Kenneth Hobson Interim Executive Director Judith V. James Director of Administration & Finance Approved: September 17, 2008 (By: VIPA Board of Directors)
OPERATING AND CAPITAL IMPROVEMENT BUDGET TABLE OF CONTENTS Pages About the Virgin Islands Port Authority & Its Mission Statement. 1 The Governing Board. 2 Organizational Chart 3 Principal Officers..... 4 Executive Staff.. 5 Budget/Summary... 6-9 VIPA Operating & Capital Budget Summary 2009.... 10 Statement of Coverage - Marine Division............ 11 Gross Operating Revenues...... 12 Gross Operating Expenses...... 13 Capital Projects.... 14-15 Operating Budget - Aviation Division...... 16 Operating Budget - Marine Division..... 17 Operating Budget By Department...... 18 Operating Budget - Administrative Summary & Executive Offices.......19 Operating Budget - Administration & Finance & Engineering....20 Operating Budget - Maintenance - St. Thomas & St. Croix.......21 Operating Budget - Property Management..... 22 Capital Projects Highlights.... 23-29 Charts.. 30-36 Virgin Islands Port Authority Projected Enplanements for FY 2007 and 2008 Projected equal enplanements to FY 2007 Down 30,000 enplanements from 2006 700,000 600,000 500,000 400,000 Projected equal enplanements to FY 2007 Down 15,000 enplanements from 2006 300,000 200,000 100,000 0 '04 '05 '06 E '07 E '08 HERA 185,514 207,681 214,234 200,000 210,000 CEKA 607,207 625,693 629,207 600,000 630,000 Passenger Enplanements 37
Henry E. Rohlsen Airport Share of Passengers by Airline (2006 YTD) US Airways 2% Delta 3% LIAT 6% Carib Sun 7% Cape Air 14% American 15% AA Eagle 51% 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 Enplaned Passengers The Virgin Islands Port Authority (VIPA) was created by the Legislature of the Virgin Islands on Dec. 24, 1968 through Act 2375. The Authority was established to own, develop, operate and manage all of the air and marine ports in the United States Virgin Islands. It was also charged with controlling the harbors in the Territory. However, it does not control the mooring and anchoring of vessels. The law stipulates that VIPA must make its properties available to the public so that the populace may reap the benefits of these facilities. The Aviation Division The Port Authority owns and operates two airports, the Cyril E. King Airport (CEKA) on St. Thomas and the Henry E. Rohlsen Airport (HERA) on St. Croix. The international airport identifiers are: STT for the St. Thomas airport and STX for the St. Croix airport. The Marine Division The Port Authority owns and operates marine, cargo and passenger facilities on St. Thomas, St. John and St. Croix. On St. Thomas, the facilities include: the Charlotte Amalie Waterfront; the Edward Wilmoth Blyden IV Marine Terminal; the Crown Bay Cargo Port; the Austin Babe Monsanto Marine Terminal; and the Urman Fredericks Marine Facility, which includes a cargo and passenger facility. On St. John, there are three facilities: the Loredon Lorence Boynes, Sr. Dock, the Victor Sewer Cargo Dock, which is referred to as "The Creek", and the Theovald Eric Moorehead cargo facility. On St. Croix, the facilities include: the Gallows Bay Dock; the Ann E. Abramson Marine Facility; the Wilfred "Bomba" Allick Port and Transshipment Center also known as "The Containerport"; and the Gordon A. Finch Molasses Pier. Mission Statement The mandate of the Virgin Islands Port Authority is to promote the wise use of its facilities for the betterment of the Virgin Islands and its people, and to assist the government of the Virgin Islands in fostering and sustaining sound economic development. To this end, the Port authority is committed to: maintaining and developing the airports and seaports in the Virgin Islands to accommodate the current and future demands of its users; making sure that the airports and seaports are accessible to all qualified users; providing a safe and secure environment at all of its port facilities; providing efficient and quality service to the public; working with the Virgin Islands Government on initiatives to attract tourists and private investors to the territory; fostering commerce by providing incentives to airlines, cruise ships, cargo operators and other potential investors to entice them to do business in the Virgin Islands; making sure that all of its facilities are in full compliance with local and federal regulations; and improving port facilities to keep up with technological advancements. 36 1
T he Virgin Islands Port Authority is governed by a Board of Directors which sets policy. The executive director is responsible for implementing these policies and overseeing the day-to-day operation of the agency. The Board is composed of nine members who represent the three major islands of St. Croix, St. Thomas and St. John. Four members of the governor's cabinet sit on the Board. They are: the Commissioner of the Department of Tourism, the Attorney General, the Commissioner of the Department of Public Works and the Chairperson of the Economic Development Authority. These members serve at the will of the Governor. The five other Board positions are reserved for private citizens who are appointed by the Governor and are subject to the approval of the Legislature of the Virgin Islands. Two of these members must come from St. Croix, two from St. Thomas and one from St. John. They are appointed to a three-year term of office and each is eligible for reappointment. Board meetings are held on the third Wednesday of each month and are open to the public under the Sunshine Law of the Territory. 2 Cassan Pancham Board-Chairman St. Thomas Private Representative Beverly Nicholson-Doty Board-Vice Chairman Commissioner Of Tourism Darryl Smalls Board-Secretary Commissioner Of Public Works Hector Peguero St. Croix Private Representative Gordon Finch St. Croix Private Representative Dr. Yvonne Eleanor Thraen St. Thomas Private Representative Robert O Connor Jr. St. John Private Representative Vincent Frazer Attorney General Of the U. S. Virgin Islands Albert Bryan Commissioner of Labor Chairman: Economic Development Authority 35 Aviation Traffic Activity for Fiscal Years 2003-2007 CEKA LNDGS PAXIN PAXOUT CARGO IN POUNDS CARGO OUT POUNDS FY 2003 30,697 578,412 576,643 9,131,475 636,655 FY 2004 30,421 605,505 607,207 6,302,128 945,444 FY 2005 28,889 623,516 625,693 7,217,947 2,699,019 FY 2006 29,298 631,632 629,207 13,363,431 4,030,582 FY 2007 31,318 631,402 634,091 7,093,090 1,530,906 HERA LNDGS PAXIN PAXOUT CARGO IN POUNDS CARGO OUT POUNDS FY 2003 15,982 176,205 177,136 3,462,271 783,730 FY 2004 14,494 191,153 185,514 6,166,965 441,787 FY 2005 13,785 206,963 207,681 4,242,894 542,628 FY 2006 12,976 210,176 214,234 3,143,961 698,537 FY 2007 13,424 201,639 203,260 4,404,414 515,945 COMBINED LNDGS PAXIN PAXOUT CARGO IN POUNDS CARGO OUT POUNDS FY 2002 46,679 754,617 753,779 12,593,746 1,420,385 FY 2004 44,915 796,658 792,721 12,469,093 1,387,231 FY 2005 42,674 830,479 833,374 11,460,841 3,241,647 FY 2006 42,274 841,808 843,441 16,507,392 4,729,119 FY 2007 44,742 833,041 837,351 11,497,504 2,046,851
Fiscal Year Total Cruise Passengers St. Thomas 2003 1,717,283 Crown Bay Dock Passengers 2004 2,008,787 45,561 2005 2,002,626 84,734 2006 1,892,041 130,152 2007 1,869,907 413,797 2008 (Thru August) 1,810,385 457,110 34 3
FISCAL 2009 BUDGET PRINCIPAL OFFICERS Kenneth Hobson Interim Executive Director Kenneth Hobson Deputy Executive Director David Mapp Assistant Executive Director- St. Croix Judith V. James Director of Administration & Finance Dale Gregory Director of Engineering Don Mills Legal Counsel Cyril E. King Airport Enplaned Passengers by Fiscal Year '83 '84 '85 '86 '05 '06 E '08 E '07 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Fiscal Year Enplanements 4 33
E '08 E '07 Henry E. Rohlsen Airport Enplaned Passengers by Fiscal Year '84 '06 FISCAL 2009 BUDGET EXECUTIVE STAFF '05 '04 '03 Kenneth Hobson Interim, Executive Director '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 Fiscal Year Kenneth Hobson Deputy Executive Director David Mapp Assistant Executive Director - St. Croix Judith V. James Director of Administration & Finance Dale Gregory Director of Engineering Don Mills Legal Counsel Joseph Cranston Special Assistant to the Executive Director Jose Nazario Airport Manager Maria Walters Marine Manager John Payne St. Croix Marine Chief Denise Mills Property Manager '83 O'Neal Moolenaar Territorial Chief-Law Enforcement 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Monifa Marrero Public Information Enplanements 32 5
Vir- BUDGET HIGHLIGHTS The Virgin Islands Port Authority operates as an autonomous agency. The Authority owns and manages the air and marine terminals of the United States Virgin Islands. The Authority derives its operating revenues from user fees and rental fees, charged to the users of its airports, harbors and terminal facilities on St. Thomas, St. Croix and St. John. The Authority is empowered by law to establish and charge the necessary fees and dues to permit the recovery of facility costs. Federal and state government grants are given to the Authority to support capital construction programs providing that the Authority meets the eligible requirements. Passenger Facilities Charges (PFC) are also used to fund Federal Aviation Administration approved capital projects. The Virgin Islands Port Authority expenditures and revenues for Fiscal Year 2009 are projected at $66,334,501. The breakdown of the budget is as follows: Operating Expenses $35,552,583 Debt Service 3,627,959 Capital Projects 25,878,960 Equipment 1,275,000 Total $66,334,501 The budget will be financed primarily from the Authority's generated revenues and Federal Grants as follows: Estimated Revenues - Fiscal Year 2009 $ 50,238,765 Federal Grants (PFC, & FAA) 16,095,736 Total $ 66,334,501 REVENUES Fiscal Year 2009 will be a challenge for the Virgin Islands Port Authority. The current economic downturn will affect financial health of the Authority. Our Airline customers are making tremendous cuts in services and employment due to rising cost. Due to the current economic downturn, the Authority decreased its Aviation Division operating cost by 15%. Major adjustment from carriers servicing the Virgin Islands will affect the 2009 revenues of the Authority. Marine revenues are projected to increase slightly due to the fact that currently the cruise lines, although experiencing rising fuel costs, are increasing surcharges and changing their itineraries to maximize on the use of fuel. To date the Caribbean remains a top cruise destination. Virgin Islands Port Authority Enplaned Passengers by Fiscal Year 1,000,000 800,000 600,000 400,000 200,000 0 Fiscal Year HERA CEKA 6 31
CAPITAL PROJECTS FEDERAL-EDA-FAA-TSA $ 15,560,467 VIPA 10,318,493 TOTAL $ 25,878,960 V. I. PORT AUTHORITY PROPOSED FINANCING 2009 40% CAPITAL PROJECTS 60% FEDERAL-EDA- FAA-TSA VIPA AVIATION American Airlines and American Eagle announced major cuts to its itineraries for FY 2009. The cuts will affect both the Cyril E. King Airport and the Henry E. Rohlsen Airport. American Airlines and American Eagle total market share at the Henry E. Rohlsen for passenger enplanement is 70%. At Cyril E. King Airport the share is 49% of the total enplaned passengers. Delta airlines has announced increased activity for both St. Thomas and St. Croix for FY 2009 the increased activity will result in an increase of approximately 4.5%.. To date it is estimated that total aviation passengers will be reduced from 837,000 in FY 07 & FY08 to approximately 672,000 in FY 09. The projections remain uncertain as the economy continues to follow a downward trend. Therefore, Aviation Revenues in the FY 09 budget has been adjusted by approximately 15%. EXPENDITURES FROM VIPA GENERATED REVENUE OPERATING EXP. $ 35,552,583 EQUIPMENT 1,275,000 DEBT SERVICE 3,627,959 VIPA % CAP. PROJ. 10,318,493 TOTAL $ 50,774,034 PAYROLL $ 17,763,686 REPAIRS/MAINT. 2,580,047 MATERIALS 991,576 UTILITIES 6,003,442 PROF. SERV. 3,684,688 TRAVEL 422,879 INSURANCE 3,681,815 OTHER 424,450 TOTAL $ 35,552,583 ESTIMATED REVENUE 2009 20% OPERATING EXP. 7% EQUIPMENT DEBT SERVICE 3% V IPA % CA P. PROJ. 70% 10% 1% PAYROLL REPA IRS/MA INT. 1% MA TERIA LS 10% UTILITIES PROF. SERV. 51% TRAVEL 17% INSURA NCE OTHER 3% 7% 30 MARINE The Marine Division revenues is projected to increase slightly for FY 2009. Based on the current cruise ship itinerary approximately 1.9 million passengers will visit the Virgin Islands in FY 2009. Approximately 1.5% increase in revenues is projected from the cargo activity. Other activity is projected to remain at the level of FY 2008. EXPENDITURES 2009 expenditures are projected to increase over 2008 estimated expenses as follows: $Inc./(Decr.) Over Estimated Items Estimated 2008 2008 Expenditures Salaries and Benefits $ (558,268) $ 18,321,955 Repairs and Maintenance ( 83,747) 2,663,794 Materials and Supplies 28,064 963,511 Utilities 190,629 5,812,812 Professional & Other Services (361,249) 4,045,937 Travel & Transportation (53,214) 476,093 Insurance ( 59,285) 3,741,100 Financial and Other 236,273 2,153,253 TOTAL $ (660,796) $ 38,178,455 SALARIES AND BENEFITS Reduction of revenues has caused the Authority to adjust its employee expenses. Personnel is the highest cost for the Authority, it represents 51% of the overall expenditures. With the reduction of traffic, the Authority will be unable to sustain any increases in salaries in FY 2009. The Authority will ask its employees to share in the cost for Medical Care. The Authority will pay 80% of this cost and pass on a 20% share to the employees. After reviewing numerous options to adjust salaries and benefits, the Authority concluded these adjustments are better for the employees, rather than termination of some its work 7
force. In 2008 the Authority s retirement share for employees increased by 3%. In FY 2009 medical and dental insurance will increase by approximately 13.1%. B. REPAIRS AND MAINTENANCE is projected to decrease as the Authority continues to cut its expenses to match the projected revenues. The reduction to repairs and maintenance is $83,747. C. UTILITIES are budgeted at an increase due to the rising fuel cost and projected increase by the utility supplier. The Authority is moving forward in making adjustments to its facilities to reduce utility cost which represents 17% of the total expenditures. Major electrical renovation will be done at the airport. Projected increase to utilities is $190,629 it is understated based on the month to month increases by the Utility provider; a midyear review is required. The Authority will however continue to implement measures to reduces the escalating energy cost. The Authority hopes the facilities adjustments will offset against the rising cost. D. PROFESSIONAL SERVICES Security costs remain high. The Authority has adjusted its security plan and has made adjustments to the contract security in Red Hook, Waterfront and Crown Bay. These areas will now be manned by the VIPA Security. FY 2009 will introduce further security enhancements to the marine facilities. This will add more cost to security due to federal mandated regulations imposed. The projected reduction in professional services are $361,249 E. INSURANCE expense for FY 2009 decreased $53,214. The deduction occurred even though the Authority added new facilities. F. FINANCIAL : BONDED DEBT COVERAGE Bonded Debt Payments based on present obligations are as follows: BOND ISSUE PRINCIPAL INTEREST Marine Revenue Bonds, Series 2003A, B & C $ 1,760,000 $1,867,959 BONDED DEBT OUTSTANDING August 2008 Marine Revenue Bonds, Series 2003A,B & C $ 39,318,832 The proposed fiscal year 2009 capital projects budget is $25,878,960. The capital budget will be funded in part by Federal and Virgin Islands Port Authority funds: 8 29
2009 Equipment Budget CAPITAL EQUIPMENT New Telephone System Replacement $ 150,000.00 New Accounting Software/Training & Hardware 225,000.00 New Chiller Henry E. Rohlsen 250,000.00 New Pilot Boat 500,000.00 Marine Security Cameras 150,000.00 Total Equipment $ 1,275,000.00 Other Equipment Included in the Capital Budget Disabled Passenger Lift-HERA Replace a non-functioning disabled passenger lift which is designed to provide a safe, dignified means to assist passengers with ambulatory or mobility impairments in the enplaning/deplaning of aircrafts. Chiller CEKA Replacement of second air condition chiller to provide chilled water for the cooling system at the passenger terminal at Cyril E. King Airport. The existing units have passed its normal useful life and are in dire need of replacement. A 400 Ton Unit will be installed alongside of another 400 Ton Unit. Generators will be placed at the Blyden Terminal for the Authority and its customers and at the U.S. Customs Border and Security offices on St. John. EQUIPMENT BUDGET ($ 1,275,000.00) Only essential equipment will be purchased in FY 2009. Currently the telephone communication system is failing improvements will be made to the equipment to enable better communication with the public and our customers. Additionally, the Authority will upgrade its currents accounting system Solomon which has been in use for over 25 years to SAP Business One. A replacement chiller will be purchased for Henry E. Rohlsen Terminal, a new Pilot Boat for St. Croix Marine and additional Security Cameras will be purchased for various units within the Marine Division. Over the past year the Authority has experienced financial losses in millions. As of July 31, 2008 the operating loss is $6.8 million. At the close of FY 2008 the operation loss is projected at $9 to $10 million. Although extreme measures have been taken by the Authority to reduce cost in FY 2008 there are some costs that have remained uncontrollable. Cost such as employer benefits has continued to be a major burden for the authority. The rising costs includes pension, health, prescription and dental benefits. Our second largest cost is utilities, and this has continued to burden the agency in spite of measures instituted to control cost. Therefore, as a result of continued increase in cost without the related increase in revenues the proposed Fiscal Year 2009 budgeted expenditures is reduced in some areas. The 2009 Budget is predicated on the following factors: 1. No Salary increases will be granted 2. No new positions will be added to the 2009 budget, and all vacancies not filled in 2008 has been removed from the personnel budget. 3. Employees will move from 100% employer share of medical benefits to an 80% employer contribution and 20% employee contribution. 4. The Authority will reduce overtime cost. 5. The Authority will institute measures to reduce energy cost. 6. The Authority will continue the aggressive collection of accounts receivable; and 7. Institute fees for all services performed, and examine all leases to ensure all possible revenue sources are met. Finally, the Authority will continue to provide, a secure environment at all of its facilities, and efficient and quality service to the general public. Although the challenges ahead will cause major reductions on the revenues, with proper management the Authority will continue to carry out its mandate. 28 9
OPERATING AND CAPITAL BUDGET SALARIES, WAGES AND PAYROLL $ 17,763,686 REPAIRS AND MAINTENANCE $ 2,580,047 MATERIALS AND SUPPLIES $ 991,576 UTILITIES $ 6,003,442 PROFESSIONAL SERVICES $ 3,684,688 TRAVEL AND TRANSPORTATION $ 422,879 INSURANCE $ 3,681,815 FINANCIAL-NON BOND $ 424,450 TOTAL OPERATING $ 35,552,583 DEBT SERVICE MARINE BONDS SERIES 2003A & 2003B $ 2,758,259 MARINE BONDS SERIES 2003 C $ 869,700 TOTAL DEBT SERVICE $ 3,627,959 CAPITAL PROJECTS $ 25,878,960 EQUIPMENT $ 1,275,000 TOTAL $ 27,153,960 TOTAL V.I. PORT AUTHORITY BUDGET $ 66,334,501 FUNDING SOURCES ESTIMATED REVENUE $ 50,238,765 FEDERAL GRANT - FEDERAL AVIATION ADMINISTRATION $ 11,016,166 PASSENGER FACILITY CHARGES (Prior Year $2,879,571) $ 4,079,571 GARVEE GRANT $ 1,000,000 TOTAL FUNDING $ 66,334,501 HENRY E. ROHLSEN AIRPORT (HERA) HURRICANCE SHUTTER DESIGN ($35,000) Plans and specifications will be prepared to design shutters to protect the passenger terminal from severe hurricanes. TSA OFFICE RENOVATION ($400,000) TSA is funding the cost for making renovations to space occupied at the Henry E. Rohlsen Airport. The Authority will oversee the renovations. AIRCRAFT, RESCUE, FIRE FIGHTERS BUILDING DESIGN ($600,000) Design and Plans will be developed by our airport Architectural/Engineering firm and will be submitted to FAA to fund the design and construction of a new ARFF building at the Henry E. Rohlsen Airport. DEMOLITION OF OLD STRUCTURES ($100,000) A program will be devised to systematically demolish structures that are no longer needed at the Henry E. Rohlsen Airport Facility. PAVEMENT MANAGEMENT STUDY ($431,746) A Pavement Management Study will be prepared to meet future needs and improvements in order to qualify for FAA funds in the future. SMALL COMMUNITY AIR SERVICE GRANT ($159,074) Continuation of the air service study to determine what is the most logical routes, airlines, aircraft, service frequency, and other parameters that could best benefit St. Croix. Firm was selected in FY 2008 and work will be completed in FY 2009. GENERAL ADMINISTRATION BUILDING ($100,000) Repairs to the roof, railings and painting of the Administration Building MAJOR MAINTENANCE RESERVE ($950,000) For all locations at the Authority. Funds to respond to unforeseen events such as the need to undertake repairs or replacement of structures, building systems or related mechanical systems. 10 27
LIGHTING STREET AND PARKING-LOT ($1,000,000) All of the light poles along the access road to the terminal and located within the automobile parking lot are corroded and pose serious hazards to person and property. Plans and specifications was prepared for the installations of the new fixtures. INPROVE BAGGAGE CLAIM TERMINAL Phase 1 ($2,529,571) The CEKA Terminal was constructed in 1989 and has been in use without any upgraded improvements. Presently, this facility accommodates anywhere from 3,000 to 3,500 arriving passengers on a daily basis, with a projected increase in the upcoming season tourist season. As a result of national airlines schedules, the majority of the passengers arrive at CEKA within the a two-to-three hour period. The CEKA Terminal is not equipped with passengers loading bridges. However due to Federal regulations arriving passengers must be kept separate from departing passengers, which as a result of the design layout arriving passengers at the CEKA deplane as follows: The arriving passengers walk along a narrow, unclearly delineated, partially exposed exterior of the terminal building that is adjacent to the terminal building; this walkway leads down a path which resembles a tunnel into an unconnected, open highly congested, non air-conditioned baggage claim delivery area. The baggage claim delivery area at CEKA is located in an open space, it is not airconditioned and has inadequate restroom facilities which are unable to accommodate the needs of the arriving passengers. The passenger pick-up area of the CEKA is not configured to accommodate the efficient servicing needs of ground transportation for arriving passengers. The present passenger pick-up area is designed to accommodate the vertical staging of taxis on the inner perimeter with limited space on the outer perimeter for the staging of private vehicles, shuttles and rentals cars. On a daily basis the CEKA experiences massive congestion in this area. Additionally, the parking booth collection kiosks contribute to the inefficient flow of department automobiles from this facility as a result of their location. VIPA has engaged the services of an Architectural/Engineering firm to prepare design and specifications and bidding packages for the redesign and redevelopment of the exterior passenger arrivals area, access way to baggage claim delivery area, passenger pick-up area, ticket booth kiosks and air conditioned the baggage claim area in order to adequately accommodate the increased number of passengers more safely, efficiently and effectively. Detailed plans and specifications will be prepared for the planned improvements. V.I. PORT AUTHORITY MARINE DIVISION STATEMENT OF COVERAGE MARINE USE FEES PILOTAGE $ 608,740 SHIP DUES 14,109,421 WHARFAGE 7,178,158 DOCKING FEES 1,340,072 RENTALS AND CONCESSIONS 5,415,549 INTEREST INCOME 464,599 OTHER REVENUE 712,243 TOTAL OPERATING REVENUE $ 29,828,783 DIRECT OPERATING SALARIES AND BENEFITS $ 5,111,032 REPAIRS AND MAINTENANCE 727,655 MATERIALS AND SUPPLIES 235,882 UTILITIES 1,799,783 PROFESSIONAL SERVICES 2,012,184 TRAVEL AND TRANSPORTATION 39,102 INSURANCE 1,745,606 FINANCIAL AND OTHER 1,964,471 ADMINISTRATIVE ALLOCATED 4,361,971 TOTAL $ 17,997,686 NET AVAILABLE REVENUE $ 11,831,097 DEBT SERVICE Series A & B Bonds $ 2,758,259 Series C Bonds 869,700 3,627,959 COVERAGE 326% 26 11
NAVIGATIONAL AID-INSTALLATION ($100,000) GROSS OPERATING REVENUES BUDGETED ESTIMATED ACTUAL AVIATION DIVISION LANDING FEES 3,207,161 3,445,889 $3,231,935 PARKING AND RAMP FEES 183,703 195,429 179,159 TERMINAL USE FEES 8,480,985 9,432,141 8,988,604 RENTALS AND CONCESSIONS 8,195,631 9,494,589 8,530,766 INTEREST INCOME 266,633 355,510 194,131 OTHER REVENUE 75,868 101,158 354,982 PFC REVENUE 1,200,000 1,578,216 1,469,526 FEDERAL GRANTS 9,664,683 8,437,681 5,324,513 TOTAL AVIATION REVENUE $ 31,274,664 $ 33,040,613 $ 28,273,616 In accordance with the US Army Corps of Engineers permit for the development of the marine terminal at Redhook, the navigable channel has to be sifted southward. This will require new buoys (navigational aids) to appropriately mark the channel. The relocation is required to protect vital marine resources. Ann E. Abramson Marine Facility DREDGING ($150,000) MARINE ST. CROIX Specific areas of this facility must be dredged to meet required depth for cruise ship, voyager class. CATHODIC PROTECTION ($400,000) The Cathodic Protection system will be replaced to provide a longer life span to the Marine Terminal along the waterline areas of the pier. REPAIR CONTAINER PORT BUILDING WAREHOUSE ($200,000) MARINE DIVISION PILOTAGE 608,740 599,744 581,219 SHIP DUES 14,109,421 13,900,908 10,308,439 WHARFAGE 7,178,158 6,579,466 5,826,585 DOCKING FEES 1,340,072 1,320,268 1,269,594 RENTALS AND CONCESSIONS 5,415,549 5,335,517 3,483,208 INTEREST INCOME 464,599 580,873 531,450 OTHER REVENUE 712,243 759,054 356,833 FEDERAL GRANTS 1,351,483-3,643,902 GARVEE BONDS 1,000,000 2,500,000 TOTAL MARINE REVENUE $ 32,180,266 $ 31,575,830 $ 26,001,230 TOTAL REVENUE SOURCES $ 63,454,930 $ 64,616,444 $ 54,274,846 To perform substantial repairs to VIPA s Warehouse at Wilfred Bomba Allick Marine Facility located on the south shore of St. Croix. The warehouse is in present use and is in need of major repair to meet Building Code Standards. REPAIR APRON ($100,000) Continue with the rehabilitation of the dock apron areas by resurfacing the asphalt areas to prevent further deterioration. Roof repairs $350,000 CYRIL E. KING AIRPORT (CEKA) RUNWAY REHABILITATION ($6,000,000) The Cyril E. King Airport Runway needs to be repaired to meet the FAA regulations and the safety of passengers. The project will be carried out in accordance with the design plans developed by an airport Architectural/Engineering firm ELECTRICAL SYSTEM MODIFICATION& BACK-UP GENERATOR ($1,450,000) 12 25
Crown Bay Cruise Ship Dock & Commercial Center DREDGING ($1,800,000) Maintenance dredging will be performed within the navigable channel and areas adjacent to the Cruise Ship Pier for safe navigation and maneuvering of cargo and cruise vessels using Crown Bay Cargo and Cruise Ship Terminals. Approximately 5,000 cubic yards of material will be removed from the sea floor. COMMERCIAL CENTER UPGRADE ($200,000) Although the commercial center building and functional areas of the pier have been completed, there are improvements to be made based on tenant demands, such as water, power HVAC and signage. Crown Bay Sandfill REPLACE OFFICE ($75,000) The building occupied by US Customs and Border Protection, V. I. Port Authority and private entity has deteriorated and requires replacing. A modular office unit will be installed at the site of the existing modular structure DOCK FENDERING ($150,000) Install new cleats and fenders (rub-rails) and upgrade concrete bulkhead and apron areas of the cargo dock. Crown Bay Cargo Dock GROSS OPERATING Fiscal Year 2009 BUDGET ESTIMATED ACTUAL SALARIES AND BENEFITS $ 17,763,686 $18,321,955 $ 16,142,737 REPAIRS AND MAINTENANCE 2,580,047 2,663,794 2,590,715 MATERIALS AND SUPPLIES 991,576 963,511 824,090 UTILITIES 6,003,442 5,812,812 4,953,093 PROFESSIONAL SERVICES 3,684,688 4,045,937 3,873,405 TRAVEL AND TRANSPORTATION 422,879 476,093 322,744 INSURANCE 3,681,815 3,741,100 3,703,857 FINANCIAL AND OTHER 2,389,526 2,153,253 2,527,571 TOTAL $ 37,517,659 $38,178,455 $ 34,938,212 DREDGE ($200,000) Dock Repairs ($500,000) Areas alongside of the cargo docks require maintenance dredging to accommodate vessels being affected by changes in the water depths; additionally areas on the dock surface needs to be repaired. REDHOOK REPAIR DOCK ($100,000) The existing dock needs minor repairs and complete installation of cleats and fenders. When the new dock is completed the old dock will require improvement. The dock will be patched and fenders and cleats will be installed. 24 13
FUNDING LOCATION FEDERAL VIPA TOTAL MARINE - ST. JOHN Cruz Bay "Creek" Master Plan 85,000 85,000 Enighted Pond Marine Building 1,000,000 1,000,000 Loredon Boynes Dock - Dock Resurface 75,000 75,000 Total Marine - St. John 1,000,000 160,000 1,160,000 MARINE - ST. THOMAS Blyden Terminal - Parking Lot Drainage & Resurface 100,000 100,000 - Crown Bay Cruise Ship Dock & Commercial Center - Crown Bay Dredging 1,800,000 1,800,000 Crommercial Center Upgrade 200,000 200,000 - Crown Bay Sandfill - Dredge 200,000 200,000 Replace Office 75,000 75,000 Dock Fendering 150,000 150,000 Redhook - Repair Dock (Resurfacing & Federing) 100,000 100,000 Navigational Aid-Installation 100,000 100,000 - Crown Bay Cargo Dock - Repair Sandfill & Crown Bay Cargo Dock Apron & Fendering 500,000 500,000 Total Marine - St. Thomas - 3,225,000 3,225,000 MARINE - ST. CROIX Ann E. Abramson Marine Facility Dredging 150,000 150,000 Gordon A. Finch Dock Terminal Design Permitting & Phase 1 of Project 900,000 900,000 Container Port Cathodic Protection 400,000 400,000 Repair Container Port Building Warehouse 200,000 200,000 Repair Apron 100,000 100,000 Total Marine - St. Croix - 1,750,000 1,750,000 Total Marine Projects 1,000,000 5,135,000 6,135,000 Cruz Bay Creek MASTER PLAN ($85,000) Project Description Fiscal Year 2009 To prepare design plans to redevelop and upgrade the Creek Area in Cruz Bay, St. John since the cargo activities have shifted to Enighed Cargo Terminal. The DeJongh Group has been selected to design the entire The Creek Area and Cruz Bay Passenger Terminal for the accommodation of tenders, private vessels and ferries. The plans and specifications will determine construction and landscaping costs which will enable the VIPA to budget for the project. A Coastal Zone Management and Virgin Islands Building permit will be required. Enighted Pond Marine Building (1,000,000) Loredon Boynes DOCK RESURFACE ($75,000) MARINE ST. JOHN The deteriorated surface for the dock s deck will be plastered to improve the surface of the areas traversed by passengers from the ferries. MARINE ST. THOMAS This project is planned to provide relief at Red Hook by transferring the heavy cargo activities from that facility to Stalley Bay. This facility can also be used for off-loading heavy bulk material destined for the central and eastern part of St. Thomas shipped from other island areas. It can be used for dredged materials now being transported overland by trucks the municipal landfill. This facility will provide an opportunity to transport material dredged from port areas via barge to the adjacent municipal landfill. Blyden Terminal (100,000) The parking area at the Blyden Terminal located on the Waterfront needs to be resurfaced; additionally, proper drainage is needed to solve current settlement of water on pavement. 14 23
OPERATING BUDGET PROPERTY MANAGEMENT PROPOSED ESTIMATED ACTUAL SALARIES, WAGES AND PAYROLL $ 348,170 $ 311,094 $ 486,037 REPAIRS AND MAINTENANCE 2,500 2,839 1,213 MATERIALS AND SUPPLIES 12,100 12,372 16,732 UTILITIES 7,750 6,812 8,396 PROFESSIONAL SERVICES 9,250 3,206 2,763 TRAVEL AND TRANSPORTATION 8,950 9,576 7,665 INSURANCE 4,378 4,758 6,164 FINANCIAL - - - TOTAL OPERATING $ 393,098 $ 350,658 $ 528,970 Virgin Islands Port Authority - FUNDING Fiscal Year 2009 Budget SOURCE LOCATION FEDERAL VIPA TOTAL CYRIL E. KING AIRPORT (CEKA) CEKA Roof Repairs 350,000 350,000 Runway Rehabilitation 5,700,000 300,000 6,000,000 Electrical System Modifications & Back-up Generator (PFC) 1,450,000 1,450,000 Street Lights 1,000,000 1,000,000 Runway Remarkings -New FAA Regulations 100,000 100,000 Baggage Claim Renovation 1,529,571 1,000,000 2,529,571 BOURNEFIELD Demolition of Structures 100,000 100,000 Total Cyril E. King Airport & Non-Aeronautical 8,679,571 2,850,000 11,529,571 HENRY E. ROHLSEN AIRPORT (HERA) Hurricane Shutter Design for Passenger Terminal 35,000 35,000 TSA Office Renovation 400,000 400,000 ARFF Building Design 600,000 600,000 Demolition of Structures North of Airport 100,000 100,000 Pavement Management Study 410,159 21,587 431,746 Small Community Air Service Study 150,000 9,074 159,074 Total Henry E. Rohlsen Airport 960,159 765,661 1,725,820 Total Aviation Projects 9,639,730 3,615,661 13,255,391 GENERAL Administration Building 100,000 100,000 Major Maintenance 950,000 950,000 Total General - 1,050,000 1,050,000 CAPITAL EQUIPMENT HENRY E. ROHLSEN AIRPORT (HERA) Disabled Passenger Lift - HERA 80,294 4,226 84,520 (1) Rapid Intervention Vehicle 179,835 9,465 189,300 (2) ARFF Vehicles 1,352,860 71,203 1,424,063 CYRIL E. KING AIRPORT (CEKA) (1) ARFF Vehicle 676,430 35,602 712,032 (1) Rapid Intervention Vehicle 179,835 9,465 189,300 Air Conditioning System (PFC) 1,100,000 1,100,000 Marine St. Thomas Marine St. Thomas & St. Croix TWIC System 1,351,483 337,871 1,689,354 Emergency Genarator 50,000 50,000 Total Equipment 4,920,737 517,832 5,438,569 TOTAL CAPITAL PROJECTS $15,560,467 $ 10,318,493 $ 25,878,960 22 15
AVIATION DIVISION OPERATING BUDGET CYRIL E. KING AIRPORT BUDGETED ESTIMATED ACTUAL SALARIES AND BENEFITS $ 2,529,239 $ 4,074,899 $ 3,093,521 REPAIRS AND MAINTENANCE 1,201,201 1,227,365 1,037,179 MATERIALS AND SUPPLIES 266,760 278,934 281,266 UTILITIES 2,590,013 2,501,673 2,186,385 PROFESSIONAL SERVICES 356,150 333,825 306,849 TRAVEL AND TRANSPORTATION 56,500 79,620 30,062 INSURANCE 1,167,919 1,210,912 1,479,615 FINANCIAL AND OTHER 182,500 20,743 23,172 ADMINISTRATIVE-ALLOCATED 4,220,440 3,427,255 3,115,686 TOTAL OPERATING $ 12,570,722 $ 13,155,226 $ 11,553,735 OPERATING BUDGET MAINTENANCE ST. THOMAS PROPOSED ESTIMATED ACTUAL SALARIES, WAGES AND PAYROLL $ 1,110,874 $ 1,193,470 $ 951,937 REPAIRS AND MAINTENANCE 71,500 88,912 101,174 MATERIALS AND SUPPLIES 66,800 69,700 76,401 UTILITIES 40,000 45,676 45,537 PROFESSIONAL SERVICES 29,500 13,933 12,179 TRAVEL AND TRANSPORTATION 8,750 7,783 5,413 INSURANCE 26,678 31,673 32,368 FINANCIAL AND OTHER 16,500 15,862 1,829 TOTAL OPERATING $ 1,370,602 $ 1,467,009 $ 1,226,838 HENRY E. ROHLSEN AIRPORT BUDGETED ESTIMATED ACTUAL SALARIES AND BENEFITS $ 1,992,970 $ 2,424,292 $ 2,315,981 REPAIRS AND MAINTENANCE 355,492 560,926 607,105 MATERIALS AND SUPPLIES 141,331 119,933 104,245 UTILITIES 1,238,671 1,203,611 1,041,010 PROFESSIONAL SERVICES 189,753 222,688 560,087 TRAVEL AND TRANSPORTATION 33,522 36,374 18,854 INSURANCE 614,990 582,500 690,900 FINANCIAL AND OTHER 60,006 37,617 25,625 ADMINISTRATIVE-ALLOCATED 2,296,230 2,053,163 1,900,446 TOTAL OPERATING $ 6,922,964 $ 7,241,105 $ 7,264,253 MAINTENANCE ST. CROIX PROPOSED ESTIMATED ACTUAL SALARIES, WAGES AND PAYROLL $ 935,092 $ 964,649 $ 909,457 REPAIRS AND MAINTENANCE 78,000 73,336 86,940 MATERIALS AND SUPPLIES 65,300 32,125 47,313 UTILITIES 21,500 19,611 17,963 PROFESSIONAL SERVICES 6,250 5,882 9,983 TRAVEL AND TRANSPORTATION 6,500 6,390 16,439 INSURANCE 19,623 25,808 28,214 FINANCIAL AND OTHER 800 355 6,604 TOTAL OPERATING $ 1,133,064 $ 1,128,156 $ 1,122,913 16 21
OPERATING BUDGET DIVISION OF ADM. & FINANCE PROPOSED ESTIMATED ACTUAL SALARIES, WAGES AND PAYROLL $ 1,536,133 $ 1,598,230 $ 1,525,664 REPAIRS AND MAINTENANCE 34,000 50,063 55,621 MATERIALS AND SUPPLIES 49,528 52,052 53,478 UTILITIES 58,500 52,243 51,331 PROFESSIONAL SERVICES 100,500 137,426 100,564 TRAVEL AND TRANSPORTATION 13,755 38,522 11,487 INSURANCE 16,207 20,909 22,013 FINANCIAL 200 (220) 34,179 TOTAL OPERATING $ 1,808,823 $ 1,949,223 $ 1,854,337 V.I. PORT AUTHORITY MARINE DIVISION OPERATING BUDGET ST. THOMAS/ST. JOHN BUDGETED ESTIMATED ACTUAL SALARIES AND BENEFITS $ 3,688,063 $ 3,408,858 $ 3,110,833 REPAIRS AND MAINTENANCE 570,000 428,132 394,763 MATERIALS AND SUPPLIES 190,700 213,058 159,717 UTILITIES 1,566,500 1,514,501 1,146,288 PROFESSIONAL SERVICES 1,597,800 1,872,874 1,206,032 TRAVEL AND TRANSPORTATION 31,700 37,018 98,560 INSURANCE 1,125,331 1,151,425 742,823 FINANCIAL 1,954,959 1,821,667 2,352,836 ADMINISTRATIVE-ALLOCATED 3,505,293 2,637,104 2,571,266 TOTAL OPERATING $ 14,230,346 $ 13,084,637 $ 11,783,118 ENGINEERING DEPARTMENT PROPOSED ESTIMATED ACTUAL SALARIES, WAGES AND PAYROLL $ 538,291 $ 602,663 $ 610,502 REPAIRS AND MAINTENANCE 13,500 10,741 13,566 MATERIALS AND SUPPLIES 13,750 10,031 10,945 UTILITIES 16,350 14,301 14,776 PROFESSIONAL SERVICES 12,500 5,191 4,464 TRAVEL AND TRANSPORTATION 16,750 16,422 4,372 INSURANCE 9,678 10,912 9,076 FINANCIAL - - 17 TOTAL OPERATING $ 620,819 $ 670,260 $ 667,718 ST. CROIX BUDGETED ESTIMATED ACTUAL SALARIES AND BENEFITS $ 1,422,969 $ 1,469,843 $ 1,464,388 REPAIRS AND MAINTENANCE 157,655 146,879 226,116 MATERIALS AND SUPPLIES 45,182 106,634 23,049 UTILITIES 233,283 255,275 231,401 PROFESSIONAL SERVICES 414,384 429,881 439,513 TRAVEL AND TRANSPORTATION 7,402 7,622 7,988 INSURANCE 620,275 626,889 603,396 FINANCIAL 9,512 36,874 20,491 ADMINISTRATIVE-ALLOCATED 904,238 1,157,704 1,039,284 TOTAL OPERATING $ 3,814,900 $ 4,237,600 $ 4,055,626 20 17
18 ADMINISTRATIVE OFFICES-SUMMARY OPERATING BUDGET 19 DEPARTMENT SUMMARY Executive, Administration & Finance Engineering, Maintenance and Property PROPOSED ESTIMATED ACTUAL SALARIES, WAGES AND PAYROLL $ 8,130,445 $ 6,944,062 $ 6,158,014 REPAIRS AND MAINTENANCE 295,700 300,492 325,552 MATERIALS AND SUPPLIES 347,603 244,952 255,813 UTILITIES 374,975 337,752 348,009 PROFESSIONAL SERVICES 1,126,600 1,186,670 1,360,924 TRAVEL AND TRANSPORTATION 293,755 315,458 167,280 INSURANCE 153,300 169,374 187,123 FINANCIAL AND OTHER 182,550 236,353 105,447 TOTAL OPERATING $ 10,904,929 $ 9,735,113 $ 8,908,162 EXECUTIVE OFFICES PROPOSED ESTIMATED ACTUAL SALARIES, WAGES AND PAYROLL $ 3,661,886 $ 2,273,956 $ 1,674,417 REPAIRS AND MAINTENANCE 96,200 74,602 67,038 MATERIALS AND SUPPLIES 140,125 68,672 50,944 UTILITIES 230,875 199,109 210,006 PROFESSIONAL SERVICES 968,600 1,021,032 1,230,971 TRAVEL AND TRANSPORTATION 239,050 236,766 121,904 INSURANCE 76,737 75,314 89,288 FINANCIAL AND OTHER 165,050 220,357 6 2,818 TOTAL OPERATING $ 5,578,523 $ 4,169,807 $ 3,507,386 OPERATING BUDGET BY DEPARTMENT TOTAL ADMIN. CEKA HERA MARINE MARINE AIRPORT AIRPORT ST. THOMAS ST. CROIX SALARIES AND BENEFITS $ 17,763,686 $ 8,130,445 $ 2,529,239 $ 1,992,970 $ 3,688,063 $ 1,422,969 REPAIRS AND MAINTENANCE 2,580,047 295,700 1,201,201 355,492 570,000 157,655 MATERIALS AND SUPPLIES 991,576 347,603 266,760 141,331 190,700 45,182 UTILITIES 6,003,442 374,975 2,590,013 1,238,671 1,566,500 233,283 PROFESSIONAL SERVICES 3,684,688 1,126,600 356,150 189,753 1,597,800 414,384 TRAVEL AND TRANSPORTATION 422,879 293,755 56,500 33,522 31,700 7,402 INSURANCE 3,681,815 153,300 1,167,919 614,990 1,125,331 620,275 FINANCIAL 2,389,526 182,550 182,500 60,006 1,954,959 9,512 TOTAL 37,517,659 10,904,929 8,350,281 4,626,735 10,725,053 2,910,662 ADMINISTRATIVE-ALLOCATED (10,904,929) 4,210,177 2,332,780 3,430,871 931,101 OPERATING BUDGET 2006 $ 37,517,659 $ - $ 12,560,458 $ 6,959,515 $ 14,155,923 $ 3,841,763