Title
Resolution - Approval and Amendment to 2019 Special Capital Credits Retirements (Distribution and Payment) - R Kruger
Other Info
Submitted By: Robyn Miller on behalf of Randy Kruger
Department: Financial Services
Financial Impact and Cost/Benefit Considerations: Expenditure of Cooperative funds estimated in the approximate amount of $300,000. Expenditures of staff time limited to ordinary processing requirements.
Discussion
The Cooperative's Capital Credits Policy outlines the process for both General Capital Credits Retirements and Special Capital Credits Retirements including the payment of capital credits to members, former members and deceased members' estates, and also, permits the discounting of capital credits.
Pursuant to its Policy, the Cooperative will retire capital credits in a manner that permits the Cooperative to comply with all applicable laws, all restrictions imposed by its debt financing covenants, the Cooperative Articles of Incorporation and Bylaws, is fair to the Cooperative's members and former members, and is reasonable to maintain a healthy financial state.
The Policy also requires the Cooperative to implement its retirement strategy with certain principles considering retirements to deceased estates, special retirements, and distributions and payments to the oldest outstanding year(s) for which allocations have been made and distributions and payments to the most recent year(s) with discounting for which allocations have been made.
On October 16, 2020, by Resolution #2020-307, the Board approved the General Capital Credits Retirements (distribution and payments) as follows:
* In an amount not to exceed $6,100,000 to its members as credits on electric bills, and to any former members who are entitled to a General Capital Credits Retirement of at least $10.00 by check in 2020.
Such amounts were distributed and paid on or before December 31, 2020.
The Board also approved the Special Capital Credits retirements (distribution ...
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