No Audits, No Increase

“Sunlight is said to be the best of disinfectants.” – Justice Louis Brandeis 

The Virgin Islands Port Authority wants to raise fees — again. They’re asking residents and businesses to dig deeper into their pockets, stating that the increases are necessary to keep operations running smoothly, particularly on St. John.

The proposal, set to take effect in early 2026, would increase a range of marine and cargo-related fees across the territory. Docking fees for non-cruise vessels would jump from $1 to $2.50 per foot — a 150% increase. Parking rates at Red Hook would rise from $12 to $15 for a four-hour stay and from $175 to $250 for monthly tenants. New charges would be added for cargo staging, long-term parking, and even a $2 per-passenger fee at the Red Hook barge ramp. Altogether, VIPA expects to collect approximately $5 million per year in new revenue to fund maintenance and capital projects, including the purchase of new cranes, dock repairs, and dredging at several ports.

When I first heard about the proposed fee increases, I wanted to be fair. As an engineer and financial services consultant, one of the things I do for a living is help utilities set rates. I understand that costs rise, infrastructure ages, and revenues must keep pace with inflation and maintenance. I looked at this proposal objectively, considering both sides and giving VIPA the benefit of the doubt. However, the information provided at the meeting seemed one-sided. Whenever you’re evaluating a business — whether public or private — you need to examine revenues and expenses in tandem. There was plenty of talk about the need for additional revenue and ambitious capital projects, but minimal discussion about how our money is being spent on an ongoing basis.  

During the public meeting on St. Croix on Wednesday, October 8th, the Executive Director, Carlton Dowe, repeatedly stated that the agency is transparent and that all information is available on their website. So, immediately following the meeting, I went there myself to review the numbers. And what I found shocked me: the Port Authority hasn’t produced an audited financial statement since fiscal year 2021—four years without an audit. For a government entity handling hundreds of millions of dollars in public funds — that’s not transparency. That’s negligence.

An audit is an independent examination that verifies whether the financial statements accurately reflect the financial position of an entity. For government agencies that manage airports, the Federal Aviation Administration (FAA) requires annual audited financial statements as part of its grant assurances. Those audits ensure that federal funds are used correctly and that an airport authority is financially stable enough to operate safely. In short, audits aren’t just paperwork — they’re how the public knows the numbers are real.

If you’re afraid to open your books to independent auditors, why should the public trust anything you’re saying about profits, losses, or the need for higher fees? Does VIPA require additional funding to cover its increasing administrative expenses? What is our money spent on? Are any of VIPA’s financial claims even real? 

It’s common sense. This is like walking into a bank and asking for a loan — but refusing to show your tax returns. No responsible lender would approve that request. Yet somehow, we’re asked to do the equivalent as taxpayers.

What the Numbers Reveal

To better understand what’s really driving these fee increases, I reviewed the Port Authority’s most recent published financial statements, specifically for fiscal year 2021, the last year for which an audit is available. What I found only deepened my concern.

VIPA’s total operating expenses that year were $87 million, and of that, roughly $46 million — more than half — went to payroll and benefits. Based on their own staffing levels, that works out to an average employee cost of around $110,000 per year. That’s an extraordinary figure for a government agency that claims it can’t afford to maintain air conditioning in St. Croix’s terminal.  

Making matters worse, between 2019 and 2021, payroll increased from $36 million to $46 million — a 28% rise — despite a relatively stable employee headcount. Over that same period, operating revenue fell by nearly 25%, from $64 million to $49 million. In other words, VIPA was paying more and producing less — an unmistakable sign of structural inefficiency. In the private sector, such payroll growth would trigger a board-level review. In the public sector, it should spark legislative scrutiny. At a minimum, it demands explanation before any new fees are imposed on the public.

In fiscal year 2021, it should not come as a surprise that, due to all the spending, VIPA posted an operating loss of nearly $38 million. The only reason the books balanced was because of one-time federal grants and hurricane insurance payouts — non-recurring windfalls that masked the agency’s actual financial condition.

Based on the most recent snapshot of VIPA’s financial performance, it’s clear that we need to take a step back and truly understand what’s going on. Before we talk about fee hikes or grand new projects, we need to start with something more fundamental — financial audits.

Let’s start with truth in numbers. Annual financial audits are not optional; they are the foundation of credibility. You can’t talk about growth when you can’t even show the books.

How Efficient Is VIPA?

When a public agency asks for more money, the real question isn’t how much — it’s how efficiently are you spending what you already have?

VIPA operates with roughly 323 employees across three islands and reported about $49 million in revenue in its last audited year. That works out to approximately $152,000 in revenue per employee — before accounting for operating losses.

Now compare that with similar-sized mainland port authorities.

• JAXPORT (Jacksonville, Florida) employs about 182 people and generates roughly $70 million in annual revenue — or $385,000 per employee.
• The Port of Palm Beach, Florida, a much smaller port by traffic volume, employs 59 full-time staff members and generates approximately $27 million in revenue, or $457,000 per employee.
• Port Everglades, Florida, generates over $150 million annually, more than double VIPA’s revenue, while operating at a consistently audited surplus.

Even acknowledging that VIPA manages multiple islands and facilities, the comparison still raises complex questions. Why does an agency with fewer vessels, smaller terminals, and lighter cargo volume need nearly twice the staff of ports that generate more revenue? And, how can payroll grow by 28 percent when revenues are falling by 25%?

We know changes are coming with the SkyCity public-private partnership (P3), which will transition roughly 76 aviation employees to the new operator. But when pressed on how this deal will affect VIPA’s finances, management conceded they are “still working out the details.” In other words, they don’t yet know how a decades-long agreement will impact their own bottom line. And, if employees are moving off the books, it’s reasonable to assume there’s a corresponding shift in revenue as well — meaning the true fiscal impact of SkyCity remains unclear.

Before requesting higher fees or new capital projects, VIPA must first demonstrate its ability to manage the resources it already has with competence and transparency.

A Band-Aid for Your Bullet Wound

VIPA projects that the new fee increases will generate roughly $5 million a year in additional revenue. But let’s be honest — what exactly is $5 million going to do for an agency that lost on average $32 million a year from 2017 to 2021? That’s like putting a Band-Aid on a bullet wound.

If an organization is running structural deficits of that magnitude, no amount of minor fee tweaks will fix it. You don’t only have a revenue problem — you have a much, much larger problem.

The point of my argument isn’t to deny VIPA the resources it needs to operate. However, it’s essential that, before asking the public for another dime, the agency demonstrate that it can balance its books, publish its audits, and control its payroll. Otherwise, these new fees are like pouring water into a leaky bucket.

To clarify, these figures are based on VIPA’s most recent audited financial statements, as of fiscal year 2021. The numbers may have changed since then, but that only underscores the larger point: no one knows. Decisions about rate hikes shouldn’t be made on guesswork or outdated data. They should be made on verified, audited information. Until those audits are complete, the public is being asked to write checks in the dark.

The Need for Additional Oversight

The Virgin Islands Port Authority manages tens of millions of dollars in public assets and revenues each year. Yet, it operates with minimal independent oversight (no, the VIPA board does not provide independent oversight). That’s a structural flaw. Unlike the Water and Power Authority, which falls under the jurisdiction of the Public Services Commission (PSC), VIPA operates as a largely autonomous entity — making its own financial decisions, setting its own rates, and managing its own debt without external review.

That autonomy may have made sense when VIPA was a lean, self-sustaining agency. But today, it oversees airports, harbors, marine terminals, cargo operations, and leases — and handles hundreds of millions of dollars in federal and local funds. When an agency of that size goes four years without an audit, accountability can’t be left to self-reporting.

Ports are natural monopolies. When they raise rates, everyone pays — from barge operators to taxi drivers to grocery shoppers. Without external review, fee hikes become unilateral decisions that ripple through the economy unchecked. And, we can’t leave oversight to the federal government alone. The FAA may require audits and compliance reports, but their focus is on federal funds and aviation safety — not on how efficiently the Port Authority manages local dollars. True accountability must come from within the territory itself.

The PSC provides a valuable model. Through structured hearings, mandatory reporting, and independent analysis, it ensures that utilities justify their rates before passing costs on to the public. The same logic applies here. If VIPA is going to function as a public monopoly that controls access to our ports and airports — the literal gateways to our economy — then it should face the same level of scrutiny as other public monopolies.

This is where the Legislature must step in. It is their duty to strengthen oversight, close the accountability gap, and ensure that VIPA’s authority is balanced by transparency. Whether that means amending enabling legislation, creating an audit review board, or extending PSC-style rate regulation to VIPA, the Legislature has the power — and the obligation — to act.

No public entity that controls such a significant portion of our economy should be allowed to regulate itself. Oversight is not interference — it’s insurance against mismanagement.

One Port, Two Standards

On a final note, the subpar arrival experience at the St. Croix airport has been on my mind since I wrote the “Arrival Survival” piece last year. So, I figured it was as good a time as any to ask the Executive Director his thoughts. At Wednesday’s meeting, VIPA’s Executive Director frequently emphasized the “One Port” philosophy — one team, one mission, one system – to explain VIPA’s management ethos across districts. But, ironically, everyone who attended the public meeting on St. Croix had to navigate a pothole-riddled parking lot to get inside. Before we discuss grand visions of “One Port,” we should start by addressing the “One Parking Lot” outside the terminal.

Anyone who’s traveled between districts knows the vivid contradiction of the “One Port” philosophy preached from the podium. At Cyril E. King Airport on St. Thomas, passengers are greeted by cool air conditioning, bright lights, and a welcoming environment that says, “You’ve arrived in paradise.” However, at Henry E. Rohlsen Airport on St. Croix, the arrival experience tells a different story — one of darkness, sweltering heat, and neglect. No air conditioning. No greeters. No basic comfort for the residents and visitors who pass through its doors.

When I asked Mr. Dowe about the lack of air conditioning, he unfortunately suggested that Crucian travelers “grab a fan.” That single remark captures exactly why so many residents across the territory feel unheard. Air conditioning in an airport terminal is not a luxury — it’s a symbol of respect. If we can afford to raise fees, we can also afford to fix the basics. If we truly believe in “One Port,” then we must hold ourselves to one standard of dignity across all islands. Fairness isn’t just about finances; it’s about how people are treated. And right now, the message sent to St. Croix is clear: second-class service from a “One Port” system.

As Justice Louis Brandeis famously said, “Sunlight is said to be the best of disinfectants.” Transparency isn’t just about audits or reports — it’s about shedding light on inequities so they can be addressed and corrected.

Before raising rates to fund gantry cranes or other multi-million dollar projects, let’s review the books. Show us how the current funds are managed. Show us where our money is going. Show us how you’re measuring efficiency, profitability, and performance.

Until then, there’s only one fair response:

No audits, no increase.