Columbia Association (CA) President Padraic Kennedy presented plans to the Columbia Council last night to spend $33.4 million on operations and $6 million on construction next year, including $1 million to buy land for a recreational vehicle storage facility.
Mr. Kennedy called the association's fiscal 1996 spending plan a "fiscally prudent budget that continues basic services" with no increase in the annual property levy and small increases in fees for recreational facility memberships.
The private association levies an annual fee on Columbia property owners to manage recreational facilities, run community programs and maintain parkland. The elected council sets the nonprofit Columbia Association's budget and policies.
Last night's meeting began a two-month budget process that includes meetings between association staff and Columbia's 10 village boards and a public hearing at 8 p.m. Jan. 31 at Kahler Hall in Harper's Choice.
The council plans work sessions in February and expects to approve the 1995-1996 budget, which will take effect May 1, by Feb. 28. The proposed $33.4 million operating budget represents a 5.4 percent increase over this year's $31.7 million budget.
In his presentation, Mr. Kennedy also emphasized that CA projects a $2.4 million operating surplus in the 1995-96 proposed budget, which would be used to reduce the $16 million accumulated operating deficit.
The deficit grew during CA's early years when spending outpaced revenues, peaking at $29 million in 1985. But it has been reduced each year since, as Columbia has grown and recreational facilities have drawn more paying members.
By reducing the deficit, CA has been able to slow the growth rate of debt for capital projects and decrease the amount spent on interest, Mr. Kennedy said.
The association plans to buy 4.75 acres in the former General Electric Co. industrial park off Snowden River Parkway from the Rouse Co. for $1 million -- about $210,000 per acre -- to develop the recreational vehicle storage yard. The facility, which would cost $400,000 to build, is intended to help residents comply with property covenants restricting parking in residential areas. It would accommodate about 250 boats or campers.
The proposed purchase is part of a "package deal" that also would include the Rouse Co. placing several properties -- now excluded from CA's annual property levy -- under the charge. Those properties include the new Snowden Square retail center, anchored by BJ's Wholesale Club and Hechinger, and undeveloped residential property near Owen Brown village, said Robert Krawczak, CA's director of finances.
He said those properties could generate $300,000 to $400,000 annually for CA through the levy -- 73 cents per $100 of assessed property value.
The association would pave and fence off only about half the nearly 5-acre property as a storage yard, Mr. Krawczak said, noting that the parcel is larger than projected demand in Columbia for vehicle storage space.
Mr. Krawczak said the association hasn't determined how to use the remaining 2 1/4 acres. "We could develop other storage," he said. "Maybe [council members] have other ideas."
The proposed operating budget includes two new programs -- a sailing camp and summer "midnight basketball" at Oakland Mills High School for 17- to 24-year-olds. It also reflects the opening of three recreational facilities -- pools in River Hill village and Kendall Ridge and the Fairway Hills Golf Course.