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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024
15
Note 1—Organization and nature of business
The Peninsula Airport Commission (the “Commission”) is a municipal corporation created by the Virginia
General Assembly in February 1946. The Commission is directly responsible for operation of the Newport News
– Williamsburg International Airport (“Airport”) and is the owner of approximately 2,000 acres of property
surrounding the Airport. A Board of Commissioners consisting of six members, four appointed by the City of
Newport News, Virginia (“City”) and two by the City of Hampton, Virginia, exercises oversight responsibility.
Professional management conducts the day-to-day operations of the Commission.
The Commission is considered a component unit of the City in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”). The City appoints four of PAC’s six commission
members and has a financial benefit/burden relationship with the PAC as described below.
The PAC charter § 6.B. A. states that any deficit budgeted by the Commission in any fiscal year, i.e., any excess
of its estimated expenses over its estimated revenues, and the cost of any budgeted capital expenditures in
excess of the amount shown as available therefor, as shown on the Commission's operating and capital budgets
approved by the participating political subdivisions, shall be allocated among the participating political
subdivisions in proportion to their respective populations as most recently before such fiscal year determined
by the Center for Public Service of the University of Virginia. In the event the appropriation of any participating
political subdivision is insufficient to pay its portion of the deficit incurred in any fiscal year, the allocation of any
deficit for any succeeding fiscal year shall take into account the cumulative deficiency attributable to such
participating political subdivision; however, no participating political subdivision shall be required to pay the
Commission in any fiscal year any amount in excess of that appropriated to the Commission by the governing
body of such participating political subdivision.
The City is a participating political subdivision as defined in the charter. In accordance with the charter and in
recognition that the Newport News/Williamsburg International Airport is a valuable community asset, the City is
committed to supporting the Commission's operations and will take all necessary considerations into account
to ensure its continued function and success. This support may include, but is not limited to, financial
assistance, resource allocation, and collaborative planning activities. Discussions between the City and PAC
are ongoing and will continue to occur on a regular basis as the Airport seeks to stabilize its operations.
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