THUNDER BAY – Business Now – Tbaytel today announced the declaration of $3.28 million in dividends to The City of Thunder Bay payable April 30, 2012. 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 since 2004 will total $174 million by the end of 2012.
“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 are able to provide dividends of this magnitude; thereby 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 $780,000 is the result of the performance of Tbaytel in 2011. 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 ratepayers on the municipal portion of the tax bill. This dividend is paid 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 dividends, direct investments in telecommunication infrastructure and support for events and projects. The majority of all operating costs and capital re-investment by Tbaytel stays in Northern Ontario.”
Tbaytel has seen a year of major upgrades to its wireless network after taking on the former Rogers wireless network. That move took over the 3G network which is now classed as a 4G network.
Tbaytel has been working to improve the wireless network which is taking a great deal of time and effort.