HomeMy WebLinkAbout20130058.tiffSteve Moreno, Clerk and Recorder, Weld County, CO
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RESOLUTION
OFFICE OF THE PUBLIC TRUSTEE
WELD COUNTY
STATE OF COLORADO
WHEREAS, Pursuant to C.R.S. 38-37-104(6), I, Susie Velasquez, in my capacity as the
Public Trustee of Weld County, Colorado, and as the sole officer of the Office of the Public
Trustee for that county, adopt by resolution the attached budget for the 2013 budget year and
authorize the appropriation of funds in conformity with that budget.
WHEREAS, I certify that this budget has been prepared pursuant to the requirements of
the Local Colorado Government Budget Law, 29-1-101 et seq., C.R.S. and the statutes governing
the Office of the Public Trustee 38-37-101 et seq., C.R.S.
WHFREAS, this budget is effective immediately.
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RESOLVED this _ day of December 2012.
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2013-0058
12/21/2012 09:29 AM R Fee:531.00
Steve Moreno, Clerk and Recorder, Weld County, CO
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2013 BUDGET MESSAGE
OFFICE OF THE WELD COUNTY PUBLIC TRUSTEE
PUBLIC TRUSTEE SYSTEM
Colorado is unique in that it has a Public Trustee system. The Office was created in response to abuses
of Coloradans' property rights during the Panic of 1893, and continues in this mission to this day. Most
other states handle foreclosures through a private trustee system or through the judicial system. In
Colorado, as in other states, foreclosures can be handled judicially through a Sheriffs sale. The Weld
County Public Trustee is dedicated to protecting the rights of borrowers, lenders and lien holders.
The primary function of the Public Trustee system is to provide an efficient and low cost way for a
creditor (lender) to have recourse on a debt secured by real property and, at the same time, provide
safeguards to the owner of the property. The Public Trustee system succeeds when It provides a
balance of procedural rights between borrowers and lenders. This is the primary mandate and strength
of the Public Trustee system in Colorado — an independent, impartial, neutral balance between two
parties of interest involving the business of lending money, acceptance of debt and recourse when
property pledged as security for the debt is released after the debt is paid, or the property is demanded
to be produced and sold so that the debt can be paid in the case of foreclosure.
In 1907, the appointment of class one and two counties was transferred from the Supreme Court to the
Governor. Since 1907, the Governor has appointed Public Trustees in the largest counties. In 2007,
Susie Velasquez was appointed by former Governor Ritter and re -appointed by Governor Hickenlooper
in 2011 and 2012. Appointed Trustees serve at the pleasure of the Governor.
THE OFFICE OF THE WELD COUNTY PUBLIC TRUSTEE
The Office of the Weld County Public Trustee is fully funded by fees collected for services provided. The
Office is not tax supported. Any funds received in excess of operating expenses are turned over to the
Weld County General Fund, after ensuring the maintenance of an operational reserve, as required by
law.
The Office manages the release of deeds of trust and foreclosure of deeds of trust on properties in Weld
County. This is done in accordance with guidelines and timelines set by Colorado law. The powers and
duties of the Office and procedures for the operation of the Office are defined in Title 38 of the
Colorado Revised Statutes.
Steve Moreno, Clerk and Recorder, Weld County, CO
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BUDGET
With the passage of HB 12-1329, each Public Trustee must adopt a budget pursuant to the requirement
of Part 1 or Article 1 of Title 29, C.R.S. and shall submit the budget to the Board of County
Commissioners for review. The adoption of the budget will create more transparency as the budget
becomes subject to the format and content of the Local Government Budget Law and new audit
requirements.
Each Trustee's office depends on fees for services that are set pursuant to C.R.S. 38-37-104. There are
no state or county general funds in the trustee budget and the law is specific that trustees charge only
those fees authorized by law. For example, each trustee is allowed to charge $15.00 for release of a
deed of trust. In 2011, the Weld County Public Trustee released 10,086 deeds of trust for a total of
$151,290 in income. Additional income was derived from foreclosures, cures, etc. until the total
revenue for 2011 reached $689,133, with expenditures and adjustments OF $449,972. The difference
between revenue and expenditures of $239,161 was paid to Weld County. The Public Trustee's budget
has been reflected in the county budget. It is, and has been, subject to annual audit by the county.
Beginning in 2013, the office is required to conduct its own independent audit.
REVENUES
The income (revenue) of the Public Trustee office is estimated from the volume of releases and
foreclosure actions anticipated for the coming year. As the economy rises and falls, activity within the
real estate sector, foreclosure market and interest rates help estimate and plan for the coming year.
In 2011, total revenue was $689,133 and projected revenue for 2012 is $644,965, The 2013 budget
shows an anticipated increase to $698,000. The income from foreclosures appears to have peaked in
2010. During the past year, and into FY 2012, foreclosures have stabilized. Through September 2012,
there is a decrease in the number of foreclosures filed over 2011. Releases have increased due to
historically low interest rates resulting in increased home sales and as more homeowners refinance their
homes. Through September 2012, the Weld County Public Trustee's office processed 9,392. For the
same time period 2011, 7,552 releases were processed showing an increase of 1,840 releases.
EXPENDITURES
Salaries and benefits comprise the largest portion of the Public Trustee expenses. Corresponding
benefits that vary in direct proportion to salary, some of which are statutory, such as FICA and Medicare,
are also included. The Public Trustee office follows state fiscal policy determinations in the granting of
annual increases. The expenditures are budgeted in anticipation of possible approval through the state
budgeting process as authorized by the Governor. Employees contribute toward medical insurance
benefits which accounts for a decrease in personnel expenses for 2013. An increase in expenditures
includes a server upgrade and moving expenses.
Steve Moreno, Clerk and Recorder, Weld County, CO
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ASSIGNED FUND BALANCE (Reserve Account)
The Public Trustee reserve account fluctuates from year to year. The maximum amount allowed in the
reserve account in any given year is always equal to the Public Trustee's previous year's actual operating
expense. The reserve account is typically adjusted up or down In the first quarter of each year. For FY
2011, the reserve account is set at $449,972.29.
After the reserve account Is adjusted, the remainder of all other money„ after expenses, is paid to the
county each quarter in the form of excess funds. These funds are held in the county's Public Trustee
Fund account until the end of the year when they are transferred to the county's general fund unless
any of those funds are needed for Public Trustee 4th quarter expenses.
BASIS OF BUDGETARY ACCOUNTING
The budget for the Public Trustee office is presented on the modified accrual basis which is consistent
with generally accepted accounting principles (GAAP). This means that revenues are recognized when
earned and expenditures are recognized when the liability is incurred.
FUTURE
It is expected that the foreclosures will begin to come down as the economy improves and the backlog
of foreclosures addressed. Releases of deeds of trust should stabilize or increase as the real estate
market improves and interest rates remain low. It is not anticipated that additional staff will be
required in 2013.
CONCLUSION
Public hearing will be held on Friday, December 21, 2012, at 9:00 a.m. at the office of the Public Trustee,
170123rd Avenue, Suite 250, Greeley, CO 80634. Questions or comments may also be submitted to
Susie Velasquez, Public Trustee, by calling (970) 352-4365 or email svelasauez@wcpto.com.
Weld County Public Trustee
Susie Velasquez
Public Trustee
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