BEK - BEACON

Message from the CEO

2024 Allocations: Strategic Decisions for a Stronger Future

July 2025

This year’s Annual Meeting was another great turnout, as members and special guests gathered to look back on the performance of the cooperative for the year of 2024. While 2024 was a year of steady growth and significant progress, it also presented a unique challenge regarding allocations. I want to take this opportunity to highlight how we’ve strategically positioned BEK for long-term success.


One of the most significant developments of 2024 was the receipt of $11.3 million in grant funding, which enabled us to make major strides in expanding our network to rural areas in and around Valley City on the East side of the cooperative. This investment is a key part of our mission to deliver high-quality services and broadband to even more members in North Dakota.


However, as the grant money is taxable, we had to carefully consider how to manage the financial impact. To ensure that we could keep this vital funding intact and legally mitigate tax liability, we took strategic steps to protect the grant dollars. This involved depreciating the infrastructure we built in the Eastern region at an accelerated pace, rather than over 20 years. By doing so, we were able to eliminate the tax burden on the $11.3 million grant, keeping those funds available for completion of the fiber build this past year.


As a result of the accelerated depreciation, the cooperative did not generate any remaining margin that could be allocated to members this year. While this means no allocations for 2024, the decision was made with your long-term interests in mind. By minimizing the tax liability, we are positioning BEK for even greater success in the years to come, finishing the fiber buildout and upgrading transport technology to continue to advance BEK services to its members.


Currently, BEK Communications Cooperative is in a strong financial position, having earned $5.4 million in 2024, which was primarily used with the grant funds to complete the fiber deployment. The investments we made in infrastructure, paired with our efforts to reduce debt and increase our equity, have set us up for a bright and sustainable future. The cooperative is on solid footing, and the work we’ve done will benefit you, our members, for many years ahead.


We remain committed to delivering exceptional service and maintaining the cooperative spirit that has guided us for more than 70 years. Thank you for your continued support and trust in BEK Communications.

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