hority – Fiscal Year 2024 Annual Operating Budget 1 VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY FISCAL YEAR 2025 BUDGET OCTOBER 1, 2024 - SEPTEMBER 30, 2025 St. Thomas St. Croix 8000 Nisky Shopping Center, Suite 620 St. Thomas, U.S. Virgin Islands 00803 (340) 714-1700 www.usvieda.org 116 King Street, Frederiksted St. Croix, U.S. Virgin Islands 00840 (340) 773-6499 www.usvieda.org i I. Introductory Section CEO’s Budget Message to Chairperson of the Legislature’s Committee on Finance….… 1 Principal Officials…………………………………………………………………………………………………………............... 2 Mission Statement……………………………………………………………………………………………………………………. 3 Scope and Overview…………………………………………………………………………………………………………………. 4 Organizational Chart…………………………………………………………………………………………………………………… 5 Accounting System and Financial Reporting Roles and Responsibilities……………………………………… 6 USVIEDA Direct and Indirect Cost Allocations…………………………………………………………………………… 7 Goals, Objectives, Performance Measurements, and Performance Evaluations………………………… 8 Annual Budget Process………………………………………………………….…………………………………………………… USVIEDA by the Numbers…………………………………………………………………………………………………………… 9 11 II. Departments and Divisions 1.0 USVIEDA Administrative Departments………………………………………………………………………………… 13 1.1 Board of Directors……………………………………………………………………………………………………… 13 1.2 Executive Office………………………………………………………………………………………………………… 15 1.3 Administration and Finance Department…………………………………………………………………… 17 1.4 Human Resources (“HR”) Department………………………………………………………………………… 19 1.5 Legal Department……………………………………………………………………………………………………… 21 1.6 Marketing / Public Relations Department…………………………………………………………………… 22 VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY FISCAL YEAR 2025 BUDGET October 1, 2024 – September 30, 2025 TABLE OF CONTENTS ii 2.0 USVIEDA Operational Divisions……………………………………………...……………………………… 25 2.1.1 EDC Applications Department ……………………………………………………………………………… 25 2.1.2 EDC Compliance Department……………………….……………………………………………………… 28 2.2 Economic Development Bank (“EDB”)……………………………………………………………………… 30 2.2.1 Incubator Program……………………………………………………………………………………………… 32 2.3 Enterprise Zone Commission (“EZC”)……………………………………………………………………… 34 2.4 Economic Development Park Corporation (“EDPC”)………………………………………………… 36 III. Financial Information 3.1 Revenues……………………………………………………………………………………………………………………………… 39 3.2 Expenditure Comparisons for FY22, FY23 Projected, and FY24 Budgeted……………………………… 40 3.3 Professional Services Breakdown in Detail……………………………………….…………………………………… 41 3.4 Personnel Service Cost Breakdown by Department and Classification…………………………………… 41 3.5 Budget Summary…………………………………………………………………………………………………………………… 42 IV. Other Supplemental Information A. Vehicle Listing for USVIEDA……………………………………………………………………………………………………… 44 B. Listing of Real Property being rented or leased by the USVIEDA……………………………………………… 44 V. Appendix Glossary of Selected Terms………………………………………………………………………………………………………… 45 VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY FISCAL YEAR 2025 BUDGET October 1, 2024 – September 30, 2025 TABLE OF CONTENTS V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 1 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 2 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 3 Select USA Investment Summit June 2024 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 4 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 appointed by the Governor from amongst the heads of cabinet-level executive departments or agencies or his executive staff. Three (3) shall not be employees of the Government of the U.S. Virgin Islands; 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 must be appointed from the Board or Executive Staff of the Government Employee Retirement System, Virgin Islands Port Authority, or the University of the Virgin Islands. V.I. Economic Development Authority – Fiscal Year 2025 Annual Operating Budget 5 USVIEDA ORGANIZATIONAL CHART V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 6 ACCOUNTING SYSTEM AND FINANCIAL REPORTING ROLES AND RESPONSIBILITIES USVIEDA is a public corporation and semi-autonomous instrumentality of the Virgin Islands of the United States of America 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. 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 and skilled personnel. USVIEDA’s employment policy prescribes that all employees maintain the highest ethical standards and conduct business practices in a manner above reproach. 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 GAAP. USVIEDA has received 13 consecutive unmodified audits. The Governing Board of USVIEDA formulates the overall vision of the entity and fulfills its responsibilities of oversight and administration of the Authority’s practices and governance through the actions of the full Board. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 7 USVIEDA DIRECT AND INDIRECT COST ALLOCATIONS USVIEDA’s activities can be classified into two (2) distinct categories – divisional and departmental activities. A division is charged with the responsibility of carrying out the organizational mandates and includes the Economic Development Bank (“EDB”), the Economic Development Commission (“EDC”), the Enterprise Zone Commission (“EZC”) and the Economic Development Park Corporation (“EDPC”). A department provides support to the divisions in fulfilling the organizational mandates and includes the Governing Board, the Executive Office, Administration and Finance, Human Resources (“HR”), Legal, Marketing/Public Relations, and Economic Development Management (“EDM”). The total cost to operate USVIEDA is classified into two (2) groups, that is, each cost that is incurred is either a direct or indirect cost. A direct cost is a cost that can be identified specifically with a division or department and can be traced with relative ease and a high degree of accuracy to that division or department. An indirect cost is a cost that is incurred in common with other departments and divisions and cannot be traced to any specific division or department. An example of an indirect cost will be rent expense, which is a cost incurred together by all divisions and departments. The indirect costs are then distributed to each division and department through an internal indirect cost allocation process. For ease and convenience, total indirect costs are budgeted and expensed in EDM department. At the end of a given period, the indirect costs accumulated in the EDM department are distributed to the divisions and departments based on a pre-determined indirect cost allocation rate. At the end of a fiscal period, all direct costs would have been posted to each division and department, and all indirect costs would have been allocated from the EDM department to each division and department, and therefore, the total cost to operate each division and department can be determined. Note that the total cost (direct and indirect) for each department is indirect to the divisions and thus the total departmental costs are then further allocated to the divisions using a pre-determined allocation method. At the end of a fiscal period, the total cost of operating each division within the USVIEDA can be determined, and so is the total cost to operate the USVIEDA, which will be the sum of all the divisional costs combined. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 8 GOAL, OBJECTIVES, PERFOMANCE MEASUREMENTS, AND PERFORMANCE EVALUATIONS The establishment of goals, objectives, performance measurements, and performance evaluations provide the strategic operational framework for USVIEDA. A goal is the end result to be accomplished and answers this question: “What is the purpose in the big picture?” For USVIEDA, its purpose is to promote economic growth, job creation, and wealth generation. 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. Using the S.M.A.R.T approach, an objective must be: ▪ Specific: State exactly what is to be achieved; ▪ Measurable: Identify a target or quantifiable outcome; ▪ Achievable: Ensure that sufficient resources are available; ▪ Relevant: Provide an expected direction of change; and ▪ Time-bound: Set a timeframe for completion. 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 the objectives are being met. Evaluations answer key goal-related questions, such as: ▪ Are stakeholders getting what they deserve? ▪ Are taxpayers getting their money’s worth? ▪ Are those we serve better off? ▪ Can the service we provide be improved? The achievability of USVIEDA’s goals and the fulfillment of objectives rest with supervisors and their direct reports, and the budget provides the financial resources to do so. The execution of performance measurement and evaluation functions ensure that scarce resources are used in the most efficient manner for the benefit of residents. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 9 ANNUAL BUDGET CALENDAR AND PROCESSES The budget formulation process is designed to allow USVIEDA to fulfill its mission by aligning goals, priorities, and objectives with financial resources and to evaluate actual achievements relative to anticipated outcomes. JANUARY – FEBRUARY The budget formulation process begins with the development of revenue and expenditure projections for the upcoming fiscal year. These projections are combined 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. 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 and Budget for consideration and inclusion in the Government of the Virgin Islands’ annual operating budget submission to the Legislature. MARCH USVIEDA’s budget staff establishes budget ceilings for each division and department consistent with the priorities, goals, and objectives of the agency. 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, present an overview of the budgeting priorities and to address other budgetary concerns. APRIL – JUNE 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 Executive Team. By the end of this process, revisions may be made to individual division or department budgets and budget schedules are updated accordingly. JULY The final budget is presented to the USVIEDA Governing Board for consideration and approval before submission to the Legislature’s Post-Audit Division. Communication is maintained with the Post-Audit Division as it analyzes the USVIEDA budget while at the same time 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 Committee on Finance of the Legislature. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 10 The Chief Executive Officer, accompanied by the Assistant Chief Executive Officer, General Counsel, Chief Financial Officer, and other Division and Department Managers, defend the USVIEDA budget recommendation before the Committee on Finance of the Legislature. OCTOBER Once the budget is passed by the Legislature and approved by the Governor, 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. Financial analyses are performed, and financial presentations are made to the Governing Board. The budget staff offers recommendations to division and department heads in addition to the Governing Board to improve operational efficiencies. Budget Overview 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 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 11 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 12 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 13 1.0 USVIEDA DEPARTMENTS The departments within the USVIEDA provide support to the operational divisions to ensure that USVIEDA adheres to and meets its statutory and legal requirements. 1.1 BOARD OF DIRECTORS FUNCTIONAL STATEMENT The powers of USVIEDA rest in the hands of the Governing Board (“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. Most importantly, the Board ensures that the organization complies with all applicable laws. OPERATIONAL GOAL(S) Work collaboratively with USVIEDA’s management team to explore opportunities for economic growth by adapting to the challenges and changes in the global environment. FISCAL YEAR 2024 OBJECTIVES • Review and approve the annual operating budget and evaluate progress toward current year objectives. • Host a board retreat to examine existing policies and practices and implement recommended improvements. • Conduct a comprehensive performance evaluation of the CEO to ensure leadership effectiveness and alignment with organizational goals. • Participate in at least five (5) marketing events and activities to enhance business recruitment, retention, and expansion efforts. FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 • Convened ten (10) board meetings, including public hearings and decision meetings, to approve economic development incentives and loans to businesses that will help to boost the U.S. Virgin Islands’ economy through job retention and creation, as well as infrastructure investments. • Attended the IEDC Annual Conference, which provided invaluable industry insight from experts on tools for economic reinvention, community innovation, and disaster recovery and resiliency. • Appointed members to the USVIEDA Finance Committee and evaluated the first-quarter financial performance. • Conducted a board workshop to strategize and collaborate with the management team to execute targeted marketing initiatives and Vision 2040 objectives and streamlined the rules and regulations governing the VIEDC Program. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 14 FISCAL YEAR 2025 OBJECTIVES • Review and approve the annual operating budget and evaluate progress toward current-year objectives. • Conduct a comprehensive performance evaluation of the CEO. • Devise strategies to retain, expand, and attract businesses to enhance economic growth and development. • Review the Vision 2040 action item list and set realistic timelines to accomplish the mid-range objectives. • Collaborate with the Executive Branch to identify suitable candidates for the vacant board position. Key Performance Indicators Actual FY 2023 Target FY 2024 Actual FY 2024 (as of 3/31/2024) Planned FY 2025 Number of board meetings held 10 28 10 28 Number of marketing events participated in to enhance business recruitment 1 4 1 4 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 15 1.2 EXECUTIVE OFFICE FUNCTIONAL STATEMENT The Chief Executive Officer (“CEO”) and the Assistant Chief Executive Officer (“ACEO/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 that human and capital assets are safeguarded and optimized. Maintain a positive work climate conducive to attracting, retaining, and motivating a diverse group of top-quality performers to achieve the goals of the organization. FISCAL YEAR 2024 OBJECTIVES • Develop and implement a strategic plan to leverage USVIEDA’s resources to ignite new investment, support local business growth, and improve the quality of life for residents. • Complete the economic impact analysis study of the VIEDA Programs to assess the effectiveness and potential benefits on the Territory’s economy to include key indicators such as employment, business activity, tax revenue, and total economic output. • Conduct a charitable contribution study to determine the impact of VIEDC Beneficiaries’ charitable giving to the Territory’s educational systems and non-profit organizations within the community. • Enhance collaboration with public, private, and non-profit partners to ensure synergy across all sectors and drive Vision 2040 implementation of the eight (8) aspirational goals to foster economic diversification and prosperity in the Territory. • Enhance USVIEDA’s Business Retention and Expansion (BRE) program to support the Vision 2040 goal of making the U.S. Virgin Islands more business friendly. • Negotiate Collective Bargaining Agreement (CBA) and present it to the board for approval. FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 • Negotiated a collective bargaining agreement between USVIEDA and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial, and Service Workers International Union for Fiscal Years 2023–2026. • Completed and commenced implementation of USVIEDA’s global and South Shore marketing plans, strategically positioning the Territory and USVIEDA for increased global presence and attracting significant new business investments. • Showcased the Territory and USVIEDA programs at events such as the Caribbean Hotel & Resort Investment Summit (“CHRIS”), Caribbean Hotel Investment Conference & Operations Summit (“CHICOS”), and Select USA, reinforcing the US Virgin Islands as a premier investment destination. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 16 FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 CONT. • Concluded the Shipyard Feasibility Study for establishing a shipyard in the South Shore Trade Zone (SSTZ) on St. Croix, which confirmed that it is feasible to establish a shipyard in the US Virgin Islands to locally repair commercial and leisure vessels. The findings provide a comprehensive financial viability assessment and lay the groundwork for future development, enhancing the South Shore Trade Zone’s attractiveness for investment in the U.S. Virgin Islands, particularly on St. Croix. • Continued collaboration with the Office of Disaster Recovery (“ODR”) and local lenders to implement the VI Slice Moderate Income Homeownership Program, accelerating homeownership rates in alignment with the Vision 2040 Plan. • Finalized the Governor’s Small Business Innovation Grant Award, disbursing $3.9M to 322 businesses to help Virgin Islands small businesses recover from the economic effects of the Covid-19 pandemic and build a financial foundation to navigate future challenges. The Small Business Innovation Grant awarded up to $50,000 to eligible locally registered and licensed businesses with fewer than 100 employees operating in the Territory, assisting them in becoming more resilient and innovative. FISCAL YEAR 2025 OBJECTIVES • Update the rules and regulations for the Economic Development Bank, Economic Development Commission, and Enterprise Zone Commission. • Engage an entity to conduct an economic impact study on the EDB, EDC, EZC, and EDPC Programs to assess their effectiveness and potential benefits on the Territory’s economy, including key indicators such as employment, business activity, tax revenue, and total economic output. • Participate in a minimum of three (3) trade shows and events to strengthen USVI’s global presence and network with potential investors for investment promotion and recruitment in the priority sectors identified in the recently completed global marketing and Vision 2040 plans. • Work with the executive and legislative branches to mobilize committees recommended by Vision 2040 to improve the business climate with the aim of attracting new investment and facilitating the growth of local small business community. Key Performance Indicators Actual FY2023 Target FY 2024 Actual FY 2024 (as of 3/31/2024) Planned 2025 Number of partnership collaborations formed 6 5 6 5 Number of economic development initiatives undertaken 5 5 5 5 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 17 1.3 ADMINISTRATION AND FINANCE DEPARTMENT FUNCTIONAL STATEMENT The Administration and Finance Department performs financial planning, accounting, and reporting functions for external and internal users. It is responsible for establishing relationships with auditors, financial institutions, the Post-Audit Division of the Legislature, and others within the financial community. The department takes a leading role in developing proposals and policies on strategic issues that affect the long-term financial integrity and competitiveness of USVIEDA. Financial policies, procedures, and the establishment of financial and management controls are formulated and executed 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 the overall efficiency of the organization. FISCAL YEAR 2024 OBJECTIVES • Complete the Fiscal Year 2023 financial audit by September 2024. • Develop an accounting manual that outlines the accounting policies, procedures, and protocols of the Administration and Finance Department to serve as a reference guide for employees, auditors, and other stakeholders that need to understand how the USVIEDA conducts its accounting operations. • Provide training on GAAP, procurement, and financial reporting best practices. • Streamline the month-end closing process to ensure the timely closure of the ledgers by the 20th of the following month. FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 • Presented first-quarter financial updates to the USVIEDA Finance Committee of the Governing Board. • Secured Board approval to establish money market saving accounts, which are projected to increase interest income for USVIEDA. • Processed Collective Bargaining Agreement (“CBA”) and Board approved salary increases and retroactive payments by the pay period following approval. • Received the new Indirect Cost Rate from the U.S. Department of Treasury. • Commenced the upgrade of the IT platform to the Microsoft Office 365 suite, which has enhanced productivity, team collaboration, and security with advance cloud-based tools and services. • Documenting Standard Operating Procedures (SOPs) to ensure that all accounting and financial activities are performed consistently and accurately, following best practices and regulatory requirements. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 18 FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 CONT. • Closed out the Governor’s Small Business Innovation Grant Award disbursing $3.9M to 322 businesses. • Completed the gap analysis as required by the Office of Management and Budget for the VI Transparency website. • Implemented a centralized month-end checklist to streamline and enhance the month-end closing process. • Updated BizNet Financial Reports to meet federal grantor requirements more effectively. • Provided staff training on MAS 500 accounting software, procurement best practices, and federal reporting. FISCAL YEAR 2025 OBJECTIVES • Complete the Fiscal Year 2024 financial audit by June 2025. • Ensure timely submission of 100% of financial reports to relevant local and federal entities, with no reports submitted past their respective due dates. • Finalize the accounting manual outlining the accounting policies, procedures, and protocols of the administration and finance department within the first six months of the fiscal year, ensuring it is ready for distribution and reference by employees, auditors, and stakeholders. • Provide training on GAAP, procurement, and financial reporting best practices. Key Performance Indicators Actual FY 2023 Target FY 2024 Actual FY 2024 (as of 3/31/2024) Planned FY 2025 Received Unmodified Audit Yes Yes n/a Yes Financial Updates to Board 4 2 2 2 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 19 1.4 HUMAN RESOURCES FUNCTIONAL STATEMENT The Human Resources (“HR”) Department is responsible for talent management and workforce development including 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 objectives of the USVIEDA. FISCAL YEAR 2024 OBJECTIVES • Develop a comprehensive wellness program designed to address the unique needs and interests of employees, which includes quarterly activities and an annual health and wellness fair. • Conduct quarterly targeted and engaging professional development training to enhance employees' skills and knowledge in specific areas, such as leadership, team building, communication, and problem-solving. • Create a mentorship program as part of USVIEDA’s ongoing succession plan to ensure operational continuity. • Continue to revise and update job descriptions to align with USVIEDA’s strategic goals and ensure that they accurately reflect each position's key responsibilities, skills, and competencies, which will help optimize workforce planning, talent acquisition, and employee development efforts. • Complete a compensation study to align job responsibilities with market trends, attract and retain top talent, motivate employees, and maintain a fair and equitable pay structure throughout the organization. FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 • Revived the USVIEDA Employee Relations Committee, including the Wellness, Social, and Team Building Committees, to spearhead ongoing initiatives to enhance employee engagement and morale. • Hosted a successful in-person Employee Appreciation/Team Building Event that garnered positive feedback from over 97% of attendees. • Negotiated a new collective bargaining agreement between USVIEDA and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union for Fiscal Year 2023 – 2026. • Updated all union job descriptions to accurately reflect current duties and key responsibilities, ensuring alignment with organization objectives and industry standards. • Implemented the Metrix Learning Platform through the VI Department of Labor to enhance employee skill development and performance. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 20 FISCAL YEAR 2025 OBJECTIVES • Conduct quarterly targeted and engaging professional development training sessions to enhance employees' skills and knowledge in areas such as leadership, team building, communication, and problem-solving. • Establish a Leadership/Mentorship Program as part of USVIEDA’s ongoing succession plan to ensure operational continuity and foster professional growth among employees. • Complete a comprehensive compensation study to align job responsibilities with market trends, attract and retain top talent, motivate employees, and maintain a fair and equitable pay structure throughout the organization. • Update the policies and procedures manual to reflect current practices, regulatory requirements, and organizational needs. • Develop and implement a comprehensive employee recognition program aimed at acknowledging and rewarding exceptional performance and contributions, fostering a culture of appreciation, motivation, and engagement within the organization. Key Performance Indicators Actual FY 2023 Target FY 2024 Actual FY 2024 (as of 3/31/2024) Planned FY 2025 Number of employee relation activities conducted 27 12 20 24 Number of employee training courses conducted 17 12 6 4 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 21 1.5 LEGAL DEPARTMENT FUNCTIONAL STATEMENT The Legal Department provides a broad range of legal services that include legal analysis, drafting and reviewing legal documents, and conducting background investigations on prospective employees and various program applicants. This department also oversees the Human Resources Department, provides legal and policy guidance to the Governing Board, drafts legislation, and develops rules and regulations consistent with legislative mandates. OPERATIONAL GOAL(S) Ensure that USVIEDA complies with applicable laws, institute measures to reduce liability and loss of assets, and work to maintain USVIEDA’s image of integrity, professionalism, and fairness. FISCAL YEAR 2024 OBJECTIVES • Draft amendments to EDB, EDC, and EZC legislation and rules and regulations. • Provide professional training to the legal team to improve the quality of investigative reports. • Explore partnerships with law enforcement agencies to improve background investigative and due diligence reports. FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 • Drafted and fully executed a wide range of professional service contracts and lease agreements. • Drafted and amended USVIEDA Governing Board resolutions, motions, and show cause orders. • Prepared and reviewed statutory agreements necessary to accomplish the mandates of the USVIEDA. • Drafted and amended USVIEDA internal policies and procedures. FISCAL YEAR 2025 OBJECTIVES • Assist with amendments to legislation, rules and regulations, and policies. • Provide professional training to the legal team to improve the quality of investigative reports. • Explore improvements to background investigative and due diligence reports and due diligence reports. Key Performance Indicators Actual FY 2023 Target FY 2024 Actual FY 2024 (as of 3/31/2024) Planned FY 2025 Number of background investigative reports and due diligence reports produced 5 2 37 32 Number of professional contracts, requests for proposal, and leases reviewed, drafted and/or executed 22 10 10 10 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 22 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 as well as the many services offered to local businesses and residents that foster economic growth, job creation, and wealth generation. OPERATIONAL GOAL(S) Utilize various marketing tools to attract new businesses to relocate to the Territory, and to grow and expand businesses that currently exist in the Territory. FISCAL YEAR 2024 OBJECTIVES • Execute a full agency rebranding initiative, which includes new messaging, taglines, logo, and website to revitalize USVIEDA’s identity and positioning. • Develop an all-encompassing Foreign Direct Investment (“FDI”) Plan and Strategy, outlining tailored tools and tactics, such as trade shows and social media campaigns, for the target sectors identified in the Vision 2040 Plan. • Craft a coordinated print, broadcast, digital, and online marketing campaign that will strategically focus on at least three (3) of the target industry sectors identified in the Vision 2040 Plan. • Host at least one (1) proprietary event to help attract businesses to the Territory by showcasing the unique opportunities and advantages offered by the USVIEDA. • Launch an engaging and informative podcast to highlight and promote the benefits of USVIEDA tax incentive programs for companies and investors seeking to establish their businesses in the Territory. • Revitalize USVIEDA’s localized community engagement campaign to raise awareness and understanding of the Authority’s programs and services to foster a stronger sense of community support and engagement. FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 • Developed comprehensive FDI and global marketing strategies, utilizing competitor benchmark analysis, global trends, and literature review to prioritize Vision 2040 target industries and markets. Additionally, industry-specific trade shows were identified for enhanced networking and exposure. • Executed a full agency rebrand of messaging, taglines, logo, website, social media, and various marketing collateral. This effort culminated in the creation of the Territory’s first place brand, intended for use by various agencies and stakeholders in promoting and positioning the U.S. Virgin Islands as a prime investment destination. • Launched social media channels dedicated at attracting investment to the Territory. These platforms feature content highlighting established businesses operating within the targeted industries outlined in Vision 2040, as well as USVIEDA program and initiatives that support their growth and sustainability. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 23 FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 CONT. • Organizing a South Shore Trade Zone Roundtable Event scheduled for the first quarter of FY 2025. This initiative aims to draw eligible investors to the Territory’s special economic zone on St. Croix to promote investment in the region. • Initiated the planning and coordination of a podcast showcasing how USVIEDA’s programs and services have supported the success of its clients. Anticipated to launch before the end of fiscal year 2024, this podcast will serve as a valuable tool for promoting USVIEDA’s initiatives and achievements. • Launched community education initiatives to deepen public understanding of USVIEDA's programs and services. Efforts include executing VI Slice Town Hall Meetings, planning targeted advertising campaigns, facilitating interviews, and actively participating in community events to engage stakeholders and foster transparency. FISCAL YEAR 2025 OBJECTIVES • Collaborate with relevant stakeholders to activate the Business Climate Commission and advance initiatives aimed at improving the business environment and encouraging increased investment, in accordance with the recommendations outlined in Vision 2040. • Design and integrate a commercial real estate database on USVIEDA’s website, featuring sites and buildings suitable for manufacturing, warehouse/distribution, or office operations, with a focus on the Vision 2040 target industries. • Implement annual and monthly business surveys to inform the decision-making process of the Business Climate Commission, assess the Territory’s progress in garnering support from the business community, and pinpoint areas of improvement. • Create and disseminate Territory-wide Annual Economic Development Scorecards to assess progress, incorporating metrics and benchmarks for services offered to small businesses and entrepreneurs. • Continue educating the community about USVIEDA’s programs and services through the podcast, client video testimonials, town hall meetings, ad campaigns, and social media. Key Performance Indicators Actual FY 2023 Target FY 2024 Actual FY 2024 (as of 3/31/2024) Planned FY 2025 Number of Pre-Application Meetings with VIEDC 5 7 5 7 Number of external site visits made by potential EDC beneficiaries and/or advisors 10 20 4 15 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 24 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 25 2.0 USVIEDA OPERATIONAL DIVISIONS 2.1. VI ECONOMIC DEVELOPMENT COMMISSION 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 main point of contact for a business seeking to apply for economic development benefits, and the Compliance Department, which monitors and provides customer care services to beneficiaries in ensuring that these businesses comply with the terms and conditions of their agreements and other requirements of law. 2.1.1 EDC APPLICATIONS DEPARTMENT OPERATIONAL GOAL(S) Review and analyze applications for EDC tax incentive benefits, USVIEDA incentives programs (Sustainable Tourism through Arts-based Revenue Streams (“STARS”), Hotel Development Act Program (“HDA”), and Tax Increment Financing, process applications for Eligible VI Suppliers certification and provide support and advice to the USVIEDA’s Governing Board in its consideration of applicants’ requests for EDC benefits. FISCAL YEAR 2024 OBJECTIVES • Pursue partnerships with the University of the Virgin Islands and the Bureau of Economic Research to create a Cost-Benefit Analysis Model for the Territory. • Continue to implement process improvements to facilitate the application intake and timely processing of completed applications. • Participate in community outreach programs, informational sessions, and other marketing initiatives. FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 • Received nine (9) new applications for economic development benefits. • Presented five (5) applications and five (5) petitions to the VIEDC Governing Board for consideration. • Issued seven (7) EDC Certificates for tax-incentive benefits, estimated to result in new and continued employment at a minimum of 48 full-time employees, approximately $2.3M in salaries and wages, $25.4M in capital investment, $238K in charitable contribution annually, and $9.1M in direct taxes over a 5-year period. FISCAL YEAR 2025 OBJECTIVES • Update the Cost-Benefit Analysis Model for the VIEDC Tax-Incentive Program. • Continue implementing process improvements to efficiently handle the application intake and timely processing of completed applications. • Engage in community outreach programs, informational sessions, and other marketing initiatives. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 26 Key Performance Indicators Actual FY 2023 Target FY 2024 Actual FY 2024 (as of 3/31/2024) Planned FY2025 Average number of days to complete analysis of an EDC application for Public Hearing 19 30 12 30 Number of community outreach programs participated in 3 4 2 4 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 27 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 28 2.1.2 EDC COMPLIANCE DEPARTMENT FUNCTIONAL STATEMENT The Compliance Department provides customer care services to EDC beneficiaries to maintain the integrity of the EDC Program. Beneficiaries not in compliance with their Certificates are brought before the EDC Governing Board, which has the legal authority to assess fines or penalties and terminate benefits. OPERATIONAL GOAL(S) Build and maintain good relations with the EDC beneficiaries by providing assistance that enables them to be in good standing and remain a vital part of the community. FISCAL YEAR 2024 OBJECTIVES • Continue bringing all Beneficiaries to one (1) year review cycles. • Organize annual beneficiary summits and practitioner forums in both districts.; • Increase the number of beneficiary client-care initiatives to foster retention and expansion while maintaining the integrity of the EDC Program. • Complete EDC Compliance Handbook for Beneficiaries. FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 • Issued seven (7) new EDC beneficiary certificates increasing the total number of beneficiaries in the VIEDC tax-incentive program to 93. • Advanced the online compliance case management system to 75% completion, which will generate the real-time economic impact of the VIEDC Program and reduce the timeline for producing compliance reports. • Conducted eight (8) beneficiary compliance orientations to ensure that the beneficiaries understand the compliance requirements of the Program. • Presented three (3) beneficiary petitions to the CEO and six (6) petitions to the VIEDC Governing for review and decision. FISCAL YEAR 2025 OBJECTIVES • Continue bringing all Beneficiaries to one (1) year review cycles. • Organize annual beneficiary summits and practitioner forums in both districts. • Increase the number of beneficiary client-care initiatives to ensure retention and expansion while maintaining the integrity of the EDC Program. • Complete EDC Compliance Handbook for Beneficiaries. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 29 80 89 93 FY 2022 FY 2023 FY 2024 (as of 3/31/2024) V.I. Economic Development Authority No. of VIEDC Tax Incentive Beneficiaries FY 2022-FY 2024 Key Performance Indicators Actual FY 2023 Target FY 2024 Actual FY 2024 (as of 3/31/2024) Planned FY 2025 Number of Compliance Reviews Completed 3 20 1 40 Number of Site Visits 21 40 8 60 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 30 2.2 ECONOMIC DEVELOPMENT BANK (EDB) FUNCTIONAL STATEMENT The Economic Development Bank for the U.S. Virgin Islands (“EDB”) provides equity infusion to help new minority, small and medium-sized, and other existing businesses grow into mainstream commercial banking customers. The EDB also works with local commercial banks by providing loan guarantees to reduce the risk to the banks. OPERATIONAL GOAL(S) Helps to grow small and medium-sized businesses by providing capital, technical, and managerial assistance to facilitate employment growth and opportunities. FISCAL YEAR 2024 OBJECTIVES • Increase the loan portfolio by $2M in credit-quality loans and guarantees. • Propose legislative amendments to consolidate the local revolving loan funds and potentially increase financing limits. • Continue the targeted marketing campaign to raise awareness of EDB’s products and services, attract new clients, and strengthen relationships with existing customers. • Provide ongoing staff enrichment training on lending software and industry best practices. • Apply for grant funding through the U.S. Department of Agriculture Rural Development – Rural Microentrepreneur Assistance Program to assist microenterprises in starting and/or expanding their businesses, as well as to provide training and technical assistance. • Offer technical services to farmers and fishers through collaborative efforts with the Enterprise Zone Commission, Department of Agriculture, industry experts, and local non-profits such as the Good Food Coalition to provide business improvements and training on business processes, such as accounting, tax preparation, documentation, information systems, and marketing. FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 • Awarded the State Small Business Credit Initiative (“SSBCI”) Technical Assistance Grant in the amount of $521K from the US Department of the Treasury. This grant will be used to provide technical assistance to small businesses in the areas of legal, accounting, business management, and financial advisory services. • Received five (5) new loan requests for EDB Direct Financing, totaling $1.5M. If approved, these small businesses could potentially create 21 jobs and retain 14 positions. • Commenced implementation of the Memorandum of Agreement between the VI Energy Office and VIEDA for Phase II of the Solar + Financing Pilot Program (“SPF”), which will provide one (1) percent interest loans up to $30K to approximately 80 homeowners to install solar power and battery storage systems. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 31 FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 CONT. • Ramped up the marketing and outreach efforts for the VI Slice Moderate-Income Homeownership Program (“VI Slice). EDB held town hall meetings in each district with a combined attendance of over 600 persons, hosted several webinars with the participating banks, and exhibited at local housing and realtors’ events to educate the public about the Program. To date, EDB has disbursed $906K in gap financing to 12 homeowners with bank financing of $3.1M. • Provided training to participating banks on the SSBCI 2.0 Program, resulting in increased bank participation and awareness of the Program. To date, EDB has leveraged its relationships with local lenders to successfully close four (4) SSBCI 2.0 loans, totaling $2.8M, with the SSBCI 2.0 program providing $1.4M in loan guarantees. These guarantees are anticipated to fortify four (4) businesses – two (2) on St. Croix and two (2) on St. Thomas – potentially retaining 14 jobs and creating 34 new employment opportunities in the Territory. • Assisted the Bank of Puerto Rico by providing training to its staff on the SSBCI program and was instrumental in helping them formulate their SSBCI 2.0 program guidelines. FISCAL YEAR 2025 OBJECTIVES • Increase the loan portfolio by $5M in credit-quality loans and guarantees. • Identify an external source to assist in consolidating and drafting legislative amendments for all the revolving loan funds. • Develop a new marketing campaign to raise awareness of EDB’s products and services, attract new clients, and strengthen relationships with existing lenders, the business community, and customers. • Create an all-in-one loan application packet and develop/implement an online application portal. • Continue to provide ongoing staff enrichment training on lending software and industry best practices. Key Performance Indicators Actual FY 2023 Target FY 2024 Actual FY 2024 (as of 3/31/2024) Planned FY 2025 Loan Delinquency Rate 1% 5% 23% 5% Dollar value of loans and guarantees approved $1.6M $2M $0M $5M V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 32 2.2.1 INCUBATOR PROGRAM FUNCTIONAL STATEMENT The Incubator Program is designed to help new companies and start-ups develop into full-fledged businesses by providing comprehensive management training, mentorship, and other assistance. This support enables these businesses to grow, thrive, and contribute to the economic development of the Territory. The program stands out by fostering innovation, nurturing entrepreneurial talent, and creating an ecosystem where businesses can collaborate, learn, and expand. OPERATIONAL GOAL(S) Engage, support, and assist entrepreneurs in developing sustainable businesses within the Territory. FISCAL YEAR 2024 OBJECTIVES • Partner with the Department of Agriculture, University of the Virgin Islands, and VI Internal Revenue Bureau to provide local farmers with technical assistance in tax preparation and bookkeeping, as well as other critical financial services to enhance their ability to manage their operations more effectively. • Provide ongoing support to the participants of the Women’s Coalition “Empowerment and Business Start-Up Program,” to help them develop and implement effective business strategies that lead to sustainable growth and profitability. • Continue collaborative efforts with the International Economic Development Council Volunteer Assistance Program to develop the “Entrepreneurship Ecosystem Playbook,” which will develop an outline that effectively assist underserved and minority entrepreneurs. • Continue working with the farmers to connect them to critical services to further their farms and business operations. FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 • Provided technical assistance to seven (7) new clients. One of these clients has developed into a full- fledged business. • Continued partnership with the Minority Business Development Agency to deliver businesses support services to local entrepreneurs. • Supported one (1) business through the purchase of a brick-and-mortar location. • Referred three (3) clients for funding (two (2) to the Economic Development Bank and one (1) to First Bank). • Participated in the 2023 Governor’s Workforce Summit as a panelist and moderator. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 33 FISCAL YEAR 2025 OBJECTIVES • Procure a pool of consultants to offer business-related assistance, including marketing, financing, and general business support, to help aspiring entrepreneurs start, run, and grow their businesses. This business training will be provided at a low cost to ensure accessibility. • Continue collaborations with the Department of Agriculture through its Agriculture Business Center to develop a strategic plan to assist farmers in streamlining and expanding their business operations. • Assist five (5) entrepreneurs in securing funding from the Economic Development Bank, local lenders, and other community funding initiatives to expand their businesses. • Develop a mentorship program for the Incubator Program graduates that includes roundtable discussions, networking opportunities, and personalized guidance to ensure the success of startup businesses and entrepreneurs. • Offer financial literacy and business preparation courses designed for high school juniors and seniors who are aspiring entrepreneurs or at the initial stages of launching their own businesses. Key Performance Indicators Actual FY 2023 Target FY 2024 Actual FY 2024 (as of 3/31/2024) Planned FY 2025 Number of entrepreneurs assisted 17 20 7 20 Number of businesses developed into full-fledged businesses 0 4 1 4 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 34 2.3 ENTERPRISE ZONE COMMISSION (EZC) FUNCTIONAL STATEMENT The Enterprise Zone Commission (“EZC”) is responsible for the revitalization of designated severely distressed areas in the U.S. Virgin Islands that were once social and economically vibrant communities. The EZC provides tax incentives and helps reduce fiscal and regulatory constraints that hinder economic growth. In addition, the EZC 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 2024 OBJECTIVES • Complete the first phase of the Abandoned Property Probate Project. • Secure grant funding for the EZC anchor projects. • Revive the EntrepreNow Program. • Continue to improve administrative processes towards the highest level of efficiency. FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 • Hosted the 2024 Estate Planning Conference, an in-person and multimedia event, that educated approximately 2,000 attendees on the benefits of wills, trusts, probate issues, and powers of attorney. This event was simulcasted on Zoom, Facebook, radio, and television. • Conducted a Business-to-Business (“B2B”) event where local vendors from both districts showcased their products and services to buyers from public and private sectors. Within a month of the event, all vendors received wholesale purchase inquiries. • Finalized the USVI Shipyard Feasibility Study, which explored the opportunity for a ship repair facility on the island of St. Croix in the South Shore Trade Zone. The study indicated a viable opportunity with a positive internal rate of return (“IRR”) and net present value (“NPV”), suggesting significant direct and indirect income and multiplier effects that support local jobs and the economy. • Began executing strategies from USVIEDA’s comprehensive marketing plan to promote the South Shore Trade Zone Program, USVIEDA’s new economic development tool. A South Shore Trade Zone Roundtable Event is scheduled for the first quarter of FY 2025 to identify, pursue, and attract anchor activities that will transform St. Croix into a logistical hub for trade, industry and commerce in the region. • Completed the first phase of the EZC Abandoned Property Probate Project. Funded by a $250K federal grant from the US Department of the Interior, this project assists families in resolving estate planning issues to facilitate the transfer and productive use of abandoned properties. • Secured a $500K grant to rehabilitate Building A & B of the Jarvis Complex in the preparation for the opening of the Virgin Islands Museum, Cultural & Civic Center. • Completed one (1) rejuvenation and is preparing for 13 more rejuvenations by the end of the fiscal year. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 35 FISCAL YEAR 2025 OBJECTIVES • Revive the EntrepreNow Program, an initiative created to inspire an entrepreneurship mindset among young men in the U.S. Virgin Islands. This Program also assists young men in learning about their personal and professional interests, visualizing their education future, and setting personal and professional goals. • Develop and launch the EZC Benefit Portal, an online platform that will streamline access to EZC benefits and resources, enhance user experience, and improve administrative efficiency by enabling real-time tracking and reporting. • Complete and close out three (3) of the five (5) active grants, ensuring all objectives are met maintaining compliance with grant requirements. • Secure additional grant funding for the EZC anchor projects to ensure their successful implementation. Key Performance Indicators Actual FY2023 Target FY 2024 Actual FY 2024 (as of 3/31/2024) Planned FY 2025 Number of Revitalization/Rejuvenation 1 8 1 3 Number of individuals / businesses assisted with EZC related services 100 450 100 100 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 36 2.4 ECONOMIC DEVELOPMENT PARK CORPORATION (EDPC) 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 and complements the activities of the Economic Development Commission (“EDC”). The EDPC is supported by revenues it generates from tenants. The EDPC has two locations, the William D. Roebuck Industrial Park (“WDRIP”) and the Virgin Islands Industrial Park on St. Thomas. OPERATIONAL GOAL(S) Support economic development by offering rental space for commercial use, and to maintain and upgrade the facilities to retain and attract new tenants. FISCAL YEAR 2024 OBJECTIVES • Complete 75% of the hurricane repair projects funded by the Federal Emergency Management Agency (“FEMA”). • Begin construction on a 10,000 sq. ft. USVIEDA office building at the Virgin Islands Industrial Park (“VIIP”). • Develop an energy-efficiency plan that includes implementing measures such as upgrading lighting systems, optimizing HVAC systems, and promoting energy-saving practices throughout the Parks. • Commence the installation of a fully operational micro-grid at the William D. Roebuck Industrial Park. • Modernize the William D. Roebuck Industrial Park infrastructure to enhance parking and accessibility. • Provide staff training on the Occupational Safety and Health Administration (“OSHA”) regulations, industry best practices, and preventative maintenance safety protocols. FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 • Executed a lease agreement with a small, minority-owned business for 9,900 square feet, achieving full occupancy at the William D. Roebuck Industrial Park on St. Croix. • Completed 90% of Phase I of the hurricane repair project at the Virgin Islands Industrial Park (“VIIP”), which involved substantial structural and aesthetic enhancements. This included replacing the metal roofing and single-ply roofing systems over 15,000 square feet of Building Bays 1, 2, and 3. Additionally, the project encompassed repainting the exterior, installing impact-resistant windows and storefronts, overhead coiling doors, and hollow metal doors, and enhancing security with new fencing, entry gates, guardrails, and stone/concrete columns. • Completed 90% of Phase Architecture and Engineering (A&E) for the St. Thomas office, which will house USVIEDA’s new 10,000 square foot office space. This phase includes detailed architectural and engineering planning, infrastructure upgrades, and interior layout designs to create a modern, efficient workspace for the Authority. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 37 FISCAL YEAR 2024 ACCOMPLISHMENTS AS OF MARCH 31, 2024 CONT. • Initiated negotiations with a power purchasing company to establish a micro-grid at the William D. Roebuck Industrial Park, aimed at enhancing energy independence and resilience. This initiative is expected to reduce energy costs and provide a reliable power supply to support the park's operations and tenants. • Commenced the drafting of an invitation for bid “IFB” for the Flemming Office. It is anticipated that the IFB will be issued in the fourth quarter of FY 2024 pending final approval from FEMA. FISCAL YEAR 2025 OBJECTIVES • Begin Phase II construction for USVIEDA's new 10,000 square foot office space at the Virgin Islands Industrial Park on St. Thomas. • Complete the hurricane repairs at the Fleming Building (St. Croix USVIEDA Office). • Complete Phase I of the installation of the micro-grid at the William D. Roebuck Industrial Park on St. Croix. • Continue modernizing the Park’s facilities to enhance tenant satisfaction and attract new businesses. • Begin hurricane repairs at the William D. Roebuck Industrial Park on St. Croix. Key Performance Indicators Actual FY 2022 Target FY 2023 Actual FY 2023 (as of 3/31/2023) Planned FY 2024 Number of capital projects completed 3 4 2 4 Percentage of rentable space occupied 94% 100% 94% 100% V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 38 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 39 USVIEDA Revenues 7% GVI Allotment 93% USVIEDA Revenues GVI Allotment 3.1 REVENUES The USVIEDA’s operating revenue is derived from two (2) primary sources: government allotments and internally generated funds. Internally generated revenues include EDC activation, application, and compliance fees received from beneficiaries. The amounts collected 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 collected in loan originating and loan application fees. 1 General appropriation includes supplemental amounts for marketing, Enterprise Zone Commission, and Incubator Program. Revenues FY 2023 Actual FY 2024 Projection FY 2025 Budget USVIEDA Operating Revenue Application & Processing Fees 4,400 5,000 5,000 Interest Income 11,343 10,000 10,000 Transfer – EDC Industrial Promotion Fund 0 500,000 500,000 Other Income 16,680 10,000 10,000 Total USVIEDA Operating Revenue 32,423 525,000 525,000 Plus: GVI Allotment General Appropriation1 5,613,000 6,613,000 6,613,000 Marketing Supplemental 500,000 Enterprise Zone Commission Supplemental 400,000 Incubator Program Supplemental 100,000 Total GVI Appropriation 6,613,000 6,613,000 6,613,000 Total Operating Revenue 6,645,423 7,138,000 7,138,000 U S V I E D A F Y 2 0 2 5 B u d g e t e d R e v e n u e V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 40 3.2 EXPENDITURE COMPARISONS – FY 2023 ACTUAL, FY 2024 PROJECTED, AND FY 2025 BUDGET VI Economic Development Authority General Fund Comparative Expenditure Analysis Financial Summary (FY 2023-FY 2025) Actual Actual Projected Projected Budget Accounts FY 2023 10/1/22-3/31/24 4/1-9/30/24 FY 2024 FY 2025 Personnel Services Classified Employee Salaries 1,410,665 692,501 989,268 1,681,769 1,941,809 Unclassified Employee Salaries 1,314,689 663,167 888,327 1,551,494 1,718,324 Total Personnel Services 2,725,354 1,355,668 1,877,595 3,233,263 3,660,133 Fringe Benefit Cost FICA 168,972 84,051 116,411 200,462 226,928 Medicare 39,517 19,657 27,225 46,882 53,072 Health Insurance Premium 428,514 211,884 312,097 523,981 567,054 Retirement 510,585 248,022 316,585 564,607 668,428 Total Fringe Benefit Cost 1,147,589 563,615 772,318 1,335,933 1,515,482 Total Personnel Cost 3,872,942 1,919,283 2,649,913 4,569,196 5,175,615 Office Supplies 15,045 16,512 20,000 36,512 18,000 Capital Outlay 30,230 85,613 91,444 177,057 30,000 Other Operating Expenses Professional Services 749,195 372,062 512,772 884,834 563,974 Travel 66,866 46,954 20,000 66,954 41,900 Advertising & Promotion 350,693 131,344 218,392 349,736 322,814 Printing & Publication 5,067 15,919 25,000 40,919 13,500 Insurance 74,634 17,854 60,146 78,000 78,000 Repairs and Maintenance 65,455 42,661 30,000 72,661 65,000 Rental - Land/Building 277,626 142,257 140,289 282,546 286,900 Professional Development 47,427 18,245 31,755 50,000 56,000 Auto Expense 16,338 5,514 9,500 15,014 15,000 Bank Service Charges 23,972 13,859 9,500 23,359 23,000 Board Attendance Fee 3,450 1,800 1,700 3,500 6,120 Business Relations 4,604 3,304 3,000 6,304 5,500 Catering 27,548 11,710 7,000 18,710 17,500 Contributions 37,959 36,459 3,541 40,000 16,000 Courier Service 5,018 2,050 2,870 4,920 4,920 Credit Reports 2,605 1,003 1,597 2,600 2,600 Custodial Services 58,067 20,522 36,838 57,360 57,360 Drinking Water 901 761 439 1,200 1,200 Dues & Subscriptions 87,855 69,379 18,438 87,817 87,817 Employee Relations 41,719 27,954 17,046 45,000 40,000 Labor 44,616 840 2,000 2,840 2,500 Meeting Space Rental 13,621 5,570 430 6,000 6,000 Miscellaneous 4,399 - - - Parking 1,062 130 220 350 50 Postage & Delivery 7,621 3,110 4,390 7,500 7,500 Software Agreement 27,162 36,622 - 36,622 25,880 Total Other Operating Expenses 2,045,479 1,027,884 1,156,863 2,184,747 1,747,035 Utility Services Electricity 103,929 42,252 57,748 100,000 100,000 Water 1,386 613 737 1,350 1,350 Communication 66,036 30,055 35,945 66,000 66,000 Total Utility Services 171,352 72,920 94,430 167,350 167,350 Total Expense 6,135,047 3,122,212 4,012,650 7,134,861 7,138,000 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 41 3.3 PROFESSIONAL SERVICES BREAKDOWN IN DETAIL Professional Services Category FY 2023 Actual FY 2024 Projection FY 2025 Budget Personnel Services Audit Fees 84,500 53,128 55,784 Collection Agencies 20,412 20,500 20,500 Consulting Services 33,239 9,950 9,950 Grant Writers 130,000 20,000 20,000 IT Services 74,548 65,000 65,000 Website Maintenance 49,647 93,200 50,400 Stenographer 23,745 24,000 24,000 Marketing/Lead Generation 93,251 371,047 175,000 Legal Services 94,944 76,954 65,000 Compliance Consultant 64,625 140,265 72,600 Other 25,862 10,790 5,740 Total Personnel Services 694,773 884,834 563,974 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 73% of the total operating expense. FY 2025 Personnel Service Cost by Department Department Unclassified Positions (#) Unclassified Positions ($) Classified Positions ( #) Classified Positions ($) Total Positions (#) Total Salary ($) Admin. & Finance 1 129,421 7 406,637 8 536,058 Application 1 125,122 3 188,616 4 313,739 Board 1 68,722 0 0 1 68,722 Compliance 1 89,000 7 461,647 8 550,647 Economic Dev. Bank 1 117,042 5 285,656 6 402,698 Enterprise Zone 1 125,122 4 237,528 5 362,650 Executive 4 465,617 2 91,964 6 557,581 Human Resources 1 100,521 1 73,241 2 173,762 Incubator 1 89,280 0 0 1 89,280 Legal 2 236,940 2 132,415 4 369,355 Marketing 2 171,537 1 64,105 3 235,641 Total 16 1,718,325 32 1,941,809 48 3,660,133 V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 42 3.5 BUDGET SUMMARY  FY 2025 budgeted revenue is $7,138,000. o Internally generated revenue is $525,000. o Recommended appropriation is $6,613,000.  FY 2025 budgeted expenses total $7,138,000. Department Personnel Costs Operating Expense FY 2025 Budget Economic Development Bank 578,961 54,968 633,930 EDC Applications Department 442,376 34,100 476,476 EDC Compliance Department 788,168 128,250 916,418 Enterprise Zone Commission 523,958 263,900 787,858 Legal Department 512,108 17,000 529,108 Human Resources 248,079 44,550 292,629 Administration & Finance 781,713 30,831 812,544 Executive Office 737,329 29,785 767,114 Board of Directors 104,491 87,867 192,358 Marketing Department 331,810 304,564 636,374 Incubator Program 126,622 99,350 225,973 EDM - Indirect Cost 0 867,219 867,219 TOTAL $ 5,175,615 $ 1,962,385 $ 7,138,000 Economic Development Bank 9% EDC Applications Department 7% EDC Compliance Department 13% Enterprise Zone Commission 11% Legal Department 7% Human Resources 4% Administration & Finance 11% Executive Office 11% Board of Directors 3% Marketing Department 9% Incubator Program 3% EDM - Indirect Cost 12% U S V I E D A F Y 2 0 2 5 B u d g e t e d E x p e n s e s b y D e p a r t m e n t ( % ) V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 43 Department Code: 104 050 060 003 035 040 030 020 002 070 000 110 GL Account # EDB Application Compliance EZC Legal HR Admin & Finance Executive Board Marketing EDM Incubator TOTAL Personnel Services 60000 Salaries - Classified 285,656 188,616 461,647 237,528 132,415 73,241 406,637 91,964 64,105 1,941,809 60001 Salaries - Unclassified 117,042 125,122 89,000 125,122 236,940 100,521 129,421 465,617 68,721 171,537 89,280 1,718,324 Total Personnel Cost 402,698 313,739 550,647 362,650 369,355 173,762 536,058 557,581 68,721 235,641 89,280 3,660,133 Fringe Benefit Cost 60005 Medicare 5,839 4,549 7,984 5,258 5,356 2,520 7,773 8,085 996 3,417 1,295 53,072 60006 FICA 24,967 19,452 34,140 22,484 22,900 10,773 33,236 34,570 4,261 14,610 5,535 226,928 60020 Insurance 69,606 47,765 82,346 63,002 54,357 30,474 102,121 54,381 15,237 32,528 15,237 567,054 60010 Retirement 75,851 56,871 113,051 70,563 60,141 30,550 102,525 82,712 15,275 45,615 15,275 668,428 Total Fringe Benefit Cost 176,263 128,637 237,521 161,308 142,753 74,317 245,655 179,748 35,769 96,169 37,342 1,515,482 Total Personnel Cost 578,961 442,376 788,168 523,958 512,108 248,079 781,713 737,329 104,491 331,810 126,622 5,175,615 64550 Office Supplies 500 500 500 1,000 250 1,000 1,000 855 1,200 600 8,095 2,500 18,000 15000 Capital Outlay 30,000 30,000 Other Services & Charges 61000 Advertising & Promotion 3,500 4,500 50,000 66,000 3,000 178,814 15,000 2,000 322,814 61020 Auto Expense 15,000 15,000 61050 Bank Service Charges 23,000 23,000 65020 Board Attendence Fee 6,120 6,120 68510 Business Relations 1,000 2,000 2,500 5,500 61080 Catering 6,000 2,000 5,000 2,500 2,000 17,500 61110 Contributions / Donation 16,000 16,000 64735 Courier Service 4,920 4,920 65070 Credit Reports 2,600 2,600 61130 Custodial Services 57,360 57,360 68820 Drinking Water 1,200 1,200 61180 Dues & Subscriptions 2,000 13,400 1,650 2,400 10,500 2,500 500 3,970 4,547 500 45,000 850 87,817 61200 Employee Relations 500 200 500 500 250 30,000 400 400 500 150 6,600 40,000 63020 Insurance 78,000 78,000 61120 Labor 2,500 2,500 64545 Meeting Space Rental 5,000 1,000 6,000 64600 Parking 50 50 64720 Postage & Delivery 2,500 5,000 7,500 64740 Printing & Publication 13,500 13,500 64800 Prof. Development 3,500 5,000 5,000 6,000 3,000 3,000 5,000 8,500 10,000 4,500 2,500 56,000 65000 Professional Fees 30,000 8,000 68,000 170,000 2,500 50,000 100,000 50,474 85,000 563,974 66020 Rent 286,900 286,900 66530 Repairs 65,000 65,000 66530 Software Agreement 5,948 18,931 1,000 25,880 68521 Travel 500 2,000 2,000 3,000 2,000 2,000 1,500 10,000 5,000 2,500 8,900 2,500 41,900 Unemployment 0 Total Other Services & Charges 53,468 33,100 127,150 262,400 15,750 42,550 28,831 24,870 81,167 303,464 678,434 95,850 1,747,035 68800 Utility Services Electricity 100,000 100,000 Water 1,350 1,350 Communication 1,000 500 600 500 1,000 1,000 1,000 4,060 5,500 500 49,340 1,000 66,000 Total Utility Services 1,000 500 600 500 1,000 1,000 1,000 4,060 5,500 500 150,690 1,000 167,350 Total FY 2024 Operating Budget 633,930 476,476 916,418 787,858 529,108 292,629 812,544 767,114 192,358 636,374 867,219 225,973 7,138,000 Virgin Islands Economic Development Authority FY 2025 Budget by Department V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 44 VEHICLE LISTING FOR USVIEDA Year Make Model Assigned Use Fund Source Island 2013 Chevrolet Traverse Executive - USVIEDA USVIEDA Funds STT 2024 Chevrolet Equinox Executive - ACEO- EDA 2 USVIEDA Funds STT 2024 Chevrolet Equinox Executive - CFO -EDA 4 USVIEDA Funds STT 2015 Chevrolet Colorado General -EDA 14 USVIEDA Funds STT 2018 Chevrolet Equinox General- EDA 6 USVIEDA Funds STT 2018 Chevrolet Trax General- EDA 12 USVIEDA Funds STT 2018 Chevrolet Trax General- EDA 13 USVIEDA Funds STX 2024 Chevrolet Equinox Executive - CEO- EDA 1 USVIEDA Funds STX 2015 Chevrolet Colorado General - EDA 11 USVIEDA Funds STX 2016 Chevrolet Traverse Executive - USVIEDA USVIEDA Funds STX 2015 Chevrolet Equinox General- EDA 5 USVIEDA Funds STX 2016 Chevrolet Colorado General-EDA10 USVIEDA Funds STX 2024 Chevrolet Equinox Park Superintendent- EDA 7 USVIEDA Funds STX 2018 Chevrolet Equinox General- EDA 3 USVIEDA Funds STX 2013 Dodge RAM Industrial Park (EDA 9) Industrial Park STX REAL PROPERTY LEASED BY USVIEDA Lessor Address Sq. Ft. Annual Rent Lease Terms Use St. Thomas Properties LLC Nisky Shopping Center Second Floor, Suite 620 St. Thomas 7,928 $216,954 January 1, 2023- December 31, 2027 Office Space VI Economic Development Park Corp. 116 King Street Frederiksted, St. Croix 12,400 $49,465 Month-to- Month Office Space Crown Holdings 18B-2 Lindberg Bay St. Thomas 2,000 $20,481 Month-to- Month Storage Space V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 45 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 have 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 condition. 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 employee travel between islands. Utilities: This expense includes electricity, water, telephone, cell phones, and internet service costs. V.I. Economic Development Authority – Fiscal Year 2025 Operating Budget 46 NOTES