Challenges in Timely Payments Highlighted at Virgin Islands Government Meeting

During a recent meeting of the Virgin Islands Legislature's Committee on Government Operations, Veterans Affairs, and Consumer Protection, officials addressed ongoing issues with timely payments related to waste management and utility services. The discussion underscored the critical need for efficient financial management as the territory grapples with cash flow constraints.

A representative noted the difficulties in processing payments for waste management hospital accounts, emphasizing the importance of maintaining relationships with the Office of Management and Budget (OMB) and the Department of Finance to expedite collections. "Every dollar counts in our tenuous cash flow position," the official stated, highlighting the urgency of timely payments to avoid reliance on government subsidies.

The meeting also touched on the Virgin Islands Water and Power Authority (WAPA), with inquiries about the balance of the generating and infrastructure fund. However, officials admitted they did not have the current fund balance available. It was revealed that over the past three fiscal years, funds from the gasoline tax have been allocated to a trustee for bond payments, specifically for infrastructure improvements, including the acquisition of generators.

The Public Services Commission (PSC) raised concerns about not receiving assessment payments from WAPA for several years, which could hinder their regulatory capabilities. PSC Director Sandra Satori pointed out that without these assessments, the commission's ability to enforce compliance is compromised. WAPA's CEO acknowledged the challenges in making these payments, stating that the priority remains on providing essential services to the public.

The discussion concluded with a commitment from WAPA to work towards fulfilling its obligations to the PSC, while also addressing the pressing needs of its operations. The PSC plans to incorporate findings from an upcoming Ernst & Young report into its regulatory framework, aiming to establish new performance metrics for WAPA.

As the Virgin Islands continues to navigate its financial landscape, the emphasis on timely payments and effective management remains crucial for the sustainability of essential services.