The vision of GVHA is compelling. It drives our daily actions in the execution of our mandate "to operate and maintain GVHA: to maximize current and future assets, to advocate best water, marine and marine-related uses, and to develop the whole harbour."

To achieve this I have focused this past year on three priorities: financial sustainability, good stewardship, and advocating for the vision.

Our first and highest priority has been to achieve financial sustainability. This year, we achieved a small financial surplus after depreciation without the inclusion of interest income. But what is financial sustainability for a Society with an estimated asset replacement cost of $150 million (not including land) as of January 2007 [book value of $34.2 million (not including land)]. Net profit from operations was $37,317 including depreciation of $1.2 million. The industry average for annual depreciation costs is 2 - 3% of the asset value replacement cost so we face a need for significant capital investment. And at a 5% return on capital target we have a long way to go to be sustainable. In 2007/08 $2.9 million was invested in capital improvements: caissons erosion stabilization on Pier B South, Fisherman’s Wharf improvements to storm damaged fingers 1, 2, & 3, electrical installation on Ship Point, and the purchase of the Mermaid’s Wharf Marina.

We must protect these assets from deterioration and obsolescence. In this regard we have initiated the development of lifecycle plans for all facilities which will assist us in projecting future cash flow implications. We have also initiated an aggressive maintenance program to address deferred liabilities and to ensure these do not overtake us in the future. An enterprise risk management program has begun which identifies the risks and treatments to be used to reduce likelihood and impact of a potential occurrence.

Our second priority has been to provide good stewardship. GVHA operates as an enterprising not-for-profit society, applying best business practices to GVHA’s commercial activity while incorporating the social mandate. The Society continues to make the transition to market value fees. Due to financial challenges, including being a top 20 contributor of property taxes to the City of Victoria and the need to mitigate the potential of asset obselescence, the Society must operate in an business-like manner. This past year a highly successful business plan was introduced that uses the balanced scorecard approach.

In recognition of its corporate social responsibility, GVHA provides support for marine and public festivals and integrates best practices in environmental and public safety stewardship. The introduction of the Cruise Tourism Community Initiative, a program to mitigate the impacts of cruise tourism, is an example of GVHA’s commitment to the vision. This past year the question of tenure for residential float homes was addressed in order to reduce uncertainty – residential float homes will not receive tenure beyond a one year moorage licence. This decision reflects GVHA’s commitment to protecting the facilities for the long term public good.

The third priority has been to advance the vision. We have come to understand that we cannot advance the vision alone and require the collaboration of the member agencies and stakeholders. Transport Canada is a critical partner in the current administration and regulation of the harbour and is integral in shaping the future of the Port of Victoria. GVHA is an engaged partner with the Provincial Capital Commission in the planning for a redeveloped Belleville International Ferry Terminal. We provided input into the City of Victoria Downtown Plan and the Harbour Walkway Strategy. We continue our efforts to advance opportunities to create awareness that the harbour is the traditional territories of the Esquimalt and Songhees Nations.

It has been an exceptional year and the future looks bright for Victoria’s working harbour.