SUBJECT/RECOMMENDATION:
Title
Clearwater Gas System (CGS) Fiscal Year 17/18 Dividend to the City General Fund Report (WSO)
Body
SUMMARY:
By City Council policy, CGS commits to pay an Annual Dividend of at minimum $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 16/17 exceeded our plan; therefore, CGS will actually pay a Fiscal Year 17/18 Dividend of $2,698,521, an increase of $998,521 above the minimum annual dividend payment to the City, which is an increase of $298,521 above the original Fiscal Year 17/18 budget of $2,400,000.
APPROPRIATION CODE AND AMOUNT: N/A
USE OF RESERVE FUNDS: N/A