2017-11-10T14:05:10-06:00 2016-12-31 410746749 CLIFTONLARSONALLEN LLP PO BOX 217 AUSTIN MN 55912 990 2016-01-01 410558175 STEARNS COOPERATIVE ELECTRIC ASSOCIATION STEA 3202564241 900 KRAFT DR SE MELROSE MN 56352 DAVID B GRUENES CEO 3202564241 2017-10-05 1 CRAIG POPENHAGEN P01587689 5074347000 67.137.57.251 2017-10-05 09:42:42 CD P 3CC01FDBBBF5F1C37350B9F08E0FA4664EF72C75 7968A843484FCDAFA1EA93B2ACCB533C246A53AD 2016 2017-02-10 21:41:12Z STEARNS ELECTRIC ASSOCIATION DAVID B GRUENES 900 KRAFT DR SE MELROSE MN 56352 58010936 0 X WWW.STEARNSELECTRIC.ORG X 1937 MN GENERATION AND PURCHASE OF ELECTRICITY FOR DISTRIBUTION ON A COOPERATIVE BASIS TO MEMBERS. 9 9 72 36 0 0 0 0 53085669 55101565 484160 478595 1176988 2180615 54746817 57760775 0 0 3167758 4143057 364727 510904 0 0 0 51214332 53106814 54746817 57760775 0 0 127615082 133142416 69642382 72157930 57972700 60984486 GENERATION AND PURCHASE OF ELECTRICITY FOR DISTRIBUTION AND SALE ON A COOPERATIVE BASIS TO MEMBERS. 0 0 SOLD 503,624,905 KWH TO OUR COOPERATIVE MEMBERS IN 2016. THE AVERAGE NUMBER OF TOTAL SERVICES WAS 26,223. WE OPERATE ON A COOPERATIVE BASIS TO GENERATE, PURCHASE, DISTRIBUTE, AND SELL ELECTRICITY TO OUR MEMBERS. NET PATRONAGE MARGINS, OUR NET INCOME, IS USED TO COVER EXPENSES OR LOSSES IN PROVIDING SERVICE TO OUR MEMBERS. 0 0 0 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 1 0 1 0 0 1 42 0 72 1 1 1 0 0 0 0 56066547 978370 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X RALPH E MARTIN 3202564241 900 KRAFT DR SE MELROSE MN 56352 JEROME FRIES DIRECTOR 6.00 X 10050 0 0 GREG BLAINE DIRECTOR 4.00 X 8850 0 0 ARLYN LAWRENZ DIRECTOR 5.00 X 7650 0 0 RICHARD NATHE DIRECTOR 4.00 X 8600 0 0 RANDALL ROTHSTEIN DIRECTOR, PRESIDENT 4.00 X X 8250 0 0 JOHN ANDERSON DIRECTOR, VICE PRESIDENT 3.00 X X 7000 0 0 STEVEN NOTCH DIRECTOR, SECRETARY, TREASURER 3.00 X X 8400 0 0 LAWRENCE IVERSON DIRECTOR 2.00 X 7650 0 0 A MICHAEL BLENKUSH DIRECTOR 5.00 X 7600 0 0 HARLAN JOPP DIRECTOR, VP, PART YEAR 7.00 X X 3050 0 0 DAVID B GRUENES CEO 55.00 X 171311 0 59794 RALPH E MARTIN CFO 52.00 X 140388 0 62312 VICTORIA HERKENHOFF MANAGER OF ADMIN SERVICES 50.00 X 134665 0 61351 GLENN BLOMMEL OPERATIONS MANAGER 50.00 X 138392 0 59500 MATTHEW R O'SHEA MANAGER OF ENGINEERING 50.00 X 134082 0 54958 RYAN A ZIERDEN IT SUPERVISOR 55.00 X 104104 0 38270 GRANT WENKER LINEMAN 47.00 X 105472 0 28652 1005514 0 364837 7 0 1 0 CARR'S TREE SERVICE PO BOX 250 OTTERTAIL MN 56571 TREE CLEARING 1058870 KARIANPETERSON LLC PO BOX 345 MONTEVIDEO MN 56265 POWER LINE CONTRACTING 855466 LEGACY POWER LINE INC 12822 HWY 10 PO BOX 469 WADENA MN 56482 POWER LINE CONTRACTING 774858 NISC PO BOX 1147 MANDAN MN 58554 SOFTWARE SERVICE/SUPPORT 384197 CITI LITES LLC PO BOX 440 PEQUOT LAKES MN 56472 CABLE LOCATING 231922 5 SALE OF ELECTRICITY 221000 55101565 55101565 55101565 479672 479672 22909 0 22909 22909 22909 27236 28313 -1077 -1077 -1077 226229 221848 4381 4381 CAPITAL CREDITS 523000 1787192 1787192 SUBSIDIARY INCOME 523000 356541 356541 MISCELLANEOUS FEES 523000 9592 9592 2153325 57760775 57259271 0 501504 4143057 510904 2327346 3624052 COST OF POWER 37329119 MAINTENANCE 3148319 OPERATIONS 2700373 GENERAL & ADMIN 2349362 1628243 57760775 361012 1587130 6719449 6337329 5889952 6389443 1743195 1934964 62065 157087 122620349 36781254 82574715 85839095 29000614 28027542 2237152 1896754 127615082 133142416 8324372 9220666 60061356 61775417 1256654 1161847 69642382 72157930 X 0 0 0 0 57972700 60984486 57972700 60984486 127615082 133142416 X 0 3011786 X X 0 1 X 1 0 992754 992754 6004766 1423305 4581461 115622829 35357949 80264880 85839095 PATRONAGE CAPITAL 23707581 C INVEST IN CFC-LOAN CTCS 1133626 C INVEST IN ASSOCIATED ORG 13625 C INVEST IN ECON DEV PROJECTS 1564242 C OTHER INVESTMENTS 2581540 C 29000614 ACCUMULATED PROVISION FOR PENSIONS 488200 DEFERRED CREDITS 673647 1161847 X PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE. THE COOPERATIVE'S WHOLLY OWNED SUBSIDIARY, SEA DEVELOPMENT, LLC, IS TREATED AS A DISREGARDED ENTITY FOR INCOME TAX PURPOSES. LOSSES FROM THE LLC ARE INCLUDED WITH THE COOPERATIVE'S UNRELATED BUSINESS INCOME FOR TAX REPORTING PURPOSES. THE COOPERATIVE UTILIZES AN ASSET AND LIABILITY APPROACH TO FINANCIAL ACCOUNTING AND REPORTING FOR INCOME TAXES. DEFERRED INCOME TAXES ARE COMPUTED ANNUALLY FOR DIFFERENCES BETWEEN THE FINANCIAL STATEMENT AND TAX BASIS OF ASSETS AND LIABILITIES THAT WILL RESULT IN TAXABLE OR DEDUCTIBLE AMOUNTS IN THE FUTURE BASED ON ENACTED TAX LAWS AND RATES APPLICABLE TO THE PERIODS IN WHICH THE DIFFERENCES ARE EXPECTED TO AFFECT TAXABLE INCOME. SUCH DIFFERENCES RELATE TO NET OPERATING LOSS CARRYFORWARDS INCURRED BY THE COOPERATIVE THROUGH DECEMBER 31, 2004, WHICH ARE AVAILABLE TO OFFSET FUTURE TAXABLE INCOME. THESE NET OPERATING LOSS CARRYFORWARDS BEGIN EXPIRING IN 2020. VALUATION ALLOWANCES ARE ESTABLISHED WHEN NECESSARY TO REDUCE DEFERRED TAX ASSETS TO THE AMOUNT EXPECTED TO BE REALIZED. THE BENEFIT FOR INCOME TAXES IS THE TAX PAYABLE OR REFUNDABLE FOR THE PERIOD PLUS OR MINUS THE CHANGE DURING THE PERIOD IN DEFERRED TAX ASSETS AND LIABILITIES. THE COOPERATIVE EVALUATED ITS TAX POSITIONS AND DETERMINED THAT IT HAS NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2016 AND 2015. X X 0 0 0 DAVID B GRUENES CEO 171311 0 0 0 0 0 42975 0 16819 0 231105 0 0 0 RALPH E MARTIN CFO 140388 0 0 0 0 0 39600 0 22712 0 202700 0 0 0 VICTORIA HERKENHOFF MANAGER OF ADMIN SERVICES 134665 0 0 0 0 0 39600 0 21751 0 196016 0 0 0 GLENN BLOMMEL OPERATIONS MANAGER 138392 0 0 0 0 0 39953 0 19547 0 197892 0 0 0 MATTHEW R O'SHEA MANAGER OF ENGINEERING 134082 0 0 0 0 0 38506 0 16452 0 189040 0 0 0 MICHAEL BLENKUSH BOARD MEMBER 34687995 PURCHASED POWER. 0 FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS MEMBERS, EACH HAVING ONE VOTE. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS ELECT THE GOVERNING BODY BY BALLOT THROUGH 9 VOTING DISTRICTS. FORM 990, PART VI, SECTION A, LINE 7B REMOVAL OF DIRECTORS FOR CAUSE & REINSTATE AN EXPELLED MEMBER. DISPOSAL OF MORE THAN 25% OF THE COOPERATIVE PROPERTY. MERGE OR CONSOLIDATE WITH ANOTHER ENTITY AND FILE BANKRUPTCY. A BYLAW CHANGE MUST BE APPROVED BY THE MEMBERS. FORM 990, PART VI, SECTION B, LINE 11B THE CEO/GM AND THE CFO PROVIDE AND REVIEW FORM 990 WITH DIRECTORS BEFORE FILING FORM 990, PART VI, SECTION B, LINE 12C BOARD/OFFICERS PROVIDE AN ANNUAL STATEMENT LISTING CONFLICTS OF INTEREST. DIRECTORS MAY NOT VOTE ON ACTIONS WITH A CONFLICT OF INTEREST. THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS THE CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 A NATIONAL SURVEY IS USED FOR COMPARABILITY DATA. THE BOARD TAKES ACTION INDEPENDENTLY TO ESTABLISH COMPENSATION FOR THE CEO'S COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS & CONFLICTS OF INTEREST POLICY ARE AVAILABLE ON REQUEST TO THE PERSON LISTED IN PART VI-C, LINE 20. FINANCIAL STATEMENTS ARE AVAILABLE PER THE PUBLIC INSPECTION RULES. FORM 990, PART XI, LINE 9: CAPITAL CREDITS RETIRED -1,238,371. PATRONAGE MARGINS ALLOCATED 4,143,057. ACCUMULATED OTHER COMP MARGINS 107,100. PART XII, LINE 2C: THE PROCESS FOR OVERSIGHT OF THE ANNUAL FINANCIAL STATEMENT AUDIT AND SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED. FORM 990, PART IX, LINE 4 THE IRS INSTRUCTIONS STATE THAT PATRONAGE MARGINS ALLOCATED BY SECTION 501(C)(12) ORGANIZATIONS TO THEIR MEMBERS SHOULD BE REPORTED ON LINE 4. THE ORGANIZATION HAS INTERPRETED PATRONAGE DIVIDENDS PAID TO MEAN PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED FOR THE CURRENT YEAR. SINCE THIS ALLOCATION IS NOT AN EXPENSE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), THIS HAS RESULTED IN A RECONCILING ITEM TO NET ASSETS IN PART XI, ON PAGE 12 OF THE FORM 990. SEA DEVELOPMENT LLC 900 KRAFT DR SE MELROSE MN 56352 383733826 LAND/ECONOMIC DEVEOPMENT MN 161507 1579991 STEARNS COOPERATIVE ELECTRIC ASSOCIATION 1 1