USVI Public Records

Document text

## Slide 1 MARCH 20, 2026 2026 SPRING REVENUE CONFERENCE ## Slide 2 MARCH 20, 2026 2026 SPRING REVENUE ESTIMATING CONFERENCE ## Slide 3 To administer and enforce the tax laws of the Virgin Islands. MISSION STATEMENT STRATEGIC GOALS To promote voluntary compliance with the internal revenue tax laws To collect the tax revenues owed to the Government of the Virgin Islands. ## Slide 4 GENERAL FUND COLLECTIONS (Fiscal Years 2022 - 2026) ## Slide 5 GENERAL FUND COLLECTIONS (Fiscal Years 2022 - 2026) ## Slide 6 GENERAL FUND COLLECTIONS (Fiscal Years 2022 - 2026) ## Slide 7 SPECIAL FUND COLLECTIONS (Fiscal Years 2022 - 2026) ## Slide 8 INCOME TAX REFUNDS PAID 2019-2025 $411,479,673.62 UP TO FILE DATE APRIL 9, 2024 ## Slide 9 MARCH 20, 2026 2026 SPRING REVENUE ESTIMATING CONFERENCE ## Slide 10 OFFICE OF DISASTER RECOVERY Presented by Adrienne L. Williams-OcatlienDirector ## Slide 11 Objectives Get the Funds Spend the Funds Spend the Funds Correctly Secure the maximum amount of disaster recovery funds required for the Territory to rebuild resiliently. Commence and conclude projects within the required timeframe to guarantee timely processing of Disaster Recovery funds. Ensure projects executed meet all applicable programmatic and regulatory requirements and internal audits are conducted. ## Slide 12 Fiscal 2027 Total Estimated Revenue Key Revenue Drivers and Assumptions FY: 27 Expenditures $733,978,187.30 Highlight 1: 5% Gross Receipt Taxes will be remitted from Disaster Recovery Projects in varying stages from design to construction Highlight 2: Over 40 large scales projects will impact FY27 revenue FY: 27 GRT Revenue $36,698,909.36 Highlight 3:Projects will generate other residual revenue in other taxes, licensing, permits, fees and housing Central High School Rendering ## Slide 13 Key Projects Health & Human Services Governor Juan F. Luis Hospital Schneider Regional Medical Center Donna M. Christensen Medical Complex Knud Hansen Building and Tower John S. Moorehead Complex Queen Louise Home for the Aged Herbert Grigg Home for the Aged Infrastructure St. Croix North Central Horizontal Bundle St. Thomas East Horizontal Advanced Metering Infrastructure Richmond Power Generation Randolph Harley Power Generation Schools Charlotte Amalie High School Bertha C Boschulte School Central High School St. Croix Educational Complex St. Thomas Educational Bundle St. Croix Educational Bundle Other Highlights Envision Tomorrow Program STJ Multi-Sector Bundle Fire Station Bundle ## Slide 14 THANK YOU ## Slide 15 MARCH 20, 2026 2026 SPRING REVENUE ESTIMATING CONFERENCE ## Slide 16 Office of the Lieutenant GovernorDivision of Real Property TaxOffice of the Tax Collector Presented by Brent A. LeerdamTax Collector ## Slide 17 REVENUE BREAKDOWN Revenue Category Interval Revenue Estimate Fiscal Year Current Year Billing June 1, 2026 – August 30, 2026 $34,600,000.00 FY2026 Delinquent Year Invoices Occurs All Year $31,000,000.00 FY2026 Current Year Billing June 1, 2027 – August 30, 2027 $34,600,000.00 FY2027 Delinquent Year Invoices Occurs All Year $31,000,000.00 FY2027 Real Property Tax Total Estimated Revenue Key Revenue Drivers and Assumptions FY: 26 $65,600,000.00 Highlight 1: FY2026 Collections from Current Year Billing - $34.6M Highlight 2: FY2026 Collections from Delinquent Year Invoices - $31M FY: 27 $65,600,000.00 Highlight 3: FY2027 Collections from Current Year Billing - $34.6M Highlight 4: FY2027 Collections from Delinquent Year Invoices - $31M ## Slide 21 Objective To develop a process flow that provides for fair and equitable enforcement in the collection of property taxes. Tightened the regulations that govern real property tax final collection activities to remove fraud potential Provided standardized rules for payment plans and reduced the deposit amount required to start a payment plan Implemented standardized rules for the issuance of a Tax Clearance Certificate ## Slide 22 Onboard a tax management system that both conforms to International Association of Assessing Officers (IAAO) standards and improves our audit response capabilities. Improved our system database for real property tax management to replace outdated systems. Implemented a system that uses standards required in 33 V.I.C. § 2404 Improved our ability to provide detailed reporting to audit entities Objective ## Slide 23 To improve the community impact of Final Collection Activities by advocating for the addition of in rem jurisdiction foreclosure, passed by the Legislature in Act 8466. Provides for foreclosure on properties that have delinquent real property taxes, but not on the individual person or owner Ensures that 75% of properties foreclosed upon will directly benefit first-time homebuyers, veterans, middle & low-to-moderate income, senior citizens or disabled persons. Will greatly reduce ruined properties that may have been abandoned Objective ## Slide 24 Objective To improve the collection record on both current year billing and on delinquent year invoices to reduce our total delinquencies. Developed invoice tracking procedures to improve real property tax collection efforts We plan to offer enhanced payment abilities within this fiscal year on our Citizen Access Portal https://propertytax.vi.gov We will continue to encourage digital access for bill payments and look forward to a large percentage of clients that opt for electronic bill management ## Slide 25 Analysis Total Revenue Projections have increased steadily since FY2019 Largest increase in property tax revenue was in FY2024, after conducting a Final Collection Activity in FY2023 In Rem Jurisdiction Foreclosure Act 8466 will greatly enhance our ability to process Final Collection Activities, while providing a clear path to homeownership for those in need Delinquency collections will continue to rise for the next few years, then will taper off as delinquencies are reduced ## Slide 26 THANK YOU ## Slide 27 MARCH 20, 2026 2026 SPRING REVENUE ESTIMATING CONFERENCE ## Slide 28 Virgin Islands Department of Public Works Presented by Rueben JenningsAssistant Commissioner ## Slide 29 COLLECTIONS VITRAN FY2026 FY2027 TOTAL CEMETERIES PARKING LOTS ABANDONED VEHICLES ADVERTISING SPECIAL PERMITS & DRIVEWAY/EXCAVATION ## Slide 30 $362,782.51 $395,938.32 $262,375.00 $214,528.00 $370,585.72 $460,000.00 $13,468.00 $14,820.00 $66,700.00 $80,310.00 $75,504.25 22,068.00 $1,151,415.48 $1,187,664.32 ## Slide 31 Federal Highway (FHWA) Funded (Annual Allocation) CLIFTON HILL RAPHUNE HILL ## Slide 32 FEDERAL HIGHWAY (FHWA) Backed 2015 GARVEE BONDS FREDERIKSTED ROADS ETHEL MCINTOSH MEM. DRIVE (MAHOGANY ROAD) SPRING GUT ROAD ## Slide 33 FEDERAL HIGHWAY (FHWA) Backed 2025 GARVEE BONDS ST. CROIX/ST. THOMAS FAST FERRY VETERANS DRIVE PHASE 2A SIDNEY LEE ROAD EAST SCENIC ROAD SOUTHSIDE ROAD ## Slide 34 LOCAL/OTHER  FUNDS Emerald Hill Bovoni Road Armstrong Road DeCastro Road Rocky Road Estate Contant-Tranquil Road Coki Point Washington School Road Johnny Horn Trail Cruz Bay Restrooms Bolongo Road Hospital Ground - Bethel Church Road Meader Place Repairs – Retaining Wall Estate Contant STJ Centerline Guardrails Leonardo Trotman Drive Estate Thomas Estate Peters Rest Estate Diamond Ruby Estate Barren Spot North Expansion Estate Strawberry Segments of Midland Road Branded Street Signage ## Slide 35 CAPITAL IMPROVEMENT PROJECTS Department of Human Services - Head Start Projects Department of Human Services - Queen Louise Home for the Aged (Temporary) Charles Seales Fire Station Athalie McFarlane Petersen Library Office of the Governor- New business, Old business & Legal Counsel Department of Finance Renovation VITEMA EOC Renovation Randall “Doc” James Racetrack Department of Public Works VITRAN Building Department of Public Works Temporary Facility Department of Public Works St. John Maintenance Building Department of Planning & Natural Resources Office Building (Old WAPA Location) ## Slide 36 SUMMARY 2026 $63.6 Million $3.18 Million $79.6 Million $3.98 Million 2027 ## Slide 37 REVENUE BREAKDOWN Revenue Category Project Count (If Applicable) Revenue Estimate 2026 Revenue Estimate 2027 VITRAN N/A $360,000.00 $425,000.00 CEMETERIES N/A $196,000.00 $226,000.00 PARKING LOTS N/A $440,000.00 $460,000.00 PERMITS N/A $100,750.00 $87,000.00 ABANDONED VEHICLES N/A $23,400.00 $20,000.00 Fiscal 2026 Total Estimated Revenue Key Revenue Drivers and Assumptions FY: 26 $1,120,150.00 Highlight 1: Additional Buses Highlight 2: Abandoned Vehicle Fee STX collections FY: 27 $1,218,000.00 Highlight 3: Extending operational parking lot hours Highlight 4: [notes] Fiscal 2026 Total Estimated Revenue Key Revenue Drivers and Assumptions 1. Business Compliance and License Renewals Driver: • A significant portion of revenue comes from business license fees, which depend on business renewals and new business registrations. • If businesses comply with renewal deadlines, licensing revenue remains stable or increases. • Declining renewal rates or economic downturns could result in lower revenue collection. Assumption: • The projections assume consistent business activity and a stable number of license renewals over the next two years. • If more businesses fail to renew due to economic conditions, revenue could decrease. 2. Regulatory Enforcement and Penalty Fees Driver: • Penalty fees for delinquencies and CPS, Weights and Measures and Enforcement actions contribute to total revenue, depending on the number of violations and enforcement actions. • The DLCA has engaged stricter enforcement practices including night-time initiatives that will yield increased citations for noncompliance. For the foreseeable future we anticipate that these actions along with improved follow-through via our legal division will lead to increased collections. Assumption: • The projections assume penalty fees will remain relatively stable, with no significant decline in enforcement practices. • If compliance improves, penalty revenues may decline. Conversely, more aggressive enforcement and tighter regulations should lead to higher collections. 3. Economic Growth and Business Expansion Driver: • Economic conditions impact new business formation, affecting license revenue. • A growing economy leads to more business licenses, while a recession could reduce new applications. Assumption: • The projections assume moderate economic stability, with a gradual increase in new business licenses at a 3.1% growth rate. • If economic conditions worsen, business growth could slow, affecting revenue collections. 4. Department Policy and Fee Adjustments Driver: • For more than a decade the DLCA has resisted a wholesale increase in license fees, opting instead for a more targeted approach. Increases in license fees for alcohol related businesses were implemented with no significant retraction of licenses. We anticipate that the time is ripe for some adjustment in license fees, penalties, and payment structures which can directly impact revenue. • An increase in fees, could lead to revenues exceeding current estimates. Assumption: • The projections assume no major changes in licensing fees or penalties. • Any policy changes (such as higher license fees or increased enforcement measures) could increase revenue beyond projections. Conclusion The revenue projections rely on stable business activity, consistent enforcement, economic stability, and unchanged policies. Any unexpected shifts in these factors could lead to higher or lower revenues than forecasted. ## Slide 38 THANK YOU ## Slide 39 MARCH 20, 2026 2026 SPRING REVENUE ESTIMATING CONFERENCE 39 ## Slide 40 BUREAU OF ECONOMIC RESEARCH Dr. Haldane DaviesDirector 40 ## Slide 41 REVENUE BREAKDOWN Revenue Category Project Count (If Applicable) Revenue Estimate Fiscal Year REPORTING Twenty (20) or more reports. $934,553,644 by FY 2027 FY 2022 to 2025 (Actual) – FY 2026 to 2027 (Forecast) USVI Fiscal 2026 Total Estimated Revenue USVI Key Revenue Drivers and Assumptions FY: 26 $929,308,411 Highlight 1: Revenues Highlight 2: Visitor Arrivals FY: 27 $934,553,644 Highlight 3: Workforce Highlight 4: Gross Territorial Product (GTP) 41 The U.S. Virgin Islands’ total estimated GROSS revenues for FY 2026 ($929,308,411) and FY 2027 ($934,553,644) represent the combined collections from the territory’s major tax and revenue sources, including Real Property Taxes, Individual Income Taxes, Corporate Taxes, Excise Taxes, Gross Receipts Taxes, Stamp Taxes, Corporate Franchise Taxes, and Other Revenues. No Transfers-in or Transfers-out included. The Office of Management and Budget will report NET Revenue. [notes] Fiscal 2026 Total Estimated Revenue Key Revenue Drivers and Assumptions 1. Business Compliance and License Renewals Driver: • A significant portion of revenue comes from business license fees, which depend on business renewals and new business registrations. • If businesses comply with renewal deadlines, licensing revenue remains stable or increases. • Declining renewal rates or economic downturns could result in lower revenue collection. Assumption: • The projections assume consistent business activity and a stable number of license renewals over the next two years. • If more businesses fail to renew due to economic conditions, revenue could decrease. 2. Regulatory Enforcement and Penalty Fees Driver: • Penalty fees for delinquencies and CPS, Weights and Measures and Enforcement actions contribute to total revenue, depending on the number of violations and enforcement actions. • The DLCA has engaged stricter enforcement practices including night-time initiatives that will yield increased citations for noncompliance. For the foreseeable future we anticipate that these actions along with improved follow-through via our legal division will lead to increased collections. Assumption: • The projections assume penalty fees will remain relatively stable, with no significant decline in enforcement practices. • If compliance improves, penalty revenues may decline. Conversely, more aggressive enforcement and tighter regulations should lead to higher collections. 3. Economic Growth and Business Expansion Driver: • Economic conditions impact new business formation, affecting license revenue. • A growing economy leads to more business licenses, while a recession could reduce new applications. Assumption: • The projections assume moderate economic stability, with a gradual increase in new business licenses at a 3.1% growth rate. • If economic conditions worsen, business growth could slow, affecting revenue collections. 4. Department Policy and Fee Adjustments Driver: • For more than a decade the DLCA has resisted a wholesale increase in license fees, opting instead for a more targeted approach. Increases in license fees for alcohol related businesses were implemented with no significant retraction of licenses. We anticipate that the time is ripe for some adjustment in license fees, penalties, and payment structures which can directly impact revenue. • An increase in fees, could lead to revenues exceeding current estimates. Assumption: • The projections assume no major changes in licensing fees or penalties. • Any policy changes (such as higher license fees or increased enforcement measures) could increase revenue beyond projections. Conclusion The revenue projections rely on stable business activity, consistent enforcement, economic stability, and unchanged policies. Any unexpected shifts in these factors could lead to higher or lower revenues than forecasted. ## Slide 42 Objectives Objective 1. Objective 2. Objective 3. Objective 4. Enhance the production and timeliness of core economic data. Objective (2026): Publish a reliable schedule for key indicators (e.g., CPI, unemployment, GDP) with at least 90% of reports released on or before target dates. Implement standardized quality checks and revision tracking to minimize errors and ensure consistent methodology. Modernize data integration by 2026 by centralizing administrative datasets and establishing data cleaning and validation procedures. Aim for a unified economic database and complete documentation for major indicators. Expand applied research to aid policy and planning. Objective (2026): Produce four key policy research products with clear findings and actionable recommendations for budgeting and planning. Objective for 2026: Improve transparency by launching a public data portal for easier access to economic information. Aim for a 25% increase in report downloads and stakeholder satisfaction. All data is subject to revision. 42 ## Slide 43 USVI Gross Revenue Forecast FY 2023 to 2025 (Actual) – FY 2026 to 2027 (Forecast) A consistent upward trend in the gross revenues of the US Virgin Islands (USVI) from fiscal year 2022 to fiscal year 2027. Revenues rise from approximately $849.2 million in 2022 to $862.3 million in 2025, with a slight dip in 2023 but overall stable growth. The forecast indicates revenues of $866.4 million in 2026 and $870.7 million in 2027, reflecting moderate fiscal strengthening. This pattern suggests a maturing revenue base supported by sustained economic activity and stable tax performance. All data is subject to revision. Note: Actuals compiled from DOF at https://dof.vi.gov/ Note: This chart includes the Big Five revenue generators: Real Property, Individual Income, Corporate Taxes, Excise, and Gross Receipts, which together represent the primary sources of government revenue. No Transfers-in or Transfers-out included. [notes] Key Observations Steady Growth Trend The total revenue has increased each year, showing a consistent upward trend. The most significant increase occurred from FY 2021 to FY 2022, where revenues rose from $3.85 million to $4.51 million (a 17.4% increase). This growth suggests an expansion in business licensing activities, possibly due to economic recovery, increased enforcement, or new business registrations. Stabilization After FY 2022 The revenue increase slowed after FY 2022, with marginal growth in FY 2023 (0.5%) and FY 2024 (0.8%). This indicates that the licensing market has matured, with fewer new businesses entering and renewals stabilizing. Impact of External Factors The growth in FY 2022 may have been influenced by post-pandemic economic recovery, as businesses resumed normal operations. Regulatory changes or enforcement improvements may have contributed to better compliance and higher collections. Projected Growth Moving Forward The average annual growth rate across these years is 3.1%. If this trend continues, revenues are expected to increase gradually rather than exhibit sharp growth spikes. ## Slide 44 USVI Net Revenue Forecast FY 2022 to 2025 (Actual) – FY 2026 to 2027 (Forecast) Because the chart excludes Transfer-Out, it should be interpreted as a partial or adjusted revenue view rather than total revenue. The net revenue trend for the US Virgin Islands (USVI) shows steady growth from $878.3 million in 2023 to a peak of $901.5 million in 2025. However, forecasts project a sharp drop to $873.9 million in 2026, followed by a partial rebound to $896.7 million in 2027. This suggests that the recent upward momentum may fluctuate due to anticipated economic pressures, leading to a temporary weakening of revenue before stabilizing at a lower growth rate. All data is subject to revision. 44 Note: Actuals Provided by OMB ## Slide 45 USVI Visitor Arrivals Forecast FY2022 to 2025 (Actual) - FY2026 to 2027 (Forecast) The US Virgin Islands (USVI) visitor arrivals fluctuated significantly from 2015 to 2027, largely due to cruise travel. After peaking at 2.7 million in 2015-2016, arrivals fell to 769,492 in 2021 due to disruptions. However, air arrivals rebounded, and total arrivals reached 2.35 million in 2023, projected to stabilize around 2.5 million by 2026-2027. All data is subject to revision. 45 [notes] Key Observations Steady Growth Trend The total revenue has increased each year, showing a consistent upward trend. The most significant increase occurred from FY 2021 to FY 2022, where revenues rose from $3.85 million to $4.51 million (a 17.4% increase). This growth suggests an expansion in business licensing activities, possibly due to economic recovery, increased enforcement, or new business registrations. Stabilization After FY 2022 The revenue increase slowed after FY 2022, with marginal growth in FY 2023 (0.5%) and FY 2024 (0.8%). This indicates that the licensing market has matured, with fewer new businesses entering and renewals stabilizing. Impact of External Factors The growth in FY 2022 may have been influenced by post-pandemic economic recovery, as businesses resumed normal operations. Regulatory changes or enforcement improvements may have contributed to better compliance and higher collections. Projected Growth Moving Forward The average annual growth rate across these years is 3.1%. If this trend continues, revenues are expected to increase gradually rather than exhibit sharp growth spikes. ## Slide 46 USVI Workforce Forecast FY2022 to 2025 (Actual) - FY2026 to 2027 (Forecast) The workforce has grown significantly from 2022 to 2023, increasing by about 600 to 700 workers. From 2023 to 2025, growth is expected to slow to an annual increase of 100 to 400 workers. By 2027, the workforce is projected to reach around 41,350, up from about 39,400 in 2022, marking an increase of about 2,000 workers. However, projections for 2026 and 2027 are uncertain, as much of the growth is linked to recovery efforts in the US Virgin Islands. All data is subject to revision. Note: Actuals compiled from DOL at https://www.vidol.gov/ 46 [notes] Key Observations Steady Growth Trend The total revenue has increased each year, showing a consistent upward trend. The most significant increase occurred from FY 2021 to FY 2022, where revenues rose from $3.85 million to $4.51 million (a 17.4% increase). This growth suggests an expansion in business licensing activities, possibly due to economic recovery, increased enforcement, or new business registrations. Stabilization After FY 2022 The revenue increase slowed after FY 2022, with marginal growth in FY 2023 (0.5%) and FY 2024 (0.8%). This indicates that the licensing market has matured, with fewer new businesses entering and renewals stabilizing. Impact of External Factors The growth in FY 2022 may have been influenced by post-pandemic economic recovery, as businesses resumed normal operations. Regulatory changes or enforcement improvements may have contributed to better compliance and higher collections. Projected Growth Moving Forward The average annual growth rate across these years is 3.1%. If this trend continues, revenues are expected to increase gradually rather than exhibit sharp growth spikes. ## Slide 47 USVI Gross Territorial Product (GTP) Forecast FY2022 (Actual) - FY2026 to 2027 (Forecast) From 2022 to 2027, GDP is projected to grow from 4,672 to 5,668, representing a 21.3% increase with a compound annual growth rate (CAGR) of 3.9%. Yearly increases will vary, with the largest gain expected in 2027 at $239 million. GDP is anticipated to surpass 5,000 in 2024, with average annual growth of around $199 million and growth rates ranging from 2.8% to 4.9%. All data is subject to revision. 2022 2023(F) 2024(F) 2025(F) 2026(F) 2027(F) Please note that this forecast has been generated based on the trends indicated by the actual Gross Domestic Product (GDP or GTP) calculations conducted by the U.S. Bureau of Economic Analysis (BEA). It is important to clarify that this does not represent the official GDP calculation. 47 [notes] Key Observations Steady Growth Trend The total revenue has increased each year, showing a consistent upward trend. The most significant increase occurred from FY 2021 to FY 2022, where revenues rose from $3.85 million to $4.51 million (a 17.4% increase). This growth suggests an expansion in business licensing activities, possibly due to economic recovery, increased enforcement, or new business registrations. Stabilization After FY 2022 The revenue increase slowed after FY 2022, with marginal growth in FY 2023 (0.5%) and FY 2024 (0.8%). This indicates that the licensing market has matured, with fewer new businesses entering and renewals stabilizing. Impact of External Factors The growth in FY 2022 may have been influenced by post-pandemic economic recovery, as businesses resumed normal operations. Regulatory changes or enforcement improvements may have contributed to better compliance and higher collections. Projected Growth Moving Forward The average annual growth rate across these years is 3.1%. If this trend continues, revenues are expected to increase gradually rather than exhibit sharp growth spikes. ## Slide 48 USVI Inflation Rate FY2018 to 2025 (Actual) - FY2026 to 2027 (Forecast) Inflation in the U.S. Virgin Islands has varied over time but is expected to rise moderately through 2026 and 2027, according to forecasts. Inflation will likely increase over the next two years, which may lead to higher costs across the territory. Rising consumer prices. Increased demand for goods compared to supply. Higher import costs, typical for island economies. Ongoing economic activity is pushing prices higher. All data is subject to revision. 48 [notes] Key Observations Steady Growth Trend The total revenue has increased each year, showing a consistent upward trend. The most significant increase occurred from FY 2021 to FY 2022, where revenues rose from $3.85 million to $4.51 million (a 17.4% increase). This growth suggests an expansion in business licensing activities, possibly due to economic recovery, increased enforcement, or new business registrations. Stabilization After FY 2022 The revenue increase slowed after FY 2022, with marginal growth in FY 2023 (0.5%) and FY 2024 (0.8%). This indicates that the licensing market has matured, with fewer new businesses entering and renewals stabilizing. Impact of External Factors The growth in FY 2022 may have been influenced by post-pandemic economic recovery, as businesses resumed normal operations. Regulatory changes or enforcement improvements may have contributed to better compliance and higher collections. Projected Growth Moving Forward The average annual growth rate across these years is 3.1%. If this trend continues, revenues are expected to increase gradually rather than exhibit sharp growth spikes. ## Slide 49 THANK YOU All data is subject to revision. 49 ## Slide 50 MARCH 20, 2026 2026 SPRING REVENUE ESTIMATING CONFERENCE ## Slide 51 Department of Tourism Presented by Jennifer Matarangas-KingCommissioner ## Slide 52 Economy & Travel Outlook Airlift Accommodations Cruise STR Revenue Tax Revenue Agenda ## Slide 53 Consumers continue to spend ## Slide 54 Economy Has Slowed But Should Pick Up in 2026 ## Slide 55 Hotel Growth Remains Bifurcated in 2025 ## Slide 56 Travel Expected to Grow But Not Recover in 2026 ## Slide 57 Through November, USVI Hotels Lead the Comp Set in Growth, Outpacing the Caribbean as a Whole in Demand Growth in 2025 ## Slide 58 Air Capacity & Visitors Post-COVID, the U.S. Virgin Islands has seen a significant increase in airlift to the destination. There is a projected 16.5 percent rise in non-stop flights from the U.S. in 2026 compared to 2025, a 11.8 percent increase when compared to 2024 STT seats are projected to increase by 21.6% in 2026. STX projects a -1.8% decrease compared to 2025. Compared to 2024, STT is up 13.2%, and STX is up 4.7%  Data represents Continental US Origin Markets 2026 = January - October ## Slide 59 Air Arrivals – Continental U.S. Destination 2024 2025 Change St. Thomas/St. John 743,912 725,263 -2.5% St. Croix 185,746 182,995 -1.5% USVI 929,658 908,258 -2.3% Destination Feb 2025 YTD Feb 2026 YTD Change St. Thomas/St. John 135,882 150,421 10.7% St. Croix 36,115 37,881 4.9% USVI 171,997 188,302 9.5% Source: Internal Dept of Tourism data ## Slide 60 Regional Flights Breakdown Source: Internal Dept of Tourism data Seats decreased primarily due to Silver Airways' departure. Contour Aviation added 115 flights. Regional Aircraft - STT Weekly Flights Seats Winter 2024-25 169 2,419 Summer 2025 177 2,304 Winter 2025-26 110 1,216 Summer 2026 111 1,192 Regional Aircraft - STX Weekly Flights Seats Winter 2024-25 113 2,173 Summer 2025 111 1,580 Winter 2025-26 58 527 Summer 2026 56 507 ## Slide 61 Weekly Flights/Seat – Continental U.S. Source: Internal Dept of Tourism data Time Period Weekly Flights Territory-Wide Seats Summer 2024 134 22,951 Winter 2024-25 153 25,659 Summer 2025 118 20,296 Winter 2025-26 169 28,328 Destination Forecasted Weekly Flights Seats St. Thomas - Summer 2026 137 23,416 St. Croix - Summer 2026 20 3,280 ## Slide 62 Accommodations and Hotel Development Hampton by Hilton - St. Thomas​ 126 rooms (Opened August 2025)​ The Saint - St. John​​ 6 rooms (Opened February 2025)​ Hibiscus Hotel - St. Croix​ 100 rooms (2025-2027)​ The Botany- St. Thomas23 villas (2026)​ Sugar Bay - St. Thomas​ 300 rooms (TBD) Timing TBD​ TOTAL New Rooms in STX: 178 TOTAL New Rooms in STT/STJ: 455​ Type St. Croix St. Thomas / St. John Estimated Total Accommodations Hotel/Resort Rooms 1,000 2,286 3,286 Villa 300 600 900 Charter Yachts 250+ 250+ Timeshares 1,022 1,022 Airbnb/VRBO, etc. 1,190 4,579 5,769 ## Slide 63 Sharing Economy Time Period Revenue January Revenue Last 12 Months 2024 $26,477,187 $204,379,775 2025 $31,267,736 $243,707,206 2026 $35,214,371 $256,116,314 Time Period Supply Nights / Demand Nights– January Supply Nights / Demand Nights– Last 12 Months 2024 106,191/70,490 922,495/ 535,064 2025 110,691/75,063 1,042,294/610,507 2026 114,152/80,385 1,040,718/606,428 Source: AirDNA Trend Report Jan 2026 ## Slide 64 Cruise STT and STX 2026 Cruise ship passenger volumes for 2026 are expected to exceed 2025 levels for the USVI. Cruise passengers increased by 94,000 territory-wide in 2025. Projected passengers for 2026 are 1.9 million: WICO: 1,100,000 Passengers Crown Bay: 585,000 Passengers AAMF: 220,000 Passengers Preliminary projected passengers for 2027 are 1.9 million Source: BER, VIPA, WICO ## Slide 65 STR Data YTD 2025 vs. 2024 Source: STR data March 2025 ADR is $666 (2025) ## Slide 66 Hotel Tax Revenue Collected YTD & FY Time Period Revenue Collected JANUARY YTD FY 2024 $11,427,603 JANUARY YTD FY 2025 $11,106,733 JANUARY YTD FY 2026 $12,998,475 Time Period Revenue Collected FISCAL YEAR 2024 $51,201,594 FISCAL YEAR 2025 $52,924,503 FISCAL YEAR 2026 – Projected $54,000,000 Source: USVI Bureau of Internal Revenue ## Slide 67 Tax Revenue Estimate Snapshot Industry Projected Growth: Projected growth rate of 0.4% for FY 2026 Projected growth rate of 2% for FY 2027 Projected Collections: 2026 Hotel Room Tax Collection: $53,982,993 2027 Hotel Room Tax Collection: $55,062,653 ## Slide 68 THANK YOU ## Slide 69 MARCH 20, 2026 2026 SPRING REVENUE ESTIMATING CONFERENCE ## Slide 70 VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY Presented by Wayne L. Biggs, Jr. Chief Executive Officer ## Slide 71 EDC Program Economic Impact Fiscal Year 2023 (As of September 30, 2025) Fact: Tax incentives are intended to spur economic growth that would not have otherwise occurred. ## Slide 72 Historical New Applicant Statistics ## Slide 73 Active VIEDC Beneficiaries As of September 30, 2025 2021 2022 2023 2024 2025 ## Slide 74 REVENUE BREAKDOWN Revenue Category Revenue Estimate Fiscal Year Direct Taxes Year 1: $5M (Based on 4 applicants) 2026 Direct Taxes Year 2: $10M (Based on 8 applicants) 2027 Fiscal 2026 Total Estimated Revenue Key Revenue Drivers and Assumptions FY: 26 $5M Highlight 1: New Virgin Islands Economic Development Commission (VIEDC) Beneficiaries – 4 per year Highlight 2: Taxes from VIEDC Beneficiary Operations’ Income FY: 27 $10M Highlight 3: Taxes on VIEDC Beneficiary Principals’ Global Income ## Slide 75 FY 2026-2027 EDA Generated Revenues $10M ($5M-Yr. 1 + $5M-Yr. 2) Year 1: FY 2026 $5M Year 2: FY 2027 This is based on the assumption that four (4) new applicants will generate an estimated $2.5M each in direct taxes and taxes on other global income per year for a total of $5M. Given this pattern, we estimate $10M will be generated in Year 2 from the onboarding of four (4) additional applicants plus the existing four (4) beneficiaries from Year 1. ## Slide 76 Objective Attracting business investment to the Territory to support the tax base and job creation. ## Slide 77 Contact Us www.usvieda.org STT: 340.714.1700 STX: 340.773.6499 info@usvieda.org ## Slide 78 MARCH 20, 2026 2026 SPRING VIRGIN ISLANDS HOUSING FINANCE AUTHORITY REVENUE ESTIMATING CONFERENCE Executive Director Eugene Jones, Jr. ## Slide 79 Virgin Islands Housing Finance Authority Monifa Evans Community Development Block Grant Disaster Recovery Director of Finance ## Slide 80 Pictures courtesy of WTJX, VI Consortium and St. Thomas Source ## Slide 81 REVENUE BREAKDOWN Revenue Category Project Count Revenue Estimate Fiscal Year MIT - Housing 4 $10,471,679 FY 26 MIT/EG- Infrastructure 3 $15,145,148 FY 26 MIT - Economic Revitalization & Resilience/Public Facilities 7 $5,375,290 FY 26 MIT – Housing 5 $19,844,194 FY 27 MIT/EG – Infrastructure 5 $26,427,629 FY 27 MIT – Economic Revitalization & Resilience/Public Facilities 12 $12,117,227 FY 27 Fiscal 2026 Total Estimated Revenue Key Revenue Drivers and Assumptions FY: 26 $30,992,117 Mitigation/Electrical Grid Highlight 1: Availability of funds for all the projects Highlight 2: Maintain and follow the established project schedules and timelines FY: 27 $58,389,050 Mitigation/Electrical Grid Highlight 3: Project oversight and coordination between all entities [notes] Fiscal 2026 Total Estimated Revenue Key Revenue Drivers and Assumptions 1. Business Compliance and License Renewals Driver: • A significant portion of revenue comes from business license fees, which depend on business renewals and new business registrations. • If businesses comply with renewal deadlines, licensing revenue remains stable or increases. • Declining renewal rates or economic downturns could result in lower revenue collection. Assumption: • The projections assume consistent business activity and a stable number of license renewals over the next two years. • If more businesses fail to renew due to economic conditions, revenue could decrease. 2. Regulatory Enforcement and Penalty Fees Driver: • Penalty fees for delinquencies and CPS, Weights and Measures and Enforcement actions contribute to total revenue, depending on the number of violations and enforcement actions. • The DLCA has engaged stricter enforcement practices including night-time initiatives that will yield increased citations for noncompliance. For the foreseeable future we anticipate that these actions along with improved follow-through via our legal division will lead to increased collections. Assumption: • The projections assume penalty fees will remain relatively stable, with no significant decline in enforcement practices. • If compliance improves, penalty revenues may decline. Conversely, more aggressive enforcement and tighter regulations should lead to higher collections. 3. Economic Growth and Business Expansion Driver: • Economic conditions impact new business formation, affecting license revenue. • A growing economy leads to more business licenses, while a recession could reduce new applications. Assumption: • The projections assume moderate economic stability, with a gradual increase in new business licenses at a 3.1% growth rate. • If economic conditions worsen, business growth could slow, affecting revenue collections. 4. Department Policy and Fee Adjustments Driver: • For more than a decade the DLCA has resisted a wholesale increase in license fees, opting instead for a more targeted approach. Increases in license fees for alcohol related businesses were implemented with no significant retraction of licenses. We anticipate that the time is ripe for some adjustment in license fees, penalties, and payment structures which can directly impact revenue. • An increase in fees, could lead to revenues exceeding current estimates. Assumption: • The projections assume no major changes in licensing fees or penalties. • Any policy changes (such as higher license fees or increased enforcement measures) could increase revenue beyond projections. Conclusion The revenue projections rely on stable business activity, consistent enforcement, economic stability, and unchanged policies. Any unexpected shifts in these factors could lead to higher or lower revenues than forecasted. ## Slide 82 Community Development Block Grant Projects Economic Revitalization and Resilience Projects Lovenlund Phase I Bellevue Village & Calabash Boom Residences at 340 North Wild Pineapple – Fortuna Mount Pleasant Main Street Homes DPW Veterans Drive Road Extension WAPA Distribution Automated Devices WAPA Transfer Replacement Project Energy Office - Energy Vulnerability Housing Projects Infrastructure Projects Royale Systems St. Croix Women’s Coalition Sejah Farms VI Aqua Farms Our Town Frederiksted [notes] Key Observations Steady Growth Trend The total revenue has increased each year, showing a consistent upward trend. The most significant increase occurred from FY 2021 to FY 2022, where revenues rose from $3.85 million to $4.51 million (a 17.4% increase). This growth suggests an expansion in business licensing activities, possibly due to economic recovery, increased enforcement, or new business registrations. Stabilization After FY 2022 The revenue increase slowed after FY 2022, with marginal growth in FY 2023 (0.5%) and FY 2024 (0.8%). This indicates that the licensing market has matured, with fewer new businesses entering and renewals stabilizing. Impact of External Factors The growth in FY 2022 may have been influenced by post-pandemic economic recovery, as businesses resumed normal operations. Regulatory changes or enforcement improvements may have contributed to better compliance and higher collections. Projected Growth Moving Forward The average annual growth rate across these years is 3.1%. If this trend continues, revenues are expected to increase gradually rather than exhibit sharp growth spikes. ## Slide 83 Advance Infrastructure, Economic Resilience and Revitalization projects Territory-wide by obligating 100% and expending 50% of the CDBG-MIT funds and obligating 100% and expending 45% of Electrical Grid funds. Partner with stakeholders to continuously track projects from start to completion while ensuring that costs are accurately billed and revenues are received timely according to our grant requirements. Partner with housing developers to construct new low-to-moderate income homes across the Territory, expand housing opportunities while promoting economic growth and supporting long-term revenue. Objectives ## Slide 84 THANK YOU ## Slide 85 MARCH 20, 2026 2026 SPRING REVENUE ESTIMATING CONFERENCE ## Slide 86 VI Waste Management Authority Presented by Hannibal “Mike” Ware Executive Director ## Slide 87 Fiscal 2026 & 2027 Total Estimated Revenue FY: 26 $2,462,047.00 Gross Receipts FY: 27 $5,611,667.63 Gross Receipts Key Revenue Drivers on Following Page [notes] Fiscal 2026 Total Estimated Revenue Key Revenue Drivers and Assumptions 1. Business Compliance and License Renewals Driver: • A significant portion of revenue comes from business license fees, which depend on business renewals and new business registrations. • If businesses comply with renewal deadlines, licensing revenue remains stable or increases. • Declining renewal rates or economic downturns could result in lower revenue collection. Assumption: • The projections assume consistent business activity and a stable number of license renewals over the next two years. • If more businesses fail to renew due to economic conditions, revenue could decrease. 2. Regulatory Enforcement and Penalty Fees Driver: • Penalty fees for delinquencies and CPS, Weights and Measures and Enforcement actions contribute to total revenue, depending on the number of violations and enforcement actions. • The DLCA has engaged stricter enforcement practices including night-time initiatives that will yield increased citations for noncompliance. For the foreseeable future we anticipate that these actions along with improved follow-through via our legal division will lead to increased collections. Assumption: • The projections assume penalty fees will remain relatively stable, with no significant decline in enforcement practices. • If compliance improves, penalty revenues may decline. Conversely, more aggressive enforcement and tighter regulations should lead to higher collections. 3. Economic Growth and Business Expansion Driver: • Economic conditions impact new business formation, affecting license revenue. • A growing economy leads to more business licenses, while a recession could reduce new applications. Assumption: • The projections assume moderate economic stability, with a gradual increase in new business licenses at a 3.1% growth rate. • If economic conditions worsen, business growth could slow, affecting revenue collections. 4. Department Policy and Fee Adjustments Driver: • For more than a decade the DLCA has resisted a wholesale increase in license fees, opting instead for a more targeted approach. Increases in license fees for alcohol related businesses were implemented with no significant retraction of licenses. We anticipate that the time is ripe for some adjustment in license fees, penalties, and payment structures which can directly impact revenue. • An increase in fees, could lead to revenues exceeding current estimates. Assumption: • The projections assume no major changes in licensing fees or penalties. • Any policy changes (such as higher license fees or increased enforcement measures) could increase revenue beyond projections. Conclusion The revenue projections rely on stable business activity, consistent enforcement, economic stability, and unchanged policies. Any unexpected shifts in these factors could lead to higher or lower revenues than forecasted. ## Slide 88 Highlight 1: VIWMA has initiated the CDBG‑DR–funded Convenience Center Projects, which will modernize and replace existing garbage bin sites. The total project budget is $18,046,064.45, and construction is expected to be completed over a two‑year period. [notes] Fiscal 2026 Total Estimated Revenue Key Revenue Drivers and Assumptions 1. Business Compliance and License Renewals Driver: • A significant portion of revenue comes from business license fees, which depend on business renewals and new business registrations. • If businesses comply with renewal deadlines, licensing revenue remains stable or increases. • Declining renewal rates or economic downturns could result in lower revenue collection. Assumption: • The projections assume consistent business activity and a stable number of license renewals over the next two years. • If more businesses fail to renew due to economic conditions, revenue could decrease. 2. Regulatory Enforcement and Penalty Fees Driver: • Penalty fees for delinquencies and CPS, Weights and Measures and Enforcement actions contribute to total revenue, depending on the number of violations and enforcement actions. • The DLCA has engaged stricter enforcement practices including night-time initiatives that will yield increased citations for noncompliance. For the foreseeable future we anticipate that these actions along with improved follow-through via our legal division will lead to increased collections. Assumption: • The projections assume penalty fees will remain relatively stable, with no significant decline in enforcement practices. • If compliance improves, penalty revenues may decline. Conversely, more aggressive enforcement and tighter regulations should lead to higher collections. 3. Economic Growth and Business Expansion Driver: • Economic conditions impact new business formation, affecting license revenue. • A growing economy leads to more business licenses, while a recession could reduce new applications. Assumption: • The projections assume moderate economic stability, with a gradual increase in new business licenses at a 3.1% growth rate. • If economic conditions worsen, business growth could slow, affecting revenue collections. 4. Department Policy and Fee Adjustments Driver: • For more than a decade the DLCA has resisted a wholesale increase in license fees, opting instead for a more targeted approach. Increases in license fees for alcohol related businesses were implemented with no significant retraction of licenses. We anticipate that the time is ripe for some adjustment in license fees, penalties, and payment structures which can directly impact revenue. • An increase in fees, could lead to revenues exceeding current estimates. Assumption: • The projections assume no major changes in licensing fees or penalties. • Any policy changes (such as higher license fees or increased enforcement measures) could increase revenue beyond projections. Conclusion The revenue projections rely on stable business activity, consistent enforcement, economic stability, and unchanged policies. Any unexpected shifts in these factors could lead to higher or lower revenues than forecasted. ## Slide 89 Highlight 2: VIHFA is finalizing the Notice to Proceed for the Authority under the $46 million CDBG‑DR grant. This funding will support the closure of Anguilla Landfill Sites 1–6 and the development and commissioning of Sites 7 and 8. [notes] Fiscal 2026 Total Estimated Revenue Key Revenue Drivers and Assumptions 1. Business Compliance and License Renewals Driver: • A significant portion of revenue comes from business license fees, which depend on business renewals and new business registrations. • If businesses comply with renewal deadlines, licensing revenue remains stable or increases. • Declining renewal rates or economic downturns could result in lower revenue collection. Assumption: • The projections assume consistent business activity and a stable number of license renewals over the next two years. • If more businesses fail to renew due to economic conditions, revenue could decrease. 2. Regulatory Enforcement and Penalty Fees Driver: • Penalty fees for delinquencies and CPS, Weights and Measures and Enforcement actions contribute to total revenue, depending on the number of violations and enforcement actions. • The DLCA has engaged stricter enforcement practices including night-time initiatives that will yield increased citations for noncompliance. For the foreseeable future we anticipate that these actions along with improved follow-through via our legal division will lead to increased collections. Assumption: • The projections assume penalty fees will remain relatively stable, with no significant decline in enforcement practices. • If compliance improves, penalty revenues may decline. Conversely, more aggressive enforcement and tighter regulations should lead to higher collections. 3. Economic Growth and Business Expansion Driver: • Economic conditions impact new business formation, affecting license revenue. • A growing economy leads to more business licenses, while a recession could reduce new applications. Assumption: • The projections assume moderate economic stability, with a gradual increase in new business licenses at a 3.1% growth rate. • If economic conditions worsen, business growth could slow, affecting revenue collections. 4. Department Policy and Fee Adjustments Driver: • For more than a decade the DLCA has resisted a wholesale increase in license fees, opting instead for a more targeted approach. Increases in license fees for alcohol related businesses were implemented with no significant retraction of licenses. We anticipate that the time is ripe for some adjustment in license fees, penalties, and payment structures which can directly impact revenue. • An increase in fees, could lead to revenues exceeding current estimates. Assumption: • The projections assume no major changes in licensing fees or penalties. • Any policy changes (such as higher license fees or increased enforcement measures) could increase revenue beyond projections. Conclusion The revenue projections rely on stable business activity, consistent enforcement, economic stability, and unchanged policies. Any unexpected shifts in these factors could lead to higher or lower revenues than forecasted. ## Slide 90 Highlight 3: The LBJ Sewershed Design Project, valued at $10.6 million, is currently 40% complete and supports the evaluation and design of the wastewater collection system from downtown Christiansted to the Pearl B. Larson School area. An additional $34 million in sewershed design projects, funded through FEMA Prudent Replacement, is scheduled to commence in 2027. [notes] Fiscal 2026 Total Estimated Revenue Key Revenue Drivers and Assumptions 1. Business Compliance and License Renewals Driver: • A significant portion of revenue comes from business license fees, which depend on business renewals and new business registrations. • If businesses comply with renewal deadlines, licensing revenue remains stable or increases. • Declining renewal rates or economic downturns could result in lower revenue collection. Assumption: • The projections assume consistent business activity and a stable number of license renewals over the next two years. • If more businesses fail to renew due to economic conditions, revenue could decrease. 2. Regulatory Enforcement and Penalty Fees Driver: • Penalty fees for delinquencies and CPS, Weights and Measures and Enforcement actions contribute to total revenue, depending on the number of violations and enforcement actions. • The DLCA has engaged stricter enforcement practices including night-time initiatives that will yield increased citations for noncompliance. For the foreseeable future we anticipate that these actions along with improved follow-through via our legal division will lead to increased collections. Assumption: • The projections assume penalty fees will remain relatively stable, with no significant decline in enforcement practices. • If compliance improves, penalty revenues may decline. Conversely, more aggressive enforcement and tighter regulations should lead to higher collections. 3. Economic Growth and Business Expansion Driver: • Economic conditions impact new business formation, affecting license revenue. • A growing economy leads to more business licenses, while a recession could reduce new applications. Assumption: • The projections assume moderate economic stability, with a gradual increase in new business licenses at a 3.1% growth rate. • If economic conditions worsen, business growth could slow, affecting revenue collections. 4. Department Policy and Fee Adjustments Driver: • For more than a decade the DLCA has resisted a wholesale increase in license fees, opting instead for a more targeted approach. Increases in license fees for alcohol related businesses were implemented with no significant retraction of licenses. We anticipate that the time is ripe for some adjustment in license fees, penalties, and payment structures which can directly impact revenue. • An increase in fees, could lead to revenues exceeding current estimates. Assumption: • The projections assume no major changes in licensing fees or penalties. • Any policy changes (such as higher license fees or increased enforcement measures) could increase revenue beyond projections. Conclusion The revenue projections rely on stable business activity, consistent enforcement, economic stability, and unchanged policies. Any unexpected shifts in these factors could lead to higher or lower revenues than forecasted. ## Slide 91 Highlight 4: The Mangrove Lagoon Wastewater Treatment Plant has an estimated construction cost of approximately $25 million, with work scheduled to begin in 2027. The project will be funded through the Bipartisan Infrastructure Law (BIL) and the EPA’s Clean Water State Revolving Fund. [notes] Fiscal 2026 Total Estimated Revenue Key Revenue Drivers and Assumptions 1. Business Compliance and License Renewals Driver: • A significant portion of revenue comes from business license fees, which depend on business renewals and new business registrations. • If businesses comply with renewal deadlines, licensing revenue remains stable or increases. • Declining renewal rates or economic downturns could result in lower revenue collection. Assumption: • The projections assume consistent business activity and a stable number of license renewals over the next two years. • If more businesses fail to renew due to economic conditions, revenue could decrease. 2. Regulatory Enforcement and Penalty Fees Driver: • Penalty fees for delinquencies and CPS, Weights and Measures and Enforcement actions contribute to total revenue, depending on the number of violations and enforcement actions. • The DLCA has engaged stricter enforcement practices including night-time initiatives that will yield increased citations for noncompliance. For the foreseeable future we anticipate that these actions along with improved follow-through via our legal division will lead to increased collections. Assumption: • The projections assume penalty fees will remain relatively stable, with no significant decline in enforcement practices. • If compliance improves, penalty revenues may decline. Conversely, more aggressive enforcement and tighter regulations should lead to higher collections. 3. Economic Growth and Business Expansion Driver: • Economic conditions impact new business formation, affecting license revenue. • A growing economy leads to more business licenses, while a recession could reduce new applications. Assumption: • The projections assume moderate economic stability, with a gradual increase in new business licenses at a 3.1% growth rate. • If economic conditions worsen, business growth could slow, affecting revenue collections. 4. Department Policy and Fee Adjustments Driver: • For more than a decade the DLCA has resisted a wholesale increase in license fees, opting instead for a more targeted approach. Increases in license fees for alcohol related businesses were implemented with no significant retraction of licenses. We anticipate that the time is ripe for some adjustment in license fees, penalties, and payment structures which can directly impact revenue. • An increase in fees, could lead to revenues exceeding current estimates. Assumption: • The projections assume no major changes in licensing fees or penalties. • Any policy changes (such as higher license fees or increased enforcement measures) could increase revenue beyond projections. Conclusion The revenue projections rely on stable business activity, consistent enforcement, economic stability, and unchanged policies. Any unexpected shifts in these factors could lead to higher or lower revenues than forecasted. ## Slide 92 REVENUE BREAKDOWN Revenue Category Project Count (If Applicable) Revenue Estimate Fiscal Year Gross Receipts – Concordia and Cotton Valley Convenience Centers 2 $148,297.35 FY 2026 Gross Receipts - Anguilla Landfill Closure 1 $600,000 FY 2026 Gross Receipts – LBJ Sewershed Design Project 1 $345,185 FY 2026 Gross Receipts – C/Sted Sewer System Rehab 1 $83,369 FY 2026 [notes] Fiscal 2026 Total Estimated Revenue Key Revenue Drivers and Assumptions 1. Business Compliance and License Renewals Driver: • A significant portion of revenue comes from business license fees, which depend on business renewals and new business registrations. • If businesses comply with renewal deadlines, licensing revenue remains stable or increases. • Declining renewal rates or economic downturns could result in lower revenue collection. Assumption: • The projections assume consistent business activity and a stable number of license renewals over the next two years. • If more businesses fail to renew due to economic conditions, revenue could decrease. 2. Regulatory Enforcement and Penalty Fees Driver: • Penalty fees for delinquencies and CPS, Weights and Measures and Enforcement actions contribute to total revenue, depending on the number of violations and enforcement actions. • The DLCA has engaged stricter enforcement practices including night-time initiatives that will yield increased citations for noncompliance. For the foreseeable future we anticipate that these actions along with improved follow-through via our legal division will lead to increased collections. Assumption: • The projections assume penalty fees will remain relatively stable, with no significant decline in enforcement practices. • If compliance improves, penalty revenues may decline. Conversely, more aggressive enforcement and tighter regulations should lead to higher collections. 3. Economic Growth and Business Expansion Driver: • Economic conditions impact new business formation, affecting license revenue. • A growing economy leads to more business licenses, while a recession could reduce new applications. Assumption: • The projections assume moderate economic stability, with a gradual increase in new business licenses at a 3.1% growth rate. • If economic conditions worsen, business growth could slow, affecting revenue collections. 4. Department Policy and Fee Adjustments Driver: • For more than a decade the DLCA has resisted a wholesale increase in license fees, opting instead for a more targeted approach. Increases in license fees for alcohol related businesses were implemented with no significant retraction of licenses. We anticipate that the time is ripe for some adjustment in license fees, penalties, and payment structures which can directly impact revenue. • An increase in fees, could lead to revenues exceeding current estimates. Assumption: • The projections assume no major changes in licensing fees or penalties. • Any policy changes (such as higher license fees or increased enforcement measures) could increase revenue beyond projections. Conclusion The revenue projections rely on stable business activity, consistent enforcement, economic stability, and unchanged policies. Any unexpected shifts in these factors could lead to higher or lower revenues than forecasted. ## Slide 93 Analysis [notes] Key Observations Steady Growth Trend The total revenue has increased each year, showing a consistent upward trend. The most significant increase occurred from FY 2021 to FY 2022, where revenues rose from $3.85 million to $4.51 million (a 17.4% increase). This growth suggests an expansion in business licensing activities, possibly due to economic recovery, increased enforcement, or new business registrations. Stabilization After FY 2022 The revenue increase slowed after FY 2022, with marginal growth in FY 2023 (0.5%) and FY 2024 (0.8%). This indicates that the licensing market has matured, with fewer new businesses entering and renewals stabilizing. Impact of External Factors The growth in FY 2022 may have been influenced by post-pandemic economic recovery, as businesses resumed normal operations. Regulatory changes or enforcement improvements may have contributed to better compliance and higher collections. Projected Growth Moving Forward The average annual growth rate across these years is 3.1%. If this trend continues, revenues are expected to increase gradually rather than exhibit sharp growth spikes. ## Slide 94 Objectives Objective 1. Objective 2. Objective 3. VIWMA established and staffed a Director of Grants position and added four dedicated team members to strengthen the department’s capacity to manage and administer more than $100 million in grant funding annually. The Authority has initiated the Wastewater Optimization Program, a strategic initiative that provides a structured roadmap for enhancing the reliability, sustainability, and performance of the Territory’s wastewater infrastructure through the effective use of FEMA prudent replacement funds. VIWMA remains committed to advancing critical solid waste management initiatives, ensuring full compliance with environmental regulations while strengthening and modernizing waste disposal infrastructure throughout the U.S. Virgin Islands. ## Slide 95 THANK YOU ## Slide 96 MARCH 20, 2026 2026 SPRING REVENUE ESTIMATING CONFERENCE ## Slide 97 Department of Finance Presented by Natifah Todman & Keturah Nurse Financial Officers ## Slide 98 General Fund YTD Tax Collection (Actuals) ## Slide 99 General Fund YTD Other Revenues (Actuals) Custom Dues $3.15M ## Slide 100 Special and Other Funds YTD Collections CONTRIBUTORS: Caribbean Basin Transportation Trust Fund Health Revolving Fund WAPA Generator Fund Anti-Litter & Beautification ## Slide 101 Forecast vs Actuals YTD (GF+ Other Bank 2) Fiscal 2026 Total Estimated Revenue Key Performance Indicators and Assumptions FY: 26 Forecast $273M Highlight 1: Individual: (Actuals) $114M (Forecast) $117M Highlight 2: GRT: (Actuals) $71.2M vs (Forecast) $49M FY: 26 Actuals $314M Highlight 3: AP: (Actuals) $110.3M (Forecast) $60.3M Highlight 4: Allotments: (Actuals) $37.1M (Forecast) $59M 15.5 days of cash-on hand vs prior year’s 9.6 days ## Slide 102 General Fund Revenue Drivers Major Decreases in Revenue Major Increases in Revenue REVENUE BREAKDOWN Revenue Category YTD Taxes $230M Other Revenues $16.4M Other Financing Sources $20.7M Total Revenues: $267M ## Slide 103 OBJECTIVE Cash on Hand: GVI maintained 15.5 days of cash on hand on a consolidated basis (General + Special Funds), based on FYTD average expenditures. Timely Deposits: GVI’s cash position depends on agencies making deposits promptly. Local Funds Requirement: Agencies must ensure deposit clerks submit collections within 24 hours per standard operations policies & procedures. Federal Funds Requirement: Agencies must comply with CMIA by performing timely drawdowns. Reference Source: S.O.P.P.s are available on the Department of Finance website. https://dof.vi.gov/ FINANCIAL POLICIES ## Slide 104 THANK YOU ## Slide 105 MARCH 20, 2026 2026 SPRING REVENUE ESTIMATING CONFERENCE ## Slide 106 Presented by Shanisa EmmanuelAssociate Director, Financial Planning & Analysis & John EngermanFiscal and Economic Analyst ## Slide 107 Objectives Enhance Modeling of Income Tax Volatility Integrate Macro Scenario Stress-Testing into Baseline Forecasts Embed Demographic & Labor Force Trends into Long-Range Projections Improve Revenue Mix Analysis & Structural Risk Monitoring ## Slide 108 REVENUE BREAKDOWN Revenue Category FY 2025 Actuals FY 2026 Forecast FY 2027 Projection Individual Income 469,931,046 411,615,671 423,200,000 Corporate Income 69,222,668 74,867,612 77,338,015 Other Revenues Taxes 335,206,884 337,573,165 362,184,263 Other Revenues Fees 44,843,224 38,124,170 46,874,923 FY 2026 & 2027 Total Gross Estimated Revenue Key Revenue Drivers and Assumptions FY: 2026 $873,870,143 Income Tax Normalization following FY2025 Volatility Gross Receipts Supported by Nominal Activity, Not Broad Real Expansion FY: 2027 $896,697,021 Corporate Income Sensitive to Margin Compression & External Risk Structural Constraints to Cap Medium-Term Revenue Acceleration Disclaimer: Data excludes revenues from Mitigation & Recovery. All data subject to revision [notes] Fiscal 2026 Total Estimated Revenue Key Revenue Drivers and Assumptions 1. Business Compliance and License Renewals Driver: • A significant portion of revenue comes from business license fees, which depend on business renewals and new business registrations. • If businesses comply with renewal deadlines, licensing revenue remains stable or increases. • Declining renewal rates or economic downturns could result in lower revenue collection. Assumption: • The projections assume consistent business activity and a stable number of license renewals over the next two years. • If more businesses fail to renew due to economic conditions, revenue could decrease. 2. Regulatory Enforcement and Penalty Fees Driver: • Penalty fees for delinquencies and CPS, Weights and Measures and Enforcement actions contribute to total revenue, depending on the number of violations and enforcement actions. • The DLCA has engaged stricter enforcement practices including night-time initiatives that will yield increased citations for noncompliance. For the foreseeable future we anticipate that these actions along with improved follow-through via our legal division will lead to increased collections. Assumption: • The projections assume penalty fees will remain relatively stable, with no significant decline in enforcement practices. • If compliance improves, penalty revenues may decline. Conversely, more aggressive enforcement and tighter regulations should lead to higher collections. 3. Economic Growth and Business Expansion Driver: • Economic conditions impact new business formation, affecting license revenue. • A growing economy leads to more business licenses, while a recession could reduce new applications. Assumption: • The projections assume moderate economic stability, with a gradual increase in new business licenses at a 3.1% growth rate. • If economic conditions worsen, business growth could slow, affecting revenue collections. 4. Department Policy and Fee Adjustments Driver: • For more than a decade the DLCA has resisted a wholesale increase in license fees, opting instead for a more targeted approach. Increases in license fees for alcohol related businesses were implemented with no significant retraction of licenses. We anticipate that the time is ripe for some adjustment in license fees, penalties, and payment structures which can directly impact revenue. • An increase in fees, could lead to revenues exceeding current estimates. Assumption: • The projections assume no major changes in licensing fees or penalties. • Any policy changes (such as higher license fees or increased enforcement measures) could increase revenue beyond projections. Conclusion The revenue projections rely on stable business activity, consistent enforcement, economic stability, and unchanged policies. Any unexpected shifts in these factors could lead to higher or lower revenues than forecasted. ## Slide 109 Analysis 5-Year View of Collections (Actuals and Estimates) FY 2023 Actuals FY 2024 Actuals FY 2025 Actuals FY 2026 Estimates FY 2027 Estimates $878,298,820 $898,873,981 $901,485,836 $873,870,143 $896,697,021 Post-pandemic volatility transitioning to stabilization FY2025 peak reflects rebound dynamics; FY2026-FY2027 normalize Moderate nominal growth outlook amid structural constraints Disclaimer: Data excludes revenues from Mitigation & Recovery. All data subject to revision [notes] Key Observations Steady Growth Trend The total revenue has increased each year, showing a consistent upward trend. The most significant increase occurred from FY 2021 to FY 2022, where revenues rose from $3.85 million to $4.51 million (a 17.4% increase). This growth suggests an expansion in business licensing activities, possibly due to economic recovery, increased enforcement, or new business registrations. Stabilization After FY 2022 The revenue increase slowed after FY 2022, with marginal growth in FY 2023 (0.5%) and FY 2024 (0.8%). This indicates that the licensing market has matured, with fewer new businesses entering and renewals stabilizing. Impact of External Factors The growth in FY 2022 may have been influenced by post-pandemic economic recovery, as businesses resumed normal operations. Regulatory changes or enforcement improvements may have contributed to better compliance and higher collections. Projected Growth Moving Forward The average annual growth rate across these years is 3.1%. If this trend continues, revenues are expected to increase gradually rather than exhibit sharp growth spikes. ## Slide 110 FY2027 General Fund Projection Disclaimer: All data is subject to revision [notes] Key Observations Steady Growth Trend The total revenue has increased each year, showing a consistent upward trend. The most significant increase occurred from FY 2021 to FY 2022, where revenues rose from $3.85 million to $4.51 million (a 17.4% increase). This growth suggests an expansion in business licensing activities, possibly due to economic recovery, increased enforcement, or new business registrations. Stabilization After FY 2022 The revenue increase slowed after FY 2022, with marginal growth in FY 2023 (0.5%) and FY 2024 (0.8%). This indicates that the licensing market has matured, with fewer new businesses entering and renewals stabilizing. Impact of External Factors The growth in FY 2022 may have been influenced by post-pandemic economic recovery, as businesses resumed normal operations. Regulatory changes or enforcement improvements may have contributed to better compliance and higher collections. Projected Growth Moving Forward The average annual growth rate across these years is 3.1%. If this trend continues, revenues are expected to increase gradually rather than exhibit sharp growth spikes. ## Slide 111 THANK YOU