May 20, 2008 — While other government departments and agencies are under budget, the Public Finance Authority is moving steadily through its $5.7 million budget for fiscal year 2008, using about $3 million in the past six months, agency officials told the Senate Finance Committee Tuesday.
Unlike a majority of other government entities, the PFA's budget does not come from the General Fund, but is subsidized by a contribution from the Internal Revenue Matching Fund, or local rum revenues. As of the end of March, the agency is operating on a $625,265 net surplus, said PFA head Julito Francis as he gave senators a mid-year update on how the agency's money is being spent.
Some of the PFA's bigger expenditures include nearly $309,000 on salaries and corresponding fringe benefits; about $546,615 on accounting and auditing services; and $874,075 on lobbyists and consultants — a line item budgeted at $1.7 million for the year.
As of May 2007, the government's general obligation — or bonded — debt stands at about $721.5 million, Francis said. This includes:
— $2.3 million in 1999 Series A bonds;
— about $244 million in 1999 gross receipts bonds;
— $255.8 million in 2003 gross receipts bonds;
— $1.9 million on a 2006 PFA Fire Services loan; and
— $217.5 million in 2006 gross receipts bonds.
By law, the PFA can only issue up to about $1.7 billion in general obligation bonds, or 10 percent of the total assessed value of taxable property in the territory — a figure that currently stands at about $16 billion, Francis said. Debt service on the current bond issues totals $89.7 million a year, he added.
Earlier in the meeting, senators put their stamp of approval on three lease agreements between the government and Joseph Challenger, doing business as Joe's Hideout; Nigel Newton, doing business as Reliable Automotive Repairs; and Kenneth Estrill Jr., doing business as Kenny's Auto Repairs.
An agreement between the government and Metro Motors to lease a piece of land adjacent to the company's current site in Anna's Retreat for the construction of a fenced parking lot was held in committee until it is determined whether the zoning designation on the land allows for the parking lot to be built.
Present during Tuesday's meeting were Sens. Liston Davis, Juan Figueroa-Serville, Neville James, Terrence "Positive" Nelson, Ronald E. Russell and James Weber III.
Sen. Carlton "Ital" Dowe was excused from the meeting.
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