ST. THOMAS, VI - The Committee on Budget, Appropriations, and Finance, led by Senator Novelle E. Francis, Jr. met in the Earle B. Ottley Legislative Halll to receive testimony regarding proposed Fiscal Year 2027 budgets from the Magens Bay Authority, West Indian Company Limited, and Virgin Islands Port Authority. 

Magens Bay Authority General Manager Monique Simon presented the entity's Fiscal Year 2027 proposed operating budget of $4,321,592.41. Personnel and employee-related expenses make up approximately 56 percent of total expenditures, supporting 62 staff members alongside four active vacancies for a lifeguard, custodian, groundskeeper, and comptroller. Operating without reliance on General Fund appropriations, the Authority finances its operations through self-generated revenues including gate admissions, parking fees, facility rentals, and commercial concession partnerships. 

The testimony noted that 303,388 visitors arrived in the territory during the first quarter of 2026, with 246,772 entering St. Thomas. Capital accomplishments included completing the $1.8 million reconstruction of Bath House #1, funded 98 percent by FEMA and set for final completion by late September 2026. Additional major achievements include the full rehabilitation of Shed #1, expanded park seating, general grounds upgrades, hosting the 15th Annual King of the Wings event with over 4,800 attendees, and conducting American Red Cross safety training for lifeguard staff. Environmental pressures include invasive vegetation, flooding, severe weather events, and increasing sargassum weed accumulation along the shoreline. Operationally, the Authority faces ongoing friction managing visitor volumes during peak cruise periods, mitigating traffic congestion, maintaining aging infrastructure, and executing capital improvements without disrupting daily public beach access. 

West Indian Company Limited President and Chief Executive Officer Joseph Boschulte presented the entity's Fiscal Year 2027 projected total operating revenues of $11.52 million, including $9.5 million in cruise passenger revenue, alongside total operating expenses of $6.86 million. Personnel costs account for 54 percent of the operating budget to support 33 current employees and two open positions, while operational costs make up the remaining 46 percent. Net operating income is projected at $3.05 million, with earnings before interest, taxes, depreciation, and amortization estimated at $4.65 million. To satisfy its outstanding Payment in Lieu of Taxes obligations to the Government of the Virgin Islands, WICO issued a $100,000 PILOT  payment for Fiscal Year 2026. 

Major operational accomplishments include WICO’s primary role in driving territory-wide cruise tourism. The facility currently handles more than 53 percent of the Virgin Islands' cruise passenger arrivals and 74 percent of total port calls. According to theFlorida-Caribbean Cruise Assosciation economic impact study, cruise tourism in the Territory generated over $258 million in passenger expenditures and $124 million in employee wages. During the first quarter of 2026, the Territory welcomed 831,690 cruise passengers and earned three Caribbean Travel Awards, including Caribbean Cruise Destination of the Year. Looking forward to Fiscal Year 2027, WICO projects 362 scheduled vessel calls and 1.2 million passenger arrivals, including maiden calls from five new ships: Carnival Festivale, Carnival Firenze, Explora III, Norwegian Aura, and Seven Seas Prestige. Additionally, the testimony outlined significant operational challenges, centered on acute berthing capacity constraints. Rising global cruise demand and larger vessel sizes have forced WICO to turn away prospective cruise calls due to lack of dock space. To mitigate these issues, WICO is prioritizing negotiations for long-term berthing agreements with major cruise lines, expanding local infrastructure, and working with regional industry associations. 

Virgin Islands Port Authority Interim Executive Director Ava Penn and Director of Engineering, Preston Beyer presented the entity's budget which stands at $212.3 million, allocating $136.7 million to capital investments, $73.0 million to operating expenditures, and $2.6 million to debt service. Through June 30, 2026, VIPA generated $73.4 million in operating revenues against $47.5 million in operating expenses. Total year-to-date spending of $59.4 million across operations and capital outlays was heavily weighted toward personnel at 46.3 percent, followed by capital outlays, professional services, insurance, utilities, and maintenance. 

VIPA welcomed approximately 2 million cruise passengers across 661 vessel calls, generating $22.4 million in passenger-related revenue, while cargo vessel calls reached 7,448 and generated $5.6 million. VIPA is actively managing 24 federal grant awards totaling more than $152 million, alongside $47.4 million in legislative appropriations for major projects such as the Charlotte Amalie Harbor Dredging, the St. John Multipurpose Facility, and various dock rehabilitations. Additionally, VIPA advanced negotiations with SkyCity VI for a public-private partnership to redevelop and manage the territory's two airports, while Crown Bay Destinations is set to take over daily operations of the Crown Bay Redevelopment in November 2026. Despite strong revenue performance, the Authority faces notable operational and financial challenges. VIPA currently has 84 vacant positions representing approximately 20 percent of its authorized workforce, with critical shortages in airport firefighting, port police, security, engineering, and finance that account for over $3.2 million in unspent salary value. Operationally, the loss of Silver Airways, Frontier Airlines, and Spirit Airlines contributed to an 8 percent drop in flight departures and a 12 percent drop in passenger arrivals through June 2026, while four of VIPA's six collective bargaining agreements are set to expire on September 30, 2026. 

Senators present at today’s committee hearing were Novelle E. Francis Jr., Marvin A. Blyden, Dwayne M. DeGraff, Ray Fonseca, Kenneth L. Gittens, Hubert L. Frederick, Marise C. James, Franklin D. Johnson, Carla J. Joseph, Clifford A. Joseph, Avery L. Lewis, Milton E. Potter, and Kurt A. Vialet. 

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