City Admin wants council to approve increasing the debt load by $18 million. Yes $18 million!
There is the $8 million for the expansion of the Golf Links Road mentioned in a previous post.
Then there is Tbaytel needing $10 million for capital infrastructure upgrades. TBAYTEL? WTF?
If I am not mistaken, Tbaytel gives the City of Thunder Bay an annual $17 million dividend payment. The payment is sometimes much more than $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. “ – NetNewsledger may 3, 2012
My understanding is that the $35?million that is supposedly sitting in an account waiting to be used as the City of Thunder Bay’s share of the $106 million Event Centre is money that came from Tbaytel.
Now Tbaytel, after giving the City of Thunder Bay more than $174 million over the passed 9 years, wants the City of Thunder Bay to borrow $10 million on its behalf so the company can upgrade its capital infrastructure? Tbaytel needs money? Needs lots of money? Why not just raise the rates of the services it sells?
Is the City of Thunder Bay using Tbaytel to launder money? The money is borrowed by the taxpayer, given to Tbaytel which turns around and gives the borrowed money back to the City of Thunder Bay as a dividend. The City of Thunder Bay then spends that dividend money on the Event Centre.
I wonder if this has happened before? I am pretty sure that the City of Thunder Bay has previously borrowed money for Tbaytel. Is that money then given back to the city in the form of a dividend?
Why does Tbaytel need that kind of money? They operate a company that sells mobile phone, phone, internet, television and security plus who knows what? They should be rolling in cash…unless that dividend paid annually to the City of Thunder Bay is hurting the company much more than anyone knows.
Is the City of Thunder Bay’s unquenchable thirst for cash killing its cash cow? Killing Tbaytel?
Once the City of Thunder Bay has bled Tbaytel dry, then its on to Thunder Bay Hydro.