of pedestrianpathways, 171 tot lots, 279 footbridges,three man-made lakes, 41 ponds, 34 miles of stream valleys, the 40-acreSymphony Woods, Wilde Lake Parkand the Lake Elkhorn Park andPavilion. It also includes an extensivenetwork of pedestrian underpasses andoverpasses, meadows, forestland,basketball courts, public tennis courts,Town Center and village center plazasand the community centers andrecreational facilities located throughoutthe community.Through the breadth of its many

programs and services, CA constantlyattempts to fulfill the promise made byits founder, James Rouse, during a1963 speech: “There really can be noother right purpose of communityexcept to provide an environment andan opportunity to develop betterpeople.” We are proud to be anextension of Rouse’s original vision, andwe will continue his great legacy forgenerations to come.

8 Columbia Association Annual Report 2011

CASH FLOWS FROM OPERATING ACTIVITIES2011 2010

Increase in Unrestricted Net Assets $7,462,000 $5,897,000Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities:

Depreciation Expense and Amortization 7,670,000 7,612,000Amortization of Deferred Bond Issuance Costs 24,000 30,000Loss (gain) on Disposal of Fixed Assets 77,000 82,000

Unrealized (gain) loss on Marketable Securities (17,000) 65,000Effects of Changes in Operating Assets and Liabilities:

Accounts Receivable (303,000) 534,000Prepaid Expenses and Other Assets (308,000) 48,000Accrued Interest (268,000) (244,000)Accounts Payable and Accrued Expenses 3,130,000 472,000

Deferred Revenue 222,000 (595,000)Net Cash Provided by Operating Activities 17,689,000 13,901,000

CASH FLOWS FROM INVESTING ACTIVITIESNet Purchases of Investments Held by Trustees 37,000 12,000Purchase of Property, Facilities and Equipment (13,260,000) (7,080,000)Proceeds from the Sale of Equipment 29,000 2,000Net Cash Used in Investing Activities (13,194,000) (7,066,000)

CASH FLOWS FROM FINANCING ACTIVITIESLine of Credit 2,427,000 (268,000)Long-term Debt Principal Payments:

Senior Secured Bonds (5,518,000) (5,046,000)Capital Lease Obligations (95,000) (93,000)Term Loan (1,411,000) (1,324,000)

Net Cash Used in Financing Activities (4,597,000) (6,731,000)INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (102,000) 104,000CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 179,000 75,000

CASH AND CASH EQUIVALENTS, END OF YEAR $77,000 $179,000

Statements of Cash Flows Treasurer’s Note

The financial informa tionon pages six througheight was prepared byColumbia Association

management, and the FY2011statements are in the processof being audited by CliftonGunderson LLP, a Baltimore-based accounting andconsulting firm. The datarepresents the ColumbiaAssociation’s Statement ofFinancial Position betweenApril 30, 2010, and April 30,2011, and the related state -ment of activities and cashflows for the years thenended.This information should be

read in conjunction with thesummary of significantaccounting policies and notesto financial statements that,along with the auditedfinancial statements, will bemade available to the publicat the beginning of August2011.For questions regarding this

information, please contact the treasurer’s office at 410-715-3131.

caColumbiaAssociation