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PENINSULA AIRPORT COMMISSION
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2023
6
2023
2022
Assets:
Current assets
4,604,667
$
3,953,911
$
Restricted assets
12,665,597
13,030,904
Capital assets, net
71,150,493
77,044,898
Other noncurrent assets
1,214,594
1,730,465
Total Assets
89,635,351
95,760,178
Deferred outflows of resources
1,149,017
539,090
Liabilities:
Current liabilities
1,219,748
1,645,376
Long-term liabilities
8,125,051
9,532,943
Total Liabilities
9,344,799
11,178,319
Deferred inflows of resources
4,153,053
4,604,548
Net Position:
Net investment in capital assets
66,331,034
71,140,004
Restricted
18,565,098
16,618,850
Unrestricted
(7,609,616)
(7,242,452)
Total Net Position
77,286,516
$
80,516,402
$
The largest portion of the Commission’s net position each year (86% at June 30, 2023), represents its investment
in capital assets (e.g., land, buildings, improvements, equipment, and right-of-use assets – IT subscriptions),
less the related indebtedness outstanding used to acquire those capital assets. The Commission uses these
capital assets to provide services to its passengers and visitors to the Airport; consequently, these assets are not
available for future spending. Although the Commission’s investment in its capital assets is reported net of related
debt, it is noted that the resources required to repay this debt must be provided annually from operations, since it
is unlikely the capital assets themselves will be liquidated to pay liabilities.
An additional portion of the Commission’s net position (24% at June 30, 2023), represents federal and state
grant funds that are subject to external restrictions as well as the net pension asset. These restrictions stipulate
how funds can be used. Annual entitlement funds from the Commonwealth of Virginia can be used for 100% of
the nonfederal portion of projects that are funded under provisions of the Federal Airport Improvement Program
as well as other approved uses as stipulated in the Airport Program Manual. Passenger Facility Charge Funds
are reserved for Federal Aviation Administration and Airline approved projects.
Airport Rates and Charges
The Commission established an Airline Use and Lease Agreement (“Agreement”) effective November 1, 1992,
which in part establishes the rates and charges for the use of the Airport. Landing fees are $1.98 per 1,000 lbs.
of landed weight at June 30, 2023. Terminal rental rates are $34 per square foot at June 30, 2023. The
Commission also has the ability under the Agreement to adjust Airport rates and charges annually to ensure
adherence to all financial covenants in its bond resolutions. It establishes new rates and charges for the use of its
facilities and for services provided to its customers on an annual basis. Airline permits were negotiated with the
airlines in 2012 and are on a month-to-month schedule. New Airport rates and charges were approved for FY 2020
and went into effect on July 1, 2019.
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