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HOME >
PATRONAGE CAPITAL CREDITS |
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Cordova Telephone Cooperative - Working for
You |
Your Board of
Directors knows this issue is important to
you as member-owners of Cordova Telephone
Cooperative. That’s why we compiled answers
to the questions some of you have been
asking. If we haven’t answered your
questions here, please contact one of your
board members.
Board members names are listed below.
What are patronage capital credits?
Because CTC is a cooperative, owned by its
members, it doesn’t technically earn
profits. Instead, if revenues exceed the
cost of doing business (expenses), the Co-op
earns margins (profits). Each year, margins
earned are assigned to members in proportion
to the amount each paid for
telecommunication services that year. These
assigned margins are called patronage
capital credits.
Who receives patronage capital credits?
All members who have service with CTC during
a year the Co-op earns margins are assigned
patronage capital credits.
What does CTC do with patronage capital
credits?
CTC retains patronage capital credits for a
period of time to help fund capital projects
like new services for subscribers, service
to new areas and plant upgrades. This keeps
costs down by allowing us to minimize our
borrowing and decreases our debt load. This
is exactly what patronage capital credits
are intended to do – help keep your Co-op
financially healthy.
When are patronage capital credits
refunded?
These funds are distributed when management
and the CTC board of directors believes it
is a prudent thing to do based on the
Cooperative's financial well being and need
for capital to reinvest in infrastructure.
In 2008 patronage capital credits in the
amount of $267,472.72 were distributed for
the year 1986, bringing the total to
$2,090,988.87 of credits distributed to our
member-owners since the Cooperative’s
incorporation in 1978.
Capital credits are refunded early in
situations of deceased members. An
additional $30,240.84 has been distributed
to the estates of deceased patrons.
Unclaimed capital credits are used to fund
scholarships for graduating Seniors at CHS
and to date over $50,000 has been awarded to
these outstanding students!
How will patronage capital credits be
refunded in the future?
Distributions are decided by the Board of
Directors. Their decision may be based on
the communications they receive from
members, the company’s need for capital on a
forward looking basis and the overall
financial health of the Cooperative.
Though philosophies may vary from board to
board, the CTC Board of Directors
anticipates issuing checks whenever the
Cordova Telephone Cooperative’s financial
viability warrants. One of our cooperative
goals is to make patronage capital payments
periodically.
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Cordova Telephone Cooperative Board of
Directors |
The Cordova
Telephone Cooperative Board of Directors
holds its regular monthly meetings the
fourth Wednesday of every month at 6:30 PM
in the conference room located in the main
building on 611 Second Street. Special
meetings are held when needed.
Elections are held for Board members at the
Cooperative’s annual meetings in March. All
ballots are mailed to the membership with
member’s choice to vote by mail or at the
annual meeting. Directors are elected to
serve for a three year term, or until their
successors have been elected and qualified.
Directors elected to fill vacancies serve
only for the unexpired portion of the term
vacated. This term shall then be filled at
the next annual meeting’s election.
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2009 Board of
Directors |
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David
Allison, President |
Ken
Roemhildt, Vice President |
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Laurie
Phillips, Treasurer |
Tom
Bailer, Secretary |
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Robert
Beedle, Director |
Will
Osborn, Director |
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Ann
Schultz, Director |
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