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Tinian officials press finance and CUC MOU on prepaid utilities, arrears and Valley Inn account
Summary
Committee and Tinian officials discussed utility funding mechanisms, a cash‑management MOU with the utility (CUC) to clear arrears and whether Valley Inn utilities are included in the clearance plan; the secretary of finance confirmed municipal utility arrears were addressed up to 09/30/2024 in the MOU.
Tinian officials and the House Ways and Means Committee discussed municipal utility funding, a memorandum of understanding with the Commonwealth Utility Corporation (CUC) to clear arrears, and which municipal accounts the agreement covers.
Secretary of Finance Tracy Norita told the committee that the central government included $150,545 to clear certain municipal arrears under an MOU negotiated with CUC, and that the figure in the status worksheet reflected balances “after 09/30/2024.” “That amount has not been included in the MOU. The amounts that were included were only as of 09/30/2024,” she said when discussing current balances and the MOU’s scope. She also told the mayor that Valley Inn arrears are included in the items to be cleared under that agreement.
Tinian Mayor Edwin Piaudon and committee members discussed how the municipality prioritizes prepaid utility accounts (Mayor’s office said many municipal departments are on prepaid) and the practical effect of a proposed $250,000 utilities allocation in the governor’s proposal versus the mayor’s $384,000 request. OMB representative Vicky Villegomis explained OMB prioritizes payments for prepaid utility accounts when funds are available.
The committee and witnesses also discussed CUC’s policy that accounts with arrears are ordinarily ineligible to transition to prepaid status; the MOU’s arrears‑clearance component was described as intended to enable government accounts to move to prepaid arrangements and avoid service interruptions. The secretary of finance said a status report to the court on arrears and transition plans may be required in the context of prior court‑ordered utility proceedings.
No formal policy change or vote was taken; committee members asked finance and OMB to provide documentation and numbers on account balances, and the mayor said Tinian staff will work with Saipan finance staff to clarify unclear revolving‑fund balances.
