Colorado League delegates to vote on proposed 40% dues hike at annual meeting

<p>DENVER – Arguing it needs more funds to pursue its legislative and regulatory agenda, the Colorado Credit Union League is seeking a whopping 40% dues hike for next year. The increase would be the first significant dues boost in 20 years. League officials point out, however, the dues hike is actually less than it appears since Colorado CUs have been voluntarily contributing large sums to lobbying programs since the passage of H.R. 1151 in 1998. The dues increase, already adopted by the League Board, is to be considered by the membership May 4 during a business session at the annual meeting in Colorado Springs. The League noted that it was altering the system for collecting dues by adopting a “square root” formula that replaces a sliding scale system based on assets and number of members. It was also removing a cap on institutions over $1 billion. There are two CUs in that assets category, Bellco Credit Union, of Denver and Ent Federal Credit Union of Colorado Springs The League did say on its Web site that the additional resources are needed “to enhance legislative, regulatory and legal efforts to proactively position” Colorado CUs for “success in the legislative arena.” The League, said the Web site, “has a national reputation for being progressive,” and that the dues proposal “is visionary in making” the Colorado League “more proactive in legislative advocacy.” The dues formula “creates equity among all asset sizes,” adds a minimum for the smallest credit unions, and includes the Special Legislative Fund in League dues.” It was noted that some of the smaller CUs in the state would be paying far less than a 40% increase in their dues bills. Noting the vast industry changes since the last big dues increase in 1982, the League said that “while the current formula includes asset growth as a factor in the formula, historical analysis shows that 6% asset growth in credit unions yields approximately a 1.5% increase in League dues.” Other factors impacting dues revenue “include mergers and the declining number of credit unions.” Carla Hedrick, chairman of the Colorado League, and president of the $160 million Denver Community Federal CU, said if the dues proposal is adopted by the membership, the League budget will increase by $460,000 from its existing $1.4 million level, a jump of 40%. Hedrick pointed out, however, that some CUs will hardly feel a dues pinch since many have been contributing for years to a special legislative fund which is being rolled up into the dues structure. The legislative contributions, she said, have totaled more than $500,000, “going up and down each year” depending on various factors including how individual CUs view the competitive climate. But the new “square root” system is much more equitable to both large and small size CUs, she said. So far Hedrick said she has found widespread support for the new dues formula and increase among those “who understand the needs we have.” Apart from the dues proposal, attendees at the annual League meeting at the Broadmoor Hotel May 2-4 will “roast” Carroll Beach, the retiring Colorado League president, in a Saturday evening banquet. Beach, who is retiring June 1 after 29 years as president of the League, will be succeeded by James Holt, executive vice president and a former Wichita, Kansas- lawyer and lobbyist. Some 20 state League presidents are expected for the retirement party. Featured addresses at the convention will be given by NCUA Chairman Dennis Dollar, CUNA Mutual President/CEO Michael Kitchen; CUNA President Dan Mica and CUNA Chairman Barry L. Jolette, who also is president/CEO of the $420 million San Mateo Credit Union, Redwood City, Calif. Also slated to speak May 3 at a Friday dinner is U.S. Sen. Wayne Allard (R-Colo.). -</p> <p>[email protected]</p>