Calling for more cash

The city will ask for more money from TbayTel’s pot at the next council meeting.

The City of Thunder Bay will propose a 15 per cent increase to the performance dividend it receives each year from TBayTel at the Monday meeting.

"Currently we receive 10 per cent of the net income over the approved plan and for the years 2005 to 2008, that’s amounted to about $4.33 million," said Carol Busch, general manager of finance and city treasurer. "What is being proposed is that the percentage be increased to 25 per cent from 10 per cent."

Busch said she couldn’t speculate as to how much more money that could mean for the city because it depends on the excess of net income in terms of the company’s performance. This dividend is on top of the fixed annual one the city receives, which amounts to about $17 million.

Also being proposed Monday is a special dividend under the jurisdiction of the TBayTel board.

"At their annual general meeting or a special meeting, they will review the retained earnings of the company and make the decision if and when a special dividend may be declared," said Busch, adding the city’s role in that dividend would be how it would be spent.

"What’s being recommended in the report being presented to council Monday evening is any special dividend we receive be included and transferred to the Renew Thunder Bay Reserve Fund, which will help us leverage additional investment we would spend on infrastructure," she said.

Busch said administration worked closely with the TBayTel board to develop these policies and these recommendations are being brought to council in consultation with and supported by TBayTel.

Since 2004, TBayTel has provided in excess of $105 million through dividends to the city.

Officials with TbayTel could not provide comment on the proposal.