International

notes to financial statements (cont’d.)
December 31, 2002
(tabular amounts in thousands of dollars)
The credit facilities consist of an operating line of credit to a maximum of $3.0
million bearing interest at prime rate less 70 basis points. A demand instalment loan
to finance construction costs is available to a maximum of $24.0 million and bears
interest at prime rate less 65 basis points. The Authority has begun to draw on these
credit facilities to finance certain capital expenditures.
6. Deferred Contributions Related to Capital Assets
Deferred contributions represent the unspent balance of contributions received from
Transport Canada to fund capital asset expenditures.
2002 2001
$ $
Opening balance — 1,830
Contributions received from Transport Canada — 6,000
Less: amounts applied to capital asset expenditures — (7,830)
— —
7. Airport Improvement Fees
On January 1, 2001, the Authority implemented an AIF of $10 per local boarded
passenger to fund the cost of a major capital program. These fees are collected by the
air carriers (for a fee of 8% of the amount collected) under an agreement between the
Authority, the Air Transport Association of Canada, and the air carriers serving Halifax
International Airport. Under the agreement, AIF revenues may only be used to pay for
the capital and related financing costs of airport infrastructure as jointly agreed with air
carriers operating at the airport.
A summary of the AIF collected and capital and related financing expenditures are as
follows:
2002 2001
$ $
AIF revenue (net):
AIF revenue, net of bad debts 9,459 9,108
AIF collection costs (764) (780)
8,695 8,328
Expenditures:
Centre core retail expansion 4,665 459
International and domestic arrivals expansion 3,088 10,553
Water supply upgrade 941 —
Passenger terminal building and airside infrastructure 861 —
Airside access lots 708 6,767
Other 685 —
Passenger loading bridge 674 —
Pyritic slate treatment facility 567 6,045
Replace approach lighting 34 918
12,223 24,742
Excess of expenditures over AIF revenue (3,528) (16,414)
Excess of expenditures over AIF revenue, beginning of year (16,414) —
Excess of expenditures over AIF revenue, end of year (19,942) (16,414)
Net assets of the Authority as at December 31 are as follows:
2002 2001
$ $
Net assets provided by airport improvement fees 17,023 8,328
Net assets provided by other operations 17,628 12,799
34,651 21,127
17
8. Commitments
Transfer agreement
Effective February 1, 2000, the Authority signed a 60-year ground lease with Transport
Canada (the “Landlord”) which provides for the Authority to lease the Halifax