Bylaws are the rules that determine how we run the company. Taken together, they are a legal document that is considered a contract between all OTZ members by the courts. Bylaws can be changed by the OTZ Board of Directors.
OTZ Bylaws are available here or from our main office in Kotzebue. Simply call or stop in and request a copy.
How capital credits work
As a member of OTZ, you share in the profits of the co-op. At the close of each fiscal year, all revenue received in excess of expenses (i.e., profits) is allocated back to our membership in the form of capital credits. This allocation is based on the dollar amount of telecommunication services purchased during the same year.
This allocation is maintained in a separate holding account assigned to you. Your capital credit amount does not represent cash, but, rather, your equity in OTZ Telephone Cooperative Inc. You cannot apply these amounts to your telephone bill.
Instead, the amount is held for a number of years and is used by OTZ to fund capital needs for items such as cell towers, telephone lines and other infrastructure needs. This is a core principle in the cooperative business model, helping us keep your rates low and maintain and enhance our service to you.
Over time, capital credits accumulate in an account in your name and are periodically “retired,” or refunded to members and former members upon action by the OTZ Board of Directors. General retirements are issued if the financial condition of the cooperative will not be impaired. Retirements are issued to former members when they leave the co-op.