The V.I. Waste Management Authority is struggling under $41.3 million in outstanding bills, including $9 million owed to a critical landfill contractor, as delayed government funding, an ongoing operating deficit and federal restrictions threaten garbage collection and major landfill projects across the territory.
The financial difficulties have already disrupted services. In October, a contractor temporarily suspended garbage collection at eight bin sites on St. Thomas because of nonpayment, WMA Executive Director Hannibal “Mike” Ware told lawmakers Tuesday during a hearing of the Senate Committee on Housing, Transportation, and Telecommunications. The interruption was subsequently resolved, but the authority's underlying payment problems remain.
The authority's $41.3 million in accounts payable, reported as of October 31, includes longstanding obligations that WMA says it cannot eliminate under its existing funding structure.
Questioned by Senator Carla Joseph about the authority's debts, Mr. Ware acknowledged that WMA was “kinda not” paying down its outstanding obligations at a sustainable pace.
Even after $3 million from the Budget Stabilization Fund was used to pay a contractor that services the territory's landfills, that vendor remains owed approximately $9 million.
“There is no way that we could dig out from that. These are legacy debts; a lot of it, most of it, stemming from the hurricane,” Mr. Ware stated. “That's part of what keeps us in a constant budgetary hole, because we keep going backwards.”
The situation is compounded by delays in receiving government allotments, which Mr. Ware said are running three to four months behind schedule.
He told Senator Ray Fonseca that when the authority finally receives one or two outstanding allotments, much of that funding must immediately be directed toward previously unpaid expenses, leaving WMA waiting again for additional funds.
The authority's annual operating costs average approximately $58.4 million, while government funding amounts to just under $40 million and tipping fees generate approximately $3.5 million. That leaves WMA facing an annual funding gap of roughly $15 million.
One potential source of relief is Governor Albert Bryan Jr.'s proposed $250 million bond-financing package, which includes $40 million for WMA to address outstanding obligations and stabilize operations. The financing requires legislative approval and has not yet provided the authority with those funds.
Meanwhile, WMA continues pursuing new revenue sources intended to reduce its dependence on government appropriations.
As The Consortium previously reported, the authority is proposing a $19.95 monthly residential solid waste collection fee, projected to generate approximately $8.5 million annually.
The revenue would support garbage collection, vehicle replacement, maintenance, fuel, recycling, litter enforcement and other operational needs.
A separate tourism-based environmental stewardship fee of $3 per occupied hotel or short-term rental room-night could generate an estimated $2.8 million annually.
WMA is awaiting a hearing before the Public Services Commission on the proposals, with Mr. Ware expressing hope that they will be included on the December agenda.
Senator Kurt Vialet, who highlighted the authority's approximately $15 million annual deficit, urged the commission to act quickly.
“If they don't stop dragging their feet, we gonna just have the same issue over and over and over,” Mr. Vialet lamented.
Another potential revenue measure involves replacing and calibrating landfill scales so that tipping fees can be assessed based on the weight of discarded material rather than volume. Mr. Ware described the proposed approach as more transparent and said it could generate approximately $2 million in additional annual revenue.
Beyond its immediate financial difficulties, WMA is confronting major obstacles to its long-term infrastructure plans.
The July 20 suspension imposed by the U.S. Department of Housing and Urban Development on the Virgin Islands Housing Finance Authority continues to delay WMA projects dependent on disaster recovery funding administered through VIHFA.
Affected projects include the Anguilla Landfill Phased Closure and Southeast Fill Area on St. Croix, along with planned convenience centers in Red Hook, Smith Bay, Susannaberg and Bournefield. The Cancryn project also remains on hold pending clarification of its funding and authorization status.
According to Mr. Ware, the suspension has delayed approvals, procurement, payment processing and construction planning.
The restrictions are particularly consequential for the Anguilla Landfill, which the executive director acknowledged has “essentially reached its current disposal capacity.”
WMA is seeking approval from Coastal Zone Management for a four-year extension that would allow the landfill to continue accepting waste while longer-term solutions are developed.
However, the larger closure and expansion project remains stalled because of the CDBG-DR funding suspension.
Senator Clifford Joseph questioned what alternatives would be available if the requested extension is denied.
Chief Engineer Alex Bruney did not identify an immediate alternative but stressed the necessity of constructing a new landfill before Anguilla reaches its final capacity.
On St. Thomas, WMA is pursuing the closure and expansion of the Bovoni Landfill while seeking to reduce the volume of material requiring disposal.
One planned measure is the use of air curtain incinerators to process green waste beginning in January 2027. Mr. Ware said the authority has undertaken public education efforts to support its waste-diversion initiatives.
Both landfills have exceeded their intended useful lives, adding urgency to efforts to develop sustainable disposal capacity and meet federal environmental requirements.
For WMA, the challenges are intertwined: existing debts threaten payments to essential contractors, delayed allotments restrict day-to-day operations, proposed fees remain subject to regulatory approval, and federal funding restrictions prevent major infrastructure work from advancing.
Until those issues are resolved, the authority remains dependent on short-term financial measures to maintain essential waste collection and disposal services throughout the Virgin Islands.
