Government

“Our Expenses Have Quadrupled”: PFA Raises Annual Administrative Fee to $7.5 Million

The V.I. Public Finance Authority’s board unanimously approved a 50 percent increase in its annual administrative fee Thursday, raising the amount from $5 million to $7.5 million as officials cited mounting legal expenses and the demands of a larger disaster recovery operation. The October 1 decision increases that source of operating support by $2.5 million for fiscal year 2027. The fee is funded through the territory’s gross receipts tax revenue and provides an annual contribution toward running the authority. Staff presented the change as an amendment to Resolution No. 18-027, intended to adequately fund operations under the board-approved budget. In explaining the request, PFA staff pointed to continuing increases in expenses, particularly legal costs associated with projects, and the pressure those costs have placed on the administrative budget. The fee increase would expand an existing source of funding available to meet those obligations. Board Secretary Keith O’Neale Jr. sup...