BSU announces $2.97 million capital credit retirement

April 3, 2018
The Bonita Springs Utilities Inc. Board of Directors has authorized the first retirement of capital credits in the utility’s history. Capital credits for members during 1988, 1989, 1992, 1997 and 2005 totaling $2,968,194 will be paid out.

“We are pleased to announce the first retirement of capital credits to BSU members,” said BSU Board President Jim Strecansky. “This is one of the benefits of being a cooperative member. The utility is in a strong financial condition, and the board determined it was an appropriate time to initiate the utility’s first capital credit retirement.”

Capital credits are allocated to members each year based on revenue that remains after payment of all expenses, debt service and an amount set aside for reasonable reserves. As a member-owned, not-for-profit cooperative, BSU members are eligible to earn capital credits for each year of utility service when there is a positive net margin. A member’s capital credit is calculated based on their service payments for the year in proportion to all member service payments for the year.

“As a nonprofit cooperative, we operate in the interest of our members,” said John R. Jenkins, BSU executive director. “BSU staff worked diligently to develop the necessary financial, software and customer service procedures to process the capital credit retirements for eligible BSU members.”

The board of directors determines when to retire capital credits on a year-to-year basis based on the financial condition and needs of the utility. Capital credits are retired in chronological order, starting with the earliest years, according to company bylaws. In some years, there are no capital credits to allocate to members. In those years, annual revenue has been fully committed to utility operations.

The capital credit retirement will roll out within the next 60 days. Current BSU members will receive a credit on their utility bill. Former members within the past five years will be mailed a check and former members from more than five years ago will be mailed a letter with instructions to process their capital credit payment.

“Members who are unsure of their eligibility to receive a capital credit payment can visit the website to request a statement,” said Jenkins. “In addition, former members can go to the website to update their contact information and check a listing of members we cannot locate.”

For more information about capital credits, visit www.BSU.us/capitalcredits.

About Bonita Springs Utilities Inc.

Bonita Springs Utilities Inc. is a not-for-profit water and wastewater utility cooperative founded by local citizens in 1970. The member-owned utility provides service in the City of Bonita Springs, the Village of Estero and unincorporated South Lee County. The utility is recognized as an industry leader with awards from the American Water Works Association, Florida Department of Environmental Protection and Florida Water and Pollution Control Operators Association. For more information, visit the BSU website at www.BSU.us.

Contact:

Jennifer Hamilton, Gravina, Smith Matte & Arnold
[email protected], 239-275-5758

Web site:

www.BSU.us

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