GVTC is a tax-exempt, member-owned Texas Cooperative, which means any revenues over and above its operating expenses are returned to its active members in the form of Capital Credits. This year, GVTC is excited to announce yet another record-breaking Capital Credit issuance amounting to $7.75 million in 2022, an increase from our 2021 Capital Credits amounting to $7.5 million. If you are a member, you should see that credit in your upcoming monthly June statement.
How the program works
Because GVTC is a cooperative owned by its members, it doesn't technically earn profits. If revenues exceed expenses during the year, GVTC will earn "margins." Annually, margins are assigned to each member in proportion to the amount of GVTC communications services paid by the member. This pro-rata amount of the margin is referred to as the member's "capital credits." This amount is not automatically refunded to each member. GVTC uses margins (i.e. capital credits) to fund the operating activities and minimize borrowing, with the intent of repaying this capital to the member in later years. They strive to operate in a prudent business manner so that the member-owners will continue to have the very best communication service possible at the lowest cost, consistent with good financial stewardship and sound management practices.
The GVTC Board of Directors annually reviews the cooperative's financial status to decide if capital credits are feasible and, if so, by how much. The amount released is in large part thanks to initiatives like our Member Dividend Program and the continuous fiber overbuild project in our service area. Our Member Dividend Program has also grown tremendously, with over $13.8 million returned to members in the form of dividends applied to their bills in the past 12 months. That is an increase of $ 1.2 million from the previous year. GVTC has distributed over $47 million back to our members since the inception of the program!
GVTC's prudent financial decisions have allowed the cooperative to give back over $124 million dollars to its member-owners in the form of capital credit checks since GVTC began operating. Overall, GVTC attributes its record-breaking Capital Credits to its local roots. We are so proud to be able to give back to our loyal customers!
