Tuesday, December 29, 2020

No photos, but some significant cash ... as CityWest delivers distribution payment to City of Prince Rupert

It's become somewhat of an annual tradition, one that usually comes in early December and features CityWest and Civic Officials celebrating with a giant novelty cheque. 

This year's announcement arrives in the waning days of 2020 without the photo op, but with CityWest sharing word of the delivery of its annual distribution payment to the City of Prince Rupert.

In an information release from today, the City owned communication company confirmed that it would be transferring $700,000 to the city's financial accounts from its business operations for 2020.

This years amount makes for $100,000 more than what was delivered in 2019.

CityWest CEO
Stefan Woloszyn
 “Our team has worked hard in these extraordinary times to bring an excellent experience to our  customers. It is because of their efforts that CityWest continues to do well financially, which has enabled us to provide this distribution payment to our shareholder. 

Like many companies over the past year, CityWest has altered its operations to ensure the safety of its staff and customers during the COVID-19 pandemic. This has put a lot of stress on everyone, and I’m personally proud about how well our staff and our customers have adapted to these quickly-changing circumstances,” -- Stefan Woloszyn, CEO of CityWest.

City Manager Robert Long also had a few thoughts today on the success of the company and its transfer of funds back to the community through the City.

“We are grateful for CityWest staff and leadership for navigating the challenges that have been thrown at all of us in 2020. They continue to gather strength as a regional communications company, servicing communities as far as the Bulkley Valley and employing over 80 people throughout our region. As a homegrown Prince Rupert company, we think that’s something we can all be proud of.” 

In Budget preparation work March of this year, CityWest had advised the City of Prince Rupert that it anticipated delivering a return of $700,000 dollars to the City for 2020.

Since it spun out into a corporation in 2005, CityWest has provided the City of Prince Rupert with $8.8 million in dividends and distribution payments, as well as over $2.1 million in local taxes and levies.

The annual distribution payment for the City has varied in recent years, with the last half-decade providing for the following returns:

December 2019 -- $600,000
December 2018 -- $400,000
December 2017 -- $400,000
December 2016 -- $400,000
December 2015 --- $400,000

With the exception of the last two years of increases, the more recent totals have made for a somewhat reduced revenue stream to the city from when the office was a civic operated department, when returns of 1 or 2 million dollars per year were a normal part of the reporting process.

2020 was an active year for the communication company which expanded its footprint in the Bulkley Valley, as well as to move deeper into the Nechako region with its purchase earlier this month of Evolve communication.

Looking forward to 2021, CityWest plans to continue its expansion into the Vanderhoof and Kitwanga markets. As well, the company states that it will be developing some great new products to help customers manage their home Internet networks with ease. 

More on today's announcement can be reviewed here.

For more notes related to the City owned communication firm see our archive page here.

A wider overview of City Council discussion themes can be explored here.

1 comment:

  1. That's a 1.78% return on the City's $39,072,763 investment. If Citywest was privatized the proceeds could lever a huge inflow of federal and provincial matching grants, particularly for infrastructure. It would be transformative. But then again, owning Citywest has never seemed to be just about the money.