Hill County Electric Cooperative Inc

“Gerald rutledge and kelly rutledge have a family relationship.”

“Hill county electric has two classes of members: large industrial members whose capital credits are calculated based on agreements, and the remaining members.”

“Each member is entitled to one vote for any trustee seat that is up for election regardless of class.”

“The cooperative may not sell, mortgage, lease, or otherwise dispose of or encumber all or any substantial portion of its property unless approved by two-thirds of all the members by vote at a duly held meeting. The cooperative shall not become a member of or purchase or acquire stock or other ownership interests in any corporation or other entity or organization without an affirmative vote of the members at a duly held meeting.”

“The organization does not have committees.”

“The general manager and controller will review the prepared form 990 in detail prior to filing. Additionally, a copy will be given to board members prior to its filing. The general manager or controller will present the form 990 at a board meeting prior to filing the return if so desired by the board.”

“Trustees and management are required to sign an acknowledgement of the conflict of interest policy annually stating that they will advise management of any questionable ownership interests or relationships. The board of directors is responsible for determining whether a conflict of interest exists. If a conflict exists, the affected board member is required to abstain from discussion and voting on the item.”

“The compensation of the general manager/ceo is determined by the board of trustees. Each trustee completes a written evaluation of the ceo's performance which is compiled with the other evaluations and presented and discussed with the ceo. Compensation for the next year is part of this evaluation and discussion process.”

“These documents are made available to the public upon request.”

“Officer compensation: the w-2 compensation and nontaxable benefits reported in part vii represent the portion of compensation that is attributable to hill county electric cooperative, inc. For the general manager/ceo and controller/cfo. Each of these individuals performs significant work for an unrelated cooperative through a shared management agreement. Compensation and benefits attributable to the unrelated cooperative have been excluded from form 990 part vii. Hill county electric cooperative inc pays these employees and the unrelated cooperative reimburses hill county for their share of compensation and benefits.”

“Other compensation: included in other compensation is the estimated current year increase or decrease in the actuarial value of the defined benefit plan for the general manager and controller/cfo. The current year increase or decrease does not represent current year contributions to the plan. Rather, it is an estimate of the increase or decrease in the actuarial value of the plan as calculated by the plan administrator.”

“Retirement of capital credits -286,021. Allocation of 2024 margins to members in 2025 960,894.”

“Number of employees on wage and tax statement: hill county electric cooperative, inc, is the common paymaster for two affiliated, unrelated organizations. As such, the number of employees reported on form w-3 includes three companies.”

“Allocated and other expense: the labor, pension and payroll taxes reported on lines 5-10 are included in distribution expense, administrative & general expense and customer expense. Therefore, labor, pension and payroll taxes are shown as a reduction to other expenses on line 24e.”

“The cooperative has interpreted the instructions to part ix, line 4, to mean patronage capital allocated for the year, rather than patronage capital retired. This is consistent with the by-laws of the cooperative.”