The Bonita Springs Utilities Inc. Board of Directors has authorized the utility’s third retirement of capital credits. Capital credits from 2014 for 29,415 members are being paid out in the amount of approximately $2,552,000.
“It’s been this board’s commitment to continue authorizing retirements on an annual basis, as the utility’s financial condition permits,” said BSU Board President Brian Farrar. “While this retirement was authorized prior to the coronavirus pandemic, it’s good to be able to provide some small financial benefit to our members.”
Current BSU members eligible for a capital credit will see it on their next utility bill. Former eligible members will be mailed a check.
“Although we’re in a time of uncertainty, we are focused on maintaining business as usual for our members – and that includes this capital credit retirement,” said John R. Jenkins, BSU executive director.
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. Capital credits are allocated to members each year based on revenue that remains after expenses, debt service, system renewal and replacement and other capital improvement funding, as well as accounting for depreciation and reserves. 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.
Capital credits are retired in chronological order once authorized by the board of directors, 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 was fully committed to utility operations.
In the past two years, BSU has retired capital credits totaling approximately $6,236,000.
Members can check their eligibility to receive a capital credit payment on the website by requesting a statement. Former members can also update their contact information and check a listing of members BSU cannot locate. Visit www.bsu.us/capitalcredits for more information.
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 Environment Association.
For more information, visit the BSU website at www.BSU.us.