What are capital credits?
Capital Credit Q&A
Bonita Springs Utilities, Inc. (BSU) is a member owned not-for-profit water and wastewater utility serving the Bonita Springs/Estero communities since 1971.
A. If you receive BSU water and/or sewer service and responsible for the bill, you are a member/customer of BSU. Each meter represents a membership.
Q. Why do I receive the Annual Capital Credit Account Report?
A. The IRS requires BSU to notify Member/Customer’s each year of the prior year’s capital credit earnings. Notification occurs each spring or early summer.
Q. What are capital credits?
A. Capital credits represent each Member/Customer’s ownership of the utility’s assets including buildings, equipment, water and sewer lines.
Q. Can I use my capital credits to pay my water or sewer bill?
A. No. Capital credits are not cash.
Q. Will I ever receive any money for my capital credits?
A. You would receive money only if BSU were to permanently stop operating and liquidated (sold) its assets. Any money left over after paying all indebtedness would be distributed proportionately to members based upon their capital credits.
Q. What happens to my capital credits if I move from the BSU service area and no longer a member/customer of BSU?
A. If you are no longer a member/customer of BSU, your capital credits will remain the same. You will no longer receive the Annual Capital Credit Account Report.
Q. If I’m no longer a member and moved from the area, how will BSU contact me if there’s a distribution of assets?
A. You must keep BSU informed of your current mailing address in the event there is a distribution of assets in the future.
Q. If I sell my property/home, can I assign my capital credits to the new owner?
A. Yes, you may assign your capital credits to your successors in interest or successors in occupancy. Assignment forms are available online at www.bsu.us under Customer Service; scroll down to Customer Service Documents.
Q. What happens to my capital credits if I die?
A. If you are deceased, the capital credits will then belong to your estate. Legal proof of representation for the estate will be required and the estate must keep BSU informed of current mailing address.
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