2007 Annual Report
Nanaimo Airport Commission
Message From the Board Chair
As part of building a solid foundation, we were pleased to have our runway re-classifi ed by
Transport Canada in preparation for upcoming airport improvements. In addition, our team
completed the preliminary designs, including; the expansion of the runway and taxiway, high
intensity lights and an instrument approach.
On behalf of the Board, I would like to extend thanks and appreciation to a large supportive
team without who’s help the success’s during 2007 would not have been possible.
The Board is looking forward to completing the detail designs for the project and breaking
ground in 2008. This project will allow the airport to provide a broader range of air service in
a reliable fashion. We are committed to developing detailed plans that are environmentally
sound, supporting a long term sustainable management strategy.
The Nanaimo Airport Commission intends to create a facility capable of offering reliable service to Western Canada
and the Pacifi c Northwest. This airport will continue to be a strong economic engine for the region, as it becomes a
Regional, Transborder facility capable of charter fl ights to sun destinations.
Jerry Pink
Chair
Nanaimo Airport Commission
President, CEO Report
The Nanaimo Airport Team has continued to make safety the leading priority
through 2007. Safety was further enhanced with installation of traffi c lights at the
highway intersection.
The NAC completed over 100 presentations within local communities, including
several Open Houses and Town Hall meetings to hear from the public regarding the
Airport Improvement Project. At meetings in November 2007 and January 2008,
there was an open format that allowed members of the public to bring forward
questions. These meetings were held in cooperation with the regional districts and
were moderated by the Chair of the respective regional district.
A study conducted during the fall 2007 by the Mustel Market Research Group found “resounding support for
the proposed expansion plans” in both the CVRD and RDN, with a total of 87% in favour and 5% undecided.
We are very proud of our environmental projects, including the fi sh enhancement work completed within
Haslam Creek. Our team will continue these efforts with the development of a long term sustainable
management program.
We are looking forward to the challenges and opportunities offered by the Airport Improvement Project and
anticipate the successful completion of this work within the next several years.
Michael K. Hooper
President, CEO
Mission
To provide a safe, effi cient and fi nancially viable airport that offers excellent value and service to
all users and in partnership with others, contributes signifi cantly to the economic well being of
the community.
Vision
The Nanaimo Airport will maximize its potential to be a dynamic, customer focused, air services
gateway to western North America.
The Nanaimo Airport management team extends our appreciation to the outstanding support
we have received from the mid-island community. During the past 12 months we have received
motions of support for the Airport Improvement Project, from the Regional District of Nanaimo,
Cowichan Valley Regional District, City of Nanaimo, City of Parksville, Town of Qualicum,
City of Port Alberni, Town of Ladysmith, City of Duncan, District of North Cowichan,
Town of Lake Cowichan.
2007 Annual Report • www.nanaimoairport.com 1
Nanaimo Airport Commission Overview
THE NANAIMO AIRPORT COMMISSION WAS INCORPORATED in August, 1990, as a not-for-
profi t authority. In 1992, the Commission assumed management and operation of the Airport
from Transport Canada. In 1996, the Commission was granted fee-simple title to the Airport lands
by way of the National Airports Policy transfer initiative.
The Commission is comprised of eight Directors of which 3 are appointed by the Commission,
from the community at large. The following fi ve entities nominate one member each:
THE CITY OF NANAIMO;
THE REGIONAL DISTRICT OF NANAIMO;
THE COWICHAN VALLEY REGIONAL DISTRICT;
THE TOWN OF LADYSMITH; AND
THE GREATER NANAIMO CHAMBER OF COMMERCE
2007 Annual Report • www.nanaimoairport.com 3
Board of Directors
VICE-CHAIR
Russ Burke
DIRECTOR
Mike McDonald
DIRECTOR
Ken Bosma
DIRECTOR
Ted Brown
DIRECTOR
Guy Bezeau
DIRECTOR
Dixon Kenny
BOARD CHAIR
Jerry Pink
DIRECTOR
John Howarth
Staff
AIRPORT SAFETY AND
SECURITY OFFICER
Doug Fern
SECURITY OFFICER
David Atkinson
MANAGER
OPERATIONS AND
MAINTENANCE
Reg Brady
AIRPORT
ADMINISTRATOR
Lynn Behnke
PRESIDENT, CEO
Mike Hooper
ACCOUNTING
CONTRACTOR
Deb Cross
ADMINISTRATION
CONTRACTOR
Suzanne Deveau
Operational – 2007 Project Overview:
Initiated a Fire Training Program with the Nanaimo Fire Department.
Completed tree removal and recertifi ed the runway for 5,000 feet.
Completed in-stream project – Haslam Creek fi sh enhancement.
Upgraded domestic water system.
Completed “Re-certifi cation” requirements to allow for more reliable instrument
approaches and submitted GPS WAAS fl ight procedures to Nav Canada for approval.
Completed traffi c light installation at the highway intersection.
Completed Purchase of a new equipment, including; Dump Truck for snow removal
and security pick-up.
Completed the data base for a GIS mapping system.
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2007 Annual Report • www.nanaimoairport.com 5
Administration – 2007 Project Overview:
Updated the Emergency Response Plan.
Initiated a Safety Management System.
Implemented a new accounting system.
Launched a new Website for the Nanaimo Airport.
Implemented a new computer system, including a comprehensive back-up process on a
central server.
Completed a 20 year Business Plan with Jacobs Consulting, including Market Forecast and
Infrastructure Requirements.
Developed a comprehensive project plan allowing for completion of a 1,600’ runway
extension with taxiway by the fall of 2009.
Completed numerous presentations and public venues regarding airport improvements.
Initiated Federal, Provincial and local funding requests for airport improvements.
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I would like to extend my personal appreciation and gratitude to the Nanaimo Airport Team for the
tremendous effort and success’s we experienced in 2007. I look forward to working through the
challenges in 2008 with a very experienced team.
Michael Hooper
President, CEO
Management Responsibility for Financial Statements
The accompanying fi nancial statements have been prepared by management in accordance with Canadian
Generally Accepted Accounting Principles.
The Commission’s accounting procedures and related systems of internal control are designed to provide
reasonable assurance that its assets are safeguarded and its fi nancial records are reliable. These statements
include some amounts based on Management’s best estimates and judgments. Management is satisfi ed the
fi nancial statements have been prepared within reasonable limits of materiality.
The Board of Directors appoints a Governance and Audit Committee consisting of four Directors. This
Committee meets periodically with Management and auditors to review signifi cant accounting, internal control
and audit matters. The Committee also reviews and approves annual fi nancial statements and the independent
auditor’s report before it is submitted to the Board of Directors for fi nal approval.
Audited fi nancial statements contained within this report are consistent with information presented in the full set
of fi nancial statements, available at the Airport Offi ce.
Michael K. Hooper BGS, MBA
President, CEO
Nanaimo Airport
Nanaimo, BC
February 16, 2008
2007 Annual Report • www.nanaimoairport.com 7
Nanaimo Airport Commission
Statement of Financial Position
As at December 31, 2007
2007 2006
ASSETS
CURRENT
Current investments - Note 4
$ 453,297 $ 238,433
Cash
283,581 355,283
Deferred leasing costs and prepaid expenses
121,400 111,636
Accounts receivable
153,719 142,525
1,011,997 847,877
INVESTMENTS - Note 4 232,132 398,474
PROPERTY AND EQUIPMENT - Note 3
11,004,045 11,077,353
$12,248,174 $12,323,704
LIABILITIES
CURRENT
Demand loan - Note 5
$ 675,000 $ 676,442
Accounts payable and accrued liabilities
178,574 88,466
Deferred lease revenue
21,284 23,746
874,858 788,654
DEFERRED CONTRIBUTIONS RELATED TO
PROPERTY AND EQUIPMENT - Note 6
4,459,853 4,668,437
SECURITY DEPOSITS
18,946 18,946
5,353,657 5,476,037
NET ASSETS
NET ASSETS
6,849,517 6,847,667
$12,248,174 $12,323,704
(See accompanying Notes to the Financial Statements)
2007 Annual Report • www.nanaimoairport.com 9
Nanaimo Airport Commission
Statement of Revenue and Expenses and Net Assets
For the year ended December 31, 2007
Budget 2007
(unaudited)
2007 2006
REVENUE
Airline passenger fees
$ 810,000 $ 836,838 $ 826,218
Vehicle parking fees
228,550 267,931 253,736
Land lease and licence fees
248,589 245,269 272,551
Air terminal lease and licence fees
204,014 233,150 226,853
Airside facility licence and user fees
36,300 50,717 30,139
Interest and general
20,000 36,376 90,607
1,547,453 1,670,281 1,700,104
EXPENSES
Administration and management
549,395 660,033 505,970
Commercial development and marketing
98,300 158,158 45,131
Service buildings and airfi eld
160,000 157,431 122,129
Emergency, safety, and security
153,214 151,004 129,468
Property taxes
138,000 141,172 137,044
Air terminal building
132,000 114,122 128,609
Airport commission
59,000 75,665 45,942
Bad debts
3,000 4,341 39,020
1,292,909 1,461,926 1,153,313
REVENUE IN EXCESS OF EXPENSES
BEFORE OTHER ITEMS
254,544 208,355 546,791
OTHER REVENUE (EXPENSES)
Amortization of deferred contributions
related to property and equipment
- 417,805 398,672
Gain on sale of capital asset
- 836 -
Depreciation
- (628,667) (553,225)
- (210,026) (154,553)
REVENUE IN EXCESS OF EXPENSES $ 254,544 (1,671) 392,238
NET ASSETS, BEGINNING OF THE YEAR
6,847,667 6,455,429
CHANGE IN FAIR VALUE OF INVESTMENTS
CLASSIFIED AS AVAILABLE FOR SALE 48,521 -
NET ASSETS, END OF THE YEAR $ 6,894,517 $ 6,847,667
Nanaimo Airport Commission
Notes to the Financial Statements
For the year ended December 31, 2007
1. Operations
The Nanaimo Airport Commission operates the Nanaimo airport facility. On December 2, 1996, all airport
land, buildings, and improvements were transferred to the commission from the Ministry of Transport
for $10. Under the terms of the transfer agreement, the commission must continue to operate the airport
until December 2, 2046. If the commission ceases to operate or manage the airport, the Ministry of
Transport has the option to reacquire the facilities for $1. This option expires December 2, 2046.
Prior to the transfer, the commission operated the airport through a head lease from the Ministry of
Transport.
The commission fi les as a non-profi t organization under the Income Tax Act and is registered as a non-
profi t society under the Societies Act of British Columbia.
2. Signifi cant accounting policies
The fi nancial statements of the commission have been prepared in accordance with Canadian generally
accepted accounting principles for non-profi t organizations.
- Deferred leasing charges
Deferred leasing charges are amortized over the life of the lease.
- Property and equipment
Purchased property and equipment are recorded at cost at date of transfer and amortized. Contributed
property and equipment are recorded at fair market value (as per property assessments) at the date of
transfer and amortized.
Amortization is recorded on a straight-line basis over the estimated useful life of the property and
equipment as follows:
Buildings and improvements 25 years
Runway, airfi eld, and parking lot improvements 20 years
Fence 10 years
Furniture, equipment, and computer hardware 5 years
Vehicles 5 years
Computer software 5 years
Bridge 5 years
- Revenue recognition
The commission follows the deferral method of accounting for operating grants. Operating grants are
recognized as revenue in the year in which the related expenses are incurred.
Revenue from leases is deferred and recognized into revenue over the life of the lease.
- Use of estimates
The preparation of the fi nancial statements of the Nanaimo Airport Commission in accordance with
Canadian generally accepted accounting principles requires management to make estimates and
assumptions, mainly considering values, which affect reported amounts of assets, liabilities, revenue and
expenses, and related disclosures. Amounts are based on best estimates, but actual amounts may vary
from the amounts recorded.
2007 Annual Report • www.nanaimoairport.com 11
Nanaimo Airport Commission
Notes to the Financial Statements
For the year ended December 31, 2007
3. Property and equipment
Cost
Accumulated
Amortization
Net 2007 Net 2006
Land $ 3,622,242 $ - $ 3,622,242 $ 3,622,242
Buildings and improvements
4,071,017 1,516,475 2,554,542 2,716,915
Runway, airfi eld, and parking
lot improvements
6,800,475 2,351,556 4,448,919 4,244,983
Fence
188,819 138,575 50,244 67,172
Furniture, equipment, and
computer hardware
286,342 230,441 55,901 55,107
Vehicles
522,393 252,066 270,327 352,373
Computer software
13,230 11,360 1,870 6,042
Bridge - - - 12,519
$ 15,504,518 $ 4,500,473 $ 11,004,045 $ 11,077,353
Included in property and equipment is the acquisition of the airport facility by way of the transfer
agreement described in Note 1. The recorded amount of the transfer was $7,000,000 ($2,600,000 for
the land, $2,600,000 for buildings and improvements, and $1,800,000 for the runway, airfi eld, and
parking lot improvements).
4. Investments
The commission has invested in several term deposits and GIC’s, having interest rates ranging from
3.6% to 4.15% and maturing at various dates from May 2008 to May 2009.
2007 2006
Short-term investments
$ 453,297 $ 238,433
Long-term investments
232,132 398,474
$ 685,429 $ 636,907
5. Demand loan
During the year, the commission converted the Royal Bank of Canada demand loan into a mortgage on
the land that was purchased during 2006. The loan bears interest at prime plus 2% with monthly-interest
only payments and is due on demand. The loan is secured by a general security agreement and the land.
Nanaimo Airport Commission
Notes to the Financial Statements
For the year ended December 31, 2007
6. Deferred contributions related to property and equipment
Deferred contributions related to property and equipment represent contributed property and equipment
and capital grant contributions with which the airport buildings and various other property and
equipment were acquired. These contributions are amortized into revenue at the same rates as the
related property and equipment are amortized. The changes in the deferred contribution balance for the
year are as follows:
2007 2006
Balance, beginning of the year
$ 4,668,437 $ 5,067,109
Capital assistance received, or receivable
209,221 -
Amortized to revenue
(417,805) (398,672)
$ 4,459,853 $ 4,668,437
7. Restricted net assets
The board has restricted funds in order to provide for future capital programs in the amount of $307,000.
8. Commitments
The commission is committed under two lease agreements for offi ce equipment under operating lease,
and two contracts for winter maintenance and snow removal. Minimum payments for each of the next
three years, and in total, are as follows:
9. Financial instruments
Financial instruments are fi nancial assets or liabilities where, in general, the commission has the right to receive
cash or another fi nancial asset from another party or the commission has the obligation to pay another party cash
or other fi nancial assets. The commission’s fi nancial instruments consist of cash, investments, accounts receivable,
accounts payable and accrued liabilities, and demand loan.
- Financial risk
The fi nancial risk is the risk to the commission’s earnings that arises from fl uctuations in interest rates, foreign
exchange rates, and the degree of volatility of these rates. The commission does not use derivative instruments
to reduce its exposure to interest risk as management does not consider them to be material. There were no
signifi cant accounts receivable or accounts payable denominated in foreign currency at the year end. The US$ cash
balance was $30,359.94 CA$ at December 31, 2007. The commission does not use hedging to minimize their risk to
foreign exchange fl uctuations as they do not consider this risk to be signifi cant.
- Credit risk
The commission is exposed to credit risk from its tenants and licensees. The commission has a signifi cant number
of diverse tenants and licensees which reduces the concentration of credit risk; however, at the year end there was
only one major scheduled carrier, which increases the amount of credit risk as the carriers create the largest portion
of revenue.
- Fair market value
For cash, accounts receivable, accounts payable and accrued liabilities, and demand loan the carrying amounts
of these fi nancial instruments approximate their fair value due to their shortterm maturity or capacity of prompt
liquidation. Refer to Note 5 for information regarding demand loan.
2008 $ 10,646
2009 3,434
2010 1,926
$ 16,006
2007 Annual Report • www.nanaimoairport.com 13
Five Year Capital Plan
Proposed fi ve year plan
Note: Excludes the Airport Improvement Project
PROJECTS 2008 2009 2010 2011 2012
Perimeter fence clearing, gravel path
10,000 15,000
Runway sweeper
40,000
Safety Management System
10,000 8,000 8,000
Security camers
7,000 10,000 10,000
Smoking shelters
6,000
Long term parking lot
12,000 10,000
Fork lift
7,000
External properties
10,000 10,000 10,000
Haslam Creek improvement
25,000 10,000 10,000
Janitorial storage space
5,000
Direct Digital Control System (ATB)
4,000
Large capacity water fi lter system
10,000
Flight information display system (FIDS)
12,000
Airport utility vehicle
12,000
Upgrade auto gate controllers
15,000
Frontage fencing
16,400
Ramp hog loader attachment
25,000
Apron overlay
45,000
Passenger covered walkways
30,000
Apron concrete park stands
75,000
De-icing spreader
6,000
Terminal seating
30,000
Security enhancements RAIC
10,000
Replace DME - contingency
130,000
Extension to Mustang Road & misc
75,000 75,000
CAR 303 Fire Truck
150,000
General projects & purchases
20,000 20,000 20,000 20,000 20,000
TOTAL CAPITAL PLAN 190,000 184,400 209,000 225,000 245,000
2007 2008 2009 2010 2011 2012
Acquire
Funding
Due Diligence
Steps
High Intensity
Lights
Instrument
Approach
Runway / Taxiway
Extension
Parking Lot
Septic and
Water System
Terminal Building
Fulltime
Fire Dept
YCD Improvement Projects
In response to the demonstrated market need, NAC proposes to improve its reliability in all
weather conditions.
Phase 1 (2007 to 2009) includes: (a) extending the runway 1,600 feet, (b) taxiway/apron improvements,
(c) high intensity runway lighting, instrumental system approaches; and (d) fl ight path protection and
studies. The Phase 1 cost estimate is $16.4 million, with the start date for preliminary design of
April 15, 2007 and a completion date of November 30, 2009.
Phase 2 (2010 to 2012) includes: (a) terminal building expansion, (b) road & parking expansion,
(c) relocation of combined services building, (d) installation of water & sewer treatment facilities; and
(e) Emergency Response Service vehicle enhancements. The Phase 2 cost estimate is $7.7 million with
a target start date for design of October 1, 2010 and a completion date of November 30, 2012.
Phase 3 (2018) includes: (a) road & parking expansion. Phase 3 cost estimate is $0.5 million, with the start
date of January 1, 2018 and a completion date August 30, 2018.
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PROPOSED TAXIW
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2007 Annual Report • www.nanaimoairport.com 15
Airport Improvement Project
YCD – The Future
The Nanaimo Airport is a strong and vibrant airport. The economic impact of this facility is felt
throughout Central Vancouver Island. Continued growth of our service area strongly indicates the need
for expansion. Now that a solid foundation has been laid, the Nanaimo Airport Commission is in an
excellent position to grow and meet the increasing needs of the area.
The strength of the foundation will allow for the development of a fi rst class facility while contributing to
the economic growth of the region. By the year 2026, Nanaimo Airport is forecast to greatly increase its
role as a major economic driver for the City of Nanaimo and surrounding communities.
Central Vancouver Island is experiencing substantial growth. The Vancouver Island Conference
Center opens in spring 2008, which will greatly improve Nanaimo’s destination status. Growth in
tourism-oriented projects is underway throughout the region and will add to the increased demand for
air service. The Nanaimo airport is well positioned to meet these increasing demands and has a solid
foundation to build on.
Three years of hard work from the Directors, management, staff and contractors of the Nanaimo Airport
Commission has laid a solid foundation that will allow the Nanaimo airport to grow to its full potential.
The core of these efforts is around four key goals:
Provide the Central Island region with the best possible air service.
Plan, develop and maintain the airport infrastructure to high standards of effi ciency, operations,
safety, security and convenience.
Aggressively pursue business and property development opportunities.
Establish and maintain the highest standards of management
practices consistent with the operations of a fi rst class airport.
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2007 Annual Report • www.nanaimoairport.com 17
Fact Sheet
The Nanaimo Airport property is located 15 minutes south of Nanaimo and is situated on approximately
500 acres, including the Cottonwood Golf Course.
On Site Facilities
Runway, 5000’ x 200’
Medium-intensity edge lighting
Approach lighting system (ODALS)
Runway 16 is currently a non-instrument runway with published RNAV, NDB/DME
and NDB approaches
Runway 34 is a non-instrument approach
Apron, 554’ x 352’
Edge lighting, fl ood lights and three ground power unit plug-ins
Fuel truck, Jet A-1
Terminal Building, 1,230 m2
Airline offi ces
Café
Security screening by Garda
Passenger pre-board screening and hold room
Vehicle rentals
Canada Customs inspection
24 hour security on-site
As identifi ed in a recent economic report, the Nanaimo
Airport currently contributes 584 full time jobs and
$41 million to the regional economy, based on direct,
indirect and induced effects. During the next 20 years
it is projected that these numbers will grow to 1,617 full
time jobs and over $120 million per year will originate
from the Nanaimo Airport.
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3350 Spitfi re Road
Cassidy, BC V0R 1H0
Tel: (250) 245-2157
Fax: (250) 245-4308
www.nanaimoairport.com
