Dec. 20, 2007 –- There isn't $25 million in cash reserves that can be utilized as a subsidy to the V.I. Water and Power Authority, according to Office of Management and Budget Director Debra Gottlieb.
Earlier this month, Sen. Basil Ottley Jr. sponsored an amendment to an unrelated bill attempting to take the money out of the government's cash reserves — money in the bank — which members of the governor's financial team recently said totaled upwards of $200 million. (See "Proposal to Pay WAPA $25 Million Falls Short in Senate.")
In a statement Thursday, Gottlieb said the cash reserves are already obligated.
"The current revenue collections are substantially lower than the already approved expenditures approved by the Legislature and made law when the governor signed the budget," Gottlieb explained.
Gottlieb said the government simply does not have $25 million of un-obligated money to subsidize WAPA. "Every dollar represented in the cash balance is needed to address already approved expenditures," she said.
"It is important to once again underscore the importance of some definitive action by the Legislature on the governor’s property tax proposal, which is key to providing the revenues needed to balance the current budget," Gottlieb added.
Mindful of WAPA’s cash flow crisis, at the governor’s direction the OMB this week released $2 million against the government’s outstanding debt to the public utility, and the commissioner of finance has released payment of $900,000 owed to WAPA for street lighting and potable water.
"The administration continues to work with WAPA to develop a strategy by which all past due monies owed WAPA for electrical and potable water services are paid. As we continue to work towards resolution of these and other matters within WAPA, it is important to focus on realistic approaches and not to create unrealistic expectations," Gottlieb said.
WAPA spokeswoman Cassandra Dunn confirmed that WAPA had received the $900,000 payment for water and streetlights, which she believes represents some or all of the mandated allotment from property tax revenues. Under the V.I Code, two percent of property tax revenues are earmarked for WAPA under the Potable Water Fund and the Streetlight Fund.
"We did hear on the news and we received a memo today that the governor was releasing $2 million to pay down on accounts receivable for the central government," Dunn said. "We did not receive a check today, but we did get assurances the money would be released in the first quarter of fiscal year 2008." The fiscal year began in October and the first quarter ends Dec. 31, so WAPA anticipates receiving the payment by the end of the calendar year. She said the payment is to be split, with $1,260,654 to St. Thomas and $739,346 for St. Croix.
"We are grateful," she said. "The governor not too long ago said he was committed to paying down on the government's bill and this is in keeping with his commitment to keep paying down the outstanding debt."
As of Dec. 12, the government and its autonomous agencies, such as hospitals, had outstanding water and electricity bills totaling $20,152,792, she said. For just the central government agencies alone the tab was $11,409,063.
Those totals are a snapshot in time and do not reflect money sent in or services provided since Dec. 12, she said.
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