New CA Budget Includes Pay Cuts

We're just catching up on this news from a Feb. 27 CA release:

The Columbia Association (CA) Board of Directors has approved the FY 2010 budget. Cognizant of the current economic downturn, the CA Board of Directors approved a budget that reflects spending cutbacks throughout the organization. Key highlights include a postponement of nearly $1.8 million in capital expenditures and a reduction in merit increase potential for all team members. With the slow down of the economy, these cuts are aimed at protecting CA’s financial stability, while continuing to provide all of its services and amenities to the community. The FY 2010 budget has a bottom line that is $593,000 better than the bottom line of the original budget that was proposed in December 2008.

Seven senior staff members, including the president, three vice presidents, two division directors and CA’s general counsel volunteered to reduce their incentive pay by 50 percent. Additionally, there will be a reduction in average merit increases from 3.5 to 3 percent for all team members. The divisions have also delayed hiring new personnel, deferring the functions of these positions to existing employees.

Between CA’s five Divisions (Administrative Services, Sports and Fitness, Communications and Marketing, Open Space Management and Community Services) the staff has agreed to proactively cut over $400,000 in personnel-related expenses. The budget does not increase either the Annual Charge or “Cap” rate to Columbia residents. Programs, services and membership rates are increasing 2.5 to 3 percent so that users of those services can bear the inflationary costs of doing business. Residents who do not use the services will not have to bear those inflationary cost
increases.

CA offers many programs that meet the diverse needs of individuals and groups in the community. Needbased Columbia residents have a variety of programs available to them to obtain access to CA facilities and programs. These programs include the Income Qualified Program, the Ann Scherr Fund, the Earn-A-Membership Program, the CA Points Program, Operation Homefront Heroes and Emergency Assistance.

Despite significant cutbacks, the total FY 2010 increase in net assets is $3.2 million.