By The Star Staff
The Financial Oversight and Management Board has outlined the agenda for developing the 2024 fiscal plan and fiscal year (FY) 2025 budget for the Puerto Rico Aqueduct and Sewer Authority (PRASA).
The information is contained in a Dec. 22 letter sent by Financial Oversight and Management Board Executive Director Robert Mujica to Gov. Pedro Pierluisi Urrutia, Senate President José Luis Dalmau Santiago and House Speaker Rafael Hernández Montañez.
The oversight board said the 2024 PRASA fiscal plan and FY25 PRASA budget must incorporate updated financial and operational information and enhance the long-term visibility of PRASA’s strategic initiatives. Specifically, the 2024 PRASA fiscal plan must include an extended fiscal plan period of 15 years. Prior fiscal plans were developed under a five-year fiscal plan period. An extended fiscal plan period of 15 years serves as a crucial foundation for decision making, strategic planning, and ensuring both resilient and responsible operations for PRASA in the long term, the board said. Under such an extended timeframe the fiscal plan must incorporate the financial benefits stemming from PRASA’s core initiatives, including the 15-year capital improvements program (CIP). Prior fiscal plans outlined ambitious CIP deployment targets of $6.5 billion over a five-year period using various funding sources. However, the 2024 PRASA fiscal plan must include updated CIP projections over a 15-year period focusing on capital investments to PRASA’s water and wastewater infrastructure using available federal funding sources.
The oversight board said that by April 1, 2024 the governor must submit a proposed 2024 PRASA fiscal plan to the board. By April 26, the board will send to the governor a notice of violation, as needed. On May 13, the governor must make revisions, and on May 31 the oversight board will certify the fiscal plan.
The schedule for the process of developing, submitting, approving and certifying the FY25 PRASA budget will start on May 31, 2024 with the oversight board sending a forecast of revenues to the governor and the island Legislature, and the process will end on June 28, when the board expects to certify the FY25 PRASA budget.