Board authorizes $10 million capital credits refund

At the December board meeting in Westminster, Tri-State directors authorized a total of $10 million in capital credits to be refunded to the membership this month and during  January 2013.

MoneyCube“It is up to each eligible member to decide whether they wish to receive their refund this month or after the first of the year,” explained Pat Bridges, senior vice president/chief financial officer, during a presentation that he gave to the board.

“Currently, the association is in a 15-year rotation of equity capital retirements, so this money was earned in 1997,” said the CFO.

This time last year, the board authorized a $20 million capital credits retirement. This year marks the 24th consecutive year that the board has approved a capital credits disbursement to the membership.

As a cooperative owned by its member systems, Tri-State routinely pays capital credit refunds to the membership at the end of the year as long as it continues to meet certain equity capital ratios and other financial goals are achieved under Board Policy 503.

Likewise, Tri-State’s member co-ops are structured in the same way and as long as certain financial goals are met, they too, refund capital credits to their member-consumers.

The portion of the $10 million that each Tri-State member co-op receives is based on the members’ respective shares of what they paid to the association during the specific year of the equity capital rotation.

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