File #: ID#17-3598    Version: 1 Name: Dividend to the City General Fund FY 16/17.
Type: Report Status: Filed
File created: 5/30/2017 In control: Gas System
On agenda: 6/12/2017 Final action: 6/12/2017
Title: Report on the Clearwater Gas System (CGS) Fiscal Year 16/17 Dividend to the City General Fund. (WSO)
Attachments: 1. 06-12-2017 CGS Warrington Annual Dividend Presentation.pdf

SUBJECT/RECOMMENDATION:

Title

Report on the Clearwater Gas System (CGS) Fiscal Year 16/17 Dividend to the City General Fund. (WSO)

 

Body

SUMMARY: 

By City Council policy, CGS pays an Annual Dividend equal to 50% of the prior year’s net income (less bond interest earnings), but no less than $1,700,000 to the City’s General Fund.  After the city books close for the year, the Gas System calculates the Annual Adjusted Dividend payment to return ½ of its annual Net Income less debt service interest as a Dividend to the City in the following year.  CGS’ financial performance for Fiscal Year 15/16 exceeded our plan; therefore, CGS will actually pay a Fiscal Year 16/17 Dividend of $3,570,795, an increase of $1,170,795 above the $2,400,000 budgeted for Fiscal Year 16/17.   This is $1,870,795 above the minimum annual dividend payment to the City.

 

APPROPRIATION CODE AND AMOUNT: N/A

 

 

USE OF RESERVE FUNDS:  N/A