K I N G S W A Y B U S I N E S S A S S O C I A T I O N

2009 Annual report BUSINESS ASSOCIATION

Table of Contents

Page

Map of Kingsway Business Association Boundaries 4

Mission Statement, Goals & Legal Profile 5

Message from the Chair 6

2009 Board of Directors 7

Promoting Kingsway 8-9

Edmonton Kingsway Enhancement 10-13

2009 Issues / Advocacy / Promotions 14-15

2009 Events & Programs 16-20

Community Relations/Changes in Kingsway 21-22

Auditor’s Report 23

Statement of Revenues, Expenditures and Surplus 24

Balance Sheet 25

Statement of Cash Flow 26

Notes to the Financial Statement 27-29

Pag Edmonton Kingsway Page 5

KINGSWAY BUSINESS ASSOCIATION

Mission Statement Through its leadership in marketing and advocacy, Kingsway Business Association continually works towards making Edmonton Kingsway the preferred place to Shop-Stay-Fly-Play. Goals As a non-profit organization funded by its members, the goals of the Kingsway Business Association are to:  Continue enhancement projects for Edmonton Kingsway.  Support efforts to promote the long term viability of the Edmon- ton City Centre Airport as an airport.  Focus marketing in specific areas. Association Legal The Edmonton Kingsway Revitalization Zone (BRZ) was established by a City of Edmonton bylaw on November 10, 1987. The Association represents and serves those assessed for business tax lo- cated within the geographical boundaries stated below. The City’s official Kingsway Business Association is Bylaw #8621 (as amended).  Kingsway Avenue starting at 106 Street continuing Northwest and ending at the North and Southbound railway tracks, including those properties fronting both the South and North side of that portion of Kingsway Avenue  The North and Southbound railway tracks starting at Kingsway Avenue continuing North and ending at the , including those properties fronting the East side of this portion of the railway tracks  Yellowhead Trail starting at the North – Southbound railway tracks and continuing East ending at 107 Street including those properties fronting the South side of that portion of the Yellow- head Trail  107 Street starting at the Yellowhead Trail and continuing South to 120 Avenue where it branches into 106 Street, continuing South on 106 Street and ending at Kingsway Avenue, including those properties fronting the West side of those portions of 106 Street and 107 Street The members of the Board of Directors are appointed by City Council. Board members represent large and small businesses within the BRZ. The two City Councillors who represent Ward 2 are ex-officio members of the Board. Page 6

Message from the chair

Edmonton Kingsway is a vibrant area with a very colourful and unique blend; from malls to museums; from education to recreation; from roadways to railways to runways, Edmonton Kingsway has it all. Revitalization of this area is successful because there is such a strong, established business community here, willing to re-invest in the future. AMA completed construction of its new facility and the , which is very complimentary to the RCMP building across the street, makes a wonderful gateway to the Kingsway area. The old facility was demolished to make way for a parkade to accommodate the major expansion. Kingsway Garden Mall completed their upgrading this fall just in time for the Holiday Season. The Mall was rebranded to to reflect the new and modern look. Hotels on Kingsway provide a perfect destination for many conventions and road weary travellers. Kingsway is also home to popular retailers like Sears, Zellers, the Bay, Canadian Tire and western Canadian grocery giant Save-On-Foods. Add to all this NAIT and the City Centre Airport. Edmonton Kingsway really does have the perfect area, all within walking distance, where people can work, eat, learn, play, shop and sleep.

2009 was the year Aviation Celebrated 100 years of Flight in Canada. The Aviation Museum was unequalled in Canada in the number of activities and events it hosted throughout the year to recognize Canadian aviation and the important role Edmonton has played. Edmonton is an aviation city of firsts – City Centre Airport (Blatchford Field) was the first licensed airport in Canada, and from here Edmonton had the first mercy flight, the first commercial passenger flight and the first mail flight. Edmonton’s aviation history is as exclusive as the airfield itself.

Despite a poll, commissioned by the KBA in April 2009, that showed over 75% of Edmontonians thought the Airport should remain open, despite an overwhelming majority of people from Edmonton and throughout the Province and the NWT speaking in favour of airport lands remaining as an airport at the Public Hearings in June 2009, despite the absence of environmental clean up costs and economic impact reports, 2009 was also the year that City Council passed a motion to close the vital Instrument Approach runway (16/34) at ECCA as of April 1, 2010 (later amended to July 31, 2010 thanks to efforts by the Aviation Museum). This was done with the intent of starting a phased closure of the entire airport. The City of Edmonton and the Edmonton Regional Airports Authority have a 56 year lease (the Head Lease) which states the airport would remain as an airport until 2052. Because of this motion the City has to break the lease 42 years early. Airport tenants have long term leases tied to the Head Lease. This ‘phased closure’ will further devastate Aviation in Edmonton and drive businesses out of the city. As many are aware, the Kingsway Business Association has been a strong advocate for the airport over the years. Aviation businesses represent about 40% of this BRZ’s membership and the KBA is in full support of these businesses remaining as a vibrant part of the local community. If City Council does initiate phased closure of the airport it will change Edmonton in ways impossible to predict and the loss of this unique business community, the diversity, history and connectivity it brings Edmonton not to mention the unparalleled access to health care it offers rural communities, will be beyond measure.

Mary Anne Stanway - KBA Chair Page 7

KINGSWAYKINGSWAY BUSINESS ASSOCIATION

2009 Board of Directors

Mary Anne Stanway Bob Lamoureux (Chair) Alta Flights Charters Inc. Airco Aircraft Charters Ltd. Edmonton International Airport Bldg #6, Edmonton City Centre Airport Edmonton, AB T5J 2T2 11930 – 109 Street Edmonton, AB T5G 2T8 George Marine Ramada Hotel & Conference Centre Art Breier 11727 Kingsway Hangar 11 Corp. Edmonton, AB T5G 3A1 Bldg 11, Edmonton City Centre Airport 11760 – 109 Street Bob McEwen Edmonton, AB T5G 2T8 McEwen’s Aviation Services Dave Davenport Bldg 19, Edmonton City Centre Airport Canadian Tire 77 Airport Road 11839 Kingsway Edmonton, AB T5G 0W6 Edmonton, AB T5G 0X6 Cliff Stoakley Paul Gervais Kingsway Garden Mall Skyharbor 95 Aviation Ltd. 320 Kingsway Garden Mall 22 Airport Road Edmonton, AB T5G 3A6 Edmonton, AB T5G 0W7 Kathy Hall Marlin Travel Councillor Edmonton, AB Ron Hayter Ward 2 Don Koziak City Hall Chateau Louis Hotel & Conference Edmonton, AB T5J 2R7 Centre 11727 Kingsway Karon Kosof Edmonton, AB T5G 3A1 Executive Director Page 8

Promoting Edmonton Kingsway Edmonton Kingsway “Edmonton Kingsway” is the term that we use when we market the businesses within the Kingsway Business Association. We promote this area through ads and at tradeshows, encouraging people to:

SHOP — STAY — FLY — PLAY “Edmonton Kingsway is close to everything and has everything you will need.”

Kingsway Business Association's focus in 2009 was to improve Member Ser- vices and Communication. As with many BRZs many businesses/members do not know they are a part of this organization and the benefits available to them. Benefits include the “Façade Improvement Program” and the “Communities In Bloom, Flower Barrel Program.” Tradeshow In Spring of 2009 we represented Edmonton Kingsway at a tradeshow in Ft McMurray, AB. It has been a few years since Kingsway Business Association exhibited at the Spring Tradeshow. With winter over and people thinking of heading out of town for shopping and vacations we found those who stopped at our booth receptive to our information and excited to come stay and shop in our area. We gave backpacks to the children which had our website on it. There were many concerns expressed about the pending closure of the Edmonton City Centre Airport from those who use the airport for business and those who have been effected by Medevac services. Thank you to the Ramada Hotel & Conference Centre for sending one of their staff to assist at the booth. Member Newsletter While many organizations are moving to an electronic newsletter because of cost and convenience, Kingsway Business Association decided to keep its annual four page newsletter in a printed format mailed to its members each Spring. In the mailed newsletters we send tickets to local events along with advertising opportunities. Our goal with using the soft touch marketing approach is to maintain the personal touch with our membership. Page 9

KINGSWAY BUSINESS ASSOCIATION

Advertising In 2009, the Kingsway Business Association advertised and promoted the Edmonton Kingsway area through:  Edmonton Visitors Guide (circulation 175,000) - Edmonton Tourism  Yellowhead IT! Magazine (circulation 75,000)  Yellowhead IT! Maps  Yellowhead IT! Website  Tradeshow in Fort McMurray Over the last few years the Kingsway Business Association has focused on targeting the Northern Alberta market and those traveling along the Trans Canada Yellowhead Highway. We have found that Northerners come to Edmonton to do the majority of their shopping as well as to use the health services in Edmonton. Edmonton Kingsway is easily accessed by those driving into Edmonton and flying into the Edmonton City Centre Airport. Page 10

Edmonton Kingsway Enhancement

Flower barrels on Kingsway 2009 was the second year that Kingsway participated in the “Communities in Bloom Flower Barrel Program.” KBA placed the colourful flower barrels at strategic locations, to enhance the experience of people coming into the Edmonton Kingsway Area, whether they drove on our streets, rode the bus or walked on our sidewalks. There were 87 barrels on our streets with 56 of the barrels purchased by local participating businesses which included: Airco Aircraft Charters, Alberta Motor Association, Aspen Home Healthcare Products, Chateau Louis, City Centre Best Western, Edmonton Airports, Edmonton Oilers, Kingsway Garden Mall, Kingsway Tire, Melcor, NAIT, North- gate Industries, Ramada Conference Centre, Servus, Stars, and Winners Garment Industries. By the many phone calls and people stopping by the office to tell us how welcoming the flower barrels made them feel, we believe this program was a huge success in enhancing Edmonton Kingsway. Graffiti We are very fortunate in Edmonton Kingsway not to have a huge problem with graffiti, unlike other areas in the city. Page 11

KINGSWAY BUSINESS ASSOCIATION

Clean up on Kingsway To ensure that Edmonton Kingsway was looking its best, we hired Bill, the “Litter Buster” to keep an eye on Kingsway. While keeping the litter at bay, Bill also kept us up to date on any problems that were happening along the street. Bill was also available at an hourly rate to assist businesses with litter cleanup maintenance. In 2009, between April 16 and November 12, 92 hours of litter gathering was logged and 88 bags of garbage were collected. Page 12

Edmonton Kingsway Enhancement (Cont’d)

Flags on Kingsway Kingsway flew its flags proudly in 2009. We celebrated “100 Years in Aviation,” promoted “Rexall ,” “Back to School Shopping,” and “Holiday Season Shopping.” 2009 was a very windy year and some of our flag poles took a beating. KBA still has the largest display of independent flags in Edmonton. Page 13

KINGSWAY BUSINESS ASSOCIATION

Capital City graffiti Wipe-Out On 121 Street The Kingsway Business Association participated in Graffiti Wipe-Out along 121 Street between Kingsway and the Yellowhead Highway in preparation of the premier event in our area—The Rexall Edmonton Indy.

The graffiti on the businesses backing onto 121Street has been an issue for some time and it was great being a part of cleaning it up. We are pleased to say that the graffiti has not returned. The City’s initiative in encouraging business owners to take graffiti seriously by supplying cleanup kits and assistance and to clean it up as soon as possible, is a positive step to showcasing that the city is being cared for. Page 14

2009 Issues / advocacy

Edmonton City Centre Airport In the mission and goals of the Kingsway Business Association it states that we support efforts to promote the long term viability of the Edmonton City Centre Airport as an airport. This statement is a goal, not only because of the industry and employment it brings to our City but because of the role it plays as the Capital of Alberta and with the many services and resources that this airport brings to Edmonton. Services provided is Medevac care for Edmontonians working in the north as well as efficient access for Northern Alberta, British Columbia, Yukon and Inuvik.

In keeping with our mission the KBA created a website www.citycentreairport.ca where the general public could find information re- garding the Edmonton City Centre Airport and post a comment to City Council.

KBA commissioned a survey to find out where Edmontonians stood on Edmonton City Centre Airport. The survey included all demographics (over 18) and included all parts of the City. The survey result 74.9% of those poled felt that the airport was an important and integral part of Ed- monton even if they personally did not use it. From the comments gath- ered, many expressed concerns that City Hall was not listening. Page 15

KINGSWAY BUSINESS ASSOCIATION

Edmonton City Centre Airport (Cont’d)

The Kingsway Business Association participated in the city’s Airport Land Stakeholder sessions as well as presenting at the Airport Land Hearing at City Hall on July 4. Again the number of those attending both the Stake- holders meeting and the public hearing was an overwhelming majority in support of the land remaining as an operating Airport. An extensive mo- tion was brought forward by Ed Gibbons and City Council opted for phased closure. Those in favour of the motion included: Mayor Mandel, Councillors Karen Leibovici, Krushell, Ed Gibbons, Jane Batty, Ben Henderson, Bryan Anderson, Don Iveson and Dave Theile. The Council- lors in support of the Airport and voted against the motion were: Linda Sloan, Tony Caterina, Ron Hayter. North LRT Expansion In 2009 Kingsway Business Association represented the concerns of their businesses at the ongoing discussion meetings for the proposed North LRT Expansion. Concern has been raised to the apparent aggressive push regardless of missing federal funding deadlines for the project, the lack of appropriate feasibility studies, no plan for crossing the CN Rail lines.

Façade Improvement Program The City of Edmonton initiated a Façade Improvement Program in all Business Revitalization Zone (BRZ) areas several years ago with an application process for businesses who were interested in street-front improvements. This Program was a shared cost opportunity for businesses with the City of Edmonton. There were several businesses in Edmonton Kingsway who were interested in the program, however due to the lack of City funding, these businesses were not able to take advantage of this program during 2009. Due to the lobbying of the BRZ’s and the City’s Planning Department City Council approved the funding to continue with this crucial program in 2009. Page 16

2009 Events & Programs

Luncheon March 18, 2009 KBA brought the retired former Director of General Aviation of Page Field General Aviation Airport, Ft Meyer, FL to speak to a sold out luncheon to speak on the “Real Opportunities that a Downtown Airport brings to a City.” The event began with a press conference and then moved into the luncheon. Sponsors for this event included: McEwens Aviation Services, Melcor, Airco Aircraft Charters, Sobeys and the Alberta Enterprise Group. The program included the MC, Doug Elinski, MLA for Edmonton Calder and greetings from the City were brought by Councillor Kim Krushell. Over 260 aviation supporters attended the event. This was the first luncheon event organized by KBA. Page 17

KINGSWAY BUSINESS ASSOCIATION

Airfest 2009 The Kingsway Business Association was again one of the sponsors of Airfest 2009 held on Sunday June 28th at the and the Edmonton Aviation Heritage Society. It was a great family event celebrating “100 years of Avia- tion.” KBA provided tickets for each of our member businesses to attend the event.

Included in the sponsorship was the opportunity for our member businesses to participate in the tradeshow at no cost. There were several Edmonton Kingsway businesses who promoted their businesses with coupons and draws. Participating businesses were: Airco Charters, Cen- tennial Flight Centre, Chateau Nova Hotel, Curves Kingsway, Eagle Ridge Resort Group, Edmonton Flying Club, Esso Avitat, EZ-Air Helicopters, Infinit Air, J. Michaels Fashions, Sony Style, STARS, Studio at the Inn, Winner Garment Industries Ltd. City of Edmonton - Office of Safedmonton and Edmonton Neighbourhood Watch also participated at the event. Page 18

2009 Events & Programs (cont’d)

AGM On October 29, 2009, 34 members of Kingsway Business Association gathered at the Northgate Industries Executive Lounge for the Annual General Meeting. After a brief business meeting and the election of the 2010 Board of Directors the attendees were treated to a buffet of Hot and Cold Hors d’Oeuvres catered by the Chateau Louis Ho- tel. As a thank you, each 2009 Director received glass picture coasters with the KBA logo and thank you inside. In appreciation, the attending Members each received an embossed leather notepad and pen. This event proved to be a great opportunity for members to meet and network. The attendance at our AGM was down somewhat from the previous year because of the H1N1 virus concerns. Thank you to our Ward 2 Councillors who were both able to attend this event. The 2010 Board of Directors appointed are: Art Breier (Hangar 11 Corp), Mike Faber (Servus Credit Union), Paul Gervais (Skyharbor 95), Kathy Hall (Marlin Travel), Don Koziak (Chateau Louis), Bob Lamoureux (Alta Flights), George Marine (Ramada), Bob McEwen (McEwen Aviation), Mary Anne Stanway (Airco Charters), Cliff Stoakley (Kingsway Mall) Page 19

KINGSWAY BUSINESS ASSOCIATION

Multi-Business Association After-Business mixer On November 19, 2009, the Kingsway Business Association held their second Multi-Business Asso- ciation After-Business Mixer at Alberta Aviation Museum. This year the partnerships increased with the partnering association including Northern Al- berta Business Incubators, Aviation Edmonton As- sociation, BRZ, Alberta Avenue BRZ and the West Edmonton Business Association. Tradeshow booths and attendance also increased at this event. There were 49 Exhibitors and over 400 people in attendance. Special draws provided by our sponsors included:  McEwen’s Aviation Services – a one hour plane ride to soar over your desired destina- tion from the Edmonton City Centre Airport.  Airco Air Charters – a Champagne Flight over Edmonton from the Edmonton City Centre Airport.  Ramada—A weekend stay for two Ramada Hotel and Conference Centre also pro- vided Beef on the Bun for the event. Page 20

2009 Events & Programs (cont’d)

KBA Annual Christmas Luncheon The Kingsway Business Association Board hosted a Christmas Luncheon on December 11, 2009 at the Chateau Louis Hotel & Conference Centre. Invita- tions were sent to the Mayor, all City Councillors, our local MLA and MP as well as individuals in vari- ous city departments who worked with KBA during 2009 as well as the presidents of the local commu- nity leagues. This event is planned as a way for KBA to show appreciation to the City and to give every- one an opportunity to meet each other in a relaxed atmosphere. Twenty-five attendees, including some City of Edmonton Councillors, enjoyed a delicious meal and great fellowship. One retiring Director, Averil Finlay received a token of appreciation gift and a thank you for her volunteer time on the KBA Board. Page 21

KINGSWAY BUSINESS ASSOCIATION

Community relations

In 2009, the KBA became more involved with the community leagues surrounding the area— Rupert, Prince Charles, Spruce Ave and Westwood. KBA at- tended their board meetings to find out more about what the community was doing and to find out where as a business association we could assist in making Edmonton Kingsway even better. We supported their community papers by placing advertise- ments and posted all their events on the edmontonkingsway.ca website

Changes in Kingsway

Alberta Motor Association (AMA) The Alberta Motor Association (AMA) has been proudly serving members from the Kingsway centre for 53 years and as the largest membership organization in Alberta, AMA represents more than 892,000 members across the province. Open for business on August 4th, 2009, the new and expanded Kingsway centre is more than just aesthetically pleasing – it has been designed with both our members and staff in mind and includes state-of-the-art features and amenities such as a geothermal heating and cooling system that is one of the few systems of its kind in the province for a building of this size. The new AMA Kingsway building will allow our staff to continue to provide the one-of-a-kind service and positive experience AMA mem- bers have come to expect in travel, insurance, driver education, roadside assistance and registry services. Page 22

Kingsway Mall Kingsway Mall, originally constructed in 1976, has completed a $70-million rede- velopment including a brighter appearance, a major Food Court upgrade, the incor- poration of comfortable soft seating throughout and the addition of several environ- mentally friendly building features. Kingsway Mall officially launched its new iden- tity including a name change, November 13, 2009. The renovations have created Edmonton’s newest and most spectacular fashion destination, with a hip urban personality, a design that brings the outdoors in and of course, great shopping. The new tenant mix includes some great fashion brands and a place for people to relax and recharge. It’s time to see Edmonton shopping in a whole new light, which is exactly what Kingsway Mall has to offer. Page 23

KINGSWAY BUSINESS ASSOCIATION

Auditor’s Report

To the Members of KINGSWAY BUSINESS ASSOCIATION OF EDMONTON

We have audited the balance sheet of the KINGSWAY BUSINESS ASSOCIATION OF EDMONTON as at December 31, 2009 and the statement of revenues, expenditures and surplus and cash flows for the year then ended. These financial statements are the responsibil- ity of the Association'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 ac- cepted 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 in- cludes 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 mate- rial respects, the financial position of the Association as at Decem- ber 31, 2009 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally ac- cepted accounting principles.

Edmonton, Alberta Chartered Accountants March 2, 2010 Page 24

Statement of Revenues, Expenditures and Surplus For the Year Ended December 31, 2009

2009 2008

Revenue Business Revitalization Zone Levy $ 275,000 $ 270,000 Interest income 6,503 11,235 Other 3,467 450 284,970 281,685

Expenditures Special projects (note 4) 168,744 161,122 Management fees 32,920 34,889 Rent 20,472 18,178 Advertising and reproduction 17,670 15,845 Office 12,809 14,956

Telephone 4,116 3,586 Professional fees 3,680 3,707 Memberships and insurance 3,209 1,713 Travel, training and promotion 1,055 5,436 Amortization 451 569 265,126 260,001

Excess of revenues over expenditures 19,844 21,684 Surplus, beginning of the year 328,764 307,080

Surplus, end of the year $ 348,608 $ 328,764

Ellis Group LLP Ellis Group LLP Page 25

KINGSWAY BUSINESS ASSOCIATION

Balance Sheet December 31, 2009

ASSETS

2009 2008

Current Assets Cash $ 195,596 $ 45,277 Short term investments 209,866 314,737 Accounts receivable 11,411 8,074 Total current assets 416,873 368,088

Equipment (note 3) 1,735 2,186 $ 418,608 $ 370,274

LIABILITIES AND SURPLUS

Current Liabilities Accounts payable - $ 41,510 Deferred revenue (note 4) 70,000 - Total current liabilities 70,000 41,510

Surplus 348,608 328,764

$ 418,608 $ 370,274

Ellis Group LLP Page 26

Statement of Cash Flows For the Year Ended December 31, 2009

2008 2007

Cash provided by (used in) operating activities Excess of revenues over expenditures $ 19,844 $ 21,684 Item not affecting cash Amortization 451 569 20,295 22,253

Net change in non-cash working capital (Increase) decrease in accounts receivable (3,337) (7,854) (Decrease) increase in accounts payable (41,510) 40,067 Increase in deferred revenue 70,000 - 25,153 32,213

Increase in cash 45,448 54,466

Cash, beginning of the year 360,014 305,548

Cash, end of the year $ 405,462 $ 360,014

Cash consists of: Cash $ 195,596 $ 45,277 Short term investments 209,866 314,737 $ 405,462 $ 360,014

Ellis Group LLP Page 27

KINGSWAY BUSINESS ASSOCIATION

Notes to the Financial Statements December 31, 2009

1. General On November 10, 1987, the City of Edmonton Municipal Council passed Bylaw 8621 creating the Kingsway Business Revitalization Zone and incorporating the "Edmonton Kingsway Business Revitalization Zone Association," and Amendments to June 6, 1995. The purposes of the Association are improving, beautifying and maintaining property in the Zone Area, developing, improving and - taining public parking and promoting the Zone as a business district.

2. Accounting Policies (a) Short Term Investments Short term investments consist of term deposits maturing in 2011 at varying rates ranging from 3% to 4% per annum (b) Revenue Recognition The Association follows the accrual basis of accounting. The Busi- ness Revitalization Zone Levy is paid in quarterly installments dur- ing the calendar year. Interest and other revenue is recognized when earned. (c) Equipment Equipment are recorded at cost less accumulated amortization. Amortization is provided using the following methods and annual rates. Computer 30% declining balance Equipment 20% declining balance (d) Use Of Accounting Estimates The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates that affect the reported amounts of assets and li- abilities and disclosure of contingent assets and liabilities as at the date of the financial statements and the reported amounts of reve- nue and expenses during the reporting period. Actual results could differ from those estimates. (e) Statement Of Cash Flows The statement of cash flows has been prepared using the indirect method.

Ellis Group LLP Page 28

Notes to the Financial Statements December 31, 2009 (cont’d)

3. Equipment 2009 2008 Accumulated Net Book Net Book Cost Amortization Value Value

Computer $ 1,882 $ 1,750 $ 132 $ 188 Equipment 6,998 4,944 2,054 2,567

$ 8,880 $ 6,694 $ 2,186 $ 2,755

4. Deferred Revenue Deferred revenue represents an advance payment on the 2010 Busi- ness Revitalization Zone Levy.

5. Special Projects During the year the Association expended (recovered) funds related to the following special projects: 2009 2008

City Centre Airport $ 72,931 $ 82,578 Member Services 30,615 22,555 Kingsway Enhancement 22,891 36,263 Website 15,652 1,566 Marketing 12,141 8,209 Airfest 8,037 7,016 Tradeshow Promotion 5,922 7,862 Indy Race 555 (4,927) $ 168,744 $ 161,122

Ellis Group LLP Page 29

KINGSWAY BUSINESS ASSOCIATION

Notes to the Financial Statements December 31, 2009 (cont’d)

6. Financial Instruments The Association's financial instruments consist of cash, short term invest- ments, accounts receivable, and accounts payable. Unless otherwise noted, it is management's opinion that the Association is not exposed to significant interest, currency or credit risk arising from these financial instruments.

Interest Risk The Association is exposed to interest rate risk on its short term invest- ments. The carrying value of these financial instruments is not adjusted to reflect increases or decreases in fair value due to interest rate changes as it is the Association's intention to realize their value over time by holding them to maturity.

Fair Value The carrying value of the Association's financial instruments approximates their fair value. Certain financial instruments lack an available trading market and, therefore, fair value amounts should not be interpreted as being necessarily realizable in an immediate settlement of the instrument.

Ellis Group LLP

K I N G S W A Y B U S I N E S S A S S O C I A T I O N

11810 Kingsway Edmonton ,AB T5G 0X5

Phone: 780.454.9716 Fax: 780.453.1025 E-mail: [email protected]

Member website: www.kingswayba.ca