Committee approves bill to raise Port Authority bonding cap from $100M to $500M, votes 5–1–1

The Committee on Budget, Appropriations and Finance voted to approve bill 36-0038 on March 18, 2025, which would amend Title 29, Chapter 10, Subchapter 3, §551(a) to raise the outstanding bond limit for the Virgin Islands Port Authority from $100,000,000 to $500,000,000.

Executive Director Carlton Dow and financial adviser Larry Balinski (Frasca & Associates) told senators the increase is intended to provide the authority with flexibility to finance significant marine capital needs — including dredging, terminal upgrades and predevelopment work tied to anticipated cruise and cargo growth — and to avoid returning frequently to the legislature for incremental authority as large projects emerge. Dow emphasized that raising the cap does not automatically mean the authority will issue bonds up to that limit; the authority will only issue debt it can afford to repay and must satisfy bond‑issuance criteria and coverage tests. The authority’s marine revenues (pledged to marine debt service) and tariff structures would be central to any capacity to carry debt.

Dow said the current outstanding debt is approximately $23 million and that the $100 million cap was set in 1988. He noted growing cruise activity — projections reaching roughly 595 cruise ship visits for fiscal 2025 and substantial passenger growth in St. Croix — and discussed projects such as dredging and a proposed customs facility. Financial adviser Balinski explained that a larger statutory cap demonstrates to the bond market that the authority has the option to pursue larger financings in the future and that rating agencies assess project risk, revenue pledges and service coverage ratios when evaluating bond creditworthiness.

Committee members asked about revenue streams, pledge structures, and whether the authority would commit aviation revenues (it would not; aviation revenues are restricted by federal rules), and how proposed projects would be phased. Senator Hubert L. Frederick cast the lone “no” vote; the clerk recorded a committee tally of 5 in favor, 1 opposed and 1 absent. The committee voted to forward the bill to Rules and Judiciary for additional review.

Ending: The bill passed committee and will move to Rules and Judiciary; Port Authority indicated additional project‑level planning and documentation will be needed before any bond issuance.