President’s Message April 2011

Principle or Principal

One of the many unfortunate by-products of a major recession is the way it interferes with our financial plans and goals. Carefully laid out plans and disciplined financial habits seems to be for naught when the value of our 401k or home or other real estate holdings suddenly declines significantly. For some this means delaying planned retirement and for others it results in a change in life style.

Helping Each Other Through The Recession

We all have been affected to one degree or another by this recession. While the credit union remains healthy and strong because it has no debts and has tried to follow sound financial principles, the credit union and its members are nevertheless affected by the economic downturn. As some members experience unwanted changes in jobs and income, they may have trouble keeping up with loan payments and other obligations. The money borrowed by credit union members is the same money that other members of the credit union have placed in savings. By matching borrowers and savers, the credit union enables members to save at competitive rates and to borrow at low rates. Interest paid on loans is used by the credit union to pay for expenses and to pay interest to the savers. The not-for-profit credit union model works well bringing the saving and borrowing credit union members together and offering them both great value. That is part of the reason the credit union has remained healthy – despite the effects of the economy around us.

Real Estate in a Recession

For many years, we all have been able to rely on the fact that unlike autos and other household purchases which go down in value, real estate purchases and investments have consistently and reliably gone up in value. For many, buying a home that would appreciate in value has been an important part of a long-term financial plan. For many years, we have been able to invest in real estate and see reasonably quick financial rewards. Many people, including credit union members, have borrowed to purchase and invest in all types of real estate. Unfortunately, in the current economic environment real estate values of all types have actually gone down. We are not use to this. And while it is to be expected that real estate values will recover – we are told that it will take a while for that to happen. In the meantime, many are faced with owing more on a home, a building lot, or other real estate than it is worth. While we expect this to happen with autos – we are certainly not used to it happening to real estate. We understand it is uncomfortable to be making payments on real estate currently worth less than what is owed. When the loan principal exceeds the value – it can be hard to continue believing in the principle of honoring our obligations and promises to make agreed payments.  Some don’t want to wait for real estate values to recover. They are even tempted or in some cases ill-advised to just “walk away” from the property and the loan. Of course, it is not that simple. The legal and moral obligation doesn’t go away by “walking away” or “giving back” the real estate.  At minimum, a person’s credit rating is at risk. Generally, if the real estate is sold at the lower value, the person will still be liable for the balance owed (deficiency balance). At UCCU any losses suffered as a result of unpaid loans is shouldered by all the members. The credit union has no money of its own. Every penny at the credit union is owned by members. Members who are having trouble meeting their payments due to unemployment or underemployment need to contact us to see if we can make arrangements or adjustments to help you honor your commitment and help you successfully get through these times. We understand that financial troubles can become so overwhelming that even steps like bankruptcy can be appropriate considerations. Please talk with us first to see if there is a way we can help you avoid that blemish on your credit rating. We will do everything we can to help you.

Don’t “Walk Away”

For those few members who are able to continue making payments but are considering “walking away” from payment obligations because the real estate owned is worth less than is owed, as fellow members of the credit union we suggest they consider the following:

  • Returning the real estate doesn’t cancel out the loan balance. You are still liable for the balance.
  • When it comes to keeping society and the local economy healthy, principle trumps principal. We each have a moral and legal obligation to the other members of the credit union. The recession has hurt all of us. By meeting our obligations to each other we protect each other, the credit union, and we enable the credit union to continue offering outstanding value and service to all members. Having faith in the future helps us to continue meeting our obligations – despite the inconvenience and irritation that comes from working our way through a major recession.
  • You didn’t borrow the real estate from the credit union or its members – you borrowed the money from them so you could make the purchase.
  • Your promise to repay the money doesn’t hinge on whether or not your investment paid off or on whether or not the real estate increases in value.
  • Just as you wouldn’t be expected to share any profit from the real estate investment with the other members of the credit union – you shouldn’t expect the other members of the credit union to shoulder any losses you have if your investment doesn’t return a profit – yet.
  • Other credit union members had faith in you by lending you the money. By repaying the loan you also repay and honor their trust in you.
  • Your credit rating can be drastically affected – thus curtailing your ability to take advantage of post-recession opportunities to rebuild your investments and re-establish your financial, estate, and retirement plans.

So if you or someone you know is tempted or ill-advised to “walk away” from a loan or obligation here at the credit union or anywhere else – please be careful and wise. This recession will pass. Real estate values will recover. And some investments don’t always pan out – but in the long run, your character and integrity always will.

UCCU – Here For You

The credit union is here for each of us. We offer the services, the products, and the information that can help you successfully reach your financial goals – even through a tough recession. We need to have faith in each other – and ourselves. As we do this, I am convinced that our best efforts and commitment will make us and our community a better place in which to live, work, and raise our families.

Jeff Sermon

President/CEO

Utah Community Credit Union

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Home Equity Loan, Home Equity Line and Refinancing: Differences and Advantages, Which one works best for you?

Many homeowners find themselves in need of extra cash to pay for unexpected medical bills, a new car, college tuition, home repairs or home remodeling. A UCCU home equity loan, home equity line of credit or mortgage refinancing can solve this need. However, each is different and offers its own advantages.

Home equity loan

A home equity loan is secured by the equity value in the member’s home. The member uses the equity in his home as collateral for the loan. Home equity loans are useful for individuals who need a large sum of money quickly – for a short-term need – to pay for such things as medical bills, debt consolidation or a new car. Home equity loans are often considered second mortgages, even though they may have a lower interest rate than the original mortgage. The amount of the loan can vary but can be up to 80 percent of the home’s value. Home equity loans are generally issued in a lump sum.

A home equity loan is fairly straightforward to obtain. A simple credit check and a home appraisal are usually needed in order to apply for a home equity loan. The homeowner receives a lump sum with a low fixed interest rate. This allows you to have fixed, consistent and predictable monthly payments.

Taxpayers enjoy significant tax advantages, including interest deductions, with home equity loans, but always check with your tax accountant for your specific situation.

Home equity line of credit

A home equity line of credit (often referred to as a “HELOC”) may be viewed as a form of revolving credit, with your home serving as collateral. The maximum amount of a home equity line of credit is generally the same as for a home equity loan. As with a home equity loan, the member can usually use the loan as he or she sees fit. Home equity lines of credit are usually used for ongoing expenses, such as paying for college tuition, home improvements or recurring medical bills.

A home equity line of credit requires the same documentation as a home equity loan – a credit check and home appraisal – and is easy to apply for. However, a home equity line of credit is issued in the form of a credit card or checks. Once an amount is approved for a line of credit, the member can continue borrowing up to the maximum.

Home equity lines of credit are useful for members who might need a large sum of money over a longer period of time. Examples include home remodeling and college tuition. Home equity lines of credit act like credit cards but with some clear advantages. Home equity lines of credit typically have much lower interest rates – often below prime – and fees than do standard credit cards, so paying off high-interest credit cards may be a good use of a home equity line. That said, the interest rate on home equity lines of credit is often variable as compared to the fixed rate on most home equity loans.

Refinancing

When you refinance your mortgage you are generally replacing your current mortgage. You are “cashing out” your current mortgage and replacing it with a new mortgage under current market conditions. Members typically refinance when rates have decreased enough to make it worthwhile to refinance – meaning they will be paying less overall interest or lowering their monthly payments. Members often refinance a first mortgage to shorten the life of the loan, seek a lower interest rate or reduce the monthly payment.

If the Federal Reserve cuts interest rates to stimulate the economy, you may be able to secure some savings from refinancing your mortgage. On the other hand, if you have an adjustable-rate mortgage and are not able to keep up with your mortgage payments, then refinancing may be the answer. Keep in mind, there are fees and closing costs associated with refinancing your primary mortgage.

Refinancing generally makes sense if you are going to remain in your home for a number of years in order to recoup the closing costs and mortgage refinancing fees. Additionally, refinancing from a 15-year loan to a 30-year loan may not make sense if you end up paying more over the life of the loan.

Whether you are thinking about a home equity loan, home equity line of credit or mortgage refinancing, Utah Community Credit Union can help you figure out which one best suits your needs and which option will be most cost effective.

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April Member Story

Although we often hear talk about the current state of our economy—the recession, unemployment, foreclosures, and bankruptcies, the tangible ways in which families are affected seems to be the single best yardstick to measure the losses. Recently a woman came into our branch looking for an auto loan. Because of the economic downturn she and husband declared bankruptcy three years prior. Before their financial struggles began, this family earned a higher income and enjoyed what they thought was a secure and stable lifestyle. This woman came to us in very humbled state and expressed two simple needs: first was her need to buy a used family car, and second, perhaps most important, was her need to rebuild her credit.

When financing auto loans we review what we call the 5 C’s: character, capacity (debt to income ratio) capital, collateral and condition. Although it was clear her biggest challenge in getting approved would be her credit, I was also able to weigh other things as a highly influential factor. It quickly became evident that she was a person of character, integrity, and that the loan to value of the vehicle presented little risk in the loan. Ultimately, we were able to approve her for the loan she needed, her first approval since filing for bankruptcy. Having a reliable vehicle for herself and for her family was important; it was a tangible need; however; getting the opportunity to rebuild her credit meant a lot more to her, and the benefits of that, would surely outlast any vehicle.

I am happy to say that she is now a member of our credit union. Not only did she open a checking and a savings account for herself, but her positive experience and excitement impelled her to refer her 19 year old son, who also opened a checking and savings account with us; her brother, who refinanced his vehicle; and most surprisingly, the salesman who sold her the used vehicle has begun the process of applying for an auto loan at UCCU as well.

Despite the sometimes bleak talk about the economy and financial institutions’ inability to lend money, we were able to find a way to meet our member’s need. We helped to restore her confidence and regain some control over her now optimistic financial future—in the process we gained a satisfied new member.

Story by: Kyle Brinkerhoff,

Assistant Branch Manager

American Fork Branch

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What your children can teach you about saving money.

Teaching your children how to handle money is an important part of parenting. Children learn a lot about money by seeing the way their parents manage the monthly budget. But, what happens when the teacher cannot follow his or her own advice? Sometimes it helps to take a step back and look at what your kids can teach you. You may be surprised to learn some valuable lessons.

Give yourself an allowance.

Experts say that when children are given an allowance, they should split it into three areas – savings, spending money, and charity. Children do not generally have a problem with that, but for some reason, many adults do. Times are tight and you may not always be able to achieve this, but keep this goal in mind. Some months you will be pleasantly surprised that it does work.

Trade with friends.

Whether it involves exchanging peanut butter sandwiches for egg salad or video game cards for baseball cards, children are masters at the art of trading to get what they want. Why not try this with your friends? There are many instances when swapping with friends is much smarter than buying something new. Whether it is clothing or power tools, think about what you have that your friends may be interested in and then suggest a trade.

Do your homework.

You are always telling your children the importance of doing homework, but are you following your own advice? Homework not only reinforces the concepts kids learn in class it teaches the consequences of not being prepared. Adults need to do homework, too. When you are shopping for the right new kitchen appliance, an insurance provider or an investment option, it always pays to study your options first.

Hop on the bus or carpool.

Today, it seems that our children are much more environmentally conscious than we are. They realize and are concerned about the high number of gas guzzling cars on our highways. They are also more likely to take public transportation to school; they often have no other choice. Think about utilizing public transportation or carpooling to work. You will save money, do your part for the environment and may even make new friends.

Though you are the parent, there are many things you can learn from children-including ways to manage money. If you want to teach your kids responsible financial practices, it pays to follow your own good advice. At UCCU we are always happy to share with you ways to help you stretch your dollars farther.

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How much do you need to buy a home?

Show me the money:

How to determine if you have enough to buy a home.

Owning a home is the American dream. But if the economic difficulties over the past few years has taught us anything it is that home ownership is not affordable or a wise option for everyone. The proof lies in the sub-prime loan debacle, when aggressive lenders convinced homeowners that they could afford homes–even when they had no money to put down or the necessary income to support the loan as interest rates increased. As a result, homes were lost, dreams were shattered and our economy was driven into the deepest recession since the Great Depression.

So how do you know if you can afford to buy a home? And how much money do you need? Ultimately, you know better than anyone whether you can afford a home. Before you talk with an agent or lender think about the following factors, which affect your ability to afford a home:

  • The price of the home you want. Prices vary considerably by the size of the house, its amenities, and the location. Determine what size of home your really need and shop around to see the price range.
  • Your employment history. Is your job situation steady? Do you have a strong work history? If you are unsure about the stability of your job, it is not a good idea to buy a home.
  • The down payment you have. Keep in mind that you will need to put between 3 and 20% of the sales price down as down payment. In general, the higher the down payment you can make, the easier it is to qualify for a loan, and the better the interest rate is–which results in a lower monthly payment. In addition, if you do not have 20% down payment then you are required to pay Private Mortgage Insurance, which will drive up your monthly payment. Beside down payment closing costs also need to be considered and discussed with the lender and agent.
  • How much can you afford? Experts say that you can generally afford a home that costs about two-and-one-half times your annual salary. Most mortgage lenders and financial institutions offer free calculators online that can help you determine how much you can afford to pay. However, other debt if applicable may need to be considered when calculating the maximum purchase price.
  • Understand the relationship between rates and points. With most mortgages, you have the option to pay points to get a lower interest. A point is 1% of the amount you borrow. The more points you pay up front, the lower your rate will be. If you plan on owning the house for several years, it may be wise to pay points to get the best interest rate. The lower interest rate will save you more in the long run, but cost more up front.

Any homeowner will tell you that there are many benefits to owning a home; however, the last thing you want to do is fall in love with and buy a home you simply cannot afford.   Carefully review your budget as well as your job and financial situations to ensure that you will be able to afford the home. No matter what anyone tells you, you are the expert on what you can manage. Owning a home you can afford will be a great thing, while owning a home you cannot afford will be a bad dream.

To speak with a knowledgeable UCCU mortgage professional about your unique situation, stop by your local branch. Utah Community Credit Union is ready to help with all of your home financing needs and help answer all the questions you may have!

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A Call to Action by your Credit Union CEO: “Save our Debit Cards”

The very popular VISA debit card program at UCCU that dates back to the mid 80’s has recently come under fire from Congress. Last fall, in a last minute move, Senator Durbin (D-Illinois) added an amendment to the Frank/Dodd financial reform act. Without the benefit of Senate review, research or scrutiny, the amendment passed along with the rest of the huge Frank/Dodd act.

The Durbin Amendment is unnecessary- and it is wrong! Save our Debit Cards! Contact your elected representative today by clicking here or by visiting www.saveyourdebitcard.com!

What is “interchange”? Why is interchange necessary? How will changing interchange fees impact UCCU members? For this and other answers click here and review the factsheet.

In short, the Durbin Amendment removes the free market forces that determine the amount of the fee paid by retailers to participate in the plastic card payment network and puts the government in charge of determining the fee amount. In addition, the amendment disallows the government from considering all appropriate costs associated with operating a debit card program. For example, the cost of fraud, security, and fraud prevention are not allowed to be part of the formula to determine the fee paid by merchants. The government is also not allowed to allow for any profit in the formula. As a result, the fee income is expected to drop by a devastating 70%-80%! This money, considered by some to be as much as $18 Billion a year would now go to the retailers and merchants. Meanwhile, financial institutions like UCCU are left with not only the costs associated with operating the debit card system but also the costs of  fraud prevention, insurance, and the actual fraud losses – all with no way of covering those costs! Fraud loss alone during 2010 at UCCU was over $500,000!  And that is a lower-than-typical loss rate for operating a VISA program. Under existing laws, neither retailers nor the members have liability for those fraud losses – they are absorbed by the credit union and are covered as part of the costs of providing the service to members. We spend $10’s of thousand each year on fraud prevention software and systems to fight fraud and keep transactions as safe as possible for all members. The retailers enjoy the instant and safe reassurance of receiving the money for sales and we have nearly all the risks. This is a bad amendment that will end up lining the pockets of retailers and ultimately the costs will be borne by the American consumer. The loss of this income is financially devastating to financial institutions trying to offer their customers a VISA debit card program. Senator Durbin knows this and so he offered a handwritten change in the amendment at the last minute that would exclude all financial institutions under $10 Billion in size. This two-tier pricing program would mean that merchants would pay lower fees on debit cards from huge banks like Bank of America or Chase – but they would pay higher fees on debit cards issued by local institutions like UCCU, Bank of American Fork and others. Huge retailers will not want to accept cards from local, smaller institutions.

Recent Senate testimony from FDIC chairman Sheila Bair, and NAFCU President Fred Becker clearly warned that this two tier system won’t work. Ben Bernanke of the Federal Reserve Bank made it clear that excluding financial institutions under $10 Billion won’t work and predicted that despite this exclusion in the Durbin Amendment, all financial institutions would end up following the government established fee structure. With a 70%-80% loss of income, financial institutions will be forced to replace the needed income by raising fees and/or rates. Even a not-for-profit organization like UCCU must find the income to pay the expenses of operating the debit card program. So, the money goes to the retailers as increased profits and comes from – guess who- the consumer. Government should not be involved in picking winners and losers and should let the free market determine prices and costs.

As Senators and Congressmen have come to understand the real impact of this amendment they see that it is an unwise insertion of the government into the free market forces and that it rewards retailers unfairly at the expense of financial institutions and consumers. As a result, Senator Testor (D) from Montana introduced SB 575 which doesn’t repeal the Durbin Amendment, but rather delays its implementation and requires that a study be done to determine the true costs of operating a debit card program and the ramifications of such an intrusion by the government would have on financial institutions and consumers. (This study should have been required before this amendment was hastily added at the last minute!) Utah Senator Mike Lee sees through the smoke screen thrown by Senator Durbin and the retailer lobby and has signed on to support SB 575. Our local Congressman, Jason Chaffetz has also thrown his support behind a similar delay bill in the House. We commend both these elected officials for protecting the Utah consumer and the smaller financial institutions across the country. Congressman Jim Matheson has not yet signed on to this bill. Senator Hatch has not yet signed on.

Now – the call to action. As a member of UCCU we ask that you consider the following material and that you take advantage of the simplified process to contact your elected officials regarding this important matter. In the case of Senator Lee and Congressman Chaffetz – a message of thanks and support is important. Both are taking a lot of heat from the merchant and retail lobbies. By hearing from our 105,000 members that their efforts are appreciated, they will remain committed to delaying and/or repealing this terrible amendment.

If your elected representatives have not yet signed on to support these delay bills: Senate Bill 575 and House Resolution 1081 please urge them to do so immediately! The next few weeks are crucial in delaying and possibly overturning the Durbin Amendment. Follow the simple steps outlined and protect your Debit Card and your Credit Union (and all credit unions and community banks) from the nasty effects of this unwise, special-interest amendment. The government has no business setting debit card fees.

Take action and let your voice be heard! We have made if very simple and easy for you to communicate with our elected representatives. Your voice matters! Let it be heard.

 Remember, the Durbin Amendment is bad because:

  1. It interferes with the free market and puts the government in charge of determining prices and fees.
  2. It does not require that the “savings” go to consumers. In fact, the “savings” will go to the retailers as increased profits. (Otherwise, why would the retail lobbies be so active in supporting the Durbin Amendment?)
  3. It does not make sure that the two tier pricing system will ever materialize and it does not require that merchants and retailers continue to accept cards from all financial institutions.
  4. It does not make sure that all the costs of compliance don’t eventually get paid for by the American consumer. (In Australia where the government did the same kind of thing as called for in the Durbin Amendment – research shows that the “savings” did NOT get passed on to the consumer but rather went to the retailers and merchants. Surprise, surprise!)

In conclusion, and just in case you are still wondering if the Durbin Amendment is good or not – just imagine the screaming we would hear from retailers such as Walmart if the government decided that they needed to interfere with the free market system and by setting the prices Walmart could charge for their groceries in order to protect the small “mom-and-pop” grocery stores threatened by Walmart’s low prices. And let’s say that the government would set the prices based on just the costs of buying the groceries and produce. They would not consider the costs of security, the costs of shoplifting, the costs of spoilage, the costs of bad checks or other fraud, the costs of advertising or marketing. On top of that, they would not build into the price limits any allowance for any profit at all for Walmart’s grocery sales. (Walmart sells 1/5 th of the nation’s groceries. If they weren’t allowed by the government to make a profit – they wouldn’t sell groceries.) And let’s say that the government price setting plan would take all that “saved” money and give it to the banks – just to increase their operating profits! Can you imagine the complaints we’d hear from Walmart about the government interfering with the free market process and robbing Walmart of a chance to compete and prosper. If Walmart’s grocery profits, as a result of this government intervention, shrunk by 70% – 80% – Walmart would have to find other ways to replace it by raising prices or fees for other services or by marking up prices for clothes, toys, or other goods. Again, the American consumer would end up paying for the government program.

Yet, that is exactly the kind of thing that the Durbin Amendment proposes to do to financial institutions and American consumers. But sadly, in this case – since it puts money in the pockets of retailers, now Walmart is among many retailers who support and actually praise the government for interfering through the Durbin Amendment. So much for principle.

Even though I don’t like to see smaller stores close their doors because of the arrival of a Walmart or Home Depot, I support completely their right to pursue success, sell things cheaper than competitors, and operate without the government interfering and picking winners and losers in the retail industry. I support completely the retailers’ freedom to compete and charge what they want to. I also understand that many UCCU members shop at and even work for Walmart or other retailers. I have no negative feelings about that at all. But I believe in the free market system and am convinced that service, industry, businesses, and communities are better when the free market system is allowed to operate. In those few cases where government intervention is deemed appropriate, it must be done correctly, fairly, and not at the expense of one industry and the enrichment of another. The Durbin Amendment is unnecessary- and it is wrong!

Save our Debit Cards! Contact your elected representative today by clicking here or by visiting www.saveyourdebitcard.com!

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UVU to host 8th Annual Latino Youth Leadership in Action Conference

On Thursday, March 17, Utah Valley University will host the 8th Annual Latino
 Youth Leadership in Action Conference (LYLAC) in the UCCU Events Center and the Sorensen Student Center. The theme this year is “It’s Up to Me…Yo Soy la Herencia.”

The Latinos in Action Program trains Latina/o middle school, junior high and high school students as paraprofessionals to tutor, mentor, and be role models at their local elementary schools. Roughly 1,400 students from 51 schools across the state will be on campus for the day-long conference. The goal is to connect Latina/o students with educators, universities, business owners and other community leaders. This conference creates a space for those students to voice their successes, concerns, and possible solutions for improving their experience in the Utah educational system.

“It is a privilege for UVU to host this conference and to facilitate the exchange of ideas between students and administrators,” said Yudi Lewis, counselor for UVU’s Latino Initiative.

“How exciting it is to have the best of the best of Latino high school students come together for an event that will continue to empower them to lead by example,” said Jorge L. Agüero Jr., Marketing and Development for Utah Community Credit Union.

During the morning session, Victor Villaseñor, best-selling author and Pulitzer Prize nominee, will address the students in his keynote speech. Villaseñor’s work includes “Rain of Gold,” which is required reading in many school systems, including colleges and universities, throughout the nation. Published in seven languages, “Rain of Gold” tells the story of his family, taking the reader from war-torn Mexico during the Revolution to the present day. An HBO mini-series on Villaseñor’s works has been announced for the near future.

“He has a passion and excitement to share his story – our kids will really be able to relate to it,” said Jose Enriquez, founder and director of Latinos in Action, a local program that inspires bilingual Latino students to utilize their language skills in leadership opportunities and service to their own communities, and supports them in their college and career goals.

Enriquez said it was important to have a keynote speaker who would not only motivate the students, but relate to them.

“He really sticks to ‘Who am I, and what is my role in this community?’ The books he’s written and his work will really resonate with these kids,” Enriquez said.

Currently, 39 of the schools attending the conference are Latinos in Action schools. The other 12 schools are planning to implement the program in the near future.

The conference is a collaboration between UVU, Utah Community Credit Union and the Latinos in Action Program, and will run from 8 a.m. to 4 p.m. More information is available at: www.latinosinaction.org/latinos, or through Yudi Lewis, at 801-863-7357.

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Provo school buses to get new home

Daily Herald | Posted: Friday, March 4, 2011 12:25 am

Every weekday morning at 6, more than 60 bus drivers and travel assistants make their way to the Provo School District to start up the school buses sardined into the maintenance and parking area behind the district building.

We have a dilemma,” said Greg Hudnall, director of student services. “We have 46 buses with over 60 people at 6 a.m. and the parking lot is already full.” Between 6:30 and 9 a.m. the area is overrun, he added.

According to Hudnall, it’s not just the drivers who are looking for a place to park, it’s teachers coming to the district for morning training, sports events at Fox Field just north of the district building and more.

“There is never enough parking,” Hudnall said. However, he said the district may have found a solution to the problem.

Jeff Sermon, president and CEO of Utah Community Credit Union, is hoping the credit union has that solution.

The old Qwest maintenance facility at approximately 1545 N. Freedom Blvd. has been empty for a while. According to Sermon, UCCU is in the process of purchasing the site with the anticipation of sub-leasing the grounds to the school district as a new home for its buses.

“We are always looking for property to purchase,” Sermon said. He said in the very long term the property could be used for another branch of UCCU, but that is still years away. For now it will be a relief for the school district.

“We are an education-based credit union. We give scholarships and internships. We appreciate our relationships and look at ways to help out with education. We want to help solve their problem and are very interested in purchasing this to help.”

While the sale is not finalized, none of the parties see a reason why it won’t happen.

“The lease cost had yet to be determined,” Hudnall said. “However, we have been out measuring the area today [Wednesday]. We feel confident working with the credit union and what they might charge.”

Hudnall and others hope the buses will be parked at their new home just before the school year comes to a close. Concerns over property lines with the Army Reserve depot just south of the Qwest facility are in dispute but are expected to be resolved soon.

“We look forward to being at the new facility within a month or two. And having room for everyone,” Hudnall added.

Copyright 2011 Daily Herald. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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