The Port Authority of Guam Board of Directors unanimously approved the agency’s budget for Fiscal Year 2025 during August monthly board meeting.

The new budget projects total revenues of $54.2 million which is $1.7 million higher than the previous year’s projected revenues of $52.5 million and FY 2025’s total expenses of $53 million.

The Port Authority utilized a formula considering Guam’s economic growth to project an added 3% increase in cargo-related proceeds to arrive at a realistic revenue projection for the agency.

Their total expenses were based on the needs of each division and annual obligations to include yearly debt service of $5.7 million, maintaining a Debt- Service Coverage Ratio of 1.5, days cash on hand, 500, and funding for capital improvement projects from bond, federal and local funding sources.

“Our ‘bottom-up zero-based budgeting’ approach focuses on financial accountability and sensible spending strategies while identifying cost-saving alternatives, and I am very pleased that this approach has proven successful for our previous fiscal years,” said Port General Manager Rory Respicio.

“I thank our Board of Directors for their support and for recognizing that this FY 2025 Budget demonstrates our best estimation of the upcoming fiscal year's resources, operational, and capital requirements. These numbers provide realistic valuations for the Port’s financial position for FY 2025,” Respicio added.

With the projected numbers on revenue and expense, the funds available for debt service will result in a debt ratio of 1.8.

“We have been spot-on achieving our revenue projections while spending significantly less than what we have been authorized to spend, and our decisions are prudent and transparent,” he said.

A copy of the approved FY 2025 budget will be uploaded on the Port’s website at www.portofguam.com.