Members of the Port Authority Governing Board were told to expect rising revenues in Fiscal Year 2020. VIPA officials convened a special meeting to complete the agenda of the monthly meeting held July 23.
An introduction to the agency’s FY2020 budget was a part of the extended Tuesday agenda.
According to Executive Director Carlton Dowe, revenue increases are expected to come from new fees at the territory’s airports, new leases for concessionaires, and a possible lease agreement with the Water and Power Authority.
VIPA Chief Financial Officer Anna Penn laid out the goals and priorities to be served by the spending plan that takes effect Oct. 1. VIPA is semi-autonomous and self-funded. So it presents its budget to the Legislature for oversight and informational purposes but the Legislature does not approve its budget.
Board members listened carefully to the presentation. In FY2020, the Port Authority will focus on generating new revenues, continuing repair and upgrades of air and marine facilities; filling vacancies through hiring and introducing adaptive technologies.
After the special meeting concluded Monife Brathwaite, spokesperson for the Port Authority, said the size of the budget has not been determined yet.
But as a semi-autonomous agency, the Port Authority is also expected to generate revenue to cover large portions of its budget. Penn said in FY2020, the agency is expected to bring in $30.4 million through marine operations and $32.4 million on the aviation side. Projected expenses for marine operations are pegged at $25.5 million; $30.2 for aviation.
Salaries for Port Authority staff and management is projected at $14.9 million in the spending year to come.
Speculation about revenue enhancements got some pushback from board member Marvin Forbes. Dowe offered some specifics.
The director said new revenues are expected to come from new fees on suppliers pumping fuel for aircraft. Inactive concession spaces will be offered to new vendors; passenger facility charges are set to take effect and Dowe said.
“With the addition of more flights coming in, impact on landing fees, impact on passenger facility charges, the new contract we’re doing with Total – in particular – private jet handlers and so forth, what we’re expecting we’ll see a robust year in the private activity with jet services,” the director said.
Forbes suggested most of the revenue projections appeared to come from St. Thomas facilities. He urged Dowe to do more to raise revenues on St. Croix.
The director said the agency is looking at refueling operations at the Henry E. Rohlsen Airport. He also raised the possibility that Crowley Shipping was planning to move into a new lease agreement on the big island.
Port Authority is also in talks with WAPA about leasing land near Rohlsen Airport to build an alternative energy installation using solar panels.
After listening to the presentation, board member Yvonne Thraen said she had not heard enough. “A superficial discussion like this does not really prepare you to understand this budget,” Thraen said.
Board chairman Leona Smith said there would be more time to absorb the details before a formal vote is taken.
“The Aug. 28 meeting; at that time we’ll be ready to approve the budget,” Smith said.
The Port Authority is scheduled to appear before the Legislature’s Committee on Finance Aug. 20. Some board members suggested they would like to attend a pre-hearing session, in house, to hear officials rehearse and refine what they will say before lawmakers on that day.
The special Tuesday meeting also allowed the board to act on spending measures proposed from the Projects and Operations Committee:
– Environmental assessment of Charlotte Amalie Harbor: $95,578.72
– Approval of interior architectural finishes for Rohlsen Airport: $1.02 million
– Task to complete projects at Rohlsen Airport Maintenance Building: $63,514
– Repairs for hurricane damage at the Rohlsen Airport Sea Flight Hangar: $14.2 million
– Roof repair at Tropical Shipping Cargo Building and Supreme Court Building, St. Thomas:$779,969.88
– Assorted tasks related to repairs at the Rohlsen Airport Control Tower, Port Authority
– Administrative Building, St. Thomas and the air cargo building at Cyril King Airport: $1.3 million
– Improved security camera system at the Urman Victor Fredericks Marine Terminal, St. Thomas: $91,540
Editor’s Note: Marvin Forbes comments were initially incorrectly attributed to Nelson Petty. Marvin Forbes made the comments.