MESSENGER
Winter 2015
Capital credits
By Steve Merriam,
CEO/General Manager
Every fall, ASTAC sends out notices to our
member/owners, letting them know the value of
their capital credit allocation from the previous
year. This often generates questions from the
membership on what the allocation means. ASTAC
is a not for profit cooperative, wholly owned
by our members. ASTAC, nonetheless, typically
generates more income from operations than
it has corresponding expenses for. This surplus
income is referred to as our net margin. Our net margin is entered into our annual
tax return along with timing deductions, this results in our net tax margin. The net
tax margin is allocated to each member based on the amount of services they
purchased from the cooperative relative to all other members’ purchases.
ASTAC generally self-funds upgrades to the network with the margins we
generate. This is how we bring new and improved services to you. You still
retain the value of the capital credits that were allocated to you; we defer their
payment so that we can avoid having to borrow money and incur the interest
expense, which would diminish margins. Retaining funds to expand services is
a typical practice for cooperatives.
Allocated capital credits can be refunded to you under several scenarios.
Should the cooperative cease operations and be liquidated, part of the sale
proceeds would be paid out to the members to retire their capital credits. The
Board of Directors can and has authorized retirement of capital credits when
cash is sufficient to both self-fund network improvements and retire capital
credits. Should a member pass away, the estate or executor can petition for
a discounted full retirement of that member’s capital credits. Likewise, any
member who permanently moves away from the service area may have their
entire capital credit allocation retired on a discounted basis. In either case of
member estates or member moving from the service area, the subscriber or
the estate are responsible to request the capital credits be retired early on a
discounted basis. We are currently retiring capital credits from 1985.
Barrow was purchased from GTE by ASTAC in 2000 and our Barrow members
have been accumulating capital credits since then. At some time in the future,
Barrow members will start to have capital credits retired as well. For more
information on capital credits, go to: https://www.astac.net/servlet/content/
capital_credits.html
Benefits of a Cooperative
As a cooperative, ASTAC is managed, in
part, by the voice of the people it serves co-op members. In a cooperative, those with
similar needs act together and pool their
resources for mutual gain. But the returns
are not just monetary. Members ensure
that their cooperative business provides
the best quality products and services at
the lowest possible cost. Members control
their business through participation in their
cooperative; your voice is important, and
is heard at every membership meeting.
And because we are committed to serving
our membership as our partners, we strive
to serve each and every one of you with
the respect, dignity and efficiency that you
deserve - any time that you need us.
ASTAC retired the remaining capital credit
balance for 1985 this year as authorized
by the Board for a total of $566,227.34.
If members had an outstanding bad debt
balance, that amount was deducted from
the check. These checks were mailed
November 2, 2015.
FOR FREQUENTLY ASKED QUESTIONS VISIT
TO THE CAPITAL CREDITS FAQS WEB PAGE:
www.astac.net/servlet/content/
capital_credits.html
Employee of the Quarter
CONGRATULATIONS
JOYCE TAUFA!
Barrow Customer Service Representative
Joyce Taufa.
Joyce Taufa, a customer service
representative at ASTAC’s Barrow
store, has been named Employee
of the 3rd Quarter. Joyce has
worked for ASTAC for two years
and goes above and beyond her
normal duties, always looking for
ways to better service customers.
Joyce is known for her exceptional
attitude to her co-workers and
to customers and for being a
problem-solver.
Congratulations, Joyce!
2016 Calendar
We honor our past with this photo of the Pt. Hope cemetery as we look ahead to the new year.
Winter 2015
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6th Annual
Competition
And the winner is…
16-year old Dewayne Dirks from Pt. Hope, shown with
ASTAC Board Member Ella Kowunna, is this year’s Swoosh
contest winner! The grand prize – tickets to the Great
Alaska Shootout basketball tournament in Anchorage
Thanksgiving week as well as airfare and lodging for two.
Dewayne will make the trip with his mother.
Congratulations, Dewayne!
Ella Kowunna and winner Dewayne Dirks from Pt. Hope.
ASTAC sponsors North Slope School District’s Battle of the Books program
More than 300 North Slope students are taking part in this year’s
Battle of the Books reading competition thanks to a $15,000 donation
by ASTAC. The donation covers the cost of books, teacher’s time and
awards. Barrow’s Eben Hopson Middle School team (left) and the
Nuiqsut Trapper School will face off during the school year along with
teams from six other North Slope villages.
Photo caption.
Winter 2015
Board of Directors
Paul Bodfish Sr.
President – Atqasuk
Ella Kowunna
Secretary/Treasurer – Point Hope
Patrick Mekiana
Director – Anaktuvuk Pass
Noreen Kaleak
Director – Kaktovik
Marietta Aiken
Vice President – Barrow
Cornelia Sovalik
Director – Nuiqsut
Marjorie Long
Director – Point Lay
Terry L Tagarook
Director – Wainwright
Our new star
ASTAC Marketing and Customer Service Manager, Paula
Kangis, presents Nuiqsut’s Phillip Woods with a new
Samsung Galaxy S5.
Phillip, 17, stars in ASTAC’s TV spot that will air next fall.
Thank you, Phillip!
ASTAC OFFICE
4300 B St. Suite 501, Anchorage AK 99503
907-563-3989 Anchorage • 907-852-7100 Barrow
800-478-6409 Toll-free • E-mail: [email protected]
Winter 2015
Tim Tyler
Director – Prudhoe Bay