Governor Albert Bryan, Jr. convened the annual meeting of the Virgin Islands Public Finance Authority’s Board of Directors on February 12, 2025. Finance Commissioner Kevin McCurdy, Office of Management and Budget Director Julio Rhymer, Secretary Keith O’Neale, and Attorney Dorothy Isaacs attended the meeting. The Board received annual reports from its investment advisors, legal and government relations consultants, its subsidiaries, the West Indian Company (WICO), the Virgin Islands Next Generation Network (viNGN), the management of the Virgin Islands Public Finance Authority (VIPFA) and the Office of Disaster Recovery (ODR).
During its 2024 market review, Causey Public Finance, LLC representatives provided relevant information on the adjustments in the U. S. Federal Reserve’s monetary policy and their impact on the fixed-income market. Three rate cuts in 2024 totaled 75 basis points, contributing to a rising yield and an unfavorable market. The investment advisors stressed that the maturing securities place the VIPFA in a strong position to reinvest. In 2024, the approximate dollar value earnings of the aggregate portfolio (debt service reserve fund, debt service fund, project, and construction fund accounts) for the VIPFA are $6,401,212.
The Annual reports from Squire Patton Boggs (US) LLP and Winston and Strawn LLP carefully laid out the relationships established within their respective firms to Congress and the White House. It was apparent that both entities valued the close collaboration between them and others to achieve and deliver policy outcomes for the Virgin Islands. Squire Patton Boggs highlighted its work on the Rum Cover Over and a working group effort to secure a permanent extension.
Other budgetary matters regarding federal programs include extending funds for the USVI State Historical Office to complete historical projects and lobbying various federal departments and agencies for relief on the Virgin Islands’ energy costs and advocating for the Virgin Islands’ removal from the European Union’s blacklist. Winston and Strawn presented to the board that it assisted in preparing earmarks (FY 2025 – $2, 426,000), and presentation of the congressional Community. They provided legislative and administrative assistance on “expanded Community Disaster Loan borrowing; Water and Power Authority (WAPA) related matters; limitations on Medicaid payments to the Territory; rum cover-over; and the federal bond guarantee initiative.”
The Board of Directors also received an updated Annual report from Stephan Adams, President and Chief Executive Officer of Virgin Islands Next Generation Network (viNGN), regarding the finances and operations of viNGN. Adams shared that viNGN was awarded an NTIA Digital Equity (Opportunity) Capacity grant for $2.1M and applied for an NTIA Digital Equity Competitive grant for $2.5M. Recovered over $702,000 in FEMA reimbursements from October 2023 to January 2025 for several projects.
The West Indian Company, Ltd. (WICO) annual report was presented by Anthony Ottley, Interim President and CEO, who shared that the company’s financial outlook is promising due to its FY 2024 accomplishments. “WICO continues to” bounce back in 2024, which turned out to be a good year for WICO. As we continued to bounce back following the COVID-19 global pandemic, the company saw an 8 percent increase in cruise ship arrivals and 20 percent more passengers than in FY 2023. We just met our projections from last year.”
Nathan Simmonds, PFA Director of Finance and Administration, led the Authority’s presentation on its accomplishments for FY 2024. The Rum Cover-over funds received for FY 2025 were $181,068,638 at $10.50 per proof gallon. PFA continues to work with the Delegate and our Washington Team to get the cover-over extension to $13.25 per proof gallon passed through Congress. Completed the FY 2022 Audits for Subsidiary Units, and the FY 2022 PFA Audit is currently under final review.
Audits are posted on the Authority’s website and can be seen at this link: https://usvipfa.com/wpcontent/uploads/2024/02/2021-PFA-Audited-Financials.pdf.
The Office of Disaster Recovery was represented by Executive Director Adrienne Williams-Octalien, who delineated key accomplishments, including the Biden-Harris Administration increase in the Federal Cost Share, FEMA FCO Projects approved by the September 30, 2024 deadline, Multi-Program Funded Full Completion of the Walter IM Hodge Community—248 Units, and achieving 2024 milestones to establish the Super PMO and issue schedule solicitations.
