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