THUNDER BAY – At the City of Thunder Bay Committee of the Whole meeting held on Feb. 29, 2016, recommended changes to the Tbaytel dividend policy were considered by City Council that will see an increase in Tbaytel’s fixed annual dividend amount. The resolution will be ratified on March 7, 2016.
The Tbaytel fixed annual dividend paid to the City of Thunder Bay will be increased over a three-year term to $17.5 million. Since Tbaytel was first incorporated, the company has contributed a portion of its annual earnings to the City of Thunder Bay with a current fixed dividend amount of $17 million per year. Moving forward, the fixed dividend will increase to $17.25 million in 2016, $17.375 million in 2017 and $17.5 million in 2018 and 2019.
“By applying sound business practices, responsible financial management and strategic capital planning, Tbaytel delivers competitively priced enhanced telecommunication services to our customers as well as a substantial financial benefit to our shareholder, the City of Thunder Bay,” says Tbaytel president and CEO Dan Topatigh. “Through the continued loyalty of our customer base, Tbaytel is able to grow and innovate while investing in our community to create a healthier, more vibrant place to live and this is something we are committed to continuing as the company moves forward.”
Tbaytel is well positioned to fulfill the fixed dividend increase while providing the high quality products and services its customers have come to expect. Additionally, Tbaytel will continue to invest in the enhancement of its world class networks and support community organizations, events and initiatives throughout northern Ontario.
“Tbaytel is an invaluable asset for the residents of Thunder Bay,” says Mayor Keith Hobbs. “Through an increased annual dividend, Tbaytel will continue to be a major contributing factor to our community’s vital infrastructure, and will help grow the local and regional economy. We are stronger because of our wholly owned subsidiaries, and I’m thrilled for Tbaytel’s success.”
Since the inception of the Tbaytel Municipal Service Board in 2004, Tbaytel has provided over $225 million in dividends to the City of Thunder Bay, which includes the annual fixed dividend, performance dividends and special dividends. The dividends paid each year result in direct savings for Thunder Bay taxpayers, which are reflected on the municipal portion of their tax bills.