Virgin Islands Public Finance Authority / Government of the United States Virgin Islands Fiscal Year 2016 Annual Operating Data Report

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Virgin Islands Public Finance Authority / Government of the United States Virgin Islands Fiscal Year 2016 Annual Operating Data Report"

Transcription

1 Virgin Islands Public Finance Authority / Government of the United States Virgin Islands Fiscal Year 2016 Annual Operating Data Report Revenue Bonds Matching Fund Loan Note Virgin Islands Public Finance Authority Revenue Refunding Bonds (Virgin Islands Matching Fund Loan Note), Series 2013B (Senior Lien), $51,365,000, Dated: October 17, 2013 Virgin Islands Public Finance Authority Revenue Refunding Bonds (Virgin Islands Matching Fund Loan Note), Series 2013A (Senior Lien), $36,000,000, Dated: September 19, 2013 Virgin Islands Public Finance Authority Revenue Bonds (Virgin Islands Matching Fund Loan Note), Series 2012A (Working Capital), $142,640,000, Dated: September 13, 2012 Virgin Islands Public Finance Authority, $399,050,000 consisting of Revenue Bonds (Virgin Islands Matching Fund Loan Note) Series 2010A (Senior Lien/Working Capital), $305,000,000 Revenue Bonds (VI Matching Fund Loan Note) Series 2010B (Subordinate Lien/ Working Capital), $94,050,000, Dated: July 15, 2010 Virgin Islands Public Finance Authority Subordinated Revenue Bonds (Virgin Islands Matching Fund Loan Note Cruzan Project), Series 2009A, $39,190,000 Dated: December 17, 2009 Virgin Islands Public Finance Authority Revenue and Refunding Bonds (VI Matching Fund Loan Notes) $458,840,000 consisting of Series 2009A 1 (Senior Lien/Capital Projects/Tax Exempt), $86,350,000 and Series 2009A 2 (Senior Lien/Capital Projects/Federally Taxable), $8,650,000 and Series 2009B (Senior Lien/Refunding), $266,330,000 and Series 2009C (Subordinate Lien/Refunding), $97,510,000 Dated: October 28, 2009 Virgin Islands Public Finance Authority Subordinated Revenue Bonds (Virgin Islands Matching Fund Loan Note Diageo Project), Series 2009A, $250,000,000, Dated: July 9, 2009 Matching Fund Revenues Series 2013B, 2013A, 2012A WC, 2010A&B, 2009A Diageo Project, 2009A Cruzan Project, 2009A 1&A 2&B&C Cover Over Rate Historical Table The history of the federal excise tax rates and corresponding Cover Over Rates per gallon of rum since 1984 Calendar Excise Tax Cover Over Year Rate* Rate* Legislation 2012 $13.50 $13.25 American Taxpayer Relief Act of $13.50 $13.25 American Taxpayer Relief Act of $13.50 $13.25 American Taxpayer Relief Act of $13.50 $13.25 Tax Relief Extension Act of $13.50 $13.25 Tax Relief Extension Act of 2015 * Per proof gallon Source:

2 Series 2010A&B, 2009A Diageo Project, 2009A Cruzan Project, 2009A 1&A 2&B&C Historical Matching Fund Revenues ($000's) Advance Received for Current Fiscal Year [A] $195,400 $259,485 $242,004 $177,881 $213,325 Payment Adjustment for Two Fiscal Years Prior [B] $0 ($3,401) ($11,167) $19,770 $3,910 Estimated Adjustment for Two Fiscal Years Later [C] ($11,167) $19,769 ($3,910) $9,126 $18,174 Actual Matching Fund Revenues for Current Fiscal Year [A+B+C=D] $184,233 $275,853 $226,927 $206,777 $227,589 Senior Indenture Senior Lien Bonds Maximum Debt Service [E] $62,943 $69,390 $69,757 $69,757 $69,751 Senior Indenture Senior Lien Bonds Debt Service Coverage [A/E=F] Senior Indenture Subordinate Lien Bonds Maximum Debt Service [G] $15,823 $15,823 $15,822 $15,822 $15,823 Senior Indenture Subordinate Lien Bonds Debt Service Coverage [(D E)/G=H] Aggregate Senior Bonds Debt Service Coverage [D/(E+G)=I] Source: Office of Management and Budget / Standard International Group Series 2010A&B, 2009A Diageo Project, 2009A Cruzan Project, 2009A 1&A 2&B&C Subsidy and Support Payments Calendar Years * 2016 Rum Promotion $3,525,899 $3,710,473 $2,831,937 $1,008,000 $990,234 Marketing Support $42,730,311 $64,462,550 $58,486,284 $27,783,541 $54,168,547 Molasses Subsidy $30,035,007 $38,702,644 $34,566,957 $23,885,772 $27,326,605 Total $76,291,217 $106,875,667 $95,885,178 $52,677,313 $82,485,386 *Note: At the time of Fiscal Year 2015 advance, the enacted rate was $ Source: V.I. Public Finance Authority Series 2013B, 2013A, 2012A WC Historical Matching Fund Revenues ($000's) (Duplicated Table: Information also available in Table entitled "Historical Matching Fund Revenues ($000's)", beginning on page 1.) Total Matching Fund Revenues $184,233 $275,853 $226,927 $206,777 $227,589 Senior Indenture Senior Lien Bonds Debt Service $62,943 $69,390 $69,757 $69,757 $69,751 Senior Indenture Senior Lien Bonds Debt Service Coverage

3 The Rum Industry Series 2013B, 2013A, 2012A WC Leading Rum Brands in the United States Liter Cases Sold Brand (in thousands) Bacardi 9,541 Captain Morgan 6,112 Malibu 1,780 Castillo 849 Admiral Nelson 800 Cruzan 782 Sailor Jerry 734 Ronrico Liter Cases Sold Brand (in thousands) Bacardi 7,831 Captain Morgan 5,730 Malibu 1,886 Castillo 777 Admiral Nelson 820 Cruzan 741 Sailor Jerry 733 Ronrico Liter Cases Sold Brand (in thousands) Bacardi 7,452 Captain Morgan 5,755 Malibu 1,845 Admiral Nelson 836 Cruzan 750 Sailor Jerry 738 Castillo 722 The Kraken

4 9 Liter Cases Sold Brand (in thousands) Bacardi 7,172 Captain Morgan 5,655 Malibu 1,861 Admiral Nelson 844 Cruzan 762 Sailor Jerry 744 Castillo 677 The Kraken Liter Cases Sold Brand (in thousands) Bacardi 7,100 Captain Morgan 5,695 Malibu 1,967 Admiral Nelson 850 Cruzan 775 Sailor Jerry 744 Castillo 670 The Kraken 450 Source: Adams Liqour Handbook Series 2010A&B, 2009A Diageo Project, 2009A Cruzan Project, 2009A 1&A 2&B&C Distilled Spirits Market Share * 2016 Whiskeys 23.1% 24.1% 23.8% 24.4% 25.1% U.S. Whiskeys 10.4% 10.6% 11.2% 11.5% 11.9% Scotch 4.1% 4.9% 4.3% 4.2% 4.3% Other Whiskeys 8.6% 8.5% 8.5% 8.7% 8.9% ` Non Whiskeys 76.9% 75.9% 76.2% 75.6% 74.9% Rums 13.0% 13.2% 11.8% 11.4% 11.1% Vodka 33.6% 34.1% 34.0% 33.7% 33.3% Gin 5.3% 5.3% 4.9% 4.7% 4.6% Others 25.0% 23.2% 25.5% 25.6% 25.9% Source: Adams Liqour Handbook *Numbers subject to revisions in following year

5 Series 2013B, 2013A, 2012A WC, 2010A&B, 2009A Diageo Project, 2009A Cruzan Project, 2009A 1&A 2&B&C Molasses Subsidy Payments Amount of Molasses Molasses Fiscal Year Gallons Subsidy ,420,893 $30,035, ,133,398 $38,702, ,913,125 $34,566, ,999,280 $23,885, ,876,582 $27,326,605 Source: V.I. Public Finance Authority Series 2013B, 2013A, 2012A WC, 2010A&B, 2009A Cruzan Project, Rum Promotion and Marketing Support Payments (Duplicated Table: Information also available in Table entitled "Subsidy and Support Payments" on page 2.) Rum Promotion $3,525,899 $3,710,473 $2,831,937 $1,008,000 $990,234 Marketing Support $42,730,311 $64,462,550 $58,486,284 $27,783,541 $54,168,547 Total $46,256,210 $68,173,023 $61,318,221 $28,791,541 $55,158,781 Source: V.I. Public Finance Authority Series 2013B, 2013A, 2012A WC, 2010A&B, 2009A Diageo Project, 2009A Cruzan Project, 2009A 1&A 2&B&C Outstanding Indebtedness of the Authority See table below entitled "Outstanding Indebtedness of the Authority" See table entitled "Summary of Outstanding General Obligations of the Government" on the Gross Receipts Loan Note tab Source: V.I. Public Finance Authority Series 2012A WC Outstanding Indebtedness of the Authority Name of Bonds/Notes Initial Principal Amount Amount Outstanding Senior Indenture and Subordinate Indenture Bonds Secured by Matching Fund Revenues Revenue Bonds, Series 2009A 1, Series 2009B and Series 2009C $458,840,000 $316,815,000 Subordianted Revenue Bonds, Series 2010A and 2010B $399,050,000 $390,570,000 Subordianted Revenue Bonds, Series 2012A $142,640,000 $141,015,000 Subordianted Revenue Bonds, Series 2013A $36,000,000 $33,790,000 Subordianted Revenue Bonds, Series 2013B $51,365,000 $46,295,000

6 The Authority also has issued the following series of bonds, none of which are secured by Matching Fund Revenues: Senior Indenture and Subordinate Indenture Bonds and Notes Secured by Gross Receipts Taxes GRT Series 2006 $219,490,000 $199,830,000 GRT Series 2012A $197,065,000 $167,280,000 GRT Series 2012B $31,740,000 $27,220,000 GRT Series 2012C $35,115,000 $31,725,000 GRT Series 2013A $5,430,000 $2,199,722 GRT Series 2014A $49,640,000 $48,160,000 GRT Series 2014B $14,000,000 $10,000,000 GRT Series 2014C $247,050,000 $242,495,000 GRT Series 2014D $5,765,000 $5,600,000 GRT Series 2014E $40,000,000 $0 Tax Increment Revenue Bond Anticipation Notes: Series 2012A Property Tax Increment $13,700,000 $12,762,354 Series 2011 Property Tax Revenue $13,000,000 $4,996,954 General Obligation Subordinate Lien Note Source: V.I. Public Finance Authority (See Senior Indenture and Subordinate Indenture Bonds and Notes Secured by Gross Receipts Taxes Series 2012A&B,C, 2012A WC, 2010A&B The information regarding amendments to the Disclosure Agreement There are no amendments to the Disclosure Agreements.

7 Virgin Islands Public Finance Authority / Government of the United States Virgin Islands Fiscal Year 2016 Annual Operating Data Report Revenue Bonds Gross Receipts Taxes Loan Notes 1 Virgin Islands Public Finance Authority Revenue Bonds (Virgin Islands Gross Receipts Taxes Loan Note), Series 2014D (Federally Taxable), $5,765,000 Dated: December 3, Virgin Islands Public Finance Authority Revenue and Revenue Refunding Bonds (Virgin Islands Gross Receipts Taxes Loan Note), Series 2014C (Tax Exempt), $247,050,000 Dated: November 14, Virgin Islands Public Finance Authority Revenue Bonds (Virgin Islands Gross Receipts Taxes Loan Note), Series 2014A (Working Capital), $49,640,000 Dated: September 5, Virgin Islands Public Finance Authority Revenue Bonds (Virgin Islands Gross Receipts Taxes Loan Note), Series 2012C (Capital Projects/Tax Exempt), $35,115,000 Dated: December 19, Virgin Islands Public Finance Authority Revenue Refunding Bonds (Virgin Islands Gross Receipts Taxes Loan Note), Series 2012B (Broadband Project Refinancing/Federally Taxable), $31,740,000 Dated: November 20, Virgin Islands Public Finance Authority Revenue Refunding Bonds (Virgin Islands Gross Receipts Taxes Loan Note), Series 2012A (Working Capital Refinancing/Tax Exempt), (VI)$197,065,000 Dated: November 20, Virgin Islands Public Finance Authority Revenue Bonds (Virgin Islands Gross Receipts Taxes Loan Note) Series 2006, $219,490,000 Dated: September 28, 2006 Series 2006 Summary of Outstanding General Obligations of the Government and Outstanding Revenue Obligations (as of September 30, 2016) Summary of Outstanding General Obligations Outstanding Issuer Issue Description Amount Security 1 Virgin Islands Public Finance Authority Revenue Bonds, Series 2006 (Virgin Islands Gross Receipt $199,830,000 Taxes Loan Note) ("Series 2006 Bonds") 2 Virgin Islands Public Finance Authority Subordinate Lien Bond Anticipation Notes, Series 2012A $12,762,354 Property Tax Increment (Virgin Islands Gross Receipts Taxes Loan Notes) ("2009A Subordinate Lien Revenue Notes") 3 Virgin Islands Water & Power Authority WAPA Guaranty Loan (Paid off in August 2016) $0 Gross Receipt Taxes Loan Note payable by the Government and General Obligation of the Government Gross Receipt Taxes Loan Note payable by the Government and General Obligation of the Government A guaranty of the debt of WAPA; not a current liability of the Government 4 Virgin Islands Public Finance Authority 2011 Property Tax Revenue Anticipation Note $4,996,954 Gross Receipt Taxes Revenue Anticipation Note 5 Virgin Islands Public Finance Authority Revenue Refunding Bonds, Series 2012A (Virgin Islands Gross $167,280,000 Gross Receipt Taxes Loan Note payable by the Government and General Obligation of the Government Receipt Taxes Loan Note) ( "Series 2012A Bonds") 6 Virgin Islands Public Finance Authority Revenue Refunding Bonds, Series 2012B (Virgin Islands Gross $27,220,000 Gross Receipt Taxes Loan Note payable by the Government and General Obligation of the Government 7 Virgin Islands Public Finance Authority (Receipt Taxes Loan Note) ( "Series 2012B Bonds") Revenue Refunding Bonds, Series 2012C (Virgin Islands Gross Receipt Taxes Loan Note) ("Series 2012C Bonds") $31,725,000 Gross Receipt Taxes Loan Note payable by the Government and General Obligation of the Government

8 Series 2006 Summary of Outstanding General Obligations of the Government and Outstanding Revenue Obligations continues... Summary of Outstanding General Obligations continues... Outstanding Issuer Issue Description Amount Security 8 Virgin Islands Public Finance Authority Revenue Loan, Series 2013A (Virgin Islands Gross Receipt $2,199,722 Gross Receipt Taxes Loan Note payable by the Government and General Obligation of the Government Taxes Loan Note) ("Series 2013A Bonds") (Police Fleet Loan) 9 Virgin Islands Public Finance Authority Revenue Refunding Bonds, Series 2014A (Virgin Islands $48,160,000 Gross Receipt Taxes Loan Note) ("Series 2014A Bonds") 10 Virgin Islands Public Finance Authority Revenue Loan, Series 2014B (Virgin Islands Gross Receipt $10,000,000 Taxes Loan Note) ("Series 2014B Bonds") (IRS Loan) 11 Virgin Islands Public Finance Authority Revenue Capital & Refunding Bonds, Series 2014C (Virgin $242,495,000 Islands Gross Receipt Taxes Loan Note) ("Series 2014C Bonds") 12 Virgin Islands Public Finance Authority Revenue Bonds, Series 2014D (Virgin Islands Gross Receipt $5,600,000 Taxes Loan Note) (the "Series 2014D Bonds") 13 Virgin Islands Public Finance Authority Revenue Bonds, Series 2014E (Virgin Islands Gross Receipt $0 Taxes Loan Note) (the "Series 2014E Bonds") (Working Cap. Loan) Gross Receipt Taxes Loan Note payable by the Government and General Obligation of the Government Gross Receipt Taxes Loan Note payable by the Government and General Obligation of the Government Gross Receipt Taxes Loan Note payable by the Government and General Obligation of the Government Gross Receipt Taxes Loan Note payable by the Government and General Obligation of the Government Gross Receipt Taxes Loan Note payable by the Government and General Obligation of the Government Summary of Outstanding Revenue Obligation 1 Virgin Islands Public Finance Authority Subordinated Revenue Bonds, Series 2009A (Virgin Islands $237,095,000 Matching Fund Loan Note Diageo Project) 2 Virgin Islands Public Finance Authority Revenue Bonds, Series 2009A 1, Series 2009B and Series 2009C $316,815,000 (Virgin Islands Matching Fund Loan Note) 3 Virgin Islands Public Finance Authority Subordinated Revenue Bonds, Series 2009A (Virgin Islands $35,575,000 Matching (Virgin Islands Matching Fund Loan Note Cruzan Project) 4 Virgin Islands Public Finance Authority Subordinated Revenue Bonds, Series 2010A and 2010B (V.I. $390,570,000 Matching (V.I. Matching Fund Loan Note Working Capital) 5 Virgin Islands Public Finance Authority Subordinated Revenue Bonds, Series 2012A (Virgin Islands $141,015,000 Matching (V.I. Matching Fund Loan Note Working Capital) 6 Virgin Islands Public Finance Authority Subordinated Revenue Bonds, Series 2013A (Virgin Islands $33,790,000 Matching Fund Loan Note ) 7 Virgin Islands Public Finance Authority Subordinated Revenue Bonds, Series 2013B (Virgin Islands $46,295,000 Matching Fund Loan Note ) Matching Fund Loan Notes payable by the Government Matching Fund Loan Notes payable by the Government Matching Fund Loan Notes payable by the Government Matching Fund Loan Notes payable by the Government Matching Fund Loan Notes payable by the Government Matching Fund Loan Notes payable by the Government Matching Fund Loan Notes payable by the Government Source: V.I. Public Finance Authority

9 Gross Receipts Taxes Data: Historic Gross Receipts Taxes Collections Gross Receipts Taxes Gross Receipts as Percentage of Fiscal Year Taxes General Fund Revenues 2012 $156, % 2013 $155, % 2014 $156, % 2015 $158, % 2016 $160, % Source: Department of Finance Series 2014A,C,D, 2012A&B,C Gross Receipts Taxes AUP Reports and Financial Statements ($000s) Gross Receipts Gross Receipts % Change Taxes per Taxes per Financial (AUP Reports to Fiscal Year AUP Reports statements Financial Statements) 2012 $150,522 $156, $153,154 $155, $158,249 $156, $159,194 $158, $158,641 $160, Source: Department of Finance Gross Receipts Taxes Debt Service and Debt Service Coverage Gross Receipts Taxes Debt Service on Fiscal Year Less $250,000 Outstanding Bonds Debt Service Coverage 2012 $156,196 $41, x 2013 $155,733 $42, x 2014 $156,640 $50, x 2015 $158,024 $40, x 2016 $160,771 $50, x Source: Department of Finance Percentage of Gross Receipts Tax Collections from the Top 5 and the Top 10 Taxpayers Year GRT Collections TOP TEN (10) Payers TOP FIVE (5) Payers 2012 $154,997,045 $24,525,491 $17,194,383

10 2013 $154,037,753 $29,307,991 $19,158, $157,340,693 $18,349,140 $12,396, $161,129,120 $32,657,197 $19,570, $160,585,193 $36,192,345 $21,856,570 Source: Internal Revenue Bureau Series 2014A,C,D, 2012A&B,C Gross Receipts Taxes Amnesty Programs 2012 Total Interest Amount of Outstanding and Penalties Waived Taxes Paid Tax Amnesty Periods N/A N/A N/A 2013 Total Interest Amount of Outstanding and Penalties Waived Taxes Paid Tax Amnesty Periods $44,454 $306,993 CY Total Interest Amount of Outstanding and Penalties Waived Taxes Paid Tax Amnesty Periods N/A N/A N/A 2015 Total Interest Amount of Outstanding and Penalties Waived Taxes Paid Tax Amnesty Periods N/A N/A N/A 2016 Total Interest Amount of Outstanding and Penalties Waived Taxes Paid Tax Amnesty Periods N/A N/A N/A Source: Internal Revenue Bureau

11 Real Property Tax Data: Series 2014A,C,D United States Virgin Islands Property Tax Historical Property Tax Collection 2011 Property Tax Collected $88,049 $98,390 $98,564 $39, $97, $54,131 Percentage of General Fund Revenue 13% 14% 15% 5% 13% 12% Source: Department of Finance United States Virgin Islands Property Tax Assessed Value and Exemptions Fiscal Years (millions) Total Local and Taxed Assessed Federal Assessed Year Value Government Other EDC Value Levy , , , , , , , , , , , , , , , , , , , , Source: Office of the Tax Assessor Largest Real Property Taxpayers of the United States Virgin Islands Calendar Year 2016 Name Assessment Taxes LOCKHART / DUDLEY 65,272,500 $ 442,823 TOPA EQUITIES 59,418,400 $ 422,209 (RALPH PAIEWONSKY PROPERTIES) CBI ACQUISITIONS LLC 47,4897,00 $ 337,652 HARTMAN FAMILY 43,280,100 $ 279,814 TUTU PARK LTD 32,196,600 $ 228,918 SUGAR BAY CLUB & RESORT 26,887,400 $ 190,211 HARBOR VIEW APARTMENTS ASSOC. 15,087,000 $ 140,500 U S VIRGIN ISLANDS PROPERTIES LLC 22,561,100 $ 111,587 SUNNY ISLE DEVELOPERS LLC 15,509,200 $ 110,223 GINN LA FUND IV, LLC GINN LA USVI GOLF, LLP GINN LAFUND SANCTUARY, LLC 18,257,960 $ 108,653

12 Income Tax Collection Data: Series 2014A,C,D United States Virgin Islands Historical Income Tax Collections Income Taxes Collected $379,047 $389,914 $394,578 $429,642 $400,950 Percentage of General Fund Revenues 55.70% 56.80% 68.45% 69.87% 68.32% Source: Internal Revenue Bureau Excise Tax Data: Historical Excise Tax Collections ($ in millions) Excise Taxes Collected $23,080 $22,728 $23,394 $22,979 $23,439 Percentage of General Fund Revenue 3.6% 3.3% 3.5% 3.0% 3.0% Source: Department of Finance Transportation Trust Fund Revenues Data: Transportation Trust Fund Revenues Cash Basis ($000's) Highway Users Taxes $2,588,511 $2,283,969 $2,827,257 $3,039,797 $3,322,882 Motor Vehicle Registration Fees and Driver s License Fees $5,973,278 $5,720,205 $5,782,896 $6,806,096 $7,146,327 Traffic Law Violation Fees $1,119,587 $945,945 $572,999 $616,500 $635,008 TOTAL $9, $8, $9, $10, $11, Source: Department of Finance Motor Fuel Taxes $1,851,419 $866,153 $0 $0 $0 *Pursuant to Act No. 7360, a motor fuel taxes exclusively used to fund new generating units at the Virgin Islands Water and Power Authority and went into effect on June 19, Source: Department of Finance Hotel Occupany Tax Revenues Data: Hotel Occupancy Tax Revenues Hotel Occupancy Taxes $19,890 $21,746 $22,403 $26,655 $28,828 (Based on fiscal year) Source: Bureau of Economic Research Matching Fund Revenues Data: Series 2014A,C,D, 2012A&B,C Cover Over Rate Historical Table ( Duplicated Table See Cover Over Rate Historical Table under "Matching Fund Loan Note" tab on page 1.)

13 The history of the federal excise tax rates and corresponding Cover Over Rates per gallon of rum since Excise Tax Calendar Year Rate* Cover Over Rate* 2012 $13.50 $ $13.50 $ $13.50 $ $13.50 $ $13.50 $13.25 * Per proof gallon Source: Legislation American Taxpayer Relief Act of 2012 American Taxpayer Relief Act of 2012 American Taxpayer Relief Act of 2012 Tax Relief Extension Act of 2015 Tax Relief Extension Act of 2015 Matching Fund Revenues (Duplicated Table See Historical Matching Fund Revenues Table under "Matching Fund Loan Note" tab beginning on page 1.) Excise Tax Revenues for Current Fiscal Year $195,400 $259,485 $242,004 $177,881 $213,325 Plus/Minus Payment Adjustment for 2 Fiscal Years Prior $0 $3,401 $11,167 $19,770 $3,910 Actual Advance Received for Current Fiscal Year $195,400 $256,084 $230,837 $197,651 $209,415 Actual Earnings for Current Fiscal Year $184,233 $275,853 $226,927 $206,777 $227,588 Estimated Adjustment for 2 Fiscal Years Later $11,167 $19,769 $3,910 $9,126 $18,174 Actual Advance Received $195,400 $259,485 $242,004 $177,881 $213,325 Less: Matching Fund Bonds Debt Service $78,766 $85,213 $85,579 $85,579 $85,580 Surplus After Payment of Debt Service $116,634 $174,272 $156,425 $92,302 $127,745 Source: Office of Management & Budget and V.I. Public Finance Authority Items in red are corrected for FY Government Financials Data: Series 2014A,C,D Government's Historical Shortfalls of Revenues over Expenditures and Net Deficits (as restated) 2014 (as restated) Shortfalls of Revenues over Expenditures $164,628 $127,028 $41,845 $176,769 $6,955 Net Deficits $1,397,910 $1,524,938 $3,547,916 $3,724,685 $3,696,916 Source: Department of Finance

14 Series 2006 Government of the Virgin Islands General Fund (Budgetary Basis) Revenues and Expenditures ($000's) Revenues: Taxes $574,665 $507,244 $501,800 $459,170 $623,287 Other Sources of Revenue (federal grants) $102,200 Matching Fund Contribution Transportation Trust Fund Contribution Charges for services $9,632 $13,508 $13,998 $13,998 $63,494 Other Contributions $22,315 $83,357 $90,555 $146,058 $115,986 Total Revenues $708,812 $604,109 $606,353 $619,226 $802,767 Expenditures: General Government $345,308 $176,279 $522,075 $412,339 $355,829 Public Safety $101,499 $123,151 $101,802 $105,329 $117,803 Health and Welfare $142,331 $144,086 $169,947 $167,519 $110,659 Education $185,427 $200,184 $160,846 $165,276 $173,678 Sanitation $0 $0 $0 $0 Transportation $37,737 $30,365 $32,808 $32,884 $32,564 Culture and Recreation $25,572 $21,760 $19,013 $21,024 $22,386 Debt Service $0 $0 $0 $0 $0 Total Expenditures $837,874 $695,825 $1,006,491 $904,371 $812,919 Source: Department of Finance United States Virgin Islands Summary Statement of Principal Components of General Fund (Cash Basis) Revenues (millions) Income 379, , , , ,299 Gross Receipts 150, , , , ,162 Real Property 98,390 98,564 39,447 97,836 60,242 Excise 23,080 22,728 23,394 22,979 24,187 Other Taxes 9,423 13,165 11,110 12, ,369 Total Taxes 660, , , , ,259 Other Sources of Revenue 15,320 16,131 15,128 27, ,612 Total Revenue 675, , , , ,871 Source: Department of Finance Series 2014A,C,D, 2012A&B,C Government of the Virgin Islands Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds UNAUDITED DRAFT

15 ($ In thousands) General PFA Debt Service PFA Capital Project Federal Grants Other Governmental Total Governmental Revenues: Taxes $ 612,886 $ 266,711 $ 1,622 $ 17,659 $ 898,878 Federal grants and contributions 223,000 Charges for services 10,425 7, ,715 5, ,431 Tobacco settlement rights 11,506 13,920 25,426 Interest and other 2,157 2,157 Total revenues 38,101 3, ,094 75, , ,605 1, ,715 73,547 1,272,734 Expenditures: Current: General government Public safety 523, ,843 28,824 32, ,998 Health 65,659 3,062 (35) 68,686 Public housing and welfare 52,476 18, ,781 Education 57, ,215 2, ,905 Transportation and communication 176,550 23,886 6, ,561 Culture and recreation 18,162 1,688 24,933 44,783 Capital outlays 7,937 (4) 7,933 Debt service: 2,319 5,633 16,541 6,220 30,713 Principal Interest 100,819 73,760 1,585 1, ,839 Bond issuance costs 1, , ,633 Total expenditures 1,596 1,596 Excess (deficiency) of 404 2,780 3,184 revenue over (under) 1,007, ,744 12, ,959 75,743 1,517,612 expenditures Other financing sources (uses): (111,105) 95,861 (10,194) 5,756 (2,196) (244,878) Bonds issued Refunding bonds issued Deferred Costs of Refunding 89,880 89,880 Loans issued Bond premiums Transfers from other funds 20,000 1,270 21,270 Transfers to other funds 10,356 1,120 11,476 Total other financing 93, , ,816 sources (uses), net (16,443) (92,673) (109,116) Net change in fund balances 96,829 (82,166) 92,270 14, ,326 Fund (deficit) balance, beginning of year Fund (deficit) balance at end of year (14,276) 13,695 82,076 5,756 12,197 Source: Department of Finance (58,810) 243, ,529 (8,833) 70, ,816 (73,086) 257, ,605 (3,077) 83, ,816

16 Series 2006 Government of the Virgin Islands Statement of Revenues, Expenditures and Changes in Fund Balances: General Fund and Debt Service Fund ($000's) Revenues: AUDITED DRAFT Taxes $821,833 $892,165 $900,292 $880,364 $881,219 Payments in lieu of taxes $223,000 Federal grants and contributions $24,058 $13,968 $13,780 $10,919 $17,999 Charges for services $22,071 $9,969 $8,308 $10,903 $11,506 Interest and other $27,325 $20,158 $23,487 $47,112 $41,748 Total revenues $895,287 $936,260 $945,867 $949,298 $1,175,472 Expenditures: General government $441,611 $483,107 $490,219 $477,575 $528,128 Public safety $51,036 $49,996 $58,100 $57,343 $65,659 Health $61,835 $31,483 $32,209 $45,313 $52,476 Public housing and welfare $54,457 $52,560 $62,203 $59,822 $57,540 Education $165,523 $165,250 $183,069 $174,675 $176,550 Transportation and communication $20,795 $19,168 $19,440 $18,564 $18,162 Culture and recreation $6,546 $6,964 $7,343 $7,299 $7,937 Capital Outlay $21,423 $24,687 $24,790 $12,468 $7,952 Debt Service 157, , ,529 $402,264 $283,322 Principal $54,042 $319,023 $141,731 $298,394 $176,164 Interest $102,958 $100,410 $106,798 $103,870 $107,158 Bond issuance costs $0 $0 $0 $7,416 $3,184 Total Expenditures $980,226 $1,252,648 $1,125,902 $1,262,739 $1,200,910 Excess (deficiency) of revenue over (under) expenditures ($84,939) ($316,388) ($180,035) ($313,441) ($25,438) Other financing sources (uses): Federal Economic Stimulus Loans Issued $14,668 $42,660 $56,770 $80,000 $21,270 Bond Discounts/Premiums ($3,442) ($7,545) ($3,202) $13,991 Costs of Issuance of Loans Bonds Issued $142,640 $299,920 $101,005 $31,265 $89,880 Refunding bonds issued $221,550 Deferred Costs of Refunding Transfers from Other Funds $115,398 $103,737 $106,285 ($1,959) $93,423 Transfers to Other Funds ($119,029) ($105,415) ($115,328) $117,504 ($109,116) Premium on Bonds Issued $5,628 $16,942 $7,727 ($104,211) $11,476 Total other financing Sources (uses), net $155,863 $350,299 $153,257 $358,140 $106,933 Net change in fund balances $70,924 $33,911 ($26,778) $44,699 $81,495 Fund balances (deficits) Beginning of fiscal year $268,415 $339,339 $275,779 $249,001 $293,699 End of fiscal year $339,339 $373,250 $249,001 $293,700 $375,194 Source: Department of Finance

17 Government Employees' Retirement System Data: Series 2012A&B,C, 2006 Employees' Retirement System of the Government of the Virgin Islands Employee and Employer Contributions Employee Contribution Rate Tier I Tier II Members of the Legislature 11% 14% All other regular employees 10% 10.5% Public Safety employees 12% % Hazardous duty employees who elect early retirement system 12% % Judges 13% 14% Source: Government Employees' Retirement System Series 2014A,C,D Schedule of Government Contributions Actuarially Determined Ratio of Actuarially Determined Annual Required Actual Government Annual Required Contributions FYE Sept. 30 Contributions Contributions Made Actual contribution Made 2012 $178,644,349 $66,677, % 2013 $172,439,842 $64,431, % 2014 $189,715,251 $68,298, % 2015 $200,089,791 $72,287, % 2016 Not available $86,316,998 Not available Source: Government Employees' Retirement System Series 2014A,C,D Investment Return Actuarial Value vs. Market Value Actuarial Value Market Value Investment Return Investment Return FYE Sept. 30 Amount Percent Amount Percent 2012 $23,046, % $174,056, % 2013 $72,583, % $111,523, % 2014 $77,187, % $61,475, % 2015 $6,869, % $4,932, % 2016 Not available Not available Not available Not available Source: Government Employees' Retirement System FY 2016 data will be available by September 2017.

18 Series 2014A,C,D Development of GERS Assets Net Actuarial Employer Employee Other Investment Administrative Benefit FYE Sept. 30 Contributions Contributions Income Return Expenses Payments 2012 $66,677,155 $37,727,063 $2,239,690 $23,046,297 $18,481,417 $233,096, $64,431,322 $34,090,376 ($783,854) $72,583,326 $19,581,770 $240,564, $68,298,617 $34,020,107 $3,573,611 $77,187,305 $18,867,491 $239,713, $72,287,934 $36,245,015 $1,211,300 $6,869,860 (1) $15,576,603 $246,072, $86,316,998 $41,444,848 $2,142,307 Not available $13,989,136 $249,104,096 Source: Government Employees' Retirement System 1. Includes adjustment due to restatement from draft financials Series 2014A,C,D Schedule of GERS Funding Progress Actuarial Actuarial Unfunded Actuarial Actuarial Annual UAAL as a Valuation Value of Accrued Liability Accrued Funded Covered Percentage of Date Assets (UAAL) Liability Ratio Payroll Covered Payroll 2012 $1,327,038,907 $1,603,758,454 $3,168,037, % $381,012, % 2013 $1,237,213,473 $1,843,251,472 $3,080,464, % $370,131, % 2014 $1,154,728,837 $1,973,620,038 $3,128,348, % $355,603, % 2015 $991,041,251 $2,582,505,822 $3,573,547, % $368,023, % 2016 Not available Not available Not available Not available Not available Not available Source: Government Employees' Retirement System FY 2016 data will be available by September Series 2014A,C,D Schedule of OPEB Funding Progress Actuarial Actuarial Unfunded Actuarial Actuarial Annual UAAL as a Valuation Value of Accrued Liability Accrued Funded Covered Percentage of Date Assets (UAAL) Liability Ratio Payroll Covered Payroll 10/1/2012 $0 $999,464,000 $999,464, % $415,491, % 10/1/2013 $0 $982,484,000 $982,484, % $298,873, % 10/1/2014 $0 $1,015,109,000 $1,015,109, % (currently not available) (currently not available) 10/1/2015 (currently not available) (currently not available) (currently not available) (currently not available) (currently not available) (currently not available) 10/1/2016 (currently not available) (currently not available) (currently not available) (currently not available) (currently not available) (currently not available) Source: Department of Finance

19 United States Virgin Islands Economic and Demographic Data: Series 2006 Comparative United States Virgin Islands and United States Population Growth Annual Annual United States Percentage Percentage Virgin Islands Increase United States Increase Year Population (Decrease) Population (Decrease) , % 313,873, % , % 316,497, % , % 318,857, % , % 321,442, % , % 323,127, % Source: Bureau of Economic Research are Population Estimates Series 2006 Comparative Per Capita Income United States Virgin Islands and United States Annual Annual Percentage Percentage United States Increase Increase Year Virgin Islands (Decrease) United States (Decrease) , % 42, % , % 43, % , % 44, % , % 46, % 2015* (currently not available) (currently not available) 47, % 2016 (currently not available) (currently not available) 49, % Source: Bureau of Economic Research ` Series 2014A,C,D, 2012A&B,C Virgin Islands Population Calendar Years Percentage Year Population Increase (Decrease) , % , % , % , % , % (CY 2014, 2015 and 2016 are estimates.) ( 2014 and 2015 estimates have been updated.) Source: Bureau of Economic Research

20 United States Virgin Islands Labor Force, Employment and Unemployment Rates and United States Unemployment Rates Unemployment Rate Unemployment United States Rate Year Labor Force Employment Virgin Islands United States ,577 44, % 8.1% ,558 41, % 7.4% ,786 40, % 5.6% ,547 43, % 5.3% ,084 43, % 4.9% (Data by Calendar Year) Source: Bureau of Economic Research Annual Wage and Salary Employment United States Virgin Islands Private sector: Construction & mining 1,739 1,647 1,665 1,553 1,480 Manufacturing 1, Transportation, communication & public utilities 1,481 1,494 1,471 1,459 1,411 Wholesale & retail trade 7,002 6,755 6,645 6,596 5,971 Finance, insurance & real estate 2,276 2,236 2,182 2,169 2,132 Leisure and Hospitality 7,293 7,247 7,259 7,315 7,372 Information Services (professional, business, education, health) 9,220 9,082 9,042 9,018 9,895 Total Private Sector 28,990 27,681 27,298 26,943 27,045 U.S. federal government Territorial government 10,530 10,071 9,897 9,801 9,895 Total Government 11,476 11,023 10,845 10,761 10,832 Total 40,466 38,704 38,144 37,704 37,877 (Data by Calendar Year) Source: Bureau of Economic Research Series 2006 Selected Tourism Related Employment United States Virgin Islands Year Hotel & Other Lodging Placess 3,605 3,519 3,575 3,629 (currently not available) Gift shops & Other Retail Stores 1,326 1,257 1,224 1,174 (currently not available) Eating & Drinking Places 2,787 2,784 2,809 2,893 (currently not available) Transportation (by air) (currently not available) Transportation (Scenic and Sight Seeing)* (currently not available) Total 8,293 8,136 8,171 8,245 (currently not available) Source: Bureau of Economic Research *New line category added in FY Tourism Related Data has not yet been given to BER

21 United States Virgin Islands Visitor Arrivals Calendar Years St. Thomas / St. John: Air Visitors Cruise Passengers 1, , , , ,694.0 Total Visitors 2, , , , ,340.2 Number of Cruise Ship Visits St. Croix: Air Visitors Cruise Passengers Total Visitors Number of Cruise Ship Visits Total U.S. Virgin Islands: Air Visitors Cruise Passengers 1, , , , ,776.6 Total Visitors 2, , , , ,573.4 Number of Cruise Ship Visits Source: Bureau of Economic Research Totals by island include first and second port of entry arrivals. Total arrivals for the Virgin Islands include first territorial port of entry only; passengers visiting more than one U.S. Virgin Island during the same cruise are only counted once in the Virgin Islands total. Consequently, the Virgin Islands total will always be less than or equal to the sum of the two island totals as indicated. United States Virgin Islands Visitor Expenditures Calendar Years Tourists $784.7 $851.0 $ (currently not available) Excursionists: Day trip by air $ (currently not available) Cruise passengers $ (currently not available) Total $368.1 $381.2 $486.3 $443.6 (currently not available) Total Expenditures $1,152.8 $1,232.2 $1,319.0 $1,324.4 (currently not available) Source: Bureau of Economic Research *CY 2016 data is currently not available, data expected by September 2017

22 United States Virgin Islands Hotel and Other Tourist Accommodations Calendar Years * St. Thomas / St. John: Total rooms / units 3,809 3,796 3,755 3,842 3,683 Number of hotels Hotel rooms 2,948 2,972 2,931 2,979 2,923 Condominium / other units Occupancy rate (percent) 53.9% 57.8% 58.5% 61.1% 59.8% St. Croix: Total rooms / units 1,221 1,220 1,220 1,217 1,160 Number of hotels Hotel rooms Condominium / other units Occupancy rate (percent) 41.4% 41.2% 39.0% 44.4% 46.4% Total U.S. Virgin Islands: Total rooms / units 5,030 5,016 4,975 5,056 4,843 Number of hotels Hotel rooms 3,874 3,874 3,856 3,903 3,824 Condominium / other units 1,157 1,120 1,119 1,157 1,019 Occupancy rate (percent) 50.8% 53.8% 53.7% 57.1% 56.7% (2015 information is up to October) Source: Bureau of Economic Research *The Bureau of Economic Research provided revised data for the 2014 Comparative Per Capita Income United States Virgin Islands and United States (current dollars) (Duplicated Table See Comparative Per Capita Income table above on page 13.) Calendar Years Annual Annual United States Percentage Percent Virgin Islands Increase United States Increase , % 43, % , % 44, % , % 46, % 2015 (currently not available) (currently not available) 47, % 2016 (currently not available) (currently not available) 49, % *For the year 2016, the current comparative data for USVI will not be available until fall Source: Bureau of Economic Research

23 United States Virgin Islands Value of Construction Permits Calendar Years Percent St. Thomas/ Percent Percent Total USVI Increase St. John Increase St. Croix Increase Year (millions) (Decrease) (millions) (Decrease) (millions) (Decrease) % % % % % % % % % % % % % % % Source: Bureau of Economic Research United States Virgin Islands Residential Real Estate Market Sales Analysis Calendar Years St. Thomas / St. John: Number of Homes Sold Average Home Sales Price ($) $476,745 $713,183 $772,770 $644,945 $650,076 No. of Condominium Sales Average Condominium Sales Price ($) $259,862 $250,114 $253,705 $245,557 $252,291 St. Croix: Number of Homes Sold Average Home Sales Price ($) $391,310 $306,083 $321,910 $368,789 $336,215 No. of Condominium Sales Average Condominium Sales Price ($) $154,485 $147,438 $148,059 $174,096 $183,861 Total U.S. Virgin Islands: Number of Homes Sold Average Home Sales Price ($) $440,808 $538,369 $568,295 $508,811 $500,791 No. of Condominium Sales Average Condominium Sales Price ($) $247,630 $208,205 $201,990 $215,142 $223,237 Source: Bureau of Economic Research

24 United States Virgin Islands Ten Largest Employers (Private Sector) Name of Employer Principal Business 1 Kmart, Corporation Department Store 2 Marriott Hotel Service Frenchman's Reef Resort Hotel 3 Ritz Carlton Virgin Islands, Inc. Resort Hotel 4 Innovative Telephone Utility 5 HDVI Holding Co., Inc. Home Center/ Retail Services 6 Plaza Extra Supermarket West Grocery Store 7 World Fresh Market, LLC Grocery Store 8 Westin Resort Resort Hotel 9 Sugar Bay Club & Resort, Corp. Resort Hotel 10 Cost U Less Corporation Grocery Store Source: V.I. Department of Labor's Website Top 25 Largest Employers in the Virgin Islands 3rd Quarter 2016 Report. Economic Development Commission Historical Applicant Information 1 Number of Applications Received Number of Applications Approved Number of Applications Denied Applications Pending New Job Opportunities Approximate Wages by New Applicants $16,070,868 $23,044,827 $15,265,490 $8,645,450 $5,114,188 Minimum Potential Investment of New Applicants $46,946,884 $89,870,777 $63,865,315 $18,223,600 $4,437,000 Source: Economic Development Authority 1 Applications received in FY 2016: 7 New; 6 Extension; 4 Modifications; 1 Transfers

25 Series 2006 Capital Program funded by the Government Project Funded Amount ($ millions) Source of Funding Hazard Mitigation $42.0 Bond Proceeds and Federal Funds Wastewater Treatment Facilities $40.8 Bond Proceeds, Federal Funds, General Fund and other funding School Construction $40.2 Bond Proceeds Crown Bay Cruise Ship Terminal $35.0 Bond Proceeds Road and Other Repairs $33.3 Federal Funds Correctional Facilities $24.4 Bond Proceeds Enighed Pond Port $16.0 Bond Proceeds Government House Renovations $12.0 Bond Proceeds and Federal Funds WAPA Infrastructure Project St. Croix $10.7 Bond Proceeds Flood Control $10.3 Bond Proceeds, Federal Funds and other funding Frederiksted Waterfront Development $6.0 Bond Proceeds Red Hook Ferry Terminal Improvement $6.0 Bond Proceeds Henry E. Rohlsen FAA Tower $4.5 Federal Funds Charles Hardwood Phase I $4.0 Bond Proceeds Charles Hardwood Phase II $6.3 Bond Proceeds Cruz Bay Parking Facility $2.1 Bond Proceeds and other funding Sugar Estate Head Start $2.1 Federal Funds Turnbull Regional Public Library $23.4 Bond Proceeds and other funding St. Croix Transfer Station $7.0 Bond Proceeds Bovoni Landfill Monitoring System $3.8 Bond Proceeds Frederkisted Economic Revitalization Project $17.7 Bond Proceeds Addelita Cancryn JHS Auditorium $3.0 Bond Proceeds Ivanna Eudora Kean Track & Field $2.5 Bond Proceeds UVI Research and Technology Park $7.0 Bond Proceeds

26 Kimmelman Cancer Center $16.0 Bond Proceeds Juan F. Luis Cardiac Center $23.5 Bond Proceeds vingn Broadband $35.1 Bond Proceeds and Federal Funds Anguilla Landfill South Slope $2.0 Bond Proceeds Cost associated with Anuilla Landfill $45.0 Bond Proceeds Ivanna Eudora Kean Track and Field $4.5 Bond Proceeds Charlotte Amalie High School Track and Field $1.5 Bond Proceeds St. Croix Educational Complex Track and Field $1.8 Bond Proceeds St. Croix Central Complex Track and Field $1.7 Bond Proceeds Fort Christian Restoration $2.0 Bond Proceeds Juan F. Luis Hospital $4.0 Bond Proceeds Roy L. Schneider Hospital $4.0 Paul E. Joseph Baseball Stadium $17.5 Bond Proceeds Bond Proceeds vingn Broadband $5.1 Bond Proceeds Melvin Evans Highway Route 66 $15.0 Garvee Bonds Mahogany Road Route 76 $8.0 Garvee Bonds Hams Bluff Road Route 63 $7.0 Garvee Bonds Spring Gut Road Phase I & II $9.0 Garvee Bonds Sion Valley Road $3.0 Garvee Bonds Rattan Road Route 74 $3.0 Garvee Bonds Prince St., Queen F'sted. Multiple Routes $3.0 Garvee Bonds C'sted. Roads Routes 754, 75E & 75W $3.0 Garvee Bonds Veteran Drive Phase I $40.0 Garvee Bonds Source: Department of Public Works and V.I. Public Finance Authority The information regarding amendments to the Disclosure Agreement There are no amendments to the Disclosure Agreements.

27 Virgin Islands Public Finance Authority / Government of the United States Virgin Islands Fiscal Year 2016 Annual Operating Data Report Grant Anticipation Revenue Bonds Virgin Islands Public Finance Authority Grant Anticipation Revenue Bonds (Federal Highway Grant Anticipation Revenue Loan Note), Series 2015, $89,880,000, Dated: December 15, 2015 Series 2015 FAHP Funding History in the Virgin Islands Fiscal Year Annual Allocation Ending Sept. 30 for the Virgin Islands Obligation Authority 2012 $20,000,000 $20,532, $16,000,000 $15,313, $16,000,000 $15,184, $16,000,000 $15,024, $16,800,000 $15,409,228 Source: Department of Public Works Series 2015 Historical Pledged Transportation Trust Fund Revenues Motor Vehicle Registration Gross Receipts Fees and Traffic Law Fiscal Year Highway Users Taxes Driver s License Fees Violation Fines Total 2012 $2,588,511 $5,973,278 $1,119,587 $9,681, $2,283,969 $5,720,205 $945,945 $8,950, $2,827,257 $5,782,896 $572,999 $9,183, $3,039,797 $6,806,096 $616,500 $10,462, $3,322,882 $7,146,327 $635,008 $11,104,217 Source: Department of Finance Series 2015 An update of the authorization of the FAHP, including the length of the authorization, the level of funding for the Territorial Highway Program and the percentage of such funding allocated annually to the Virgin Islands The Highway Bill passed and signed into law on December 4, 2015 by President Barack Obama is the FAST Act (Fixing America's Surface Transportation Act). The length of authorization is 5 years. The level of funding is $42 million for the territories (U.S. Virgin Islands, Guam, Northern Mariana Islands and American Samoa). The percentage allocated annually to the U.S. Virgin Islands is 40% ($16.8 M). Source: Department of Public Works Series 2015 The information regarding amendments to this Disclosure Agreement pursuant to Section 13 of this Disclosure Agreement will be included in the Annual Report There are no amendments to the Disclosure Agreement pursuant to Section 13 of this Disclosure Agreement.