During Friday’s monthly board meeting, Port Authority staff discussed collection efforts, the need to approve an emergency order for air conditioning units, marine fee increases, and approved action items.
Regarding finances, according to Ava Penn, acting property manager and director of financial affairs, on an accrual basis as of July 31, the Port Authority incurred a $7.1 million operating profit. After sharing her report with the board, board member Celestino White inquired about parking fees. Penn shared that $1.3 million was collected in aviation parking lot fees and $1.5 million in marine parking lot fees as of July 31. White specifically inquired about the use of the parking meters by the Blyden IV Marine Terminal on St. Thomas.
Joseph Cranston Jr., marine manager for the St. Thomas-St. John district informed White that the meters are no longer active.
It was mentioned during the meeting that as of Aug. 31, 53 accounts are in arrears, totaling $5,123,367.61. Of that, $3,258,983.42 is owed in rent and $1,891,145.60 in operations.
“A lot of people have been responding, telling us whether they have paid or not. Some people didn’t even know that they owed and some of the notices go out to other individuals in the organization,” said Penn.
Board Chair Willard John asked if there was someone specifically assigned to collect money owed.
“The accounts receivable analysts in accounting, they deal with the operational side, and property management deals with the rental side,” responded Penn.
Board member Derek Gabriel inquired if there is a formal procedure established for collections.
“We have a process on the property side. Where we’re lagging is on the operational side,” said Penn.
In addition, the board approved fee increases related to pilotage to the marine tariff fees authorized at its Aug. 20 board meeting, and removed the following: “for vessels under 1600 gross registered tons that do not take a pilot, pilotage will be assessed on the draft and GRT rate and have no minimum unless a pilot is on board.”
“VIPA is continuously looking at ways to increase revenues to fund much-needed infrastructure improvements,” said Penn.
At last month’s board meeting, marine fee increases were approved and centered mostly on docking, parking and passenger wharfage fees. During Friday’s meeting, the board unanimously approved additional fee increases recommended are related to pilotage fees, which will be announced at public hearings during the first week of October.
“The last time those fees were adjusted was 2020,” said Penn, who added that the fees are adjusted every five years.
The board also unanimously voted to approve an emergency purchase of an $85,000 air conditioning unit for building A at the Crown Bay center. Currently, $75,000 is the maximum allotment for emergency purchases. Gabriel mentioned that the board should consider increasing the purchasing threshold for emergency purchases so as to avoid waiting until board meetings to discuss emergency issues.
After the vote, Executive Director Dowe addressed the current air conditioning issues at the Port Authority building and the airport. Board meeting attendees could be seen using hand fans and papers to try and keep cool during the three-hour-long meeting.
“It’s a bigger problem at King Airport that we’re working on,” said Dowe, who added that the units are “plagued with all kinds of issues.”
Lastly, regarding finance, the board unanimously approved the 2026 fiscal year budget for $212.6 million. The board also unanimously approved a lease agreement with Southwest Airlines for their Orlando and Baltimore flights.
White inquired about the airline connecting with other Caribbean islands. Anise Hodge, assistant director, said at this time they are focusing on consistent airlift from St. Thomas, and she encouraged people to utilize current flights to “drive” the ability for them to go to other destinations.”
Dowe later added that 850,000 passengers on St. Thomas and 250,000 passengers on St. Croix can be expected to utilize the airport next year.
Board members John, Gabriel, Gordon Rhea, Leona Smith, and White were present. Jennifer Matarangas-King and Kevin Rodriguez were absent.
St. Croix Source
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