The Bonita Springs Utilities Inc. Board of Directors has authorized the utility’s second retirement of capital credits. Capital credits for members from the years 2006 and 2013 totaling $3,251,037 are being paid out.
“Capital credit retirements remain an important initiative for the board,” said BSU Board President Bob Bachman. “We hope to continue authorizing retirements as the utility’s financial condition allows, with the goal of becoming and remaining current with payments to our members.”
Current BSU members eligible for a capital credit will see it on their next utility bill. Former eligible 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.
“With the procedures put into place last year, we’ve been able to efficiently execute the latest capital credit retirement,” said John R. Jenkins, BSU executive director. “Our staff has done a great job once again in implementing this important program for our members.”
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.
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.
Last year marked BSU’s first retirement of capital credits in the amount of $2.97 million for members during 1988, 1989, 1992, 1997 and 2005.
“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.