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CPA: No rate increases, no work reduction in FY’12
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Posted on Sep 26 2011
This early, Commonwealth Ports Authority assured its stakeholders that no rate hike in airport and seaport fees will be implemented in fiscal year 2012 which will start next week.
Ports authority executive director Edward Deleon Guerrero said the agency is projecting improved revenue and collection throughout the 12-month period.
Saipan Tribune learned that CPA last increased seaport rates and charges in February 2009, while airport fees were adjusted in 2008.
Early this year, a legislation proposing CPA to impose and collect a $6.50 charge on each airline passenger, a $5 document charge for those with cargo, and $25 on consignees for “consolidated consignments” of cargo was strongly opposed by the agency, citing the ripple effect it could bring to both the travelers and stakeholders.
Additionally, Deleon Guerrero revealed that CPA will also maintain the 80-hour work schedule of all its personnel in three islands as a result of the projected savings from other austerity measures enforced internally. These include hiring freeze on new positions, ban on off-island travels, energy conservation, and not filling 30 FTE positions.
CPA has an approved 228 FTEs of which only 198 were filled for more than two years now. These vacant positions will not be provided a replacement, unless management classified the post as critical to its operation.
“We will be OK in terms of revenue [for new fiscal year] and because we have been watching very closely both our operating expenses and revenues, we’re confident that CPA will be alright in 2012,” Deleon Guerrero told Saipan Tribune during a break in Friday’s special board meeting.
CPA is an autonomous agency that operates using its revenues while majority of its programs receive funding assistance from the Federal Aviation Administration.
The executive director also expressed confidence that CPA, from now on, will be in compliance with its bond indenture agreements for both airport and seaport following the decision of FAA classifying the passenger facility charges as part of the agency’s revenues.
