A dividend, as defined by the Business Dictionary, is “A share of the after-tax profit of a company, distributed to its shareholders…” This is reiterated in the description from the Oxford Dictionary: “A sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves).”
So in order to pay a dividend, you need to make a profit. Otherwise all your revenue goes to operating expenses, salaries and taxes. And a dividend isn’t paid to just one person or shareholder: if one shareholder gets one, then every shareholder gets one. Dividends are NOT automatic, are NOT paycheques.
Now say you were a shareholder, and you stripped the revenue stream away from a company you own shares in, and in doing so, you reduced its profit to zero, and say you also caused it greater expenses – say by forcing it to pay more for legal advice or transportation and accommodations for out-of-town shareholders – would you still expect a dividend?
Common sense tells us no. No profit: no dividend.* But common sense is an uncommon attribute at our council table.
On March 13’s agenda, there was a letter from Collus-PowerStream saying the board had decided not to pay a dividend for 2015, and would decide about 2016 after it examined the company’s audited financial statements. (on the Rogers TV broadcast, it starts at 0:18:13, just after the lengthy, self-serving “community” announcements… go past Councillor “Sleepy” Ecclestone’s painful “moved by myself” grammatical error to 0:22:22).
This, course, sent The Block into a tizzy. At 0:22:37 Sleepy again does another “moved by myself” gaffe to introduce a motion to request “an explanation of why the board has chose (sic) not to declare a dividend…” and to “express our concern and disappointment.”
Continue reading “Dividends for dummies”
On Tuesday, Simcoe County Council voted to “… begin negotiations with the 16 municipalities regarding a “future role” for the upper tier in water and wastewater operations – a municipal domain.” The county wants to bring water and wastewater under its wing to standardize services and improve operating efficiencies much the same way it has done with housing and emergency services. Our deputy mayor voted in favour.
The only story so far on this appears in the New Tecumseth Free Press.*
Not a bad idea to explore, for public discussion and input, weigh the pros and cons. But the problem is that the issue of giving up control of the municipal service to an upper tier has not been given any attention in the local media. Nor have our county representatives – the mayor and deputy mayor – brought it to public attention, nor have they asked for public input or consultation on the issue.
And who gives the county report at the council table? That’s right: Deputy Mayor Saunderson.
Well, that doesn’t surprise you, of course. The Most Secretive Council Ever is always reluctant to tell the public anything. And public input? So far there has been absolutely NONE allowed this term on major issues such as selling our airport, privatizing our water and wastewater, selling our share of the electrical utility, Block 9, taking over water and IT services, the hospital redevelopment – so why would The Block want it now? Your opinion has never mattered to them.
But while the town is getting under the covers with the for-profit corporation EPCOR in a snug deal to privatize our water and wastewater services (in a 99-year lease?), our deputy mayor seems to have made an about-face. He voted in favour of the motion for the county to start the process to take over those services.
Without public input, of course. The best interests of this community? Not even a hint that that might be under consideration.
Continue reading “Volte-face on water”