THUNDER BAY – Tbaytel has announced the declaration of a $3.5 million dividend to The City of Thunder Bay payable April 30, 2011. This dividend is comprised of a performance dividend and a special dividend and is in addition to the fixed annual dividend of $17 million.
Tbaytel dividends paid to The City of Thunder Bay from 2004 through 2011 will total over $153 million.
“The dividend reflects the growth, financial health and stability of Tbaytel.” said Michael Power, Chair of the Tbaytel Municipal Service Board. “Through the leadership of the board and executive management team and the outstanding efforts of Tbaytel’s entire management team and staff, we have the ability to provide a dividend of this magnitude investing in our collective future and significantly enhancing services and value to our stakeholders; our customers, our community and our region.”
The “special dividend” disbursement of $2.5 million will be directed by City Council to the Renew Thunder Bay Reserve Fund to leverage investments to fund major Thunder Bay capital projects. In November 2009, City Council approved the Renew Thunder Bay five-year Strategic Investment Plan.
The “performance dividend” of over $1.0 million is the result of the performance of Tbaytel in 2010. It will assist the City with financial flexibility and stability in future years.
The “fixed dividend”, currently $17 million annually, provides a 12.5% savings to rate payers on the municipal portion of the tax bill. This dividend is payable quarterly throughout the year.
“Tbaytel is a well managed, financially sound and growing company comparable to any in the industry.” said Don Campbell, President and CEO of Tbaytel. “It is truly rewarding for all of us at Tbaytel to know that through the efforts of Northerners, Tbaytel can make significant contributions to the community and region through announcements such as this, direct investments in telecommunication infrastructure and support for events and projects. The vast majority of all operating costs and capital re-investment by Tbaytel stays in Northern Ontario.”