Ar 2005

Annual Report 2005 Table of Contents page 1 page 2 page 4 page 4 page 5

Profile Chair’s Message Board of Governors Management Team Strategic Highlights page 5 Aquatics, Athletics and Wellness page 6 Swim Educators of Lindsay Park page 7 Operations page 8 Finance and Administration page 9 Facility Bookings page 9 Information Systems page 10 Sales and Marketing page 10 Character Development page 13 Volunteer Program

page 12 page 12 page 12 page 13 page 14 page 15 page 19

Daily Admission Rates Membership Rates Estimated Attendance 2005 Bursary Award Winners Auditors’ Report Financial Statements Notes to Financial Statements

Inside Back Cover: Talisman Centre Sport Partners Outside Back Cover: Lifetime Members

2225 MacLeod Trail South, Calgary, Alberta T2G 5B6 233-8393 www.talismancentre.com

Talisman Centre Profile The general impression of Talisman Centre is one of attentive management with a high regard for safety considerations. The greatest resource of this facility is its people. Talisman Centre represents all of these goals and more. Calgary is one of the most active, vibrant cities in Canada and Talisman Centre is the hub of that energy. First opened in 1983, Talisman Centre has become the second most widely visited multisport facility in North America through innovative programming and leading-edge technology. The newly renovated and expanded facilities include five gymnasiums, two tracks, more than 20,000 square feet dedicated to cardio and weight training and four pools including two 50m pools, dive tank, teaching pool, two hot tubs and a steam room. The Lindsay Park Sports Society expertly manages Talisman Centre on behalf of the people of Calgary. A non-profit society, the LPSS Board of Govenors has 20 volunteer members — 12 representing sporting communities, three representing neighbouring communities, two representing public and Catholic school Boards, a Chair, the past Chair and a representative from the Past Presidents’ Advisory Committee. An enthusiastic team of experts conducts Talisman Centre’s daily operations — 41 full-time and 212 part-time employees. Mission Talisman Centre is a dynamic organization dedicated to providing people of different ages and abilities inspiring, developmental sport and wellness experiences, assisting them to achieve their goals. Dual Mandate To provide training and competition facilities and services for the development of Calgary’s high performance athletes in their respective dryland and aquatic sports. To provide facilities, programs and services for the wellness and recreational sporting needs of the citizens of Calgary. Talisman Centre Annual Report 2005 

Chair’s Message

2005 was a

tremendous year for Talisman Centre. The expansion we completed in 2004 has affirmed our position as a world-class facility and the quality programming we offer positions us as the leader in the field of sport and wellness.

W

ith the expansion behind us we were able to get “back to business” in 2005. We focused our efforts on providing customers with an exceptional experience in supporting the achievement of their sport and wellness goals and our solid financial performance over the year was a strong indicator of the confidence Talisman Centre customers have in our ability to deliver results. It was a busy year. We hosted many events at the provincial, national and international levels. We enhanced our group drop-in fitness programs, for example the blockbuster “Ripped” class, and dedicated significantly more resources to a robust demand for personal training. The Endurance Training System (ETS) developed for Talisman Centre skyrocketed in reputation and results. On the aquatics side we implemented fun and exciting initiatives such as “Pumped Up Sundays” showcasing Calgary’s largest floating water park. The financial strength of the Centre remained a high priority for us. Revenues were consistently strong and costs were well controlled throughout the year. We introduced “smart” revenue initiatives such as preauthorized payment plans for four-month and annual memberships and we made efforts to reduce costs through enhanced energy efficiency applications. Our focus on community investment initiatives continued. Among many other efforts, we worked to provide better access to programs and services for children at risk and their families and seniors with the assistance of the Norlien Foundation. We were an active member in the Canadian JumpStart Program, sponsored by Canadian Tire and committed to providing children with the opportunity to participate in sport and recreation.

 Talisman Centre Annual Report 2005

However, 2005 was not without its challenges. Summer floods shut down the facility for a brief period as high waters threatened Talisman Centre and Stanley Park Pool. Stanley Park Pool suffered a net loss due to the rainy summer weather as flood conditions held up approvals to fill the pool and open on time. After 12 years at the helm, we also lost our Chief Operating Officer, Bernie Asbell, to the West Coast. On behalf of the Board, I would like to acknowledge Bernie’s significant contributions to positioning the Centre as a leader and innovator in the sport and wellness industry. Following an extensive executive search by the Board, we were successful in replacing him with Robin Mitchell, who brings a strong background in customer service and a passion for nurturing excellence in people. As I look forward to 2006, I am excited by the opportunities which are before us. As an organization, we will continue to create an inspiring atmosphere in which our customers may pursue their sport and wellness goals. It has been a privilege to have served as Chair of the Board of Governors in 2005 and I wish to extend my many thanks to our strong team of management and staff as well as my fellow Board members for all their efforts in making Talisman Centre the facility of choice for Calgarians and Canada’s developing athletes.

David Macaulay Board of Governors Chair

Talisman Centre Annual Report 2005 

Board of Governors Doug Bird* Chair of Executive Committee Rob Davis* Competitive Swimming (Secretary) Roy Diehl Competitive Swimming Barbara Dunnette Fencing Simone Gratton Catholic Schools Peter Hiebert Synchronized Swimming Dwight Jack* Rhythmic Gymnastics (Treasurer) Martin Kennedy Soccer Neil Kuntz Water Polo David Macaulay* Chair of the Board of Govenors Brett Maruyama* Erlton Community (Member at Large) Peter McKenzie Past President Advisory Committee Alec Milne Basketball Ed Moore Athletics Joe Recsky Volleyball Gregory Rogers Rideau-Roxboro Community Peter Saunderson Cliff Bungalow-Mission Community Murray Schmidt Diving Jill Tynan Public Schools Verla Wong* Field Hockey (Vice Chair) * denotes Executive Committee Member

2005 Management Team Bernie Asbell Robin Mitchell Catherine Nielsen Reg Verley Garth Glover Carol Kinley Cynthia Watson Ashley Myers Darrell Moir

President/COO ( January 2005 – July 2005) President/COO ( July 2005 - Present) Senior Manager ( January 2005 – April 2005) Sales & Marketing Manager Finance Manager Facility Manager Character Development Manager Sport & Wellness Manager (February 2005 - Present) Sport & Wellness Manager ( January 2005)

The following designation changes were made in 2005 to more accurately reflect the role and responsibility of member representatives and staff: Board Changes (roll out from 2005 to 2009): • Board of Directors was changed to Board of Governors • Vice President was changed to Vice Chair • President was changed to Chair of the Board • Immediate Past President/Chair of the Executive Committee was changed to Chair of the Board of Governors Staff Change: General Manager was changed to President/Chief Operating Officer

 Talisman Centre Annual Report 2005

Strategic Highlights Strategic Direction ONE Providing stakeholders with an exceptional experience that supports them so they may enjoy and achieve their sport and wellness goals. Strategic Direction TWO Creating and maintaining financial strength that ensures current and long-term sustainability and reinvestment opportunities that best serve our stakeholders. Strategic Direction THREE Reinventing Talisman Centre culture/character as an excellent workplace that promotes a culture of participation, nurtures talent and recognizes individual and team performance in pursuit of serving our stakeholders.

Aquatics, Athletics and Wellness The Experience Providers Team philosophy employs a multidisciplinary, results-based approach to integrating physical activity, healthy eating habits and positive experience to advance the benefits of sport and wellness and promote healthy living for all ages and abilities. This wellness philosophy drives our programs, facilities and services.

The Talisman Centre Wellness Model . . .

. . . a model that provides exceptional experience for all customers using aquatic, athletic and wellness programs and services. Talisman Centre experience providers implemented the wellness model in early 2005 as a platform to ensure a good balance of opportunities over all five pillars of wellness — social, emotional, physical, spiritual and intellectual. The model incorporates the “Transtheoretical Stages of Change” philosophy that allows providers to work with continually changing and evolving customers.

The Buzz in the Zone . . .

The team strives to establish a dynamic culture in the Athletic Training Zone (ATZ) where athletes training in various endurance sports can come together to support, encourage and challenge each other. Programming is for both high-performance athletes and recreational, performance-minded athletes of all abilities. The ATZ has developed programs specific to two dynamic aspects of sport training: Endurance Training System (ETS) geared toward athletes looking to acheive gains in sports such as triathlon, distance running, adventure racing and all cycling diciplines including downhill mountain biking and BMX. Athletic Performance Enhancement (APE) for athletes involved in team and power sports such as hockey, soccer, basketball, badminton, baseball and football. Talisman Centre Annual Report 2005 

Our Camps are all the Rage!

2005 saw an overwhelming positive response to registration in our Multisport and Performance Based Camps for children and youth. Children were given the opportunity to get involved in a multitude of sport and wellness activities including nutrition sessions in the Sears Nutrition Kitchen.

Our Drop-in Fitness Programs . . .

Group fitness activities continued to grow at Talisman Centre in 2005. New dropin fitness classes were added to an already impressive group exercise schedule to accomodate the 26% increase in participation, including more of the popular “Ripped” classes.

Lovin’ the Liquid . . .

The Aquatics team oversees the specific aquatic needs of our sport partners and those of special events, as well as conducting lifeguarding and swimming lessons. They sharpened their focus on quality customer experience in 2005 by launching the Aquatic Specialist Model. This resulted in increased program registrations and participation by members and drop-in users alike. They also implemented the Teacher Mentorship Program to improve the quality of lessons being delivered.

Swim Educators of Lindsay Park 2005 was another great success for the Sears I Can Swim Program with participation increasing approximately 38% over 2004.  The following key events helped to make this happen: • re-vamped the look of our website • launched into the Quebec market with great success • developed a Teacher Mentorship Program to position within the marketplace • launched a brand new Affiliation Fee Structure • brought on board an Atlantic Regional Representative to continue building the program on the East Coast   • created valuable revenue opportunities by becoming the North American distributor for A-Flex Technology Floatables • sent the Floatable Toy Fleet across Canada to promote the “participation-funsuccess” philosophy of SEARS I Can Swim • continued receiving support from Sears Canada, Swimming / Natation Canada, and the Canadian Swim Coaches & Teachers Association   The Sears I Can Swim Program continues to gain popularity throughout Canada and is now being seen as a leader within the aquatic industry, specifically for advancement in program content, marketing and teacher certification.  

 Talisman Centre Annual Report 2005

Operations The Operations Department is responsible for the planning, development and coordination of all building operations at Talisman Centre. The Sears Nutrition Kitchen is a practical vehicle for delivering nutrition education both as a stand-alone product and as an integrated component of Talisman Centre programs, demonstrating that healthy eating and active living go hand-in-hand. It delivers a clear message that Talisman Centre values and promotes healthy lifestyles. In 2005, we saw the official launch of both the Sears Nutrition Kitchen and Café Santé. Over the year, the Nutrition Kitchen hosted the Junior Chefs Program, Healthy Choice Cooking Seminars and Classes, Thrills and Skills Workshops and Corporate Teambuilding Events. In January, Talisman Centre hosted its first major corporate Family Day event for Sears Canada. The event saw more than 500 Sears family members offered a variety of dry land and aquatic activities including badminton, basketball, volleyball and inflatable toys. They were also provided with a full barbeque lunch in the Foundation Lounge. Talisman Centre staff and volunteers provided all of the extras including membership sales, facility tours, coat-check service and cooking lessons. Investments in new technology in 2005 included installation of plasma television screens in the Executive Locker Rooms, the Nutrition Kitchen and the Legacy Lounge and the installation of two point of sale workstations at Café Santé. The Operations Department also worked closely with Calgary Police, Parks and Recreation, neighbouring communities and the Aldermen’s office on improving the safety of the regional pathway system to and from Talisman Centre, including improvements to lighting. Other key projects the Operations Department completed in 2005 included: • a new shower system in both public locker rooms • roof hatch replacement • new boiler chimney stack cap installed • new hand dryers in the ladies’ public locker room (they are three times faster and use 80% less energy) • landscaping and irrigation in the park • major parking lot patch, repair and reline • a Balance and Stability Zone added in the Fitness Centre — equipment supplied in part by Fitter International • planning for the main building roof replacement began • renovations to Café Santé completed

Talisman Centre Annual Report 2005 

Finance and Administration Finance and Administration supports all function areas of Talisman Centre by providing financial and business analysis and responding to a wide variety of requests for accounting and financial information. The Finance and Administration Department evolved in 2005 to better serve Talisman Centre’s financial and administrative needs. Garth Glover became Finance Manager, Judy Campbell continued as Payroll and Benefits Administrator, Cory Lanoway became Accounts Receivable Administrator and Ron Pitt took charge of Accounts Payable. After reviewing proposals and conducting interviews of various accounting firms, PricewaterhouseCoopers was selected to perform the annual year end audit of the Society. Thanks to our former audit firm, Kissinger & Co., for their many years of service with the Society. The staff benefit plan premiums were reduced in 2005. This is uncommon in the insurance industry and highlights the healthy balance Talisman Centre staff have achieved between work and play. The Society Performance Award (SPA) was replaced with the Society Team Appreciation Reward (STAR) to reflect team achievement. The reward is distributed to Centre staff for achieving financial goals while maintaining a high level of customer service. After 14 years with Lindsay Park/Talisman Centre, Catherine Nielsen, Senior Manager, opted for an early retirement to spend more time with her family and to indulge her passion for skiing and cycling.

2005 Facility Revenue Admissions, Memberships and Programs (66%) Facility Bookings (18%) Food Services (8%) City of Calgary (9%)

2005 Facility Expenses Facility Operations (36%) Experience Providers (31%) Character Development & Administration (18%) Sales & Marketing (7%) Food Services (7%)

 Talisman Centre Annual Report 2005

Facility Bookings Facility Bookings oversees all fieldhouse operations, facility rentals and special events. Facility rentals include all programming and data entry for our member and nonmember sport partners, special events, Talisman Centre programs and the general public. Talisman Centre hosted three prestigious national level competitions in 2005: the Junior Indoor Field Hockey Nationals, the H20 Polo Nationals (Canadian National Semi Finals) and the Canadian Open National Championships in Synchronized Swimming. A number of summer special events also took place in 2005 including the SAIT Jr. Trojans Basketball Camp, the Swimming Age Group Provincials, Calgary Tritons Swim Meet and the Region E Summer Swim Meet. A total of 154 schools from Calgary and surrounding areas brought in 8006 students to use our facilities. Additionally, Talisman Centre provided the Physical Education Department of St. Mary’s High School with facility space weekdays for over ten different classes, bringing in over 8000 students. Talisman Centre hosted 44 special events bringing in over 60,000 participants, spectators and coaches. Thirty-one sport partner groups booked the facility on a regular basis and brought in over 600,000 people during the year. Talisman Centre was the host site for the Calgary Corporate Challenge badminton and swimming events in 2005. Representatives from over 200 companies took part in competitions over a one-week period. As a participant, Talisman Centre placed tenth out of 30 Red Division companies in the annual event.

Information Systems The key function of Information Systems is the installation, maintenance and security of all communication and information technologies within the facility. In 2005, a Storage Area Network was added to the computer network. Each year the need for more information storage space increases considerably. This addition allowed us to grow without purchasing new servers. Webmail was implemented in 2005 as well. Staff members with an email account are now able to log on and view their email remotely, enabling them to work at home or check email when they are traveling. A wireless site survey and purchase of equipment study was also conducted in a committed effort to bring staff and customers wireless internet access. Two Duty Managers were added to the department in 2005. These staff members increased the security and supervision in the building by covering all evening and weekend hours as well as all long weekends. Talisman Centre Annual Report 2005 

Sales and Marketing Talisman Centre’s motivated sales and marketing team is committed to ensuring the best in customer service through dynamic and innovative marketing initiatives. The Sales and Marketing team expanded the distribution area of the four key Programs and Services Brochures produced yearly which resulted in an increased run size from 30,000 to 42,000 copies of each. This strategy had direct measure in the significant increase in new members, program registrants and drop-in customers coming into the building in 2005. Select cross-functional pieces were also developed to complement these core marketing tools, designed specifically to promote targeted products and services within Talisman Centre and externally at trade shows and fund-raisers. Other sales and marketing initiatives executed in 2005 included the introduction of a special Two-Month Membership during the summer months, the development of a Customer Relations Volunteer Program where volunteer members provide customers with information about Talisman Centre and the institution of a Staff Referral Incentive Program which offered employees a 20% discount at Café Santé and the retail outlet and participation in registered classes free of charge. Customer service initiatives implemented in 2005 included the establishment of a Pre-Authorized Payment Plan for four-month and annual memberships, the creation of a Retail Coordinator Position to develop Talisman Centre’s retail strategy, the implementation of a Customer Retention Strategy through customer and member service calls and the introduction of Membership Appreciation Events where members have the opportunity to show off Talisman Centre to their friends.

Character Development The Character Development Team strives to build individual, team and organizational strength throughout Talisman Centre and into the community at large. There were a number of key character development initiatives that had facility-wide impact in 2005, one of the most important being the implementation of Talisman Centre’s Occupational Health and Safety Plan. With summer student help, the Wage and Compensation Survey, Employee Turnover Report and a draft of an Employee Perspective Survey were also completed. Training and development saw a new Energy U initiative, I Can Action Emergency Procedures and WHMIS, implemented in 2005, as well as the Aquatics Specialist Project and the Customer Service Desk Coaching Project. Improvements to staff uniforms resulted in much higher quality Sugoi clothing for both staff and volunteers.

10 Talisman Centre Annual Report 2005

Numerous staff events took place in 2005 to celebrate our team’s success, including the FRESH Event, Oktoberfest, Random Acts of Kindess Day, our Annual Gala, our Summer Wrap-Up, a Volunteer Recognition Event, Paint the Town Red, a Farewell Party for Bernie Asbell, a Pumpkin Carving Contest and the annual Deck the Doors Workspace Decorating Challenge. Community Investment Talisamn Centre and the Calgary Health Region continued their partnership to work on the Living Well with a Chronic Disease Program. This program has gained such popularity that additional sessions needed to be added in the evenings. Talisman Centre and the Kerby Centre continued their partnership to develop and provide resistance and strength training programs to seniors. The project allowed Kerby Centre members to access our weight room and therapeutic hot tub and pool. Fee Assistance This initiative garnered over 2300 visits to Talisman Centre in 2005 and subsidzed approximately $55,000 in admissions and adapted physical activity program registrations. Canadian Tire JumpStart Talisman Centre was an active participant in Canadian Tire JumpStart in 2005. There is a growing need to make physical activity a priority in the lives of Canadian children. Talisman Centre and the Canadian Tire Foundation for Families are committed to addressing that need by providing kids the opportunity to participate in sport and recreation in order to better develop essential life skills, self-esteem and confidence. Norlien Grant 2004-2005 Talisman Centre received $50,000 from the Norlien Foundation to enhance access to programs and services for children at risk, their families and seniors. The grant money was put toward facility passes, facility rentals, swim lessons, special events and program registrations. Other community investments in 2005 included commitments to the Boys and Girls Club, the Calgary Women’s Emergency Shelter, the HEAR Society, Cops for Kids and CUPS One World Development Centre. Over $10,000 was also donated to sport and wellness organizations throughout 2005 for fund-raising purposes. Talisamn Centre was also a proud sponsor of the Terrascape Racing Team, one of the top cycling teams in Alberta, three members of which are employees of Talisman Centre.

Talisman Centre Annual Report 2005 11

Daily Admission Rates Infants under two are free. All rates include 7% GST Late rate for the last 75 minutes of each night: $3.00 Single 10-Card Flex Pass



Adult (18+) $ 9.25 $ 75.00 Senior (60+) $ 7.00 $ 54.00 Post-Secondary Student (25 & under) $ 7.50 $ 60.00 Youth (13-17) $ 7.00 $ 54.00 Child (6-12) $ 4.50 $ 35.00 Preschool (2-5) $ 3.25 $ 25.00 Couple/Family/Group Home $ 20.00 $ 145.00 Parent & toddler (2-5) $ 10.50

Membership Rates

1 Month

4 Month

Annual

$ 75 $ 54 $ 60 $ 54 $ 145

$ 225 $ 145 $ 180 $ 145 $ 395

$ 519 $ 339 $ 429 $ 339 $ 859



Adult (18+) Senior (60+) Post-Secondary Student (25 & under) Youth (13-17) Couple/Family/Group Home

Estimated Attendance Memberships and Multi Admissions Public Admissions Registered and Custom Programs Sport Partners and Special Events Tenants and Other

500,000 100,000 6,400 660,000 63,500

12 Talisman Centre Annual Report 2005

Volunteer Program Talisman Centre’s volunteer program enjoyed a lot of growth in 2005. Our volunteer team saw the addition of 25 new members, bringing the total volunteer family up to nearly 80 members! In September, a new volunteer strategy was launched. The new focus of the volunteer program is to utilize volunteers to enhance the customer experience. Along with this, our goal is also to make sure volunteering is meaningful and fun for the volunteer as well! Because of this new customer enhancement focus, a new program was launched in November called the Customer Relations Volunteer Program. The helpful and smiley members of this team are often found near the south entrance at peak times, greeting customers, answering questions, serving as a general information source and conducting facility tours. In the first two months of the program, over 200 customers were helped by the Customer Relations volunteers. We are looking forward to continued success and expansion of this program! Our other volunteer programs continued to thrive in 2005. Our Childcare Volunteer team and Special Events Program also increased in numbers. This resulted in a quality experience for the children (more playmates!) and was evident in the smooth operation of some large events at Talisman Centre. Our partnership with a number of community agencies working with clients with disabilities was continued and these hard-working men and women have done a wonderful job on our volunteer team. Finally, our APA (Adapted Physical Abilities) Volunteer Program was nominated for Volunteer Calgary’s “Leader in Community” award. This affirmed the inspired effort these volunteers show while assisting our clients in their adapted programs.

2005 Bursary Award Winners Talisman Centre believes in the power of sport to enhance the health and wellness of Canadians. Our Bursary Program was developed to financially assist athletes with various training and competition expenses. Talisman Centre is very proud of all the following 2005 Bursary Award Winners (Recipients came from six different sport partners:Competitive Swimming, Diving, Gymnastics, Synchronized Swimming, Track and Water Polo). Jessalyn Almond Gabriella Brisson Jessie Drabinsky Brittney Hunt Olivia Jack Nigel Joseph Thomas Marks Kelsey Melenka Stephanie Melenka Teneshia Peart Jennifer Song Adam Szoo Kim Taylor Lauren Yates

Volunteers were recognized in our annual Volunteer Appreciation Event in April during National Volunteer Week. Talisman Centre Annual Report 2005 13

Auditors’ Report To the Members of Lindsay Park Sports Society We have audited the statement of financial position of Lindsay Park Sports Society as at December 31, 2005 and the statements of operations, changes in net assets and cash flows for the year then ended. These financial statements are the responsibility of the Society’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the Society as at December 31, 2005 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. The prior year’s numbers were reported on without qualification by the previous auditors.

Chartered Accountants Calgary, Alberta March 1, 2006

14 Talisman Centre Annual Report 2005

Statement of Financial Position at December 31, 2005 ASSETS

2005

2004

Current Assets Cash and cash equivalents $ 1,673,759 $ 1,188,782 Accounts receivable 319,668 450,794 Current portion of pledges receivable 134,583 570,680 Inventory 33,416 22,867 Prepaid expenses 3,323 17,173 2,164,749 2,250,296 Capital Assets (note 3)

987,754 1,093,242

Donations on Deposit with Calgary Parks Foundation (note 10) Tenant Improvements Pledges Receivable

211,426 59,228 –



$ 3,423,157

85,128 98,713 14,000

$ 3,541,379

LIABILITIES Current Liabilities Demand bank loan $ – $ 650,000 Accounts payable and accrued liabilities 728,661 1,180,807 Deferred sponsorship – Talisman Energy 500,000 – Deferred revenue and grants 1,056,305 936,421 2,284,966 2,767,228 Deposits from Tenants 29,906 29,640 Deferred Contributions (note 4) 918,767 968,767 3,233,639 3,765,635

Net assets (deficiency)

Net assets invested in capital assets 987,754 1,093,242 Net assets restricted for Stanley Park Pool operations (note 5) – 52,234 Net assets internally restricted for athletic bursaries (note 6) 249,316 249,316 Unrestricted net assets (deficiency) (1,047,552) (1,619,048) 189,518 (224,256) $ 3,423,157

Commitments (note 10)

$ 3,541,379

APPROVED BY THE BOARD OF GOVERNORS:

David Macaulay Governor



Dwight Jack Governor

Talisman Centre Annual Report 2005 15

Statement of Operations For the year ended December 31, 2005 Facility Revenues

2005

2004

Admissions, memberships and programs $ 5,207,086 $ 4,333,048 Facility bookings 1,423,209 1,222,433 Food services 612,842 543,660 Stanley Park Pool 89,029 82,852 Operating contribution from City of Calgary 694,000 680,000 8,026,166 6,861,993

Facility Expenses Facility operations (note 8) Experience providers Character development and administration Sales and marketing Food services Stanley Park Pool

2,857,427 2,407,432 1,445,735 564,830 595,982 89,029 7,960,435

2,749,258 2,227,260 1,395,145 565,383 434,746 79,127 7,450,919

Excess (deficiency) for the year before the following

65,731

(588,926)



Other Revenue Investment income (note 7) Naming rights and other sponsorships Other Expenses Amortization of capital assets

57,849 670,146 727,995

52,831 662,929 715,760

294,240 433,755

288,930 426,830

Excess (deficiency) for the year before the following

499,486

(162,096)

454,000 16,667 470,667

359,000 47,657 406,657

504,145 (33,478)

584,691 (178,034)

Capital Contributions Capital contribution from City of Calgary Capital contributions from other sources Capital Contributions Building improvements and capital expenditures Net excess (deficiency) for the year

16 Talisman Centre Annual Report 2005

$

466,008

$ (340,130)

Statement of Changes in Net Assets For the year ended December 31, 2005 Invested in Capital Assets

Externally Restricted for Stanley Park Pool (note 5)

Internally Unrestricted Restricted for Athletic Bursaries (note 6)

Balance, beginning of year

$ 52,234

$ 249,316

$ 1,093,242

Investment in capital assets

Total 2005

Total 2004

$(1,619,048) $ (224,256) $ 122,428 –

188,752

–

–

(188,752)

Net excess (deficiency) for the year (294,240)

–

–

760,248 466,008 (340,130)

Distribution of externally restricted net assets Balance, end of year

– (52,234) 987,754

–

– 249,316

–

– (52,234) (6,554) (1,047,552) 189,518 (224,256)

Talisman Centre Annual Report 2005 17

Statement of Cash Flows For the year ended December 31, 2005 Cash provided by (used in) Operating activities Net excess (deficiency) for the year $ Items not affecting cash Amortization of capital assets Amortization of deferred contribution Amortization of tenant improvements Net change in non-cash working capital items

2005

2004

466,008

$ (340,130)

294,240 (50,000) 39,485 749,733 302,165

288,930 (116,233) 39,486 (127,947) 107,739

1,051,898

(20,208)

Financing and investment activities Decrease in pledges receivable Additions to capital assets Decrease (increase) in donations on deposit with Calgary Parks Foundation Increase in deposits from tenants Increase (decrease) in demand bank loan Transfer of Stanley Park Pool net assets Increase in deferred contributions Increase (decrease) in cash and cash equivalents

450,097 64,400 (188,752) (307,269) (126,298) 93,549 266 15,075 (650,000) (1,000,000) (52,234) (6,554) – 1,000,000 (566,921) (140,799) 484,977

(161,007)

Cash and cash equivalents, beginning of year 1,188,782 1,349,789 Cash and cash equivalents, end of year 1,673,759

18 Talisman Centre Annual Report 2005

1,188,782

Notes to Financial Statements December 31, 2005 1. Nature and Purpose of the Society Lindsay Park Sports Society (the “Society”) is a not-for-profit, non-taxable organization incorporated under the Societies Act of the Province of Alberta. The purpose of the Society is to oversee and direct the management and operation of Talisman Centre (“the Centre”) in accordance with its by-laws and a management and operating agreement between the Society and the City of Calgary. As part of this agreement, the City provides the Society with annual operating and capital grants. These grants are for the original building only with the operating and capital requirements of the two expanded buildings being the sole responsibility of the Society. The City of Calgary is the owner of the Centre and the land upon which it is located. It provides training, competition facilities and services for the development of Calgary’s high performance athletes in dryland and aquatic sports in addition to providing facilities, programs and services for the fitness and recreational sporting needs of the citizens of Calgary. 2. Significant accounting policies Capital assets

Moveable capital assets which are purchased by the Society are recorded at cost and movable capital assets which are donated to the Society are recorded at their fair value at the date of contribution. They are amortized on a straight-line basis over their estimated useful lives, to a maximum of ten years. Immovable capital assets, which do not become the property of the Society, are expensed in the year of acquisition. Cash and cash equivalents

Cash and cash equivalents include cash and short-term investments that are highly liquid and readily convertible to known amounts of cash. Donated services

Volunteers contribute a significant number of hours to assist in the management and operation of the Society. Because of the difficulty of determining the fair value of the services contributed, the value of volunteer services is not recorded in these financial statements.

Talisman Centre Annual Report 2005 19

Financial instruments

The Society’s financial instruments included in the statement of financial position are comprised of cash and cash equivalents, accounts receivable, pledges receivable, donations on deposit with Parks Foundation, Calgary, demand bank loan and accounts payable and accrued liabilities. The fair values of the financial instruments approximate their carrying values at December 31, 2005 due to their short term nature. The Society is not exposed to undue interest rate, credit or foreign currency risk. Inventory

Inventory of food, beverages and clothing is recorded at the lower of cost and net realizable value. Cost is determined on an actual basis. Non-recording of City property

The original building complex and its major equipment components were provided from the City of Calgary’s capital fund and are the property of the City; therefore they are not recorded in these financial statements. All building additions, improvements and immovable capital assets become the property of the City of Calgary and are expensed in the year incurred. Revenue recognition

The Society follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which related expenses are incurred. Unrestricted contributions are recognized as received or receivable if the amount can be reasonably estimated and collection is reasonably assured. Admissions, memberships and programs fees as well as facility booking fees are recorded as revenue over the period that the services are rendered, with the prepaid portion recorded as deferred revenue. Sponsorships and grants are recognized as revenue in accordance with the terms of the sponsorship or grant agreement. Capital contributions used for building expansion and improvements and to acquire immovable capital assets which do not become the property of the Society are recorded as revenue in the same year as the expansion, improvement or acquisition is expensed. Investment income earned on funds used to finance the expansion construction was recorded as grants and donations for expansion of facilities. Investment income on other funds is recorded as investment income revenue when it is earned.

20 Talisman Centre Annual Report 2005

Use of estimates

The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results may differ from the estimates. Comparative figures

Certain prior year figures have been reclassified to conform with the current year’s presentation. Expenses

Experience Provider expenses includes the costs of programs and services conducted by the aquatics, athletics and wellness departments. Character Development and Administration expenses include the costs of the human resources, finance and administration departments. 3. Capital assets Cost

2005

Accumulated Amortization



2004 Net

Net

Athletic Equipment $ 1,670,677 Office Furniture and Equipment 502,407 Computer Equipment 328,811 Café Furniture and Equipment 88,910

$ 1,062,901 236,875 264,923 38,352

$ 607,776 265,532 63,888 50,558



$ 1,603,051

$ 987,754

$ 2,590,805



$ 724,821 271,734 60,561 36,126 $ 1,093,242

Included in office furniture and equipment is a nutrition kitchen valued at $50,000 which was received as a contribution from a sponsor. 4. Deferred contributions In 2004, the Society received an anonymous contribution of $1,000,000 in exchange for the right to name the fifty meter pool complex constructed in 2003 “The Calgary Foundation Aquaplex”. The naming rights are for a term of twenty years. The Society has recorded a portion of the contribution $50,000 (2004 – $31,233) as revenue for the year and deferred the balance of $918,767 which will be recognized as revenue on a pro-rata basis over the remaining term of the naming rights.

Talisman Centre Annual Report 2005 21

5. Externally restricted for Stanley Park Pool The Society has entered into an agreement with the Calgary Outdoor Swimming Pool Association (COSPA) to operate the Stanley Park Swimming Pool. Under the agreement, the Society receives an annual operating grant of $15,000 (2004 – $15,000) from COSPA and must operate the pool in accordance with a public use policy. Once the public policy has been satisfied, the Society may operate the pool for its own account. In accordance with the public use policy, an operating contribution of $10,000 is paid to COSPA. During the year under the terms of the agreement, the Society transferred the externally restricted funds related to Stanley Park in the amount of $52,234. 6. Internally restricted for Athletic bursaries The Lindsay Park Development Foundation (“Foundation”) was dissolved on January 1, 2003 and the assets, liabilities and net assets were transferred to the Society. The purpose of the Foundation was to act as a trustee to administer the funds from the Western Canada Summer Games Foundation, together with any other funds received, for the purpose of improving the quality of the services offered at Talisman Centre and assisting the development of athletes training at the Centre. The Society has agreed to continue the work of the Foundation and accordingly has restricted the net assets received from the Foundation for the purpose of providing bursaries and grants to athletes and Sport Partners training at the Talisman Centre. 7. Investment income Investment income earned during the year is comprised of the following:

2005

2004

Interest and other investment income accrued on funds on deposit $ 54,848 $ 57,935 Gain (loss) on disposal of capital equipment 3,001 (5,104) Net investment income

$ 57,849

$ 52,831

8. Facility Operations Included in Facility Operations expense are the following utility expenses:

2005

2004

Electricity Natural Gas

$ 672,183 $ 708,921 364,805 403,433

Total

$ 1,036,988

22 Talisman Centre Annual Report 2005

$ 1,112,354

9. Disclosure of a significantly influenced entity Lindsay Park Sports Society exercises significant influence over Swim Educators of Lindsay Park Inc. (“Swim Educators”) by virtue of its ability to appoint a majority of the board of directors and to manage the affairs of Swim Educators under the terms of a management contract. Swim Educators is a not-for-profit, corporation pursuant to the Canada Corporations Act. Its objects are to educate, promote and perpetuate the art, safety and enjoyment of amateur swimming through instruction, training and publication and distribution of teaching and coaching aids and achievement awards. The Society has advanced $138,500 to Swim Educators. The advance bears interest at prime plus 1% and is repayable at the unanimous discretion of the board of directors of Swim Educators. The Society also has an outstanding account of $217,442 (2004 – $267,650) in accounts receivable for operating advances made to Swim Educators. The ability of Swim Educators to repay the loan and the outstanding account is uncertain because it is dependent on Swim Educators continuing ability to obtain sponsorship fees and to eventually generate revenue in excess of expenses. Because of the uncertainty of collection, the Society has provided an allowance for doubtful collection of the entire loan and the outstanding account in a prior year. The Society has included the following operating transactions with Swim Educators in its Statement of Operations:

2005

Management contract fees earned $ Investment interest earned Swimming activity supplies purchased

85,000 $ 18,145 20,929

2004

85,000 18,678 13,231

10. Commitments Access Advantage Endowment Agreement

In 2004, an endowment fund named Access Advantage was established at the Parks Foundation Calgary. The income from the endowment allows the Society to provide subsidies and fee assistance to patrons of limited economic means in order to improve their access to the Talisman Centre. During the year, the endowment fund received from an anonymous donor a donation of $1,249,000. The Society has agreed to increase the endowment fund to $3,000,000 by way of contributing at least 15% of its annual excess of revenues over expenses before internal allocations to the Endowment Fund. The contribution from the Society for 2005 was $82,237 (2004 – $nil) and has been recorded as an accrued liability and Character Development and Administration expenses at year end.

Talisman Centre Annual Report 2005 23

Income related to this endowment amounted to $63,567 in 2005 and has been included in Donations on Deposit with Parks Foundation, Calgary and was recognized as Naming Rights and Other Sponsorship revenue. Administration fees of $11,608 related to the Endowment Fund were paid to the Parks Foundation, Calgary and were recorded as Character Development and Administration expenses. The following is a continuity of the Donations on Deposit with the Parks Foundation, Calgary:

2005

Balance, beginning of year $ Contributions Interest Administration charges Payment to Talisman Centre Endowment interest Administration charges on Endowment Balance, end of year

2004

85,128 $ 178,677 73,576 155,299 3,272 3,469 (2,509) (2,317) – (250,000) 63,567 – (11,608) –

$ 211,426

$ 85,128

Energy Contracts

a) Gas contract

As at December 31, 2005, the Society has an agreement with Enmax for the period of August 1, 2003 to July 31, 2006 to purchase a predetermined amount of gigajoules at a predetermined price. The amount of the commitment remaining under this contract is $318,000. Additionally the Society has a new contract effective for the period of August 1, 2006 to December 21, 2010. The amount of the commitment under this new contract for fiscal 2006 is $145,000 and $363,000 per annum thereafter, to the end of the contract term.

b) Electrical contract

The Society has an electrical agreement with Enmax for the period of July 1, 2001 to June 30, 2006 and July 1, 2006 to December 31, 2010 to purchase kilowatts at a predetermined price.

24 Talisman Centre Annual Report 2005

Our Sport Clubs

Proud to call Talisman Centre home! Diving Dive Calgary & Rocky Mountain Dive Club Swimming Cascade Swim Club University of Calgary Swim Club Calgary Patriots Swim Club Bow River Swim Club Killarney Swim Club Nose Creek Swim Association Calgary Winter Club Sea Lions Glencoe Gators Swim Club Calgary Masters Swim Club Synchronized Swimming Calgary Aquabelles Masters Synchronized Swimming Club Water Polo Calgary Renegades Calgary Torpedoes Water Polo Canada Alberta Water Polo Calgary Polo Splash Basketball Calgary Senior Men’s Basketball Calgary Women’s Basketball Volleyball Calgary Volleyball Club Calgary Recreation Women’s Volleyball Soccer Alberta Soccer Celtic Soccer Field Hockey Field Hockey Alberta Calgary Ladies Field Hockey Field Hockey Association of Calgary Track and Field Calgary Warriors Track Club Calgary International Track Club Fencing Epic Fencing Club Rythmique Gymnastics Chinook Rythmique Gymnastics Club