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“SOWING THE SEEDS FOR ECONOMIC PROSPERITY” ANNUAL OPERATING BUDGET Fiscal Year 2018 U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY U.S. Virgin Islands Economic Development Authority U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY FISCAL YEAR 2018 BUDGET OCTOBER 1, 2017 – SEPTEMBER 30, 2018 St. Thomas: 8000 Nisky Shopping Center, Suite 620 St. Thomas, U.S. Virgin Islands 00803 (340) 714-1700 www.usvieda.org St. Croix: 116 King Street, Frederiksted St. Croix, U.S. Virgin Islands 00840 (340) 773-6499 www.usvieda.org i U.S.VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY FISCAL YEAR 2018 BUDGET October 1, 2017 – September 30, 2018 TABLE OF CONTENTS I. Introductory Section CEO's Budget Message to Chairman of the Legislature Committee on Finance…………………………..………… 1 Principal Officials ........................................................................................................................................... 3 Mission Statement ........................................................................................................................................ 4 Scope and Overview ..................................................................................................................................... 5 Organizational Chart ..................................................................................................................................... 6 Accounting System and Financial Reporting Roles and Responsibilities ...................................................... 7 USVIEDA Direct and Indirect Cost Allocations .............................................................................................. 8 Goals, Objectives, Performance Measurement, and Performance Evaluation .......................................... 10 Annual Budget Processes ............................................................................................................................ 11 II. Departmental Goals and Objectives 1.0 USVIEDA Administrative Departments ........................................................................................ 14 1.1 Board of Directors .................................................................................................................... 14 1.2 Executive Office ....................................................................................................................... 16 1.3 Administration and Finance Department ................................................................................ 19 1.4 Human Resources (HR) Department ........................................................................................ 22 1.5 Legal Department .................................................................................................................... 25 1.6 Marketing / Public Relations Department ............................................................................... 28 1.7 Economic Development Management (EDM) ......................................................................... 31 U.S.VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY FISCAL YEAR 2018 BUDGET October 1, 2017 – September 30, 2018 TABLE OF CONTENTS ii 2.0 USVIEDA Operational Divisions ................................................................................................... 34 2.1 V.I. Economic Development Commission Division .................................................................. 34 2.1.1 Applications Department ...................................................................................................... 34 2.1.2 Compliance Department ....................................................................................................... 38 2.2 Economic Development Bank (EDB) ........................................................................................ 42 2.2.1 Incubator Program ....................................................................................................... 48 2.3 Enterprise Zone Commission ................................................................................................... 50 2.4 Economic Development Park Corporation .............................................................................. 54 III. Financial Information 3.1 Revenues .................................................................................................................................. 56 3.2 Expenditure Comparisons for FY16, FY17 Projected and FY18 Budgeted .............................. 57 3.3 Professional Services Breakdown in Detail .............................................................................. 58 3.4 Personnel Service Cost Breakdown by Department and Classification ................................... 59 3.5 Budget Summary ...................................................................................................................... 60 IV. Statistical Section / Appendix Vehicle Listing for USVIEDA ........................................................................................................................ 62 Listing of Real Property being rented or leased by the USVIEDA ............................................................... 62 Personnel Statistics ..................................................................................................................................... 63 Appropriation and Allotment Comparison ................................................................................................. 65 Glossary of Selected Terms ......................................................................................................................... 66 August 3, 2017 The Honorable Kurt A. Vialet Chairman, Committee on Finance 32nd Legislature of the U.S. Virgin Islands Capital Building, P.O. Box 1690 St. Thomas, U.S. Virgin Islands 00804 Re: U.S. Virgin Islands Economic Development Authority’s FY 2018 Budget Submission Dear Senator Vialet: I am happy to present the U.S. Virgin Islands Economic Development Authority’s (“USVIEDA” or “Authority”) Fiscal Year 2018 budget for consideration by the Committee on Finance. This budget is representative of a farmer sowing seeds in the ground, carefully selecting the areas to plant in anticipation of a bountiful crop. Like this farmer, we have identified areas within our budget that we believe will yield the greatest returns in expanding the economic base and allowing the Government to generate the revenues it needs to improve the standard of living for its citizens. For Fiscal Year 2018, the USVIEDA budget request is $5,882,865. This amount is $400,000 less than the amount appropriated in Fiscal Year 2017 due to: a decrease in Incubator and marketing funding of $150,000 and $100,000, respectively, and the nonrecurring appropriation of $150,000 to fund a cost- benefit analysis. Although there is a reduction in the amount requested for Fiscal Year 2018, we believe we can achieve the objectives laid out in this budget with the funding we are requesting. It has the flexibility to shift resources around to areas that we feel can yield the greatest outcomes. To this end, and beginning in the latter part of this fiscal year, we will complement the staffing needs of the organization by adding two (2) new positions: a Director of Marketing and an Associate Legal Counsel. The Director of Marketing will lead the charge in helping to ensure that the Authority provides the help that businesses need to operate successfully in the Territory – whether existing or start-up - and to lure new businesses to our shores. This will be achieved by getting the message across forcefully and convincingly that the Territory is one of the most business-friendly places to do business. The Honorable Kurt Vialet USVIEDA FY 2018 Budget Request August 3, 2017 The Associate Legal Counsel will provide the much-needed support in the speedy development and completion of rules and regulations together with their promulgation relating to the Hotel Development Act, the Youth Recreational Incentive Act, and the update of the rules and regulations for the Economic Development Commission (EDC) and the Enterprise Zone Commission. In addition, this staff member’s service will prove valuable in the drafting of legislations, and the interactions and contacts with the various levels of government to ensure that our laws and statutes are consistent with the goals of the organization and our desire to operate at the most efficient level. With these important additions to our staff level, we can focus more on the use of analytics to help determine where best to invest the limited resources of the organization. Finally, we hope that the seeds we are about to sow in fiscal year 2018 will germinate, grow strong, and bear a bountiful harvest we all can be proud of. Respectfully, Wayne Biggs, Jr. Wayne Biggs, Jr. Acting Chief Executive Officer U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY FISCAL YEAR BEGINNING OCTOBER 1, 2017 Principal Officials Governing Board Board Member Position José A. Penn Chairman Philip Payne Vice Chairman Avery Lewis Secretary Haldane Davies, PhD. Member Eugene Farrell Member Juan Figueroa, Sr. Member Catherine Hendry, Esq. Member Senior Management Team Wayne L. Biggs, Jr., Acting Chief Executive Officer Tracy Lynch Bhola, Esq., General Counsel Ernest Halliday, CPA, CGMA, Director, Administration & Finance Margarita Benjamin, Director, Economic Development Commission, Applications Department Claude S.M. Gerard, Director, Economic Development Commission, Compliance Department Nadine Marchena Kean, Director, Enterprise Zone Commission Sharmane Brookes, Director, Economic Development Bank Mark Finch, Industrial Park Superintendent, Economic Development Park Corporation U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 Mission Statement The U.S. Virgin Islands Economic Development Authority (“USVIEDA”) is a semi-autonomous governmental agency responsible for promoting and enhancing economic development, and fostering positive public/private sector partnerships to improve the standard of living for residents of the United States Virgin Islands. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 SCOPE AND OVERVIEW The USVIEDA is the unification of four (4) separate entities: the Economic Development Bank for the United States Virgin Islands (“EDB”), the Economic Development Commission (“EDC”), the Economic Development Park Corporation (“EDPC”), and the Enterprise Zone Commission (“EZC”). The functions of each entity have been unified under one Governing Board (“Board”). The Board is comprised of seven (7) members. Three (3) members are employees of the Government of the Virgin Islands or the Government of the United States and are appointed by the Governor, with the advice and consent of the Legislature for a term of three (3) years. Three (3) members must be non- government employees, one must be a resident of St. Thomas, another a resident of St. John, and the other a resident of St. Croix. One (1) member shall be appointed from either the Board or executive staff of the Employees Retirement System of the Government of the Virgin Islands, or the Virgin Islands Port Authority, or the University of the Virgin Islands. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 USVIEDA ORGANIZATIONAL CHART U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 ACCOUNTING SYSTEM AND FINANCIAL REPORTING ROLES AND RESPONSIBILITIES The USVIEDA is a component unit of the U.S. Virgin Islands Government and follows enterprise fund accounting and reporting. The financial statements are presented in a manner similar to that of a private business, using the economic resources measurement focus and the accrual basis of accounting. Management prepares a number of financial and statistical reports, including the Financial Statements with Supplementary Information to support the annual audit, and is responsible for the integrity and objectivity of management and financial reporting. Financial statements are prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) in the United States of America, applying certain estimates and judgments as required. The USVIEDA employs internal controls designed to provide reasonable assurance of integrity and reliability of financial reporting and to safeguard, verify, and maintain accountability of assets. Such controls are derived from established written policies and procedures that are implemented by trained, skilled personnel. The USVIEDA’s employment policy prescribes that all employees maintain the highest ethical standards and conduct business practices in a manner above reproach. The USVIEDA engages the services of outside auditors on an annual basis to perform an independent audit of its financial statements, the objective of which is to express an opinion on the financial statements in accordance with Generally Accepted Accounting Principles (GAAP). The Governing Board of the USVIEDA formulates the overall vision of the entity and fulfills its responsibilities of the oversight and administration of the Authority’s practices and governance through actions of the full Board. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 USVIEDA DIRECT AND INDIRECT COST ALLOCATIONS The USVIEDA’s activities can be classified into two (2) distinct categories – operational units’ activities and administrative units’ activities. The definition of an operational unit is one that is charged with the responsibility of carrying out the organizational mandates. These operational units also known as divisions, include the Economic Development Bank (“EDB”), the Economic Development Commission (“EDC”), the Enterprise Zone Commission (“EZC”) and the Economic Development Park Corporation (“EDPC”). The definition of an administrative unit is one that provides support to the operational units in fulfilling the organizational mandates. These administrative units, also known as departments, include the Governing Board, the Executive Office, Administration and Finance, Human Resources (“HR”), Legal, Marketing/Public Relations, and Economic Development Management (“EDM”). The operating costs of the USVIEDA are classified as either direct or indirect. A direct cost is a cost that can be identified specifically with a unit and can be traced with relative ease and a high degree of accuracy to that unit. An indirect cost is a cost that is incurred in common with other units and cannot be traced to any specific unit. The indirect costs are then distributed to both the operational and administrative units through an internal indirect cost allocation process. For ease and convenience, operating indirect costs are budgeted and expensed in the Economic Development Management (EDM) unit. At the end of a given period, the indirect costs accumulated in the EDM unit are distributed to all operational and administrative units based on a pre-determined allocation rate. By the end of a fiscal period all direct costs would have been posted to both the operational and administrative units and all indirect costs would have been allocated from the EDM unit to both the operational and the other administrative units, the total cost to operate each operational and administrative unit can be determined. The total cost (direct and indirect) for each administrative unit is indirect to the operational units and are then further allocated to the operational units using a pre-determined allocation method. By the end of a fiscal period, the total cost of operating each operational unit within the USVIEDA can be determined and so can the total cost to operate the USVIEDA, which will be the sum total of each operating cost expense. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 GOALS, OBJECTIVES, PERFORMANCE MEASUREMENT, AND PERFORMANCE EVALUATION Goals, objectives, performance measurements, and performance evaluations establish the strategic operational framework for the USVIEDA. A goal is the end result to be accomplished and answers this question: “What is the purpose in the big picture?” For the USVIEDA, its purpose is the creation of good jobs to improve the standard of living for residents. Objectives are the action steps taken to carry out the big picture and serve as benchmarks to measure performance. Each objective has four (4) fundamental characteristics.  Be measurable;  Identify a target of program activity;  Set a timeframe for completion; and  Provide an expected direction of change. Performance measurement is the ongoing monitoring and reporting on program accomplishments compared to the pre-established goals and objectives as outlined by each unit. The development of performance measurements requires careful thought and planning and must include the following basic ingredients: objectivity, relevance, reliability, validity, and indicators of degrees of success. Performance Evaluations are critical, especially in periods of scarce resources, and provide a means of assessing how well a unit is performing. Evaluations answer key goal-related questions, such as: 1) Are stakeholders getting what they deserve? 2) Are taxpayers getting their money’s worth? 3) Are those we serve better off? 4) Can the service we provide be improved? The achievability of the USVIEDA’s goals and the fulfillment of objectives rest with supervisors and their subordinates, and the budget provides the financial resources to do so. The execution of performance measurement and evaluation functions in ensuring that scarce resources are used in the most efficient manner for the benefit of residents is of utmost importance. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 ANNUAL BUDGET CALENDAR AND PROCESSES The budget formulation process is designed to allow the USVIEDA to fulfill its mission by aligning goals, priorities, and objectives with financial resources and to evaluate actual achievements relative to anticipated outcomes. DECEMBER – JANUARY The budget formulation process begins with the development of revenue and expenditure projections for the upcoming fiscal year. These projections are presented to the USVIEDA Governing Board with comparisons and analyses of past trends (i.e. appropriations, allotments, revenues, and expenditures) in addition to other financial data to justify and support management’s budget recommendations. During this process, the USVIEDA’s Governing Board outlines its priorities, goals and objectives for the Authority for the upcoming fiscal year. This process forms the basis for the development of the budget and determines the final budget amount to be submitted to the Office of Management & Budget for consideration and inclusion in the Government of the Virgin Islands’ annual operating budget submission to the Legislature. FEBRUARY The USVIEDA’s budget staff establishes budget ceilings for each division and department consistent with the priorities, goals, and objectives as outlined by the USVIEDA Governing Board. This information is communicated to each division or department head through a budget call that provides instructions and guidance for preparing each division’s and department’s budget. The budget staff conducts budget orientation sessions with lead members of each division and department in order to provide guidance and present an overview of the budgeting priorities and to address other budgetary concerns. MARCH – APRIL The budget staff conducts budget review discussions with division and department heads on a one on one basis to discuss areas of concerns, goals, new initiatives, or programs each division or department desires to implement for the upcoming fiscal year. During this meeting, each division or department has the opportunity to justify its needs before the Chief Executive Officer and Assistant Chief Executive Officer/Chief Operating Officer. By the end of this process, revisions may be made to individual division or department budgets and budget schedules are updated accordingly. The final budget is presented to the USVIEDA Governing Board for consideration and approval before submission to the Legislature’s Post-Audit Division. APRIL – JUNE Communication is maintained with the Post-Audit Division as it analyzes the USVIEDA budget while at the same time the USVIEDA’s budget staff researches, gathers data and conducts round-table sessions with the internal division and department heads in preparing drafts of the Chief Executive Officer’s budget presentation to the Finance Committee of the Legislature. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 ANNUAL BUDGET CALENDAR AND PROCESSES CONTINUED JULY – AUGUST The Chief Executive Officer, accompanied by the Assistant Chief Executive Officer/Chief Operating Officer, and the Director of Administration and Finance, defends the USVIEDA budget recommendation before the Finance Committee of the Legislature. OCTOBER Once the budget is passed by the Legislature and approved by the Governor, the USVIEDA is legally authorized to request quarterly allotments from the Department of Finance through the Office of Management and Budget. TWELVE (12) MONTHS MONITORING (OCTOBER – SEPTEMBER) Actual revenues and expenditures are monitored throughout the year and are compared and analyzed against the budget to ensure that resources are managed in accordance with the budget plan and are consistent with the goals and objectives of the Authority. At the end of each quarter, financial analyses are performed and financial presentations are made to the Governing Board showing sources and uses of resources compared to the budget within the same period of the previous fiscal year. The budget staff offers recommendations to division and department heads in addition to the Governing Board to improve operational efficiencies. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 Jan/Feb EDA Governing Board outlines performance goals and objectives for upcoming fiscal year Budget team develops budget recommendation for upcoming fiscal year March Budget call issued to division and department heads Budget request submitted to the Office of Management and Budget Communication is maintained with the Office of Management and Budget to confirm final budget recommendation for the USVIEDA April Internal budget reviews and discussions with executive team, division/ department heads, and budget staff Presentation of detailed proposed Budget to the USVIEDA Governing Board's Finance Committee USVIEDA Governing Board approves Budget May/June Budget submitted to the Post Audit Division of the Legislature July/August Legislative Budget hearing September Budget is passed by the Legislature and Governor may choose to approve, allow to become law without his signature or veto the budget passed by the Legislature. ANNUAL BUDGET CALENDAR AND PROCESSES, CONTINUED BUDGET CALENDAR OVERVIEW U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 1.0 USVIEDA ADMINISTRATIVE DEPARTMENTS The administrative departments within the USVIEDA provide support to the operational divisions in ensuring that the USVIEDA meets its statutory and legal mandates and requirements. 1.1 USVIEDA’S GOVERNING BOARD FUNCTIONAL STATEMENT The powers of the USVIEDA rest in the hands of a governing board, which sets the vision and acts on behalf of the organization. The Board is responsible for establishing all operating policies, hiring the Chief Executive Officer (“CEO”), approving all major contracts, making policy decisions, and providing oversight, but most importantly ensuring that the organization complies with all applicable laws. OPERATIONAL GOAL(S) Work collaboratively with the USVIEDA management team to explore opportunities for economic growth by adapting to the challenges and changes in the global environment. FISCAL YEAR 2017 OBJECTIVES  Attract businesses and industries complimentary to our strengths and support new local business expansion in the Territory;  Increase employment opportunities by attracting capital and diversifying the economic base;  Help create an economic climate that increases job opportunities for residents; and  Support local business activities in promoting the revitalization and development of the downtown areas. FISCAL YEAR 2017 ACCOMPLISHMENTS AS OF MARCH 31, 2017  Continued search for a new CEO of the USVIEDA;  Held strategic sessions with USVIEDA management team; and  Participated in beneficiaries’ and practitioners’ forums. FISCAL YEAR 2018 OBJECTIVES  Select the CEO of the USVIEDA by the end of the first quarter;  Develop a comprehensive strategic 5 – 10-year plan for the USVIEDA; and  Implement strategies to help retain, expand, and attract businesses. Key Performance Indicators (KPI) Actual FY 16 Target FY 17 Actual FY 17 (as of 3/31/17) Planned FY 18 Number of new EDC companies approved 18 15 9 15 Number of business loans approved 23 20 6 10 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 FY16-Actual Total Proj. Exp. FY18-Budget 10/1/15-9/30/16 10/1/16-9/30/17 10/1/17-9/30/18 Personnel Expenses Salaries - Unclassified 57,438 61,005 62,225 Fica 3,561 4,087 3,858 Medicare 833 956 902 Group Insurance 25 22 22 Annual Leave Expense 1,954 - - Retirement 11,775 12,506 12,756 All Other 4,915 - Total Personnel Expense 75,587 83,490 79,763 Operating Expenses Catering Services 252 2,933 1,000 Supplies 1,324 825 500 Dues & Subscriptions 1,050 1,295 1,295 Employee Relations 240 1,099 500 Professional Development 33,546 42,131 42,000 Software Agreement 3,252 3,252 3,252 Miscellaneous 142 826 - Board Attendance Fee 6,300 10,650 10,800 Travel 9,580 39,344 30,000 Communication 2,766 3,608 5,000 Total Operating Expense 58,452 105,962 94,347 Total Department Expense (Direct Cost Only) 134,039 189,453 174,110 US Virgin Islands Economic Development Authority Year End Financial Summary FY 16 Actual, FY 17 Projected, and FY 18 Budget Board of Directors $134,039 $189,453 $174,110 FY16 Actual FY 17 Projection FY 18 Budget USVIEDA Governing Board Year End Financial Summary FY 16 Actual, FY 17 Projection, FY 18 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 1.2 EXECUTIVE OFFICE FUNCTIONAL STATEMENT The Chief Executive Officer (“CEO”) and the Assistant Chief Executive Officer (“ACEO”)/Chief Operating Officer (“COO”) provide overall leadership and direction in the planning, development and administration of policies governing the operation of the USVIEDA. This department ensures that those responsibilities established by statute and other policy directives are executed at the highest level. OPERATIONAL GOAL(S) Direct and monitor the activities of the USVIEDA to ensure assets are safeguarded and optimized, and to maintain a positive work climate conducive to attracting, retaining, and motivating a diverse group of top quality performers in achieving the goals of the organization. FISCAL YEAR 2017 OBJECTIVES  Initiate and strengthen existing partnership collaborations;  Update rules and regulations for: (i) the Sustainable Tourism Through Arts-Based Revenue Streams Act (“STARS Act”), (ii) Economic Development Bank (“EDB”), (iii) Economic Development Commission (“EDC”), (iv) Enterprise Zone Commission (“EZC”), (v) Hotel Development Act, and (vi) Youth Recreational Incentive Act;  Develop legislative proposals in support of economic development; and  Continue to support economic diversification initiatives in the Broadband, Maritime & Marine, and Arts-Based industries. FISCAL YEAR 2017 ACCOMPLISHMENTS AS OF MARCH 31, 2017  Launched a local public relations campaign to inform the community about the Economic Development Authority’s programs and services;  Participated in the Maritime Institute Stakeholders Meetings at the University of the Virgin Islands (UVI) and discussed plans for a UVI extension in Christiansted;  Finalized the rules and regulations for the Sustainable Tourism through Arts-Based Revenue Streams (STARS) Act; and  Contracted UVI to conduct economic impact studies on the EDC, EZC, EDB and EDPC Programs. FISCAL YEAR 2018 OBJECTIVES  Finalize rules and regulations for the Hotel Development Act, International Financial Services Entities Program, the Economic Development Commission, the Enterprise Zone Commission, the Economic Development Bank, and the Youth Recreational Incentive Act;  Continue to strengthen relationships with the local community by increasing the awareness and understanding of programs and services through public education initiatives;  Employ strategies to support and attract financial sector entities; and  Promote the STARS Program to internal and external stakeholders. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 Key Performance Indicators (KPI) Actual FY 16 Target FY 17 Actual FY 17 (as of 3/31/17) Planned FY 18 Number of partnership collaborations 14 15 10 15 Number of economic development initiatives undertaken 4 7 4 8 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 FY16-Actual Total Proj. Exp. FY18-Budget 10/1/15-9/30/16 10/1/16-9/30/17 10/1/17-9/30/18 Personnel Expenses Salaries - Classified 124,952 131,391 134,019 Salaries - Unclassified 278,704 300,385 359,405 Fica 24,513 27,540 30,592 Medicare 5,853 6,557 7,155 Group Insurance 17,121 26,837 28,196 Annual Leave Expense 4,520 - - Retirement 33,141 62,859 78,554 All Other - 20,420 - Total Personnel Expense 488,803 575,988 637,921 Operating Expenses Bank Charges 75 - 50 Supplies 619 1,240 800 Catering Services 120 200 500 Donations & Contributions 500 1,425 - Dues & Subscriptions 3,310 1,610 3,695 Employee Relations - 150 375 Postage & Delivery 164 200 200 Parking 10 100 50 Professional Development 7,749 21,599 25,000 Miscellaneous 15 - - Travel 15,219 16,745 15,000 Communication 3,217 3,054 3,500 Total Operating Expense 30,998 46,322 49,170 Total Department Expense (Direct Cost Only) 519,801 622,310 687,091 US Virgin Islands Economic Development Authority Executive Office Year End Financial Summary FY 16 Actual, FY 17 Projected, and FY 18 Budget $519,801 $622,310 $687,091 FY16 Actual FY 17 Projection FY 18 Budget Executive Department Year End Financial Summary FY 16 Actual, FY 17 Projection, FY 18 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 1.3 ADMINISTRATION AND FINANCE DEPARTMENT FUNCTIONAL STATEMENT The Administration and Finance Department provides financial planning, accounting, and reporting. It is responsible for establishing relationships with external auditors, financial institutions, the Post-Audit Division of the Legislature, and others within the financial community. It takes a leading role in developing proposals and policies on strategic issues that affect the long-term financial integrity and competitiveness of the USVIEDA. Financial policies, procedures, and the establishment of internal control are formulated within this department. OPERATIONAL GOAL(S) Provide quality customer and stakeholder services, and practice responsible stewardship of financial resources, while aspiring to excellence in financial and administrative practices to improve overall efficiency. FISCAL YEAR 2017 OBJECTIVES  Complete the Fiscal Year 2016 audit by March 30, 2017;  Provide staff training in the area of data analysis and financial reporting;  Present quarterly financial updates to the Finance Committee of the Board by the 15th of the month following the end of a quarter; and  Submit all financial reports to appropriate local and federal agencies by due dates. FISCAL YEAR 2017 ACCOMPLISHMENTS AS OF MARCH 31, 2017  Completed the Fiscal Year 2016 audit;  Submitted all local/federal financial reports by due date;  Received training in Portfol and budgeting  Continued to develop a property/procurement procedure for the USVIEDA; and  Presented first quarter financial updates to the EDA Finance Committee of the Board. FISCAL YEAR 2018 OBJECTIVES  Modify accounting structure to meet the financial reporting needs of the organization;  Submit 100% of financial reports on time to appropriate local and federal entities;  Close Fiscal Year 2017 financial statements by November 15, 2017;  Complete Fiscal Year 2017 audit by February 28, 2018;  Conduct at least ten (10) internal site visits and/or provide management/financial assistance to help managers meet objectives;  Develop a long-term plan for EDA self-sufficiency for Board consideration; and  Reduce outstanding accounts receivables by at least 50% compared to Fiscal Year 2017. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 Key Performance Indicators (KPI) Actual FY16 Target FY17 Actual FY 17 (as of 3/31/17) Planned FY 18 Change in accounts receivables n/a n/a n/a 50% Percentage of financial reports submitted on time n/a 100% 100% 100% Number of USVIEDA department objectives accomplished with budgetary assistance and support n/a n/a n/a 6 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 FY16-Actual Total Proj. Exp. FY18-Budget 10/1/15-9/30/16 10/1/16-9/30/17 10/1/17-9/30/18 Personnel Expenses Salaries - Classified 222,524 266,194 271,208 Salaries - Unclassified 90,692 94,500 96,390 Fica 19,419 23,512 22,791 Medicare 4,542 5,499 5,330 Group Insurance 37,950 31,918 53,436 Annual Leave Expense (12,696) - - Retirement 48,132 64,297 65,982 All Other - 18,528 - Total Personnel Expense 410,563 504,448 515,136 Operating Expenses Advertising & Promotion 2,000 - - Supplies 1,121 500 500 Dues & Subscriptions 1,008 737 737 Employee Relations 246 250 200 Repairs & Maintenance 250 - - Postage & Delivery 263 392 200 Professional Development 4,272 13,210 12,500 Software Agreement 12,264 23,149 11,086 Professional Services 2,313 1,305 1,000 Travel 2,498 4,171 2,700 Communication 1,175 1,062 1,300 Total Operating Expense 27,409 44,776 30,223 Total Department Expense (Direct Cost Only) 437,972 549,223 545,359 FY 16 Actual, FY 17 Projected, and FY 18 Budget US Virgin Islands Economic Development Authority Administration & Finance Year End Financial Summary $437,972 $549,223 $545,359 FY16 Actual FY 17 Projection FY 18 Budget Administration & Finance Department Year End Financial Summary FY 16 Actual, FY 17 Projection, FY 18 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 1.4 HUMAN RESOURCES (HR) DEPARTMENT FUNCTIONAL STATEMENT The Human Resources (“HR”) Department is responsible for talent management and workforce development to include staff recruitment, position classification, benefits counseling, and employee and labor relations. OPERATIONAL GOAL(S) Provide an organizational framework to strategically develop and retain a workforce capable of supporting the economic development initiatives of the organization. FISCAL YEAR 2017 OBJECTIVES  Increase employee performance and productivity by providing professional development opportunities;  Develop the organizational culture by creating focus groups to identify issues and recommend solutions;  Plan mandatory trainings for employees to include Sexual Harassment Awareness, Proper Use of Fire Extinguishers, Hazardous Communication, Conflict Resolution Management, and Progressive Discipline;  Offer professional development training to improve leadership and team building skills on a quarterly basis; and  Continue the USVIEDA Wellness Program to improve employee health and wellness. FISCAL YEAR 2017 ACCOMPLISHMENTS AS OF MARCH 31, 2017  Filled three critical positions;  Participated with the negotiation of a new collective bargaining agreement for Fiscal Years 2017 - 2021;  Developed a 40-Step Play Plan and Position Classification Chart for classified employees;  Arranged and facilitated the annual biometric health screenings for the staff on St. Thomas;  Surveyed employees to assess employment satisfaction level;  Created an HR newsletter providing staff with information on HR programs and events;  Provided general and specialized training for all staff members; and  Organized the annual Employee Appreciation Day activities that included service and recognition awards and team building exercises. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 FISCAL YEAR 2018 OBJECTIVES  Continue to measure employee satisfaction through the use of surveys;  Work with managers in developing specific, measurable, achievable, relevant and time-based (“SMART”) performance objectives for their subordinates;  Provide professional development trainings to improve leadership and teambuilding skills;  Implement a performance management system that will include goal setting, performance appraisal and performance improvement plans;  Continue health and wellness workplace programs to encourage healthy lifestyles; and  Develop a compensation plan for non-union and management staff. Key Performance Indicators (KPI) Actual FY 16 Target FY17 Actual FY 17 (as of 3/31/17) Planned FY 18 Level of employee satisfaction (Percentage) 79% n/a n/a 80% Percentage of managers that developed SMART performance objectives n/a n/a n/a 100% Percentage of employee annual evaluations completed on time 40% 100% n/a 100% Number of employee trainings offered 24 13 12 14 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 FY16-Actual Total Proj. Exp. FY18-Budget 10/1/15-9/30/16 10/1/16-9/30/17 10/1/17-9/30/18 Personnel Expenses Salaries - Classified 60,885 63,815 65,092 Salaries - Unclassified 73,058 76,125 77,648 Fica 8,304 9,212 8,850 Medicare 1,942 2,157 2,070 Group Insurance 11,362 11,762 11,799 Annual Leave Expense (2,067) - - Retirement 26,778 25,646 26,650 All Other - 8,832 - Total Personnel Expense 180,262 197,549 192,108 Operating Expenses Advertising & Promotion 1,898 2,500 4,000 Supplies 528 409 500 Dues & Subscriptions 340 898 900 Employee Relations 11,476 16,931 20,000 Parking 60 60 50 Professional Development 465 10,271 8,500 Postage & Delivery - 190 100 Travel 2,858 2,021 2,500 Communication 514 391 500 Total Operating Expense 18,139 33,671 37,050 Total Department Expense (Direct Cost Only) 198,401 231,220 229,158 US Virgin Islands Economic Development Authority Human Resources Department Year End Financial Summary FY 16 Actual, FY 17 Projected, and FY 18 Budget $198,401 $231,220 $229,158 FY 16 Actual FY 17 Projection FY 18 Budget Human Resources Department Year End Financial Summary FY 16 Actual, FY 17 Projection, FY 18 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 1.5 LEGAL DEPARTMENT FUNCTIONAL STATEMENT The Legal Department provides a broad range of legal services that include providing legal analyses, preparing and reviewing legal documents, and conducting background investigations on prospective employees and EDC and EDB applicants. This department also provides legal and policy guidance to the USVIEDA’s Governing Board, drafts legislations, and develops rules and regulations consistent with legislative mandates. OPERATIONAL GOAL(S) Ensure that the organization is in compliance with all applicable laws, institute measures to prevent litigation and loss of assets, and to maintain the USVIEDA’s legal image of integrity, professionalism and fairness. FISCAL YEAR 2017 OBJECTIVES  Continue to enhance the quality of investigative reports by sharing criminal justice information using the National Crime Information Center database;  Continue efforts to secure expanded access to the Department of Licensing and Consumer Affairs’ database;  Coordinate professional training for Legal Department staff with the National Association of Professional Background Screeners or similar certifying entity;  Continue to explore software updates to enhance the processing of legal documents;  Continue to explore file management systems and record retention policies;  Continue to draft/amend USVIEDA Governing Board’s policies, resolutions, motions and orders;  Continue drafting/amending internal policies and procedures; and  Continue to prepare and review for legal sufficiency, agreements necessary to accomplish the mandates of the USVIEDA. FISCAL YEAR 2017 ACCOMPLISHMENTS AS OF MARCH 31, 2017  Worked with the Office of Collective Bargaining to amend and negotiate the Collective Bargaining Agreement between USVIEDA and United Steelworkers Local 8249 effective October 1, 2016 through September 30, 2021;  Reduced expenses by securing a lower rate for online research services;  Reduced expenses associated with legal publications;  Enhanced the quality of investigative reports by contracting with a new online research provider;  Obtained expanded access to the Department of Licensing and Consumer Affairs’ database;  Completed the promulgation of the STARS Rules and Regulations;  Drafted and fully executed a wide range of professional service contracts and lease agreements;  Drafted and amended USVIEDA internal policies and procedures;  Drafted and amended USVIEDA Governing Board resolutions, motions and orders; and  Prepared and reviewed statutory agreements necessary to accomplish the mandates of the USVIEDA. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 FISCAL YEAR 2018 OBJECTIVES  Coordinate the drafting of rules and regulations;  Provide staff training in investigative analysis, contract management, and legal best practices;  Draft and amend USVIEDA internal policies and procedures;  Draft and amend USVIEDA Governing Board resolutions, motions and orders;  Review and draft statutory agreements necessary to accomplish the mandates of the USVIEDA; and  Draft professional service contracts, leases and show cause orders for the USVIEDA and its subsidiary entities. Key Performance Indicators (KPI) Actual FY 16 Target FY17 Actual FY 17 (3/31/17) Planned FY 18 Number of rules and regulations drafted and/or promulgated n/a n/a 1 1 Number of professional contracts and leases reviewed, drafted and/or executed 17 n/a 20 17 Number of background investigations completed 46 30 24 30 Number of Board resolutions drafted 4 n/a 2 4 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 FY16-Actual Total Proj. Exp. FY18-Budget 10/1/15-9/30/16 10/1/16-9/30/17 10/1/17-9/30/18 Personnel Expenses Salaries - Classified 107,823 114,113 116,395 Salaries - Unclassified 110,846 115,500 202,810 Fica 13,557 15,023 19,791 Medicare 3,171 3,514 4,628 Group Insurance 25,719 26,632 37,127 Annual Leave Expense 4,096 - - Retirement 27,554 36,943 50,511 All Other 12,701 - Total Personnel Expense 292,765 324,426 431,262 Operating Expenses Supplies 614 - 500 Dues & Subscriptions 13,383 13,349 11,659 Catering Services 250 230 250 Employee Relations - 200 225 Postage & Delivery 33 21 50 Professional Development 8,643 5,000 4,500 Travel 1,591 1,086 1,500 Communication 568 733 1,000 Total Operating Expense 25,082 20,619 19,684 Total Department Expense (Direct Cost Only) 317,848 345,045 450,946 US Virgin Islands Economic Development Authority Legal Department Year End Financial Summary FY 16 Actual, FY 17 Projected, and FY 18 Budget $317,848 $345,045 $450,946 FY 16 Actual FY 17 Projection FY 18 Budget Legal Department Year End Financial Summary FY 16 Actual, FY 17 Projection, FY 18 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 1.6 MARKETING / PUBLIC RELATIONS DEPARTMENT FUNCTIONAL STATEMENT The key responsibilities of this department are to promote the U.S. Virgin Islands as the best place for businesses to relocate and to promote the many services that are being offered by the USVIEDA to local businesses and the general public. OPERATIONAL GOAL(S) Utilize various marketing tools to attract new businesses to the Territory, and to grow and expand local businesses operating in the Territory. FISCAL YEAR 2017 OBJECTIVES  Increase the number of EDC applications by 10% through various marketing initiatives;  Increase strategic advertising in key local sites and targeted media; and  Continue building marketing alliances that broaden USVIEDA’s outreach to increase awareness of the USVIEDA’s programs and offerings. FISCAL YEAR 2017 ACCOMPLISHMENTS AS OF MARCH 31, 2017  Promoted the U.S. Virgin Islands in five (5) marketing missions;  Initiated a local marketing campaign to increase awareness and educate the community about the USVIEDA’s programs and services,  Published the USVIEDA’s 2015 Annual Report;  Strategically placed ads in key national publications; and  Updated marketing materials and produced a new USVI Fast Facts Guide. FISCAL YEAR 2018 OBJECTIVES  Restructure the marketing department within the USVIEDA;  Use data mining technique to help make marketing decisions; and  Re-evaluate the USVIEDA’s Marketing and Strategic Plan. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 Key Performance Indicators (KPI) Actual FY 16 Target FY 17 Actual FY 17 (as 3/31/17) Planned FY 18 Number of targeted marketing events undertaken 9 10 4 12 Number of site visits made by potential EDC beneficiaries 5 20 7 20 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 FY16-Actual Total Proj. Exp. FY18-Budget 10/1/15-9/30/16 10/1/16-9/30/17 10/1/17-9/30/18 Personnel Expenses Salaries - Classified 46,706 49,626 50,619 Salaries - Unclassified - - 85,680 Fica 2,896 3,344 8,451 Medicare 677 782 1,976 Group Insurance 5,681 5,900 16,309 Annual Leave Expense (5,090) - - Retirement 9,575 10,173 23,702 All Other 4,302 Total Personnel Expense 60,446 74,127 186,736 Operating Expenses Advertising & Promotion 146,450 199,476 581,364 Bank Charges 60 600 500 Supplies 179 746 500 Catering Services 131 150 200 Dues & Subscription - 3,532 3,532 Employee Relations - 156 200 Postage & Delivery 1,715 5,093 5,000 Printing & Publication 2,025 9,750 8,000 Professional Services 59,284 197,802 205,000 Communication - 358 600 Travel 2,052 8,175 5,000 Total Operating Expense 211,895 425,836 809,896 Total Department Expense (Direct Cost Only) 272,341 499,963 996,632 FY 16 Actual, FY 17 Projected, and FY 18 Budget US Virgin Islands Economic Development Authority Marketing Department Year End Financial Summary $272,341 $499,963 $596,632 FY 16 Actual FY 17 Projection FY 18 Budget Marketing Department Year End Financial Summary FY 16 Actual, FY 17 Projection, FY 18 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 1.7 ECONOMIC DEVELOPMENT MANAGEMENT (EDM) FUNCTIONAL STATEMENT This unit acts as the General Fund for the organization. Operating revenues and indirect costs to include custodial and messenger services are accounted for in this department. OPERATIONAL GOAL(S) Allows for the efficient management of the general operation of the organization and for proper analysis of financial information for management decision-making purposes. FISCAL YEAR 2017 OBJECTIVES  Develop and implement procedures to increase accuracy of posting expenses to correct accounts;  Reduce indirect costs by at least 5% of amount budgeted through the process of analysis; and  Improve relations with service vendors by reducing payment delays and improving service levels. FISCAL YEAR 2017 ACCOMPLISHMENTS AS OF MARCH 31, 2017  Increased collaboration between budget and accounting resulted in improved data comparisons for financial and management analyses. FISCAL YEAR 2018 OBJECTIVES  Budget and accounting will work cooperatively to improve financial data reporting analyses. Key Performance Indicators (KPI) Actual FY 16 Target FY 17 Actual FY 17 (as of 3/31/2017) Planned FY 18 Percentage of times expenses posted incorrectly - - - 10% U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 FY16-Actual Total Proj. Exp. FY18-Budget 10/1/15-9/30/16 10/1/16-9/30/17 10/1/17-9/30/18 Personnel Expenses Salaries - Classified 57,552 59,366 60,553 Salaries - Unclassified 723 759 - Fica 3,525 4,051 3,754 Medicare 845 947 878 Group Insurance 15,873 20,925 20,818 Annual Leave Expense (1,753) - - *Retirement 1,424,028 12,326 12,413 All Other - 5,214 - Total Personnel Expense 1,500,793 103,588 98,417 Operating Expenses Advertising & Promotion 26,623 6,938 10,000 Auto Expense 14,637 17,125 15,000 Bank Charges 3,025 5,874 7,000 Employee Incentive Program - 25,000 25,000 Supplies 30,628 34,604 42,900 Unemployment Insurance 15,282 1,668 2,500 Labor 4,048 12,500 6,000 Catering Services 15,813 14,291 25,000 Custodial Services 19,333 34,185 40,000 Depreciation 181,259 - - Donations & Contributions 32,250 21,900 25,000 Drinking Water 1,952 972 1,200 Dues & Subscription 10,950 2,459 2,500 Employee Relations 11,011 14,599 6,000 Repairs 74,603 85,035 75,000 Postage & Delivery 10,899 12,832 12,000 Parking 129 200 600 Printing & Publication 9,086 9,700 10,000 Professional Development 10,287 19,778 15,000 Garbage Removal 675 600 1,000 Miscellaneous (37) 2,355 5,000 Insurance 51,612 58,750 52,000 Professional Services 296,329 248,268 287,000 Travel 3,739 22,535 17,000 Communication 54,682 67,409 60,000 Electrical 76,544 64,257 75,000 Water 1,226 1,200 1,200 Rent 241,670 248,046 268,279 Capital Outlay 120,518 79,443 60,000 Total Operating Expense 1,318,772 1,112,522 1,147,179 Total Department Expense (Direct Cost Only) 2,819,565 1,216,111 1,245,595 US Virgin Islands Economic Development Authority Indirect Cost Year End Financial Summary FY 16 Actual, FY 17 Projected, and FY 18 Budget *Not inclusive of the USVIEDA’s share of the unfunded liability in Fiscal Year 2016. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 $2,819,565 $1,216,111 $1,246,095 FY 16 Actual FY 17 Projection FY 18 Budget Economic Development Management Year End Financial Summary FY 16 Actual, FY 17 Projection, FY 18 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 2.0 USVIEDA OPERATIONAL DEPARTMENTS The operational departments within the USVIEDA are responsible for carrying out the organization’s mandates. 2.1 V.I. ECONOMIC DEVELOPMENT COMMISSION DIVISION FUNCTIONAL STATEMENT The Economic Development Commission (EDC) is charged with promoting the growth, development, and diversification of the economy of the United States Virgin Islands. The EDC is comprised of the Applications Department, which is the first point of contact for a business seeking to apply for economic development benefits, and the Compliance Department, which monitors beneficiaries to ensure that they comply with the terms and conditions of their agreements and other requirements of law. 2.1.1 APPLICATIONS DEPARTMENT OPERATIONAL GOAL(S) Review and analyze EDC applications and to provide support and advice to the USVIEDA’s Governing Board in its consideration of applicants’ requests for EDC benefits. FISCAL YEAR 2017 OBJECTIVES  Process a “completed” EDC application within forty-five (45) working days of receipt;  Review initial EDC applications within ten (10) working days and notify applicants within fifteen (15) working days of application status;  Submit notice to EDC applicants within ten (10) working days of Board decision meetings;  Complete EDC Application Client Survey form as part of the EDC inquiry and application process; and  Participate in community outreach programs such as: EDC 45th Anniversary Event, EDC Career Fair, other Target Markets, and Consultants Seminar. FISCAL YEAR 2017 ACCOMPLISHMENTS AS OF MARCH 31, 2017  Reviewed and analyzed ten (10) applications for economic development benefits: four (4) new, one (1) extension, four (4) extension/modification, and one (1) transfer;  Acquired an online survey tool to gauge applicants satisfaction of application process; and  Participated in VIEDC Practitioners’ Forum and VIEDC local media campaign initiatives. FISCAL YEAR 2018 OBJECTIVES  Process a “completed” application for EDC benefits within thirty (30) working days of receipts;  Review EDC applications within five (5) working days for completeness and notify applicant within ten (10) working days of application status;  Submit notice to VIEDC applicants within five (5) working days of Board decision meetings;  Participate in community outreach programs, informational and other marketing initiatives; and  Implement VIEDC Online Application Program. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 Key Performance Indicators (KPI) Actual FY 16 Target FY 17 Actual FY 2017 (as of 3/31/17) Planned FY 2018 Average number of days to complete analysis of an EDC application for Public Hearing 29 days 45 days 29 days 30 days Average number of days to complete analysis of an EDC application for EDC Decision Meetings 20 days 30 days 18 days 30 days Average number of days to process an Eligible VI Supplier application 29 days 30 days 6 days 14 days Percentage of time “complete” applications are processed on time n/a n/a n/a 100% Number of community outreach program 0 8 2 4 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 FY16-Actual Total Proj. Exp. FY18-Budget 10/1/15-9/30/16 10/1/16-9/30/17 10/1/17-9/30/18 Personnel Expenses Salaries - Classified 126,829 152,316 155,362 Salaries - Unclassified 80,616 84,000 85,680 Fica 12,862 9,369 14,945 Medicare 3,008 9,707 3,495 Group Insurance 30,794 38,722 37,127 Annual Leave (1,115) - - Retirement 33,531 46,410 45,174 All Other 14,995 Total Personnel Expense 286,524 355,519 341,783 Operating Expenses Advertising & Promotion 16,886 16,963 17,000 Supplies 955 500 800 Catering 1,432 1,500 1,500 Professional Development 478 6,000 6,000 Dues & Subscription 165 175 555 Parking 20 - - Postage & Delivery - 250 250 Printing & Publication - 1,250 1,250 Meeting Space Rental 1,600 1,300 1,600 Professional Services 15,154 19,718 - Software Agreement - - 10,788 Travel 4,007 1,581 4,800 Employee Relations 40 193 200 Communication 563 518 500 Miscellaneous 117 - - Total Operating Expense 41,416 49,947 45,243 Total Department Expense (Direct Cost Only) 327,940 405,466 387,026 US Virgin Islands Economic Development Authority EDC Applications Department Year End Financial Summary FY 16 Actual, FY 17 Projected, and FY 18 Budget $327,940 $405,466 $387,026 FY 16 Actual FY 17 Projection FY 18 Budget EDC Applications Department Year End Financial Summary FY 16 Actual, FY 17 Projection, FY 18 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 105 58 FY 16 FY 17 (as of 3/31/17) Number of Potential Job Opportunities (based on new EDC Applications) $4.4M $3M FY 16 FY 17 (as of 3/31/17) Minimum Potential Investment of EDC Companies (based on new EDC Applications) U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY EDC APPLICATIONS DEPARTMENT STATISTICAL DATA *Nine (9) of the 18 applications received for Fiscal Year 2016 were new applicants. *Four (4) of the nine (9) applications received for Fiscal Year 2017, as of March 31, were new applicants. $5.1M $2.5M FY 16 FY 17 (as of 3/31/17) Total Approximate Potential Wages of EDC Employees (based on new EDC Applications) *18 3 0 15 *9 2 0 7 Applications Received Applications Approved Applications Tabled/Denied Applications Pending EDC Applications Statistics FY 16 FY17 (as of 3/31/17) U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 2.1.2 COMPLIANCE DEPARTMENT FUNCTIONAL STATEMENT The Compliance Department helps to ensure the integrity of the Economic Development Program by assisting and ensuring that beneficiaries meet the requirements of their agreements. Beneficiaries reports that are not in compliance are reported to the EDC Governing Board, which has the legal authority to assess fines and penalties. OPERATIONAL GOAL(S) Build and maintain good relations with beneficiaries in ensuring that beneficiaries are adhering to the requirements of the program and to help in the retention of beneficiaries in the Territory. FISCAL YEAR 2017 OBJECTIVES  Host EDC beneficiary summits in both districts in August 2017;  Partner with the Applications Unit in upgrading the Cost Benefit Analysis Model;  Implement the EDC Compliance Handbook for Beneficiaries; and  Terminate inactive EDC beneficiaries and charge-off receivables. FISCAL YEAR 2017 ACCOMPLISHMENTS AS OF MARCH 31, 2017  Expedited multi-year compliance reviews that were in queue for modifications/extensions;  Distributed annual compliance report cards to ensure reporting requirements are met; and  Developed new billing procedure with the Division of Administration & Finance to address assessed penalties and fines. FISCAL YEAR 2018 OBJECTIVES  Complete EDC Compliance Handbook for Beneficiaries;  Conduct triennial beneficiary compliance reviews; and  Close-out forty (40) inactive beneficiary cases. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 KEY PERFORMANCE INDICATORS (KPI) Actual FY 16 Target FY17 Actual FY 2016 (as of 3/31/17) Planned FY 18 Number of compliance reviews completed 22 30 12 48 Percentage of non-compliance cases resolved 72% 80% 70% 85% Number of inactive cases closed 1 8 1 15 EDC Beneficiary retention rate - - 83% 100% U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 0 10 20 30 40 FY14 FY15 FY16 FY17 (as of 3/31/17) 33 11 22 12 Economic Development Commission No. of Compliance Reviews U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY EDC COMPLIANCE DEPARTMENT STATISTICAL DATA U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 $531,337 $700,273 $670,835 FY 16 Actual FY 17 Projection FY 18 Budget EDC Compliance Department Year End Financial Summary FY 16 Actual, FY 17 Projection, FY 18 Budget Operating Personnel Total FY16-Actual Total Proj. Exp. FY18-Budget 10/1/15-9/30/16 10/1/16-9/30/17 10/1/17-9/30/18 Personnel Expenses Salaries - Classified 284,233 342,023 336,613 Salaries - Unclassified 75,577 78,750 80,325 Fica 22,308 17,041 25,850 Medicare 5,217 16,885 6,046 Group Insurance 37,247 46,034 44,439 Annual Leave Expense 4,180 - - Retirement 71,011 81,868 81,212 All Other 22,710 - Total Personnel Expense 499,774 605,311 574,485 Operating Expenses Advertising & Promotion 14,379 47,537 40,000 Supplies 274 508 500 Labor - 29,064 38,000 Dues & Subscription - 1,250 1,750 Employee Relations 5 250 600 Postage & Delivery 60 80 250 Parking 62 80 - Printing & Publication - 750 1,000 Professional Development - 800 9,000 Professional Services 10,570 10,175 - Travel 5,878 4,131 4,500 Communication 335 338 750 Total Operating Expense 31,563 94,963 96,350 Total Department Expense (Direct Cost Only) 531,337 700,273 670,835 EDC Compliance Department Year End Financial Summary FY 16 Actual, FY 17 Projected, and FY 18 Budget US Virgin Islands Economic Development Authority U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 2.2 ECONOMIC DEVELOPMENT BANK (EDB) FUNCTIONAL STATEMENT The Government Development Bank and the Small Business Development Agency were merged and renamed the Economic Development Bank (EDB). The EDB provides loan guarantees and equity infusion to help minority, small, and medium-sized businesses to maintain economic stability and grow into mainstream commercial banking customers. The EDB also works with local commercial banks by providing loan guarantees, thereby reducing the risks to the banks. OPERATIONAL GOAL(S) Assist small and medium sized businesses by providing capital, and technical and managerial assistance to ensure viability and thereby facilitating employment growth and opportunities. FISCAL YEAR 2017 OBJECTIVES  Reduce the loan delinquency rate by 10% through aggressive collection efforts, including legal actions, loan restructuring, modifications, and reclassifications;  Increase the number of loans approved to 20 and loan guarantees by $1.8M;  Provide professional development training to staff in the areas of credit administration and collections;  Partner with local banks to increase the number of loans through the State Small Business Credit Initiative (“SSBCI”) Program;  Collaborate with other related government agencies to promote loan programs and services; and  Implement Phase II of the Sun Power Energy Program in conjunction with the Energy Office. FISCAL YEAR 2017 ACCOMPLISHMENTS AS OF MARCH 31, 2017  Reduced the loan delinquency rate by 4.3 percent;  Approved $1.8M in new loans/guarantees;  Received training in Portfol, lending best practices, and customer service;  Hosted Lender Conferences; and  Collaborated with local partners to inform the community of the EDB’s products and services. FISCAL YEAR 2018 OBJECTIVES  Reduce the delinquency rate to at least 47% of the loan portfolio;  Increase the loan portfolio at least by $1.8M in credit quality loans and guarantees;  Provide professional development training for staff in credit administration and collections;  Continue partnering with local banks to promote the SSBCI Loan Program; and  Continue collaborating with other related government agencies to promote loan programs and services. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 Key Performance Indicators (KPI) Actual FY 16 Target FY 17 Actual FY 17 (as of 3/31/17) Planned FY 18 Loan Delinquency rate (%) 47% 50% 75% 47% Dollar value of loan payments $976K $1M $927K $1M Dollar value of loans and guarantees approved $7.2M $2M $1.5M $3.9M U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 35 68 12 92 33 93 127 101 105 FY 15 FY 16 FY 17 (as of 3/31/17) EDB Loan Portfolio Current versus Delinquent Loans (#) FY 2015 - FY 2017 No. of Current Loans No. of Delinquent Loans U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY ECONOMIC DEVELOPMENT BANK (EDB) STATISTICAL DATA $2,377,064 $2,297,797 $1,129,641 $2,666,484 $1,998,823 $3,390,642 $5,043,548 $4,296,620 $4,520,283 FY15 FY16 FY17 (as of 3/31/17) EDB Loan Portfolio Current versus Delinquent ($ Value of Loans) FY 2015 - FY 2017 $ Value of Current Loan Portfolio $ Value of Delinquent Loans U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY ECONOMIC DEVELOPMENT BANK (EDB) STATISTICAL DATA 81% 77% 77% 76% 55% 53% 47% 75% FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 2016 FY 2017 (as of 3/31/17) Total EDB Portfolio Delinquency Rate (%) FY 2010- FY 2017 $1,076,756 $738,540 $412,290 $292,479 753 loans 737 loans 606 loans 550 loans FY14 FY15 FY16 FY17 (as of 3/31/17) EDB Sun Power Loan Portfolio Dollar Value and Number of Loans FY 2014 - FY 2017 $ Value of Current Loan Portfolio No. of Loans U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY ECONOMIC DEVELOPMENT BANK (EDB) STATISTICAL DATA $2,298,000 $4,210,167 $9,631,697 $9,672,497 24 loans 31 loans 31 loans 32 loans FY14 FY15 FY16 FY17 (as of 3/31/17) EDB State Small Business Credit Initiative Dollar Value and Number of Loans FY 2014 - FY 2017 $ Value of Current Loan Portfolio No. of Loans U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 FY16-Actual Total Proj. Exp. FY18-Budget 10/1/15-9/30/16 10/1/16-9/30/17 10/1/17-9/30/18 Personnel Expenses Salaries - Classified 260,359 246,668 229,475 Salaries - Unclassified 152,162 145,180 137,088 Fica 25,576 26,180 22,727 Medicare 5,981 6,123 5,315 Group Insurance 50,984 47,360 43,049 Annual Leave Expense (836) - Retirement 71,163 69,781 69,787 All Other 30,409 - Total Personnel Expense 565,390 571,701 507,440 Operating Expenses Advertising & Promotion 5,159 5,777 6,000 Bank Charges 202 - - Supplies 645 1,198 1,500 Catering 324 500 500 Credit Report 1,981 1,682 1,682 Drinking Water 24 - - Dues & Subscriptions 325 300 300 Employee Relations - 386 675 Courier Service 8,875 9,470 8,400 Postage & Delivery 216 150 600 Parking 10 50 100 Professional Development 5,514 6,444 9,000 Software Agreement 3,600 11,300 11,300 Insurance 8,130 8,130 8,130 Professional Services 98,616 96,000 91,000 Travel 2,643 4,500 4,500 Communication 1,031 921 1,000 Total Operating Expense 137,296 146,807 144,687 Total Department Expense (Direct Cost Only) 702,686 718,508 652,128 Economic Development Bank Year End Financial Summary FY 16 Actual, FY 17 Projected, and FY 18 Budget US Virgin Islands Economic Development Authority $700,686 $718,508 $652,128 FY 15 Actual FY 16 Projection FY 17 Budget Economic Development Bank Year End Financial Summary FY 15 Actual, FY 16 Projection, FY 17 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 2.2.1 INCUBATOR PROGRAM FUNCTIONAL STATEMENT The Incubator Program helps new and start-up businesses to develop into full-fledged businesses by providing services such as management training and office space so that they can grow and contribute to the economic development of the Territory. OPERATIONAL GOAL(S) Engage, support, and assist entrepreneurs to build sustainable businesses throughout the Territory. FISCAL YEAR 2017 OBJECTIVES  Host the Young CEO Camp;  Work collaboratively with the Small Business Development Center to present entrepreneurial workshops and seminars;  Create an Angel Investor Network as a means of providing investment capital for startups and established businesses seeking to expand; and  Manage the USVIEDA’s $2M Disaster Loan Fund. FISCAL YEAR 2017 ACCOMPLISHMENTS AS OF MARCH 31, 2017  Assisted over 20 entrepreneurs in the following sectors, manufacturing, consumable products, engineering, aquaponics, and hydroponics;  Fostered a renewed partnership with the Small Business Development Center (SBDC) and Small Business Agency;  Referred five (5) clients to Economic Development Bank (EDB) for financing; and  Referred one (1) client to Economic Development Commission for EDC benefits. FISCAL YEAR 2018 OBJECTIVES  Host a Young CEO Camp in both the St. Thomas-St. John and St. Croix districts;  Assist and refer at least ten (10) clients to EDB financing;  Assist and refer at least two (2) clients to EDC for EDC benefits; and  Apply for grants to supplement the Incubator Program. KEY PERFORMANCE INDICATORS (KPI) Actual FY 16 Target FY17 Actual FY 2017 (as of 3/31/17) Planned FY 18 Number of entrepreneurs assisted 25 30 23 20 Number of businesses in developing industries 10 5 5 5 Number of businesses developed into full fledged businesses 2 2 1 4 Number of seminars and workshops held 0 4 0 4 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 FY16-Actual Total Proj. Exp. FY18-Budget 10/1/15-9/30/16 10/1/16-9/30/17 10/1/17-9/30/18 Personnel Expenses Salaries - Classified 34,410 40,690 41,503 Salaries - Unclassified 54,332 69,076 70,457 Fica 5,502 7,334 6,942 Medicare 1,287 1,451 1,623 Group Insurance 14,496 16,256 16,309 Annual Leave Expense 269 - - Retirement 18,192 21,694 21,833 All Other 8,527 - Total Personnel Expense 128,490 165,028 158,668 Operating Expenses Advertising & Promotion - 3,500 3,500 Supplies - 1,500 1,500 Professional Development - 3,000 3,000 Meeting Space Rental - 1,500 1,500 Professional Services 2,007 7,000 7,000 Miscellaneous 3,076 - - Travel 365 840 500 Communication - 3,250 3,250 Utilities - 4,750 4,750 Total Operating Expense 5,448 25,340 25,000 Total Department Expense (Direct Cost Only) 133,937 190,368 183,668 FY 16 Actual, FY 17 Projected, and FY 18 Budget Incubator Program Year End Financial Summary US Virgin Islands Economic Development Authority $133,937 $190,368 $183,668 FY 16 Actual FY 16 Projection FY 17 Budget Incubator Program Year End Financial Summary FY 16 Actual, FY 17 Projection, FY 18 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 2.3 ENTERPRISE ZONE COMMISSION FUNCTIONAL STATEMENT The Enterprise Zone Commission (“EZC”) Division is responsible for the revitalization of designated blighted and severely distressed areas in the U.S. Virgin Islands that were once social and economically vibrant communities. The EZC provides tax incentives and economic development benefits and helps to reduce fiscal and regulatory constraints that hinder economic growth. In addition, this division also encourages collaboration between public, private, and non-profit entities in support of economic growth and development. OPERATIONAL GOAL(S) Promote economic growth through revitalizations and business expansion opportunities utilizing public/private partnerships to create jobs, sustain community self-sufficiency and involvement. FISCAL YEAR 2017 OBJECTIVES  Host an International Business Expo;  Complete the goals of the EZC 5-Year Strategic Plan; and  Implement core provisions of the EZC Section of the Community and Town Plans to include marketing, application analysis, and program compliance. FISCAL YEAR 2017 ACCOMPLISHMENTS AS OF MARCH 31, 2017  Completed town plan for Savanne-Downstreet;  Hosted activities with Danish students and funders of the revitalization of two (2) anchor buildings within the Enterprise Zones;  Approved five (5) applications for the Scrape, Paint, and Rejuvenate Program;  Submitted a grant request to the Historic Preservation Office for scrape, paint, rejuvenate projects within the zones;  Hosted two (2) business-to-business events;  Approved one (1) application for EZ tax credits;  Held an open house at the Agriculture Fair in St. Croix; and  Completed 40 compliance reports covering 53 years of combined beneficiary activity. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 FISCAL YEAR 2018 OBJECTIVES  Complete eight (8) scrape & paint, two (2) rehabilitation, and four (4) board-up projects;  Conduct the EntrepreNow program and a community building presentation within each of the schools in the zones;  Conduct an Estate Planning Seminar to provide the latest trends in estate and long-term care planning;  Conduct open house events to provide information about the resources available through the EZC, its partners and stakeholders;  Actively promote the EZC tax incentive program and strengthen the compliance component; and  Conduct a beneficiary conference, USVIEDA Expo, and Business-to-Business event. KEY PERFORMANCE INDICATORS (KPI) Actual FY 16 Target FY17 Actual FY 2017 (as of 3/31/17) Planned FY 18 Number of collaborative events 8 11 4 12 Number of rehabilitated properties 0 9 2 10 Number of properties boarded up (for safety concerns) 0 2 1 4 Number of public meetings held towards revitalization 1 2 1 3 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 U.S. VIRGIN ISLAND ECONOMIC DEVELOPMENT AUTHORITY ENTERPRISE ZONE COMMISSION (EZC) STATISTICAL DATA $154,511 $266,812 $166,629 FY 2014 FY 2015 FY 2016 Dollar Value of Beneficiaries' Investments U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 FY16-Actual Total Proj. Exp. FY18-Budget 10/1/15-9/30/16 10/1/16-9/30/17 10/1/17-9/30/18 Personnel Expenses Salaries - Classified 97,798 139,503 146,706 Salaries - Unclassified 90,692 94,500 96,390 Fica 11,686 15,098 15,072 Medicare 2,733 3,531 3,525 Group Insurance 16,134 25,353 26,740 Annual Leave (19,308) - Retirement 26,936 40,989 43,400 All Other 9,515 - Total Personnel Expense 226,673 328,489 331,832 Operating Expenses Advertising & Promotion 9,218 6,761 7,000 Supplies 780 978 1,000 Dues & Subscription - 932 - Labor 2,889 1,200 - Catering Services 3,144 1,932 - Employee Relations 119 365 500 Parking 2 20 - Printing & Publication 280 2,058 3,500 Professional Development - 4,750 8,000 Miscellaneous 17,680 23,212 25,000 Meeting Space Rental 300 2,100 - Professional Services 12,865 10,375 10,000 Travel 7,379 3,677 3,000 Communication 848 358 500 Total Operating Expense 55,503 58,718 58,500 Total Department Expense (Direct Cost Only) 282,176 387,207 390,332 US Virgin Islands Economic Development Authority Enterprise Zone Commission Year End Financial Summary FY 16 Actual, FY 17 Projected, and FY 18 Budget $282,176 $387,207 $390,332 FY 16 Actual FY 17 Projection FY 18 Budget Enterprise Zone Commission Year End Financial Summary FY 16 Actual, FY 17 Projection, FY 18 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 2.4 ECONOMIC DEVELOPMENT PARK CORPORATION FUNCTIONAL STATEMENT The Economic Development Park Corporation (“EDPC”) is chartered as a public corporation to acquire and operate industrial parks in the U.S. Virgin Islands to complement activities of the Economic Development Commission (“EDC”). The EDPC is self-supported by revenues it generates from its tenants. The EDPC has two locations, one on St. Croix known as William D. Roebuck Industrial Park and the other on St. Thomas located in Estate Contant. OPERATIONAL GOAL(S) Support economic development by offering space for commercial use for rent; and to maintain and upgrade the facilities to retain and attract tenants. FISCAL YEAR 2017 OBJECTIVES  Develop and implement a five-year capital project budget;  Complete a micro-grid investment audit of the William D. Roebuck Industrial Park;  Lease 75% of rentable space; and  Work with tenants in fostering good relations. FISCAL YEAR 2017 ACCOMPLISHMENTS AS OF MARCH 31, 2017  Substantial completion of the planned capital improvement projects for FY 2017;  Negotiating leases with several prospective tenants;  Aggressively marketing the Park thus increasing the number of rental inquires and site visits; and  Enhanced tenant satisfaction through improved communication and responsiveness. FISCAL YEAR 2018 OBJECTIVES  Complete a micro-grid investment audit of the William D. Roebuck Industrial Park;  Lease 75% of rentable space; and  Work with tenants in fostering good relations. Key Performance Indicators (KPI) Actual FY 16 Target FY 17 Actual FY 17 (as of 3/31/17) Planned FY 18 Number of capital projects completed 1 6 5 3 Percentage of rentable space occupied 50% 75% 43% 75% U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 75% 43% 50% 100% 36% 43% 0% 20% 40% 60% 80% 100% St. Thomas Industrial Park William D. Roebuck Industrial Park (St.Croix) Combined Park Occupancy Tenant Occupancy Rates (Percentages) FY 2017 (as of 3/31/17) FY 2016 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 Government Allotment $5,482,865 88.26% EDC Transfer, $703,515 11.32% Loan Fees $6,500 , .10% Interest Income, $15,000, .24% Other Income, $5,000, .08% USVIEDA Revenue $730,015 , 11.74% Fiscal Year 2018 Budgeted Revenues from Operating Activities 3.0 FINANCIAL INFORMATION 3.1 REVENUES The USVIEDA’s revenue is derived from two (2) primary sources: government allotments and internally generated revenues. Internally generated revenues include EDC activation, application, and compliance fees received from beneficiaries. These amounts are deposited into the EDC Industrial Promotion Fund and annually, an amount is transferred from this fund to help support the EDC budget. Other internally generated revenues consist of non-restricted interests from interest bearing accounts and amounts received in loan originating and loan application fees. Actual Actual Total Proj. Budgeted FY16 10/1/16-3/31/17 4/1-9/30/17 FY17 FY18 Revenues Interest Income 10,251 582 9,669 10,251 10,000 Loan Fees 35,467 3,558 3,500 7,058 7,000 Transfer: Promotion Fund 505,000 703,515 - 703,515 703,515 Other 29,531 4,693 5,000 9,693 9,500 Total 580,248 712,348 18,169 730,517 730,015 Plus: Government Allotment 4,800,000 2,310,987 3,007,392 5,318,379 5,882,865 Total Budgeted Revenue 5,380,248 3,023,335 3,025,562 6,048,896 6,612,880 Projected U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 3.2 EXPENDITURE COMPARISONS FOR FY16, FY17 PROJECTED AND FY18 BUDGETED DEPARTMENT/AGENCY/OFFICE NAME: Actual Actual Expenditures Proj. Expenditures Total Proj. Expenditures PROJECTED Fiscal Period 2016 10/1/16-3/31/17 4/1-9/30/17 FY 2017 Budget 2018 PERSONNEL SERVICES CLASSIFIED EMPLOYEE SALARIES 1,424,071 756,680 849,024 1,605,704 1,607,544 UNCLASSIFIED EMPL. SALARIES 1,064,841 495,050 624,731 1,119,780 1,354,098 TEMP/PART TIME SALARIES OVERTIME SALARIES LUMP SUM PAYMENTS NIGHT DIFFERENTIAL COMP OTHER DIFFERENTIAL COMP FEES & COMPENSATION NOC HOLIDAY PAY ALL OTHER (27,844) 161,069 - 161,069 - SUB-TOTAL 2,461,067 1,412,798 1,473,755 2,886,553 2,961,642 CAPITAL OUTLAYS MACHINIERY & EQUIPMENT 120,518 14,443 65,000 79,443 60,000 VEHICLES ALL OTHER SUB-TOTAL 120,518 14,443 65,000 79,443 60,000 FRINGE BENEFITS EMPLOYER CONTR. RETIREMENT 1,801,816 216,750 268,742 485,491 531,974 F.I.C.A. 153,711 86,935 74,855 161,790 183,622 MEDICARE 36,089 20,486 37,623 58,108 42,944 HEALTH INSURANCE PREMIUM 263,386 145,890 151,830 297,720 335,370 WORKERS COMP. PREMIUMS UNIFORM ALLOWANCE ALL OTHER SUB-TOTAL 2,255,002 470,061 533,049 1,003,110 1,093,909 - SUPPLIES - OFFICE SUPPLIES 37,668 18,283 24,724 43,007 51,500 OPERATING SUPPLIES SMALL TOOLS/MINOR EQUIPMENT ALL OTHER - SUB-TOTAL 37,668 18,283 24,724 43,007 51,500 - OTHER SERVICES & CHARGES - PROFESSIONAL SERVICES 497,137 258,767 331,875 590,642 601,000 COMMUNICATION 64,288 37,579 43,544 81,122 76,900 TRAVEL 57,808 56,292 52,513 108,805 91,000 TRANSPORTATION - NOT TRAVEL ADVERTISING AND PROMOTION 222,613 93,447 196,004 289,451 668,864 PRINTING AND BINDING 11,391 5,008 18,500 23,508 23,750 INSURANCE 59,742 7,525 59,355 66,880 60,130 REPAIRS AND MAINTENANCE 74,853 45,035 40,000 85,035 75,000 RENTAL- LAND/BUILDING 241,670 123,046 125,000 248,046 268,279 RENTAL - MACHINES/EQUIPMENT TRAINING 70,953 66,233 66,750 132,983 142,500 SECURITY ALL OTHER 244,302 167,563 177,290 344,853 362,206 SUB-TOTAL 1,544,758 860,495 1,110,831 1,971,325 2,369,629 - UTILITY SERVICES - ELECTRICITY 76,544 29,257 35,000 64,257 75,000 WATER 1,226 - 1,200 1,200 1,200 SUB-TOTAL 77,770 29,257 36,200 65,457 76,200 - TOTAL EXPENSES 6,496,783 2,805,337 3,243,559 6,048,896 6,612,880 Appropriation/Allotment 4,800,000 2,310,987 3,007,392 5,318,379 5,882,865 EDA Revenue 580,248 712,348 18,169 730,517 730,015 Total Projected (Actual) Revenues 5,380,248 3,023,335 3,025,561 6,048,896 6,612,880 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 3.3 PROFESSIONAL SERVICES BREAKDOWN IN DETAIL Audit Fees 10% Collection Agencies (Lending) 8% Marketing 34% IT Services 9% Legal Fees 21% Stenographer 7% Website Maintenance 4% Other 7% Professional Services 2018 Budgeted Expenses Actual Actual Projected Total Proj. Budgeted FY16 10/1/16-3/31/17 4/1-9/30/17 FY17 FY18 Professional Services Audit Fees 60,000 - 60,000 60,000 60,000 Collection Agencies 47,071 21,564 23,000 44,564 46,000 IT Services 51,508 22,197 28,000 50,197 53,000 Legal Fees 131,896 62,160 61,000 123,160 127,000 Marketing 106,201 100,402 95,000 195,402 205,000 Stenographer 35,511 16,779 25,000 41,779 42,000 Website Maintenance 25,500 10,875 15,125 26,000 26,000 Other 39,450 24,791 24,750 49,541 42,000 Total Budgeted Revenue 497,137 258,767 331,875 590,642 601,000 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 3.4 PERSONNEL SERVICE COST BREAKDOWN BY DEPARTMENT AND CLASSIFICATION Personnel cost is the single largest component of the Authority’s operating budget, representing approximately sixty-five percent (65%) of the total operating expenses. FY 2018 Personnel Cost by Department Department Positions (#) Unclassified ($) Positions (#) Classified ($) Total Positions (#) Total Salary ($) Accounting 1 96,390 5 271,208 6 367,598 Administration 0 0 2 60,553 2 60,553 Application 1 85,680 3 155,362 4 241,042 Board 1 62,225 0 - 1 62,225 Compliance 1 80,325 6 336,613 7 416,938 EZC 1 96,390 3 146,706 4 243,096 Executive 4 359,405 4 134,019 8 493,424 HR 1 77,648 1 65,092 2 142,739 Incubator 1 70,457 1 41,503 2 111,961 Legal 2 202,810 2 116,394 4 319,204 EDB 2 137,088 4 229,475 6 366,563 Marketing 1 85,680 1 50,619 2 136,299 Total 16 1,354,098 32 1,607,544 48 2,961,642 Accounting 13% Administration 2% Application 8% Board 2% Compliance 15% EZC 8% Executive 17% HR 5% Incubator 4% Legal 8% EDB 13% Marketing 5% Personnel Service Costs by Department (Percentage) U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 Economic Development Bank 12% Applications 7% Compliance 11% Enterprise Zone 6% Legal 6% Human Resources 4% Admin. & Finance 9% Executive Office 9% Board 2% Marketing 10% Incubator Program 3% EDM Cost 21% 2018 EDA Budgeted Expenses by Units 3.5 BUDGET SUMMARY  FY 2018 budgeted revenue is $6,612,880. o Internally generated revenue is $730,015. o Recommended appropriation is $5,882,865.  FY 2018 budgeted expenses total $6,612,880. Division / Department Personnel Costs Operating Expense Total Economic Development Bank 507,440 $ 144,687 $ 652,128 $ EDC Applications Department 341,783 $ 45,243 $ 387,026 $ EDC Compliance Department 574,485 $ 96,350 $ 670,835 $ Enterprise Zone Commission 331,832 $ 58,500 $ 390,332 $ Legal Department 431,262 $ 19,684 $ 450,946 $ Human Resources 192,108 $ 37,050 $ 229,158 $ Administration & Finance 515,136 $ 30,223 $ 545,359 $ Executive Office 637,921 $ 49,170 $ 687,091 $ Board of Directors 79,763 $ 94,347 $ 174,110 $ Marketing Department 186,736 $ 809,896 $ 996,632 $ Incubator Program 158,668 $ 25,000 $ 183,668 $ EDM - Indirect Cost 98,417 $ 1,147,179 $ 1,245,595 $ Total Fiscal Year 2016 Budgeted Expense 4,055,551 $ 2,557,328 $ 6,612,880 $ U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 V. SUPPLEMENTAL INFORMATION This section of the budget presents additional information to assist management, the public and outside users in gaining a better understanding of the operations of the organization and to provide selected historical data for comparisons. The major components of this section consist of charts, tables, and graphs presenting: revenue, expense, and operating information. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 VEHICLE LISTING Presently, the USVIEDA has nine (9) vehicles. Eight (8) were purchased with USVIEDA funds and one (1) with Economic Development Park Corporation funds. Year Make Model Assigned Use Fund Source Island 2007 Toyota Rav4 Executive - USVIEDA USVIEDA Fund St. Thomas/St. John District 2007 Toyota Rav4 General USVIEDA Fund St. Thomas/St. John District 2007 Toyota Rav4 General USVIEDA Fund St. Croix District 2007 Toyota Rav4 General USVIEDA Fund St. Croix District 2013 Chevrolet Traverse Executive - USVIEDA USVIEDA Fund St. Thomas/St. John District 2015 Chevrolet Colorado General USVIEDA Fund St. Thomas/St. John District 2015 Chevrolet Equinox Park Superintendent USVIEDA Fund St. Croix District 2016 Chevrolet Traverse Executive - USVIEDA USVIEDA Fund St. Croix District 2016 Chevrolet Colorado General EDPC Fund St. Croix District REAL PROPERTY LEASED Lessor Address Sq. Ft. Annual Rent Lease Terms Use B&W Realty Investments, Ltd. Nisky Shopping Center Second Floor, Suite 620 St. Thomas 6,800 $182,048 5 Years Office Space VI Economic Development Park Corp. 116 King Street Frederiksted, St. Croix 4,088 $49,464 Month to Month Office Space Crown Holdings 18B-2 Lindberg Bay St. Thomas 2,000 $17,229 5 Years Storage Space U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 PERSONNEL STATISTICS FY 2014 FY 2015 FY 2016 FY 2017 Projected FY 2018 Budgeted 43 49 46 49 48 Budgeted Position, FY 2014 - FY 2018 3,134,197 3,446,700 4,716,069 FY 2014 FY 2015 FY 2016 Comparison of Personnel Service Cost (Actual) FY 2014 - FY 2016 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 58% 59% 73% FY 2014 FY 2015 FY 2016 Salaries as Percentage of Total Operating Cost (FY 2014 - FY 2016) U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 APPROPRIATION AND ALLOTMENT COMPARISON FY14 FY15 FY16 FY17 Projected $4.72 $4.93 $4.8 $5.4 $4.48 95% $4.84 98% $4.8 100% $5.32 97% Appropriation and Allotment Comparisons Historical Data (FY 2014 - FY 2017) Appropriation Allotment U.S. Virgin Islands Economic Development Authority – Fiscal Year 2018 GLOSSARY OF SELECTED TERMS Budget: An estimate of income and expenditure in the planning, monitoring, and evaluation of financial activities. Capital Outlay: Expenditures made for the acquisition of assets that exceed $500 in cost and has a service life of more than a year. Direct Cost: A cost that can be identified or traced with relative ease and a high degree of accuracy to a particular Unit. Fringe Benefits: The various types of non-wage compensations such as retirement contributions, F.I.C.A., health insurance, and uniform allowance provided to employees. Insurance: Cost to cover the risk of a contingency or uncertain loss and include personal injury, directors’ and officers’ liability and auto. Indirect Costs: A cost incurred in common with other Units that cannot be traced to any one particular Unit. Key Performance Indicator (KPI): A quantitative or qualitative factor that measures program results against planned outcomes. Personnel Service: The gross salary amounts paid to full-time, part-time, and temporary employees. Professional Development: Employer sponsored training to improve or enhance employees’ job-related skills. Costs include airfare, hotel accommodation, and registration fees. Rent: Compensation paid for the use of office or storage space. Repairs and Maintenance: Costs incurred to maintain or upkeep buildings and equipment in good working conditions. Office Supplies: All materials required by employees to perform their daily tasks. Examples include pens, paper and other stationery items. Travel: Costs of airfare, ferry service, per diem, ground transportation, and hotel accommodations for employees travel between islands. Utilities: This expense includes electricity, water, telephone, cell phones, and internet service costs.