FAQ - Cooperative/Capital Credit Related Questions

What is a cooperative?

A cooperative is in many ways like any other business; but in several important ways it's unique and different. A cooperative business belongs to the people who use it - people who have organized to provide themselves with the goods and services they need. A cooperative operates for the benefit of its members. The members elect directors, which in turn oversee the management of the day-to-day operations of the cooperative in a way that serves the members' interests.

How do I become a member of the Cooperative?

Anytime a customer begins telephone service with CVTC, they automatically become a member of the cooperative.

What are "Capital Credits"?

Because CVTC is a cooperative, the difference between the cost of doing business and the actual revenues collected each year is calculated and the remaining dollars are credited in the names of the members on the books of the cooperative for that year. These credits do not represent cash held in your name.

How is the amount of credit to each individual determined?

Each year the difference between the cost of doing business and the actual revenues collected is computed by CVTC. This amount is equal to the total patron's equity for the year. A detailed allocation process is then applied to compute each member's share of the patron's equity. This computation is affected by the member's contributions to revenue through local service revenues, access minutes and directory advertising.

Do my payments from Internet and wireless apply to capital credit allocations?

Yes!

When are the credits distributed?

The Board of Directors of CVTC determines when the credits are distributed and which years of capital credits are to be paid.

Can you apply these to my account now? Can I deduct my credit allocation from my phone bill?

No. When capital credit allocations are retired, a check would be issued and mailed directly to you.

Do I receive interest on my unpaid Capital Credit balance?

No. According to the CVTC bylaws, a patron's equity account is not an interest bearing account.

What happens to the Capital Credit balance of a deceased member?

Capital Credits are payable to the heirs of the estate of a deceased member. There is some paperwork which must be completed before the credits are paid. Please contact the CVTC accounting office for more information about this process.

Why did I receive a Notice of Distribution asking that I return a signature card before I can receive my check?

Anytime a member has an account, which is no longer actively associated with a telephone number CVTC must first send out a Notice of Distribution to verify, in writing the members current address. Whereas, active accounts are not subject to this process because it is assumed that the address on the account is correct.

What happens to my Capital Credits when I move out of the CVTC service area?

Even if you move out of the CVTC service area, you still will have accrued Capital Credits for the time that you had service. For this reason, it is very important for you to provide us with a forwarding address. With this information, we will contact you at the time of distribution for the years in which you had active service, confirm your new address and send you your check.

I am no longer with the person whose name is listed with mine on the Capital Credits notice. What can I do about that?

You can write Copper Valley Telephone and request us to split the account. You must send a copy of a divorce decree or a death certificate. If your name has changed since the divorce or death, you should also submit a copy of your driver's license. In the case of divorce, the account is split in half.

Why did I receive more than one check?

If there have been changes to your account, such as a name change, or the addition or deletion of a name, there may have been a change in your member number. Each check dispersed represents a member tracking number. For example, if you had a joint account with some other individual and removed the other persons name your new single account would be assigned a new member number in order to allocate capital credits properly.