The Columbia Association is on track to end the current fiscal year with a $4.5 million surplus, based on second quarter earnings.
That amount is $1.5 million more than projected and is caused by higher-than-expected assessment revenue and savings in operating supplies and fee expenses during the quarter, which ended Oct. 31, Columbia Association President Maggie J. Brown told the association's board of directors Thursday night.
The surplus is the latest in a string of positive financial results for the association.
Paul Papagjika, association treasurer, said the extra income from assessments came from reassessed property in the Gateway area, some eastern Columbia parcels and a small number of western Columbia properties.
When the association drafts the budget in December, it uses projected assessment figures, which can be different from the fees collected.
"We have to go based on early assumptions, and things can change" by the time the actual figures are determined, he said.
Construction completed faster than expected in areas including Town Center and the Gateway Industrial Park contributed to the increase in assessment income.
The homeowners association brought in $37.5 million during the second quarter - $23.8 million of that was in assessment fees. It spent $16.1 million in operating expenses, which was $1.2 million less than budgeted.
The association's four departments are all on track to end the fiscal year - which runs from May 1 to April 30 - better than budgeted, but all are carrying operating deficits.
The sports and fitness division is expected to end the year with a $1.8 million deficit, which is $366,000 better than budgeted.
Hobbit's Glen Golf Club was one of the hardest-hit facilities, as it's expected to "fall well short of budget due to the well-publicized problems with some of the greens," said Rob Goldman, CA's vice president for sport and fitness.
The course is expected to end the year $570,000 in the red, which is $220,000 more than budgeted, primarily because of low membership sales and diseases that have damaged greens.
However, the $679,000 included in the draft fiscal year 2004 capital budget to repair all of the course's greens is "expected to reverse this negative fiscal performance," Goldman said.
CA's other golf course, Fairway Hills Golf Club, is also falling behind budget. It is expected to close the year with a $465,000 deficit, which is $27,000 more than anticipated.
Board member Barbara Russell of Oakland Mills asked why Fairway Hills wasn't financially improving, as she thought the course would attract more golfers who are frustrated with the damaged greens at Hobbit's Glen.
"Why aren't we doing better?" she said.
Goldman said that the low budget numbers could be caused by bad weather and golfers who feel Fairway Hills isn't challenging enough.
"My hope is that people who turned their noses up at Fairway Hills will give it a try," Goldman said. "Fairway Hills is a very nice golf course."
CA's 23 outdoor pools are expected to end the year better than budgeted, with $1.4 million in the red, which is $292,000 less than anticipated.
The open space department is expected to close the year $520,000 better than projected, with a $10.3 million deficit.
The 179-space RV park is performing slightly better than anticipated - with a projected $111,000 debt at the end of the year, which is $3,000 better than budgeted.
The community service division is on track to close the year with a $5.8 million deficit, which is $606,000 lower than expected. The division brought in an additional $247,000 from a collection of covenant enforcement fees.
The administrative services division is expected to end the year $282,000 better than budgeted, with a $4.2 million deficit.