By Ananta Pancham — March 10, 2010

Out of the three financing proposals submitted by the deJongh administration last week, senators moved forward Tuesday with a bill allowing property tax bills to go out at the 1998 levels, but held back on authorizing the government to borrow another $150 million to plug its projected fiscal year 2010 shortfall.
Last week, acting Gov. Gregory R. Francis sent down three proposals that officials have said would help the government overcome a $170 million deficit brought about by a shaky economy and drop in revenues. Along with the property tax bill, Francis submitted a reprogramming that would allow the government to shuffle around some unused funds to pad the budgets of various departments and agencies whose operations are taking a hit, and a proposal that would add another $150 million to the $250 million borrowing authorization senators passed last year in hopes of getting the government some quick cash.
Discussion on the property tax bill was short Tuesday, with many senators simply saying that they had tried to get the government to issue the old bills a couple years ago, but were told by officials that it wasn’t really an option — an argument that government attorneys have held up in court, saying that the governor had recently signed into law a new property tax rate structure that made the old one moot.
The government’s property tax case has been waging on for years with little resolution, save a recent ruling from District Court Judge Curtis Gomez denying the government’s petition to have the bills issued at the new rates and assessment levels until further notice. But he maintained that the 2003 settlement agreement stemming from the lawsuit doesn’t mean the government can’t tax — it just has to stick with the 1998 data, until the injunction is lifted.
Unfortunately, the provision that would allow the government to reconfigure its system and reprogram its data back to the 1998 levels is included in the reprogramming bills that senators didn’t touch Tuesday. Meanwhile, the government’s plan to sell the 2007 property tax receipts, was included in the new borrowing bill, which is also still on the back burner.

 

It appeared Tuesday that many had interpreted the latter proposal to mean that the government was going to be using a third party to collect the outstanding tax payments, which Francis tried to clarify in a press release sent out early in the day.
“The proposed legislation seeks only to use the real property tax receipts as collateral for loans that would allow us to maintain overall government operations,” Francis explained, adding that if the bill were to be approved, payments would still be paid directly to the Lieutenant Governor’s Office.
Francis’ statement didn’t factor into the conversation during the session, with most senators only saying that they were not for privatization or the collection of more than one property tax bill per year.
Meanwhile, amendments tacked onto the bill:
-prevent the government from adding any interest or penalties to the 2006 through 2008 tax bills;
-give property tax exemptions to rental units paid for by federal low-income housing tax credits (the exemption, according to amendment sponsor Sen. Shawn-Michael Malone, was made available to the residents of Patriot Manor, and is now being extended to similar developments for 15 years);
-allow the V.I. Housing Finance Authority to build units up to three stories high;
-mandate the governor to submit certain documentation to the Legislature before and after the government goes out to borrow any more money; and
-require the government to submit a report on federal economic stimulus funds being used in the territory by June 30 and Dec. 30 of each year, and make use of those funds subject to review by the Senate’s Committee of the Whole.
All senators were present during Tuesday’s session.

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St. John Virgin Islands

Proposed property tax rules for the U.S. Virgin Islands would offer discounts and installment plans. 
Lt. Gov. Gregory Francis’ office has released a draft plan of property tax payment rules and regulations. The plan gives discounts of up to 5 percent for early payment and allows V.I. property owners to break up current and past tax bills into monthly, quarterly or twice-yearly payments.

To read the entire article as it appeared in the Virgin Islands Daily News click the link below:

http://www.virginislandsdailynews.com/index.pl/article?id=17644382

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By Ananta Pancham — March 5, 2010

Not collecting property tax bills for the past four years has left more than a $100 million hole in the government’s coffers–one that officials are hoping to fill with a proposal that could bring in some much-needed cash while the matter continues to work itself out in District Court.
This week, acting Gov. Gregory R. Francis submitted a bill to the Legislature asking senators for the authorization to issue fiscal year 2006, 2007, 2008 and 2009 tax bills at the old 1998 levels. District Court Judge Curtis Gomez already said in a recent opinion that the government has always had this option, which government attorneys have argued against since the governor proposed and signed into law a new rate structure in 2008.
Government attorneys have lobbied the judge to modify the freeze on property taxes by allowing the bills to be sent out at the new rates, but Gomez ruled against their request last month, forcing the government to go back to the old system until the injunction is lifted.
To begin the process, a second financing bill submitted by the government this week amends the miscellaneous section of the fiscal year 2010 budget to allow the Lieutenant Governor’s Office to reconfigure its computer system and “reprogram data back to the 1998 levels.”
Most commonly referred to as a reprogramming, the bill seeks to shuffle around money in the 2010 budget for a number of what has been described as “critical” expenses, including operations at the Justice and Tourism departments, the V.I. Housing Finance Authority and Gov. Juan F. Luis Hospital on St. Croix, which has an outstanding electricity bill of $2 million.
A third financing proposal submitted this week also contains a section authorizing the governor to sell — either publicly or privately — the government’s 2007 property tax receipts, which will be secured with any rum revenues left over after debt service payments on bonds, along with Diageo and Cruzan Rum obligations, are taken care of.
“The administration has struggled long and hard to avoid issuing real property tax bills that could result in a higher tax obligation than necessary for the people of the Virgin Islands,” Francis said in a letter sent, along with the three finance proposals, this week to Senate President Louis P. Hill. We have also sought to avoid the additional cost that the government will incur by repeatedly changing the real property tax billing system. However, the government is left with few good choices, and so we must proceed with any and all feasible measures to close the projected operating deficit.”
In the third bill, the government is also asking for the authority to go back to the bank and borrow another $150 million needed to cover the funding gap that, according to members of the governor’s financial team, add up to about $170 million for FY 2010.
The extra money is added into the $250 million authorization signed into law last June, which mandated the government to first tap into its public fund accounts before turning to the bank for money. That requirement has been modified in the government’s new proposal, which says the governor “may” look to borrow public funds, but can turn to the bank or other financial institutions if there’s not enough money in the accounts.
The bill also gives the government the flexibility to pay off some of its other outstanding debts — such as the $45 million owed to the Insurance Guaranty Fund, which was tapped to pay down the approximately $300 in retroactive wages owed to government employees.
It’s unclear at this point whether the bills will be special-ordered to the floor during the session, but Francis’ office sent out a release Thursday announcing that “newly proposed regulations” set up for the payment of property taxes — including installment plans and early payment incentives — will be available for public review and comment for the next 20 days.
Under the new regulations, residents can apply to pay their bills on a monthly, quarterly or semi-annual basis, and can be eligible for a 5 percent discount on their bill if they pay in full before the due date.
“We realize that property taxes could pose a significant burden to some of our property owners, but we are committed to exploring every option that reduces that burden,” Francis said in the release.
Residents can log onto www.ltg.gov.vi to look over the rules or visit the Lieutenant Governor’s Office at Government House on St. Croix or Kongens Gade on St. Thomas.
A copy of the proposed rules will also be available at local libraries, and residents are asked to email their comments to comments@lgo-vi.gov

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By Lynda Lohr — February 27, 2010

Among nearly 900 runners, a stateside trio took the top three spots for the men at Saturday’s 8 Tuff Miles race on St. John, with the first two breaking the course record.

Tom Chorny, 33 and a personal trainer and professional runner from Bloomington, Ind., was first across the finish for the men. His time was 46 minutes and 26 seconds, bettering the 49 minutes, 20 seconds set by former St. John resident Jeremy Zuber in 2006.

“The course is brutal,” Chorny said. “The fourth hill at mile five was the worst.”

For the women, a St. Thomian finished first with a time of 58 minutes, three seconds. “It was great,” said Ruth Ann David, 36.

David, a trainer, immediately put her finishers medal around the neck of her daughter, Shaiah David, 5, after Shaiah ran up to greet her just after she finished.

A total of 898 people crossed the finish line on the 8.375-mile course from Cruz Bay to Coral Bay. A thousand people signed up to participate but organizing committee member Jeff Miller said the snowstorm that hit the U.S. Northeast Friday prevented many people from getting to St. John in time, while illness befell others.

The participants came from the Virgin Islands, Puerto Rico and 43 states.

Conditions were cool and cloudy, perfect for running the course, several runners said.

Former St. John resident Emily Engelhoff-Whalen, 18, finished second for the women. Her time was one hour, three minutes and 21 seconds.

“I’m proud of myself and tired. It was really painful. It was the hills,” said Whalen, resting on top of a case of water bottles after her finish. She now lives in Raleigh, N.C.

Delene Jewett, 31, of Seattle was third for the women with a time of one hour, three minutes and 41 seconds.

Like the winner, the second place finisher in the men’s division, 28-year-old Chris Ries of Cincinnati, also declared the course “brutal.” Ries, who manages a running store, knew it was hilly so he said he practiced on treadmill to get familiar with the courses ups and downs. His time was 46 minutes and 56 seconds.

Brian Shoneberger, a full-time runner from Black Mountain, N.C., said he knew what to expect. “You’ve got to find your grinding gears on the hills and on the downhill, let it rip,” he said.

He clocked in at 51 minutes and 30 seconds.

Ries was part of a contingent of 11 runners from Cincinnati that flew down for the race. Organizer Brad Dunlevy, a frequent St. John visitor, said this is the fourth year a group representing the Cincinnati store Bob Roncker’s Running Spot participated.

While the top finishers get the most press, the race also brings out hundreds of others who spend hours making their way along the course. On the last downhill toward the finish, one man was spotted pushing a baby carriage and a woman was seen twirling a hula hoop.

Two five-year-olds, Isabella Gatcliffe of St. Thomas and Phoenix Rose of St. John, were the youngest participants. Velma Pullen, a sprightly 81, was the oldest.

St. John resident Evan Jones, 10, was the first youth across the finish with a time of one hour, six minutes and 12 seconds.

“It was good. I pushed myself. Every time I took a breath, I’d say keep going,” the Gifft Hill School student said.

This was the second time Jean Hale, 61, of Palm Harbor, Fla. visited in time for the race. Last year, she and her husband, Sam Hale, were vacationing on St. John when they saw signs advertising the event.

“Last year, I just decided to do it,” she said. This year they timed their annual visit to St. John to coincide with the race.

Hundreds of people came out to support family and friends who ran in the race.

“We can’t believe they’re actually going to finish,” Tina Newport of Smyrna, Del. said, waiting at the finish with a group of friends.

The 8 Tuff Miles race brings out many, many St. John residents who volunteer to make the race happen. They operate water stations along the race course, work the start and finish line and hand out water and fruit to the racers.

“I thought about what I wanted to do. Do I want to cut up grapefruit or do I want to run?” St. John winter resident Frank Doherty said.

The grapefruit won, and Doherty was out the door at 6:15 a.m. to take his turn with the slicing knife.

St. John resident Moe Chabuz ran for a cause. He said he and Hank Slodden started at the back of the pack. As they passed other runners they asked for pledges to help bring wounded veterans working with the Team River Runner program back to St. John.

Team River Runner visited several years ago, but the program lacked the funding to bring them back again. At the finish, Chabuz said he had pledges totaling $900.

For full results, visit www.8tuffmiles.com.

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A Great, Big Island Welcome to everyone on island for the 8tuff mile race! I hope everyone has a good time and good luck on your finish time!

GO VELMA GO!!!

From beautiful St. John, USVI, Have a Sunny Weekend! Lynn

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Hawksnest Bay on St. John in the U.S. Virgin Islands

The U.S. Virgin Islands and U.S. departments of Energy and Interior have entered into an agreement to move the territory away from its dependence on fossil fuels.  In April, the U.S. Virgin Islands was chosen as one of three pilot projects for Energy Development in Island Nations - an international partnership with the goal of bringing renewable energy to islands around the world.

Click here for the rest of the story.

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They are not your typical island dogs but they are MY island dogs and they love it here! I tried to explain to them about snow and they think it’s something you eat, similar to steak………you gotta love them!  And I do and it’s nice to meet so many people vacationing here who give my dogs attention so they can get their dog “fix” because they miss their pets back at home.  Animal lovers are great people!! Please help our animal shelter here on St. John & send a donation if you can.

Animal Care Center of St. John, P.O. Box 429, St. John, VI 00831

We all thank you, even those of us who think that snow is like steak!!! From beautiful St. John, USVI, have a sunny day!

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Calabash Boom parcel 29 F-D has  been reduced again from $199,000 to $179,000.  This is a great lot with an easy build and terrific views over Johnson’s Bay & East End to Virgin Gorda.  This is a perfect lot for a buyer looking for a real bargain.

For more information contact Merry  merryvi@aol.com  340 776-6666

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