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CPA adopts supplemental budget
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Posted on Jul 15 2005
The Commonwealth Ports Authority adopted yesterday a supplemental budget of almost $140,000 for contracts and for repair and maintenance expenses at the local airports.
The additional expenses sanctioned yesterday includes $24,995 for the Pacific Oriental Inc.’s contract to handle public parking at the Saipan airport and seaport; $63,700 for Ricondo & Associates for consultancy services on the passenger facility charge; and $50,000 for operation repairs and maintenance.
The new batch of additional costs brings the CPA airport division’s operation and maintenance budget to a total of $11.45 million for fiscal year 2005.
Including debt servicing costs and mandatory payments to the Office of the Public Auditor, the CNMI airports’ total revenue requirement now stands at $13.32 million.
CPA comptroller George Palican stressed, however, that the airport division remains within its required debt coverage ratio of 1.25 even with the approval of the supplemental budget requests.
CPA’s bondholders require the authority to generate net revenue that is at least 25 percent greater than its bond payment.
For the period beginning October 2004 to the current date, CPA’s bond payment costs about $1.5 million. With total revenues of $1.9 million, CPA’s debt coverage ratio remains at 1.26.
CPA originally approved a budget of $10.71 million for the airport division.
However, various supplemental budget requests have been approved, including one amounting $229,000 to cover the increase in employer contribution rate implemented by the NMI Retirement Fund last month.
